Case Law[2022] ZACC 44South Africa
Eskom Holdings SOC Ltd v Vaal River Development Association (Pty) Ltd and Others [ (CCT 44/22) [2022] ZACC 44; 2023 (5) BCLR 527 (CC); 2023 (4) SA 325 (CC) (23 December 2022)
Constitutional Court of South Africa
23 December 2022
Headnotes
Summary: Interim interdicts — nature of prima facie right — rights in Bill of Rights — content of rights — whether rights established — role of final relief in interim orders
Judgment
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## Eskom Holdings SOC Ltd v Vaal River Development Association (Pty) Ltd and Others [ (CCT 44/22) [2022] ZACC 44; 2023 (5) BCLR 527 (CC); 2023 (4) SA 325 (CC) (23 December 2022)
Eskom Holdings SOC Ltd v Vaal River Development Association (Pty) Ltd and Others [ (CCT 44/22) [2022] ZACC 44; 2023 (5) BCLR 527 (CC); 2023 (4) SA 325 (CC) (23 December 2022)
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sino date 23 December 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case CCT 44/22
In
the matter between:
ESKOM
HOLDINGS SOC LIMITED
Applicant
and
VAAL
RIVER DEVELOPMENT ASSOCIATION (PTY)
LIMITED
First
Respondent
NGWATHE
LOCAL MUNICIPALITY
Second
Respondent
NATIONAL
ENERGY REGULATOR OF SOUTH AFRICA
Third Respondent
MINISTER
OF
ENERGY
Fourth
Respondent
PREMIER,
FREE
STATE
Fifth
Respondent
MEMBER
OF THE EXECUTIVE COUNCIL FOR
COOPERATIVE
GOVERNANCE AND
TRADITIONAL
AFFAIRS,
FREE
STATE
Sixth
Respondent
Case
CCT 44/22
ESKOM
HOLDINGS SOC LIMITED
Applicant
and
LEKWA
RATEPAYERS ASSOCIATION NPC
First
Respondent
LEKWA
LOCAL MUNICIPALITY
Second
Respondent
NATIONAL
ENERGY REGULATOR OF SOUTH AFRICA
Third
Respondent
MINISTER
OF
ENERGY
Fourth
Respondent
PREMIER,
MPUMALANGA
Fifth
Respondent
MEMBER
OF THE EXECUTIVE COUNCIL
FOR
COOPERATIVE GOVERNANCE
AND
TRADITIONAL AFFAIRS,
MPUMALANGA
Sixth
Respondent
Neutral
citation:
Eskom Holdings SOC Ltd v
Vaal River Development Association (Pty) Ltd
and Others
[2022] ZACC 44
Coram:
Kollapen
J,
Madlanga J, Majiedt J, Mathopo J,
Mhlantla J, Mlambo AJ, Theron J, Tshiqi J and Unterhalter
AJ
Judgments:
Unterhalter J (minority): [1] to [188]
Madlanga
J (majority): [189] to [310]
Heard
on:
23 May 2022
Decided
on:
23 December 2022
Summary:
Interim interdicts — nature of prima facie right —
rights in Bill of Rights — content of rights — whether
rights established — role of final relief in interim orders
Bulk
electricity supply — reduction of electricity supply —
section 21(5) of the Electricity Regulation Act
Pleadings
— interpretation and purpose of pleadings — sufficiency
of pleaded case
Section
7(2) of the Constitution — duty to respect rights —
duties of different organs of state — role and functions
of
local government — section 152 and 153 of the Constitution
Section
7(2) of the Promotion of Administrative Act — exhaustion of
internal remedies — section 30 of the Electricity
Regulation
Act
Subsidiarity —
direct invocation of the Constitution or not — electricity
regulatory framework
Grounds
of review — procedural fairness — rationality —
ulterior motive
Balance
of convenience — separation of powers — polycentricty —
rights violations — stability of national
grid
ORDER
On
appeal from the Supreme Court of Appeal (hearing an appeal from the
High Court of South Africa, Gauteng Division, Pretoria):
1. Leave
to appeal is granted.
2. The
appeal is dismissed with costs, such costs to include the costs of
two counsel.
JUDGMENT
UNTERHALTER AJ
(Kollapen J, Majiedt J and Mlambo AJ concurring):
Introduction
[1]
This
is an application for leave to appeal against a judgment and order of
the Supreme Court of Appeal dismissing
the applicant’s
appeal against the judgment and order of the High Court of South
Africa, Gauteng Division, Pretoria (High Court).
