The Municipal Manager: The City of Johannesburg Metropolitan Municipality and Others v San Ridge Heights Rental Property (Pty) Ltd

San Ridge Heights Rental Property (Pty) Ltd owned an immovable property in Johannesburg consisting of 42 multi‑storey buildings on a single erf, comprising 470 flats. The City of Johannesburg and Johannesburg Water classified the property as a 'multi dwelling' under the City’s tariff policy issued in terms of s 74(1) of the Local Government: Municipal Systems Act 32 of 2000, resulting in higher sewerage and sanitation charges. The previous owner, Zotec Developments, lodged an internal appeal under s 62 of the Municipal Systems Act, which was ignored. Despite repeated requests, the City and Johannesburg Water provided no reasons for the classification. San Ridge instituted review proceedings under the Promotion of Administrative Justice Act 3 of 2000 (PAJA), challenging the administrative decision to classify the property as a multi dwelling rather than as 'blocks of flats'. The High Court reviewed and set aside the classification and substituted it with a decision classifying the property as blocks of flats. The City, Municipal Manager and Johannesburg Water appealed to the Supreme Court of Appeal.

The appeal was upheld in part. The substitution order made by the High Court was set aside and replaced with an order remitting the matter to the City and/or Johannesburg Water to reconsider the classification of the property under the tariff policy. Each party was ordered to pay its own costs on appeal.

The case reinforces the constitutional and statutory duty of administrators to provide adequate reasons for decisions affecting rights, confirms that failure to do so renders administrative action reviewable and presumptively unlawful under PAJA, and clarifies the limited circumstances in which courts may substitute their own decisions for those of administrators. It underscores judicial deference and the primacy of remittal as a remedy in administrative law.