Moatshi v City of Tshwane Metropolitan Municipality (45183/2018) [2024] ZAGPPHC 331 (11 April 2024)

Moatshi v City of Tshwane Metropolitan Municipality (45183/2018) [2024] ZAGPPHC 331 (11 April 2024)

The court held that section 118(1) of the Local Government: Municipal Systems Act does not permit a municipality to include interest on arrears in the amount required for the issuance of a rates clearance certificate. The statutory language lists only municipal service fees, surcharges, rates, taxes, levies, and duties, and does not mention interest. The legislature could have expressly included interest but did not do so, and the court is prohibited from reading interest into the section. Interest may only be charged when a demand has been made, services have been rendered and utilised, and the consumer is in default, subject to procedural compliance with sections 75A and 97 of the Act....

Citation
[2024] ZAGPPHC 331
Parties
Plaintiff: Tshiamo Tshepiso Moatshi; Defendant: City of Tshwane Metropolitan Municipality
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
11 April 2024
Case Number
45183/2018
Procedural Posture
Civil Trial / Preliminary Point Separated Under Rule 33(4); Declaratory Order on Interpretation of Section 118(1) of the Local Government: Municipal Systems Act
Judges
Collis
Legal Topics
Municipal Rates Clearance, Interest on Arrears, Local Government Powers, Statutory Interpretation, Constitutional Property Rights
Administrative Law Land and Property Municipal Rates Clearance Interest on Arrears Local Government Powers Statutory Interpretation Constitutional Property Rights

Case Brief

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Parties

Tshiamo Tshepiso Moatshi

Plaintiff

City of Tshwane Metropolitan Municipality

Defendant

Procedural Posture

Civil Trial / Preliminary Point Separated Under Rule 33(4); Declaratory Order on Interpretation of Section 118(1) of the Local Government: Municipal Systems Act

Legal Issues

  1. 1 Whether section 118(1)(b) of the Local Government: Municipal Systems Act permits a municipality to include interest on arrears in the amount required for a rates clearance certificate.
  2. 2 If interest is permitted, how should it be calculated and who is liable for payment.

Ratio Decidendi

The court held that section 118(1) of the Local Government: Municipal Systems Act does not permit a municipality to include interest on arrears in the amount required for the issuance of a rates clearance certificate. The statutory language lists only municipal service fees, surcharges, rates, taxes, levies, and duties, and does not mention interest. The legislature could have expressly included interest but did not do so, and the court is prohibited from reading interest into the section. Interest may only be charged when a demand has been made, services have been rendered and utilised, and the consumer is in default, subject to procedural compliance with sections 75A and 97 of the Act....