Mohd Zawawi Salleh FCJ:

Introduction

[1] The central issue in this appeal is whether the High Court erred in law in affirming the decision of the respondent, Majlis Daerah Segamat ("MDS") dated 26 April 2017 that the electrical structures/machineries must be considered together with the land and the building in assessing the improved value rate payable by the appellant, Tenaga Nasional Berhad ("TNB") for the four (4) main intake substations (Pencawang Masuk Utama) ("PMUs") located within the respondent's jurisdiction pursuant to Part XI of the Local Government Act 1976 (Act 171) ("LGA 1976").

[2] For the reasons set out in the later part of this judgment, we would allow the appellant's appeal with costs and set aside the decision of the High Court.

Factual Background

[3] The facts giving rise to this appeal may be shortly stated in chronological order as follows-

24 November 2014

The appellant received a notice dated 13 November 2014 from the respondent informing them that the respondent had prepared a new valuation list of the appellant's holdings pursuant to s 141 of the LGA 1976.

Attached to the notice was a list setting out particulars and revised improved value of 211 holdings