Case Law[2025] ZAGPPHC 798South Africa
Bottcher and Another v City of Tshwane Metropolitan Municipality and Others (127296/2023) [2025] ZAGPPHC 798 (30 July 2025)
High Court of South Africa (Gauteng Division, Pretoria)
30 July 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Bottcher and Another v City of Tshwane Metropolitan Municipality and Others (127296/2023) [2025] ZAGPPHC 798 (30 July 2025)
Bottcher and Another v City of Tshwane Metropolitan Municipality and Others (127296/2023) [2025] ZAGPPHC 798 (30 July 2025)
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sino date 30 July 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
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SAFLII
Policy
FLYNOTES:
PROPERTY
– Expropriation –
Procedural
fairness
–
Notice
– Letter was unclear and ambiguous – Failed to
adequately inform nature and purpose of expropriation as
required
– Subsequent clarification letter did not rectify confusion
– Municipality’s failure to disclose
decision upfront
rendered process procedurally unfair – Notice contained
material errors – Lack of procedurally
sound decision to
expropriate undermined notice’s validity –
Expropriation decision reviewed and set aside –
Expropriation Act 63 of 1975, s 7.
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
PRETORIA)
Case No:
127296/2023
(1) REPORTABLE: No
(2) OF INTEREST TO OTHER
JUDGES: No
(3) REVISED:
DATE: 30 JULY 2025
SIGNATURE
In the matter between:
LOTHAR
OTTO BÖTTCHER
First
Applicant
NICOLENE
BÖTTCHER
Second
Applicant
and
CITY
OF TSHWANE METROPOLITAN MUNICIPALITY
First
Respondent
THE MINISTER OF
PUBLIC WORKS
AND
INFRASTRUCTURE
Second
Respondent
THE
REGISTRAR OF DEEDS, PRETORIA
Third
Respondent
This
judgment is prepared and authored by the Judge whose name is
reflected as such and is handed down electronically by circulation
to the parties / their legal representatives by email and by
uploading it to the electronic file of this matter on CaseLines.
The date for handing down is deemed to be 30 July 2025.
JUDGMENT
RETIEF
J
INTRODUCTION
[1]
The First and Second Applicant [Applicants] seek to review and set
aside a decision taken
by the First Respondent; the City of Tshwane
Metropolitan Municipality [Municipality] as communicated to them on
the 16 October
2023 by means of the section 7 notice [the section 7
notice] in terms of the Expropriation Act 63 of 1975 [Expropriation
Act].
The section 7 notice referred to the acquisition of an
immovable property registered in the First Applicant’s name
described as portion 176 (a portion of portion 2) of the Farm
Kameeldrift 298, Registration Division JR, situated in the Gauteng
Province [portion 176] [impugned decision]. The Applicant’s
review relief is brought,
inter
alia
,
in terms of the
Promotion of Administrative Justice Act, 3 of 2000
[PAJA] [review relief].
[2]
The Municipality opposes the review relief and the Second and Third
Respondents filed a
notice to abide. Over and above the review
relief, the Municipality sought condonation for the late filing of
their notice of opposition,
the late filing of the record and, in
consequence the late filing of their answering affidavit. According
to the signed joint practice
note this preliminary issue was not
indicated as an issue for determination. This Court nonetheless has
had regard to the Municipality’s
explanation and is satisfied
that a full and acceptable explanation has been provided for the
entire period of the delay and having
considered the merits of the
matter and that most of the relevant material background facts are
common cause, this Court will grant
condonation as sought. The review
relief will be dealt with having regard to all the papers filed.
[3]
So, what is at the heart of the Applicants’ complaint giving
rise to their review
relief? The Applicants complain that the
section
7
notice is invalid as it offends section 7 of the Expropriation Act
and that the procedure followed by the Municipality to justify
the
impugned decision is procedurally unfair and statutorily flawed. The
Municipality conversely argues that it was entitled to
take the
impugned decision, that the reason for the expropriation of the First
Applicant’s property was justified and that
all required
procedures under the relevant legislation, including those in respect
of section 7 was properly followed and complied
with. It further
argues that, in any event, the Applicants never objected to the
process of expropriation itself but, if one has
regard to the
procedural steps taken by the Applicants before and after the section
7 notice, their core issue is, in fact, the
compensation offered. It
is common cause that the compensation offered has formally been
rejected and that the Applicants have
instituted action proceedings
as envisaged in terms of section 14(1) of the Expropriation Act.
[4]
Before dealing with the review relief, it will be helpful to consider
the background facts
that gave rise to both the Applicants’
complaints, to consider the reason why the Municipality took
the impugned decision
and to view the steps taken by the Applicants,
procedural or otherwise, in context.
BACKGROUND
AND PROCEDURAL STEPS
[5]
The Municipality is mandated to develop human settlement areas within
its municipal region
and district by, amongst other actions, zoning
land as residential land. The farm Kameeldrift 298 JR [the farm] upon
which portion
176 is situated, is land zoned for agriculture. The
farm is located in the northern part of the city of Tshwane and
therefore falls
within the Municipality’s regional and district
jurisdiction During 2002, the Gauteng Provincial Department of Human
Settlement
[the GDHS] sought to formalise portion 174 of the farm as
it had been invaded by occupiers and had now become an informal
settlement.
