Chiloane v Ephraim Mogale Local Municipality (82462/14) [2018] ZAGPPHC 257 (25 April 2018)

Chiloane v Ephraim Mogale Local Municipality (82462/14) [2018] ZAGPPHC 257 (25 April 2018)

The court found that although a sale agreement appeared to have been concluded between the applicant and the respondent, the Municipal Manager lacked the authority to bind the municipality in the absence of a council resolution as required by section 14(2) of the Municipal Finance Management Act. The sale agreement was therefore concluded ultra vires and was null and void. As the underlying contract was invalid, the settlement agreement purporting to enforce transfer of the property could not be made an order of court. The respondent, not being the owner and lacking council authorisation, could not lawfully transfer the property. The application was dismissed with costs.

Citation
[2018] ZAGPPHC 257
Parties
Applicant: Ephraim Chiloane; Respondent: Ephraim Mogale Local Municipality
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 April 2018
Case Number
82462/14
Procedural Posture
Specific Performance Application / Judgment
Outcome
Application dismissed with costs.
Judges
Sello
Legal Topics
Alienation of Land Act, Municipal Finance Management Act, Specific Performance, Ultra Vires, Invalid Contract, Settlement Agreement Enforcement
Land and Property Civil Procedure Commercial and Corporate Alienation of Land Act Municipal Finance Management Act Specific Performance Ultra Vires Invalid Contract +1 more

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Parties

Ephraim Chiloane

Applicant

Ephraim Mogale Local Municipality

Respondent

Procedural Posture

Specific Performance Application / Judgment

Legal Issues

  1. 1 Whether the sale agreement between the applicant and the respondent complied with the Alienation of Land Act and was valid.
  2. 2 Whether the Municipal Manager had the authority to conclude the sale agreement without a council resolution as required by the Municipal Finance Management Act.
  3. 3 Whether the settlement agreement can be made an order of court and enforced against the respondent.

Ratio Decidendi

The court found that although a sale agreement appeared to have been concluded between the applicant and the respondent, the Municipal Manager lacked the authority to bind the municipality in the absence of a council resolution as required by section 14(2) of the Municipal Finance Management Act. The sale agreement was therefore concluded ultra vires and was null and void. As the underlying contract was invalid, the settlement agreement purporting to enforce transfer of the property could not be made an order of court. The respondent, not being the owner and lacking council authorisation, could not lawfully transfer the property. The application was dismissed with costs.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.