KUALA LUMPUR (Jan 20) — The High Court has confirmed that hearings scheduled for April 3 and April 10 will proceed as planned to determine the compensation payable to Semantan Estate (1952) Sdn Bhd over the government’s acquisition of the prime Duta enclave land in 1956.
High Court judge Roslan Mat Nor dismissed an application by Semantan Estate seeking additional time to prepare its valuation evidence, ruling that the existing schedule should be maintained. The matter concerns compensation for land previously ruled to have been improperly acquired, with the government earlier found to have trespassed due to inadequate compensation.
Semantan Estate, which is now under liquidation, had requested that the April hearing dates be postponed to September. Its counsel argued that more time was required to determine the appropriate valuation methodology and to prepare a valuation report reflecting land conditions as they stood nearly seven decades ago.
However, senior federal counsel Azza Azmi opposed the request, highlighting that the Court of Appeal had already delivered its ruling in June last year and had directed that the compensation issue be resolved within 90 days. She also pointed out that any delay would increase the interest payable by the government, as compensation accrues interest until settlement is completed.
The government indicated its readiness to proceed, including the filing of its valuation report in accordance with the court’s timeline. Azza further noted that several documents requested by Semantan Estate were publicly available and already within the company’s possession.
In response, Semantan Estate’s counsel argued that, unlike the government, the company does not have access to complete historical records. The valuation exercise requires reconstructing land values as at 1956, including access routes and infrastructure that no longer resemble present-day Jalan Duta. Locating survey plans and archival documents dating back more than 70 years, she said, presents significant challenges for a private entity.
After considering submissions from both sides, Judge Roslan acknowledged the court’s discretion to grant adjournments but concluded that delaying the proceedings would not serve the interests of justice. He noted the financial implications of rising interest costs and the long procedural history of the case.
As a result, the court upheld the existing schedule: valuation reports must be filed by Feb 11, case management is set for March 16, and hearings will proceed on April 3 and April 10.
The dispute stems from a landmark appellate ruling last year, which held that Semantan Estate is not entitled to reclaim ownership or title of the land, despite an earlier court finding that the government had trespassed due to improper compensation. Instead, the Court of Appeal ordered that compensation be recalculated based on 1956 land values, alongside a separate claim for mesne profits relating to loss of use.
The 263-acre Duta enclave today houses key government facilities, including the Inland Revenue Board headquarters, the National Archives, the National Hockey Stadium, and other federal institutions. The original compensation paid in 1956 amounted to RM1.32 million.
From a property and investment perspective, the case underscores the long-term legal and valuation complexities surrounding land acquisition in prime urban locations. Such precedents are closely watched by stakeholders involved in commercial property in KL, redevelopment of legacy sites, and landowners holding strategic parcels near growth corridors linked to industrial land in Selangor, industrial property in the Subang area, and employment hubs supporting office space in Bukit Jalil and factory zones in Puchong.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 21 Jan 26
Malaysia