GDHS had intended to establish a township on portions 174
and 175 of the farm, in that way, it intended to formalise the
informal settlement occasioned by the invasion of occupiers on the
farm.
[6]
In 2015 the Municipality took over the project from the GDHS and soon
realised that due
to the dense nature of the informal settlement,
additional land would be required to decant some of these residents.
Therefore,
in 2020, the Municipality also acquired portions 178 and
179 of the farm for the development. Thereafter, the Municipality was
approached by landowners of the surrounding properties all who
expressed an intention to sell their properties to the Municipality
to enable the extension of the portion 178 and 179 development. In
2021and after a prefeasibility study was performed it was recommended
that,
inter
alia
,
portion 176 should be acquired.
[7]
To this end, and on the 22 June 2022, the Mayoral Committee resolved
to acquire, at fair
market value, certain properties from the
surrounding landowners for the development, including portion 176.
The fair market value
for such properties, at that time, was
determined by both the Cities internal valuators, the Group Financial
Services Property
Valuation section [internal valuation] and by
external valuators Evaluations Enhanced Appraisals (Pty) Ltd.
[8]
According to the filed records, the internal valuation of portion 176
was recorded as being
R3,255,000.00 comprising a financial loss
amount of R3, 200,000.00 and R55,000.00 as a
solatium
amount. According to the external valuation the fair market value of
portion 176 was recorded as R4,000,000.00. Unfortunately,
although
reference in the record is made to the respective valuation reports
themselves as annexures, annexed to the 2023 report,
no actual
reports formed part of the record filed by the Municipality under
uniform rule 53. The Municipality however dealt with
and provided the
external valuation report dated 26 October 2022 by Evaluations
Enhanced Appraisals (Pty) Ltd, in their answer
to the First
Applications review relief. The record indicated that some of the
landowners were satisfied with the valuations (internal
and external)
obtained by the Municipality, however, no consensus was recorded as
being reached with the First Applicant as the
owner of portion 176.
[9]
Approximately a year later and on the 21 June 2023, the Group
Property Department of the
Municipality tabled another request before
the Mayoral Committee relating to the same development. This time it
now wished to table
the prospect of acquiring portions 172, 173 and
176 of the farm by means of expropriation. To this end it proposed
that the Mayoral
Committees agree to resolve that the identified
portions are to be acquired by means of expropriation, and that the
resolution
of 22 June 2022 be corrected to ensure that portion 176
which, was initially to be acquired by the sale method, now to be
acquired
by means of the expropriation method together with portions
172 and 173.
[10]
The Mayoral Committee on the 21 June 2023 resolved the following
material resolutions:
“
RESOLVED:
1.
That Mayoral Committee resolution dated 22 June 2022 be corrected
by removing the acquisition of portion 176 of the Farm Kameeldrift
298 – JR through a sale method, and instead the property be
expropriated with portion 172 and 173 of the farm Kameeldrift
298 –
JR;
2.
That the Mayoral Committee approves the expropriation of portions
172, 173 and 176 of the farm Kameeldrift 298 – JR for human
settlement development purposes;
3.
That the properties (portion 172, 173 and portion 176 of the farm
Kameeldrift 298 – JR) be expropriated at fair market values
determined by the Group Financial Services Property Valuation
section);
4.
-
5.
That the Acting/Group Head: Legal and Secretariate Services be
authorised to issue notices of expropriation
upon approval
of the proposed expropriation of portion 172, 173 and 176 of the farm
Kameeldrift 298 – JR
(own emphasis);
6.
That once said portions are approved to be expropriated
(own emphasis), the said properties be declared Municipal
Transitional Settlements in terms of clause 16 and 32 of the Planning
Scheme, 2008 (Revised 2014);
7.
That an environmental authentication through Gauteng Provincial
Environmental Management Framework (GPEMF) Norms and Standard Process
and a geological investigation be sourced by Human Settlement
Department (a custodian department) to ascertain he geological
constraints
and developability of the properties.
8-10-’’
[collectively
the June 2023 decision]
[11]
According to the record, the next Mayoral Committee meeting was
scheduled for the 5 July
2023. No record of that meeting ever taking
place is before this Court nor did the minutes thereof form part of
the record. The
Municipality did not deal with the July 2023 meeting
in its papers.
[12]
Eight days after the June 2023 decision, and on the 29 June 2023 the
Municipality sent
a letter addressed to the First Applicant. The
letter was headed “
EXPROPRIATION
OF PORTION 176 OF THE FARM KAMEELDRIFT 298 JR
”.
