JFM v Mogale City Local Municipality (30195/2020) [2021] ZAGPJHC 570 (15 October 2021)

JFM v Mogale City Local Municipality (30195/2020) [2021] ZAGPJHC 570 (15 October 2021)

The court held that the respondent is not entitled to demand payment of municipal debts older than two years for the purposes of issuing a clearance certificate under section 118(1) of the Local Government Municipal Systems Act. The statutory scheme creates a clear embargo: only debts incurred in the two years preceding the application for the certificate are relevant for clearance. The respondent's reliance on a prior settlement agreement and court order does not override the statutory limitation. The applicant complied with the requirements for administrative review, and the respondent's procedural objections are unfounded. The respondent is ordered to issue a revised schedule and...

Citation
[2021] ZAGPJHC 570
Parties
Applicant: J[....] F[....] M[....]; Respondent: Mogale City Local Municipality
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
15 October 2021
Case Number
30195/2020
Procedural Posture
Review Application / Opposed Motion; Judgment Delivered
Outcome
Application granted; respondent ordered to issue revised clearance figures and certificate limited to two years; costs awarded to applicant.
Judges
Senyatsi ML
Legal Topics
Municipal Rates Clearance, Section 118 Local Government Municipal Systems Act, Administrative Review Under Paja, Historical Debt Limitation, Property Transfer Requirements
Administrative Law Land and Property Civil Procedure Municipal Rates Clearance Section 118 Local Government Municipal Systems Act Administrative Review Under Paja Historical Debt Limitation Property Transfer Requirements

Case Brief

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Parties

J[....] F[....] M[....]

Applicant

Mogale City Local Municipality

Respondent

Procedural Posture

Review Application / Opposed Motion; Judgment Delivered

Legal Issues

  1. 1 Whether the respondent is entitled to issue clearance certificate figures including charges beyond the two-year period imposed by section 118(1) of the Local Government Municipal Systems Act.
  2. 2 Whether the applicant is entitled to a clearance certificate limited to municipal debts incurred in the two years preceding the application.
  3. 3 Whether the respondent's reliance on a prior settlement agreement and court order overrides the statutory limitation in section 118(1).

Ratio Decidendi

The court held that the respondent is not entitled to demand payment of municipal debts older than two years for the purposes of issuing a clearance certificate under section 118(1) of the Local Government Municipal Systems Act. The statutory scheme creates a clear embargo: only debts incurred in the two years preceding the application for the certificate are relevant for clearance. The respondent's reliance on a prior settlement agreement and court order does not override the statutory limitation. The applicant complied with the requirements for administrative review, and the respondent's procedural objections are unfounded. The respondent is ordered to issue a revised schedule and...

Court Disposition

Application granted; respondent ordered to issue revised clearance figures and certificate limited to two years; costs awarded to applicant.

Orders

  • The schedule issued by the respondent to the applicant, Annexure FA8 to the founding affidavit, is reviewed and set aside insofar as it goes beyond the two-year period preceding the application for clearance certificate.
  • The respondent is ordered to issue to the applicant a written statement in terms of section 118(1) of the Local Government Municipal Systems Act 32 of 2000, limited to amounts due for municipal property taxes, levies and duties for the two years preceding the date of application.