Cosmo Retail Park (Pty) Ltd v City of Tshwane Metropolitan Municipality (95508/2015) [2018] ZAGPPHC 61 (12 February 2018)

Cosmo Retail Park (Pty) Ltd v City of Tshwane Metropolitan Municipality (95508/2015) [2018] ZAGPPHC 61 (12 February 2018)

The court held that the applicant failed to prove that the payment of R350,000.00 constituted full and final settlement of the property rates debt. The relevant municipal by-law requires written consent from the treasurer or an authorised delegate for acceptance of a lesser amount in full and final settlement. The applicant did not provide evidence of such written consent, nor did it prove that the cashier was an authorised delegate. The court rejected the applicant's argument regarding ostensible authority, finding that the clear wording of the by-law cannot be circumvented. Consequently, the applicant did not discharge the onus required for declaratory relief, and the application was...

Citation
[2018] ZAGPPHC 61
Parties
Applicant: Cosmo Retail Park (Pty) Ltd; Respondent: City of Tshwane Metropolitan Municipality
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
12 February 2018
Case Number
95508/2015
Procedural Posture
Declaratory Application / Final Judgment
Outcome
Application dismissed with costs.
Judges
Ranchod
Legal Topics
Municipal Property Rates, Declaratory Relief, Credit Control by Laws, Full and Final Settlement
Land and Property Civil Procedure Municipal Property Rates Declaratory Relief Credit Control by Laws Full and Final Settlement

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Parties

Cosmo Retail Park (Pty) Ltd

Applicant

City of Tshwane Metropolitan Municipality

Respondent

Procedural Posture

Declaratory Application / Final Judgment

Legal Issues

  1. 1 Whether payment of R350,000.00 by the applicant in full and final settlement extinguished the respondent's claim for property rates prior to May 2011.
  2. 2 Whether the respondent's cashier had authority to accept the payment in full and final settlement under the relevant by-laws.
  3. 3 Whether the applicant is entitled to a declaratory order that it is not indebted to the respondent for property rates prior to May 2011.

Ratio Decidendi

The court held that the applicant failed to prove that the payment of R350,000.00 constituted full and final settlement of the property rates debt. The relevant municipal by-law requires written consent from the treasurer or an authorised delegate for acceptance of a lesser amount in full and final settlement. The applicant did not provide evidence of such written consent, nor did it prove that the cashier was an authorised delegate. The court rejected the applicant's argument regarding ostensible authority, finding that the clear wording of the by-law cannot be circumvented. Consequently, the applicant did not discharge the onus required for declaratory relief, and the application was...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed.
  • The applicant is ordered to pay the respondent's costs.