Black Eagle, a section 21 company focused on environmental protection, challenged decisions relating to a residential development by Landev. In September 2004, Landev applied to the Head of Department (HOD) for authorization to develop property under the Environmental Conservation Act 73 of 1989. On 12 January 2006, the HOD granted permission for phases 1 and part of phase 2, refusing the remainder. Following amendments to the ECA, Landev applied for and on 28 August 2006 was granted an exemption under s 28A by the HOD to develop the remainder. Black Eagle appealed to the MEC on 26 September 2006, which was dismissed on 8 November 2006. In February 2007, Black Eagle obtained an urgent interdict preventing development pending review under PAJA. Over 11 years, Black Eagle repeatedly supplemented its founding affidavit and amended its notice of motion. Only in September 2017, more than 10 years after the initial application, did Black Eagle seek to review the HOD's original exemption decision. The high court dismissed the challenge to the MEC's appeal decision but reviewed and set aside a later amendment decision by the MEC.
The appeal was dismissed with costs, including costs of two counsel where so employed.
When an applicant suffers an unfavourable administrative decision at first instance which is confirmed on internal appeal, both the original decision and the appeal decision must be challenged on review. Reviewing only the appeal decision while leaving the first instance decision unchallenged will generally not provide effective relief, as the original decision will remain valid under the Oudekraal principle that administrative decisions are valid until set aside by a court. An applicant must institute review proceedings within the 180-day period prescribed by section 7 of PAJA, calculated from the date of the final administrative action or conclusion of internal appeal remedies. Failure to comply with section 7's time limits without seeking condonation under section 9 of PAJA is fatal to a review application. The time limits in PAJA serve the important purpose of providing certainty and finality in administrative decision-making and will be strictly applied.
The court noted that while it would probably have been better for the applicant in Sewpersadh to have challenged the initial decision of the Treasury, the failure to target the original decision is not necessarily fatal to a review in all circumstances. Much depends on the nature of the decision at first instance and the remedy sought on review. The court observed that Black Eagle's numerous amendments to its notice of motion and supplementary affidavits over more than 11 years (12 February 2007, 16 February 2007, 8 August 2007, 11 September 2015, and 9 October 2017) reflected poor litigation strategy. The court noted that despite the HOD drawing Black Eagle's attention to its failure to review the HOD's decision as early as August 2007, Black Eagle did not seek such relief until September 2017, and even then provided no supporting facts or submissions for that relief.
This case reinforces important principles regarding the review of administrative decisions in South African law. It confirms that where an unfavourable first instance decision is confirmed on internal appeal, both the original decision and the appeal decision must ordinarily be challenged on review to achieve effective relief. It emphasizes the strict application of PAJA's time limits for instituting review proceedings, confirming that section 7's 180-day period serves the crucial purpose of providing certainty and finality in administrative decision-making. The judgment reaffirms the Oudekraal principle that administrative decisions remain valid and have legal consequences until set aside by a court, and cannot simply be ignored even if believed to be invalid. It provides important guidance on the procedural requirements for environmental law challenges under PAJA and demonstrates the consequences of strategic delays and piecemeal litigation in administrative review proceedings.