Case Law[2025] ZASCA 196South Africa
Jurnic Properties CC and Another v Victor Khanye Local Municipality and Others (652/2024) [2025] ZASCA 196 (18 December 2025)
Supreme Court of Appeal of South Africa
28 March 2024
Headnotes
Summary: Constitutional Law – review in terms of s 6(2) of the Promotion of Administrative Justice Act 3 of 2000 – requirements for own-interest standing in terms of s 38 of the Constitution – unreasonable delay in instituting review proceedings.
Judgment
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## Jurnic Properties CC and Another v Victor Khanye Local Municipality and Others (652/2024) [2025] ZASCA 196 (18 December 2025)
Jurnic Properties CC and Another v Victor Khanye Local Municipality and Others (652/2024) [2025] ZASCA 196 (18 December 2025)
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sino date 18 December 2025
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Not
Reportable
Case no:652/2024
In
the matter between:
JURNIC
PROPERTIES CLOSE CORPORATION
FIRST APPLICANT
JULY
MOTORS CLOSE CORPORATION
SECOND APPLICANT
and
VICTOR
KHANYE LOCAL MUNICIPALITY
FIRST RESPONDENT
MPUMALANGA
DEPARTMENT OF
SECOND RESPONDENT
AGRICULTURE,
RURAL DEVELOPMENT,
LAND
AND ENVIRONMENTAL AFFAIRS
DALAMAY
PROPERTIES (PTY) LTD
THIRD RESPONDENT
EOHBAL
DAWOOD OMAR
FOURTH RESPONDENT
THE
REGISTRAR OF DEEDS, MBOMBELA
FIFTH RESPONDENT
Neutral
citation:
Jurnic Properties CC and
Another v Victor Khanye Local Municipality and Others
(652/2024)
[2025] ZASCA 196
(18 December 2025)
Coram:
ZONDI DP and KGOELE and SMITH
JJA, DAWOOD and KUBUSHI AJJA
Heard
:
14 November
2025
Delivered:
This judgment was handed down electronically by
circulation to the parties’ representatives by email,
publication on the Supreme
Court of Appeal website and released to
SAFLII. The date and time for hand-down of the judgment is deemed to
be 11h00 on 18 December
2025.
Summary:
Constitutional Law – review in terms of
s 6(2)
of the
Promotion of Administrative Justice Act 3 of 2000
–
requirements for own-interest standing in terms of s 38 of the
Constitution – unreasonable delay in instituting review
proceedings.
ORDER
On
appeal from
: Mpumalanga
Division
of the High Court, Middelburg (Mankge J sitting as court of first
instance):
1.
The decision of the high court refusing leave to appeal against its
order of 28 March 2024
(the high court’s order) is
set aside.
2.
The applicants are granted leave to appeal to this Court against the
high court’s order.
3.
The appeal against the high court’s order is upheld with costs
including the costs
of two counsel, where so employed.
4.
The high court’s order is set aside and replaced with the
following order:
‘
The
points in limine raised by the third and fourth respondents are
dismissed with costs including the costs of two counsel, where
so
employed.’
5.
The matter is remitted to the Mpumalanga Division of the High Court,
Middelburg, for consideration
of the review application.
JUDGMENT
Smith
JA (Zondi DP and Kgoele JA, Dawood and Kubushi AJJA concurring):
Introduction
[1]
This is an application for leave to appeal against the order of the
Mpumalanga Division of the
High Court, Middelburg (the high court),
delivered on 28 March 2024. The high court dismissed, with costs, the
applicants’
application for orders reviewing and setting aside:
(a) the sale of municipal land (the property)
[1]
by
the first respondent, the Victor Khanye Local Municipality (the
municipality), to the third respondent,
Dalamay
Properties (Pty) Ltd (Dalamay)
;
(b) the decision of the municipality to rezone the property from
‘Agricultural’ to ‘Mixed Land Use’; and
(c)
the decision of the second respondent, the
Mpumalanga
Department of Agriculture, Rural Development, Land and Environmental
Affairs
(the Department), to grant environmental authority for Dalamay to
establish a filling station on the property.
