Land Acquisition

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Introduction Land acquisition involves the compulsory taking of land, often against the will of the land owners. The law in Malaysia requires the state to pay compensation adequately; however, adequate compensation is not defined in the statute. Historically, the courts seem to have succumbed to the pretence that the adequacy requirement may be achieved by giving sufficient monetary rewards in exchange. Freedom of the person and the right to acquire, hold and enjoy property are the two pillars on which a democratic society rests. These are characteristics as natural rights of the people. Property is not only an economic asset; it also has emotional and sentimental value (Jain & Xavier, 1996). The right to property is not absolute. This right has always been regarded as being subject to eminent domain, an inherent right of the state, an essential part of the state sovereignty (Ghosh, 1973). Eminent domain is subject to two essential conditions: private property is to be taken only for public use; and just compensation must be paid for the property taken (Keith, 1984). Land acquisition, therefore, is a way of direct control over land development. Land acquisition is also the government’s tool to assemble land in resolving the land supply problems for development. Land assembly through land acquisition is a way out to solve problems with landownership and landowners’ reluctance to offer their land for development (Omar & Ismail, 2005). Land Acquisition Law The power of compulsory purchase supports the land assembly negotiations in order to avoid situations where individual landowners can freeze development by refusing to sell, particularly by trying to hold out for unreasonable purchase price (Ball,

1996).

Under

certain

circumstances,

such

as

when

there

are

landownership problems and passive landowners, the government feels that to

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undertake land development by compulsory purchase is more complicated, time consuming and more expensive than to reclaim land from sea for development in certain waterfront areas (Omar, 1999; Omar & Ismail, 2005). The government of Malaysia is engaged in a massive programme of construction of various public works all over the country that involves acquisition of private land on a large scale. The government intervention over land development is directly exercised under the power of land acquisition as stipulated under the Land Acquisition Act (1960), and provided under Article 13 of the Malaysian Constitution (1957). This article stipulates that no person may be deprived of property in accordance with law and no law may provide for compulsory acquisition or for the use of property without adequate compensation. With reference to the clause of the land acquisition by the Federal Government, Article 83 set out detailed procedures for land compensation as stipulated by the Malaysian Constitution (1957). Therefore, using the power contained in the Land Acquisition Act (1960), the government can acquire land for public purposes with adequate compensation as determined under Schedule 2 of the Act. Adequate compensation, therefore, as stated under the provision of Article 13(2) of the Federal Constitution refers to the amount of compensation which is decided, considering all principles stated under the First Schedule of the Land Acquisition Act 1960. Even though the State Authority, under the provision of Land Acquisition Act 1960, has the power to possess any private land, it does not allow the authority to violate one’s right onto their private properties (Omar & Ismail, 2005). Land Acquisition Act 1960 (Act 486) Land Acqusition Act 1960 was firstly enacted in 1960 with (Act No 34 of 1960) and has been revised in 1992 (Act 486 w.e.f 18 th March 1992). Act 486 containing eight parts with 70 sections. According to Act 486, Land Acquisition Act is an act

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relating to the acquisition of land, the assessment of compensation to be made on account of such acquisition, and other matters incidental thereto. Under the section 3 (1), land may be acquired by the State Authority which is needed: (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; or

(c)

for the purpose of mining or for residential, agricultural, commercial, industrial or recreational purposes or any combination of such purposes.

Section 3 (3), stated that any application made under para. (1) (b) or (c) shall be accompanied by (a) the project proposal; (b) the layout and land acquisition plan; (c) the preliminary Government valuation report of the land to be acquired; and (d) such fee and deposit as may be prescribed in the Rules made under this Act: Section 4 (1) provides that a notification in Form A shall be published in the Gazzette. Under the Section 5 empowers officials from the State Authority to enter and survey the acquired land but the right exist only when express permission has been given by the occupier or, falling such consent, after three day’s written notice has been given to the occupier of such dwellings premises. But if any persons causes damage to the land entered upon he shall as soon as possible

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compensate the occupier for all such damage, which clearly stated in section 6 (1) Under Section 7, whenever any lands are needed for any of the purposes referred to in section 3, Land Administrators shall prepare and submit to the State Authority: (a) a plan of the whole area of such lands, showing the particular lands, or parts thereof, which it will be necessary to acquire; and (b) a list of such lands, in Form C. Under section 8 (3), it is provided that a declaration of state authority in Form D (which is the Declaration of Intended Acquisition) shall be conclusive evidence that all the schedule land referred to therein is needed for the purpose specified therein. This provision would therefore seem to place the issues of “purpose” beyond any challenge or questions by the deprived owner, and this view seems to be supported from the scanty case-law on the matter which indicates that the only grounds left open for the owner to challenge the acquisition are mala fide or that the acquiring authority had misconstrued its statutory powers. In Section 8 (4), a declaration made under section 8 (1), will lapse and cease to have any effect on the expiry of 2 years after the date of the publication in the Gazzete in so far as it relates to any land in respects of which the Land Administrator has not made an award and accordingly all proceedings already taken or being taken in consequences of such declaration will terminate and be of no effect. Section 9 stated that, after declaration of intended acquisition in Form D has been published in the Gazzette, the land to be acquired must be marked out and a note of the intended acquisition must be made upon the register document of title.

