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

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…

Source excerpt

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

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…

Source excerpt

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

Churchill House (Pty) Ltd and Others v City of Tshwane Metropolitan Municipality (32188/2021)

Churchill House (Pty) Ltd and Others v City of Tshwane Metropolitan Municipality (32188/2021) [2022] ZAGPPHC 785 (20 October 2022)

Court

North Gauteng High Court, Pretoria

Case number

32188/2021

Judge

Strijdom

The court held that the respondent is only entitled to claim charges arising under section 118(1) of the Municipal Systems Act for the two years preceding the application for clearance certificates. The respondent's reliance on section 89 of the Insolvency Act to extend the claimable period is incorrect and inconsistent with binding precedent. The applicants' attorneys have proper authority to bring the application, and any challenge to authority should have been made by Rule 7 notice. The respondent's opposition was unfounded, and a punitive costs order is warranted. The respondent is ordere…

Source excerpt

• Municipal Clearance Certificates
• Liquidation Procedure
• Section 118 Municipal Systems Act
• Section 89 Insolvency Act
• Locus Standi
• Costs Orders

Sikunye Holdings (Pty) Ltd v Municipal Manager of Govan Mbeki Local Municipality and Another In re: Sikunye Holdings (Pty) Ltd v Govan Mbeki Local Municipality (959/2022; 3763/2018)

Sikunye Holdings (Pty) Ltd v Municipal Manager of Govan Mbeki Local Municipality and Another In re: Sikunye Holdings (Pty) Ltd v Govan Mbeki Local Municipality (959/2022; 3763/2018) [2022] ZAMPMHC 2 (22 March 2022)

Court

Middelburg High Court, Mpumalanga

Case number

959/2022; 3763/2018

Judge

Langa

The court found that the respondents were aware of the court order and failed to comply with its terms, specifically by calculating rates and charges on individual erven as separate properties rather than on a pro rata basis as required by the Municipal Property Rates Act and the principles set out in City of Tshwane v Uniqon Wonings. The respondents did not appeal the relevant orders and failed to discharge the onus to prove that any non-compliance was not wilful or mala fide. The evidence showed that clearance figures were calculated incorrectly, resulting in excessive charges to the applic…

Source excerpt

• Municipal Property Rates Act
• Contempt Of Court
• Clearance Certificates
• Valuation Of Erven
• Section 118 Municipal Systems Act

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

Sienaert Prop CC v The City of Johannesburg Metropolitan Municipality and Another (2021/31566) [2021] ZAGPJHC 490 (23 September 2021)

Court

South Gauteng High Court, Johannesburg

Case number

2021/31566

Judge

E Weiner

The court found that the respondents were in contempt of the Kollapen J order, as they failed to comply with its terms and did not raise a genuine dispute of fact regarding the electricity charges. The respondents did not challenge the applicant's expert evidence and failed to provide revised clearance figures excluding electricity charges, as required. The court held that the applicant was entitled to mandamus relief compelling the respondents to issue a clearance certificate upon payment of rates, taxes, water, and ancillary charges, excluding electricity. Urgency was established due to the…

Source excerpt

• Municipal Clearance Certificates
• Contempt Of Court
• Section 118 Municipal Systems Act
• Tariff Dispute Electricity
• Urgent Interdict
• Punitive Costs

Genuine Motors CC v F & J Familie Trust and Others (6381/2017)

Genuine Motors CC v F & J Familie Trust and Others (6381/2017) [2018] ZAFSHC 139 (20 September 2018)

Court

Free State High Court, Bloemfontein

Case number

6381/2017

Judge

Mathebula

The court found that the correct interpretation of section 118(1) of the Municipal Systems Act is that the obligation to pay rates and taxes is limited to the property to be transferred, not the entire remainder. The property in question had an independent existence for the purpose of obtaining a clearance certificate. However, the applicant failed to meet the requirements for a final interdict, particularly the existence of a clear right, as the charges for rates and taxes were disputed and the billing system was inaccurate. The responsibility to apply for clearance figures lies with the tra…

Source excerpt

• Municipal Rates Clearance
• Section 118 Municipal Systems Act
• Final Interdict
• Property Transfer
• Contractual Obligations

Stuart NO v City of Tshwane Metropolitan Municipality (55891/2015)

Stuart NO v City of Tshwane Metropolitan Municipality (55891/2015) [2016] ZAGPPHC 1145 (27 October 2016)

Court

North Gauteng High Court, Pretoria

Case number

55891/2015

Judge

S P Mothle

The court ordered Tshwane to issue a clearance certificate for estate property, finding the municipality had not proved the alleged outstanding levies.

• Municipal Clearance Certificate
• Section 118 Municipal Systems Act
• Property Transfer
• Municipal Rates And Taxes
• Executor Estate Administration
• Municipal-clearance-certificate

Perregrine v City of Tshwane Metropolitan Municipal Authority (50816/14)

Perregrine v City of Tshwane Metropolitan Municipal Authority (50816/14) [2014] ZAGPPHC 758 (8 September 2014)

Court

North Gauteng High Court, Pretoria

Case number

50816/14

Judge

D S Fourie

The court held that the statutory hypothec created by section 118(3) of the Municipal Systems Act is extinguished when property is sold in execution and transferred to a new owner. The principal debt for historical municipal charges remains with the original debtor and does not transfer to the new owner or successor in title. There is no statutory or contractual basis for imposing joint or several liability for historical debts on successors in title. The municipality is not entitled to refuse the supply of municipal services to the new owner solely because of outstanding historical debts inc…

Source excerpt

• Municipal Services
• Statutory Hypothec
• Historical Municipal Debt
• Sale In Execution
• Section 118 Municipal Systems Act

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013)

Uniqon Wonings (Pty) Limited v City of Tshwane Metropolitan Municipality (22726/2013) [2014] ZAGPPHC 1052 (13 March 2014)

Court

North Gauteng High Court, Pretoria

Case number

22726/2013

Judge

Ebersohn AJ

High Court held a municipality could not withhold clearance certificates for individual stands because rates on the whole development were unpaid.

• Municipal Property Rates
• Clearance Certificates
• Statutory Interpretation
• Section 118 Municipal Systems Act
• Municipal-property-rates
• Clearance-certificates