LAND ACQUISITION

ACT 1960
 INTRODUCTION
♦Land acquisition is a process where
alienated land is compulsorily
acquired by the State Authority that
is against the rights to own property.
 INTRODUCTION
♦Land Acquisition is an interference
with the individual’s right to
property.
♦The registered proprietor cannot get
the protection of indefeasibility once
the SA decided to acquire his land.
 INTRODUCTION
♦ In Malaysia, that right is guaranteed under Article 13
of the Federal Constitution, which provides that:
a. No person shall be deprived of property save in
accordance with the law
(Tiada seorang pun boleh dilucutkan hartanya
melainkan mengikut undang-undang)
b. No law shall provide for the compulsory acquisition
or use of property without adequate compensation
(Tiada undang-undang boleh membuat peruntukan
untuk mengambil atau menggunakan harta secara
paksa melainkan dengan pampasan yang memadai)
 INTRODUCTION
♦Therefore, before any privately-owned
land can be compulsorily acquired or
used by the authorities, a specific law
providing compulsory acquisition must
first be enacted and that law must lay
down in the clearest of term the
procedure for the compulsory acquisition
and the principles to be applied in
awarding the “adequate compulsory” as
guaranteed in the FC.
 INTRODUCTION
♦In order to ensure fairness -
Parliament enacted Land Acquisition
Act 1960.
♦The effect for non-compliance – the
acquisition can be challenged and
the court can nullify the whole
procedures.
 INTRODUCTION
♦ Two fold functions of the act can be summarized as
follows:
a. To provide a standard method of procedure
applicable to all the states in Malaysia
(Untuk mewujudkan satu prosedur yang seragam bagi
semua negeri di Malaysia)
b. To serve as speedy mechanism for acquiring land
compulsorily
(Untuk mewujudkan satu mekanisme yang pantas bagi
mengambil tanah secara paksa)
(Salleh Buang, Malaysian Torren System)
 INTRODUCTION
♦ The Act states that it is an act intended to
“consolidate the law relating to the acquisition
of land, the assessment of compensation to
be made on account of such acquisition and
other matters incidental thereto”.
(“menyatukan undang-undang berhubung dengan
pengambilan tanah, pentaksiran pampasan yang
akan diberi disebabkan pengambilan tersebut, dan
perkara lain yang berkaitan dengannya”).
 INTRODUCTION

♦The First Schedule to the Act

states the detail of principles of
“Market Value” to ensure that
the sum paid to the deprived
owner will constitute an
adequate compensation.
(pampasan yang mencukupi).
 POWER TO ACQUIRE LAND
♦9TH FC states that land is a state matter.
♦Clause 2 (d) of 9TH FC states that
compulsory land acquisition is under
jurisdiction of the SA.
♦Thus, only the State Authority can
acquire lands compulsorily, even in the
case of land acquired by Federal
Government, a federal agency or
statutory corporation.
PURPOSES OF LAND ACQUISITION
♦ Section 3 LA 1960 provides the purpose of
land acquisition:
a. for any public purpose
b. by any person or corporation for any purpose
which in the opinion of the state authority is
beneficial to the economic development of
Malaysia or any part thereof or to the public
generally or any class of the public
c. for the purpose of mining or for residential,
commercial or industrial purpose
S KULASINGAM AND ANOR V COMMISSIONER
OF LANDS, FED TERRITORY AND ORS (1982)

Hashim Yeop Sani J:

“The expression “public purpose” is incapable of
a precise definition ….. but in my view it is still
best to employ a simple common sense test,
that is, to see whether the purpose serves the
general interest of the community”.
(“Istilah “maksud awam” tidak boleh ditakrif dengan tepat
….. pada hemat saya amat baik sekali untuk menggunakan
ujian pengertian biasa, iaitu sama ada maksud itu
memelihara kepentingan am masyarakat”).
 YEW LEAN FINANCE DEVELOPMENT (M) SDN
BHD V DIRECTOR OF LANDS AND MINES,
PENANG (1977)

