City Treasurer and Rates Collector, Newcastle Town Council v Shaikjee and Others

• Jurisdiction: South Africa
• Judge: Kumleben J
• Judgment Date: 21 September 1982
• Hearing Date: 03 September 1982
• Court: Natal Provincial Division

Kumleben J:

The plaintiff (excipient) sued the defendants (respondents) for payment of arrear rates levied in terms of the provisions of part 6 of the Local Authorities Ordinance 25 A of 1974. The particulars of claim allege that the defendants were at all relevant times the owners of an erf in the Borough of Newcastle, Natal; that rates were duly assessed and levied thereon; that defendants have failed to pay the amounts due; and that all necessary formal steps have been taken to entitle plaintiff to demand payment of such arrear rates.

In reply defendants pleaded that, inasmuch as the summons was B issued on 18 August 1981, that portion of plaintiff's claim relating to the period from 1 August 1973 to 18 August 1978 has prescribed. It is thus their contention that the three-year period of prescription laid down in s 11 (d) of the Prescription Act 68 of 1969 applies. The plaintiff, in excepting to this special plea as not disclosing a defence, in turn relies upon ss (a) (iii) of the aforesaid section. It lays C down that the period of prescription shall be 30 years in the case of -

"any debt in respect of any taxation imposed or levied by or under any law".

To reflect the nature of this general rate, for which part 6 makes provision, it is unnecessary to quote more than the D following three sections appearing therein:

"148. Subject to the provisions hereinafter enacted, the council shall have power once in every financial year to assess and levy a general rate upon all immovable property within the borough; provided that where the rate payable in respect of any one property does not exceed five rand, a minimum charge of five rand may be imposed and collected.

151 (1) Rates may be assessed and levied on immovable property as a whole, or the land and buildings may be treated E as separately rateable, in which case the rate may be diversely assessed and levied, or the rate may be assessed and levied in respect of land alone.

168 (1) The rates shall be a charge upon the property the subject thereof and shall be payable by the owner of such property."

The crisp question to be decided is whether such "rates" are a form of "taxation imposed or levied" within the meaning of this F phrase in the said subsection.

I have no doubt that they are. To furnish reasons for this conclusion is about as difficult as attempting to prove the truth of an axiom. The plain and unambiguous language of ss (a) (iii) tells one that a rate of...