Yew Huoi, How & Associates | Leading Malaysia Law Firm

PROPERTY LAW— LAND ACQUISITIONS — COMMON PROPERTY — COMPENSATION

In brief

Compulsory acquisition of land is the process by which the government obtains land from private landowners for any public use or for a purpose that benefits Malaysia’s economic development. It is a severe form of government involvement because it results in the eviction and dispossessed of landowners. Landowners’ constitutional rights are affected by compulsory acquisition. Thus, it is critical for landowners to understand their rights in order for their land rights to be protected and adequately compensated.

Q. The district land authorities were forced to take the common property of your condominium. Purchasers, on the other hand, failed to compensate you when they made the transaction. When asked for compensation, buyers rejected because they had already established possession of the land without compensating the owners. What can the landowners do?

A. First and foremost, as a property owner, you have the right to petition the court for substantial money to be paid for the property, as well as a proper reimbursement for the purchase of the property.

 

What is a common property? 

  • Any other land in the property that does not belong to an individual strata unit owner is referred to as common property. Common property, on the other hand, is shared by all property owners. The gymnasium, swimming pool, and elevators are only a few examples.

What are the circumstances that allow the government to take your land?

  •  Only under limited conditions can the government legitimately seize your property. The Land Acquisition Act of 1960 (LAA) authorize the government to seize a person’s property for public use if it benefits everyone. According to Section 3 of the Land Acquisition Act the state authority may acquire any land that is required for any public purpose that is beneficial to Malaysia’s economic development, including mining, or for residential, agricultural, commercial, industrial, or recreational purposes, or any combination of these.

Example: In other words, if your land is needed for development in your township, it can be taken. If the future MRT project is expected to run through your neighborhood, the train firm or perhaps the state government may send you a notice or make a visit to your front door.

Can you stop the government from taking your land? 

  •  In order to prevent the authorities from taking your land, there are two elements you must first satisfy which are that the land isn’t being used for public purpose and it is not done in good faith.

If the government takes your land, do they have to pay you for it? 

  •  So, if all else fails and you can’t show anything against the government’s reason for seizing your property, you’ll have no option but to surrender control. But at the very least, you’ll get compensated. Furthermore, under Article 13 of the Federal Constitution, the government is required to provide you with adequate or sufficient compensation in exchange for the land that they require. However, a Land Administrator will assess the price of your land, and if you are dissatisfied with the compensation amount, you must fill out Form N within 6 weeks, and the court will address the concerns.

Recent Post

ADMIRALTY IN REM – WRONGFUL ARREST – POSSESORY RIGHT – ARREST GONE WRONG: WHEN A SHIP ARREST BACKFIRES WITH DAMAGES

In Eletson Holdings Inc & Ors v The Vessel “Paros” [2026] 8 MLJ 80, the High Court set aside an arrest after finding that the plaintiffs had no proprietary or possessory right to the vessel at the time of the writ, as the bareboat charter had already been terminated. The Court held that the claim was in substance a corporate control dispute dressed up as an admiralty action, and emphasised that such disputes do not fall within admiralty jurisdiction. Critically, the plaintiffs’ failure to disclose the termination of the charter when obtaining the arrest warrant amounted to a serious breach, leading the Court to find mala fides or gross negligence and order damages for wrongful arrest. The decision reinforces that ship arrest is a powerful remedy that must be exercised with full disclosure and a proper maritime foundation.

Read More »

GUARANTEE – PERSONAL GUARANTEE ≠ PAY ON DEMAND: COURT DRAWS THE LINE BETWEEN SURETYSHIP AND DEMAND GUARANTEES

In CE Energy DMCC v Bashar [2026] Lloyds’s Rep 267, the Commercial Court clarified that not all guarantees labelled “on demand” will be treated as demand guarantees. On a proper construction, the court held that the personal guarantee in question was a contract of suretyship, requiring proof of the principal debtor’s liability rather than automatic payment upon demand. Crucially, the court found that the debtor’s “irrevocable” admissions of debt in a payment agreement created a binding contractual estoppel, which the guarantor could not challenge. The decision also confirms that, where payment is due on a “day certain”, a seller may still claim the price notwithstanding retention of title. The case underscores the importance of precise drafting and the risks of entering into settlement agreements that conclusively fix liability.