♦ The notification issued to the land owners

stated that their lands were being acquired for
residential, industrial and public purposes.
♦ The owner challenged the acquisition on the
ground that their lands were being acquired
for some ‘vague purpose’ and therefore the
notification of intended acquisition was null
and void.
 YEW LEAN FINANCE DEVELOPMENT (M) SDN
BHD V DIRECTOR OF LANDS AND MINES,
PENANG (1977)

HELD:
Government was the sole authority to decide what
is and what is not a public purpose and in particular
circumstances it might be impractical to specify the
exact purpose of any particular lot or area of land
so acquired. State Authority was under no
obligation to confine the acquisition of land to
purposes which came under one particular category
only as described in Sec 3, LA.
 YEW LEAN FINANCE DEVELOPMENT (M) SDN
BHD V DIRECTOR OF LANDS AND MINES,
PENANG (1977)

(Kerajaan adalah pihak berkuasa tunggal yang

berkuasa menentukan apa yang dikatakan, dan apa
yang bukan dikatakan maksud awam dan dalam hal
keadaan tertentu adalah tidak praktis untuk
menetapkan secara terperinci maksud sesuatu lot
atau kawasan tanah itu diambil. Pihak Berkuasa
Negeri boleh menggunakan mana-mana satu
kategori tertentu seperti yang dinyatakan dalam
Sek 3, Pengambilan Tanah).
 SYED OMAR BIN ABDULLAH RAHMAN AND
ANOR. V GOVERNMENT OF JOHORE (1979)

♦ Respondent had acquired some 5,700 acres

but only 2000 acres were needed for the
project of Pasir Gudang Port. The remaining of
3,700 acres were for “special purpose”.
SYED OMAR BIN ABDULLAH RAHMAN
AND ANOR. V GOVERNMENT OF
JOHORE (1979)
♦ HELD:
LA imposes no obligation on the acquiring
authority to produce a plan for inspection to
show how the land to be acquired is to be
zoned…
(PT tidak mewajibkan pihak berkuasa
mengemukakan pelan untuk pemeriksaan
yang menunjukkan bagaimana tanah yang
akan diambil itu hendak dizon…)
 LAND
ACQUISITION
PROCESS
LAND ACQUISITION PROCESS

1. PRE-
ACQUISITION

3. POST 2. PHYSICAL
ACQUISITION ACQUISITION
 1. PRE-ACQUISITION
Search and Determine Location
Prepare Allocation
Technical Department Report
Official Application
File Registration
Charting
Site Visit
Land Report
Preparation Of Paper Work (Exco Paper)
 2. PHYSICAL ACQUISITION
Pegging
Prepare And Serve Notices In Forms E And F
Enquiry
Prepare And Serve Notices In Forms G And H
Payment Of Compensation
Prepare And Serve Notice In Form K
Memorial In RDT
 3. POST ACQUISITION
Requisition For Survey
Settlement Tracing Process
Compensation Adjustment
Issue of Title or Title in Continuation
 LAND
ACQUISITION
PROCEDURE
LAND ACQUISITION PROCEDURE
Application for land acquisition
Approval by the State Authority
Notification under section 4
Declaration under section 8
Enquiry by the Land Administrator
Written award by the Land Administrator
Formal possession on the scheduled land
Reference to Court (if any)
 REASONS FOR CHALLENGING
ACQUISITION PROCEEDINGS
Dissatisfaction with quantum
Breach of Natural Justice
Contrary to Article 13 of the FC
Delay
Mala Fide on part of the State Authority
 FIRST
SCHEDULE
 FIRST SCHEDULE:
PRINCIPLES RELATING TO THE
DETERMINATION OF COMPENSATION
PARA 1: MARKET VALUE
PARA 2: MATTERS TO BE CONSIDERED
IN DETERMINING
COMPENSATION
PARA 3: MATTERS TO BE NEGLECTED IN
DETERMINING COMPENSATION
PARA 4: LIMITATION ON AWARD
CONTINUE …