This letter was referred to by the Municipality as their notice in
terms of section 3(2)(b) of PAJA [PAJA letter]. In the
PAJA letter
the First Applicant was informed of the following:
“
The City of
Tshwane Metropolitan Municipality
intends
to acquire portion 176
(own
emphasis) of the farm Kameeldrift 298 JR, which will be utilised for
the formalisation and development of Human Settlement
by means of
expropriation. See attached (Annexure A).
You are herewith
notified in terms of section 3(2)(b) of the Promotion of
Administration and Justice Act 2000 (Act 3 of 2000) (“PAJA”)
of the
proposed expropriation
(own emphasis). The construction
of the road is in the
interest of the general public
(own
emphasis).
You will be
compensated for the expropriated land at market value, and you will
be able to claim compensation for actual financial
loss caused by the
expropriation.
You are given the
opportunity to make written representation within 30 (thirty) days of
the date of this letter
regarding the principle of the proposed
expropriation
(own emphasis). You are requested to
also
(own emphasis) put forward any
alternatives to the planned area to
be affected by the servitude
(own emphasis).
You are notified that,
should a decision be made to proceed with the proposed
expropriation after having considered your written objections or
representations
(own emphasis) you are entitled to request
reasons for such decision in terms of section 5 of PAJA.”
[PAJA letter]
[13]
Annexure A referred to was attached to the PAJA letter, and it was a
copy of the subdivision
plan in terms of section 24(b) of Act 9 of
1927 of the farm. The plan depicted portions 173 to 178 of the
farm divided by
a right of way servitude, such depicted by means of a
broken line from point C to D.
[14]
On the 12 July 2023 and before the expiration of the 30-day period
referred to in the PAJA
letter, the Municipality appointed its
conveyancing attorneys Kutumela Sithole Inc to attend to the
registration of,
inter
alia
portion 176.
[15]
On the 28 July 2023, the First Applicant’s attorney responded
to the PAJA letter
on behalf of the First Applicant, in which he,
amongst other issues raised a number of concerns relating to the
vague intent and
purpose of the expropriation as set out in the PAJA
letter. He placed on record that the PAJA letter was confusing and
required
clarification. In amplification the First Applicant was
unsure whether the Municipality now wished to acquire the
entire
portion 176 or just a portion thereof or merely the servitude
for the purpose of a public road for the public interest. The First
Applicant reserved his rights to make the representation referred to
the PAJA letter to the Municipality after clarification was
obtained.
Notwithstanding the need for clarification, the First Applicant’s
attorney confirmed that, in the interim, The
First Applicant was
“
willing
to enter into negotiations regarding compensation for the possible
expropriation of the Property
.’’
[16]
On the 3 August 2023, the Municipality responded to the First
Applicant’s letter
of the 28 July 2023 and informed the First
Applicant that:
“
As per PAJA
letter dated the
13
th
of
July 2023
(own
emphasis), the intention is to expropriate for human settlement
development purposes. The road is part of such development
as it will
enhance access to human settlement development.
Furthermore, after
the thirty days from the date of the PAJA letter
,
expropriation letters will be sent to your clients
detailing the amount of compensation as approved by the Mayoral
Committee dated
the 21
st
of
June 2023
(own emphasis).”
[letter of clarification]
[17]
No PAJA letter of the 13 July 2023, as reference by the Municipality
in the letter of clarification,
formed part of the record nor did the
Municipality deal with that in their papers.
[18]
On the 15 August 2023, in an executive memorandum, a request was made
to the Acting Legal
Head for the signature of the section 7 notice.
In support of the signature, the memorandum indicated the following:
“
In
compliance with
(own
emphasis) the aforementioned Committee resolution of the 21 June 2023
we served the property owner with a PAJA letter attached
hereto. The
30-day period has lapsed since we served the letter to the owner.
Therefore
,
(own emphasis) the expropriate must be served with the notice of
expropriation.”
[19]
Having regard to the memorandum, it is not clear from the June 2023
decision whether resolution
5 speaks of the PAJA letter as the notice
as relied on by the author of the memorandum or the section 7 notice
itself when the
author stated, “
In
compliance with the aforementioned Committee resolution of the 21
June 2023 we served the property owner with a PAJA letter.’’
This is
because the Municipality does not deal with it
.
[20]
At this stage of the process, the Acting Legal Head by virtue of the
content of the covering
letter is not asked to consider the First
Applicant’s letter calling for clarification in respect of the
PAJA letter nor
the Municipality’s response thereto as these
letters are not referred to nor attached to the memorandum marked for
her attention.
The only letter attached is the PAJA letter.
[21]
Signature of the section 7 notice was approved on the 26 September
2023. On the 18 October
2023, the First Applicant acknowledged
receipt of section 7 notice which informed him of the impugned
decision.
[22]
The section 7 notice was now accompanied by a covering letter which
now confusingly made
reference to the PAJA letter of the 13 July 2023
(ostensibly the PAJA letter of the 29 June 2023 but recorded as t the
date of
the receipt thereof), and significantly now only made
reference to the First Applicant’s clarification letter. The
section
7 notice was addressed to the registered owner,
[1]
it set out a description of the property, it confirmed that the date
of ownership and possession of portion 176 would be effected
namely
on the 1 November 2023, it drew the First Applicant’s attention
to section 9(1), including 9(1)(d)(i) and 12(3)(a)(ii)
and did set
out a compensation offer.