[2]
The high court dismissed the application without considering its
substantive merits, relying instead
on preliminary objections raised
by Dalamay and
the
fourth respondent, Mr Eobhal Dawood Omar (Mr Omar).
Specifically,
the dismissal was based on the applicants' alleged failure to
establish
locus standi
and unreasonable delay in instituting the application.
[3]
The first applicant, Jurnic Properties CC (‘Jurnic
Properties’), owns the land upon
which the second applicant,
July Motor CC (‘July Motors’), operates a filling station
together with related businesses.
Where contextually appropriate,
these parties are collectively referred to as ‘the applicants’.
Opposition to the application
was raised solely by Dalamay and Mr
Omar, who are also the only respondents participating in the appeal.
Accordingly, all subsequent
references to ‘the respondents’
pertain exclusively to Dalamay and Mr Omar.
[4]
Following the refusal of leave to appeal by the high court on 17 May
2024, the applicants successfully
petitioned this Court for leave to
appeal. This Court subsequently directed that: (a) the application
for leave to appeal be referred
to oral argument in accordance with
s
17(2)
(d)
of the
Superior Courts Act 10 of 2013
; and (b) the
parties should be prepared, if required, to address the Court on the
substantive merits of the appeal.
[5]
The consideration of this application involves two stages. The
question in the first stage of
the process is whether leave to appeal
should be granted and, if granted, then the determination of the
appeal itself. It was held
in
Body
Corporate of Marine v Extra Dimensions 121 (Pty) Ltd
[2]
:
‘
This
is an application for special leave to appeal and, if granted, the
determination of the appeal itself. The two judges who considered
the
application referred it for oral argument in terms of the provisions
of
s
17(2)(
d
)
of
the
Superior
Courts Act 10 of 2013
.
Different
considerations come into play when considering an application for
leave to appeal as compared to adjudicating the appeal
itself. As to
the former, it is for the applicant to convince the court that it has
a reasonable prospect of success on appeal.
Success in an application
for leave to appeal does not necessarily lead to success in the
appeal. Because the success of the application
for leave to appeal
depends,
inter
alia
,
on the prospects of eventual success of the appeal itself, the
argument on the application would, to a large extent, have to address
the merits of the appeal. Here, inasmuch as the appeal raises a point
of statutory interpretation, the application had to succeed.
On that
score, the high court has spoken and, absent an appeal, those
judgments will continue to apply. Future litigants are entitled
to
the benefit of this court’s view on the question. In the
circumstances we considered it appropriate, at the hearing of
the
application, to grant leave to the applicant, who will henceforth be
referred to as ‘the appellant’, to proceed
with the
appeal. That opens the door to full consideration of the merits of
the appeal itself.
’
[6]
In the event that the leave to appeal is granted, the following
issues should be considered. First,
whether the high court correctly
determined that the applicants lacked the necessary legal standing to
bring the application; and
second, whether the institution of the
proceedings by the applicant was unreasonably delayed. As the high
court did not consider
the merits of the application, it is also
unnecessary for this Court to do so.
[7]
The assessment of legal standing proceeds on the assumption that the
legal challenge is valid
– a preliminary matter distinct from
the substantive merits of the case. Thus, only those facts pertinent
to the grounds
advanced by the applicants for reviewing the contested
decisions are relevant to this determination and must be presumed to
be
well-founded for the purpose of assessing standing. With respect
to undue delay, the relevant facts are limited to those concerning
when the applicants became aware, or ought reasonably to have become
aware, of the impugned decisions and the underlying reasons
for them.
The
factual background
[8]
The relevant facts can thus be briefly stated. The land on which July
Motors operates a filling
station is approximately 95 meters from the
property. During the latter half of 2020, the applicants became aware
that Dalamay
was planning to establish a filling station near their
businesses. As a result, the deponent to the applicants’
founding
affidavit, Mr Jan Adriaan Rossouw Scheepers (Mr Scheepers),
who is a member of both applicants, met with Dalamey’s
representative,
Mr Zaheer Mayet (Mr Mayet), on 2 October 2020,
to discuss these rumours. According to Mr Scheepers, nothing
conclusive was
achieved at the meeting. He did, however, inform Mr
Mayet that the applicants would oppose any attempt to establish a
filling station
on the property.
