Clariten Court Body Corporate v NS Ntuli

The applicant, Clariten Court Body Corporate, is the body corporate of a registered sectional title scheme situated at 211 10th Avenue, Morningside, Durban. The respondent, NS Ntuli, is the owner of unit 6 in the scheme and therefore a member of the body corporate. The body corporate alleged that the respondent failed to make regular levy payments due to the scheme. According to the August 2023 statement submitted by the applicant, the arrears amounted to R17 178.77, inclusive of interest. The applicant stated that requests for payment had not resulted in settlement, internal remedies had been exhausted, and the trustees resolved to institute recovery proceedings through the Community Schemes Ombud Service (CSOS). A contribution statement and breakdown of the levies for unit 6 were filed in support of the application. The respondent did not file a response to the section 43 notice issued by CSOS.

• Whether CSOS had jurisdiction under sections 38 and 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 to determine the dispute and order payment of levy contributions.
• Whether the body corporate had established, on a balance of probabilities, that the respondent owed arrear levy contributions in the amount of R17 178.77.
• Whether the body corporate was entitled to recover interest on overdue levy amounts in terms of the STSMA and Management Rule 21(3)(c).
• Whether any costs order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions to the applicant in the amount of R17 178.77 in full on or before 30 April 2024. No order as to costs was made.

Where a body corporate proves, on a balance of probabilities, that levy contributions were validly raised in terms of the STSMA and remain unpaid, CSOS may grant an order under section 39(1)(e) of the CSOS Act compelling the owner to pay the arrears. An owner cannot withhold payment of levies on the basis of disagreement with the levies, and interest on overdue amounts may be charged where authorised by the applicable management rules and trustee resolution.

The adjudicator observed that non-payment of levies can seriously destabilise a sectional title scheme and that levies are the 'lifeblood' of shared living schemes because they fund maintenance, repair, insurance, security, and other common expenses. The adjudicator also commented generally that costs orders are not usually made in section 54 adjudications and are more commonly associated with dismissals under section 53 in frivolous or vexatious matters.

This decision affirms the power of CSOS to grant enforceable orders for the recovery of arrear levy contributions in sectional title schemes under section 39(1)(e) of the CSOS Act. It reinforces the principle that owners in community schemes are obliged to pay levies when validly raised and that non-payment threatens the financial viability of the scheme. The ruling is significant in the practical administration of sectional title schemes because it underscores that bodies corporate may use the CSOS adjudication process as an accessible statutory mechanism to recover arrear contributions and interest.