[2]
[23]
The compensation offered was set out as follows:
“
3.
the
total amount of R3,035,000.00 (three million and thirty-five thousand
rand)
(own
emphasis) “the compensation OFFERED”)
is
hereby offered as compensation in terms of the Expropriation Act,
which amount is broken down as follows:
3.1
In terms of section 12(1)(a)(ii) R3,200,000.00 (
two million
nine hundred and eighty thousand rands
) (own
emphasis) which is the financial loss,
3.2
In terms of section 12(2) R55,00.00 (fifty-five thousand rands, which
is the
solatium.”
[collectively
the section 12 offer]
[24]
The section 7 notice too, sets out further terms relating to the
payment and how the offer
was to be accepted. In particular in terms
of paragraph 11, the following is stated:
“
11.
Should you fail to submit to a court as contemplated in section 14(1)
of the Expropriation Act, before
the 1
st
of July
2024, an application for settlement of the amount, you would be
deemed in terms of the provisions of section 10(5)(a) of
the
Expropriation Act, to have accepted the compensation offered.
”
[25]
The First Applicant formally rejected the section 12 offer in writing
on the 13 December
2023
[3]
and
initiated the review relief.
[26]
Thereafter, in May 2024 the Applicants served a statutory notice on
the Municipality in
terms of the Institution of Legal Proceedings
against certain Organs of State Act 40 of 2002. This statutory notice
was followed
by the institution of legal proceedings against the
Municipality and the Second Respondent before the 1 July 2024. The
Applicants
issued their summons commencing action on the 27 in
accordance with the Expropriation Act.
LEGISLATIVE
FRAMEWORK
The
Constitution
[27]
The Expropriation Act predates the Constitution by 20 (twenty) years.
Therefore, it is
not aligned with Constitutional provisions. The
Expropriation Act does not refer to “
public
interest requirement
”
and
that the calculation of the compensation must be just and equitable
but rather based on a market value of the property. However,
regard
to the statutory provisions of the Expropriation Act through the
Constitutional lens of section 25 dictates that the application
of
the Expropriation Act must be applied to conform with the
fundamental values of the Constitution wherever possible.
[4]
In this matter it is common cause that the law of general application
is the Expropriation Act of 1975.
[28]
Section 25 of the Constitution is relevant, and in this matter, it is
appropriate to highlight,
although applying weight to all of the
other subsections where applicable, section 25(2)(b) and 25(3). In
terms section of 25(2)(b)
property may only be expropriated which
reads that property may be expropriated only in terms of law of
general application,
inter
alia
,
“25(2)(b)
subject
to compensation, the amount of which and the time and manner of
payment of which have either been agreed to by those affected
or
decided or approved by a court.
”
[29]
Section 25(3) speaks to the amount by providing that the same must be
just and equitable.
In subsection (c) thereof, as an open-ended
factor
[5]
in the determination
thereof, reference to the market value of the property is made. Such
as prescribed the Expropriation Act,
in particular section 12 when
calculating the aggregate amount referred to in section 12(1).
The
Expropriation Act 63 of 1975
[30]
The Expropriation Act 63 of 1975 was enacted to provide for the
expropriation of land and
other property for public purposes. Section
1 of the Expropriation Act defines public purpose to include any
purpose connected
with the administration of the provisions of any
law by an organ of state.
[31]
Section 1, the definition of
"
public
purposes
"
includes any purposes connected with the administration of the
provisions of any law by an organ of State.
[32]
Section 2 of the Expropriation Act states that:
“
2.
(1). Subject to the provisions of this Act
the Minister may, subject to an obligation to pay compensation,
expropriate any property for public purposes or take the right to use
temporarily any property for public purposes.
”
[33]
Section 5 of the Expropriation Act states that:
“
5.
(1)
If
a local authority has the power to expropriate property
(own
emphasis) or to take the right to use property temporarily, such
power may only be exercised, mutatis mutandis, in accordance
with the
provisions of this Act and subject to the approval of and the
conditions imposed by the executive committee concerned.
(2)
For the purposes of the application of subsection (1) any reference
in this Act to the Minister and
the State shall be construed as a
reference to the local authority concerned.”
[34]
Section 7 of the Expropriation Act states that:
“
7.
(1) If the Minister has decided to
expropriate, or to take the right to use temporarily,
any property in
terms of the provisions of section 2, he shall, subject to the
provisions of subsection (5), cause to be served
upon the owner in
question an appropriate notice in accordance with the provisions of
subsection (3).
