KUALA LUMPUR (Aug 14): The Malaysian government is said to have made an offer to settle the Semantan Estate (1952) Sdn Bhd assessment proceedings according to the 1956 market rate land acquisition of the prime “Duta Enclave” land.

This was disclosed to High Court judge Roslan Mat Nor before proceedings on Friday, where senior federal counsel Nurhafizza Azizan, representing the government, and senior counsel Ira Biswas, along with Janet Chai Pei Ying and Alexie Ng Ying Ching of Messrs Chooi & Co for Semantan, sought the adjournment.

Nurhafizza said the government would like to settle this case as soon as possible.

“The Attorney General’s Chambers received the suggestion from the Finance Ministry yesterday (Thursday). As all settlements must first gain the approval (or go-ahead) from the ministry, an adjournment should be considered.

““I am sure they (Semantan’s lawyers) will need some time to confer with their client before they can decide as to whether the matter can be settled amicably,” she said.

Following this, both Nurhafizza and Ira applied for the adjournment of Friday’s hearing.

The prime 263.272-acre land currently houses government buildings that include the Inland Revenue Board’s headquarters, as well as the National Examinations Syndicate, KL Shariah Court Complex, the Federal Territory Mosque, the National Archives, and the Tun Razak Hockey Stadium.

Other structures are the National Tennis Complex, Integrity Institute of Malaysia, Malaysian Anti-Corruption Academy, Institute of Islamic Understanding Malaysia, the Duta bus terminal, and pockets of land that have yet to be developed.

On the land is also the main road and overhead bypass from Jalan Duta (now known as Jalan Tuanku Abdul Halim) leading to Segambut.

It was named as “Duta” (Malay for ambassador), following it being originally envisaged to be an area housing embassies and foreign missions.

Despite Semantan Estate and the government applying for the postponement to Friday’s proceedings for the company to evaluate the offer, Roslan directed parties to continue with the hearing, as the case has been long-standing.

Roslan reminded parties that the granting of an adjournment is at the court’s discretion, and as the government’s offer and adjournment is made last minute, the court was minded that it had to uphold justice at all times.

He said the court has the discretion to grant an adjournment three times, based on the Rules of Court 2012, but in this case, there had been discovery and stay applications filed before today’s hearing which the court had previously dismissed.

“As the Court of Appeal had instructed the hearing of the 1956 compensation be expedited following its decision in June, last year, and the plaintiff and defendant applied for adjournment, this court is minded that the matter should be heard regardless. The application for adjournment is dismissed,” Roslan said.

Prior to this, the Court of Appeal had last year dismissed Semantan Estate’s application to get the land titles to the 263.272-acre land, which had been awarded by the High Court’s August 2024 ruling, as it was not possible due to the government infrastructure on the existing land.

Hence, the COA bench, led by judge Datuk Lee Swee Seng (who has since been elevated to the Federal Court), had unanimously ruled that the High Court should decide on the adequate market compensation of the land according to the 1956 rate. At the same time, another court at the High Court had started hearing the company’s application for mesne profit.

Both hearings are conducted following an earlier decision by the High Court in 2009, that ruled that the government had trespassed on the company’s land since 1956, as its acquisition of the land was found by the court to be illegal.

The 2009 court decision was upheld by the Court of Appeal and the Federal Court.

At the time, the government had paid RM1.32 million compensation in its acquisition of the land in 1956, which was deemed inadequate, resulting in this hearing before Roslan as directed by the appellate court.

A separate hearing for mesne profit is before High Court judge Datuk Ahmad Shahrir Mohd Salleh (now a Court of Appeal judge), which is now pending a verdict.

However, the same parties are still in mediation before the delivery of the decision.

Mesne profit is a sum expected to be paid by someone or the government for wrongfully occupying the property of the rightful owner.

Semantan Estate, which is undergoing voluntary liquidation, was founded by the Eng Lian Group and Ng Chin Siu & Sons Rubber Estates Sdn Bhd — the vehicles of two prominent land-owning families.

Eng Lian Group is best known for developing Bangsar in Kuala Lumpur since the 1970s, including its main commercial area, Bangsar Village. Ng Chin Siu & Sons Rubber Estates has been less active in recent years, though it once owned much of Desa Sri Hartamas and Mont Kiara.

Currently, Semantan Estate valuer Foo Gee Jen, who is an adviser of CBRE/WTW, is testifying before the High Court over his findings over the 1956 market rate.

The hearing before Roslan continues on Aug 21 with Foo’s cross-examination.

Read also:
Semantan valuer: Govt valuation for 1956 compensation is flawed
Govt wins Duta land dispute, retains title but ordered to compensate
Semantan Estate loses appeal for Duta Enclave land after apex court dismisses leave
Semantan Estate: Court still wants parties to consider mediation, as decision on trespass compensation looms
Semantan Estate’s discovery application dismissed, hearing for compensation also deferred