Tenaga Nasional Berhad (TNB) Majlis Bandaraya Melaka Bersejarah (MBMB)

Tenaga Nasional Berhad (TNB) Majlis Bandaraya Melaka Bersejarah (MBMB)

The Court held that the Notices complied with s.137 LGA 1976 and dismissed TNB's appeals; however the High Court erred in construing 'owner' of a holding in Melaka as limited to the registered landowner — under LGA 1976 (Penang and Melaka special definition) 'holding' includes buildings (pylons) and the owner of those non-land holdings (e.g. TNB as owner/operator of pylons) is liable for rates, so the four local authorities' appeals are allowed.

Citation
M-01(A)-128-02/2024 (Mahkamah Rayuan)
Parties
Pemohon/perayu: Tenaga Nasional Berhad; Responden: Majlis Bandaraya Melaka Bersejarah; Responden: Majlis Perbandaran Alor Gajah; Responden: Majlis Perbandaran Jasin; Responden: Majlis Perbandaran Hang Tuah Jaya
Court
A
Jurisdiction
Malaysia
Judgment Date
27 November 2024
Case Number
M-01(A)-128-02/2024 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (judicial Review) / Court of Appeal Judgment on Consolidated Appeals Arising From High Court Judicial Review Decisions
Outcome
Three appeals by Tenaga Nasional Berhad dismissed; four appeals by the local authorities allowed; High Court decision altered on owner-liability point in favour of local authorities.
Legal Topics
Rates and Valuation, Validity of Valuation Notices Under S.137 LGA 1976, Interpretation of 'holding' and 'owner' in LGA 1976, Liability for Payment of Rates for Pylons/transmission Structures
Source Language
Malay/English
Local Government Law Administrative Law Property Law Statutory Interpretation Rates and Valuation Validity of Valuation Notices Under S.137 LGA 1976 Interpretation of 'holding' and 'owner' in LGA 1976 Liability for Payment of Rates for Pylons/transmission Structures

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Parties

Tenaga Nasional Berhad

Pemohon/perayu

Majlis Bandaraya Melaka Bersejarah

Responden

Majlis Perbandaran Alor Gajah

Responden

Majlis Perbandaran Jasin

Responden

Majlis Perbandaran Hang Tuah Jaya

Responden

Procedural Posture

Civil Appeal (judicial Review) / Court of Appeal Judgment on Consolidated Appeals Arising From High Court Judicial Review Decisions

Legal Issues

  1. 1 Whether valuation notices complied with section 137 LGA 1976
  2. 2 Whether Tenaga Nasional Berhad (TNB) is the 'owner of the holding' liable for rates on pylons situated on land not owned by TNB in Melaka
  3. 3 Proper statutory interpretation of 'holding' and 'owner' in Part XV of the LGA 1976

Ratio Decidendi

The Court held that the Notices complied with s.137 LGA 1976 and dismissed TNB's appeals; however the High Court erred in construing 'owner' of a holding in Melaka as limited to the registered landowner — under LGA 1976 (Penang and Melaka special definition) 'holding' includes buildings (pylons) and the owner of those non-land holdings (e.g. TNB as owner/operator of pylons) is liable for rates, so the four local authorities' appeals are allowed.

Court Disposition

Three appeals by Tenaga Nasional Berhad dismissed; four appeals by the local authorities allowed; High Court decision altered on owner-liability point in favour of local authorities.

Orders

  • High Court decision affirmed in part and set aside in part as stated in disposition
  • TNB to pay costs of RM10,000 to the local authorities in respect of each of the seven appeals, subject to allocatur