KUALA LUMPUR (May 22): The High Court has encouraged the federal government and Semantan Estate (1952) Sdn Bhd to explore mediation before a final decision is delivered on the company’s mesne profit claim involving the prime “Duta enclave” land in Kuala Lumpur.
High Court judge Ahmad Shahrir Mohd Salleh made the suggestion after hearing clarifications related to the compensation claims sought by Semantan Estate over the government’s occupation of the 263.272-acre land since its acquisition in December 1956.
The judge fixed June 24 for case management to determine a suitable date for the court’s final decision, which is expected to be delivered online via Zoom. He also indicated that parties may still opt for court-led mediation before the decision date if both sides agree.
The dispute centres around mesne profits, a legal term referring to compensation payable for wrongful occupation or trespass. In this case, Semantan Estate is seeking compensation for the government’s continued occupation and use of the land over several decades.
The amount claimed remains a major point of contention. Semantan Estate is seeking between RM3.1 billion and RM13.1 billion based on valuations prepared by its privately appointed valuers, while the federal government estimates the compensation at approximately RM290 million using valuations from the government’s Valuation and Property Services Department covering the period from 1956 to 2021.
The strategically located Duta enclave currently accommodates numerous government facilities, including the Inland Revenue Board headquarters, the National Archives of Malaysia, the Malaysian Examinations Syndicate, the National Hockey Stadium, the Malaysian Anti-Corruption Commission Academy and the Institute of Integrity, alongside major public infrastructure such as Jalan Duta and its interchange.
Semantan Estate was represented by lawyers Ira Biswas, Janet Chai Pei Ying and Alexie Ng Ying Ching from Messrs Chooi & Co, while the government’s legal team was led by Senior Federal Counsel Mohamad Al Saifi Hashim.
Separately, Semantan Estate has also filed an application to stay High Court proceedings involving compensation calculations based on 1956 land valuations. The company is appealing against the dismissal of its discovery applications, where it sought acquisition plans and survey documents related to the land acquisition process.
The discovery applications were dismissed by High Court judge Roslan Mat Noor on April 1, prompting Semantan Estate to file an appeal. The company argued that the requested documents could provide further evidence regarding the land acquisition and accessibility details. Government representatives, however, stated that the records could not be located and may have been held by the former Selangor Land and Mines Department before Kuala Lumpur became a Federal Territory in 1974.
The legal battle over the Duta enclave has stretched for more than a decade. In 2009, the High Court ruled that the government’s acquisition of the land was unlawful and amounted to trespass. The decision was subsequently upheld by both the Court of Appeal and the Federal Court in 2012, while the government’s review application was dismissed in 2019.
Since then, Semantan Estate has pursued several legal avenues, including efforts to regain physical possession of the land, restore the land titles, and claim mesne profits for decades of occupation.
Although attempts to physically reclaim the land were dismissed in 2022, the High Court later ordered the land titles to be reverted to Semantan Estate in August 2024. However, the Court of Appeal of Malaysia overturned that decision in June 2025, ruling that the government would retain ownership and possession of the land but would be required to compensate the company based on 1956 land values.
The appellate court also directed that the exact compensation amount be determined by the High Court, while the separate mesne profit proceedings have continued since 2023 before Ahmad Shahrir.
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