[1]
The High Court granted an interim interdict in terms of which it
prohibited the applicant from implementing its decision
to reduce
bulk electricity supply to two municipalities, pending finalisation
of an application to review that decision.
[2]
Parties
[2]
The matter originates from two
urgent applications that were joined before the High Court.
Before this Court,
although
there is but
one application, the parties are cited as they were in the original
applications.
[3]
Eskom Holdings SOC Limited (Eskom)
is the applicant in both applications. The National Energy
Regulator of South
Africa
(NERSA) and the
Minister of Energy (Minister) are the third and fourth respondents in
both applications.
[4]
In the
first
application, the first
respondent is the Vaal River Development Association (Pty) Limited, a
non-profit organisation representing
the residents of Ngwathe Local
Municipality (Ngwathe Municipality). Ngwathe Municipality is
the second respondent.
The fifth and sixth respondents are
the Premier of the Free State and the Member of the Executive
Council for Cooperative
Governance and Traditional Affairs, Free
State.
[5]
In the second application, the first respondent is the Lekwa
Ratepayers
Association
, a non-profit
organisation representing the residents of Lekwa Local Municipality
(Lekwa Municipality). Lekwa Municipality
is the
second respondent. The fifth and sixth respondents are the
Premier of Mpumalanga and the Member of the Executive
Council for
Cooperative Governance and Traditional Affairs, Mpumalanga. The
first respondents in both applications are referred
to jointly as
“the Associations” or “the residents”.
[6]
In both applications, only Eskom and the Associations filed
papers before this Court.
The
origins of the case
[7]
Eskom supplies bulk electricity,
under contract, to the Lekwa and Ngwathe Municipalities
(municipalities). The contracts concluded
between Eskom and the
municipalities for the supply of electricity obliged Eskom to supply
electricity up to each municipality’s
Notified Maximum Demand
(NMD). The NMD for the Ngwathe Municipality was agreed in
2008. For the Lekwa Municipality,
an increased NMD was agreed
to in 2010. For extended periods since these agreements were
struck, Eskom supplied electricity
to the municipalities in excess of
their NMD.
[8]
In
July 2020, Eskom applied what it styled “rotational load
reduction” to the supply of bulk electricity to the
municipalities.
In
effect
,
Eskom restricted the supply of electricity to the municipalities to
accord with the NMD of each municipality. There was
some
dispute as to the reasons for Eskom’s actions. Certainly
it is that the municipalities had failed to pay Eskom
for all the
electricity supplied to them. Indeed, the municipalities are
severely dysfunctional and in serial default of
their constitutional
and statutory obligations towards both Eskom and the residents.
Despite owing a constitutional duty
to the residents to supply
municipal services as provided in sections 152
[3]
and 153(a)
[4]
of the
Constitution; and owing statutory duties to Eskom in terms of the
Electricity Regulation Act
[5]
(ERA),
the municipalities have failed dismally and have shown gross
incompetence in the execution of their duties. Eskom announced
that its restrictions of supply were necessitated by the failure of
the municipalities to eliminate illegal connections; their
inability
to
recover
payment for electricity supplied; and their failure to provide the
infrastructure required to support the supply of electricity
above
the NMD, and thus secure the integrity of the national grid.
[9]
The restriction of supply to the
municipalities required the municipalities, in turn, to reduce the
supply of electricity to their
customers. Residents of the
municipalities, who conducted their businesses in the towns
administered by the municipalities,
were moved to bring legal
proceedings
in the High Court. Their
complaint was this. They were paying the municipalities for the
electricity they received
and required to run their businesses. If
the municipalities had failed to honour their contractual obligations
to Eskom,
that did not permit Eskom to restrict the supply of
electricity, as it had done. The consequences of Eskom’s
actions
were dire. In addition to the harm caused to businesses
from rotational disruptions, the effect upon essential services in
the two towns was described as “an unfolding human and
environmental catastrophe”. It compromised drinking water
supply and sewage disposal; adversely affected hospitals and old age
homes; and caused the pollution
of
the Vaal
River from untreated waste.
[10]
The residents, acting through the
Associations, brought urgent applications before the High Court. The
Associations sought,
in essence, interim relief to secure the
restoration of the supply of electricity that Eskom had provided to
the municipalities
prior to the restrictions it had imposed. This
interim relief was to operate pending the final adjudication of a
judicial
review to set aside Eskom’s decision to limit the bulk
supply of electricity to the municipalities to the level of their
NMD.
