Synopsis:
Land Use Planning Ordinance 15 of 1985 — meaning of
section 28 — structure plan is not a policy for purposes of the
section — alternative remedies to section 28 compensation
Section 25 of the Constitution — arbitrary deprivation —
expropriation.
Application for leave to appeal against an order of the Supreme Court of Appeal concerning the interpretation of section 28 of the Land Use Planning Ordinance 15 of 1985 (LUPO) (Western Cape Province), and whether a local authority that acquires land from a private owner in the planning process is obliged to pay compensation to that owner.
The Court held that an owner is entitled to compensation for over-generously planned streets and public places. This, the Court held, is an interpretation at peace with section 25(2) of the Constitution (property expropriation). The Court, accordingly, set aside the order of the Supreme Court of Appeal and reinstated the High Court order in amended form, thus entitling the owner to compensation. It declared that the land utilised in excess of what was needed for a certain development had vested in the City of Cape Town in terms of LUPO and that the applicant was accordingly entitled to compensation in respect of it. The Court held that compensation is to be calculated in terms of the provisions of the Expropriation Act 63 of 1975.
Judgment: Moseneke DCJ (unanimous).