KwaDukuza Municipality v Lahaf (Pty) Ltd

The dispute concerned the interpretation of the phrase ‘the total Gross Lettable Area (GLA) of the Property’ in the zoning controls applicable exclusively to Special Zone 10: Lifestyle Centre in Ballito. Lahaf (Pty) Ltd, the owner of the Lifestyle Centre, and KwaDukuza Municipality disagreed on whether GLA referred only to areas used as ‘shops’ (as Lahaf contended) or to all areas capable of being leased, including non-shop areas such as storage and service areas (as the Municipality contended). The disagreement arose when building plans submitted by Lahaf and its tenants were not considered by the Municipality because of its view that the development exceeded permissible GLA limits. Lahaf approached the High Court for declaratory relief defining GLA narrowly, succeeded, and the Municipality appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing Lahaf’s application with costs.

The case is significant for clarifying principles governing the interpretation of town planning schemes in South African law. It confirms that undefined planning concepts such as GLA must be interpreted contextually and purposively, with reference to the history and objectives of the zoning scheme, rather than narrowly or by reference to industry guides alone.