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Under section 10, the Land Administrator will then give public notice of an enquiry, stating the day, place, and hour of enquiry in accordance with Form E. A copy of the schedule to the declaration in Form D shall be appended to every notice in Form E. The purpose of the enquiry is to hear all claims for compensation in respects of the acquired lands. There must be 21 days clear notice before the enquiry can be convened. Section 11 stated that, in addition to the public notice as required in subsection 10 (1), Land Administrator are required to serve a copies of Form E upon the occupier of such land, the register proprietor of such land, any person having a registered interest in the land and any other person whom he knows or has a reason to believe to be interest therein. The enquiry by the Land Administrator is stated in Section 12, where Land Administrator shall make a full enquiry into the values of lands and shall as soon as possible thereafter the amount of compensation which is appropriate in accordance with the principles set out in the First Schedule. The Land Administrator also is required to hear all objections, if any, submitted by any interested person and may postpone or adjourn the enquiry from time to time, where there is sufficient cause to do so, the circumstance of which must be recorded in writing. Under section 14, at the conclusion of the enquiry, the Land Administrator must make his award, which must be in writing, under his hand, in accordance with Form G. He must make a separate award in respects of each person entitle to the award. Section 14 (2) expressly stipulates that the award is final and conclusive as to the area, value and apportionment of the compensation whether the person interested have appeared or not in the enquiry. An award shall not be invalidated by reason only of the fact that are in respects of which the award is made is greater or smaller than the schedule land, provided that the differences

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does not exceed one quarter of a hectare or one percent of the area of the scheduled land, whichever is the greater. In section 16 (2), every notice in Form H shall include an extract from the written award of the Land Administrator in Form G, relating to the land in which the person to whom such notice is addressed has an interest. Summary of enquiry is stated in Section 17, where whenever a notice in Form E has been served in respect of any schedule land, has been satisfied by the Land Administrator, he may in lieu of making an enquiry under section 12 proceed by way of a summary enquiry that shall be held in such manner and at such places as the Land Administrator may think fit and on enquiring into the respective interests of all persons claiming compensation in respects of the schedule land. The Land Administrator may, where any award under subsection (2) is accepted: (a)

require the title to the scheduled land to be delivered to him forthwith; and

(b)

upon any such delivery pay to the person interested therein the amount of the award.

Under section 18 stated that the general power of the Land Administrator may take possession: (a)

of any land in respect of which an award has been mande under section 14, such possession being taken at the time of the service upon the occupier of such land of a notice in Form H or at any time thereafter;

(b)

of any land specified in a Certificate of Urgency issued under section 19, whether or not any awards has been made in respect of such land:

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In cases where the amount of compensation exceeds RM 15,000, the Land Administrator is now obliged under section 29A to release only 75% of the award. The balance is to be withheld until the amount of compensation is finally determined either by a court of law in cases where objections to the amount of compensation had been made under section 37 of the Act. If no objection is made, then the release of the balance will be made upon expiry of six weeks from the date of the service of Form H on the government, person or corporation on whose behalf such land was acquired. Section 37(1) stated that any persons who has made a claim to the Land Administrator in due time and who has not accepted the award thereon, or has accepted payment under protest, may make objections to the Land Administrator as to the following: (a)

the measurement of the land;

(b)

the amount of compensation;

(c)

the person to whom it is payable;

(d)

the apportionment of the compensation.

In section 38, any objections must be made by a written application in Form N, addressed to the Land Administrator, requiring the latter to refer the matter to the High Court for its determination. The application must state fully the nature of the person’s interest in the land, the nature of his objection, and the ground in support that objection. Apart from section 37, under which the Land Administrator is obliged to refer to the court land acquisition cases upon application by interested persons or the government or public body or agency on whose behalf the land has been acquired, the Land Administrator may also on his own motion, by means of an application in Form M, refer to the High Court for its determination regarding any of the following matters:

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(a)

the true construction or validity or effect of any instruments;

(b)

the person entitled to a right or interest in land;

(c)

the extent of nature of such right or interest in land;

(d)

the apportionment of compensation is payable;

(e)

the cost of any enquiry under the Act and the persons by whom such cost shall be done.

