CDA Boerdery (Edms) Bpk en Andere v Nelson Mandela Metropolitan Municipality (526/05) [2007] ZASCA 1; 2007 (4) SA 276 (SCA); 69 SATC 177 (6 February 2007)

CDA Boerdery (Edms) Bpk en Andere v Nelson Mandela Metropolitan Municipality (526/05) [2007] ZASCA 1; 2007 (4) SA 276 (SCA); 69 SATC 177 (6 February 2007)

The majority held that the requirement for Premier's approval under section 82(1)(a) of the Municipal Ordinance was impliedly repealed by the constitutional transition and the enactment of the Local Government Transition Act. The new constitutional order conferred independent status and original powers on municipalities, rendering the old approval requirement incompatible with the enhanced autonomy of local government. The municipality was therefore not obliged to obtain the Premier's approval for rates above two cents in the Rand. The court further found that the rates imposed were not arbitrary or discriminatory, as the municipality provided a rational explanation for the...

Citation
[2007] ZASCA 1
Parties
Appellant: CDA Boerdery (Edms) Bpk; Appellant: Western Areas Property and Resident Association; Respondent: Nelson Mandela Metropolitan Municipality; Respondent: Speaker of the Nelson Mandela Metropolitan Municipality; Respondent: Premier of the Eastern Cape Province; Respondent: MEC for Housing and Local Government for the Eastern Cape; Respondent: Director of Valuations
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
6 February 2007
Case Number
526/05
Procedural Posture
Civil Appeal / Appeal From the South Eastern Cape Local Division
Outcome
Appeal dismissed with costs.
Judges
MPATI, CAMERON, MTHIYANE, CONRADIE, THERON
Legal Topics
Municipal Property Rates, Implied Repeal, Constitutional Transition, Valuation of Property, Premier Approval Requirement
Administrative Law Land and Property Municipal Property Rates Implied Repeal Constitutional Transition Valuation of Property Premier Approval Requirement

Case Brief

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Parties

CDA Boerdery (Edms) Bpk

Appellant

Western Areas Property and Resident Association

Appellant

Nelson Mandela Metropolitan Municipality

Respondent

Speaker of the Nelson Mandela Metropolitan Municipality

Respondent

Premier of the Eastern Cape Province

Respondent

MEC for Housing and Local Government for the Eastern Cape

Respondent

Director of Valuations

Respondent

Procedural Posture

Civil Appeal / Appeal From the South Eastern Cape Local Division

Legal Issues

  1. 1 Whether the municipality was required to obtain the Premier's approval to levy property rates above two cents in the Rand under the Municipal Ordinance after the constitutional transition.
  2. 2 Whether the rating provisions of the Municipal Ordinance were impliedly repealed by the Local Government Transition Act and the Constitution.
  3. 3 Whether the rates imposed by the municipality were arbitrary, discriminatory, or in violation of constitutional provisions.

Ratio Decidendi

The majority held that the requirement for Premier's approval under section 82(1)(a) of the Municipal Ordinance was impliedly repealed by the constitutional transition and the enactment of the Local Government Transition Act. The new constitutional order conferred independent status and original powers on municipalities, rendering the old approval requirement incompatible with the enhanced autonomy of local government. The municipality was therefore not obliged to obtain the Premier's approval for rates above two cents in the Rand. The court further found that the rates imposed were not arbitrary or discriminatory, as the municipality provided a rational explanation for the...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.