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2021 MarsdenLR 1380

COURT OF APPEAL PUTRAJAYA
KHAZANAH JAYA SDN BHD – Appellant
Versus
HISCO (MALAYSIA) SDN BHD – Respondent
[Civil Appeal No: W-02(NCC)(W)-1557-08/2019]



Petitioner Advocates:Kamaruzaman M Arif,Sofiah Omar,Husna Abdul Halim ,Respondent Advocate: Malik Imtiaz Sarwar,Zamani Ibrahim,JR Tey,Khoo Suk Shyi

Legitimate expectations cannot override statutory planning law requirements; failure to comply eliminates claims for automatic approval.

Headnote:(A) Town and Country Planning Act 1976 – Section 21 – Judicial Review – In a case concerning planning permission for the proposed Berjaya City development, the court found that failure to comply with municipal planning directions negated any alleged expectation of approval for the relocation of the Selangor Turf Club Equestrian and Sports Centre – The respondents were required to submit amended plans after being instructed but did not do so – The High Court's decision that legitimate expectation necessitated approval was erroneous. (Paras 24, 41, 54)

Facts of the case: The respondents, seeking to relocate the Selangor Turf Club Equestrian and Sports Centre, failed to resubmit necessary planning amendments as directed, resulting in a judicial review application against the State Government and Town Planning Department.

Findings of Court: The respondents inadequately followed statutory processes, leading to a lack of legitimate expectation for planning approval. The High Court's ruling was ruled as having erred in law by circumventing the Town and Country Planning Act requirements.

Issues: Whether the respondents' failure to comply with planning requirements affects their expectation for approval of their project.

Ratio Decidendi: Legitimate expectations cannot override the requirements stipulated under planning law. The non-compliance with statutory conditions negated any claims to automatic approval.

Result: Appeal allowed; the High Court decision is set aside.

JUDGMENT

Che Mohd Ruzima Ghazali JCA:

Introduction

[1] Aggrieved with the decision of the Shah Alam High Court dated 9 November 2017 in allowing the Berjaya Land Berhad's (first applicant/first respondent), Berjaya City Sdn Bhd's (second applicant/second respondent) and Selat Makmur Sdn Bhd's (third applicant/third respondent) judicial review application which essentially sought planning approval for the proposed Berjaya City development and the relocation of the Selangor Turf Club Equestrian and Sports Centre (STC ESC), the State Government of Selangor (first respondent/first appellant) and the Director of the Town and Country Planning Department of the State of Selangor (seventh respondent/second appellant) filed this appeal.

[2] For ease of reference, parties will be referred to as appellants and respondents. Individually, they will be referred to according to the following acronym: Berjaya Land Berhad as 'BLB', Berjaya City Sdn Bhd as 'BCSB', Selat Makmur Sdn Bhd as 'sMSB', the State Government of Selangor as 'sGS' and, Director of the Town and Country Planning Department as 'Director of TCPD'.

Brief Background Facts

[3] Selangor Turf Club (STC) is a horse racing club located at Jalan Sungai Besi, Kuala Lumpur and hosts about 30 race days a year, which is a racing season that begins from January to December. Being a horse racing club, STC's activities involves betting and gambling activities.

[4] STC decided to relocate its premises situated on HS (D) 61790 No: PT 2872, Mukim Petaling Jaya, Wilayah Persekutuan, HS (D) 89381 No: P.T.22 Sungei Besi, Mukim Petaling, Selangor, and HS (D) 50718 No: PT 12812, Mukim Petaling, Selangor (the Sungai Besi Lands) to 21 lots of land in Mukim Sungai Tinggi, Daerah Ulu Selangor, Selangor and 16 lots of land in Mukim Batang Berjuntai, Daerah Kuala Selangor, Selangor owned by BCSB (the Bukit Tagar Lands).

[5] For that purpose, STC entered into a sale and purchase agreement dated 19 July 2004 (the SPA) with SMSB for the sale of the Sungai Besi Lands. As part of the dealings, SMSB covenanted to relocate STC ESC to the Bukit Tagar Lands.

[6] SMSB is a wholly owned company by BLB and is the beneficial owner of the Bukit Tagar Lands. SMSB was appointed to implement the relocation of the STC ESC. SMSB then appointed BCSB as the turnkey contractor. BCSB had to submit applications for the necessary approvals from the relevant authorities.

[7] The relocation of the STC ESC at the Bukit Tagar Lands by SMSB involves a development of land comprising a racecourse, grandstand and a members' clubhouse on 300 acres of land, equestrian sports centre on 100 acres of land with an additional 50 acres reserved for ancillary structures and 300 acres for residential building of all types. The proposed relocation of the STC ESC will form part of a larger development termed Berjaya City development which comprises of 16,587.23 acres at the Bukit Tagar Lands. The Berjaya City development comprises of mixed development of industrial lots and residential areas.

[8] On 25 May 2005, BCSB through its agent, AJM Planning and Urban Design Group Sdn Bhd (AJM) had submitted to the Majlis Daerah Hulu Selangor "Permohonan Kebenaran Merancang bagi Tujuan Tukar Syarat Tanah dan Pecah Sempadan Secara Serentak". On 28 July 2005, AJM on behalf of BCSB also submitted "Cadangan Pindaan Pelan zoning guna tanah" to the Director of TCPD for its approval for Berjaya City development including the proposed development of the STC ESC.

[9] A meeting of the State Planning Committee (SPC) Bil. 2/2005 on 29 September 2005 had agreed to table the Berjaya City development including the proposed relocation of the STC ESC at the National Physical Planning Council (NPPC) for advice and consent. The concept plan proposal for the Berjaya City development which included the proposed relocation of the STC ESC was tabled at NPPC on 8 August 2006, where approval was given but subject to certain conditions, inter alia, horse racing activities are strictly not allowe

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