[9]
The respondents provided a different account of the meeting.
According to them, Mr Mayet informed
Mr Scheepers about the
alienation of the property and the pending rezoning application. They
asserted that the applicants knew,
or reasonably ought to have known,
about the impugned decisions as at the date of the meeting.
[10]
Between 27 January 2021 and 8 March 2021, the applicants obtained the
following information regarding the
property transactions through
correspondence between their attorneys and the municipality's
attorneys:
(a)
Mr Omar had applied to the municipality to rent the property for a
period of 20 years. The municipality subsequently resolved
to lease
the property to Mr Omar for 10 years, free of charge.
(b)
Mr Omar initially purchased the property for R1 million from the
municipality on 13 December 2018. He later sold the property
to
Dalamay, and the property was registered in Dalamay's name on 10
April 2019.
(c)
On 15 March 2019, the municipal manager issued a power of attorney to
the municipality's conveyancers, authorising them to register
the
transfer of the property from the municipality to Dalamay. This was
done pursuant to a resolution allegedly passed by the municipal
council on 13 January 2019.
(d)
An application for the rezoning of the property was submitted on 3
December 2020, published the following day, and invited comments
or
objections to be lodged by 4 January 2021.
[11]
Despite repeated further requests, the applicants were unable to
obtain any additional information
from the municipality. Notably, the
municipality has failed to provide any reasons for its decision
regarding the alienation of
the property, which, according to the
applicants, raises serious concerns about transparency and
accountability.
[12]
The applicants launched their review application on 9 June 2021, in
terms of s 6(2) of the Promotion of Access
to Administrative Justice
Act 3 of 2000 (PAJA). It is undisputed that, although the
municipality submitted several records –
purportedly in
compliance with rule 53 – none of these constitute an adequate
record as required by the rule. The records
lacked essential
information, including, among others, the details of the processes
undertaken and the rationale for the decision
to sell the property
without a public procurement process; the factors considered by the
municipality in making this decision;
and whether the public had been
notified of the decision and afforded opportunity to provide comment
or raise objections to the
sale. Consequently, the municipality has
yet to furnish reasons for the challenged decisions. Furthermore, it
has neither opposed
the application nor, at a minimum, filed an
explanatory affidavit to assist the court in its consideration of the
review application.
The
review grounds
[13]
The applicants presented the following review grounds in their
application. First, they contended that the
municipality’s
decision to dispose of the property was made without proper adherence
to the relevant legal requirements.
Specifically, s 79(18) of the
Local Government Ordinance, s 14 of the Municipal Finance Management
Act 56 of 2003, and the municipality’s
own Supply Chain
Management policy, all prescribe mandatory procedures that must be
followed when a local authority intends to
sell immovable property.
The applicants argued that, as these provisions were not observed,
the sale is void
ab initio
and should therefore be reviewed
and set aside.
[14]
Second, regarding the decision to grant rezoning approval, the
applicants argued that the municipality did
not adhere to the
mandatory requirements set out in the Spatial Planning and Land Use
Management Act 16 of 2013 (SPLUMA). Specifically,
they asserted that
the title deed was not attached to the application that was
submitted, rendering it impossible for the municipality
to determine
whether the proposed land use would conflict with any existing
restrictive title conditions. Additionally, they contended
that the
application failed clearly to identify the specific intended land
use, its scale, the applicable controls, or the relevant
provisions
of the Township Planning Scheme (the Scheme) pertaining to such use.
The applicants further asserted that the rezoning
application did not
provide a motivation for the need and desirability of the proposed
land use or address its sustainability.
Moreover, there was no
attempt to substantiate the application by reference to the
decision-making criteria outlined in s 42 of
SPLUMA.
