The notice to treat is the first formal step in compulsory acquisition, and the only stage at which the owner has a statutory opportunity to negotiate.
Section 13(1) — the requirement
The Minister shall not acquire land by compulsory process unless he has first caused to be served on each of the owners of the land — or such of them as can, after diligent inquiry, be ascertained — a notice inviting the person to treat with the Minister for the sale or surrender of his interest in the land, on behalf of the State.
Note “each of the owners”. Where land is held by several people, or where there are separate interests such as a lease and a mortgage over the same land, each owner of an interest is entitled to a notice.
Section 13(2) — what you must do, and by when
A person served with a notice to treat shall, not later than two months after service, provide the Minister with particulars of:
- (a) the interest claimed by them in the land;
- (b) the amount for which they are agreeable to sell that interest; and
- (c) the name and address of any other person known to them to have an interest in the land, and the nature of that interest.
Under section 12(1)(a), the Minister may declare the acquisition after the expiration of two months from service. Doing nothing does not delay the acquisition — it simply means you have not stated your interest or your figure, and the process moves on to compensation without your input.
Reply in writing, keep a copy, and keep proof of delivery.
Section 13(3) — the Minister may agree instead
On receipt of the particulars, the Minister may treat with the person for the acquisition of the interest by agreement, and — notwithstanding anything else in the Act — may enter into an agreement for the acquisition.
This is the practical value of replying properly. A well-supported figure, with a valuation and evidence of the interest, opens a negotiated route that avoids the compensation machinery entirely.
Sections 13(4) and (5) — withdrawal, and compensation for it
The Minister may, by written notice, withdraw a notice to treat.
Where the owner of an interest who has provided the section 13(2) particulars suffers loss by reason of the notice to treat having been given and withdrawn, the State is liable to pay compensation — determined by agreement between the owner and the Minister, or, failing agreement, by action in a court of competent jurisdiction.
The right to compensation for a withdrawn notice belongs to a person who has provided the particulars. An owner who ignored the notice, incurred costs in anticipation, and then saw the notice withdrawn has no claim under section 13(5).
Section 13(6) — when the section does not apply
Section 13 does not apply in a case where the Minister certifies that there are special reasons why the Section should not apply.
Where that certificate is given, section 12(1)(c) allows the Minister to declare the acquisition at any time. No notice, no two months, no invitation to negotiate. The Act does not define “special reasons” and does not require them to be published in the certificate.
“Court of competent jurisdiction”
Section 6 defines this for Part III:
- for land other than customary land — the National Court, or a District Court with jurisdiction in debt actions up to at least the value of the land or the compensation claimed, and in the locality where the land is;
- for customary land — the Land Titles Commission.
If you are served with a notice to treat
- Date it. The two months runs from service, not from the date on the notice.
- Identify your interest precisely — lessee, mortgagee, licensee, occupier, customary rights holder.
- Get a valuation before naming a figure.
- Name the other interest holders as paragraph (c) requires — it is a statutory obligation, not a courtesy.
- Keep every receipt and record of expenditure from this point. It may matter for a section 13(5) claim or for assessment of compensation.
- Get advice now, not after the Gazette notice appears.
Sources
- Land Act 1996 — ss 6, 12, 13, 14
- Constitution — s 53
- Minister for Lands v Frame [1980] PGSC 12; [1980] PNGLR 433
Before relying on anything here, read the current text of the Land Act 1996 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.