Raus Sharif JCA:

[1] I have had the advantage of reading my learned brother Abdul Malik Ishaks judgment and I am in agreement with him in allowing this appeal. However, I would like to express my own reasons for doing so.

Background Facts

[2] Kerajaan Negeri Perlis ("2nd defendant") decided to build a dam at Timah Tasoh, Perlis. It was also decided that the villagers displaced by the dam project were to be resettled in an area known as Lubuk Sireh.

[3] The resettlement of the villagers was coordinated by Jawatankuasa Rayuan Penempatan Semula Empangan Timah Tasoh ("Timah Tasoh Committee"). The Timah Tasoh Committee was headed by a member of the "State Executive Council" ("1st defendant") for the "Land, Forest and Environment Portfolio". The resettlement started in April 1987 and continued in stages as follows:-

[4] The plaintiffs were amongst the villagers who were resettled at Lubuk Sireh. In agreeing to do so, they received cash compensation and/or payment from the 2nd defendant for their loss of land, houses, etc. For those who owned lands, the 2nd defendant paid them compensation pursuant to the Land Acquisition Act 1960. The plaintiffs also received from the 2nd defendant a