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The Makana Municipality has been ordered to, in effect, 'swallow its words' and issue a written apology to the Unemployed People's Movement and its leader, Ayanda Kota.
The High Court in Makhanda also ordered the Municipality to pay the costs of a defamation application by the parties.
The civil matter stems from an ex-parte application by the Municipality in 2021 to interdict any person from acting unlawfully during spontaneous service delivery protests in the City.
The Municipality cited UPM and Kota as respondents and proceeded to make defamatory allegations regarding their alleged involvement in the protests.
Kota and the Unemployed Peoples Movement then instituted "action proceedings for defamation", which was settled between the parties on Thursday on the basis that the Municipality apologise and pay the legal costs.
In its written apology the Makana Municipality said it "deeply regrets any harm caused to the reputation of the Unemployed Peoples Movement and Mr Kota, and in particular", any implication that they had engaged in any unlawful behaviour during service delivery protests in 2021.