PUTRAJAYA: The Court of Appeal today directed all parties in the Duta Enclave land dispute to determine the value of the 106-hectare land, including the compensation that may be owed to Semantan Estate (1952) Sdn Bhd.
A three-judge panel, led by Datuk Lee Swee Seng, issued the direction after the value of the disputed land became a focal point during proceedings, with conflicting valuations and compensation figures brought to the court's attention.
Lee, who sat together with Datuk Azimah Omar and High Court judge Datuk Wan Ahmad Farid Wan Salleh, posed this question when senior federal counsel Liew Horng Bin submitted his argument.
"What is the current market value estimate?" he asked Liew, who struggled to provide an answer.
Senior lawyer Datuk Dr Cyrus Das, representing the company, then stood up to assist, noting that the government had previously estimated the land's value at around RM5 billion during a parliamentary session.
However, a member of the public, believed to represent the company's liquidator, interjected, stating that the land's current value is RM12 billion.
"The (government) proposed (compensation of) RM5 billion, but the current value is RM12 billion," he shouted from the public gallery.
The court then took a 15-minute recess before resuming and directed all parties to submit arguments on three legal questions on Feb 20 next year.
The court said parties must argue whether Section 29(1)(b) of the Government Proceedings Act 1956 and Section 8 of the Specific Relief Act 1950 are unconstitutional and conflict with Article 13 (Right to Property) of the Federal Constitution, among other issues.
Under Section 29(1)(b), in any civil case against the government, the court can make any decision within its authority, except it cannot order the government to return land or property taken from a plaintiff.
However, the court can declare that the plaintiff has rights to the land or property.
Section 8, meanwhile, states that a person whose property was taken without consent may recover their assets, but this action cannot be filed against any government in Malaysia.
Article 13, however, ensures that no one can be deprived of their property except according to the law and with fair compensation.
On Oct 30, Prime Minister Datuk Seri Anwar Ibrahim, responding to a question from Kota Baru member of parliament Datuk Seri Takiyuddin Hassan in Parliament, said that the government disagrees with providing a substantial compensation to the company.
He also said that the previous government's RM5 billion compensation offer to resolve the Duta Enclave issue was unreasonable, excessive, and too high.
He added that the treasury secretary-general had held meetings with the company in an effort to find a resolution, which included a proposal to allocate part of the vacant land to the company for development on the condition that they collaborate with a government-linked company.
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.
The land currently contains 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.
In 2009, the High Court ruled that the acquisition of the land owned by Semantan Estates was not lawfully executed and that the government had been a trespasser of the land.
The decision was subsequently upheld by the Court of Appeal on May 18, 2012 and on Nov 21, the same year, the Federal Court refused the government leave to appeal against the decision effectively making the High Court ruling final and binding.