Monte Carlo Body Corporate v T Ngema

Monte Carlo Body Corporate, a registered sectional title scheme in Bellair, Durban, brought an application under section 38 read with section 39(1)(e) of the Community Schemes Ombud Service Act 9 of 2011 against T Ngema, the registered owner of Unit 83 in the scheme. The body corporate alleged that the respondent had failed to pay levy contributions imposed by the scheme, resulting in arrears of R33 448.82, inclusive of interest at 2% per month. The applicant stated that demands had been made, internal remedies were exhausted, and the trustees had resolved to pursue recovery through CSOS. A contribution statement and breakdown of the account were submitted. The respondent did not respond to the application or to the section 43 notice calling for submissions. A certificate of non-resolution was issued on 27 April 2023 after conciliation failed, and the matter proceeded to adjudication on the papers.

• Whether the CSOS had jurisdiction under sections 38 and 39(1)(e) of the CSOS Act to determine the dispute.
• Whether the applicant body corporate had established, on a balance of probabilities, that the respondent owed arrear levy contributions in the amount claimed.
• Whether the body corporate was entitled to an order compelling payment of levy contributions by a unit owner.
• Whether any costs order should be made in the adjudication proceedings.

The application was granted. The respondent was ordered to pay arrear levy contributions to the applicant in the amount of R33 448.82 in full on or before 31 March 2024. No order as to costs was made.

A body corporate in a sectional title scheme is entitled under section 39(1)(e) of the CSOS Act to obtain an adjudication order for payment of arrear levy contributions where it places sufficient evidence before the adjudicator proving the debt on a balance of probabilities. Levy obligations arise from the lawful administration of the scheme under the STSMA and cannot be withheld by an owner on the basis of dissatisfaction with or disagreement about the levies. In the absence of rebutting evidence from the owner, a documented levy statement and supporting explanation may be sufficient to justify a payment order.

The adjudicator remarked that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme and prejudice the collective interests of owners. The adjudicator also made general observations that parties in section 54 CSOS adjudications ordinarily bear their own costs and that costs orders are more commonly associated with dismissals under section 53 for frivolous or non-compliant applications.

The decision reinforces the principle in community schemes and sectional title law that levy contributions are obligatory and are enforceable through CSOS adjudication. It highlights the centrality of levies to the financial viability of a body corporate and confirms that where a body corporate provides adequate proof of arrears and the owner does not meaningfully dispute the claim, CSOS may order payment under section 39(1)(e). The order also illustrates the paper-based adjudication process under the CSOS framework and the limited circumstances in which costs will be awarded.