Benoni City Body Corporate v Renette Pillay and Ranjith Raghooraie

The applicant, Benoni City Body Corporate, a sectional title body corporate, brought a dispute resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the first and second respondents, Renette Pillay and Ranjith Raghooraie, the registered co-owners of Unit 117 in the scheme. The dispute concerned the respondents' failure to pay monthly levies and related charges. The body corporate alleged that, as at 28 May 2024, the respondents owed R25 533.93 for the period 1 August 2023 to 28 May 2024. The amount claimed was supported by a statement of account reflecting levies, utility costs, interest on arrears, credit control charges, maintenance levy, printing and stationery, and ancillary costs, including CSOS levies. The applicant also relied on a trustees' resolution dated 4 September 2023 approving, among other things, interest at 2% per month and ancillary charges. The respondents filed no submissions despite being afforded an opportunity to do so. The matter was therefore decided on the papers.

• Whether the body corporate had proved on a balance of probabilities that the respondents were indebted for unpaid levies and ancillary charges.
• Whether section 39(1)(e) of the CSOS Act empowered the adjudicator to order payment of the outstanding contributions and other amounts.
• Whether the ancillary charges and interest claimed were lawfully recoverable under the STSMA, the prescribed management rules, and the scheme's resolutions/rules.
• What payment arrangement should be ordered in respect of the arrears.

The application succeeded. The adjudicator ordered that the respondents are indebted to the applicant in the amount of R25 533.93 in respect of levies and ancillary charges for Unit 117 as at 28 May 2024. The respondents were ordered, jointly and severally, to pay this amount in 12 equal monthly instalments of R2 127.83, commencing on 1 July 2024, with the remaining 11 instalments payable on the last day of each succeeding month. The order expressly preserved the respondents' ongoing obligation to pay regular monthly levies and ancillary charges. If the respondents default on any instalment, the full outstanding amount becomes immediately due and payable. The order also states that interest at 2% per month will accrue on the outstanding amount in the event of default in payment in accordance with the order. No costs order was made.

A body corporate is entitled, under section 39(1)(e) of the CSOS Act, to an order compelling payment of arrear levies and lawfully imposed ancillary charges where it proves the indebtedness on a balance of probabilities. In a sectional title scheme, owners are obliged under the STSMA and applicable management rules to contribute to body corporate funds, and the body corporate's claim for levies and related charges becomes enforceable where properly founded on the Act, the rules, and valid resolutions. In the absence of a contrary version, documentary proof such as statements of account and resolutions may suffice to establish indebtedness.

The adjudicator observed that owners who default on levy payments are effectively subsidised by other members who pay conscientiously, and that the body corporate cannot perform its functions in the absence of funds from unit owners. These remarks explain the practical rationale for enforcing levy obligations but are not themselves the operative basis of the order.

This decision illustrates the CSOS adjudication mechanism for the recovery of unpaid sectional title levies and ancillary charges. It confirms that a body corporate may obtain enforceable relief under section 39(1)(e) of the CSOS Act where it proves arrear levies and related amounts on a balance of probabilities. The ruling also reinforces the statutory obligation of sectional owners to contribute to the administrative and reserve funds necessary for the functioning of the body corporate, and highlights the prejudice to compliant owners when others default.