The
salient facts
[11]
On 29 September 2008, Eskom and the Ngwathe Municipality
concluded a bulk electricity supply agreement. In terms of the
agreement,
Eskom would supply 24 300 kVA to the
municipality. Clause 11.3 of the agreement stated that if an
increase of the
NMD is required, the municipality must give adequate
notice to Eskom. An increase shall be subject to the terms and
conditions
agreed upon by the parties in writing and, in the absence
of such an agreement, no increase in the NMD shall be implemented.
The terms and conditions of the increase must take into account the
additional capital expenditure to be incurred by Eskom and
the
additional capacity required by Eskom to meet the demand.
[12]
In
January 1981, Escom (the Electricity Supply Commission, Eskom’s
predecessor, established under the Electricity Act)
[6]
and Lekwa Municipality entered into a bulk electricity supply
agreement. In terms of the agreement, Eskom would supply
22 260 kVA
to the municipality. In 2010, the bulk
electricity supply was increased to 55 000 kVA.
Similar to the agreement
concluded between Eskom and
Ngwathe Municipality, any increase of the NMD required adequate
notice to Eskom. Additionally,
no increase could be implemented
without an agreement between the parties.
[13]
Since 2008 and 2010, no increase in the NMD was agreed between
Eskom and the municipalities. However, the consumption of and
need for electricity by the residents of the municipalities exceeded
the agreed NMD. Eskom supplied electricity in excess
of the
contracted NMD to both municipalities for an extended period of
time. Eskom charged monthly penalties to the municipalities
each time they exceeded their agreed NMD. This was done in
terms of the NMD and Maximum Export Capacity (MEC) Rules (NERSA
Rules), which state:
“
When
customers exceed their monthly NMDs and/or MEC, a network access
charge (NCC) is imposed for the excess. This is due
to the fact
[that] a customer that exceeds the NMD/MEC does so without
permission. They use capacity that is not allocated
to their
point of delivery, put the network under strain, hamper the ability
to do proper network and capacity planning. Moreover
they place
the network and other customers’ electricity supply and the
licensee at risk.”
[7]
[14]
The municipalities applied to increase their NMD supply levels
to meet the additional electricity demand, but Eskom refused to agree
to these increases. Seemingly, because the municipalities had
defaulted on their payment obligations.
[15]
In February 2020, Eskom decided to reduce bulk electricity
supply to the municipalities to the NMD levels set out in the supply
agreements (the reduction decision). This meant that it would
no longer supply electricity to the municipalities in excess
of the
agreed NMD levels. Eskom informed the municipalities of the
reduction decision but did not inform the residents.
The
decision was implemented in 2020 and resulted in rotational load
shedding in the municipalities. This had a significant
impact
on essential services such as water supply and the functioning of
sewage works. Once the electricity supply was disrupted,
the
water treatment plants came to a standstill. As a result, taps
ran dry and industrial and commercial activities, such
as the poultry
industry and abattoirs in or close to the affected towns, ceased
functioning. Sewage also started spilling
into the streets of
the affected towns and into the Vaal River.
[16]
Efforts on the part of the Ngwathe and Lekwa residents to
engage with Eskom, the municipalities and Members of the Executive in
their respective provinces were unsuccessful. Furthermore,
negotiations between Eskom and the two municipalities to increase
their contractually agreed NMD supply levels yielded no results.
Thus, the Ngwathe and Lekwa residents, through the Vaal
River
Development Association on behalf of the Ngwathe residents, and the
Lekwa Ratepayers Association on behalf of the Lekwa residents,
approached the High Court for urgent relief.
Litigation
history
High
Court
[17]
Before
the High Court, the Associations sought interim orders, pending the
determination of review proceedings. The interim
relief sought
was, inter alia, to compel Eskom, as the sole supplier of
electricity to the municipalities, to restore the
supply of
electricity to the levels enjoyed before the implementation of the
reduction decision.
[8]
[18]
Eskom
contended that it had no obligation to the residents of the
municipalities;
[9]
that it was entitled to enforce the contracts concluded with the
municipalities; and, if the residents were adversely affected,
they
should seek relief from the municipalities.
[10]
Eskom further submitted that this case differed from previous matters
in which the supply of electricity had been terminated;
here it was
reduced in conformity with the supply agreements.