(2)
The notice of expropriation shall-
(a)-(b)
-
(c)
either
state the amount which is offered as compensation
(own
emphasis) for the property or for the use thereof, or request the
owner to advise the Minister in writing within sixty days
from the
date of notice of the amount claimed by him as such compensation and
how much of the last-mentioned amount represents
each of the
respective amounts contemplated in section 12(1)(a)(i) and (ii
)
or
(b) with full particulars as to how such amounts are made up:
Provided that if the owner requests the Minister in writing within
thirty days from the date of notice to extend the said period, the
Minister shall extend such period by a further sixty days;
(d)
-
(3)
Subject to the provisions of subsection (5), the Minister shall cause
the notice of expropriation to
be served by causing the original or a
true copy thereof to be delivered or tendered or sent by registered
post to the owner in
question.
(4)
- (5)”
[35]
Section 9 of the Expropriation Act states that:
“
9.
(1)
An
owner whose property has been expropriated in terms of this Act,
shall, within sixty days from the date of notice in question,
deliver
or cause to be delivered to the Minister a written statement
indicating-
(a)
if any compensation was in the notice of expropriation offered for
such property, whether or not he
accepts that compensation and, if he
does not accept it, the amount claimed by him as compensation and how
much of that amount
represents each of the respective amounts
contemplated in section 12(1)(a)(i) and (ii) or (b) and full
particulars as to how such
amounts are made up;
(b) to (e)
-
(2)
The
Minister may, after receipt of a written statement contemplated in
subsection (1), request the owner concerned to deliver or
cause to be
delivered to the Minister within such period not being less than one
month as may be determined by the Minister, such
further specified
particulars in respect of any matter contemplated in the said
subsection as he may consider necessary for the
determination of the
amount of the compensation.”
[36]
Section 12(1) states that:
“
12. (1)
The
amount of compensation to be paid in terms of this Act to an owner in
respect of property expropriated in terms of this Act,
or in respect
of the taking, in terms of this Act, of a right to use property,
shall not, subject to the provisions of subsection
(2), exceed-
(a)
in the case of any property other than a right,
the
aggregate
(own
emphasis) of-
(i)
the
amount which the property would have realized if
sold
on the date of notice
(own
emphasis) in the open market by a willing seller to a willing buyer;
and
(ii)
an
amount to make good any actual financial loss caused by the
expropriation; and
(b)
-.”
Promotion
of Administrative Justice Act, 3 of 2000
[37]
Section 3(1)
states that:
“
3.
(1)
Administrative
action which materially and adversely affects the rights or
legitimate expectations of any person must be procedurally
fair.
(2)
(a) A fair administrative procedure depends
on the circumstances of each case.
(b)
In order to give effect to the right to procedurally fair
administrative action, an administrator, subject
to subsection (4),
must give a person referred to in subsection (1)-
(i)
adequate notice of the nature and purpose of the proposed
administrative action;
(ii)
a reasonable opportunity to make representations;
(iii)
a clear statement of the administrative action;
(iv)
adequate notice of any right of review or
internal appeal, where applicable; and
(v)
adequate notice of the right to request reasons in terms of
subsection (5).”
Local
Government Ordinance of 1939
[38]
Section 79(24)(1) permits the Municipality to
inter
alia
purchase, expropriate or in any other manner acquire any immovable
property, for the performance or discharge of any function or
duty
authorised or acquired in terms of any law. Such acquisition of
immovable property may be achieved by expropriation as permitted
in
terms of section 2(4) of the Expropriation Act, or by negotiation
with an owner of property for the acquisition thereof by means
of
agreement for public purposes.
DISCUSSION
OF THE APPLICANTS’ CASE
[39]
Against the legislative background, the Applicates’ attack both
the process giving
rise to the impugned decision and the section 7
notice itself. The Applicants contend that the section 7 notice is
invalid and
should be declared unlawful and that the process giving
rise to the impugned decision was,
inter
alia
,
procedurally unfair, irrational and that such impugned decision
stands to be reviewed and set aside.
The
case regarding the expropriation process
[40]
From a reading of the papers the Applicants take no issue with the
fact that the Municipality
is statutorily entitled to acquire the
property by means of expropriation. They however contend that the
process itself is to be
scrutinised. In context the process was
triggered by the June 2023 decision and initiated as against them, by
means of the PAJA
letter.
[41]
The Applicants argue that the PAJA letter read with Annexure A was
confusing in that they
were unsure whether the Municipality intended
to consider acquiring portion 176, a portion thereof or just the
servitude. Furthermore
upon a reading of the PAJA letter the
Applicants stated that they were under the impression that a final
decision to expropriate
had not been taken yet and that is why the
Municipality had called for their objections and their
representations concerning the
process when it in the introductory
paragraph stated that: “
-
intends to acquire portion 176
”
and later therein continues to make reference to
:
“should a decision be made to proceed with the proposed
expropriation after having considered your written objections or
representations
-“
The use of the words ‘
intend
to
-’
and ‘-
should
a decision be made to proceed
-’
to them meant that although there was an intention albeit a prospect,
no final approval to proceed with expropriation had
been made and
that dialogue between the parties was open. In short, their
representations could be meaningful.