Under section 39, before making any reference to the court, Land Administrator may require any person making the application to deposit with Land Administrator such sum not exceeding RM 1,500 or the award, whichever is the less, as security for cost of reference and appeal. If the deposit is not made within 14 days of it being required by the Land Administrator, the applications for reference shall be deemed to be withdrawn and the Land Administrator award shall thereupon become final. Compulsory Land Acquisition According to Gurjit Singh (1994), The Malaysian Constitution provides in Article 13 that no person may be deprived of property save in accordance with law and no law may provide for compulsory acquisition or use of property without adequate compensation. Under the Land Acquisition Act 1960 (Government of Malaysia, 1960), the State Government could acquire land for a specific public purpose. By virtue of an amendment in 1973, land could also be acquired for mining, residential, commercial or industrial purposes. For the government this is a method of land assembly. Public purpose projects are also a means through which broad sectoral policies of the NEP and NDP are translated into physical projects for the benefit of the population. There have been many public purpose projects which have brought development and basic facilities to the rural areas. The existing law provides for a

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cumbersome framework for acquisition of land. Compensation is paid for all land taken. However, where an element of betterment is present there have been instances where adequate compensation in the form of nominal sums has been paid (Government of Malaysia, 1960). Where aggrieved parties are not satisfied with the compensation received there are mechanisms for appeal to the courts. The framework allows the government to take possession of the land even though the compensation is being appealed in court. This is to ensure that public projects are not delayed. The provisions of the Act have also been used somewhat unimaginatively to prevent land speculation by gazetting the large areas in which the land is to be acquired under Section 4 of the Act thereby “freezing” all land transactions in the area. The maximum period for such a freeze is one year and there are provisions for renewal through the publication of fresh gazettes. Such antics are problematic for land owners in an area who are faced with uncertainty as to whether their land is to be acquired. There have been instances where such owners because of the quandary they face are pressured by unscrupulous land hoarders to “sell” their land to them. These unfortunate landowners are usually smallholders who have ironically been the target group of the NEP and NDP in reducing their poverty levels. Recently, in 1991 the Government amended some critical provisions of the Act. Section 3 of the Act was amended to provide for the compulsory acquisition of land for any purpose deemed beneficial to the economic development of Malaysia or to the public or any class of the public. The reason given by the government for this amendment was that Government could not conform to Article 86 (1) of the Constitution which gives the right to Government to alienate land to anyone who is qualified as the Act does not provide for the alienation of compulsory acquired land to third parties.

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Another amendment was the inclusion of a new section 68A which now prevents any land acquired from being invalidated as a result of a subsequent disposal or a change of use of land. This amendment was also retrospective. On this amendment the Government stated that it faced problems in continuing development projects that have been abandoned as there is no provision in the Act to allow for the development of projects other than that which is stipulated as a public purpose project in the notice of acquisition. Hence the usage of the acquired land could not be changed under the Act. The amendment now overcomes this constraint. The amendments give the Government very wide power to acquire land for developments not necessarily of a “public purpose”. It is envisaged that such amendments will encourage a land policy which will favour private corporations who have now an avenue to obtain other strategic privately owned land through a legal mechanism which was intended to provide incremental benefit to the public at large. However, this not to say that public purpose projects will not be carried out on all land that is compulsorily acquired as there will still be numerous public purpose projects. Constitutional Position for Land Acquisition Land acquisition is an interference with the individual’s right to property. In Malaysia, that right is guaranted under Article 13 of the Federal Constitution, which provided that (1)

No person shall be deprived of property save in accordance with the law;

(2)

No law shall provided for the compulsory acquisition or use of property without adequate compensation

This constitutional safeguard therefore demands that before any privately-owned land can be compulsorily acquired or used by the authorities, there must first be 11

enacted a specific law providing for that purpose, and that law must lay down in the clearest of terms the procedure for such compulsory acquisition and the principles to be applied in awarding an ‘adequate compensation’ as guaranteed in the Federal Constitution. That specific law is now known as the Land Acquisition Act 1960 (Revised 1985), a federal law passed by the Federal Parliament, repealing eight different statues enacted earlier. The Preamble to the act states that it is ant 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.” The First Schedule to the Act enunciates in detail the principles of ‘market value’, thereby ensuring that the sum paid to the deprived owner will constitute an adequate compensation. In Malaysia, only the State Authority can acquire lands compulsorily, even in cases where the lands acquired are required by the Federal Government, a federal agency or a statutory corporation. The term “State Authority” has been defined in section 2 of the Land Acquisition Act 1960 to mean “the Ruler or the Governor of the State”. The 1960 Act has a two-fold objective, firstly to provide a standard method of procedure applicable to all the states in Malaysia, a secondly to serve as a speedy mechanism for acquiring land compulsorily where they are needed urgently for development purposes. Properly implemented, the Act should be able and rendering justice to the dispossessed owners. The 1984 amendment to the law is a case in point. Purposes of Acquisition A law providing for compulsory acquisition of private land is necessary because of two main reasons. Firstly, the owner is unwilling to part with his property

