Real People Housing (Pty) Limited v City of Cape Town (9692/07) [2008] ZAWCHC 65; 2010 (1) SA 411 (C) (21 November 2008)

Real People Housing (Pty) Limited v City of Cape Town (9692/07) [2008] ZAWCHC 65; 2010 (1) SA 411 (C) (21 November 2008)

Section 118(1) of the Municipal Systems Act obliges municipalities to issue a clearance certificate upon payment of all municipal charges due for the two years preceding the application date. The municipality must provide itemised particulars of such charges on request. The respondent's policy of allocating payments to the oldest debt and requiring payment of all arrears, including those older than two years, is inconsistent with the statute and constitutional principles of co-operative governance and efficient public administration. The refusal to issue a clearance certificate for erf 23548 Khayelitsha, despite payment of the two-year charges, is unlawful. The municipality retains the...

Citation
[2008] ZAWCHC 65
Parties
Applicant: Real People Housing (Pty) Limited; Respondent: City of Cape Town
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
21 November 2008
Case Number
9692/07
Procedural Posture
Civil Application / Judgment After Hearing on Notice of Motion
Outcome
Application granted. Declaratory relief and costs awarded to the applicant.
Judges
NJ Yekiso
Legal Topics
Municipal Clearance Certificates, Section 118 Municipal Systems Act, Deprivation of Property, Constitutional Obligations of Municipalities, Allocation of Debt, Public Administration Standards
Administrative Law Land and Property Municipal Clearance Certificates Section 118 Municipal Systems Act Deprivation of Property Constitutional Obligations of Municipalities Allocation of Debt Public Administration Standards

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Parties

Real People Housing (Pty) Limited

Applicant

City of Cape Town

Respondent

Procedural Posture

Civil Application / Judgment After Hearing on Notice of Motion

Legal Issues

  1. 1 Whether the respondent municipality is obliged to furnish the applicant with full and itemised particulars of amounts due for municipal charges for the two years preceding a clearance certificate request.
  2. 2 Whether the municipality is obliged to issue a clearance certificate upon payment of amounts due for the two-year period only, as contemplated by section 118(1) of the Municipal Systems Act.
  3. 3 Whether the respondent's refusal to issue a clearance certificate for erf 23548 Khayelitsha is unlawful.

Ratio Decidendi

Section 118(1) of the Municipal Systems Act obliges municipalities to issue a clearance certificate upon payment of all municipal charges due for the two years preceding the application date. The municipality must provide itemised particulars of such charges on request. The respondent's policy of allocating payments to the oldest debt and requiring payment of all arrears, including those older than two years, is inconsistent with the statute and constitutional principles of co-operative governance and efficient public administration. The refusal to issue a clearance certificate for erf 23548 Khayelitsha, despite payment of the two-year charges, is unlawful. The municipality retains the...

Court Disposition

Application granted. Declaratory relief and costs awarded to the applicant.

Orders

  • The respondent is obliged, upon request, to furnish the applicant with full itemised particulars of amounts due for municipal charges for the two years preceding the request for any property owned by the applicant.
  • The respondent is obliged, upon receipt of payment of such sum tendered specifically for discharging that indebtedness, to issue the applicant a clearance certificate as contemplated by section 118(1) of the Local Government: Municipal Systems Act, 32 of 2000.