South African Local Authorities Pension Fund v Msunduzi Municipality (994/2013) [2015] ZASCA 172; 2016 (4) SA 403 (SCA) (26 November 2015)

South African Local Authorities Pension Fund v Msunduzi Municipality (994/2013) [2015] ZASCA 172; 2016 (4) SA 403 (SCA) (26 November 2015)

The Fund failed to adduce any evidence that the rule amendment increasing employer contributions was validly adopted by its Board of Trustees and approved by the Registrar in accordance with s 12 of the Pension Funds Act. The particulars of claim and annexures did not establish when or how the resolution was adopted, transmitted, or approved. The Fund did not plead or prove condonation for late transmission, nor did it clarify discrepancies in the resolutions and figures. The Municipality was entitled to challenge the validity of the administrative act in these proceedings, and the Fund bore the burden of proving the validity of the amendment. As the Fund did not present a prima facie...

Citation
[2015] ZASCA 172
Parties
Appellant: South African Local Authorities Pension Fund; Respondent: Msunduzi Municipality
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 November 2015
Case Number
994/2013
Procedural Posture
Civil Appeal / Appeal From Kwa Zulu Natal High Court, Pietermaritzburg; Absolution From the Instance Granted at First Instance
Outcome
Appeal dismissed with costs, including costs of two counsel where so employed.
Judges
Lewis, Ponnan, Theron, Willis, Mathopo
Legal Topics
Absolution From the Instance, Pension Fund Rule Amendment, Statutory Compliance, Administrative Act Validity, Collateral Challenge
Civil Procedure Banking and Finance Absolution From the Instance Pension Fund Rule Amendment Statutory Compliance Administrative Act Validity Collateral Challenge

Case Brief

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Parties

South African Local Authorities Pension Fund

Appellant

Msunduzi Municipality

Respondent

Procedural Posture

Civil Appeal / Appeal From Kwa Zulu Natal High Court, Pietermaritzburg; Absolution From the Instance Granted at First Instance

Legal Issues

  1. 1 Whether the Fund proved that the rule amendment increasing employer contributions was validly adopted and approved under s 12 of the Pension Funds Act.
  2. 2 Whether the Registrar's approval of the rule amendment stands until set aside on review.
  3. 3 Whether the Municipality was entitled to challenge the validity of the rule amendment and Registrar's approval in these proceedings.

Ratio Decidendi

The Fund failed to adduce any evidence that the rule amendment increasing employer contributions was validly adopted by its Board of Trustees and approved by the Registrar in accordance with s 12 of the Pension Funds Act. The particulars of claim and annexures did not establish when or how the resolution was adopted, transmitted, or approved. The Fund did not plead or prove condonation for late transmission, nor did it clarify discrepancies in the resolutions and figures. The Municipality was entitled to challenge the validity of the administrative act in these proceedings, and the Fund bore the burden of proving the validity of the amendment. As the Fund did not present a prima facie...

Court Disposition

Appeal dismissed with costs, including costs of two counsel where so employed.

Orders

  • The appeal is dismissed with costs, including those of two counsel where so employed.