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2025 MarsdenLR 194
HIGH COURT MALAYA SHAH ALAM
TANJUNG BALAI ENTERPRISE SDN BHD – Appellant
Versus
PENTADBIR TANAH DAERAH KUALA LANGAT & OTHER CASES – Respondent
[Land Reference No: BA-15-10-05/2023 BA-15-11-05/2023 & BA-15-12-05/2023]
The adequacy of compensation in land acquisition must reflect actual market value and conform to statutory provisions; mere assertions of loss without evidence are insufficient for claims of severance or injurious affection.
Headnote:(A) Land Acquisition Act 1960 - Articles 13 of the Federal Constitution - Compulsory acquisition for public purpose - The court determined market value for the acquired land according to the comparison method - Applicant's valuation rejected due to improper comparables and the land's suitability for development retained. (Paras 29, 30, 31, 33)
(B) Burden of Proof - In land acquisition cases, the applicant must prove that the compensation awarded is inadequate to trigger the obligation for the Land Administrator to present its case. (Paras 21, 32)
(C) Severance and Injurious Affection - Claims for severance and injurious affection must demonstrate actual adverse impacts to the remaining land which was not acquired; mere assertions are insufficient. (Paras 36, 39, 40)
Facts of the case:
This land reference arose from the compulsory acquisition of land for a water treatment plant project, with arguments made regarding the adequacy of compensation and the impact of the acquisition. The applicants contended that the award did not adequately account for the loss in value and development potential. (Paras 1-10)
Findings of Court:
Market value determined at RM1,300.00 per square meter, with compensation increased by RM149,200.00, while other claims for damages and associated costs were dismissed. The remaining land was deemed suitable for economic development. (Paras 46)
Issues: The court addressed: the adequacy of the compensation awarded, the impact of the acquisition on adjacent lots, the validity of claimed damages due to severance, and the validity of cost claims submitted by the applicants. (Paras 1.1 a)-(i)
Ratio Decidendi: The decision emphasized the need to strictly adhere to the LAA 1960’s provisions, affirming that compensation must reflect market dynamics and that claims must be substantiated with evidence showing actual loss due to acquisition. (Paras 13, 14, 26)
Result: The market value was revised and other claims were refused. Appeals for severance and injurious affection were not upheld. (Paras 46)
| Table of Content |
|---|
| 1. introduction to land acquisition cases. (Para 1 , 2) |
| 2. factual background of the scheduled land. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 3. legal principles governing land acquisition. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 4. analysis of market value of the land. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28) |
| 5. severance and injurious affection claims. (Para 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41) |
| 6. assessment of incidental costs. (Para 43 , 44) |
| 7. conclusion on the court's decision and orders. (Para 46) |
Introduction
[1] This is a land reference matter arising from the compulsory land acquisition under para 3(1)(a) of the Land Acquisition Act 1960 (" LAA 1960") for the purposes of Laluan Paip Air Mentah Loji Rawatan Air Bagi Projek Pembangunan Air Rasau, Daerah Kuala Langat, Selangor ("the Project").
[2] The Applicants for all the three cases each filed their respective objection over the award of the Land Administrator on the partial acquisition of the scheduled land held under Individual Title No HSD 34098, PT 35150, Mukim Tanjung Dua Belas, in the District of Kuala Langat ("The Scheduled Land"). Tanjung Balai Enterprise Sdn Bhd of BA-15-10-05/2023 is the registered proprietor of the Scheduled Land. ION Health Manufacturing (M) Sdn Bhd of BA-15-12-05/2023 is the registered proprietor of HSD 34095, PT 35147, Mukim Tanjong Duabelas which is located adjacent to the scheduled land. PT 35147 is said to have been affected in consequence of the scheduled land being partially acquired because they are both purportedly part of one Planning Permission which had been granted by the Majlis Daerah Kuala Langat. Alpha Variamas, the applicant of case BA-15-11-05/2023 too was said to have been affected by the acquisition of the scheduled land, for the lands owned by it which are adjacent to the scheduled land too was intended for mixed development.
[3] These three land references were heard together.
Factual Background
[4] The facts as gleaned from court documents are as follows. The land in which this land reference filed is Lot PT 35150, HSD 34098, Mukim Tanjong Duabelas, Daerah Kuala Langat, Negeri Selangor ("the Scheduled Land").
[5] The land acquisition of the Scheduled Land was gazetted under s 8 of the LAA 1960 through the Warta Kerajaan Negeri Selangor Bilangan No 3316 dated 11 August 2022.
[6] The Scheduled Land's category of land use is building and the tenure is leasehold for 99 years. The leasehold ends on 16 December 2111.
[7] The Scheduled Land is an empty piece of land which had been approved for development of a petrol station with the adjacent land, Lot 35147 owned by ION Health Manufacturing (M) Sdn Bhd ION Health Manufacturing (M) Sdn Bhd has the same Directors as Tanjung Balai Enterprise Sdn Bhd.
[8] Approval to develop the petrol station was given by Majlis Daerah Kuala Langat vide MDKL/JPP/PS/15/170(B)/JLD 2 dated 24 December 2009.
[9] An enquiry was conducted whereby the Land Administrator awarded a total of RM1,790,400.00 as compensation for the compulsory acquisition of the Scheduled Land. Subsequently, the Notice of Award and Offer of Compensation in Form H under s 16 of the LAA 1960 for the Acquired Land was issued on 27 December 2022 for the amount of RM1,790,400.00.
[10] Dissatisfied with the award by the Land Administrator, the applicants, objected to the Land Administrator's award for being inadequate and filed Form N dated 16 December 2022.
The Legal Principles
[11] Article 13 of the Federal Constitution guarantees a person to a right to property which reads:
"(1) No person shall be deprived of property save in accordance with law.
(2) No law shall provide for the compulsory acquisition or use of property without adequate compensation."
[12] The law and proceedings relating to land acquisition are governed by the LAA . This is a special Act which provisions must be strictly adhered to.
[13] The court of Appeal in Sistem Lingkaran Lebuhraya Kajang Sdn Bhd v. Inch Kennet
