The Federal Court has dismissed an appeal by 49 apartment owners at the One Tanjong condominium seeking to overturn the rezoning of an adjacent parcel of land in Tanjung Bungah, Penang. The court denied them leave to appeal, ruling that none of the 10 legal questions raised met the threshold under Section 96 of the Courts of Judicature Act 1964.

A three-member panel led by Justice Zabariah Yusof found that the questions did not involve novel constitutional or legal issues of public importance. Justices Ahmad Terrirudin Salleh and Lee Swee Seng also sat on the panel.

As a result, the court ordered the applicants to pay RM30,000 in costs each to the Penang State Planning Committee and its director of urban and country planning, as well as another RM30,000 to developer Lone Pine Residence Sdn Bhd.

The dispute arose after Lone Pine, which acquired the land in 2015, successfully applied in 2021 to rezone it from its original designation as a marina centre to a “general business zone,” enabling plans for serviced apartments and a wellness centre. The approval came with the condition that the land be used solely for retirement and health suites.

The condominium owners challenged the rezoning in court, arguing that the authorities acted without public consultation and failed to prepare a local plan as required under the Town and Country Planning Act 1976 (TCPA). They claimed this deprived them of the legal right to participate in shaping their neighbourhood.

However, the High Court in 2023 dismissed the judicial review, finding no procedural errors in the rezoning process and no legal provision under the TCPA requiring public involvement. The Court of Appeal upheld the decision earlier this year.

Lawyers for the state authorities and developer argued that the process was lawful and within the state’s discretion. The applicants, represented by counsel Azhar Azizan Harun, had sought clarification from the Federal Court on whether the TCPA allows for public input in rezoning decisions.

With this final ruling, the rezoning stands, allowing the development to proceed as planned.