[11]
[19]
On
behalf of the residents, it was argued that the reduction decision
constituted administrative action and that Eskom had
a
constitutional obligation to the residents of the
municipalities.
[12]
It
was also submitted that Eskom’s decision resulted in
catastrophic humanitarian and environmental consequences.
The
residents sought an interim interdict prohibiting Eskom from
implementing its decision to reduce the bulk electricity
supply to
the municipalities.
[13]
[20]
The High Court held the view that the applications were urgent
and granted the interim interdicts.
[21]
First,
it determined whether the residents had a
prima
facie
right, though open to some doubt, notwithstanding that there was no
contractual relationship between the residents of the municipalities
and Eskom.
[14]
[22]
The
High Court held that, although the right to electricity is not
specifically provided for in the Bill of Rights, the supply of
electricity is inextricably intertwined with the rights to dignity,
life, housing, healthcare, food, water and social security.
[15]
With reference to
Grootboom
,
[16]
the Court held:
“
While
there is no specific reference in
Grootboom
to the provision of access to and supply of electricity, it is
self-evident that the supply of electricity is the cornerstone upon
which all the realisation of other rights is based.”
[17]
[23]
The
High Court found that although the residents were not parties to the
agreements concluded between Eskom and the municipalities,
Eskom’s
enforcement of those agreements infringed the rights of the
residents.
[18]
It found
that Eskom’s reliance on its contractual relationships with the
municipalities did not detract from the fact
that it is a state-owned
enterprise that—
“
exists
with the benefit of an ostensible monopoly on the supply of
electricity, not only for the purpose of generating income for
the
state but also for the promotion of the rights of individual
citizens.”
[19]
[24]
Thus,
it held, the residents have a right to the supply of electricity and
therefore a
prima facie
right had been established.
[20]
[25]
The
High Court went on to hold that enjoying a clear right to be supplied
with electricity requires the supply of sufficient electricity
“to
meet the basic threshold of the individual rights in the Bill of
Rights”. To find otherwise would render
those rights and
the obligation of state organs, such as Eskom, to fulfil those rights
nugatory.
[21]
[26]
Second,
the High Court found that the limited electrical supply had an
adverse effect on all basic municipal services, most notably
in
respect of sewerage reticulation and the provision of clean water.
The harm suffered by the residents was not contested
by Eskom.
[22]
[27]
Third,
the High Court considered that for an extended period of time before
the implementation of the NMD limitations, Eskom provided
both
municipalities with electricity in excess of the NMD.
[23]
It held that the municipalities’ debt levels and the extent of
the time during which Eskom permitted them to exceed
the NMD while
imposing penalties for doing so, militated against any prejudice that
Eskom may suffer. The residents, however,
were faced with
prejudice that could not be measured in monetary terms or even
mitigated. The balance of convenience thus
favoured the
residents.
[24]
Fourth,
the Court held that Eskom enjoys a monopoly over the supply of bulk
electricity.
[28]
The
residents thus had no alternative other than to approach the
High Court for relief.
[25]
The Court accordingly granted the order as set out in
paragraphs 51
[26]
and 52
of the judgment.
[27]
In
summary, Eskom was ordered to increase or, alternatively, restore the
maximum electricity load supply to the level supplied
prior to the
reduction decision; thus interdicting and prohibiting Eskom from
implementing its decision to limit electricity supply.
The
order of the High Court was to operate as an interim interdict
pending final adjudication of the residents’ application
for a
review of Eskom’s reduction decision in terms of the Promotion
of Administrative Justice Act
[28]
(PAJA) and/or legality.
[29]
The High Court also noted that—
“
[f]or
so long as the NMD penalties and interest charges which Eskom levies
on the municipalities exceed the cost of actual consumption,
paying
consumers will be saddled with hopelessly insolvent municipalities
that have no prospect whatsoever, without outside intervention
or
assistance, of paying their outstanding debt to Eskom. The
result is a catch 22 situation for the applicants and consumers
in
the municipalities and
Eskom
has become the proverbial cholesterol in the municipal service
delivery breakdown in Ngwathe and Lekwa
.
They simply have no other recourse than to approach the
court.”
[29]
(Emphasis added.)
[30]
A
punitive costs order was granted
against
Eskom.
[30]
Supreme
Court of Appeal
[31]
The
question for determination on appeal was whether the High Court
was correct in its finding that the residents had established
a
prima
facie
right to interim interdictory relief.
