South Africa Case Law

Kwadukuza Municipality v Consolidated Aone Trade and Invest 6 (Pty) Ltd [in Liquidation] and Others (1273/2023)

Kwadukuza Municipality v Consolidated Aone Trade and Invest 6 (Pty) Ltd [in Liquidation] and Others (1273/2023) [2025] ZASCA 86 (11 June 2025)

Court

Supreme Court of Appeal

Case number

1273/2023

Judges

Mbatha, Hughes, Baartman, Vally, Molitsoane

The SCA held that a municipality may not demand historical municipal debts beyond section 118(1)’s two-year period as a condition for a rates clearance certificate.

• Municipal Rates Clearance
• Payment Under Protest
• Prescription Act
• Refund Of Overpayment
• Liquidation Proceedings
• Municipal-rates-clearance

Langlaagte Truck and Car CC v Ethekwini Municipality (9219/2023P)

Langlaagte Truck and Car CC v Ethekwini Municipality (9219/2023P) [2024] ZAKZPHC 94 (31 October 2024)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

9219/2023P

Judge

Poyo Dlwati

The court held that the conditions of sale were clear and unambiguous, imposing liability on the purchaser for all municipal debts and taxes owed in respect of the property, including historic debt. The applicant, by accepting the conditions of sale, assumed the obligations of the judgment debtor regarding municipal arrears. The municipality was entitled to demand payment of historic debt before issuing a rates clearance certificate, and the applicant's payment under protest did not alter its contractual liability. The application for recovery of the historic debt paid was dismissed, as the a…

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• Municipal Rates Clearance
• Historical Municipal Debt
• Sale In Execution
• Contractual Liability
• Section 118 Municipal Systems Act

Moatshi v City of Tshwane Metropolitan Municipality (45183/2018)

Moatshi v City of Tshwane Metropolitan Municipality (45183/2018) [2024] ZAGPPHC 331 (11 April 2024)

Court

North Gauteng High Court, Pretoria

Case number

45183/2018

Judge

Collis

The court held that section 118(1) of the Local Government: Municipal Systems Act does not permit a municipality to include interest on arrears in the amount required for the issuance of a rates clearance certificate. The statutory language lists only municipal service fees, surcharges, rates, taxes, levies, and duties, and does not mention interest. The legislature could have expressly included interest but did not do so, and the court is prohibited from reading interest into the section. Interest may only be charged when a demand has been made, services have been rendered and utilised, and…

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• Municipal Rates Clearance
• Interest On Arrears
• Local Government Powers
• Statutory Interpretation
• Constitutional Property Rights

Seleka and Another v City Of Johannesburg Metropolitan Municipality and Another (20026/2019)

Seleka and Another v City Of Johannesburg Metropolitan Municipality and Another (20026/2019) [2023] ZAGPJHC 998 (31 August 2023)

Court

South Gauteng High Court, Johannesburg

Case number

20026/2019

Judge

Noko

The court found that both parties failed to comply strictly with procedural rules regarding late filing, but in the interests of fairness and given the applicants' circumstances, condonation was granted for both the answering and replying affidavits. On the merits, the applicants were not registered owners and thus not entitled to rebates or discounts under the Property Rates Policy. The respondent's conduct did not infringe the applicants' constitutional property rights, as their rights were contingent on the sale agreement and not yet realized. The respondent complied with section 118(3) of…

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• Municipal Rates Clearance
• Section 118 Municipal Systems Act
• Property Transfer
• Rebates For Pensioners
• Condonation Of Late Filing
• Constitutional Property Rights

Akasia Road Surfacing (Pty) Ltd and Others v City of Tshwane Metropolitan Municipality (B39161/2022)

Akasia Road Surfacing (Pty) Ltd and Others v City of Tshwane Metropolitan Municipality (B39161/2022) [2023] ZAGPPHC 668 (10 August 2023)

