Majiedt NO and Another v Mangaung Metropolitan Municipality and Others (6418/2024) [2025] ZAFSHC 219 (18 July 2025)

Majiedt NO and Another v Mangaung Metropolitan Municipality and Others (6418/2024) [2025] ZAFSHC 219 (18 July 2025)

The court found that the municipality unlawfully included arrears older than two years in the clearance figures, contrary to section 118(1)(b) of the Municipal Systems Act. The municipality failed to provide a transparent, itemised breakdown of the amounts due and included charges from a different account number...

Source-derived case information.

Citation
[2025] ZAFSHC 219
Parties
Applicant: Donovan Theodore Majiedt NO; Applicant: Rathogwa Masala Ramuiedzisi NO; Respondent: Mangaung Metropolitan Municipality; Respondent: Municipal Manager: Mangaung Metropolitan Municipality; Respondent: Master of the High Court, Free State, Bloemfontein
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
18 July 2025
Case Number
6418/2024
Procedural Posture
Civil Application / Judgment After Opposed Application and Counter Application
Outcome
Application granted; municipality ordered to provide itemised clearance figures limited to two years and issue clearance certificate upon payment. Counter-application dismissed with costs.
Judges
Daniso
Legal Topics
Municipal Clearance Certificate, Liquidation Procedure, Rates and Taxes, Creditors Meeting, Section 118 Municipal Systems Act, Proof of Claim
Civil Procedure Land and Property Administrative Law Municipal Clearance Certificate Liquidation Procedure Rates and Taxes Creditors Meeting Section 118 Municipal Systems Act +1 more

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Summary, issues, holding and outcome

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Parties

Donovan Theodore Majiedt NO

Applicant

Rathogwa Masala Ramuiedzisi NO

Applicant

Mangaung Metropolitan Municipality

Respondent

Municipal Manager: Mangaung Metropolitan Municipality

Respondent

Master of the High Court, Free State, Bloemfontein

Respondent

Procedural Posture

Civil Application / Judgment After Opposed Application and Counter Application

Legal Issues

  1. 1 Whether the municipality is entitled to demand payment for municipal debts older than two years for the purposes of issuing a clearance certificate.
  2. 2 Whether the municipality must provide a full and itemised breakdown of clearance figures limited to the two-year period preceding the application.
  3. 3 Whether the municipality's counter-application for payment of outstanding rates and taxes is properly made out and competent in terms of the Insolvency Act.

Ratio Decidendi

The court found that the municipality unlawfully included arrears older than two years in the clearance figures, contrary to section 118(1)(b) of the Municipal Systems Act. The municipality failed to provide a transparent, itemised breakdown of the amounts due and included charges from a different account number without explanation. The court held that only debts accrued in the two years preceding the application may be demanded for clearance purposes, and that the municipality must provide full particulars limited to this period. The municipality's counter-application for payment of outstanding rates and taxes was dismissed as it was not properly made out, the claims were not proved at a...

Court Disposition

Application granted; municipality ordered to provide itemised clearance figures limited to two years and issue clearance certificate upon payment. Counter-application dismissed with costs.

Orders

  • The first and second respondents are ordered to provide the applicants’ legal representative with full and itemised particulars of all amounts in respect of municipal service fees, surcharges on fees, property rates and other municipal taxes, levies and duties that became due during the two years preceding the date...
  • The first and second respondents are ordered to provide the applicants’ legal representatives with the clearance figures referred to above within five court days of service of this order.