Read More »

MARITIME NEGLIGENCE – PLAINTIFF CLAIMED FOR DAMAGES CAUSED DURING ANCHOR DEPLOYMENT OPERATION – CALDERBANK OFFERS

In Tom Eastwind 365 Sdn Bhd v The Owners of the Vessel “Icon Sophia” [2025] 9 MLJ 397, the High Court held that the doctrine of res ipsa loquitur applied in a maritime collision during an anchor deployment operation, allowing an inference of negligence against the tug owner. The Court clarified that the doctrine is not defeated merely because the defendant adduces evidence explaining the accident – such evidence goes to rebutting the inference, not preventing it. While liability was established due to the tug master’s error of judgment in manoeuvring too close to a stationary barge, the plaintiff failed to properly prove its damages and was awarded only RM50,000. Notably, despite succeeding on liability, the plaintiff was ordered to pay costs after rejecting reasonable Calderbank offers, underscoring the risks of pursuing litigation without properly substantiated claims.

Read More »

JURISDICTION – BILLS OF LADING – BREACH OF HIMALAYA CLAUSE – BREACH OF EXCLUSIVE JURISDICTION CLAUSE – ONEROUS OR UNUSUAL TERMS

In Maersk Guinéa-Bissau SARL v Almar-Hum Bubacar Baldé SARL [2026] 1 Lloyd’s Rep 215, the English Commercial Court held that a shipper was liable for breach of an exclusive jurisdiction clause and a Himalaya clause after commencing proceedings in Guinea-Bissau instead of England. The Court confirmed that such clauses are standard and enforceable, and that commencing foreign proceedings in breach of them can give rise to a claim for damages. Notably, the Court also recognised that Himalaya clauses may be used offensively, allowing subcontractors to recover losses caused by wrongful litigation. The foreign judgment was not recognised due to lack of jurisdiction and denial of natural justice.

Read More »

DELIVERY WITHOUT PRESENTATION OF BILL OF LADING – LOI WON’T SAVE YOU: SHIPOWNER LIABLE FOR MISDELIVERY DESPITE INDEMNITY

In United Overseas Bank Ltd v The “Maersk Katalin” [2026] 1 Lloyd’s Rep 18, the Singapore High Court reaffirmed that delivery of cargo without presentation of original bills of lading remains a fundamental breach, even where carried out against letters of indemnity. The Court held that LOIs merely shift commercial risk but do not authorise misdelivery, and rejected arguments of consent, ratification and causation. Significantly, the Court emphasised that the burden lies on the carrier to prove that the loss would have occurred in any event – a burden not easily discharged. The decision underscores the continued strict liability regime in misdelivery cases, particularly where banks as bill holders are involved.

Read More »

CONTRACT LAW – ‘UK COURTS’ MEANS ENGLAND: COURT UPHOLDS JURISDICTION DESPITE VAGUE CLAUSE

In SMT Global Logistics Ltd v Georgian Airlines LLC [2025] Lloyd’s Rep. Plus 89, the Commercial Court held that a clause referring disputes to “the court in accordance with current legislation of the United Kingdom” was a valid jurisdiction clause in favour of the High Court of England and Wales. The Court also confirmed that the Montreal Convention does not apply to pure contractual claims for non-performance, such as repayment and loss of profits. Emphasising a broad and commercially sensible interpretation, the Court enforced the parties’ choice of forum and refused to stay proceedings, reaffirming that jurisdiction clauses will be upheld unless there are overwhelming reasons to depart.

Read More »
zh_TWZH