Trustees of Estelle Estate Body Corporate v Mpe Johannes Lesiba

The applicant, the Trustees of Estelle Estate Body Corporate, is the body corporate of a sectional title scheme governed by the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Service Act 9 of 2011. The respondent, Mpe Johannes Lesiba, is the registered owner of unit 43 in the scheme. The body corporate alleged that the respondent had fallen into arrears on his levy account and had failed or refused to pay despite demand. The applicant, acting through its managing agent under a signed mandate, lodged a dispute-resolution application with CSOS in terms of section 38 of the CSOS Act. It sought payment of the arrear levies and interest amounting to R3 375.39 as at March 2024, attachment of the respondent's immovable property, attachment of rental income from the unit, and a costs order. The respondent was invited twice to file submissions but failed to do so. The applicant supported its claim with a signed mandate and an up-to-date levy history statement.

• Whether the applicant proved on a balance of probabilities that the respondent owed arrear levies and interest in the amount claimed.
• Whether CSOS had jurisdiction under section 39 of the CSOS Act to order attachment against the respondent's immovable property.
• Whether CSOS could order that rental income from the unit be paid to the applicant where no lessee was cited or identified.
• Whether a costs order in favour of the applicant was competent under section 39(5) of the CSOS Act.

Application upheld in part. The respondent was ordered to pay the applicant R3 375.39 in arrear levies, including interest and ancillary charges up to and including March 2024, in three equal instalments of R1 125.13 commencing on 1 March 2024, with the second and third instalments payable on 1 April 2024 and the following month respectively. The respondent was also ordered to continue paying regular monthly levies and ancillary charges. If the respondent defaulted on any one payment, the full amount would become immediately due and payable. Prayers seeking attachment of the immovable property, attachment/diversion of rental income, and costs were dismissed.

A body corporate may obtain a CSOS adjudication order for payment of arrear levies and interest where it proves the indebtedness on a balance of probabilities, and uncontested documentary proof may suffice. CSOS adjudicators are confined to the remedies expressly authorised by section 39 of the CSOS Act and cannot grant attachment of immovable property or make orders against unidentified or uncited third parties such as tenants. Relief affecting a person with a direct and substantial interest cannot be granted without affording that person a hearing in accordance with audi alteram partem.

The adjudicator remarked that owners who do not keep levy payments up to date are effectively subsidised by compliant owners and that a body corporate cannot perform its statutory functions without funds from owners. The adjudicator also referred to case law explaining that interest on arrears is not penal in nature but serves to protect the value of the debt and compensate for delay. There is also an apparent clerical error in paragraph 42.1 stating that the respondent owes the amount 'to the Respondent'; the context makes clear the amount is owed to the applicant.

The decision confirms the CSOS adjudicative role in enforcing levy obligations owed by sectional title owners to a body corporate. It illustrates the limits of CSOS remedial powers under section 39 of the CSOS Act: while monetary relief for arrear levies can be granted, execution-type remedies such as attachment of immovable property fall outside CSOS jurisdiction. The order also underscores the importance of procedural fairness, particularly that relief affecting a lessee cannot be granted without joinder or notice to that person.