[31]
It was common ground that
the
matter was one in which the interests of justice demanded that the
interim interdicts granted by the High Court were appealable.
The Supreme Court of Appeal held that the appeal raised an issue of
special public importance.
[32]
[32]
The
Supreme Court of Appeal referred (with approval) to
Resilient High Court
[33]
where the High Court found that although Eskom has the power to
interrupt the supply of electricity for non payment in
terms of
section 21(5) of ERA, given the nature and source of this power,
its exercise amounted to administrative action for
the purposes of
section 33 of the Constitution and PAJA. The
exercise
of the power is constrained, if not by the requirement of
reasonableness, then certainly under the standard of
rationality.
[34]
In
Resilient
High Court,
in light of the catastrophic socio economic and humanitarian
consequences that were to follow, the High Court found that
Eskom’s decision to incrementally reduce electricity supply
with the ultimate goal of terminating supply altogether, was
not
rationally connected to the purpose for which the power to do so was
given.
[35]
[33]
The
Supreme Court of Appeal also referred, with approval, to its decision
in
Resilient SCA
.
[36]
In
Resilient
SCA
,
the Supreme Court of Appeal held that electricity is a component of
the basic services that municipalities are constitutionally
obliged
to provide to their residents.
[37]
Thus, before Eskom decided to invoke its powers under section 21(5),
it was required to take
into
account its constitutional obligations as an organ of state. The
Supreme Court of Appeal held further that Eskom, as an organ
of
state, supplies electricity to local spheres of government to secure
the economic and social well-being of the people. This
brought
the relationship within the purview of the Intergovernmental
Relations Framework Act
[38]
(IRFA). In terms of IRFA,
[39]
organs of state are constitutionally and statutorily required to make
reasonable efforts in good faith to settle intergovernmental
disputes.
[40]
[34]
The Supreme Court of Appeal, in the present matter, held that
the attempt by Eskom to distinguish the findings in
Resilient SCA
was artificial. The Supreme Court of Appeal,
adopting the reasoning in
Resilient
SCA
, held that
Eskom was not constitutionally and statutorily permitted to
unilaterally reduce the bulk electricity supply to the municipalities
without first making every reasonable effort to settle its
intergovernmental disputes
with
the
municipalities and other spheres of government.
[35]
The
Supreme Court of Appeal
found
that all the requirements for granting interim interdictory relief
had been established and that the High Court had correctly
granted the interim interdicts.
[41]
Submissions
before this Court
Applicant’s
submissions
[36]
Eskom
submits that the key issues requiring determination by this Court
are—
(a) whether
the residents are entitled to an order compelling Eskom to supply
them with
sufficient electricity;
(b) whether
the residents are entitled to sufficient electricity and, if so, who
determines
the appropriate NMD to be supplied; and
(c)
whether a dispute concerning NMD ought to be resolved in terms of ERA
or IRFA.
Urgency
and jurisdiction
[37]
Eskom contends that the interlocutory order compels it to
supply electricity that it cannot generate. According to Eskom,
it must consider the national grid and its lack of capacity to comply
with such a broad and
drastic
order.
Furthermore, Eskom submits that the order will result in its
financial ruin, which would ultimately be to the detriment
of the
whole country and will not be in the interests of justice.
[38]
Eskom argues that the question whether IRFA takes precedence
over ERA engages a constitutional issue. It argues that the
issue
pertaining
to the NMD raises a novel
point of law and refers to the Supreme Court of Appeal’s
finding that the issues in this matter
are of “special public
importance”.
Grounds
of appeal
[39]
Eskom
submits that an order to compel it to supply sufficient electricity
to the municipalities is at odds with this Court’s
decision in
Mazibuko
[42]
where it was held that section 26(2) of the Constitution
stipulates that the state must take reasonable legislative and other
measures progressively to realise the right of access to
adequate housing within its available resources. Eskom also
relies on
Treatment
Action Campaign
.
[43]
It says the reasoning in these decisions does not support the
conclusion that Eskom is compelled to supply a particular amount
of
electricity. Additionally, so Eskom submits, a dispute
regarding the amount of electricity to be supplied must be decided
by
NERSA as the specialist regulator under ERA.
