Fedbond Participation Mortgage Bond Managers (Pty) Ltd and Another v Steve Tshwete Local Municipality (45407/2011)
Fedbond Participation Mortgage Bond Managers (Pty) Ltd and Another v Steve Tshwete Local Municipality (45407/2011) [2012] ZAGPPHC 49 (30 March 2012)
The court held that the relevant period for calculating municipal rates payable to obtain a clearance certificate in the context of liquidation is the two-year period preceding the application for the certificate, as stipulated in section 118(1) of the Municipal Systems Act. This interpretation is supported by the Supreme Court of Appeal in Kaplan, which clarified that section 118(1) is not overridden by section 89(1) of the Insolvency Act when the former prescribes a shorter period. The court found no logical or justifiable reason to require insolvent entities to pay more than solvent ones f…
Source excerpt
- Municipal Rates Clearance
- Interpretation Of Statutes
- Insolvency Priority
- Local Government Liabilities