Trustees of Radio City Body Corporate v K L Setsiba

The applicant, the Trustees of Radio City Body Corporate, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, K L Setsiba, the owner of unit 9 in the Radio City sectional title scheme in Benoni, Gauteng. The body corporate alleged that the respondent had failed to pay monthly levies despite arrear letters, a final demand, and contact by telephone, email, and notices. The applicant sought an order under section 39(1)(e) of the CSOS Act for payment of arrear levies. The respondent did not file any response or submissions despite being afforded an opportunity to do so. The applicant placed before the adjudicator a detailed ledger showing arrears of R21 345.22, inclusive of interest.

• Whether the respondent, as owner of a unit in the sectional title scheme, was liable to the body corporate for arrear levies.
• Whether the CSOS adjudicator was entitled under section 39(1)(e) of the CSOS Act to grant an order for payment of arrear contributions.
• Whether, in the absence of any response from the respondent, the applicant had proved on a balance of probabilities that the amount of R21 345.22 was due and payable.
• Whether the arrear amount could be ordered to be paid by instalments, with acceleration upon default.

The application was granted. The respondent was declared liable to the applicant in the amount of R21 345.22, inclusive of interest, in respect of levy arrears. The respondent was ordered to pay the arrears in three monthly instalments of R5 336.30 from 1 December 2023 and on the first day of each successive month thereafter until paid in full. The order further provided that if the respondent failed to pay any instalment on due date, the full outstanding balance of R21 345.22 would immediately become due and payable. No order as to costs was made.

An owner of a unit in a sectional title scheme is, by virtue of ownership, a member of the body corporate and is liable for levies validly raised under the STSMA. Under section 39(1)(e) of the CSOS Act, CSOS may order payment of arrear levies where the body corporate proves the indebtedness on a balance of probabilities. In the absence of any contrary version from the owner, a properly supported ledger and evidence of arrears are sufficient to justify such an order.

The adjudicator’s references to the general standard of proof, credibility, relevance of evidence, and the statutory right of appeal under section 57 of the CSOS Act were ancillary to the actual determination. The structured instalment arrangement and acceleration clause appear to be case-management features of the order rather than statements of broader legal principle.

The decision affirms the routine but important principle in South African community schemes law that liability for body corporate levies attaches to ownership of a sectional title unit and may be enforced through CSOS adjudication. It illustrates the use of section 39(1)(e) of the CSOS Act as an accessible enforcement mechanism for bodies corporate seeking recovery of arrear contributions. It also reflects the adjudicative approach where an owner fails to participate: if the body corporate produces adequate proof of indebtedness, relief may be granted on the papers.