[40]
Eskom
submits that in some instances the NMD was exceeded as a result of
illegal connections, and it has no
obligation
to supply electricity to meet illegal demand. Eskom relies on
Sidoyi
[44]
to contend that if there is no underlying lawful basis to supply,
such as an electricity supply agreement, Eskom cannot be compelled
to
supply electricity to that customer.
[41]
Eskom
contends that the High Court and Supreme Court of Appeal failed to
consider that it does not have excess electricity and that
supplying
electricity above the contracted NMD levels puts a strain on the
infrastructure
and Eskom’s network. Eskom further submits that the lower
courts also failed to distinguish between the different roles
that
Eskom and municipalities play in supplying electricity. The
municipalities have been absolved from their constitutional
obligations. Relying upon
New
National Party
,
[45]
Eskom contends that fault must lie with the municipalities for
failing to carry out their duties. Eskom further submits that
the lower courts failed to take into account that any increase to NMD
levels must be in accordance with the NMD Rules and a dispute
pertaining to NMD must be decided in accordance with ERA, not IRFA.
[42]
In
respect of ERA, Eskom submits that section 30 of ERA provides an
internal remedy to resolve such disputes.
[46]
Thus, the internal remedies provided by ERA should have been utilised
before invoking PAJA and approaching the courts.
Eskom submits
that in terms of section 7(2)(a) of PAJA,
[47]
the High Court had no jurisdiction to hear the matter prior to
the internal remedies of ERA having been exhausted. According
to Eskom, NERSA, as the specialist regulator, has the necessary
expertise and exclusive jurisdiction to resolve a dispute pertaining
to a
complex
issue such as NMD supply. Eskom relies on
Bato
Star
,
[48]
where this Court enunciated the import of judicial deference to
administrative agencies such as NERSA.
[49]
Eskom also referred to
Koyabe
,
[50]
where the failure to exhaust internal remedies proved fatal to a
party’s review under PAJA.
[43]
Finally, Eskom submits that interruptions resulting from a
municipality’s poor planning differ from interruptions in terms
of section 21(5); because in the former, Eskom is still supplying
electricity, albeit strictly in accordance with the contracted
NMD.
According to Eskom, these are
legitimate
interruptions that fall outside the purview of
Resilient SCA,
where the interruptions occurred with the aim of terminating
electricity supply. In the present matter, Eskom continues to
supply electricity to the municipalities.
The
Associations’ joint submissions
Jurisdiction
[44]
The Associations submit that Eskom has not raised a
constitutional issue or an arguable point of law of general public
importance
outside of the law settled in
Resilient SCA
.
They also submit that
Eskom
does not raise
a dispute between organs of state requiring a decision by this Court.
Thus, this Court’s jurisdiction
is not engaged. As
to Eskom’s submission that the High Court and the
Supreme Court of Appeal failed
to consider the
municipalities’ payment obligations, this cannot be entertained
absent a counter application by Eskom
against the
municipalities.
Leave
to appeal
[45]
The Associations contend that before the Supreme Court of
Appeal, the interests of justice demanded that the interim interdict
was
appealable due to the issue of special public interest, namely
whether the residents had established a
prima facie
right
to be supplied with a specified amount of electricity. The
Associations submit that it is not in the interests of justice
to
grant leave to appeal to this Court, because there are no
conflicting judgments in respect of the issues raised by Eskom
and
all relevant principles that have already been established in
Resilient SCA
.
[46]
The Associations submit that there are no material differences
between the present case and
Resilient SCA
. There, Eskom
reduced
electricity supply to the
municipalities to obtain payment. That is the case in this
instance as well. In
Resilient SCA,
Eskom relied on
a contractual right to interrupt electricity supply in the event of
non payment. Here, Eskom relies on
the contractual right
relating to the NMD to reduce supply. The
Associations
contend that the same legal framework is applicable and the effect of
both decisions (to interrupt or reduce electricity supply)
is the
same, namely catastrophic consequences for the residents.
[47]
The
Associations contend that Eskom cannot reduce or interrupt the supply
of electricity by relying on a contractual right it has
against a
municipality, without engaging with the affected
residents
.
They rely on this Court’s decision in
Joseph
,
[51]
where this Court held that a municipal service cannot be denied
to a citizen because of a municipality’s outstanding
debts.
[52]
[48]
The Associations contest Eskom’s reliance on its
contracts to justify the reduction decision because, while the supply
agreements
subsist between state organs, the agreements impact the
residents
. The residents do not seek
to enforce contractual rights, but instead seek to enforce their
public law rights because Eskom
is an organ of state.
