Case Summary: Bungsar Hill Holdings Sdn Bhd v. Damansara Realty Berhad [2019] 3 MLRA 265 FC
Court and Date: Federal Court, Putrajaya (13 March 2019)
Main Legal Principle (Held):The Federal Court dismissed the appeal and held that, in a case of competing claims for land acquisition compensation under the Land Acquisition Act 1960 (LAA), the unsuccessful claimant (Damansara Realty Berhad) was not liable to pay interest on the compensation monies when they were released to the rightful party (Bungsar Hill Holdings Sdn Bhd)(paras 16, 42).
The key principles underlying this decision are:
- The LAA is a special and specific law that, following the 1997 amendment, replaced the concept of “interest” with a regime of “Late Payment Charges” for delays in compensation by the Land Administrator (paras 25, 28).
- The legal maxim expresso unius est exclusion alterius (express mention of one thing implies the exclusion of another) applies, meaning the explicit provision for Late Payment Charges in the LAA necessarily excludes any payment of interest (paras 29, 31).
- Section 11 of the Civil Law Act 1956, which grants the power to award interest for the recovery of debt or damages, is not applicable to matters relating to land acquisition under the LAA (para 35).
Excerpt from the Court (Rohana Yusuf FCJ):“The proposition that the LAA does not recognise payment of interest is further compounded by the fact that pursuant to the amendment Act A999 the word ‘interest’ has been intentionally removed. Act A999 had specifically substituted the words ‘Late Payment Charges’ for the word ‘interest’ in ss 29A, 32 and 48 of the LAA. The intention of Parliament in choosing to use a different terminology in the amendments must mean that it intends to deliberately remove the concept of interest or any imposition of interest under the LAA and land acquisition cases… With the specific exclusion of interest in the LAA in our view s 11 of the Civil Law Act can no longer be applied to cases under the LAA.” (paras 32, 33)
Disclaimer: This post is for informational purposes only and does not constitute legal advice. Please consult a qualified Advocate & Solicitor for your specific legal needs.
