City of Johannesburg v Even Grand 6 CC

An executor of the insolvent deceased estate of the late M E Ramos sold four immovable properties at a public auction for R17 000 in terms of s 34(2) of the Administration of Estates Act 66 of 1965. Municipal debts owing to the City of Johannesburg in respect of the properties amounted to approximately R80 000. The purchaser (Even Grand 6 CC) sought municipal clearance certificates to enable transfer, contending that the City was obliged to issue such certificates against payment of the sale proceeds only. The City refused, relying on s 118(1) of the Local Government: Municipal Systems Act 32 of 2000, which requires payment of municipal debts for the two years preceding application for a clearance certificate. The High Court ordered the City to issue clearance certificates against payment of R17 000, and the City appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing the application with costs.

The case clarifies the scope and application of s 118 of the Municipal Systems Act, particularly distinguishing between sequestrated insolvent estates and insolvent deceased estates administered under the Administration of Estates Act. It confirms the strength of municipal clearance requirements and affirms a plain-meaning approach to statutory interpretation in this context.