[15]
Third, regarding the granting of the environmental authority, the
applicants submitted that in accordance
with s 41(2) of the
regulations enacted under the National Environmental Management Act
107 of 1998 (NEMA), the municipality was
required to provide notice
to ‘owners, persons in control of, and occupiers of land
adjacent to the site where the activity
is to be undertaken’.
According to the Public Participation Guideline issued by the
National Department of Environmental
Affairs, the environmental
assessment practitioner had a legal obligation to identify all
stakeholders whose rights might be affected
and to issue appropriate
notifications to them. They asserted that they only became aware that
the environmental authorisation
for the establishment of a filling
station had been granted when the planning application was disclosed
to them, accompanied by
a copy of the environmental authorisation. At
no point were they informed that an application for environmental
authorisation had
been submitted, nor were they invited to comment on
such an application.
Application
for leave to appeal
[16]
I now address the legal principles applicable to applications for
leave to appeal. Section 17(1)
(a)
of the Superior Courts Act
provides:
‘
(1)
Leave to appeal may only be given where the judge or judges concerned
are of the opinion that–
(a)
(i)
the appeal would have a reasonable prospect of success; or
(ii)
there is some other compelling reason why the appeal should be heard,
including conflicting judgments on the matter under consideration….’
[17]
In
S
v Smith
[3]
this Court explained the test for leave to appeal as follows:
‘
What
the test of reasonable prospects of success postulates is a
dispassionate decision, based on the facts and the law, that a
court
of appeal could reasonably arrive at a conclusion different to that
of the trial court. In order to succeed, therefore, the
appellant
must convince this court on proper grounds that he has prospects of
success on appeal and that those prospects are not
remote but have a
realistic chance of succeeding. More is required to be established
than that there is a mere possibility of success,
that the case is
arguable on appeal or that the case cannot be categorised as
hopeless. There must, in other words, be a sound,
rational basis for
the conclusion that there are prospects of success on appeal.’
(
Citations are excluded.)
[18]
In considering the application for leave to appeal, and in the
interest of concision, I shall consider the
prospects of success
alongside the merits of the appeal. Given their interrelated nature,
it is most effective to address these
issues jointly.
Findings
of the High Court
[19]
The high court found that, although the applicants asserted that the
establishment of a new business on the
property would have
far-reaching consequences for their businesses, they did not provide
sufficient factual evidence to demonstrate
the specific manner or
extent to which they would be prejudiced. Furthermore, irrespective
of the municipality’s alleged
failure to comply with statutory
obligations, the applicants were still required to show a real and
direct interest in consequences
of the impugned decisions. Thus, the
high court stated, in the absence of concrete evidence illustrating
the effect on their rights,
the applicants could not satisfy the
requirements for legal standing necessary for judicial review under
PAJA.
[20]
The high court furthermore found that the applicants’ stance in
the review application is intended
as a deterrent and restrictive
practice ‘which is seeking to achieve concentration of
ownership and control of the petroleum
economy in and around the
subject property’. The high court concluded that the
application therefore amounts to anti-competitive
conduct, aimed at
establishing a monopolistic hold on the petroleum industry in Delmas.
[21]
With respect to the issue of undue delay, the high court determined
that the relevant period commenced on
2 October 2020, when Mr
Scheepers was notified of the property's purchase and the rezoning
application. This conclusion was reached
after accepting the
respondents’ account, consistent with the principle established
in
Plascon
Evans
.
[4]
Accordingly,
the high court held that the challenge to the municipality’s
decision to sell the property was instituted outside
the 180-day
period stipulated by s 7(1) of PAJA.
[22]
Regarding the challenges against the rezoning approval and
environmental authority, the high court determined
that the
applicants did not offer a satisfactory justification for their
failure to initiate the application within a reasonable
timeframe
after becoming aware of the contested decisions. Consequently, the
applicants were found to have unduly delayed the commencement
of
review proceedings, despite filing within the 180-day period. The
high court further noted that, in the absence of a request
for
condonation under s 9 of PAJA and an explanation for the delay, it
was obliged to dismiss the review application on these grounds.
Discussion
and analysis
Legal
standing
[23]
Regarding their challenge to the alienation of the property, the
applicants stated
that a new proximate filling
station –
only 95 meters from their business –
will significantly affect their rights and
interests.
