Sime Darby Property Bhd said the Shah Alam High Court has set aside a RM78.6 million compensation award relating to severance and injurious affection arising from the compulsory acquisition of land for the West Coast Expressway project.
The property developer said the decision involves its wholly owned subsidiary, Sime Darby Property (Klang) Sdn Bhd (SDP Klang), following a long-running land reference dispute over the compulsory acquisition of seven parcels of land measuring approximately 504,101 square metres.
The land was acquired for the construction of the West Coast Expressway, with the Klang District Land Administrator awarding total compensation of RM169.3 million to SDP Klang on June 26, 2015.
The compensation comprised RM90.7 million for the market value of the acquired land and RM78.6 million for severance and injurious affection, which compensates landowners for losses suffered by the remaining land following a partial acquisition.
However, Lembaga Lebuhraya Malaysia (LLM) challenged the RM78.6 million severance and injurious affection award, filing an objection with the High Court in August 2015.
Following several rounds of court proceedings and appeals, the matter was remitted to the High Court for a fresh hearing, which took place on March 10 and 11 this year.
On July 10, the High Court ruled in favour of LLM by setting aside the severance and injurious affection award. The written grounds of judgment have yet to be released.
The court has fixed July 20, 2026, to hear consequential matters arising from the decision, including the issue of legal costs.
Sime Darby Property said it is currently assessing the financial implications of the ruling, including any amounts that may become payable after the High Court determines the consequential orders.
The group added that, at this stage, the litigation is not expected to have any material operational impact on its business.
The company is also evaluating the High Court’s decision and considering its available legal options. It said further announcements will be made should there be any material developments in the case.
Sime Darby Property shares were halted pending this announcement and resumed after 10 am this morning.
