City of Tshwane Metropolitan Municipality v Malvigenix NPC t/a Wecanwin and Others

The City of Tshwane published a 2012 supplementary valuation roll and a 2013 general valuation roll under the Municipal Property Rates Act 6 of 2004, in which properties in Lombardy Estate were re‑categorised from ‘residential’ to ‘vacant’. This resulted in substantially increased property rates. In earlier litigation (Lombardy Development (Pty) Ltd v City of Tshwane Metropolitan Municipality), the High Court declared those valuation rolls invalid and set them aside for unlawfully re‑categorising properties without proper public consultation, a decision later confirmed by the Supreme Court of Appeal as a judgment in rem. Malvigenix NPC (trading as Wecanwin) and its members, who were also property owners in Lombardy Estate but not parties to the original litigation, sought to benefit from that declaration by demanding reversal and refunds of overcharged rates. The City refused, arguing that the relief applied only to the original applicants and that Wecanwin needed to bring separate review proceedings. The High Court ordered the City to reverse the rates and refund the overcharges, prompting this appeal.

The appeal was dismissed with costs, including the costs of two counsel.

The case affirms that the invalidation and setting aside of municipal valuation rolls operates as a judgment in rem with universal effect, extending beyond the original litigants. It clarifies the limits of the Oudekraal principle and confirms that dependent administrative acts fall away once the foundational act is set aside. The judgment underscores the constitutional duty of municipalities to proactively rectify unlawful conduct and to treat ratepayers equitably under the Municipal Property Rates Act.