They further contended that they are entitled to an
opportunity to comment and object whenever administrative action, as
defined
in PAJA, may impact their rights or interests. In addition to
their right to participate in administrative processes, the
applicants
also asserted their entitlement to verify municipal
compliance with statutory procedures regarding property alienation.
Specifically,
they maintained that when the municipality undertakes
actions that may result in amendments to the Scheme, due process must
be
followed. If due process is not observed, they have the right to
seek appropriate relief from a court of law. Furthermore, as citizens
and ratepayers of the municipality, they emphasised their right to
ensure that the municipality acts in an open, fair and transparent
manner, treating all its citizens equally and fulfilling its
constitutional and statutory obligations.
[24]
The applicants submitted that instead of following the legally
mandated and transparent procedures, the municipality
opted for a
non-transparent process, providing no justification for either the
decision to dispose of the property or the method
by which it was
executed. This raise concerns pertinent to the interests of justice,
beyond the question of their legal standing.
They further contended
that the sale of the property at a price significantly below its
municipal valuation – which the applicants
contended is some
R27 million – raises concerns of public interest. The
transaction therefore warrants judicial scrutiny
to ensure that
public assets are transferred appropriately and equitably.
[25]
Regarding the rezoning application, the applicants contended that
there can be little doubt that the rezoning
of the property and the
consequent amendment to the Scheme – considering the proximity
of the property to their businesses
– triggered a direct and
substantial interest in that administrative action. They further
contended that the decision to
alienate the property, which triggered
the rezoning, could prejudice them, as the rezoning and intended land
use in the property
will be prejudicial to them. This is borne out by
the fact that 25 percent of their business will be lost to the new
business,
which will be conducted on the property pursuant to the
rezoned land use. They contend that their interest is therefore real
and
not hypothetical. Their rights and interests are directly
affected by the conduct of the municipality, which is exacerbated by
the proximity of the property to their businesses.
[26]
Regarding their standing in respect of the administrative decision
pertaining to the environmental authority,
the applicants submitted
that that decision, together with the rezoning approval, enabled a
new business – specifically,
a filling station – to
operate on the site. This sequence of actions has a significant
impact on their existing businesses
due to the property’s
immediate proximity. The assessment report used to motivate for the
environmental approval states that
a substantial portion of their
business (25 percent) will be lost to the new enterprise on the
rezoned property. Given these circumstances,
the environmental
authority and land use approval will directly and substantially
affect their operations, making their interest
both real and
substantial.
[27]
Since the applicants seek to protect their right to just
administrative action conferred by s 33 of the Constitution
and
regulated by PAJA, their standing must be determined under the Bill
of Rights. Section 38 provides:
‘
Anyone listed in
this section has the right to approach a competent court, alleging
that a right in the Bill of Rights has been
infringed or threatened,
and the court may grant appropriate relief, including a declaration
of rights. The persons who may approach
a court are–
(a)
anyone acting
in their own interest;
(b)
anyone acting
on behalf of another person who cannot act in their own name;
(c)
anyone acting
as a member of, or in the interest of, a group or class of persons;
(d)
anyone acting
in the public interest; and
(e)
an association
acting in the interest of its members.’
[28]
To establish
locus
standi
,
a litigant must demonstrate a direct and substantial interest in the
subject matter of the dispute. This typically requires showing
that
their rights or interests have been, or are likely to be, adversely
affected by the action or decision being challenged. Courts
generally
require that the connection between the litigant and the matter at
hand is not hypothetical or abstract, ensuring that
only those with a
genuine stake in the outcome are permitted to bring legal
proceedings.
[5]
The Constitutional Court in
Ferreira
v Levin NO and Others; Vryenhoek and Others v Powell NO and
Others
,
[6]
confirmed that a party must show a sufficient interest, and that the
interest must not be abstract, academic, or hypothetical,
but real
and substantial.
[29]
In
Giant
Concerts CC v Rinaldo Investments (Pty) Ltd and Others
(
Giant
Concerts
),
[7]
the Constitutional Court affirmed the principle that own-interest
legal standing is broader than traditional common law standing.
