Uthukela District Municipality and Others v President of the Republic of South Africa and Others (CCT7/02) [2002] ZACC 11; 2002 (11) BCLR 1220 ; 2003 (1) SA 678 (CC) (12 June 2002)

Uthukela District Municipality and Others v President of the Republic of South Africa and Others (CCT7/02) [2002] ZACC 11; 2002 (11) BCLR 1220 ; 2003 (1) SA 678 (CC) (12 June 2002)

The Constitutional Court held that, due to the repeal of the Division of Revenue Act 1 of 2001 and the settlement reached between the parties, there was no practical effect to be achieved by confirming the High Court's order of invalidity. The Court emphasised the constitutional duty of organs of state to resolve intergovernmental disputes through cooperative government mechanisms before resorting to litigation. The existence of dispute-resolution structures, such as the Local Government Budget Forum under the Intergovernmental Fiscal Relations Act, provided appropriate avenues for resolving fiscal disputes. The Court found that the applicants had not exhausted these remedies and that the...

Citation
[2002] ZACC 11
Parties
Applicant: Uthukela District Municipality; Applicant: Zululand District Municipality; Applicant: Amajuba District Municipality; Respondent: President of the Republic of South Africa; Respondent: Minister of Finance; Respondent: Minister of Provincial and Local Government
Court
Constitutional Court
Jurisdiction
South Africa
Judgment Date
12 June 2002
Case Number
CCT7/02
Procedural Posture
Constitutional Review / Confirmation of High Court Order; Post Settlement
Outcome
No order is made in respect of the confirmation application.
Judges
Du Plessis AJ, Chaskalson CJ, Langa DCJ, Ackermann J, Goldstone J, Kriegler J, Madala J, Ngcobo J, O'Regan J, Sachs J, Skweyiya AJ
Legal Topics
Division of Revenue, Equitable Share, Intergovernmental Dispute, Cooperative Government, Confirmation Proceedings
Constitutional Law Civil Procedure Division of Revenue Equitable Share Intergovernmental Dispute Cooperative Government Confirmation Proceedings

Case Brief

Summary, issues, holding and outcome

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Parties

Uthukela District Municipality

Applicant

Zululand District Municipality

Applicant

Amajuba District Municipality

Applicant

President of the Republic of South Africa

Respondent

Minister of Finance

Respondent

Minister of Provincial and Local Government

Respondent

Procedural Posture

Constitutional Review / Confirmation of High Court Order; Post Settlement

Legal Issues

  1. 1 Whether section 5(1) of the Division of Revenue Act 1 of 2001 is unconstitutional for omitting district municipalities from the equitable share allocation.
  2. 2 Whether the Constitutional Court should confirm the High Court's order of invalidity given the repeal of the 2001 Act and the parties' settlement.
  3. 3 Whether the dispute should be resolved through cooperative government mechanisms rather than litigation.

Ratio Decidendi

The Constitutional Court held that, due to the repeal of the Division of Revenue Act 1 of 2001 and the settlement reached between the parties, there was no practical effect to be achieved by confirming the High Court's order of invalidity. The Court emphasised the constitutional duty of organs of state to resolve intergovernmental disputes through cooperative government mechanisms before resorting to litigation. The existence of dispute-resolution structures, such as the Local Government Budget Forum under the Intergovernmental Fiscal Relations Act, provided appropriate avenues for resolving fiscal disputes. The Court found that the applicants had not exhausted these remedies and that the...

Court Disposition

No order is made in respect of the confirmation application.

Orders

  • No order is made in respect of the confirmation application.