Atholl Developments (Pty) Ltd v The Valuation Appeal Board for the City of Johannesburg and Another

Atholl Developments (Pty) Ltd, the lessee under a 99-year registered lease of property in Illovo, Johannesburg, constructed and operated a hotel on the property and was liable for municipal rates. Dissatisfied with the City of Johannesburg’s valuation of the property for rates purposes, Atholl appealed to the Valuation Appeal Board established under the Local Government: Municipal Property Rates Act 6 of 2004. The Appeal Board overturned the City’s valuation. Atholl nonetheless brought a review application in the Gauteng Local Division to set aside the Appeal Board’s decision. The High Court (Vally J) granted Atholl the relief it sought by setting aside the Appeal Board’s decision and remitting the matter for reconsideration, but made certain adverse findings in its reasoning. Although successful in the order granted, Atholl obtained leave to appeal to the Supreme Court of Appeal, seeking to challenge only specific paragraphs of the High Court’s reasoning, not the substantive order.

The appeal was struck off the roll with costs, including the costs of two counsel.

This case reaffirms a fundamental principle of South African appellate procedure: appeals lie only against substantive orders, not against the reasons for judgment. It clarifies that adverse findings in a judgment’s reasoning are not appealable where the order is in the appellant’s favour, particularly where a matter is remitted for reconsideration. The judgment underscores judicial restraint in review matters and discourages piecemeal appeals, thereby promoting procedural efficiency and certainty.