Court

North Gauteng High Court, Pretoria

Case number

B39161/2022

Judge

Phooko

The Court found that the disputed debt of R2 454 297.91 originated from February/March 2014 and is therefore older than two years preceding the date of application for clearance figures. Section 118(1) of the Municipal Systems Act expressly limits the amount payable for a clearance certificate to debts incurred within the two years prior to the application. The Respondent's inclusion of historical debt in the clearance figures was unlawful, and its refusal to issue the clearance certificate constituted impermissible self-help. The Court held that the Respondent must exclude the historical deb…

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• Municipal Rates Clearance
• Historical Debt Exclusion
• Section 118 Systems Act
• Declaratory Relief
• Credit Control And Debt Collection

Malki's Investment Trust v Hashi and Others

Malki's Investment Trust v Hashi and Others [2023] ZAGPPHC 270; 27673/2022 (6 April 2023)

Court

North Gauteng High Court, Pretoria

Case number

27673/2022

Judge

NN Bam

The High Court dismissed an application for leave to appeal against an eviction order, finding no reasonable prospects of success and no special circumstances.

• Leave To Appeal
• Eviction
• Title Deed Challenge
• Municipal Rates Clearance
• Special Circumstances
• Leave-to-appeal

Mashau v Sheriff Halfway House Midrand (2826/21)

Mashau v Sheriff Halfway House Midrand (2826/21) [2022] ZAGPPHC 959 (29 November 2022)

Court

North Gauteng High Court, Pretoria

Case number

2826/21

Judge

Tlhapi

The court found that the applicant failed to make out a case for rescission of the judgment either under common law or Rule 31(2)(b). The applicant did not file a replying affidavit, leaving the respondent's version unchallenged. The applicant's compliance with the Deed of Sale was not sufficient to overcome the requirements for transfer, as the registrar of deeds requires a valid municipal clearance certificate. The delay in transfer was attributed to the national lockdown, but the applicant was still required to pay outstanding municipal rates as per the Deed of Sale. The court held that se…

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• Rescission Of Judgment
• Sale In Execution
• Municipal Rates Clearance
• Service Of Process
• Default Judgment

Eagle Valley Properties 250 CC v Fourie N.O. and Another (6220/2011)

Eagle Valley Properties 250 CC v Fourie N.O. and Another (6220/2011) [2022] ZAGPJHC 239 (19 April 2022)

Court

South Gauteng High Court, Johannesburg

Case number

6220/2011

Judge

Twala

The High Court dismissed a claim for refund of R550,000 paid toward transfer of property, finding no cause of action against the respondents and non-joinder of the City fatal.

• Purchase And Sale Agreement
• Contractual Interpretation
• Privity Of Contract
• Joinder Of Parties
• Municipal Rates Clearance
• Contractual-interpretation

Sienaert Prop CC v City of Johannesburg and Another (31566/2021)

Sienaert Prop CC v City of Johannesburg and Another (31566/2021) [2021] ZAGPJHC 717 (22 November 2021)

Court

South Gauteng High Court, Johannesburg

Case number

31566/2021

Judge

E Dippenaar

The High Court held the respondents in contempt for failing to comply with an order to issue a rates clearance certificate excluding electricity charges.

• Civil Contempt
• Mandamus
• Municipal Rates Clearance
• Execution Pending Appeal
• Practice Directives Non Compliance
• Civil-contempt

JFM v Mogale City Local Municipality (30195/2020)

JFM v Mogale City Local Municipality (30195/2020) [2021] ZAGPJHC 570 (15 October 2021)

Court

South Gauteng High Court, Johannesburg

Case number

30195/2020

Judge

Senyatsi ML

The court held that the respondent is not entitled to demand payment of municipal debts older than two years for the purposes of issuing a clearance certificate under section 118(1) of the Local Government Municipal Systems Act. The statutory scheme creates a clear embargo: only debts incurred in the two years preceding the application for the certificate are relevant for clearance. The respondent's reliance on a prior settlement agreement and court order does not override the statutory limitation. The applicant complied with the requirements for administrative review, and the respondent's pr…

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• Municipal Rates Clearance
• Section 118 Local Government Municipal Systems Act
• Administrative Review Under Paja
• Historical Debt Limitation
• Property Transfer Requirements