Case Law[2023] ZAGPJHC 849South Africa
Golden Falls Trading 125 (Pty) Ltd v City of Ekurhuleni Metropolitan Municipality and Others (7982/2020) [2023] ZAGPJHC 849 (31 July 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
31 July 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Golden Falls Trading 125 (Pty) Ltd v City of Ekurhuleni Metropolitan Municipality and Others (7982/2020) [2023] ZAGPJHC 849 (31 July 2023)
Golden Falls Trading 125 (Pty) Ltd v City of Ekurhuleni Metropolitan Municipality and Others (7982/2020) [2023] ZAGPJHC 849 (31 July 2023)
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sino date 31 July 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case Number:
7982/2020
In
the matter between:
GOLDEN
FALLS TRADING 125 (PTY) LTD
Applicant
And
THE
CITY OF EKURHULENI METROPOLITAN MUNICIPALITY
1
st
Applicant
THE
BUILDING CONTROL OFFICER OF THE CITY OF
EKURHULENI
METROPOLITAN MUNICIPALITY
2
nd
Applicant
CARNIVAL
JUNCTION PROPERTY DEVELOPMENT (PTY) LTD
3
rd
Applicant
BROOKWAY
PROPERTIES (PTY) LTD
4
th
Applicant
DALMAR
KONSTRUKSIE (PTY) LTD
5
th
Applicant
THE
MEC: GAUTENG DEPARTMENT OF AGRICULTURE AND
RURAL
DEVELOPMENT
6
th
Applicant
MORBEI
INVESTMENTS (PTY) LTD
7
th
Applicant
RILAREX
(PTY) LTD
8
th
Applicant
ELEFNIX
(PTY) LTD
9
th
Applicant
OLGARS
INVESTMENTS (PTY) LTD
10
th
Applicant
MOTUS
CORPORATION (PTY) LTD
11
th
Applicant
ARCH
IMPORT AND EXPORT CC
12
th
Applicant
JSF
PROPERTIES (PTY) LTD
13
th
Applicant
SURVEYOR-GENERAL,
PRETORIA
14
th
Applicant
REGISTRAR
OF DEEDS, JOHANNESBURG
15
th
Applicant
MINISTER:
SOUTH AFRICAN DEPARTMENT OF WATER
AND
SANITATION
16
th
Applicant
BODY
CORPORATE OF THE SS CARNIVAL JUNCTION
BUSINESS
PARK
17
th
Applicant
JUDGMENT
Mia, J
Introduction
[1] In earlier
proceedings before this court under the same case number, the
applicant brought an application on an urgent basis
to obtain
interdictory relief to prevent:
1.1 the developer from
commencing with construction activities on the property;
1.2 the municipality from
processing any applications in terms of the National Building
Regulations and Building Standards Act 103
of 1977 (NBRBSA);
1.3 the municipality from
concluding any engineering service agreements with the developers;
1.4 the municipality and
developers from giving effect to the impugned decisions in Part B of
the application and
1.5 the sixth respondent
from considering and processing new applications for environmental
authorisation in respect of the subject
properties.
The developer gave an
undertaking not to commence construction activities,
initially until June 2020
and extended it until December 2020. For this reason,
the application was
removed from the urgent roll. The applicant maintains it
is academic, and it is
not required.
[2] The parties proceeded
on Part B of the application. The relief sought thereunder is in the
following terms:
“
B1.
That the decisions of the first respondent dated 23 January 2013 and
26 September 2016(to be found on pages 79, 128, and 134
of the
record), by virtue of which all pending land development applications
lodged in terms of the Development Facilitation Act,
67 of 1995 (Act)
were converted into purported land use change applications, lodged in
terms of the Town Planning and Townships
Ordinance(Ordinance 15 of
1986), be reviewed and set aside;
B2. That the
decisions of the first respondent, by virtue of which the approval of
the Township Dalpark Extension 19,
by the erstwhile Development
Tribunal on 20 October 2011, in terms of the
Development Facilitation
Act (Act
67 of 1995), has been proclaimed on 13 December 2012,
alternatively on 20 November 2014, by way of notices attached hereto
and
marked as annexures A and B respectively, be reviewed and set
aside;
B3. That the
decision of the first respondent to amend the conditions of the
approval imposed by the erstwhile Gauteng Development
Tribunal in
terms of the
Development Facilitation Act (Act
67 of 1995), in
respect of the Township known as Dalpark Extension 19 on 2 December
2014, purportedly in terms of the Township
Planning and Townships
Ordinance (Ordinance 15 of 1986)(pages 95-100 of the record) be
reviewed and set aside;
B4. That the decisions of
the first respondent to proclaim amendment scheme 619 (approved in
terms of the Development Facilitation
Act 67 of 1995) by the
erstwhile Gauteng Development Tribunal on 20 October 2011) in terms
of s 125 of the Town Planning and Townships
Ordinance (Ordinance 15
of 1986) on 22 November 2019 and 13 February 2020 respectively,
insofar as same pertains to Erven 3110
and 3087 of the Township
Dalpark Ext 19, copies of which are attached hereto marked Annexure C
and D respectively, be reviewed
and set aside;
B5. That the
decision of the first respondent by virtue of which the rezoning of
the property known as Erf 3087 Dalpark Extension
19 and Amendment
scheme R0104 have been approved on 5 and 13 February 2020
respectively, be reviewed and set aside and the consequential
publication of this approval in the provincial Gazette on 21 February
2020, a copy of which is attached hereto and marked as Annexure
G, be
declared null and void and of no further force or effect;
B6. That the
current pending Rezoning Application lodged during August 2015 with
the first respondent in respect of the property
known as Erf 3110
Dalpark Extension 19 Township, be declared invalid and not
processable by the first respondent.