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whateger may be the price that he is offered, and secondly, the land to be acquired may be currently subject to a certain category of land use whilst the authorities might have a different plan for it. The Land Acquisition Act overcomes these two hurdles and ensures that government development programme can take off without any undue delay. Acquisition implies that there must be an actual transference of property and it must be possible to indicate some person or body to whom it is transferred. Mukherjee j (1951) state that acquisition means the acquiring of the expropriated owner, whatever the nature or extent of that title may be. The entire bundle of rights which were vested in the original holder would pass on acquisition to the acquirer leaving nothing to the former. The effect of a compulsory acquisition is that the owner is divested of his indefeasible title to his land and his paramount right to the exclusive use and enjoyment of the land as guaranteed under the Code has come to an abrupt. According to Salleh Buang (2005), purpose of acquisition is stated in section 3(1) of the Act states that private property can be compulsorily acquired by a State authority if it is needed •

For any public purpose;

•

By any person or corporation for a purpose which, in the opinion of the State authority, is beneficial to the economic development of Malaysia or any part thereof; or

•

For mining/ residential/ agricultural/ commercial/ industrial/ recreational purposes or any combination of such purposes.

The term “public purpose” has not been expressly defined. Parliamentary reluctance has meant the matter is left to the courts to interpret. Unfortunately, the courts have consistently declined to do so.

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In S. Kulasingam & Anor vs Commissioner of Lands, Federal Territory & Ors (1982, 1 MLJ 204), the court said, “The expression ‘public purpose’ is incapable of a precise definition”. In this, the Malaysian courts were following the practice adopted in India. It is indeed a pity that when the relevant law in India was revamped, with the term “public purpose” extensively defined, Malaysia failed to follow suit. Thus, the term was left adrift in a sea of uncertainty, tossed between waves of conjecture and speculation. As for the acquisition of private property for “economic development”, this provision has in the past led to abuse. There had been cases of alienated land being acquired from “X” only to be given to “Y” later, via privatisation. In one northern State, there was a plan to acquire padi land and turn it into a golf course. There were strong objections from members of the public and mercifully, the plan was shelved. In Syed Omar vs Government of Johor (1979, 1 MLJ 49), private property belonging to the plaintiff, measuring some 5,700 acres, was compulsorily acquired even though only 2,000 acres were actually needed for the construction of the Johor Port. The remaining portion of the land was marked for “future development”. The aggrieved owner challenged the acquisition on various grounds, including mala fide (done in bad faith). His attempts failed. It is rather unfortunate that counsel for the plaintiff (and the courts hearing the case at the trial as well as the appeal stages) did not refer to an earlier decision

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of the Privy Council in the Sydney Municipal Council vs Campbell (1925, AC 338). The decision could well have been be different, had they done so.

Details Procedure Salleh Buang (2005) stated that, The Act sets out in detail the procedures a State authority will have to comply with if it wants to acquire land. There, many sections outlining the process, from the time the preliminary notice is given of the intention to acquire specific parcels of land (see related story). The Act saw some dramatic amendments in 1997, when Parliament stepped in to check instances of past abuses. They now appear as Sections 3A to 3F (new procedures when land is acquired for development). Another new section is 9A, with which the Land Administrator is empowered to obtain information on the current use of the land to be acquired, in order to work out compensation. Sections 40B to 40D specify the role of assessors in “assisting” a judge to decide the amount of compensation. This decision is “final” and not subject to appeal before a superior court. Though welcomed, these amendments still fail to match the expectations of the people. In 1998, the minister responsible for land matters brought in the Land Acquisition Rules with the approval of the National Land Council. These rules govern the procedures for the acquisition of land for economic development or for any other specific purpose. Measure of Compensation

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Article 13 of the Federal Constitution requires that “adequate compensation” must be paid for every land acquisition. The Act states that after the Land Administrator has completed the enquiry pursuant to the provisions of section 12 thereof, he must as soon as possible thereafter assess the amount of compencation which in his opinion is ‘appropriate’ in accordance with the principles set out in the first schedule. In cases where the matter has been referred to the court, section 47 stipulates that the decision of the court, when awarding compensation to the deprived owner, must specify: (a)

the amount on account of the market value of the land under para (a) of section 2 of the First Schedule;

(b)

the amount, if any, deducted under para. (b) of the said section;

(c)

the amount, if any, respectively awarded under para. (c), (d) and (e) of the said section; and

(d)

in respect of each amount, the grounds for awarding or deducting the said amount.

According to Anuar Alias and Md Nasir Daud, In Malaysia, federal, state, local governments and public authorities are vested by statute with the power to acquire land. The law of land acquisition is principally concerned with the rules governing the procedure to be followed in acquiring the land by compulsory means and with the awarding of compensation to the dispossessed landowner. Here, property is acquired by the state against the will of the landowner, but this can be done in the public interest and not in private interest (Brown, 1991). Eminent domain does not permit taking property of A and giving it to B to confer benefit on him. It also does not permit taking away property without just compensation. It is not eminent domain but expropriation, and this is illegal (Jain & Xavier, 1999).

