Malaysia legislation

Section 21

of Land Acquisition Ordinance Cap 69 Vol I

Section 21

Subject to the provisions of this Ordinance the following rules shall apply to the assessment and award of compensation by a Judge for the compulsory acquisition of land ―

(a)

the value of the land shall, subject as hereinafter provided, be taken to be the amount which the land, in its condition at the time of acquisition, if sold in the open market by a willing seller, might have been expected to have realised at a date twelve months prior to the date of the second publication in the Gazette of the declaration under section 3 or of the direction under section 5, whichever is the earlier:

Provided that this rule shall not affect the assessment of compensation for the damage sustained by the person interested by reason of severance, or by reason of the acquisition injuriously affecting his other property or his earnings, or for disturbance, or any other matter not directly based on the value of the land:

And provided further that the fact that the land is held under Part IV of the Land Ordinance

[Cap. 68.] or any other written law in the State relating to native land tenure shall be disregarded in determining the value of the land;

(b)

the special suitability or adaptability of the land for any purpose shall not be taken into account if that purpose is a purpose to which the land could be applied only in pursuance of statutory powers not already granted, or for which there is no market apart from the special needs of a particular purchaser or the requirements of any Government department;

(c)

where the value of the land is increased by reason of the use thereof or of any premises thereon in a manner which could be restrained by any court, or is contrary to law, or is detrimental to the health of the inmates of the premises or to public health, the amount of that increase shall not be taken into account;

(d)

where land is, and but for the compulsory acquisition would continue to be, devoted to a purpose of such a nature that there is no general

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demand or market for land for that purpose, the compensation may, if the

Judge is satisfied that reinstatement in some other place is bona fide intended, be assessed on the basis of the reasonable cost of equivalent reinstatement;

(e)

no allowance shall be made on account of ―

(i)

the acquisition being compulsory or the degree of urgency or necessity which has led to the acquisition;

(ii)

any disinclination of the person interested to part with the land acquired;

(iii)

any damage sustained by the person interested which, if caused by a private person, would not render such person liable to an action;

(iv)

any damage, not being in the nature of deprivation of or interference with an easement, servitude or legal right, which, after the time of awarding compensation, is likely to be caused by or in consequence of the use to which the land acquired will be put:

Provided that nothing herein shall prejudice any claim under this

Ordinance for damage subsequently sustained in consequence of the use to which the land acquired is put;

(v)

any increase to the value of the land acquired likely to accrue from the use to which the land acquired will be put;

(vi)

any outlay or improvement of such land which shall have been made, commenced or effected within twelve months before the publication of the declaration under section 3, unless it be proved that the improvement was made bona fide and not in contemplation of proceedings for the acquisition of the land being taken by compulsory acquisition.

Special rule as to severance.

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