[42]
Notwithstanding their understanding and having written to the
Municipality requiring clarification
on certain unclear facts, the
Municipality in its clarification letter of the 3 August 2023
conversely stated that: ”
Furthermore,
after the
thirty
days from the date of the PAJA letter
(own
emphasis), expropriation letters will be sent to your clients
detailing the amount of
compensation
as approved
(own
emphasis) by the Mayoral Committee dated the 21
st
of June
2023.”
[43]
From the clarification letter, the Applicants contended that without
their input, expropriation
letters would be sent detailing an amount
already decided on by the Municipality even before the PAJA letter
was even sent. Furthermore
that, as at the 3 August 2023,
“-
thirty
days from the date of the PAJA letter,-“
being
from the 29 June 2023 and not from the receipt, had factually
expired. Any input from them to try and shift the barometer
in any
way was futile and as such, the call to make representation or
objections was a farce. Furthermore, that after receiving
the record
it was clear that expropriation of portion 176 had finally been
resolved by the June 2023 decision, conveyancing attorneys
appoints
and as such, the process was a farce. Therefore, the process was
procedurally unfair
.
They
reiterated that it was clear to the Municipality in their response to
the PAJA letter that they reserved their rights to respond
upon
reflection of the Municipalities clarification response and that any
negotiations regarding any proposed expropriation was
interim pending
such clarity.
[44]
The Municipality contends that the June decision sanctioned
expropriation and that is what
triggered the process. The first step
in the process was the PAJA letter. The Municipality confirms that
although the Expropriation
Act does not prescribe the necessity of
such a notice, for procedural fairness such a letter was sent as it
is an organ of State
and are therefore bound by the provisions of
PAJA in such circumstances. Furthermore, they argued that both the
PAJA letter dated
the 29 June 2023 and the letter on the 01 August
2023 (this must have been a typographical error as the letter was
dated the 3
August 2023) was sent to illicit representations from the
First Applicant and ”-
that
expropriation was not going to follow on account of both of those
letter.”
In
consequence the procedure was fair.
[45]
The Applicants cast the review ground net wide without dealing
pertinently with each ground
raise. This Court only intends to deal
with those grounds repeated in argument and sufficiently supported by
facts.
Discussion
Was
the process procedurally fair
?
[46]
The Municipality contends that the PAJA letter was sent to the First
Applicant in compliance
of section 3(2)(b). The PAJA letter dated 29
June 2023 gives the First Applicant notice of a proposed
expropriation. Reference
to “proposed expropriation’’,
was used by the Municipality after the June 2023 decision already,
absent any other
decision, sanctioned expropriation on the admitted
facts. Furthermore, the PAJA letter is poorly drafted, its content is
confusing
and, at times ambiguous with regard to material issues. In
consequence, the purpose and nature of the proposed action as
provided for in section 3 of PAJA is not met and the call for clarity
by the First Applicant justified and reasonable. However,
what was
clear is that no indication in the PAJA letter was given that the
June 2023 decision was taken at all and that such decision
could
adversely affect the rights of the First Applicant. This is probably
why the Applicants were confused about what process
the Municipality
followed internally and thought that a mere proposal was made and no
decision to expropriate would be made without
consideration of their
representations. The PAJA letter was not clear at all as envisaged in
terms of section 3 of PAJA.
[47]
Furthermore, it was only in the letter of clarification on the 3
August 2023, that mention
of the June 2023 decision was made for the
first time. Therefore, both the letters being, the PAJA letter and
the clarification
letter of the 3 August 2023 had to be read together
to obtain clarity and a fuller picture. Contrary to the
Municipality’s
evidence that: “-
that
expropriation was not going to follow on account of both of those
letter.”
It
did, in that
,
on a
reading of the letter of clarification it cannot be said that its
intention, as advanced by the Municipality, was to solicit
a
response from the Applicants. In fact, the facts demonstrate that the
reverse is true as previously reasoned in that, the
First Applicant
was forewarned that the 30-day period for representations and
objections started to tick from the date of the PAJA
letter. The PAJA
letter of the 29 June 2023.
[48]
It is therefore reasonable for a reader, without been given an
explanation to the contrary,
to interpret and to accept that the
window of opportunity to participate in a meaningful process had not
been extended from the
date of the Municipality’s clarification
letter in August 2023 nor, that that they as a fact could participate
in the process
after considering the content of the letter. In
consequence, the next procedural step, the section 7 notice, would be
dispatched
consisting of compensation amount as agreed by the 23 June
2022 decision. The fact that the Applicants made no further
objections
and/or representation after the 3 August 2023 now comes
into focus.
[49]
Both the PAJA letter and the clarification letter in August 2023 were
unclear causing procedural
vagueness.
[6]
The PAJA letter failed to fully comply with section 3(2)(b)(i)-(ii)
of PAJA. The August 2023 clarification letter by its content
truncated the Applicants participation in a meaningful process, and
it is on this basis that the procedure followed by the Municipality,
at this stage of the process was procedurally unfair to the
Applicants. The Applicants after receiving the record indicated that
they would have liked to put,
inter
alia,
other
alternatives to the Municipality as called for, but could not.