However, litigants must still demonstrate that their rights or
interests are directly affected by the law or conduct being
challenged.
Unlike common law, the Constitution does not require a
‘sufficient, personal and direct interest’, but it does
require
that the contested law or decision has a direct impact on the
litigant’s rights or potential interests. The requirement for
demonstrating affected interests should be interpreted generously and
broadly to align with constitutional objectives. However,
the
interest asserted must still be real, not hypothetical or academic
and must also serve the interests of justice.
A
further important consideration in matters of own-interest standing –
particularly in cases concerning matters of public
interest and
constitutional accountability – is that the interests of
justice may necessitate judicial caution in dismissing
cases solely
on grounds of legal standing.
[8]
[30]
In my view, the high court did not correctly apply the legal
principles governing
locus
standi
as set out in s 38 of the Constitution and further elucidated by the
Constitutional Court in
Giant
Concerts
and
Tulip
Diamonds FZE v Minister of Justice & Constitutional Development
.
[9]
In
particular, the high court failed adequately to assess whether the
applicants presented a real and substantial interest, considering
all
relevant factors. The court found that the applicants’ claim
that a nearby competing filling station would harm their
businesses
did not establish
locus
standi
.
However, this conclusion ignores the compelling inference that a new,
similar business nearby could negatively affect existing
clientele.
Furthermore, it is uncontested that the applicants’ businesses
will lose a considerable share of their customers
to the new filling
station. Therefore, as ratepayers and business proprietors operating
near the relevant property, the applicants
hold a direct interest in
its disposition.
[31]
Statutory prescripts and municipal procurement policies require that
the alienation of immovable municipal
property be conducted
transparently and equitably, affording all interested parties an
opportunity to object or submit bids. This
ensures not only the
protection of affected parties’ rights but also that the
municipality secures the optimal price for
its property.
Furthermore,
the review application involves considerations of public interest,
specifically the constitutional mandate for just
administrative
action and adherence to procurement legislation in the disposal of
state property. This is an important consideration
when courts assess
own-interest standing in terms of s 38 of the Constitution.
[10]
By
failing to evaluate rigorously these concrete interests and
established legal standards, the high court erred in its analysis
of
the applicants’ legal standing.
[32]
The same considerations apply to the applicants’ legal standing
in relation to the rezoning of the
property. It is self-evident that
the applicants, who operate businesses close to a property subject to
a rezoning application,
possess a legitimate interest in the outcome
of such an application. Accordingly, the applicants were entitled to
be notified of
the application and afforded the opportunity to submit
objections. This entitlement is particularly relevant given that it
is uncontested
that the purpose of the rezoning was to allow Dalamay
to establish a new filling station on the property.
[33]
Finally, there can be little dispute regarding the applicants’
legal standing in respect of the environmental
authorisation. The
report that was used to arrive at a decision on whether the
environmental authorisation should be granted for
purposes of
developing a filling station, unequivocally states that a significant
portion of the estimated fuel sales of the new
site will be taken
from the applicants’ filling station. On this basis alone, the
applicants clearly had an interest in the
outcome of the application
for environmental authority in terms of NEMA.
For
all these reasons, I find that the applicants have demonstrated a
direct and substantial interest in the challenged decisions.
Unreasonable
delay
[34]
Section 7(1) of PAJA provides that proceedings for judicial review in
terms of s 6(1) must be instituted
without unreasonable delay and, if
no internal remedy exists, not later than 180 days after the date ‘on
which the person
concerned was informed of the administrative action,
became aware of the action and the reasons for it or might reasonably
have
been expected to become aware of the action and the reasons’.
Importantly, it is not only the knowledge of the administrative
act
that triggers the 180-day period but also knowledge of the underlying
reasons.