B7. That the
decision of the first respondent to, on 27 February 2019,
alternatively 9 March 2020, approve of site Development
plans in
respect of Erf 3087 in the Township Dalpark Extension 19 (pages 331
and 374 of the Record), be reviewed and set aside;
B8. That the
decision of the sixth respondent dated 14 September 2011 (pages 672
to 674 of the record), by virtue of which
the existing “wetland”
or “watercourse” on Erf 3110 has been declared “manmade’,
not worthy
of protection and that encroachment thereon shall be
exempted from water use licence requirements in terms of section 21
of the
National Water Act (Act 36 of 1998), be reviewed and set
aside;
B9. That the
decision of the sixth respondent dated 3 September 2012 (page 622 of
the record), by virtue of which the site
sensitivity Layout Plan has
been approved without reflecting the watercourse on Erf 3110 as a
sensitive Environmental Feature to
be retained and to be protected, a
copy of which is attached hereto marked as Annexure H, be reviewed
and set aside;
B10. That the
decision of the sixth respondent dated 17 March 2016, by virtue of
which the Environmental Authorisation issued
on 3 December 2009 in
terms of the National Environmental Management Act (Act 107 of 1998),
inter alia in respect of the property
mentioned in paragraph B5
above, has been amended and a new Environmental Authorisation in
respect of such property has been approved,
a copy of which is
attached hereto marked as annexure I, be reviewed and set aside;
B11. That any
other approvals, consents and authorisations given or granted by the
first, second and sixth respondent in
execution of the decisions
mentioned in paragraphs B1, B2, B3, B4, B5, B6, B7, B8, B9 and B10
above, in respect of the properties
mentioned in paragraphs B5 and B6
above, be declared null and void and of no further force or effect;
B12. That the
relief sought in paragraphs B1 to B11 above shall not have the effect
of divesting the seventh to the thirteenth
respondents as well as the
seventeenth respondent of any rights they would have been entitled
to, but for the review and setting
aside of the relevant decisions;
B13. That the
twelfth and thirteenth respondents respectively be directed to
administratively give effect to the orders granted
above insofar as
same pertain to their respective data, records and offices;
B14. That insofar
as it may be required, condonation be granted to the applicant in
terms of section 9 of the Promotion of
Administrative Justice Act
(Act 3 of 2000) for any delay in the filing of this Application for
Review and more specifically the
relief sought in terms of paragraphs
B1, B2, B3, B8 and B9 above;
B15. That any of
the respondents opposing the relief sought in Part B of this Notice
of Motion be ordered to pay the costs,
jointly and/or severally, the
one paying the others to be absolved, which costs shall include the
costs consequent to the employment
of 2 (two) counsel.”
The first respondent, the
City of Ekurhuleni Metropolitan Municipality (the Municipality), as
well as the second to seventeenth
respondents oppose the application.
[3] The applicant, Golden
Falls Trading 125 (Pty) Ltd, is the owner of a large regional
shopping mall in Brakpan, Ekurhuleni, known
as Carnival Mall. The
first respondent is the City of Ekurhuleni Metropolitan Municipality
(the Municipality). The second respondent
is the Building Control
Officer of the Municipality. The third respondent, Carnival Junction
Property Development (Pty) Ltd (the
Developer), is a registered
company and the owner of Dalpark Extension 19. It has developed
various erven and sold some erven in
the township to parties who are
not cited, although they have an interest in the matter. The fourth
respondent is Brookway Properties,
a private company duly registered
in terms of the company laws of South Africa with its address at Unit
1, K109, 1 Tinus de Jongh
Street, Van Eck Park, Brakpan. The fifth
respondent Dalmar Konstruksie (Pty) Ltd is a private company duly
registered in terms
of the company laws of South Africa with its
address at Unit 1, K109, 1 Tinus de Jongh Street, Van Eck Park,
Brakpan. The sixth
respondent is the MEC: Department of Agriculture:
Gauteng (the MEC), in his capacity as the authorised Environmental
Authority
for the province of Gauteng, in terms of the National
Environmental Management Act 108 of 1998 (NEMA). The seventh
respondent
is Morbei investments (Pty) Ltd, a private company
registered in terms of the company laws of the Republic of South
Africa, with
its registered address at Eastwood Office Park, Baobab
House, 290 Liz John Street, Lynwood Ridge, Pretoria, Gauteng 0040.