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The land acquisition statutes also provide that a dispossessed landowner shall receive compensation for the loss of the resumed land. According to RowanRobinson and Brand (1995), the purpose of compensation is to compel the owner to sell the right (in monetary terms) as though the land owner is in the same position as if his land had not been taken. In other words, the landowner gains the right to receive a monetary payment not less than the loss imposed on him in the public interest, but, on the other hand, no greater. The underlying theme in the compensation provisions of the land acquisition statutes is to ensure that a dispossessed landowner is no worse off and no better off as a result of his eviction (Brown, 1991). This paper presents a study conducted via questionnaire survey amongst practising valuers in Malaysia. Land is acquired in Malaysia under the Land Acquisition Act 1960. This is a serious encroachment on the right to property by legislation, although the fact remains that over a period of time, the law has been liberalized in certain aspects (Brown, 1991; Jain & Xavier, 1996). Nevertheless, there are still some aspects of the law which need to be modified (Jain & Xavier, 1996). Land acquisition and compensation matters are therefore entirely creatures of statute (Xavier, 2001). Historically, the courts have declared that the requirement may be satisfied by expressing adequate compensation in terms of money. The problem then is to find out, how much money is required to meet the constitutional mandate that adequate compensation be paid? To solve this problem, practitioners rely upon the concept of market value that is also provided under the laws of compulsory acquisition. The law requires in any acquisition of land that the State Authority pay adequate compensation. The term ‘adequate compensation’ is not defined. It is totally abstract; it has no meaning from a practical standpoint, unless it is related to

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something which has a concrete value (Graham, 1984 in Khong, 1996). Market value and adequate compensation are not defined in acquisition laws, neither has it been contended that adequate compensation and market value are the same thing. Obviously, in some cases they are not, rather the idea is that market value is the best method of satisfying the requirement that adequate compensation is paid. The idea is sound and it works well in practice (Khublal, 1994 in Khong, 1996). Therefore, it is the desire of the state to give adequate compensation based only on market evidence, and if each party involved in land acquisition will act in accordance with professional ethics, honesty and integrity, the objective of arriving at adequate compensation will be achieved based on market value (Khublal, 1994). Dundas & Evans (2001) stated that the compensation on the market value basis is considered to be satisfactory; however, there is a feeling that an additional payment, probably a percentage of the value, should be paid to all property owners or, perhaps, only to a restricted category, such as owners/occupiers. Epstein (1998) acknowledges that restrictions on the rights of others often serve as a form of implicit, in-kind compensation. For example, zoning restrictions in a residential neighbourhood may be justified by the average reciprocity of advantage received by residential landowners. A study in Aberdeen (RICS, 1995; Rowan-Robinson et al, 1995) also recommends that a supplement should be paid. If the compensation were seen to be more generous, it could be possible to present compulsory purchase positively to the extent that, if it were sufficiently high, owners/occupiers might welcome compulsory purchase.

Market Value According to Salleh Buang (2005), To ensure that the dispossessed owner is adequately compensated, the term “market value” has also been extensively defined in the First Schedule of the Act.

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Market value now means the value of the land as at the date the notice to acquire it is published in the Gazette, provided the notification is followed by a declaration to acquire, which must be made within 12 months. If the declaration is done later than 12 months, then the market value has to be the value on the date the declaration is published in the Gazette. The First Schedule also outlines “matters to be considered in determining compensation” as well as “matters to be neglected” (or not to be considered) in determining the quantum of compensation. In Ng Tiou Hong vs Collector of Land Revenue Gombak (1984, 2 MLJ 35), Federal Court’s Syed Agil Barakbah (J) explained that market value means the sum of money that a willing vendor might reasonably expect from a willing purchaser. The elements of unwillingness, sentimental value and urgency of the acquisition must be disregarded. Prices

of

sales

of

similar

land

in

the

neighbourhood or locality and of similar quality and positions may be taken into consideration. The potentials of the land must also be taken into account. Estimates by value are undoubtedly some evidence but too mush weight should not be given unless supported by, or coincide with, other evidence. In Bukit Rajah Rubber Co. Ltd vs Collector of Land Revenue Klang (1968, 1 MLJ 176), Raja Azlan Shah (J) said that no hard and fast rule can be laid down for assessing the market value of the land acquired. Evidence of (a previous) sale of the land is the safest guide. In the absence of such evidence, then evidence from the sale of similar land in the neighbourhood can be considered. The property must be valued not only with reference to its condition at the time of acquisition but also its potential development value.

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Conclusion The main issue of land acquisition is the quantum of compensation that is perceived by the respondents as inadequate to fulfill adequate compensation notion under the spirit of Constitution. There is a need to review the heads of compensation structure by incorporating other countries, practices. Although there is a broad acceptance that market value is the appropriate basis for compensation for land taken, perhaps there is also a general feeling that a solatium or premium should be paid to compensate the claimant for the compulsory nature of the acquisition. Most of the valuers perceived that land acquisition need not necessarily present the best alternative for government to secure land for development. Other alternatives such as direct purchases through negotiation and joint venture are the alternatives available for government to exercise rather solely depending on land acquisition powers. Land acquisition is a complex process, is sensitive in nature, and needs pragmatic approach to deal with. Wherever possible, land developments should be carried through the process of normal economic supply and demand. The problems of compensation are more than just a matter of law and valuation; it is a matter of justice between society and man. “The word compensation would be a mockery if what was paid was something that did not compensate”.