[35]
Mr Mayet did not assert that he had communicated the underlying
reasons for the disputed decisions to Mr
Scheepers, nor would such a
claim have been tenable. The municipality made the impugned
decisions, and it was therefore responsible
for providing the
rationale for those actions. It is undisputed that the municipality
has yet to provide any explanation for the
decisions. Thus, at most,
the respondents have demonstrated that Mr Mayet informed Mr Scheepers
of the property purchase and the
pending rezoning application. For
the reasons explained above, this was not sufficient to trigger the
commencement of the 180-day
timeframe. Consequently, the high court
erred in calculating the 180-day period from 2 October 2020,
resulting in a fundamental
flaw in its reasoning on the issue of
unreasonable delay.
[36]
This, however, is not the end of the enquiry. Section 7(1) of PAJA
provides that a review application must
be brought without
unreasonable delay, contemplating that the issue of unreasonable
delay may arise even if the application is
brought within the
prescribed period. Section 9(1) of PAJA allows for the condonation of
the late institution of review proceedings
‘by agreement
between the parties or, failing such agreement, by a court on
application by the person or administrator concerned’.
Section
9(2) provides that a court may grant condonation in terms of s 9(1)
‘where the interests of justice so require’.
[37]
Condonation for delay in terms of PAJA is dealt with on a similar
basis to condonation for delay in terms
of the common law. The first
enquiry is whether there has been a delay of more than 180 days,
[11]
as opposed to the more elastic concept of an unreasonable delay in
the common-law rule. The second, discretionary, stage follows
on a
finding that a delay of more than 180 days has occurred. The question
is then whether that delay should be condoned.
[12]
If the review application was not brought within the 180-day period
and there is no application for condonation, it is the end
of the
inquiry, and the Court is constrained to dismiss the application.
[38]
If a court is required to consider the issue of unreasonable delay in
the context of a review application
launched within the 180-day
period, the approach is similar to that under the common law. As the
Constitutional Court explained
in
Khumalo
[13]
– which has become known as the ‘
Khumalo
test’ – the common law delay rule involves a two-stage
enquiry. First, a court must determine whether a delay in the
launch
of a review application was unreasonable. If not, the enquiry ends
there, and the court proceeds to the remaining issues.
If so, the
court proceeds to the second leg or stage of the enquiry. That is,
whether the unreasonable delay ought to be condoned.
If good grounds
are put up for condonation, the court proceeds to the remaining
issues. If inadequate grounds are put forward,
the court will decline
to hear the application and dismiss it on account of the undue delay
in its institution.
[14]
[39]
In considering whether to condone the unreasonable delay, the court
will consider various factors, including
the length and reason for
the delay; the prospects of success; any prejudice to the parties;
the nature of the decision challenged;
the behaviour of both the
applicant and the respondent, including whether the applicant acted
promptly once aware of the decision
and its reasons; and the public
Interest and the interests of justice.
[40]
Upon consideration of the facts of this case, it is evident that
whatever information Mr Mayet may have communicated
to Mr Scheepers
during the meeting held on 2 October 2020 does not amount
to knowledge of the disputed administrative
decision or its
underlying rationale, as contemplated by s 7(1) of PAJA. First, the
applicants were justified in disregarding Mr
Mayet’s
statements, as he represented Dalamay, the beneficiary of the
purportedly unlawful decision. Second, as previously
noted, Mr Mayet
did not assert that he had explained the reasons for the decisions to
Mr Scheepers. In any event, only the municipality
could provide such
reasons.
[41]
Therefore, at best for the respondents, the 180-day period must be
calculated from 27 January 2021,
when the applicants’
attorneys first commenced correspondence with the municipality. This
conclusion applies equally to the
decisions relating to the
applications for rezoning and environmental authority, which were
both taken after the decision to alienate
the property. The
application was instituted on 9 June 2021, which was well within the
180-day period.
[42]
The question then arises whether the applicants nevertheless delayed
unreasonably in initiating the review
proceedings. Upon careful
consideration, the evidence indicates that they did not. The finding
that the 180-day period commenced
in January 2021 is generously
favourable to the respondents, particularly given the municipality’s
obstructive conduct and
its failure to provide reasons for the
disputed decisions. It would therefore be unreasonable to conclude
that the applicants could
reasonably have become aware of the
impugned decisions and the underlying reasons before January 2021.
