Crime & Courts

Duta Enclave fiasco: Court grants stay on return of 106ha land to private company [WATCH]

KUALA LUMPUR: The government managed to get a stay on High Court ruling to return some 106.54ha of land near Jalan Duta to a private company.

High Court judge Datuk Ahmad Shahrir Mohd Salleh in his ruling said the stay would not prejudice the company pending an appeal filed by the government at the appellate court.

"To start off, this is not a run-of-the-mill case. It is one which is extraordinary given the nature of the ageing disputerun-of-the-millpent it has taken to finally and decisively come to this stage.

"As such, the considerations in determining whether there are special circumstances are never exhaustive, and in some cases serve as guidelines for judges to consider when exercising their judicial discretion."

He said the land commonly accepted as the total entree has silently witnessed the construction of several government complexes, sports facilities, as well as a few other landmarks.

"These buildings and facilities present to the economy, a considerable number of personnel and human resources, along with various types of public assets, not to mention valuable and dedicated historical records, in the case of the National Archives.

"If the state of the institution is not granted, and the claimant remains immediately at liberty to act on the judgment, there would be immense irreversible consequences," he added.

Ahmad Shahrir said the stay would not prejudice the plaintiff in any way if the enforcement of the judgment is delayed for the duration of the appeal process.

In August, another High Court had approved the liquidator's request to transfer the land dubbed as Duta Enclave in Mukim Batu to Semantan Estate (1952) Sdn Bhd.

The land is currently home to several government buildings, including the former National Hockey Stadium, the National Tennis Complex, the Institute of Islamic Understanding Malaysia, the Federal Territory Mosque, the National Archives, and the Inland Revenue Board Complex.

The government originally acquired the land in 1956 for RM1.32 million under the then-Land Acquisition Enactment with the intention of developing a diplomatic (Duta) enclave.

However, the land's original owner, Semantan Estate (1952) Sdn Bhd, —founded by Eng Lian Group and Ng Chin Siu & Sons Rubber Estates Sdn Bhd— disputed the acquisition.

Eng Lian Group is best known for developing Bangsar in Kuala Lumpur, including Bangsar Village, while Ng Chin Siu & Sons reportedly owned much of Desa Hartamas and Mont Kiara during their peak.

In 2009, the High Court ruled that the government had trespassed on the land, a decision upheld by the Court of Appeal and the Federal Court in 2012.

In Nov 2018, a Federal Court bench led by then-Court of Appeal president Tan Sri Ahmad Maarop dismissed the Malaysian government's application to review the 2012 decision, leaving the judgment intact.

Semantan Estate claimed it retained beneficial interest in the 106.72-ha land in Mukim Batu, alleging that the government had unlawfully taken possession of it.

The company argued that the government should pay mesne profits as damages for trespassing, with the amount to be determined by the court.

On Oct 25, 2022, Semantan Estate's liquidators initiated a claim against the Federal Government for wrongful possession of the land, seeking mesne profits.

Mesne profits refer to the rents and profits a trespasser could have earned during their occupation, which must be paid to the rightful owner as compensation for the trespass.

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