The eighth
respondent is Rilarex (Pty) Ltd, a private company duly
registered in terms of the company laws of the Republic of South
Africa
with its address at 3 Gwen Lane, Sandton. The ninth respondent
is Elefnix (Pty) Ltd, a private company duly registered in terms
of
the company laws of South Africa with its registered address at 11
Beechwood Street, Dalpark Extension 19, Brakpan, Gauteng.
[4]
The tenth respondent is Olgars Investments (Pty) Ltd, a private
company duly registered as such in terms of the company laws
applicable in the Republic of South Africa, with registered address
at 2 Hull Road, Ferryvale, Nigel, Gauteng, 1490. T
he
tenth respondent is the registered owner of the alleged Remainder
of
Erf 3111 in the Township. The applicant cited Olgars in this
application insofar as it may have an interest in the relief sought
in terms of paragraphs 2 and 3 of the Amended Notice of Motion.
Whilst it does not seek relief against the tenth respondent, and
does
not seek a cost order against it, unless the application is opposed.
The tenth respondent opposed the application as they
allege their
interests are severely compromised, for reasons that will become
apparent below.
[5] The applicant joined
the eleventh to seventeenth respondents in this application almost a
year after the application was lodged,
upon receiving a record from
the Municipality. The applicant avers that the relief sought will
have no impact on the seventh to
seventeenth respondents, who are
cited only because of their interest in the matter.
Background Facts
[6] In
2010, the Developer lodged a land development application for the
approval of Badenhorst Estate, Dalpark Ext 19 Township,
in terms of
the Development Facilitation Act 67 of 1995 (DFA). In the same year
and again in 2011, the applicant lodged an objection
before the
Gauteng Development Tribunal (the Tribunal) against the Developer’s
application. Despite the objection, the Developer’s
land
development application was granted. The applicant then lodged
an appeal with the Tribunal. On 27 February 2012, the
application for
an appeal by the applicant against the Tribunal’s decision was
dismissed. As provided for in NEMA and s21
of the National Water Act
36 of 1998 (the Water Act), the applicant then lodged an appeal with
the MEC against the environmental
authorisation granted in respect of
Badenhorst Estate. The MEC dismissed the appeal. Dissatisfied with
the results, the applicant
lodged an urgent application in the
Gauteng North Division of the High Court, Pretoria, pending a review
brought by it to set aside
the decision of the MEC to approve the
environmental authorisation for the entire Badenhorst Estate as well
as the Tribunal’s
decision to dismiss the applicant’s
appeal. The High Court dismissed the application for review with
costs
[1]
.
[7]
The third respondent is still the registered owner of Erven 3087 and
3110. It intends to develop a community shopping centre
on the
property in phases. This would include retail offerings. Carnival
Junction Business Park was developed on a portion of Erf
3089 in
Dalpark Extension 19. A sectional title scheme has been registered,
and eight units were sold and transferred to new owners
as of 19
February 2018. One unit was sold and transferred on 28 November 2019.
It is this possibility of another regional retail
facility on the
doorstep of the mall owned by the applicant that appears to inform
the current proceedings and review. The applicant
seeks to review and
set aside various decisions taken by the Municipality and the MEC on
the basis that the decisions are
unlawful because they were made in
terms of the DFA which was declared unconstitutional by the
Constitutional Court in
Johannesburg
Metropolitan Municipality v Development Tribunal and others
[2]
and
because the MEC granted authorisation in relation to a watercourse
which the applicant contends is contrary to both NEMA and
the Water
Act and does not protect the environment.
[8]
The applications for the Developer to the DFA were advertised on 17
September 2008 and 24 September 2008 respectively. When
the applicant
objected, the Developer withdrew the application. Subsequently, the
Developer submitted a fresh application. The
applicant did not object
after the Developer submitted a further application for development
rights. The Municipality, whilst it
initially supported the
applicant’s objection to the Developer’s application and
supported the restrictions imposed
to protect the applicant’s
exclusive economic rights in the area, later reconsidered its
position, which appeared to favour
only the applicant’s
economic position to the detriment of other competing economic
interests. Having considered that its
support of the applicant was
advised to be unlawful as it contravened the
Competition Act 89 of
1998
and was contrary to the competition laws in South Africa, it
withdrew its support for the restrictions imposed
[3]
.
Moreover, the restrictions were contrary to the Ekurhuleni
Metropolitan Spatial Development Framework. Any official who argued
in favour of the applicant’s exclusive retail rights or a
restrictive practice to the exclusion of other retail rights did
not
have the authority to do so from the Municipality.
