Caribbean Estates (Pty) Ltd v Seethal and Others (3361/05) [2007] ZAKZHC 20; 2008 (4) SA 136 (N); (27 September 2007)

Caribbean Estates (Pty) Ltd v Seethal and Others (3361/05) [2007] ZAKZHC 20; 2008 (4) SA 136 (N); (27 September 2007)

The court found that the Municipality's retrospective levying of rates on subdivided properties was unlawful because the statutory condition precedent of 'necessity' under section 159(1)(d) of the Ordinance was not fulfilled. The applicant had already paid rates for the relevant land as part of the parent lot, and the subdivision did not result in any change in zoning or value per square metre. The Municipality's administrative action lacked a rational connection to the facts and reasons provided, and amounted to double charging. The Appeal Board failed to properly exercise its powers by not considering the lawfulness of the retrospective levying. The applicant exhausted all internal...

Citation
[2007] ZAKZHC 20
Parties
Applicant: Caribbean Estates (Pty) Ltd; Respondent: Gregory Larry Seethal N.O.; Respondent: The Valuation Appeal Board, Hibiscus Coast Municipality; Respondent: The Municipal Manager, Hibiscus Coast Municipality; Respondent: The Hibiscus Coast Municipality
Court
High Courts - Kwazulu Natal
Jurisdiction
South Africa
Judgment Date
27 September 2007
Case Number
3361/05
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The retrospective levying and collection of rates by the Municipality on Portions 28 and 36 is set aside as unlawful.
Judges
Kondile
Legal Topics
Retrospective Levying of Rates, Municipal Powers, Valuation Rolls, Promotion of Administrative Justice Act, Internal Remedies, Rates Clearance Certificates
Administrative Law Land and Property Retrospective Levying of Rates Municipal Powers Valuation Rolls Promotion of Administrative Justice Act Internal Remedies Rates Clearance Certificates

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Parties

Caribbean Estates (Pty) Ltd

Applicant

Gregory Larry Seethal N.O.

Respondent

The Valuation Appeal Board, Hibiscus Coast Municipality

Respondent

The Municipal Manager, Hibiscus Coast Municipality

Respondent

The Hibiscus Coast Municipality

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Municipality was lawfully entitled to levy and collect rates retrospectively on subdivided property under section 159(1)(d) of the Local Authorities Ordinance.
  2. 2 Whether the retrospective levying of rates was 'necessary' as required by the Ordinance.
  3. 3 Whether the applicant exhausted internal remedies as required by PAJA before approaching the court.

Ratio Decidendi

The court found that the Municipality's retrospective levying of rates on subdivided properties was unlawful because the statutory condition precedent of 'necessity' under section 159(1)(d) of the Ordinance was not fulfilled. The applicant had already paid rates for the relevant land as part of the parent lot, and the subdivision did not result in any change in zoning or value per square metre. The Municipality's administrative action lacked a rational connection to the facts and reasons provided, and amounted to double charging. The Appeal Board failed to properly exercise its powers by not considering the lawfulness of the retrospective levying. The applicant exhausted all internal...

Court Disposition

Application granted. The retrospective levying and collection of rates by the Municipality on Portions 28 and 36 is set aside as unlawful.

Orders

  • The administrative action of the Fourth Respondent (the Municipality) in levying and collecting rates retrospectively on Portions 28 and 36 is reviewed and set aside.
  • The Municipality is ordered to repay the applicant the amounts paid under protest for the retrospective rates.