Apex court to hear council’s appeal on raising rates

PUTRAJAYA: The Federal Court will hear whether local councils may raise assessment rates without first entertaining objections by affected residents.

Chief Justice Md Raus Sharif allowed the application by the Hang Tuah Jaya Municipal Council (MPHTJ) in Melaka for leave to appeal against earlier courts’ rulings which nullified a proposed assessment rate hike in July 2015.

The three-person panel, which also includ- ed Federal Court Justices Zainun Ali and Zaharah Ibrahim, unanimously allowed the two questions of law, ruling it was a novel matter.

The first question was whether the municipal council had to give notice and provide sufficient time for affected persons to make an objection before the valuation list was adjusted.

The second question was whether the valuation list proposed by MPHTJ was ultra vires (beyond the legal power) of the Local Government Act 1976, even though it was approved by the state assembly before the end of year deadline required for rate reassessments.

Ayer Keroh assemblyman Khoo Poay Tiong and his wife Lee Wei Cheng had filed the suit against the local council, seeking a court order to declare that the MPHTJ’s move to increase the assessment rate was illegal, null and void. In the originating summons, Khoo said he was one of those affected by the proposed 30% increase.

On Aug 19 last year, the Melaka High Court declared the assessment hike by MPHTJ null and void, after finding the hike did not follow procedures set by the Local Government Act.

Judicial commissioner Mohd Firuz Jaffril ruled that the municipal council could only have the new assessment rates approved by the state assembly after sufficient time had been given to allow residents to voice any objections.

On March 13, the Court of Appeal unanimously affirmed the decision.

MPHTJ is one of four local councils in Melaka.

Lawyer Lambert Rasa-Ratnam represented MPHTJ at the hearing on Thursday, while lawyer Gobind Singh Deo acted for Khoo and his wife.