Matjhabeng Local Municipality v Van der Heever (4194/2022) [2025] ZAFSHC 218 (18 July 2025)

Matjhabeng Local Municipality v Van der Heever (4194/2022) [2025] ZAFSHC 218 (18 July 2025)

The court held that the settlement agreement did not constitute a rebate or reduction in property rates as contemplated by section 15 of the Municipal Property Rates Act, but was a lawful debt collection arrangement under the municipality's By-Law. The municipal manager was authorised to accept lesser payments in full and final settlement of arrears. The municipality's reliance on its Credit Control and Debt Collection Policy was procedurally irregular and unsupported by the record. The delay in bringing the review application was unreasonable and prejudicial to the respondent and other parties to the agreement. The municipality's conduct in accepting payments while contesting the...

Citation
[2025] ZAFSHC 218
Parties
Applicant: Matjhabeng Local Municipality; Respondent: Johannes Hermanus Van der Heever
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
18 July 2025
Case Number
4194/2022
Procedural Posture
Review Application / Final Judgment After Opposed Motion
Outcome
Application dismissed with punitive costs against the applicant.
Judges
Opperman, Daffue
Legal Topics
Municipal Debt Collection, Settlement Agreement, Authority of Municipal Manager, Rebate Vs Debt Management, Unreasonable Delay in Review, Pacta Sunt Servanda
Administrative Law Land and Property Civil Procedure Municipal Debt Collection Settlement Agreement Authority of Municipal Manager Rebate Vs Debt Management Unreasonable Delay in Review +1 more

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Parties

Matjhabeng Local Municipality

Applicant

Johannes Hermanus Van der Heever

Respondent

Procedural Posture

Review Application / Final Judgment After Opposed Motion

Legal Issues

  1. 1 Whether the municipal manager had authority to conclude the settlement agreement regarding arrear property rates.
  2. 2 Whether the settlement agreement constituted an unlawful rebate or reduction in rates contrary to the Municipal Property Rates Act.
  3. 3 Whether the delay in bringing the review application was unreasonable and should bar relief.

Ratio Decidendi

The court held that the settlement agreement did not constitute a rebate or reduction in property rates as contemplated by section 15 of the Municipal Property Rates Act, but was a lawful debt collection arrangement under the municipality's By-Law. The municipal manager was authorised to accept lesser payments in full and final settlement of arrears. The municipality's reliance on its Credit Control and Debt Collection Policy was procedurally irregular and unsupported by the record. The delay in bringing the review application was unreasonable and prejudicial to the respondent and other parties to the agreement. The municipality's conduct in accepting payments while contesting the...

Court Disposition

Application dismissed with punitive costs against the applicant.

Orders

  • The application is dismissed.
  • The applicant is ordered to pay the costs of the application on an attorney and client scale, including the costs of two counsel taxed on scale B.