[50]
Before dealing with the complaints raised as against the
section 7 notice it appears
from the executive memorandum that when
the delegated person was called to sign the section 7 notice they did
not possess knowledge
of the First Applicant’s response to the
PAJA letter. This is because it was not referred to nor attached. In
consequence
the person could not consider the issues raised, did not
note the interim request for negotiations nor for that matter that
the
First Applicant reserved his rights to make further
representations and what became of them. Therefore, no further
enquiries were
made. The rubber stamp approached followed. This
created a lack of consultation in the process.
[7]
Such rendering the procedure unfair and seemingly creating the
impression that the deprivation of the First Applicant’s
property was arbitrary.
[51]
Lastly, from the record a further meeting by the Mayoral Committee
was tabled to take place
in July 2023. Whether that meeting took
place or not is unknown. What is known from the papers is that the
Municipality failed
to deal with that fact emanating from the record.
Its argument then that the June 2023 was the authority to finally
sanction the
expropriation if accepted is procedurally unclear.
Furthermore, if that is so, then the Municipality has failed dismally
to explain
why the PAJA letter does not mention the final decision
and why the language in the letter creates the impression that the
expropriation
is a prospect to be reconsidered when factually, that
was not the position. The Applicants’ complaint that the
process was
just a farce and simply going through the motions has
weight.
[52]
Having regard to the inevitable must flow and the Applicants are to
succeed on this point
as raised and argued.
The
case regarding the section 7 notice
[53]
Resolution 3 of the June 2023 decision makes reference to the
determination of a fair market
valuation by Group Financial Services.
Section 12(1)(i)
makes
reference
to the determination of an “
-
amount which the property would have realized if
sold
on the date of notice
(own
emphasis) in the open market by a willing seller to a willing buyer.
[54]
The
Applicants deny receiving the original notice albeit a certified copy
of the notice. They furthermore contend that no internal
valuation
report nor updated internal valuation report formed part of the
record in support of section 12(1)(i). Furthermore, that
the total
compensation offered in the section 7 notice of
R3,035,000.00
(three million and thirty-five thousand rand) was confusing if viewed
as against the explanation which followed. The
amounts which followed
when added together do not tally with the total amount offered nor do
some of the amounts written out in
words accord with the actual
figures themselves.
[55]
Furthermore, the total compensation offered by the Municipality in
the section 7 notice
of R3,035,000.00 was, according to the
Municipality’s evidence not the intended offer as per the 2022
internal valuation.
In that they contend that the total offer should
have been R3 255 000.00. All these errors argue the Applicants’
Counsel,
offends section 7 of the Expropriation Act. The Municipality
concedes the typographical errors. Other than that, the Municipality
contends that such an error does not render the notice invalid.
[56]
The Applicants also argue that the Municipality failed to follow
statutory procedure and
serve an original section 7 notice on both
the Applicants. The Municipality is silent on compliance and the
record indicates that
the First Applicant did not sign for the
receipt of the notice but one Bonita Botha. Ms Botha did not depose
to a confirmatory
affidavit. The Municipality contends it has
complied by serving the section 7 notice as formally provided on the
registered owner
of the property, the First Applicant and, in any
event, the property is excluded from community of property and thus
the was no
need to serve it on the Second Applicant.
Discussion
Did
the section comply with the provisions of the Expropriation Act
?
[57]
The concession by the Municipality is well made but it does not
address the failure by
them to get the amounts written in words
correct. To illustrate, in terms of the section 7 notice the
financial loss in terms of
section 12(1)(a)(ii) was set out as
“
R3,200,000.00”
but written out as “- (
two
million
nine
hundred and eighty thousand rands
)”
(own
emphasis).
The
figures and words are at variance with one another.
[58]
Section 12(1) of the Expropriation Act when applied correctly, speaks
to the amount to
be offered which should
not
exceed the aggregate
of the amount which the property would have realised if sold at the
date of notice in the open market by a willing seller to a
willing
buyer and the amount to make good in the actual financial loss caused
by the expropriation.
[59]
Applying the facts, in terms of section 12(1)(a)(i), no updated open
market value was provided
as at date of the section 7 notice, being
the 16 October 2023. It is common cause that the First Applicant as
at date of the section
7 notice did not provide his claim for
financial loss either as envisaged in terms of section 12(1)(a)(ii).
The latter is supported
by the record with reference to the
valuation done by the Acting Director: Property Valuations. This
valuation in fact was simply
a cut and paste exercise imported from
the 2022 report and merely pasted in the report tabled before the
Mayoral Committee again
in 2023. It was not current, not even then.
Furthermore, at the end of the cut and paste letter, the following
paragraph states:
“
The
owner’s claim in terms of section 12(1)(a)(ii), if applicable,
will be evaluated when it is received.
”
This would explain why the letter of confirmation of the 3 August
2023 by the Municipality only refers to compensation to
be offered
being an amount approved by the Mayoral Committee (resolution 3). As
indicated, no record of a further meeting of the
Mayoral Committee
was placed before Court.
