deposit for lodgement of Form N be refunded to WCESB. [21] This court will now consider the objections raised by WCESB. Market Value of the Scheduled Land [22] In determining the amount of adequate compensation, section 2 of the First Schedule to the LAA is crucial in the assessment of compensation arising out from a compulsory acquisition. [23] The Court of Appeal in JH Capital Services Sdn Bhd v. Pentadbir Tanah Daerah Petaling [2020] 4 MLJ 1 highlighted the need to consider paragraph 2 of the First Schedule to the LAA in making an assessment on amount of compensation as reproduced below: current market value based on the comparable transactions was considered and accepted by the Judge. The learned Judge did aware S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, and had considered about the proposed future development of the said [24] The Federal Court in Ng Tiou Hong v. Collector of Land Revenue Gombak [1984] 2 MLJ 35, explained the main principles in determining the market value as follows: However the Courts have adopted the principle of valuing the scheduled land as a whole especially in cases where the area is large and owned by numerous individual owners in different portions. In Chuah Say Hai & Ors v. Collector of Land Revenue, Kuala Lumpur [1967] 2 MLJ 99 Gill-affirmed by their Lordships of the Privy Council in Collector of Land Revenue v. Alagappa Chettiar [1971] 1 MLJ 43 46 which held that under the Land Acquisition Act, 1960 the scheduled lands are to be valued as a whole. The learned judge in that case valued the whole of the 23 acres as a single unit even though the totality of the land acquired were held by the applicants in seven separate titles for areas varying between approximately 11 acres and just under half-acre. He was right in law in doing so. There are of course other principles that have to be applied according to the facts and circumstances of a particular case along the lines provided by the First Schedule to the Act and as decided from time to time by the courts. We consider the following as the main principles: First, market value means the compensation that must be determined by reference to the price which a willing vendor might reasonably expect to obtain from a willing purchaser. The elements of unwillingness or sentimental value on the part of the vendor to part with the land and the urgent necessity of the purchaser to buy have to be disregarded and cannot be made a S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, basis for increasing the market value. It must be treated on the willingness of both the vendor to sell and the purchaser to buy at the market price without any element of compulsion. Secondly, the market price can be measured by a consideration of the prices of sales of similar lands in the neighbourhood or locality and of similar quality and positions. Thirdly, its potentialities must be taken into account. The nature of the land and the use to which it is being put at the time of acquisition have to be taken into account together with the likelihood to which it is reasonably capable of being put to use in the future e.g. the possibility of it being used for building or other developments. Fourthly, in considering the nature of the land regard must be given as to whether its locality is within or near a developed area, its distance to or from a town, availability of access road to and within it or presence of a road reserve indicating a likelihood of access to be constructed in the near future, expenses that would likely be incurred in levelling the surface and the like. Fifthly, estimates of value by experts are undoubtedly some evidence but too much weight should not be given unless it is supported by, or coincides with, other evidence. [Superintendent of Lands and Surveys, Sarawak v. Aik Hoe & Co Ltd [1966] 1 MLJ 243, Vyricherla Narayana Gajapatiraju v. The Revenue Divisional Officer, Vizagapatam [1939] AC 302 312, and Nanyang Manufacturing Co v. Collector of Land Revenue Johore [1954] MLJ 69]. The safest guide is evidence of sales of similar lands of similar quality or position in the locality at or prior to the time of acquisition. The prices paid for such sales can be used as [25] In determining market value of the Land as stated in paragraph 2(a) of the First Schedule, the land administrator and the Court must give consideration to the profit value of the land at the time of acquisition. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, In addition, paragraph 1(1A) of the First Schedule allows flexibility when assessing market value, and it reads: may use any suitable method of valuation to arrive at the market value provided that regard may be had to the prices paid for the recent sales of lands with similar characteristics as the scheduled land which are situated within the vicinity of the scheduled land and with particular consideration being given to the last transaction on the scheduled land within two years from the date with reference to which the scheduled [26] In Ng Tiou Hong (supra) the Federal Court stated: position in the locality at or prior to the time of acquisition. The process paid for such sales can be used as comparables subject to making allowances for all the [27] WCESB submitted that both JPPH and CBRE-WTW employed the comparison approach, using comparable properties to assess the market value of the Scheduled Land. In contrast, Sandprops applied the cost approach to evaluate the value of the buildings impacted by the acquisition, along with the associated ancillary costs. Sandprops' valuation did not cover the market value of the Scheduled Land. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, [28] It was further submitted by WCESB that the respondent, the PTD did not provide an explanation for how the market value of the Scheduled Land was determined at RM830 per square metre. According to WCESB, this contravenes well-established legal principles, which require a decision-maker to justify their conclusions. WCESB cited the cases of The State Minerals Management Authority, Sarawak & Ors v Gegah Optima Resources Sdn Bhd [2020] 6 CLJ 279 (Court of Appeal) and Datuk Bandar Kuala Lumpur v Perbadanan Pengurusan Trellises & Ors & Another Appeal [2023] 1 LNS 694. [29] Valuer submitted three (3) comparables, whilst the four (4) comparables. There are 2 common comparables used by both valuers. The valuers for both WCESB and the PTD agree that the Scheduled Land is agricultural land with an industrial category. reports. [30] valuer and [31] Comparable 1 (Lot 2720) was transacted on 29.3.2021. It is categorised as industrial land with industrial condition. This court characteristics are not similar to the Scheduled Land. