The Firearms Control Act 60 of 2000 replaced the Arms and Ammunitions Act and introduced a stricter licensing regime for firearms, including transitional arrangements for licences issued under the old Act. Many firearm owners failed to secure new licences and voluntarily surrendered their firearms to the State to avoid unlawful possession. Chapter 19 of the Act regulates compensation for firearms forfeited, seized, surrendered, or destroyed. Section 137(5) required the Minister, with the approval of the Minister of Finance, to establish guidelines for compensation. After failing to do so timeously, the Minister promulgated guidelines in 2009 which excluded compensation for firearms voluntarily surrendered for destruction unless retained by the State. The Justice Alliance of South Africa and the False Bay Gun Club challenged these guidelines as ultra vires section 137, arguing that voluntary surrender should attract compensation and that the prescribed amounts were unfair. The Western Cape High Court largely dismissed the challenge, and the appellants appealed to the Supreme Court of Appeal.