HIGH COURT MALAYA KUALA LUMPUR
SHELL MALAYSIA TRADING SDN BHD – Appellant
Versus
PENTADBIR TANAH WILAYAH PERSEKUTUAN – Respondent
Key Points: - Compensation for land acquisition must be based on the market value of the land, regardless of the type of interest (registered owner or lessee) (!) (!) . - The method of calculating compensation based on premium or rental paid is rejected; market value assessment methods must be used (!) (!) . - A lessee is entitled to compensation for loss of profits due to land acquisition, even after amendments to the Land Acquisition Act 1960, based on paragraph 2(e) of the First Schedule (!) (!) . - The court found that the applicant was entitled to additional compensation for loss of profits, calculated as RM1,027,000.00 (!) (!) . - Removal costs for decommissioning a fuel station, including underground tanks and pipes, are recoverable as reasonable expenses occasioned by the acquisition (!) . - The applicant was awarded RM75,378.53 for removal costs (!) . - The court allowed the applicant's claim for additional compensation, totaling RM1,401,439.53 (!) (!) . - The market value of the applicant's interest in the land and buildings was determined to be RM2,555,085.00 (!) (!) . - The respondent's initial award to the applicant was RM2,267,400.00 (!) (!) . - Valuer's fees are recoverable under section 14(5) of the Land Acquisition Act 1960 (!) (!) .
| Table of Content |
|---|
| 1. land acquisition facts and compensation awards. (Para 1 , 2 , 3 , 4 , 5) |
| 2. claims and parties' arguments on compensation. (Para 6 , 7 , 8 , 9) |
| 3. court's evaluation of arguments and statutory provisions. (Para 10 , 11 , 12 , 13 , 14 , 15) |
| 4. reasoning on market value assessment methods. (Para 16 , 17 , 18 , 19 , 20) |
| 5. court's critique of valuation methods used. (Para 21 , 22 , 23) |
| 6. valuation of buildings and overall interest. (Para 24 , 25 , 26) |
| 7. compensation for loss of business considerations. (Para 27 , 28 , 29 , 30 , 31 , 32 , 33) |
| 8. rulings on removal costs and fees. (Para 34 , 35 , 36) |
| 9. concluding orders on compensation. (Para 37 , 38) |
[1] This is a Land Reference pursuant to s 36 of the Land Acquisition Act 1960 ("the Act"). The facts of the matter is as follows. Syarikat Pemodalan Kebangsaan ("SPK") was the registered proprietor of a leasehold interest on a piece of Land measuring approximately 1,503.75 square meters (16,195 square feet) identified as Lot 137 (521), Seksyen 90, Bandar Kuala Lumpur, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur and held under Title No PN 23538 ("the Land"). The lease on the title was for a period of 60 years expirin
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