1985 MarsdenLR 446
FEDERAL COURT (KUALA LUMPUR)
SEAH, J, SYED AGIL BARAKBAH, J & WAN HAMZAH, SCJJ
PEMUNGUT HASIL TANAH, KUANTAN
versus
ORIENTAL RUBBER & PALMOIL SDN BHD
CIVIL APPEAL NO 342 OF 1984
Decided On : 04-23-85
Dato Wan Mohamed bin Wan Muda (State Legal Adviser, Pahang) for the appellant.
Ghazi bin Ishak for the respondents.
Solicitors: Presgrave & Matthews.
(delivering the Judgment of the Court): This appeal is concerned with one question, namely, whether the learned judge was right to quash the award of Pemungut Hasil Tanah, Kuantan made on March 25, 1983 in connection with the compulsory acquisition by the State Authority of Pahang of 34 acres of lands in Lot 126 Mukim Ulu Kuantan and 15 acres of lands in Lot 3619 Mukim Kuala Kuantan.
The facts are not in dispute and may be stated briefly.
Oriental Rubber & Palmoil Sdn. Bhd. (hereinafter referred to as the respondent) are the registered owners of Lot 126 Mukim Ulu Kuantan and Lot 3619 Mukim Kuala Kuantan containing altogether an area of 770 acres made up of 87 acres and 682 acres respectively. Pursuant to section 8 of the Land Acquisition Act 1960 the State Authority of Pahang published a notification No. 486 in the Government Gazette on August 16, 1979 that approximately 34 acres of Lot 126 and 15 acres of Lot 3619 were needed for "Tapak Ranchangan Rumah Murah Panching/Sungai Charu". Inquiry for the hearing of claims for compensation of such lands was held on November 4, 1982 and it was completed on March 3, 1983. On March 25, 1983 the Pemungut Hasil Tanah, Kuantan (hereinafter referred to as the appellant) awarded to the respondent a total sum of $323,900.00 based on the market value of the land at the date of the Gazette publication, viz., August 16, 1979.
Apparently the respondent were not satisfied with this award because after having obtained leave of the High Court on June 16, 1984 they took out an originating Motion for an order of certiorari to remove to the Court for the purpose of being quashed the decision and award of the Pemungut Hasil Tanah, Kuantan made on March 25, 1983.
In quashing the award of the appellant the learned judge seemed to have relied on the Federal Court case of Pemungut Hasil Tanah, Pulau Pinang v Ong Gaik Kee [1983] 2 MLJ 35 . We think it is necessary to consider and examine the facts of that case.
It appears that on April 25, 1974 the Penang State Authority made a declaration under section 8 of the Land Acquisition Act 1960 vide Gazette Notification No. 103 that the whole of Lot 532 in Mukim 12, West District of Penang and six other parcels were needed for "public, industrial, residential, commercial and agricultural purposes to wit for land development and utilisation, resettlement of squatters, housing, institutional and recreational amenities in relation to integrated urban development and matters connected therewith".
Some seven years later, an inquiry was held pursuant to section 10 and an award of $1,117,418.50 was made on July 7, 1981 based on 60 cents per square foot.
Before this inquiry the State Authority published another notification No. 884 in the Gazette on December 20, 1979 declaring that an area of 9,369 sq. ft. together with some other lands in Gazette Notification No. 103 were needed for another public purpose, viz., Penang Island Traffic Dispersal — Package II. The inquiry was held four months later on April 24, 1980 and an award of $28,109.27 was given in respect of 9,369 sq. ft. calculated at $3.00 per sq. ft.
At the Pulau Pinang High Court the award of $1,117,418.50 was quashed by the learned Judicial Commissioner and this was upheld by the Federal Court. The judgment in Ong Gaik Kee case was delivered by Salleh Abas C.J. (Malaya) (as he then was) and this landmark decision appears to establish the following propositions of law:
Unreasonable long delay in holding an inquiry and in making an award can, in certain circumstances, cause grave or serious injustice to the landowner when land value and prices as well as costs are rising rapidly resulting in an award based on out-of-date prices or value which may not truly reflect adequate compensation. In others, such unexplained and unreasonable long delay may amount to an abuse of statutory power. In such cases, the court may, in a proper case, declare that the public authority should be held to be disabled from going