Trustees of Olive Grove Body Corporate v Nasir Hendricks

The applicant, cited in the judgment as the Trustees of Olive Grove Body Corporate, is a sectional title body corporate and community scheme under the Sectional Titles Schemes Management Act 8 of 2011 and the Community Schemes Ombud Service Act 9 of 2011. The respondent, Nasir Hendricks, is the owner of Unit 1 in the scheme. The body corporate sought relief under section 39(1)(e) of the CSOS Act for payment of a special levy, ordinary levies, and accrued interest outstanding as at September 2023. The special levy had been due from 1 October 2022, with owners having been allowed to pay it in four equal instalments up to 1 January 2023. The applicant stated that a prior CSOS dispute seeking rescission of the special levy had failed and that the levy had been upheld as necessary and urgent for remedial work to the building. Numerous reminders were sent to the respondent. The respondent did not file a substantive response to the CSOS notice, but after enquiring what the dispute concerned, he paid R12 000 on 29 May 2023 toward the special levy. By the date of adjudication, the respondent’s account remained in arrears for levies and interest in the amount of R5 518.15.

• Whether the respondent was liable to pay the outstanding levies and accrued interest claimed by the body corporate under section 39(1)(e) of the CSOS Act.
• Whether the applicant had proved, on a balance of probabilities, that the amount of R5 518.15 was due and payable by the respondent as at the date of adjudication.
• Whether, in light of the respondent’s conduct and partial payment, it was necessary for the adjudicator to determine the lawfulness of the special levy.
• Whether a body corporate is entitled to recover interest on overdue levy-related amounts.

Application upheld. The adjudicator found in favour of the applicant and ordered the respondent to pay the applicant R5 518.15, being the amount outstanding for levies and interest as at the date of the adjudication order, on or before 1 October 2023. The order did not affect the respondent’s ongoing liability for ordinary monthly levies and ancillary amounts due thereafter. No order as to costs was made.

Where a body corporate proves, on a balance of probabilities, that levy-related amounts and interest are outstanding, and the owner does not dispute either the indebtedness or the calculation, CSOS may grant relief under section 39(1)(e) of the CSOS Act compelling payment. In the sectional title context, liability for special levies arises upon the passing of the trustees’ resolution levying the contribution, and overdue amounts may attract recoverable interest where properly chargeable.

The adjudicator observed, for completeness, that it was unnecessary to determine the lawfulness of the special levy because the respondent had effectively accepted liability by paying it late. The adjudicator also remarked that owners who default on levies are subsidised by compliant members, that bodies corporate cannot perform their functions without owner contributions, and that if the respondent needed more time to pay he should have negotiated with the trustees. These comments were ancillary to the dispositive finding on the arrears actually remaining due.

The decision illustrates the CSOS adjudication process for recovery of body corporate contributions and confirms the practical enforceability of special levies, ordinary levies, and interest in sectional title schemes. It reinforces that undisputed arrears may be recovered through CSOS, that liability for special levies arises upon the trustees’ resolution under the STSMA, and that a defaulting owner cannot avoid payment merely by delaying or partially complying after proceedings have commenced.