1. ) LEMBAGA LEBUHRAYA MALAYSIA 2. ) MMC TEPAT TEKNIK SDN BHD 1. ) 1. PENTADBIR TANAH DAERAH KLANG 2. MMC TEPAT TEKNIK SDN BHD 2. ) 1. PENTADBIR TANAH DAERAH KLANG 2. LEMBAGA LEBUHRAYA MALAYSIA

1. ) LEMBAGA LEBUHRAYA MALAYSIA 2. ) MMC TEPAT TEKNIK SDN BHD 1. ) 1. PENTADBIR TANAH DAERAH KLANG 2. MMC TEPAT TEKNIK SDN BHD 2. ) 1. PENTADBIR TANAH DAERAH KLANG 2. LEMBAGA LEBUHRAYA MALAYSIA

The Court of Appeal held that the High Court erred by conflating damages for existing contracts with contracts under negotiation; the Land Administrator's award of RM5,864,609.00 for compensation for existing contracts (business disruption) on Lot 1605 was justified and is reinstated. The Court dismissed LLM's appeal, allowed MMC Tepat Teknik's appeal in part, and otherwise affirmed the High Court's findings on valuation and entitlement related to the lots as appropriate to zoning and legality issues.

Citation
B-01(A)-167-04/2019 Didengar bersama B-01(A)-180-04/2019 (Mahkamah Rayuan)
Parties
Perayu: Lembaga Lebuhraya Malaysia; Responden: Pentadbir Tanah Daerah Klang; Perayu: MMC Tepat Teknik Sdn Bhd
Court
A
Jurisdiction
Malaysia
Judgment Date
11 February 2020
Case Number
B-01(A)-167-04/2019 Didengar bersama B-01(A)-180-04/2019 (Mahkamah Rayuan)
Procedural Posture
Land Acquisition / Land Reference (compulsory Acquisition) / Court of Appeal Judgment (appeals Heard and Decided)
Outcome
MMC Tepat Teknik appeal allowed in part; Lembaga Lebuhraya Malaysia appeal dismissed; High Court decision otherwise affirmed; Land Administrator award for existing contracts reinstated.
Legal Topics
Compensation for Compulsory Acquisition, Validity of Buildings and Zoning Compliance, Business Disruption Damages, Legalisation Scheme and Legitimate Expectation, Distinction Between Ongoing Contracts and Contracts Under Negotiation
Source Language
Malay/English
Land Law Compulsory Acquisition Planning Law Administrative Law Valuation Law Compensation for Compulsory Acquisition Validity of Buildings and Zoning Compliance Business Disruption Damages +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 5 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Lembaga Lebuhraya Malaysia

Perayu

Pentadbir Tanah Daerah Klang

Responden

MMC Tepat Teknik Sdn Bhd

Perayu

Procedural Posture

Land Acquisition / Land Reference (compulsory Acquisition) / Court of Appeal Judgment (appeals Heard and Decided)

Legal Issues

  1. 1 Whether buildings on Lots 1604, 1605 and 1608 are entitled to compensation given alleged illegality and zoning restrictions
  2. 2 Whether zoning under the local plan overrides category of land use or express conditions on title for the purpose of compensation
  3. 3 Whether compensation for business disruption should differentiate between existing contracts being performed and contracts under negotiation

Ratio Decidendi

The Court of Appeal held that the High Court erred by conflating damages for existing contracts with contracts under negotiation; the Land Administrator's award of RM5,864,609.00 for compensation for existing contracts (business disruption) on Lot 1605 was justified and is reinstated. The Court dismissed LLM's appeal, allowed MMC Tepat Teknik's appeal in part, and otherwise affirmed the High Court's findings on valuation and entitlement related to the lots as appropriate to zoning and legality issues.

Court Disposition

MMC Tepat Teknik appeal allowed in part; Lembaga Lebuhraya Malaysia appeal dismissed; High Court decision otherwise affirmed; Land Administrator award for existing contracts reinstated.

Orders

  • Appeal B-01(A)-180-04/2019 allowed in part
  • Appeal B-01(A)-167-04/2019 dismissed