The present review
[9]
The applicant brought an urgent application which resulted in the
Developer furnishing an undertaking to cease all construction
in
March 2020 due to the national state of disaster. The cease
construction continued until December 2020. As a result, no
development or construction took place from March 2020, when the
state of disaster
[4]
was
declared as desired by the applicant. In April 2021, the matter was
allocated to a judge to ensure the matter was case managed
to ensure
it was ready prior to being set down for hearing. The Municipality
had filed the record requested by the applicant which
resulted in the
applicant filing a substantial supplementary affidavit and amended
notice of motion requesting further relief in
relation to decisions
taken in the interim relating to the Developer’s application
and development.
[10] During the interim
period, the third respondent had, sold portion 1 of Erf 3086 in
Dalpark Extension 19 which was registered
to Arch Import and Export
CC, which planned to develop a filling station on the property.
Portion 2 of Erf 3086 Dalpark Extension
19 was also sold and
transferred and registered in the name of JSF Properties (Pty) Ltd,
which planned to develop shops and showrooms.
The remaining extent of
Erf 3086 was sold and transferred to Rilarex (Pty) Ltd and Morbei
(Pty) Ltd on 21 May 2015 and a Makro
Store was opened in April 2016.
The seventh to nineth respondents contend that they have invested a
substantial amount in
the properties they purchased from the
Developer. They have cumulatively spent no less than R261 168 469.
00 for the
land and improvements to the land, which include the Makro
and wholesale stores. This has entailed providing parking bays,
storage space, wholesale space and office space. The ninth respondent
has established a Build-It store on the land it purchased.
Both
businesses have been operating since 2016. They both aver that they
contribute substantially to the Municipality. The seventh
to ninth
respondents state that the relief sought by the applicant will have
an unintended consequence in that it will affect their
commercial
interests negatively and hold disastrous consequences. They purchased
erven in a township where they believed that the
Township
establishment process and land development rights allocated were
lawfully obtained.
[11] The Developer refers
to the applicant's previous opposition to its application.
Notwithstanding the approval of the application,
the applicant
appealed to the Tribunal and then lodged a review in the High Court,
which was dismissed. The Developer describes
the present application
as vexatious and directed at preventing any competing retail facility
in the area. It maintains that the
applicant wishes to frustrate the
development of Erven 3087 and 3110, which is to be developed into a
regional retail shopping
centre, as it would compete with the mall
belonging to the applicant, who owns the only regional mall in the
area.
Township
Development
[12]
Prior to the Supreme Court of Appeal (SCA) decision in
Johannesburg
Metropolitan Municipality v Development Tribunal and others
[5]
,
township
development fell within the competency of the Provincial Government.
When the Developer first lodged its application for
township
development, land development matters fell within the competency of
the Tribunal established in terms of the DFA.
Developers
also submitted applications in terms of the Townships Ordinance 15 of
1998 (the Ordinance). The Tribunal made decisions
bypassing
the municipal land use planning process on the basis of the DFA. In
addition, various provincial ordinances that predated
the enactment
of the interim Constitution conferred upon local authorities the
authority to regulate land use within the particular
municipal areas.
The DFA, and specifically its chapters V and VI, purported to confer
equivalent authority upon provincial development
tribunals. Section
15 of the DFA established a Tribunal for each province. These
tribunals comprised of persons appointed by the
Premier with the
approval of the provincial legislature.
[13]
In
Johannesburg
Metropolitan Municipality v Development Tribunal and others,
the
Constitutional Court
[6]
,
confirmed the Supreme Court of Appeal’s finding that this
practice of applying different legislations on land development
violates the Municipalities’ right to administer municipal
planning
[7]
, which is listed in
Schedule 4B of the Constitution as a municipal power. The SCA
concluded that when the Constitution provides
that Municipalities
have authority over ‘municipal planning’ it includes land
use planning and management. The Constitutional
Court
[8]
was
called upon to decide the Provincial Government's competency to deal
with town planning-related matters. Having determined that
municipal
planning and land use fall within the competency of Municipalities,
it declared Chapters V and VI of the DFA invalid.
With the
Municipality having the competency to deal with Town Planning
matters, and the Constitutional Court having declared the
provisions
relating to the DFA Tribunal body unconstitutional, it suspended the
order of constitutional invalidity of its judgment
for two years
[9]
to
enable Parliament to enact new legislation. The order provided
as follows
[10]
:
“
5. The
order of constitutional invalidity made by the Supreme Court of
Appeal in respect of Chs V and VI of the
Development Facilitation Act
67 of 1995
is confirmed.
6. Paragraph
2 of that order relating to the suspension of the order of invalidity
is set aside.
7. The
declaration of invalidity is suspended for 24 months from the date of
this order to enable Parliament to correct the
defects or enact new
legislation.”
[14]
During this interim period (2010-2012), the suspension was subject to
the following conditions
[11]
:
“
8.
The
suspension is subject to the following conditions:
(a)
Development
tribunals must consider the applicable integrated-development plans,
including spatial-development frameworks
and urban-development
boundaries, when determining applications for the grant or alteration
of land-use rights.
