PUTRAJAYA: The Court of Appeal has ordered the parties in the dispute involving 106 hectares (263,272 acres) of land known as Duta Enclave to come forward regarding compensation, expected to run into billions, that should be paid to the aggrieved party.

A three-member panel chaired by Court of Appeal Judge Lee Swee Seng gave the direction on Thursday (Nov 7) after hearing extensive submissions from lawyers representing Semantan Estate (1952) Sdn Bhd and senior federal lawyers level representing the Federal Territory of Kuala Lumpur. Recorder.

Other members of the court included Court of Appeal judge Justice Azimah Omar and High Court judge Justice Wan Ahmad Farid Wan Salleh.

READ ALSO: High Court rules that ‘Duta Enclave’ must be returned to Semantan Estate

The panel asked the parties to consider whether the calculation of compensation should be based on the current market value or from the time the land was acquired, which was 1956.

When the issue of compensation was raised in open court, a man sitting in the public gallery, believed to be a representative of the liquidator of Semantan Estate, told the court that the current market price of the land was 12 thousand million ringgit.

“The government proposed RM5 billion (as compensation), but the current market value is RM12 billion,” he said.

The appeals court then set February 20 for the continuation of the appeal hearing.

Before adjourning the matter, Judge Lee told the parties that negotiations were the way forward.

“That’s the best thing, really,” he said.

READ ALSO: Court allows government’s request to suspend land transfer to Semantan estate

In Thursday’s proceedings, the panel heard submissions on a government appeal against the Kuala Lumpur High Court’s decision allowing a summons originating from Semantan Estate against the Registrar of Property.

On August 7, Justice Ahmad Shahrir Mohd Salleh ordered the government to transfer the land to Semantan Estate after allowing the company’s original summons.

The court also ordered the Land Registrar to comply with the required conditions within three months and ordered the government to pay RM50,000 in costs.

However, the same court also allowed a stay of execution of the property transfer on September 12, pending an appeal filed by the government.

Meanwhile, Semantan Estate was appealing a Kuala Lumpur High Court decision on October 27, 2021, which dismissed its judicial review in a bid to gain possession of the Duta Enclave lands.

READ ALSO: Government considers amending land acquisition law after Duta Enclave ruling

The company also appealed for execution of the transfer of ownership, as directed by the High Court.

Lawyer Datuk Cyrus Dass represented Semantan Estate, while senior federal lawyers Shamsul Bolhassan, Liew Horng Bin and Ahmad Hanir Hambaly represented the government.

In 2003, Semantan Estate filed a lawsuit against the government, alleging encroachment due to illegal acquisition of the land.

In 2009, judicial commissioner Zura Yahya ruled that Semantan Estate had retained its beneficial interest in the 106 hectares of land, declaring the government’s action a violation.

The government subsequently lodged an appeal, but it was dismissed on 18 May 2012. The Federal Court denied the government’s application for leave to appeal on 21 November 2012 and again dismissed a review of the previous decision in 2018.

In February 2017, Semantan Estate launched a lawsuit against the Registrar of Land of the Federal Territory to enforce the 2009 High Court ruling.