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2025 MarsdenLR 6
HIGH COURT MALAYA KUALA LUMPUR
MAH CHIN BOOI – Appellant
Versus
PENTADBIR TANAH WILAYAH PERSEKUTUAN KUALA LUMPUR (ENCLS 8 25 32 33 38 40 42 .... – Respondent
[Land Reference No: WA-15-1-01/2023]
Landowners are entitled to adequate compensation reflecting both personal property and proportional shares in common property upon compulsory acquisition, adhering to principles of equivalence and fairness as mandated by law.
Headnote:(A) Land Acquisition Act 1960 - Sections 3(1)(c), 8, 2, and 36(4) - Federal Constitution, Article 13 - Compensation for land acquisition - The primary issue was whether the applicant is entitled to compensation for both his flat and a share of the common property. The Land Administrator's award was based only on the flat value, neglecting the common property which comprises 84.5% of the land. The court found that the applicant should indeed be compensated for both the flat and common property, emphasizing the principle of equivalence in property rights and ‘adequate compensation’ as delineated in Article 13. The court decided that the compensation would be rounded off to RM235,135.26 with late payment charges applicable from the date of possession. (Paras 1-2, 16-17, 51-94, 150-152)
(B) Adequate Compensation - The principles governing compensation must ensure that landowners are made whole post-acquisition. (Paras 65-68)
| Table of Content |
|---|
| 1. compensation entitlement based on property value (Para 1 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 2. financial implications of compensation disputes (Para 3 , 4 , 5 , 6 , 16 , 17 , 19 , 20 , 21) |
| 3. principle of equivalence in compensation (Para 50 , 51 , 52 , 57 , 58 , 59 , 60 , 61 , 62) |
| 4. cost approach vs. market comparison in valuations (Para 63 , 64 , 70 , 72 , 78 , 86 , 90 , 91) |
| 5. final decision on compensation awarded (Para 136 , 140 , 145 , 150) |
[Objection Against Quantum Of Compensation Awarded By The Land Administrator]
Issues
[1] The main issue before me is whether the applicant in the Land Reference before me is entitled to compensation based solely on his flat or whether his compensation includes his share of the value of the common property when the entire land - where the block of flats sits- is acquired including the common property.
[2] This issue has a significant financial impact on the flat owners' compensation and the acquiring body as:
i. The Government assessor has valued the common property comprising the hall and the carpark lots at RM6,343,957.50. [See report dated 17 February 2025 at p 9]; and
ii. The Government assessor has also valued the common property comprising the unused land at RM12,967,850.00. [See report dated 17 February 2025 at p 10].
[3] As I see it, the real sting of the applicant's contention is that if the flat owners are only compensated for the value of their respective flats it would mean the acquirer/developer ultimately developing the Scheduled Land will obtain a windfall gain, a durian runtuh to use an apt Malay peribahasa, as the acquirer/developer would get for free the common property which constitutes 84.5% of the Scheduled Land.
[4] If the answer to the issue is affirmative, the secondary issue is how does one value the applicant's share of the common property.
[5] Counsel have informed me there are no reported cases on the above issues.
Written Submissions Filed
[6] For the hearing before me, parties filed the following Written Submissions:
i. Applicant's Written Submission dated 20 March 2024 [Enclosure 40/42]
ii. Respondent's Written Submission dated 19 March 2024 [Enclosure 38].
iii. Applicant's Supplementary Written Submission dated 17 May 2024 [Enclosure 47].
iv. Respondent's Written Submission in Reply dated 2 May 2024 [Enclosure 44].
v. Applicant's Written Submission dated 24 March 2025 [Enclosure 63].
vi. Respondent's Written Submission dated 7 April 2025 [Enclosure 64].
vii. Applicant's Written Submission in Reply dated 9 April 2025 [Enclosure 65].
viii. Applicant's Written Submission dated 22 July 2025 [Enclosure 76].
ix. Respondent's Written Submission dated 28 July 2025 [Enclosure 77].
Valuers' Reports Filed
[7] Parties also filed the following Valuers' Reports:
i. Applicant's Valuers Report [Enclosure 25].
ii. Respondent's Valuers Report [Enclosure 8].
iii. Applicant's Valuers Reply Report [Enclosure 32].
iv. Respondent's Valuers Reply Report [Enclosure 33].
v. Applicant's Valuers Additional Report [Enclosure 50].
vi. Respondent's Valuers Additional Report [Enclosure 53].
Material Facts
Scheduled Land
[8] A piece of land was acquired pursuant to s 3(1)(c) of the Land Acquisition Act 1960 ("LAA 1960"). This piece of land which is acquired under the LAA 1960 is called "Scheduled Land" pursuant to s 8 read with s 2 of the LAA 1960.
[9] On the Scheduled Land sits a block of low-costs walk-up flats comprising 80 units, open-air carpark bays and vacant land. This block of flats is called The Taman Rajawali Flats. A picture of the flats and vacant land can be seen in encl 8 Government Valuation Report dated 25 July 2022 at p 8.
[10] Hwa-Li Development Sdn Bhd is the registered owner of the Scheduled Land. However, the Sale and Purchase Agreements with Hwa-Li Development Sdn Bhd explicitly designate all areas of the Scheduled Land, excluding individual parcels owned by the parcel owners, as common property of the Scheduled Land.
[See definition of common property in art 1