(b)
No
development tribunal established under the Act may exclude any bylaw
or Act of Parliament from applying to land forming
the subject-matter
of an application submitted to it.
(c)
No
development tribunal established under the Act may accept and
determine any application for the grant or alteration of
land-use
rights within the jurisdiction of the City of Johannesburg
Metropolitan Municipality or eThekwini Municipality, after
the date
of this order.
(d)
The
relevant development tribunals may determine applications in respect
of land falling within the jurisdiction of the City
of
Johannesburg Metropolitan Municipality or eThekwini Municipality only
if these applications were submitted to it before the
date of this
order.
[15] In view of the
declaration of invalidity, the Tribunal could not accept any new
applications for the grant or alteration
of land use rights in a
municipal area. The Tribunals could continue to determine
applications for rezoning and establish townships
that had been
submitted prior to the date of the order. They could also consider
integrated development plans as well as spatial
development
frameworks as well as Urban Development boundaries but could not use
their powers to exclude the operation of certain
laws and bylaws in
respect of land which they were deciding about. The Constitutional
Court prohibited Tribunals from exercising
their purported powers
except with regard to applications that were already submitted to it
for consideration.
[16] The
Constitutional Court’s order was handed down on 18 June 2010.
The Developer’s application in respect
of Badenhorst Estate was
submitted prior to the handing down of the order and declaration of
invalidity. The approval was granted
permanently on 20 October 2011.
This was communicated to the developers on 27 February 2012. The
scheme documents were signed on
13 June 2012 by the DFA Tribunal’s
presiding officer. The application was in terms of the DFA, thus, the
third respondent
and the Municipality contended that it was not
affected by the declaration of invalidity.
[17]
Upon the Constitutional Court’s determination that
municipalities should deal with the granting and alteration
of land
use rights, the Municipality had to determine how to proceed with
applications lodged in terms of the DFA upon the declaration
of
invalidity. It did not process new applications, according to the
DFA, from 18 June 2010. It proceeded to finalise pending
applications, in line with the Constitutional Court's ruling. The
Municipality’s planning department approved guidelines for
the
finalisation of applications on 13 June 2013. These applications were
all finalised in terms of the Ordinance in the absence
of a mechanism
introduced by the national government to address flaws identified by
the Constitutional Court. Later the Spatial
Planning and Land Use
Management Act 16 of 2013 (SPLUMA) was introduced to provide for
uniform, effective, efficient an integrated
spatial planning and land
use management. SPLUMA was promulgated on 25 September 2019. The DFA
applications had become the responsibility
of the Municipality in
view of the decision of the court in
Johannesburg
Metropolitan Municipality v Development Tribunal and others
[12]
.
[18]
In
Bato
Star (Pty) Ltd v Minister of Environmental Affairs
[13]
the
Court held:
“
What will constitute a reasonable decision will depend on the circumstances
of
each case, much as what will constitute a fair procedure will
depend on the circumstances of each case. Factors relevant to
determining
whether a decision is reasonable or not will include the
nature of the decision, the identity and expertise of the decision-
maker,
the range of factors relevant to the decision, the reasons
given for the decision, the nature of the competing interests
involved
and the impact of the decision on the lives and well being
of those affected. Although the review function of the Court now have
a substantive as well as well as procedural ingredient, the
distinction between appeals and reviews continues to be significant.
The Court should take care not to usurp the functions of
administrative agencies. Its task is to ensure that the decision
taken
by administrative agencies fall within the bounds of
reasonableness as required by the Constitution.”
[19] The applicant
seeks the review and setting aside of various decisions made by the
Municipality relating to the Dalpark,
Extension 19 Township,
including Badenhorst Estate encompassing Erven 3087 and 3110. It
argued that the decisions were not properly
considered when regard is
had to the Constitutional Court judgment, which declared the DFA
process invalid. It also argued that
it historically lodged
objections in relation to the development and the Municipality was
required to notify it of any proposed
development and of the MEC’s
authorisations in view of the historical support it enjoyed from the
Municipality and also on
the basis that it had lodged an objection.
The applicant seeks a review in terms of PAJA on various
grounds but of relevance
to this application, is the failure to
notify interested parties of a decision which will adversely affect
them (section 7(a)).
[20] The
Municipality resisted the application on the basis that it was not
required to notify the applicant in person where
the notice had been
published. The applicant could not seek personal notification in view
of the limited resources available to
the Municipality to notify
every interested person(s). The applicant, like every other member of
the public, was required to have
regard to the public notifications
regarding development applications. The applicant’s reliance
placed on the support it
had previously enjoyed, which was restricted
to its exclusive economic right was not only legally untenable, but
it also argued
that the official who supported the applicant’s
restricted right did not carry the Municipality’s authority.