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Appendix 1 : Form A NOTICE THAT LAND IS LIKELY TO BE ACQUIRED It is hereby notified that lands in the locality described in the Schedule hereto, including those lands, if any, specified by lot number or by the lot numbers of neighbouring lands, are likely to be needed for the following purpose: ............................................................................................................................................... ............................................................................................................................................... .. 2. It is further notified that any person authorized by the State Director in that behalf may enter upon any land in such locality in order to examine it and undertake survey operations. If any damage is done in the course of such work compensation therefor will be paid. Any dispute as to the amount of such compensation will be referred to the Land Administrator at .................................................................................................................... Dated this ............ day of ........................, 20....... .................................................... State Director SCHEDULE District........................................................................................………....................……… Mukim ..……………………………………………………………………………………. Township Description of the locality......................................................................................................

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Appendix 2 : Form B AUTHORITY TO ENTER SURVEY To...................................................................... .......................................................................... You and your servants and workmen are hereby authorized, subject to paragraph 2, to enter upon — *(i) any lands in a locality which has been the subject to a notification issued under section 4 of the Land Acquisition Act, or (ii) any lands in the locality scheduled in Gazette Notification No.......................... of ........................................................ and to do any or all the following: (a) survey and take levels of the land; (b) dig or bore into the subsoil; (c) do all other acts necessary to ascertain whether the land is adapted for the purpose for which it is to be acquired; (d) set out the boundaries of the land proposed to be taken and the intended line of the work, if any, proposed to be made thereon; (e) mark such levels, boundaries and line by placing marks and cutting trenches; (f) cut down and clear away any standing crop, fence or jungle, where otherwise the survey cannot be completed, or the levels cannot be taken, or the boundaries or line of the work cannot be marked. 2. Neither you nor any of your servants and workmen may enter into any building or upon any enclosed court or garden attached to a dwelling house, unless you have first obtained the consent of the occupier thereof, or, failing such consent, have given such occupier three days’ notice in writing of your intention to do so. Dated this ............ day of ........................, 20....... ................................................... State Director

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*Delete which is inapplicable

Appendix 3 : Form C SCHEDULE OF LANDS AFFECTED BY ACQUISITION District .............................................................................. Mukim/Township ..............................................................

Survey Lot

Title of

Registered Proprietor or

Area of

No

Occupation

Recorded occupant

lot

Approximate area to be acquired

Appendix 4 : Form D DECLARATION OF INTENDED ACQUISITION It is hereby declared that the particular lands and areas specified in the Schedule hereto are needed for the following purpose: ............................................................................................................................................................. ............................................................................................................................................................ 2. A plan of the particular lands and areas so specified may be inspected during the normal hours of business in the Land Office of the District in which such lands and areas are situated. Dated this ............ day of ........................, 20....... ..................................................... State Director [Schedule as in Form C, amended, if necessary, in accordance with the decision of the State Authority]

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Appendix 5 : Form E INTENDED ACQUISITION: NOTICE OF ENQUIRY In accordance with the declaration of intended acquisition of the lands described in the Schedule hereunder, notice is hereby given that an enquiry to hear all claims to compensation for all interests in such land will be held on .................day of ..................... at ................................ hours at ......................................... 2. All persons having interests in the said land, whether as proprietor, occupier, lessee, chargee, tenant or otherwise, are hereby required to appear before the undersigned at the above time either personally or by agent and there to state— (a) the nature of their respective interests in the land;

(b) the amount and particulars of their claims to compensation for such interests; (c) their objections, if any, to the measurements of approximate area given in the Schedule below;

(d) the names of any other person known to the party or his agent to possess any interests in the land or any part thereof, and to produce all documents relating to their claims. 3. Notice is further given that the undersigned may require—

(a) that in any particular case any such statement or statements should be reduced to writing and signed by the party or his agent;

(b) that any person in possession of the issue document of title in respect of any land scheduled below deliver up such document at the time of inquiry. Dated this ............ day of ........................, 20....... ...................................................... Land Administrator [Schedule in Form D]

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Appendix 6 : Form F NOTICE TO REQUIRE EVIDENCE IN WRITING To ..................................................... ........................................................... ........................................................... Whereas the undersigned has reason to believe that you have particular knowledge of the land referred to in the attached notice (Copy of Form E to be attached): Take notice that you are hereby required to furnish, within ..................................... days of this date, a statement in writing declaring the following:

(a) separate valuations of the land and of the improvements, if any, thereon, showing the basis upon which such valuations are made;

(b) the name of every person possessing any interest in the land or any part thereof, either as co-owner, chargee, lessee, sub-lessee, tenant or otherwise; and

(c) the nature of any such interests and the amount of the rents and profits, if any, received or receivable on account thereof for the three years immediately preceding the date of this notice. Dated this ............ day of ........................................, 20....... .................................................. Land Administrator I, the undersigned, .......................................................................hereby acknowledge receipt of the above notice. Dated this ............ day of ..........................................., 20.......

