Illovo Opportunities Partnership #61 v Illovo Junction Properties (Pty) Ltd and Another

The appellant purchased immovable property in Illovo, Johannesburg, from the first respondent pursuant to a sale agreement concluded in September 2009. Prior to the sale, the first respondent had applied for rezoning of the property, which was approved but only gazetted after conclusion of the sale. After gazetting, and before transfer, the City of Johannesburg issued a directive under s 63(1) of the Town Planning and Townships Ordinance 15 of 1986 requiring payment of a bulk services contribution of approximately R8.8 million. Transfer to the appellant occurred shortly thereafter. A dispute arose as to whether liability for the contribution rested with the seller (as owner at the time of the directive) or with the purchaser when it elected to develop the property. The appellant sought a declaratory order that the seller was liable to pay the contribution.

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

The judgment clarifies the interpretation of ss 48 and 63 of the Town Planning and Townships Ordinance 15 of 1986, particularly when liability for bulk services contributions arises following rezoning. It also provides authoritative guidance on standing in applications for declaratory relief, confirming that an applicant may have a sufficient legal interest even where the declaration concerns the rights and obligations of third parties.