Court rejects Semantan Estate’s bid to stay compensation case

KUALA LUMPUR: The High Court here has dismissed Semantan Estate (1952) Sdn Bhd’s application to stay proceedings on the assessment of compensation payable by the government pending an appeal at the Court of Appeal.

Semantan filed its appeal on April 28 after the High Court, eight days earlier, rejected its request for an extension of time to obtain documents for the compensation hearing.

The documents sought included land acquisition and survey plans which the company said were necessary for the assessment under the Land Acquisition Act 1960.

It applied for a stay application at the High Court on May 18.

In his decision, Justice Roslan Mat Nor noted the affidavit filed by senior federal counsel Shamsul Bolhassan, who argued that a stay would prejudice the government since the Court of Appeal had ordered the calculation of interest at 6% from a certain date in 1956 until full compensation is paid.

The judge also considered Semantan’s affidavit, which stated that if the hearing proceeded, it would be unable to properly present its case on compensation due to insufficient reports and supporting documents.

He said the court could not arbitrarily grant or refuse a stay, but must be guided by settled legal principles.

“What is of greater importance are the legal principles applicable to the case in determining the application. Having considered all the relevant factors and grounds, the application for a stay of proceedings is dismissed,” he said.

The court made no order as to costs and maintained the hearing dates on Aug 14 and 21, and Sept 21.

Semantan’s legal battle began in 2003 when it sued the government, claiming that its 106-hectare parcel of land in Kuala Lumpur, known as the Duta Enclave, had been unlawfully acquired in 1956.

The disputed land, located along Jalan Tuanku Abdul Halim (formerly Jalan Duta), now houses several federal government buildings, including the National Hockey Stadium, National Archives, Kuala Lumpur shariah court, Inland Revenue Board, and Malaysian Anti-Corruption Commission Academy.

In 2009, the High Court ruled in Semantan’s favour, but subsequent appellate decisions held that the company was not entitled to the land title.

On June 24, 2025, the Court of Appeal ruled that Semantan was entitled to adequate compensation instead, to be assessed based on the land’s value in 1956 when the government took possession of it, and ordered an assessment of mesne profits.

On Nov 13 last year, the Federal Court dismissed Semantan’s application for leave to appeal, leaving the Court of Appeal’s decision in force and paving the way for the assessment proceedings now before the High Court.

Senior federal counsel Nurhafizza Azizan appeared for the government, while lawyers Ira Biswas, Janet Chai, and Alexie Ng represented Semantan.