[21]
The Developer contended that the review application was late in terms
of PAJA; the applicant sought condonation belatedly
as an
afterthought in its supplementary affidavit and not at the outset
when the urgent application was launched. The Developer
argued that
the application is unsubstantiated by facts, is late and lacks an
explanation for the period that condonation is required
and stands to
be dismissed. According to the Developer, the applicant has
previously engaged in similar litigation when it objected
to the
Developer’s application and the sixth respondent’s
environmental authorisation. The application was dismissed.
It
submits the same is applicable in the present on the basis that its
condonation ought not to be granted. It also relies on the
rule in
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
[14]
,
MEC
for Health Eastern Cape v Kirland Investment (Pty) Ltd t/a Eye
and Lazer Institute,
[15]
which
was recently confirmed in
Magnificent
Mile Trading 20 (Pty) Ltd v Celliers N.O.
[16]
,
that
an unlawful administrative act serves as a basis or foundation for
the legal validity of later decisions as long as the initial
administrative decision or act remains in existence.
[22] The Developer ’s
submission that the applicant took an unreasonably long time in
bringing the review application in terms
of the
Promotion of
Administrative Justice Act 3 of 2000
, in respect of Part B1, B2, B3,
B8, B9, B14 is considered below.
[23]
It was also argued on behalf of the Developer, that the applicant in
its application, relies on statements that it puts forward
as
undisputed facts. In contrast, the third respondent disputed the
facts relied upon by the applicant and places its own facts
before
this court and argued that on motion proceedings, the dispute should
be determined having regard to the
Plascon
Evans
Rule
[17]
.
The Developer avers that there are disputes of fact and the court
must consider whether the facts averred in the applicant’s
affidavits have been admitted by the respondent together with the
facts alleged by the respondents to justify an order requested.
The time delay
within which the review is brought
[24]
Section 7(1)
of PAJA requires that proceedings for judicial review
must be brought without unreasonable delay and within a period of 180
days
after the date on which the person concerned was informed of the
administrative decision or became aware of the administrative
decision and the reasons therefore. Once the 180-day limit is
reached, the delay is taken to be unreasonable, and the period is
predetermined to be unreasonable by the legislature.
[18]
What
is to be considered is the period by which the applicant could have
become aware of the administrative decision. The Court
in
City
of Cape Town v Aurecon South Africa (Pty) Ltd
[19]
indicated
with regard to knowledge:
“
Section
7(1)
of PAJA does not provide that an application must be brought
within 180 days after the City became aware that the administrative
action was tainted by irregularity. On the contrary, it provides that
the clock starts to run with reference to the date on which
the
reasons for the administrative action became known (or ought
reasonably to have become known) to an applicant.”
[25] The Municipality
processed the applications initially in terms of the DFA and those
pending in terms of the DFA under the Ordinance.
The Developer
submitted an application for the rezoning of Erf 3087 Dalpark
Extension from “Special Themed Retail and Wholesale”
to
“Business 2”. The application was in terms of section 56
of the Ordinance. The initial approval of Badenhorst Estate
was in
terms of the DFA and was approved in October 2011. The decision was
communicated to the Developers on 13 June 2012. The
notices for
public participation in terms of the DFA applications were advertised
on 17 September 2008 and 24 September 2008 respectively.
The
applications in terms of section 56 of the Ordinance required
publication in the Government Gazette and a newspaper. The
publication
occurred 30 April 2015 and 6 May 2015 respectively. In
terms of the aforementioned dates the applicant ought to have
reasonably
become aware of the dates as indicated. On 31 March 2020,
five years later and after the last publication (of 6 May 2015), the
applicant’s application was lodged.
[26] The application is
more than 180 days late having regard to both the applications in
terms of the DFA as well as in terms of
the Ordinance. The delay is
not an insignificant period and is substantial. The applicant’s
view that it ought to have been
notified by the Municipality is not
substantiated by any reference or reliance on any law or empowering
legislation or on the facts.
On the applicant’s own version, it
was aware of the development and construction taking place in the
area and on the relevant
Erven. It believed that land use rights
could not be procured because the DFA was declared unconstitutional
and it believed the
Tribunal did not exist after the Constitutional
Court order. In its founding affidavit, the applicant noted in
paragraph 11.38
that it took cognisance of the interim
ad-hoc
development of wholesale facilities. This it understood, could be
procured by rezoning agricultural land and was still in line
with the
agreement with the Developer that ‘
no competitive retail may
realise as an integral part of the Township on the Applicant’s
Carnival Mall doorstep”.
Despite this knowledge and
awareness of the development and construction, the applicant did not
make any enquiries from the Municipality.
[27]
The expectation that it should have been notified personally because
it had previously lodged an objection is unreasonable.
This is so
because the applicant was aware of the Tribunal’s decision
regarding the establishment of Dalpark Extension 19,
as it had
appealed the decision and taken the appeal on review to the High
Court.
[20]
The
decisions taken in respect of Dalpark Extension 19 by the Tribunal
prior to the Constitutional Court order were preserved as
the order
did not have retrospective effect and the pending decisions were
required to be finalised subject to the conditions determined
by the
Constitutional Court at paragraph 13 above.
