Landmark Legal Battle Over Historic Municipal Debts

Section 118 a Historical Municipal Debt Court Case: A Landmark Constitutional Battle

Constitutional Court to Hear New Ventures Consulting & Services vs. City of Tshwane Metropolitan Municipality, Ekurhuleni Metropolitan Municipality & Minister of Co-operative Governance & Traditional Affairs

Constitutional Court Appeal CCT 283/16, 293/16 & 294/16:

Municipal Debt Specialist / New Ventures Consulting & Services is at the forefront of a pivotal legal battle to ensure the correct interpretation and implementation of Section 118 of the Municipal Systems Act. Our ongoing litigation against the City of Tshwane Metropolitan Municipality and Ekurhuleni Metropolitan Municipality addresses the contentious issue of holding new property owners liable for the previous owner’s municipal debts.

Our firm specializes in assisting property owners with High Clearance Figures claimed in the Municipal Clearance Figures for Certificates. We are committed to ensuring that municipalities adhere to constitutional standards, and that our clients are not unfairly penalised by inherited debts. As experts in Section 118, we have saved our clients significant amounts on Clearance Figures, which is why we are representing them in court.

Municipal Debts

It is imperative to note that in every application, Municipal Debt Specialist / New Ventures Consulting & Services was a co-applicant, running the case fully for both our clients and our own properties. We launched the first application on behalf of Chantelle Jordaan simply to comply with locus standi,  and as our own properties and matters were also at stake.

Section 118

These cases, backed by Municipal Debt Specialist / New Ventures Consulting & Services, challenge the misinterpretation of Section 118(3) that has burdened new homeowners with historical municipal debts, despite the fact that these debts were incurred by previous owners. We have represented multiple clients in these matters, which were initially heard in the North Gauteng High Court (NGHC) under various case numbers, including:

• Case No: 74195/2013 – Chantelle Jordaan & NVC.
• Case No: 13039/2014 – FM Kekana, MR Maleboloa, SR Maleboloa, MMamotsau & NVC.
• Case No: 13040/2014 – Billie Ann Livanos, Leah Henderson, Clifton Dunes Investments 317 (Pty) Ltd & NVC.
• Case No: 19552/2015 – Gemma Diamonds (Pty) Ltd & NVC.
• Case No: 23826/2014 – Oak Plant Rentals (Pty) Ltd, Stepping the World (Pty) Ltd & NVC.

In November 2016, the NGHC ruled that the conduct of the City of Tshwane and Ekurhuleni Metropolitan Municipalities was unconstitutional and unlawful, declaring that new property owners cannot be held liable for municipal debts incurred by previous owners. This decision, now awaiting confirmation by the Constitutional Court, is a significant step towards protecting property owners from unfair municipal practices.

The Constitutional Court has set the hearing for 23 May 2017, where Municipal Debt Specialist / New Ventures Consulting & Services will argue for the final confirmation of the NGHC’s judgment. This case is not only crucial for our clients but also for every property owner, municipality, and mortgage bondholder in South Africa. The outcome of this case will provide much-needed legal certainty regarding the interpretation of Section 118(3) and its application across the country.

 

View the Judgment here

 

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