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, [32] Comparable 2 (PT 155311) was transacted on 31.1.2018. 3 (Lot 2569) was transacted on 16.10.2018. Both Comparable 2 and Comparable 3 are common comparables. These common comparable in the view of this court, are suitable subject to adjustments made. [33] The JPPH or the Two of these comparables, namely Comparable 3 (PT 155311) was transacted on 31.12.2018, and Comparable 4 (Lot 2569), was transacted on 16.10.2018. Comparable 3 and Comparable 4 are common comparables. [34] PT 2724), was transacted on 29.7.2020. Comparable 2 (PT 128702), was transacted on 13.8.2019. Comparable 1 and Comparable 2 are less suitable as there are two common comparables by both valuers. [35] of evidence of agricultural land (for agricultural use) to evaluate the land beneath the transmission line reserve (rentis). This court is of the view the value of the land is lower due to its limited usage potential. [36] In the view of this court, where there are common comparables, the common comparable should be used as a basis to determine the market value as the common comparable is the best comparable. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, Based on the common comparable PT 155311, adjustment were made based on the time factor (+10%), the shape (+20%), the size (-5%) and accessibility (-5%) resulting in a market value of RM780.00 per square metre. [37] For common comparable Lot 2569, adjustments were made to time factor (+10%), location (+10%), accessibility (-5%), size (-5%) and shape (+5%). This resulted in the market value of approximately RM860.00 per square metre. [38] The PTD had awarded the market value at RM830.00 per square metre. Using the common comparable as a basis with adjustments, this court came to the value of RM780.00 and RM860.00 per square metre. Therefore this court is of the view that the PTD s award of RM830.00 per square metre is not excessive and therefore should be maintained. Buildings and Structures [39] Valuer did not award compensation for this as the Scheduled Land is categorized as agricultural land and the use of the building on the Scheduled Land does not comply with the provisions of the National Land Code and involves legal violations. [40] Valuer submitted a claim amounting to RM8,276,000.00 for the building owned by the applicant, citing Article 13 of the S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, Federal Constitution in the valuation report. On the other hand, the any compensation for this Award did not provide compensation for this claim. [41] With regards to this heading of claims, this court made reference to the title document of the Scheduled Land, where the land use [42] Subsection 115(1)(a) of the National Land Code 1965 provides land of agricultural category cannot have buildings erected on it except for purposes provided under subsection 115(4) of the National Land Code 1965. Subsection 115(4) of the National Land Code 1965 allows the landowner to construct a residence for personal occupation or for workers employed for the agricultural land, subject to a maximum of one-fifth (1/5) of the total land area or two hectares, whichever is lesser. [43] Section 115 of the National Land Code 1965 allows some flexibility for construction on agricultural land, subject to purposes related to agriculture or with prior approval from the State Authority. Moreover, subsection 205(3) of the National Land Code, agricultural land of 2/5 hectare (approximately 1 acre) may only be transferred to one individual. In this case, the transfer of many lots is not provided for under any law. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, [44] Therefore, it is the view of this court that the number of buildings on the Scheduled Land does not comply with the requirements of Section 115 of the National Land Code 1965. Furthermore, the Scheduled Land has been valued as land with industrial potential, and hence the buildings on the Scheduled Land were excluded as this would result in double counting. [45] Therefore, this court did not allow the claim under this heading and the Award is upheld. Severance [46] Valuer proposed severance compensation amounting to RM1,200,408.00. compensation of RM308,013.00. The PTD awarded compensation for severance amounting to RM1,201,591.00. [47] The remaining land will be split into two after the land acquisition, resulting in some area to be unsuitable for development. In the considered view of this court, this will result in a drop in its value after the land acquisition. WCESB filed Borang N as the concession holder (the paying agency), and no objection was raised by the landowner. Therefore, this court is of the view that the s Award is reasonable and should be maintained. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, Incidental Costs and Land Development Costs [48] Valuer did not propose compensation for incidental costs. The valuer representing the Person Interested claimed compensation for relocation costs, real estate agent fees, temporary rental, business disturbance costs, and land development costs. [49] claim factor. [50] The Award granted compensation for land development costs for all parts involved in the acquisition, which included several sub-lots, with a total compensation amount of RM2,644,808. In the hearing notes (Enclosure 2), the Land Administrator provided justification for this compensation by taking into account the condition of the land that had already been developed and the issue of bona fide. [51] As all buildings and structures involved in the Scheduled Land are in contravention of the provisions of the National Land Code for land categorized as agricultural land, this court is of the considered view that no compensation should be awarded for relocation, temporary rental, real estate agent fees, and business disturbance costs. S/N wiClwsk5mE2vVMCobWpfrw BA-15-34-08/2023, BA-15-35-08/2023, BA-15-36-08/2023, BA-15-37-09/2023, BA-15-38-09/2023, BA-15-39-09/2023, BA-15-45-09/2023, BA-15-46-09/2023, BA-15-47-09/2023, BA-15-48-09/2023, [52] Nonetheless, with regard to land development costs, this court finds that the affected areas have undergone development and improvements, and therefore this court is of the considered view the claim for land development costs ought to be allowed. This court Conclusion [53] Based on the foregoing analysis and having considered and applied the First Schedule of the LAA 1960 as well as the applicable principles as established by case law authorities, this court made the following order for BA-15-153-12/2023: