Yeoville Bellevue Ratepayer's Association and Another v MEC for the Department of Economic Development Gauteng Provisional Government and Others (07129/2014) [2017] ZAGPJHC 322 (1 November 2017)

Yeoville Bellevue Ratepayer's Association and Another v MEC for the Department of Economic Development Gauteng Provisional Government and Others (07129/2014) [2017] ZAGPJHC 322 (1 November 2017)

The court found that the Gauteng Liquor Regulations on Shebeen Licences were promulgated in direct conflict with the stated purpose of the Gauteng Liquor Act, which requires public notification and participation in the licensing process. The Regulations unlawfully created a new category of licence for shebeens without affording affected residents the opportunity to be heard, thereby depriving them of statutory protections. The MEC acted outside the scope of the empowering statutory provision, rendering the Regulations ultra vires and invalid. The court held that the declaration of invalidity should be suspended for two years to allow the authorities to remedy the defects and promulgate...

Citation
[2017] ZAGPJHC 322
Parties
Applicant: Yeoville Bellevue Ratepayers’ Association; Applicant: Melusi Emmanuel Ncala; Respondent: MEC for the Department of Economic Development Gauteng Provincial Government; Respondent: Chairperson of Gauteng Liquor Board; Respondent: Minister of Trade and Industry; Respondent: Yvonne Nomvuyiseko Ngalo; Respondent: Mmapiti Rina Mabotja; Respondent: Joseph Thulare; Respondent: Ernestine Makoma Rametsi; Respondent: Daniel Shibambo; Respondent: Gladys Keboneng Ngunyane; Respondent: Mxolisi Duma; Respondent: Mosima Eugene Malapane; Respondent: Jabulani Barney Duma; Respondent: Bongani Joshua Mahapa; Respondent: Bajanne Lorna Mashigo; Respondent: Catherine Ntombizodwa Madingwane; Respondent: Shaluza Martha Mabunda; Respondent: Daniel Nakampe Rakgwahla; Respondent: Manase Alfred Rasealoka; Respondent: Arnold Mpulampula; Respondent: Alfred Moloto; Respondent: Concerned Tshwane Liquor Traders Association; Respondent: National Tourism and Hospitality Association
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
1 November 2017
Case Number
07129/2014
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The Gauteng Liquor Regulations on Shebeen Licences are declared ultra vires and invalid, with the declaration of invalidity suspended for two years.
Judges
K E Matojane
Legal Topics
Ultra Vires Regulation, Public Participation, Liquor Licensing, Promotion of Administrative Justice Act
Administrative Law Land and Property Ultra Vires Regulation Public Participation Liquor Licensing Promotion of Administrative Justice Act

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Parties

Yeoville Bellevue Ratepayers’ Association

Applicant

Melusi Emmanuel Ncala

Applicant

MEC for the Department of Economic Development Gauteng Provincial Government

Respondent

Chairperson of Gauteng Liquor Board

Respondent

Minister of Trade and Industry

Respondent

Yvonne Nomvuyiseko Ngalo

Respondent

Mmapiti Rina Mabotja

Respondent

Joseph Thulare

Respondent

Ernestine Makoma Rametsi

Respondent

Daniel Shibambo

Respondent

Gladys Keboneng Ngunyane

Respondent

Mxolisi Duma

Respondent

Mosima Eugene Malapane

Respondent

Jabulani Barney Duma

Respondent

Bongani Joshua Mahapa

Respondent

Bajanne Lorna Mashigo

Respondent

Catherine Ntombizodwa Madingwane

Respondent

Shaluza Martha Mabunda

Respondent

Daniel Nakampe Rakgwahla

Respondent

Manase Alfred Rasealoka

Respondent

Arnold Mpulampula

Respondent

Alfred Moloto

Respondent

Concerned Tshwane Liquor Traders Association

Respondent

National Tourism and Hospitality Association

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Gauteng Liquor Regulations on Shebeen Licences are ultra vires the powers of the MEC under the Gauteng Liquor Act.
  2. 2 Whether the Regulations unlawfully exclude public notification and participation in the licensing process.
  3. 3 Whether the conversion of shebeen permits to licences without public involvement constitutes unlawful administrative action.

Ratio Decidendi

The court found that the Gauteng Liquor Regulations on Shebeen Licences were promulgated in direct conflict with the stated purpose of the Gauteng Liquor Act, which requires public notification and participation in the licensing process. The Regulations unlawfully created a new category of licence for shebeens without affording affected residents the opportunity to be heard, thereby depriving them of statutory protections. The MEC acted outside the scope of the empowering statutory provision, rendering the Regulations ultra vires and invalid. The court held that the declaration of invalidity should be suspended for two years to allow the authorities to remedy the defects and promulgate...

Court Disposition

Application granted. The Gauteng Liquor Regulations on Shebeen Licences are declared ultra vires and invalid, with the declaration of invalidity suspended for two years.

Orders

  • The decision of the MEC to promulgate the Gauteng Liquor Regulations and Shebeen Licences published under Government Notice 586 in Provincial Gazette 56, dated 1 March 2013, is reviewed and set aside.
  • The provisions of the Regulations are declared ultra vires and invalid.