SEKONDI-TAKORADI METROPOLITAN ASSEMBLY S.T.M.A vs. GHANA WATER COMPANY LIMITED [2021]DLHC11650

Date	2021-10-28
Suit No.	SUIT NO: E12/46/20
Citation No.	[2021]DLHC11650

HIS LORDSHIP JUSTICE DR. RICHMOND OSEI-HWERE J.

SAMUEL AGBOTTAH ESQ. FOR PLAINTIFF

PETER OSEI ASAMOAH ESQ FOR DEFENDANT

[2021]DLHC11650
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													<main id="main" class="content" style="min-height: 60rem" >SEKONDI-TAKORADI METROPOLITAN ASSEMBLY S.T.M.A<o:p></o:p>vs.<o:p></o:p>GHANA WATER COMPANY LIMITED<o:p></o:p>[HIGH COURT, SEKONDI]<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:normal;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">SUIT NO: E12/46/20&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; DATE:
28TH OCTOBER, 2021<o:p></o:p>

</div>COUNSEL<o:p></o:p>SAMUEL
AGBOTTAH ESQ. FOR PLAINTIFF<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

<p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align:
justify;line-height:normal;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">PETER OSEI ASAMOAH ESQ FOR DEFENDANT<o:p></o:p>

</div>CORAM<o:p></o:p>HIS
LORDSHIP JUSTICE DR. RICHMOND OSEI-HWERE J.<o:p></o:p><div style="border-top-width: 1.5pt; border-top-color: windowtext; border-left: none; border-bottom-width: 1.5pt; border-bottom-color: windowtext; border-right: none; padding: 1pt 0cm;">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;border:none;mso-border-top-alt:solid windowtext 1.5pt;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>&nbsp;On
20th May, 2020, the Plaintiff herein caused a writ to be issued out
against the Defendant for the following reliefs:<o:p></o:p>i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Declaration that by virtue of the
Local Governance Act 2016, Act 936 the Defendant Company is NOT exempted from
the payment of property rates to the Plaintiff Assembly.<o:p></o:p>ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An order that the Defendant pays to the
Plaintiff GH¢242,412.16 being the total assessed property rate on the
Defendant’s landed properties within Plaintiff’s jurisdiction for the period
starting 2016 to 2019 which the Defendant has refused to pay, Demand Notices
served on her notwithstanding.<o:p></o:p>iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal costs incidental and any other
relief(s) as may be just.<o:p></o:p>The
facts of the case as can be gleaned from the pleadings are that the Plaintiff
is a Metropolitan Assembly with political and administrative authority over the
Sekondi-Takoradi Metropolitan area. Defendant is a state owned limited
liability company. Defendant owns several properties within the
Sekondi-Takoradi metropolis. In exercise of its powers under the Local
Governance Act, 2016 (Act 936), Plaintiff made demands on Defendant for payment
of property rates in respect of the latter’s properties. Defendant has failed
or refused to pay the said property rates based on its position that it is
exempt by law from payment of taxes and rates. Aggrieved by Defendant’s stance,
Plaintiff has instituted the instant action for the reliefs endorsed on the writ
of summons and statement of claim.<o:p></o:p>It
is the Plaintiff’s case that by the explicit provisions of the Local Governance
Act 2016, (Act 936) and more specifically sections 141 and 146 thereof, the
Plaintiff is statutorily mandated to levy the properties of the Defendant with
the reasons that the Defendant is not and has not been one of the institutions
mentioned as being exempted from the payment of such rates by Section 149 (1)
&amp; (2) of Act 936.<o:p></o:p>According
to the Plaintiff, the Defendant’s refusal to pay the property rate has caused
and continue to cause untold financial hardship to it.<o:p></o:p>Defendant’s
case is that, it is a Company set up under the Ghana Water and Sewerage
Corporation Act 1965, (Act 310) and that Act 310 expressly exempted Defendant from
payment of taxes. That in July 1993, Ghana Water and Sewerage Corporation was
by the Statutory Corporations (Conversion to Companies) Act 1993, (Act 461)
converted into a Limited Liability Company.&nbsp;
Following this conversion, other Metropolitan Assemblies made similar
demands on the Defendant for payment of property rates.&nbsp; According to the Defendant, the then Attorney
General and Minister of Justice by a letter dated 12th June 1996, advised that
the Defendant is exempted from payment of taxes and rates.&nbsp; By another letter dated 1st November 1999,
the Attorney General and Minister of Justice at the time re-affirmed that
position that the Defendant is by law exempted from payment of taxes and other
rates. It is the position of the Defendant that the Local Governance Act 2016,
(Act 936) exempts it from paying rates and therefore contends that the
Plaintiff is not entitled to the reliefs it seeks from the Court.<o:p></o:p>At
the Application for Directions stage, the Court directed lawyers for the
parties to file written addresses in respect of the central legal issue arising
out of the pleadings. The issue is:<o:p></o:p>“WHETHER OR NOT THE
DEFENDANT IS BY LAW, EXEMPT FROM TAXES AND RATES, INCLUDING PROPERTY TAX UNDER
THE LOCAL GOVERNANCE ACT 2016, (ACT 936).”<o:p></o:p>Counsel
for the Defendant has taken to the position that by the combined effect of
Section 16 of the Ghana Water and Sewerage Corporation Act, 1965 (Act 310);
Section 2 of the Statutory Corporations (Conversion to Companies) Act 1993,
(Act 651); the Statutory Corporations (Conversion to Companies) (Scheduled
Amendments) Instrument 1998 (LI 1648); Section 164 (1) of the Local Governance
Act 2016, (Act 936); and Article 295 of the 1992 Constitution, Defendant is in
law exempt from the payment of taxes and rates. Consequently, counsel submits
that Plaintiff’s case against Defendant is without merit.<o:p></o:p>The
Local Governance Act 2016, (Act 936) and its predecessor Local Government Act
1993, (Act 462) gives the Plaintiff the power to levy rates. Section 144 of Act
936 grants Plaintiff the exclusive right to levy rates in its Metropolitan
Assembly. The provision states:<o:p></o:p>“Rating authority <o:p></o:p>144.
A District Assembly shall be the only authority to levy rates for a district
despite any customary law to the contrary.”<o:p></o:p>This
statutory power is not absolute. Section 149(1) of Act 936 creates exemptions</main>