[21]
As
indicated, the applicant was aware of the decision and it was also
aware of the developments occurring. It downplays its knowledge
by
stating that it thought the development occurred as a result of an
agricultural rezoning. The applicant chose not to enquire
into the
development and belatedly raises a pre-existing legitimate right to
be notified and that it was not aware of the development.
The
Municipality’s argument is valid. It lacks resources to send
notifications to one client. I am satisfied that the Municipality
complied with the legal requirement for the publication of the
notices on the land development applications for the approval of
Badenhorst Estate, in Dalpark Ext 19 Township, in terms of the DFA.
The development came to the attention of the applicant and
it chose
not to enquire and lodge an objection. Its application in terms
of PAJA is inordinately late without a reason and
explanation for the
full period. This is the end of the enquiry.
[28]
An extension of time is permitted in terms of section 9(2) of PAJA
where the interests of justice require same. The Constitutional
Court
in
Van
Wyk v Unitas Hospital and Another (Open Democratic Advice Centre as
Amicus Curiae)(Van Wyk)
[22]
has
confirmed for
an
applicant for condonation to succeed, the applicant must satisfy
three essential requirements: (a) It must give a full explanation
for
the delay; (b) The explanation must cover the entire period of the
delay, and (c) The explanation must be reasonable.
On
the applicant’s version, it is apparent that the applicant
lodged the application in March 2020 whilst it has been engaged
in
litigation in respect of the township Dalpark Extension 19 prior to
that period. It did not join all of the parties affected
from the
outset and joined some parties at a late stage. Having regard to the
decision in
Van
Wyk v Unitas Hospital,
the
applicant
failed to satisfy any of the three requirements set out by the Court.
In the words of
Van
Wyk,” an
inordinate
delay induced a reasonable belief that an order had become
unassailable. To grant condonation after an inordinate delay
and in
the absence of a reasonable explanation would undermine the principle
of finality and could not be in the interests of justice
”
.
On
this basis, it is clear that the applicant has not made out a case
for condonation.
The interests of
justice
[29]
Moreover, in terms of s 9(2) of PAJA, there are no circumstances on
which to find that the interests of justice require an
extension. In
circumstances where the decision has been implemented where it has
not been demonstrated that the interests of justice
require the
extension and where administrators’ decisions have been
implemented affecting a substantial number of persons
as well as
impacting the economic and environmental rights of groups within the
community the rule in
Oudekraal
finds
application. If the decision was an unlawful administrative act it
serves as a basis or foundation for the legal validity
of later
decisions as long as the initial administrative decision or act
remains in existence.
[23]
The
establishment of the township taken by the DFA or Ordinance both of
which, on the applicant’s own version, are unlawful,
should be
set aside to enable new applications to be brought in terms of
SPLUMA.
[30] The seventh to tenth
respondents drew attention to the concerns that firstly it would
result in the court usurping the function
of the Municipality,
Surveyor General, and the Registrar of Deeds. Second, they raise
other concerns that amount to the nullification
of their rights as
land owners, ie that the property will revert back to a farm
register, the township will be de-proclaimed, bonds
registered over
the farms will be affected, the public who were permitted access to
roads will no longer be permitted access. The
de-proclamation of the
township by the Municipality is a complex process on its own and time
bound. It requires notices and public
participation. The respondents
will not be able to transfer the properties they now own. The
proposed solution offered by Mr Dacomb
the surveyor for the applicant
does not offer a realistic solution but raises more concerns for the
respondents.
[31] Having regard to the
applicant’s submission that the township was not properly
established, the Constitutional Court’s
direction during the
period of suspension, was that the previous DFA determinations were
not unravelled and this is so because
Courts do not trammel over
executive and administrative decisions except to the extent of its
legality. The Court in
Johannesburg
Municipality
above,
went so far as to indicate that pending matters be finalised and
determined that the declaration of invalidity was suspended
for two
years. The Constitutional Court indicated that the suspension was
subject to the pending applications being finalised,
as is evident in
paragraph [95] of the decision. The Municipality determined that this
was to be done in terms of Ordinance.
The Municipality sought
to comply with the Constitutional Court’s determination when
the Municipality processed all applications
that were pending.
[32]
This separation of powers is supported by the view expressed by the
Court in
Esau
and Others v Minister of Cooperative Governance and Traditional
Affairs,
[24]
:
“
That
is not to say that the courts have untrammelled powers to interfere
with the measures chosen by the executive to meet the challenges
faced by the nation. Judicial power, like all public power, is
subject to the rule of law. Perhaps the most obvious constraint
on
the power of the courts is the doctrine of the separation of powers,
a principle upon which our Constitution is based and which
allocates
powers and responsibilities to the three arms of government –
the legislature, the executive and the judiciary.