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Appendix 7 : Form G WRITTEN AWARD OF COMPENSATION Acquisition Hearing No ................................................. in respect of Lands scheduled in Gazette Notification ..................................................... The awards set out in the Schedule hereto are hereby made in respect of the areas of land specified therein, to the persons interested therein, as specified below

SCHEDULE Lot No

Area required

Persons

Nature of

Apportionment

For Official

interested

interest

of Award

use

Dated this ............ day of ....................................., 20.......

.................................................. Land Administrator

Appendix 8 : Form H

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NOTICE OF AWARD AND OFFER OF COMPENSATION To ......................................................... ............................................................... ............................................................... You are hereby informed that at the hearing before the undersigned on the ...................... day of ......................................... an award as in the Schedule hereto was made in respect of the lands specified therein in which you have an interest. 2. In accordance with this award I hereby offer you the sum of RM ......................... being the amount specified below as full compensation for your interest in this land. 3. Take notice that section 29A of the Land Acquisition Act 1960 requires me to withhold twentyfive per cent of the amount of the award in certain circumstances, subject to the provisions of that section. Dated this ............ day of ................................., 20....... ........................................................ Land Administrator SCHEDULE [Relevant extract from Form C including all awards, if any, to other person/ persons interested in the land] I, the undersigned........................................................................... hereby acknowledge receipt of the above offer. 2. *(a) I accept the offer; and *(i)

I am prepared to attend the Land Office on any appointed day to receive payment in *cash/cheque/money order; or

*(ii)

I request that the amount due be sent to me by cheque/money order at the above address.

*(b)I accept the offer under protest. *(c) I do not accept the above offer. Dated this ............. day of ............................, 20....... *Delete as appropriate

Appendix 9 : Form I

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CERTIFICATE OF URGENCY Acquisition Proceedings No...................... Gazette Notification No ............................ To: The District Land Administrator, .............................................................................................................................. Whereas the land scheduled below was declared by the above Gazette Notification to be required for a public purpose or for a public utility: And whereas such land is now urgently required for use for a public purpose or for a public utility: Now therefore in exercise of the powers conferred by section 19 of the Land Acquisition Act 1960, I hereby certify that such land is urgently required for use for a public purpose or for a public utility and DIRECT you forthwith to take possession of such land. Dated this...........day of..................................., 20....... ..................................................... State Director [Schedule as in Form D]

Appendix 10 : Form J

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To: Occupier/Owner of the building on Lot No .................................... Title No ........................ Mukim/Township ................................... Whereas the above land has this day been acquired by virtue of a Certificate of Urgency signed by the State Director: Now I hereby require that you vacate the building referred to above and situated on the said land within ...................................... days of this date. 2. Take notice further that I hereby offer to the owner of the premises compensation to the amount of RM ......................................... which compensation represents— *(a) the value of the building* *(b) the cost of removing and reerecting such building elsewhere.* Dated this ............ day of ................................., 20....... ............................................... Land Administrator *Delete whichever is inapplicable

Appendix 11 : Form K 3 0

NOTICE THAT POSSESSION HAS BEEN TAKEN OF LAND Acquisition Proceedings No ............... Gazette Notification No ............................. It is hereby notified that I have today, pursuant to section 22 of the Land Acquisition Act 1960, taken formal possession of the land shown in the Schedule below to the extent declared in the last column of that Schedule. *A copy of a Certificate of Urgency issued by the State Director is annexed. Dated this ............ day of ...................................., 20....... ................................................... Land Administrator [Schedule as in Form D as amended]

Appendix 11 : Form L

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NOTICE TO DELIVER UP DOCUMENT/S Acquisition Proceedings No ............................ Gazette Notification No ..................... To .............................................................. .............................................................. .............................................................. Whereas the whole/part of the land comprised in Title ................... Lot...................... Mukim/Township .............................. has been formally acquired by the State Authority: And whereas I have reason to believe that the documents of title hereinafter referred to are in your possession: Now therefore in exercise of the powers conferred by section 24 of the Land Acquisition Act 1960, I hereby require you to deliver to me the document/s of title specified in the Schedule hereto within a period of ............................ days from the date of the service on you of this Notice.

