Appeals Court upholds decision against increase in assessment rates

PUTRAJAYA: The Court of Appeal here today upheld a High Court's decision in declaring the increase in assessment rates by the Hang Tuah Jaya Municipal Council (MPHTJ), in Malacca, as null and void.
This followed an appeal by MPHTJ to reverse the decision which was handed down by the Malacca High Court in August last year.
In upholding the High Court's decision, a three-man panel of the Appeals Court, comprising Justices Datuk David Wong Dak Wah, Datuk Abang Iskandar Abang Hashim and Datuk Umi Kalthum Abdul Majid unanimously dismissed the council's appeal with no order as to costs.
The panel of judges earlier heard submissions from lawyers S.M. Shanmugam, representing MPHTJ, and Gobind Singh Deo, who represented DAP's Ayer Keroh Assemblyman Khoo Poay Tiong and his wife Lee Wei Chang, whose home was affected by the 30 percent hike.
Khoo and his wife had filed an originating summons seeking a declaration, among others, that the MPHTJ's decision, via a letter dated Aug 10, 2015 to them on the increase in the assessment rate, was illegal, null and void and against Section 143 of the Local Government Act 1976.
On Aug 19 last year, the Malacca High Court declared the assessment hike by MPHTJ as null and void after finding that the hike did not follow procedures under the Local Government Act.
MPHTJ is one of four local councils in Malacca.
The decision was made by judicial commissioner Mohd Firuz Jaffril who held that the list for the new assessment rates dated Jan 26, 2015, which the council would revise from March 16, 2015 and to be enforced on July 1, 2015, was against Section 143 of the Local Government Act.
The law states that the list must be certified by the local authority with the approval of the state authority on or before Dec 31, 2014.
Outside the court, Gobind told reporters that this case was the first of its kind as there had never been any challenge made on the issue.
He said the appellate court's decision today on the interpretation of Section 143 and how it operated would have an effect on all states which come within the confines of the Local Government Act. — Bernama