Limitation Period For The Recovery Of Arrears Of Assessment Rates: Revisiting The Decision In Majlis Perbandaran Pulau Pinang v. Tropiland Sdn Bhd

• Main Authors: Mohd, Elina, Ayub, Zainal Amin, Mohd Anuar, Haslinda
• Format: Article
• Language: English
• Published: The Malaysian Current Law Journal 2018
• Subjects: K Law (General)
• Online Access: https://repo.uum.edu.my/id/eprint/31100/1/CLJ%2003%202018%20i-viii.pdf; https://repo.uum.edu.my/id/eprint/31100/; https://www.cljlaw.com
• Institution: Universiti Utara Malaysia

In Malaysia, the period of limitation to recover any sum recoverable by virtue of any written law other than a penalty or forfeiture or of a sum by way of penalty or forfeiture is governed by the provisions of the Limitation Act 1953 (‘the Act’). The law on limitation of an action to recover any sum recoverable by virtue of any written law, which shall not be brought after the expiration of six years from the date on which the cause of action accrued, has been highlighted in the leading case of Majlis Perbandaran Pulau Pinang v. Tropiland Sdn Bhd (‘Majlis Perbandaran Pulau Pinang’). The principle is that the action to recover the arrears of the assessment rates is not barred by the Act. The same issue had been discussed in a recent case of Majlis Perbandaran Klang v. Sukhinderjit Singh Muker (‘Majlis Perbandaran Klang’). It was held by the court that limitation as such does not apply to any proceedings by the Government for the recovery of any tax. The court in Majlis Perbandaran Klang, defined local authority as ‘Government’ by referring to s. 2 of the Local Government Act 1976 and held that the local authority was not bound by the limitation imposed under s. 6(1)(d). As such, two primary issues arising from these cases are discussed in this paper, namely; first, whether local authority is a “Government” as decided by the court in Majlis Perbandaran Klang; and second, whether limitation to recover arrears of assessment rates no longer apply to local authority