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2010 MarsdenLR 1827

FEDERAL COURT PUTRAJAYA
CAHAYA BARU DEVELOPMENT BHD – Appellant
Versus
LEMBAGA LEBUHRAYA MALAYSIA – Respondent
[Civil Appeal No: 01-12-2009 (J)]



Petitioner Advocates:RR Sethu,JD Goonting ,Respondent Advocate: Ramesh Sanghvi

Definition of 'person interested' under land acquisition law includes statutory bodies liable for compensation. Clarified interpretation mandates a liberal approach to ensure justice in compensation matters.

Headnote:(A) Land Acquisition Act 1960 - Sections 3(1)(a), 37(3), 11, and 22 - Appeal involving the definition of 'person interested' under land acquisition law - The defendant, a statutory body under Highway Authority Malaysia, challenged the compensation awarded for land acquired for public purpose - High Court ruled that defendant lacked standing, but Court of Appeal reversed, stating the defendant is a person interested under section 37 - Emphasis on liberal construction of 'person interested' in compensation matters. (Paras 3, 4, 10, 11, 12, 16)

Facts of the case:
The plaintiff owned land acquired for a highway project, receiving compensation challenged by the defendant, who sought to object to the amount awarded.

Findings of Court:
The Court of Appeal correctly identified the defendant’s interest and standing under the Act, clarifying the definition of a person interested.

Issues: The core issue was whether the defendant qualified as a 'person interested' to appeal against the compensation.

Ratio Decidendi: The court determined that the defendant’s role as a statutory agency meant it had a legitimate interest, justifying its objection to compensation awarded.

Result: Appeal dismissed; the plaintiff's appeal was rejected with costs assessed in favor of the defendant.

Table of Content
1. factual basis of land acquisition case. (Para 1 , 2)
2. dispute over status of 'person interested' under the act. (Para 3 , 4)
3. interpretation of statutory definitions and obligations. (Para 5 , 6 , 7 , 8)
4. implications of procedural compliance in land acquisition. (Para 10 , 11)
5. judicial interpretation of 'person interested' in acquisition cases. (Para 12 , 13 , 14 , 15)
Zulkefli Makinudin FCJ:

Introduction

[1] This is an appeal by the appellant against the decision of the Court of Appeal which allowed the respondent's appeal against the decision of the High Court at Johor Bahru. Before the High Court, the appellant was the plaintiff and the respondent was the defendant. We shall refer the parties as they were before the High Court.

Background Facts

[2] The relevant background facts leading to the present appeal by the plaintiff may be summarized as follows:-

(a) The plaintiff was the registered owner of the land held under PTD 171003 H.S.(M) 2996 Mukim Plentong, Daerah Johor Bahru, Negeri Johor ("the said land").

(b) The defendant is a corporate body incorporated under the Highway Authority Malaysia (Incorporation) Act 1980 ("HAMA 1980") and has a statutory obligation under s 11 of HAMA 1980 to supervise and execute the design, construction and maintenance of Highways as determined by the Government of Malaysia.

(c) On 18 November 2004, the Johor State Authority caused to be published in the Gazette under s 8 of the Land Acquisition Act 1960 ("the Act") a notice of intended acquisition (Form D under the Act) of a portion of the said land declaring that the said land was required for a public purpose.

(d) The public purpose of the intended acquisition in Form D was expressed to be for the construction of Senai-Pasir Gudang-Desaru Expressway ("the Expressway Project") and it was stated inter alia in Form D that it was made under s 3(1)(a) of the Act and acquired for the Ministry of Public Works, Malaysia.

(e) The Land Administrator Johor Bahru ("LA") served a notice in Form E under the Act on the plaintiff and the defendant giving notice for the enquiry proceedings to determine the compensation to be awarded.

(f) An enquiry under s 12 of the Act was held by the LA in respect of the acquisition. Upon the conclusion of the enquiry the LA awarded a sum of RM30,734,903 ("the award") to the plaintiff as compensation for the acquisition of 19.825 hectares of the said land.

(g) The LA served on the plaintiff and the defendant a Form G dated 20 April 2006 under s 14 of the Act on the compensation awarded to the plaintiff.

(h) The award was accepted by the plaintiff, but the amount of compensation under the award was objected to by the defendant.

(i) On 25 May 2006, the defendant filed an application that an objection in relation to the award be referred to the Court in the requisite Form N under the Act. The said Form N stated that the defendant was a person interested pursuant to s 37(3) of the Act.

(j) The LA thereafter referred the defendant's objection in Form N to the Johor Bahru High Court by way of Form O under s 38(5) of the Act.

(k) On 7 February 2007, the plaintiff applied by way of originating summons to the High Court for declarations, inter alia that the defendant had no locus and was not an "interested person" under s 37(3) read with s 3 of the Act and thus not entitled to lodge an objection in Form N with the LA against the award.

(l) The reference made by the LA pursuant to s 38(5) of the Act has been registered under Johor Bahru High Court Land Reference Proceedings No 15-40-2007 and it has been stayed pending the disposal of the plaintiff's present appeal before this Court.

(m) The learned Judicial Commissioner of the High Court granted the declarations sought by the plaintiff that the defendant had no standing to lodge any objection against the award made by the LA.

(n) The defendant appealed to the Court of Appeal against the decision of the learned Judicial Commissioner of the High Court in granting the declara

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