FEDERAL COURT PUTRAJAYA
SEMENYIH JAYA SDN BHD – Appellant
Versus
PENTADBIR TANAH DAERAH HULU LANGAT & ANOTHER CASE – Respondent
[Civil Appeal Nos: 01(f)-47-11-2013 (B) & 06-3-05-2013 (B)]
In this case, judicial independence is a central constitutional principle that is critically examined in relation to the powers conferred on the courts and the role of judicial officers. The court emphasizes that judicial power must be exercised solely by judges who are appointed to hold judicial office, and not by non-judicial persons or lay assessors (!) .
The independence of the judiciary is seen as fundamental to maintaining public confidence in the judicial system and ensuring that disputes, particularly those involving property rights and compensation, are resolved impartially and according to law (!) .
The case highlights that the judicial power is inherently linked to the authority and integrity of judges acting within their proper judicial capacity. Any legislative or procedural provisions that attempt to transfer or usurp this power—such as empowering assessors to decide on the quantum of compensation—are viewed as infringing upon judicial independence (!) . Such provisions threaten to undermine the separation of powers, a core constitutional doctrine that safeguards the judiciary from undue influence by the executive or legislative branches (!) .
The court underscores that the exercise of judicial power must be carried out in accordance with the judicial process, which includes the impartial assessment of evidence, application of legal principles, and the rendering of decisions by qualified judges (!) . When legislative amendments or procedural rules diminish the role of judges in favor of lay assessors or other non-judicial entities in matters that require judicial discretion and decision-making, it compromises the independence and integrity of the judiciary (!) .
Furthermore, the decision stresses that the judiciary's independence is essential for upholding constitutional protections, such as the right to fair compensation and the right to appeal (!) . Any encroachment upon judicial functions or attempts to limit judicial review and decision-making authority are viewed as threats to the constitutional fabric that guarantees an independent judiciary (!) .
Overall, the case reaffirms that judicial independence is a non-negotiable feature of the constitutional framework, and any legislative or procedural measures that undermine the judiciary's exclusive authority to exercise judicial power are constitutionally invalid (!) . The judiciary must retain the authority to decide disputes impartially, free from external influence, thereby preserving the rule of law and the constitutional order (!) .
| Table of Content |
|---|
| 1. constitutionality of land acquisition compensation mechanisms. (Para 1 , 2 , 4 , 5) |
| 2. constitutional challenges to land acquisition provisions. (Para 6) |
| 3. compensation assessment issues and judicial power. (Para 10 , 14 , 18) |
| 4. judicial power and the role of assessors in compensation. (Para 22 , 92 , 173 , 175) |
| 5. assessment of compensation must reflect potential business loss. (Para 190 , 192 , 213 , 214) |
| 6. outcome based on constitutional interpretation. (Para 224) |
Introduction
[1] The appellant in Appeal No: 01(f)-47-11-2013(B) ("the Appeal") and the applicants in Reference no 06-3-05-2013(B) ("the Reference") before us seek to challenge the constitutional vires of the Land Acquisition Act, 1960 ("the Act"), made by way of the Land Acquisition (Amendment) Act 1997 ("Act A999"). Act A999 came into force on 1 March 1998.
[2] The appellant in this appeal and the applicants in the Reference filed objections against the Land Administrator's award disputing the amount of compensation awarded arising out of the acquisition of part of their land. Dissatisfied with the decisions of the High Court, they appealed to the Court of Appeal.
[3] The appellant in the appeal was granted leave by the order of this Court dated 7 October 2013 to appeal against the decision of the Court of Appeal dated 26 April 2013. The Reference before us is a reference of constitutional questions by the Court of Appeal. By a Consent Order dated 17 April 2013, the applicants' appeal in the Court of Appeal is stayed pending determination of the constitutional questions referred to this Court. For the Reference, it was agreed, as reflected in the order of this Court dated 1 December 2013, that the decision in the Appeal will bind the parties in the Reference.
[4] The Appeal and the Reference focus on the changes made to the Act by Act A999, in particular s 40D which empowers assessors sitting with the judge in the High Court to make the final determination on the amount of reasonable compensation for the acquisition of land under the Act; and subsection 40D(3) and the provision to subsection 49(1) which preclude appeals against the High Court decision on the amount of compensation.
[5] In addition to those issues, the appellant in the appeal also poses to this Court questions on the effect of non-compliance with s 40C and the adequacy of compensation under art 13 of the Federal Constitution in relation to its claim for loss of profit as a result of business extinguishment.
[6] The question of law framed before this Court for the Appeal are as follows:
(1) Whether there is a right of appeal to the Court of Appeal against a decision of the High Court (consisting of a judge and two assessors) involving compensation for land acquisition on a question of law in the light of s 40D(3) and the proviso to s 49 of the Land Acquisition Act, 1960 ("the Act") as amended by Act A999?;
(2) Whether the amendment to the Act by amendment Act A999 which came into effect on 1 March 1998 would apply to land acquisitions instituted prior to the amendment with the effect of changing radically the hearing process as regards the role of the assessors and further limiting a vested right of appeal?
(3) Whether the amended s 40D is constitutionally valid in providing for a conclusive determination by the assessors (as opposed to the Judge) as to the amount of compensation in the face of art 121 of the Federal Constitution that contemplates that the judicial power of the courts should be exercised by judges only?
(4) Whether s 40D(3) could validly apply to limit appeals if the decision-making process provided for in s 40D(3) is constitutionally invalid?
(5) Whether the limitation of appeals in s 40D(3) or the proviso to s 49 could apply in the absence of strict compliance with the new procedure envisaged in s 40C and s 40D?
(6) Whether the safeguard of "adequate compensation" in art 13(2) of the Federal Constitution is met where the Land Administrator refus
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