[43]
Moreover, the applicants can hardly be faulted for taking
steps to establish the true facts before launching their review
application.
As stated, it is uncontested that several records
submitted by the municipality under rule 53 did not provide any
clarity as to
the processes followed and the reasons for the
decisions. The reasons remain outstanding. This is significant in
light of s 7(1)
of PAJA which requires both knowledge of the
administrative action and its rationale before the limitation period
commences. The
applicants were thus compelled to pursue review
proceedings without any explanation from the municipality concerning
the basis
for the contested decision. Accordingly, I find that the
applicants did not act unreasonably in instituting the review
proceedings.
[44]
It is unnecessary for me to address the high court’s
obiter
remarks regarding anti-competitive behaviour by the applicants and
the failure to exhaust internal remedies. These issues were
understandably not pursued on appeal by any of the parties.
[45]
For all these reasons, I find that the applicants established the
necessary
locus standi
to challenge the impugned decisions and
that they have not delayed unreasonably in doing so. It follows that
they should be granted
leave to appeal, the appeal must be upheld
with costs, and the matter should be remitted to the high court for
adjudication of
the review application.
[46]
In the result the following order is made:
1.
The decision of the high court refusing leave to appeal against its
order of 28 March 2024
(the high court’s order) is
set aside.
2.
The applicants are granted leave to appeal to this Court against the
high court’s
order.
3.
The appeal against the high court’s order is upheld with costs
including the costs
of
two counsel, where so employed.
4.
The high court’s order is set aside and replaced with the
following order:
‘
The
points in limine raised by the third and fourth respondents are
dismissed with costs including the costs of two counsel, where
so
employed.’
5.
The matter is remitted to the Mpumalanga Division of the High Court,
Middelburg, for consideration
of the review application.
J E SMITH
JUDGE
OF APPEAL
Appearances
For
the applicants:
M
Majozi and V Qithi
Instructed
by
Ivan
Pauw & Partners Attorneys, Pretoria
Phatshoane
Henney Attorneys, Bloemfontein
For
the respondents:
JA
Venter and N Satekge
Instructed
by:
Adriaan
Venter Attorneys & Associates, Pretoria
Hendré
Conradie Inc, Bloemfontein.
[1]
The
property is known as portion 120 (a portion of portion 4) of the
Farm Witklip 232, Delmas, Mpumalanga.
[2]
Body
Corporate of Marine v Extra Dimensions 121 (Pty) Ltd
[2019]
ZASCA 161
;
2020 (2) SA 61
(SCA) para 1.
[3]
S
v Smith
[2011]
ZASCA 15
;
2012 (1) SACR 567
(SCA) para 7.
[4]
Placon-Evans
Paints Ltd v Van Riebeeck Paint (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
at 634E-635D.
[5]
Jacobs
en 'n Ander v Waks en Andere
1929
AD 157.
[6]
Ferreira
v Levin NO and Others; Vryenhoek and Others v Powell NO and Others
1996
(1) SA 984
(CC), para 165.
[7]
Giant
Concerts CC v Rinaldo Investments (Pty) Ltd and Others
[2012] ZACC 28
;
2013 (3) BCLR 251
(CC) (
Giant
Concerts
)
.
[8]
Giant
Concerts
fn 5 para 34.
[9]
Tulip
Diamonds FZE v Minister of Justice & Constitutional Development
2013(20
SACR 443 para 31.
[10]
Giant
Concerts
fn
5.
[11]
Section
7(1)
of the
Promotion of Administrative Justice Act 3 of 2000
.
[12]
Beweging
vir Christelik-Volkseie Onderwys and Others v Minister of Education
and Others
[2012] ZASCA 45
;
[2012] 2 All SA 462
(SCA) para 46.
[13]
Khumalo
v MEC for Education Kwa-Zulu Natal
2014 (5) SA 579
(CC) paras 49 to 52.
[14]
Wolgroeiers
Afslaers (Edms) Bpk v Munisipaliteit van Kaapstad
1978 (1) SA 13
(A) at 39C-D.
sino noindex
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