Dated this ............ day of .................................., 20....... ..................................................... Land Administrator

SCHEDULE [Here list document/s of title]

Appendix 12 : Form M 3 2

REFERENCE TO COURT To....................................................................................................................... The High Court............................................................................................................................ In the matter of.................................................................................................................................... I........................................................, Land Administrator for the Distric of ................................ in the State of.......................................... in exercise of the powers conferred by subsection 36(2) of the Land Acquisition Act 1960, hereby refer the following question to the Court for its determination: 2. The parties interested, so far as I know or have been informed, are as follows: Dated this............. day of .................................., 20..........

............................................... Land Administrator

Appendix 13 : Form N 3 3

APPLICATION THAT AN OBJECTION BE REFERRED TO COURT To: The District Land Administrator................................................................... ACQUISITION PROCCEDINGS NO........................................ I......................................of.......................................hereby make an objection to the award of the

Land

Administrator.....................dated..............................in

respect

of

land

Lot................................. Title......................... 2.

My

interest

in

the

said

land

is

as

follows:.......................................................

............................................................................................................................................................. *3. My objection is to: (a) the measurement of the land; (b) the amount of the compensation; (c) the persons to whom it is payable; (d) the apportionment of the compensation. **4. The grounds of my objection are as follows: ............................................................................................................................................................. ............................................................................................................................................................. ............................................................................................................................................................. 5. In accordance with subsection 38(1) of the Land Acquisition Act 1960, I hereby require you to refer the matter to the Court for its determination. Dated this............. day of ................................, 20.......... ........................................... Signature of the applicant *Delete items inapplicable. **Here set out the grounds on which objection to the award is taken (in full)

Appendix 14 : Form O 3 4

Acquisition Proceedings No................................ Gazette Notification..............................................

REFERENCE TO COURT To: The Registrar, High Court, ................................................... Whereas I have received an Application under section 38 of the Land Acquisition Act 1960, requiring me to refer to the Court the following matter for its determination: *And whereas a due deposit of ..............................ringgit has been deposited with me as security for the costs of the reference and appeal: Now therefore pursuant to section 38 of the said Act I hereby refer the following objection to the Court: [Here summarize objection/s] 2. The following is the situation and extent of the land, and particulars of any trees, buildings, or standing crops thereon: [Here set out details] 3. The following are the names and addresses of all the persons whom I have reason to believe are interested in such land: (Name) (Address) (Interest) 4. The following notices have been served upon the parties interested: (Notice) (Name of party) 5. The following statements in writing have been made or delivered by the following interested parties: (Name of Party) (Particulars of statement)

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**6.

The

amount

awarded

for

damages

under

section

6

of

the

said

Act

was............................ringgit. 7.

The

amount

of

compensation

awarded

under

section

14

was..............................................ringgit. **8. The following are the grounds on which the amount of compensation wasvdetermined: [Here set out grounds] 9. I attach hereto copies of the following documents: [Here list documents]

Dated this ............day of ........................................, 20....... ................................................ Land Administrator

[The above paragraphs may be completed by appropriate references to documents to be annexed thereto.] *Delete if inapplicable. **To be completed only where the objection is to the amount of compensation.

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Appendix 15 : Form P NOTICE To.......................................................... ............................................................... LAND REFERENCE NO……………………… OF...................................... Notice

is

hereby

given

that

on

the...................................................day

of

.............................................at the hour of....................................................in the......................... noon, the High Court sitting at ...............................will proceed to hear and determine the objections contained in the above Reference, and relating to the following land: [Here insert details of land] 2. You are hereby directed to appear before the Court at such hearing. Dated this ............ day of .............................., 20........... . ................................... Registrar

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Appendix 16 : Form Q NOTICE OF TEMPORARY OCCUPATION OR USE OF LAND To.................................................. ....................................................... *Occupier/Owner of Lot...................Title.................. .............. *Mukim/Township………………. All persons having any interest in the above land are hereby notified that it is required for temporary

occupation/use

for

the

term

of.....................................

from

date

.............................................. for the following purpose: ............................................................................................................................................................. ............................................................................................................................................................. 2. In exercise of the powers conferred by section 56 of the Land Acquisition Act 1960, I hereby give notice that I am prepared to *make an offer of / negotiaite payment of compensation .............................for the occupation/ use of the above land and that I require every person having any interest in the land to appear before me on the...........................day of................................at .........................................at the hour of ............................................... in the fore/afternoon. Dated this ............ day of .................................., 20....... ...................................... Land Administrator *Delete whichever is inapplicable.

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Source and Refferences Anuar Alias and Md Nasir Daud (2006), Payment of Adequate Compensation for Land Acquisition in Malaysia, Universiti Malaya, www.press.net; retrieved on October 6, 2008 Gurjit Singh (1994), Land Laws, Land Policies and Planning in Malaysia, Urban Management Programme (UMP), www.press.net; retrieved on September 29, 2008 Land Acquisition Act 1960 (Act 486), Laws of Malaysia Salleh Buang (2005), Land Acquisition, National House Buyer Association, www.hba.org.my, retrieved on October 6, 2008

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