Trustees of The Island Club Body Corporate v Narini Hiralall

The applicant, the Trustees of The Island Club Body Corporate, brought an application under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, Narini Hiralall, described as a co-owner of unit LA107 in the sectional title scheme at Rialto Road, Century City, Milnerton, Western Cape. The body corporate alleged that the respondent had failed to pay levies and had fallen into arrears. A trustee resolution authorised Marsh Property to lodge the application. The respondent did not respond to the CSOS notice in terms of section 43, did not participate in the process, and filed no final submissions. The applicant placed before the adjudicator an updated statement of account reflecting arrear levies of R43 442.25.

• Whether the respondent, as an owner or co-owner in the sectional title scheme, was legally liable to the body corporate for arrear levies.
• Whether the applicant was entitled to relief under section 39(1)(e) of the CSOS Act for payment of outstanding contributions or other amounts.
• Whether, on the evidence before the adjudicator and in the absence of any response from the respondent, the arrear amount of R43 442.25 had been established on a balance of probabilities.

The application was granted. The respondent was declared liable to the applicant in the sum of R43 442.25 in respect of arrear levies and was ordered to pay that amount on or before 30 January 2024. No order as to costs was made.

An owner or co-owner of a unit in a sectional title scheme is a member of the body corporate and is legally liable for levies that accrue by virtue of ownership under the STSMA. Where a body corporate proves outstanding levies by statement of account and there is no opposing version, an adjudicator may, under section 39(1)(e) of the CSOS Act, order payment of the arrear contributions.

The adjudicator set out general remarks on the evaluation of evidence, namely that only relevant evidence should be considered and that proof is determined on a balance of probabilities with reference to credibility and probabilities. The order also noted the statutory right of appeal under section 57 of the CSOS Act, but these observations were ancillary to the decision.

The order reinforces the established South African principle that liability for body corporate levies attaches to ownership of a sectional title unit and may be enforced through the CSOS dispute-resolution mechanism. It illustrates the use of section 39(1)(e) of the CSOS Act as an accessible statutory remedy for bodies corporate seeking recovery of unpaid contributions, especially where a respondent fails to participate. It also reflects the integration of CSOS adjudication with the substantive levy obligations created by the STSMA.