What the separation
of power means in a case such as this, is that a court may not set
aside decisions taken and regulations made
by the executive simply
because it disagrees with the means chosen by the executive, or
because it believes that the problems that
the decisions or
regulations seek to address can be better achieved by other means:
the wisdom of the executive’s exercises
of power is not
justiciable, only its legality. Somewhat cynically, Schreiner JA in
Sinovich
v Hercules Municipal Council
said
that “(t)he law does not protect the subject against the merely
foolish exercise of the discretion of an official, however
much the
subject suffers thereby’.
[33]
Where the applicant suggests that the decision regarding development
and township planning ought to have been delayed until
SPLUMA came
into effect in 2019, this ignores the impact on the respondents
before this court who have demonstrated tangibly the
adverse impact
it would have on their properties. The decision of the Constitutional
Court considered
“
that
in granting applications for rezoning or the establishment of
townships the development tribunals encroach on the functional
area
of 'municipal planning'.
This
was found to be inconsistent with s156 of the Constitution read with
Part B of Schedule 4. As indicated above, the Court made
provision
for its order not to visit serious disruption and dislocations on
State administration. This would be the impact of an
order as
requested by the applicant on the administration of the Municipality.
The submissions by the seventh to tenth respondents
that Mr Dacombs’
reference to s60(2) or s60(3) of SPLUMA was not clear. A logical
reading is s60(3) is applicable which provides
that the Municipality
should take over the functions of the DFA which they did. Thus the
decision cannot be faulted. On the basis
of the
Oudekraal
principle,
if the initial decision was valid these latter decisions remain
valid. The applicant’s complaints cannot be not
sustained.
[34] The issue of costs.
There is no reason why the usual order of costs should not prevail.
In addition, two counsel were employed
by the parties in this matter.
It is a complicated matter and has ramifications not only for the
Municipality but other developers
and land owners which required two
counsel. It follows that costs should include the costs consequent
upon the employment of two
counsel as sought.
[35] In the result, I
grant the following order:
Order:
1.
The application for condonation is refused.
2.
The review application is dismissed with costs
including the cost of two counsel where applicable.
SC Mia
JUDGE OF THE HIGH
COURT
JOHANNESBURG
For
the Applicant:
LGF
Putter SC
& JA Venter
instructed
by
Adriaan
Venter Attorneys and Associates
For
the First and Second Respondents:
SL
Shangisa SC & M Nene
instructed
by
Menezes
& Mokobane Attorneys
For
the Third to the Fifth Respondent:
SJ Grobler SC & LM du
Plessis
instructed
by
Delberg
Attorneys
For
the Seventh to the Ninth Respondents
:
A Liversage SC
instructed
by
JI
van Niekerk Attorneys
Heard: 21,22,23 and 24
November 2022
Delivered: 31 July 2023
[1]
The decision is reported
as
The
applicant Trading 125(Pty) Ltd v MEC of the Gauteng Department
of Agriculture and Rural Development and Others
(77836/201) [2012]
ZAGPPHC 361 (28 November 2012)
[2]
Johannesburg
Metropolitan Municipality v Development Tribunal and others
2010(6) SA 182(CC)
[3]
The restriction imposed
prevented any other competing retail activity in the area.
[4]
The declaration of a
state of disaster and ensuing lockdown due to Covid 19 pandemic on
16 March 2020.
[5]
Johannesburg
Metropolitan Municipality v Development Tribunal and others
2010(2) SA 554(SCA);
[2010]1All SA 201(SCA).
[6]
Johannesburg
Metropolitan Municipality v Development Tribunal and others
2010(6) SA 182(CC)
[7]
As above.
[8]
Johannesburg
Metropolitan Municipality v Development Tribunal and others
2010(6) SA 182(CC)
[9]
As above at para [95]
[10]
As above.
[11]
As above at para [95]
[12]
Fn (1) above
[13]
Bato
Star (Pty) Ltd v Minister of Environmental Affairs
2004(4) SA 514(CC)
[14]
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
2004
(6) SA 222 (SCA)
[15]
MEC
for Health Eastern Cape v Kirland Investment (Pty) Ltd t/a
Eye and Lazer Institute
2014(5)
BCLR 547
[16]
Magnificent
Mile Trading 20 (Pty) Ltd v Celliers N.O.
2020
(4) SA 375 (CC)
[17]
Plascon.-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
1984
(3) SA 523
A at 634H-635B
[18]
Opposition to Urban
Tolling Alliance v South African National Road Agency Ltd
[2013]4 All SA 639 (SCA)
at [para[26]
[19]
City
of Cape Town v Aurecon South Africa (Pty) Ltd
2017
(4) SA 223(CC)
at para [41]
[20]
See
footnote 2 above
[21]
See footnote 10
[22]
Van
Wyk v Unitas Hospital and Another (Open Democratic Advice Centre as
Amicus Curiae)
2008(2)
SA 472 (CC)
[23]
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
2004
(6) SA 222 (SCA)
[24]
Esau
and Others v Minister of Cooperative Governance and Traditional
Affairs
2021(30
SA 593(SCA) at para [6].
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