[60]
Reference to 12(2) in the section 7 notice, being the
solatium
,
does not make sense in that the amount which should be offered is an
amount equal to 10% of the amount payable in terms of section
12(1)(a)(i) plus other percentages. A formula is set out which can
only be calculated once a figure in 12(1)(a) has been established.
[61]
But does the confusion and the typographical errors as they appear,
render the section
7 notice and its purpose
per
se
invalid as advanced by the Applicants? Considering the section 7
other that the typographical errors relating to the amount of
compensation, it does not offend the provisions section 7(2) as
relied on by the First Applicant and it is clear from the history
of
the matter that what statutorily was to be achieved with the section
7 notice was achieved. The section 7(2) does not indicate
that the
Municipality has to set out an amount for compensation in the notice
nor that if it does, it has to qualify the total
amount.
[62]
However, one would expect that what appears in the section 7 notice
would support a clear,
rational and legitimate offer. To expand, the
total offer in the section 7 notice was clear as the figures did
accord with the
words that followed, and it was only clear to both
parties after the notice had been received that the total offered was
not the
intended amount. Although regrettable, the typographical
errors as complained of by the Applicants does not disturb the
validity
of the section 7 notice with regard to section 7(2)
complaint.
[63]
Furthermore, if an offer was made, as it was, section 7(2)(c) is
triggered, and the First
Applicant is at liberty to reject the offer
and inform the Municipality and it is common cause that the offer has
been rejected.
For what it is worth, the First Applicant has not
indicated on the papers that if the intended offer of R3 225 000.00
was correctly
offered as set out, that the offer would have been
accepted, the procedural facts speak to the reverse.
[64]
Section 25 of the Constitution and section 14 of the Expropriation
Act are in harmony in
that if the parties do not agree on the amount
payable for compensation, that a court of law be approached to make
that determination.
It is common cause that the Applicants have
initiated the proceedings contemplated in the Expropriation Act.
[65]
Having reasoned the above this Court is acutely aware that having
ruled that the process
triggering the impugned decision is to be
reviewed and set aside for want of procedural fairness, that this in
consequence disturbs
the section 7(1). In that the basis for the
section 7 notice must be triggered by a decision to expropriate. For
want of a decision
to rely on, the notice cannot stand. In any
event, procedural compliance with regard to service of section 7
notice in compliance
of section 7(3) has not been satisfied by the
Municipality.
[66]
Having regard to all the evidence the Applicants must succeed in that
the section 7 notice
is to be set aside.
COSTS
[67]
It is trite that costs follow the result, and in the circumstances,
costs should be awarded
to the Applicants. No other argument was
tendered. The Court therefore awards the Applicants costs of suit.
[68]
The following order:
1.
The First Respondent is granted condonation for the late filing
of
the answering affidavit and the record.
2.
The decision to approve the expropriation of Portion 176 (portion
of
Portion 2) of the farm Kameeldrift 298, Registration Division JR,
Province of Gauteng, measuring 8,5653 hectares, held under
Title Deed
T[…] [the property] as communicated to the First Applicant
through the notice of the 16 October 2023 [the notice]
is reviewed
and the decision and the notice is hereby set aside;
3.
The Third Respondent is ordered to amend its records to indicate
that
the First Applicant is the owner of the property;
4.
The First Respondent is ordered to pay the costs of this application
on a party and party scale, taxed at Scale C.
L.A.
RETIEF
Judge
of the High Court
Gauteng
Division
Appearances
:
For
the Applicants:
Adv J.G.C. Hamman
Mobile: 084 910
0092
Email:
hamman@ptalaw.co.za
Instructed
by attorneys:
JDP Attorneys
Email:
justin@jdplaw.co.za
For
the Respondent
Seneke SC
Mobile:
082
652 8344
Email:
seneke@law.co.za
Adv Lekgetho
Mobile: 076 090
5018
Email:
lekgetho@loftusadv.co.za
Instructed
by attorneys:
Marivate Attorneys
Tel: (012) 341 1510
Email:
leseho@marivate.co.za
Date
of argument:
21 May 2025
Date
of judgment:
30 July 2025
[1]
Section
7(4) of the Expropriation Act 63 of 1975.
[2]
Section
7((2)(a) and (b) of the Expropriation Act 63 of 1975.
[3]
Section
9(1)(a) of the Expropriation Act 63 of 1975.
[4]
Du
Toit v Minister of Transport
(CCT
22.04) [2005] ZACC9;
2005 (11) BCLR 1053
(CC);
2006 (1) SA 297
(CC)
at par 29.
[5]
Ibid
para
28.
[6]
Allpay
Consolidation investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security
Agency,
and Others
2014
(1) SA 604
(CC) at para 88-90 read with section 6(2)(i) of PAJA.
[7]
Bengwenyama
Minerals (Pty) & Others v Genorah Resources (Pty) Ltd &
Others
,
2011 (4) SA 113(CC).
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