Strata International (Pty) Ltd and Another v Ekurhuleni Metropolitan Municipality (79/2014) [2015] ZASCA 47 (26 March 2015)

Strata International (Pty) Ltd and Another v Ekurhuleni Metropolitan Municipality (79/2014) [2015] ZASCA 47 (26 March 2015)

The Supreme Court of Appeal held that the resolutions adopted by the municipal committee to dispose of immovable property in response to an unsolicited private bid, without public participation or transparency, were fatally flawed and incapable of giving rise to enforceable rights. The court found that the statutory requirements of section 79(18) of the Local Government Ordinance and section 14(2) of the Municipal Finance Management Act were not complied with, and that the resolutions contravened constitutional imperatives of accountability, responsiveness, and openness. The court rejected the appellants' argument that public law rights arose from the resolutions independently of the...

Citation
[2015] ZASCA 47
Parties
Appellant: Strata International (Pty) Ltd; Appellant: The Garden Estate for Small and Medium Enterprises (Pty) Ltd; Respondent: Ekurhuleni Metropolitan Municipality
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 March 2015
Case Number
79/2014
Procedural Posture
Civil Appeal / Appeal From Gauteng Division, Pretoria
Outcome
Appeal dismissed with costs, including the costs of two counsel.
Judges
Navsa, Leach, Saldulker, Van der Merwe, Meyer
Legal Topics
Alienation of Municipal Property, Public Participation, Municipal Finance Management Act, Local Government Ordinance, Constitutional Accountability
Land and Property Administrative Law Alienation of Municipal Property Public Participation Municipal Finance Management Act Local Government Ordinance Constitutional Accountability

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Strata International (Pty) Ltd

Appellant

The Garden Estate for Small and Medium Enterprises (Pty) Ltd

Appellant

Ekurhuleni Metropolitan Municipality

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division, Pretoria

Legal Issues

  1. 1 Whether resolutions by a municipal committee to dispose of immovable property in response to an unsolicited private bid, without public participation or transparency, give rise to enforceable public law rights.
  2. 2 Whether the municipality's resolutions and subsequent agreement complied with statutory and constitutional requirements for alienation of municipal property.
  3. 3 Whether ex post facto ratification of flawed municipal resolutions is permissible.

Ratio Decidendi

The Supreme Court of Appeal held that the resolutions adopted by the municipal committee to dispose of immovable property in response to an unsolicited private bid, without public participation or transparency, were fatally flawed and incapable of giving rise to enforceable rights. The court found that the statutory requirements of section 79(18) of the Local Government Ordinance and section 14(2) of the Municipal Finance Management Act were not complied with, and that the resolutions contravened constitutional imperatives of accountability, responsiveness, and openness. The court rejected the appellants' argument that public law rights arose from the resolutions independently of the...

Court Disposition

Appeal dismissed with costs, including the costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.