South Africa Case Law

Majiedt NO and Another v Mangaung Metropolitan Municipality and Others (6418/2024)

Majiedt NO and Another v Mangaung Metropolitan Municipality and Others (6418/2024) [2025] ZAFSHC 219 (18 July 2025)

Court

Free State High Court, Bloemfontein

Case number

6418/2024

Judge

Daniso

The court found that the municipality unlawfully included arrears older than two years in the clearance figures, contrary to section 118(1)(b) of the Municipal Systems Act. The municipality failed to provide a transparent, itemised breakdown of the amounts due and included charges from a different account number without explanation. The court held that only debts accrued in the two years preceding the application may be demanded for clearance purposes, and that the municipality must provide full particulars limited to this period. The municipality's counter-application for payment of outstand…

Source excerpt

• Municipal Clearance Certificate
• Liquidation Procedure
• Rates And Taxes
• Creditors Meeting
• Section 118 Municipal Systems Act
• Proof Of Claim

AJ Murphy Flowers (Pty) Ltd v Mogale City Local Municipality (2024/054911)

AJ Murphy Flowers (Pty) Ltd v Mogale City Local Municipality (2024/054911) [2024] ZAGPJHC 549 (10 June 2024)

Court

South Gauteng High Court, Johannesburg

Case number

2024/054911

Judge

NH Maenetje

Urgent interim interdict granted to stop Mogale City from disconnecting water and electricity pending disputes over rates, taxes and valuation.

• Interim Interdict
• Municipal Services Disconnection
• Credit Control Measures
• Property Valuation Dispute
• Rates And Taxes
• Urgency In Application

Baladkis N.O and Others v Jenzen and Another (8334/2021)

Baladkis N.O and Others v Jenzen and Another (8334/2021) [2022] ZAGPJHC 453 (4 July 2022)

Court

South Gauteng High Court, Johannesburg

Case number

8334/2021

Judge

M A Makume

The court found that the applicants, as innocent purchasers, cannot be held liable for historical municipal debts incurred by the seller. The municipality's reliance on the fraudulent clearance certificate to refuse opening a municipal account is misplaced, as the applicants complied with the sale agreement and the transfer was effected. The municipality failed to take action against the seller or investigate the fraud, and its attempt to recover the debt from the applicants is contrary to constitutional principles. The transfer of ownership stands, and the municipality is ordered to open a m…

Source excerpt

• Municipal Clearance Certificate
• Fraudulent Documentation
• Specific Performance
• Rates And Taxes
• Transfer Of Property
• Innocent Third Party Rights

Matjhabeng Local Municipality v McDonald and Others (4075/2020; 4077/2020; 4078/2020)

Matjhabeng Local Municipality v McDonald and Others (4075/2020; 4077/2020; 4078/2020) [2021] ZAFSHC 34; 2021 (5) SA 254 (FB) (19 February 2021)

Court

Free State High Court, Bloemfontein

Case number

4075/2020; 4077/2020; 4078/2020

Judge

Daffue

The court held that the common law principle of bona vacantia remains unchanged by the Constitution or municipal legislation. Upon deregistration of a company, its immovable property does not vest in the municipality but automatically vests in the State. The applicant failed to establish that it acquired ownership or the right to ownership of the properties. The Constitution does not alter the common law in this regard, and the court declined to develop the law as requested, finding that such a fundamental change is the prerogative of the Legislature. The applicant's claims for declaratory re…

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• Bona Vacantia
• Deregistration Of Companies
• Municipal Powers
• Rates And Taxes
• Development Of Common Law
• State Land Ownership

Capstone 359 (Pty) Limited and Others v Spar Group Limited; In re: Spar Group Limited v Capstone 359 (Pty) Limited and Others (A5039/2015, A QUO 41791/2013)

Capstone 359 (Pty) Limited and Others v Spar Group Limited; In re: Spar Group Limited v Capstone 359 (Pty) Limited and Others (A5039/2015, A QUO 41791/2013) [2016] ZAGPJHC 223 (26 August 2016)

Court

South Gauteng High Court, Johannesburg

Case number

A5039/2015, A QUO 41791/2013

Judges

Tsoka, Makume, Wepener

The High Court dismissed an appeal over liability under a sublease for increased municipal rates, holding the subtenant had to reimburse the sublessor.

• Lease Agreement
• Sublease Liability
• Rates And Taxes
• Suretyship
• Quantum Of Claim
• Sublease-liability

Sheriff of the High Court Johannesburg East v Kathrada (7151/08)

Sheriff of the High Court Johannesburg East v Kathrada (7151/08) [2013] ZAGPPHC 89 (2 April 2013)

Court

North Gauteng High Court, Pretoria

Case number

7151/08

Judge

R D Claassen

High Court application to cancel a sale in execution under Rule 46(11) was granted after the respondent failed to act bona fide and delayed transfer.

• Sale In Execution
• Cancellation Of Contract
• Body Corporate Clearance
• Rates And Taxes
• Costs Award
• Sale-in-execution

Eedendrop (Pty) Ltd v Kouga Municipality (1774/2009)

Eedendrop (Pty) Ltd v Kouga Municipality (1774/2009) [2010] ZAECPEHC 36 (22 June 2010)

Court

Eastern Cape High Court, Port Elizabeth

Case number

1774/2009

Judge

Sangoni

The court found that the agreement between the applicant and the respondent was invalid and of no force and effect due to material non-compliance with statutory requirements. Specifically, the parties failed to comply with the mandatory publication and tender procedures set out in sections 172 and 173 of the Municipal Ordinance, which are designed to ensure transparency and fairness in municipal contracting. The formula for repayment to the applicant via a share of rates was incompatible with section 229(1)(a) of the Constitution, which prohibits the allocation of municipal rates to private p…

Source excerpt

• Municipal Contracts
• Invalidity Due To Statutory Noncompliance
• Rates And Taxes
• Land Use Planning
• Procurement Regulation
• Budget Authorisation