CDA Boerdery (Edms) Bpk and Others v The Nelson Mandela Metropolitan Municipality and Others

The first appellant, a rural landowner, and the second appellant, an association representing rural landowners, challenged the imposition of municipal property rates by the Nelson Mandela Metropolitan Municipality on properties that had previously not been rateable under the old dispensation when they fell within the Western District Municipality. After the establishment of the metropolitan municipality and the restructuring of local government, the Municipality levied assessment rates on these properties for the 2002–2003 and 2003–2004 financial years. The appellants sought to interdict the Municipality from recovering rates and to have the valuations and rates declared unlawful. Although objections to service charges were abandoned, the appellants persisted in challenging the legality of the valuation and rating process, particularly the levying of rates exceeding two cents in the Rand without the Premier’s approval as required by s 82(1)(a) of the Municipal Ordinance 20 of 1974.

The minority judgment would have upheld the appellants’ contention that the Municipality was required to obtain the Premier’s approval before levying rates exceeding two cents in the Rand; however, as a minority judgment, this view did not determine the final outcome of the appeal.

The case addresses the complex transitional interaction between old‑order provincial legislation, the Local Government Transition Act, and the Constitution in relation to municipal rating powers. The minority judgment is significant for its detailed analysis of implied repeal, fiscal oversight, and the need for continuity and restraint in municipal taxing powers during the transitional period before the enactment of the Municipal Property Rates Act.