Therefore, its decisions constitute administrative action and are
reviewable under PAJA.
[49]
The Associations also submit that Eskom has created an
impossible situation where it knows that the municipalities’
electricity
demands are much higher than the contracted NMD. It
has been supplying electricity to the municipalities in excess of the
contracted NMD over an
extended
period of
time; yet it refuses to revise the supply agreements to make
provision for the increased demand.
[50]
In respect of Eskom’s
submission
that this matter must be resolved by NERSA, the Associations submit
that it was incumbent on Eskom to refer the dispute to NERSA
but it
failed to do so.
[51]
Finally, the Associations submit that the question of whether
they have the right to sufficient electricity, as posited by Eskom
before this Court, was never an issue before the courts below.
The only
issue
was Eskom’s reduction
of supply to outdated NMD levels without following due process.
Any dispute regarding payment
and increasing the NMD levels must be
resolved by the relevant intergovernmental players.
Assessment
[52]
The following issues require our
consideration. First, does this Court enjoy jurisdiction
to entertain this application?
Second, if so, should we grant
leave to appeal? Third, if we grant leave to appeal, was the
Supreme Court of Appeal
correct to dismiss Eskom’s appeal and
affirm the interim relief ordered by the High Court?
Jurisdiction and leave to
appeal
[53]
There
can be no doubt that this appeal raises a constitutional issue. The
interim relief granted to the residents is
predicated upon their
prima
facie
right to seek judicial review of Eskom’s power to restrict the
supply of electricity to the municipalities. A review
brought
under section 6 of PAJA gives effect to the right to just
administrative action in the Constitution. Central to the
review are two issues. First, does Eskom owe constitutional or
statutory duties to the residents of the municipalities to
maintain
the supply of electricity that it made available in the past?
Second, may Eskom reduce the supply of electricity
to the NMD
agreed with the municipalities without taking reasonable measures to
settle the intergovernmental disputes affecting
that supply, pursuant
to the Constitution
[53]
and
IRFA?
[54]
Eskom provides the great majority of
the country’s electricity. It is a near monopoly.
Electricity is essential
to the social and economic well-being
of the country and its people. What constitutional and
statutory duties Eskom owes
and to whom are plainly constitutional
matters of importance. Our jurisdiction is thus engaged in
terms of section 167(3)(b)
of the Constitution.
[55]
Whether
we should grant leave to appeal on an urgent basis is a question of
what the capacious considerations of the interests of
justice
require. It will be a rare case in which an application for
leave to appeal to this Court will be granted where it
concerns an
order for interim relief that has already enjoyed the attention of
the Supreme Court of Appeal. In
OUTA
[54]
and
Afriforum
,
[55]
this Court set out what the interests of justice entail when an
application for leave to appeal is brought to appeal an interim
order. That an interim order is not usually of final effect and
does not dispose of a substantial portion of the relief claimed
are
relevant matters to weigh, but they are not decisive. What is
salient is the intrusion of the interim order upon the
exercise of
public powers that takes place until the final adjudication of the
review.
[56]
In the present matter, we are faced
with the following problem. The municipalities have failed to
discharge their constitutional
and statutory duties. Their
failure causes serious harm to the residents of the towns they are
required to serve. Residents
who pay for their electricity
suffer shortages of electricity. This damages their businesses
and causes widespread civic
degradation. The municipalities are
in serial default of their obligations to pay Eskom for the
electricity supplied to them.
Furthermore, Eskom complains that
the municipalities have failed to terminate illegal connections; nor
have they invested in the
infrastructure required to maintain the
grid and support the supply of electricity that the residents
require. Hence Eskom
has reduced the supply of electricity to
the municipalities.
[57]
Faced with permutations of this problem,
courts have provided an answer that holds Eskom to the maintenance of
the supply of electricity.
Both in
Resilient
SCA
and in the present case, the
Supreme Court of Appeal held that Eskom cannot terminate or reduce
its supply of electricity to defaulting
municipalities, unless it
makes reasonable efforts first to settle its intergovernmental
disputes under the Constitution and IRFA.
The duties of Eskom
that have been found to support this decision require careful
consideration. The Supreme Court
of Appeal considered
Resilient
SCA
to be dispositive. Whether
that is so requires the consideration of this Court. Furthermore,
given the widespread disarray
that has assailed a great many
municipalities throughout the country, there is every likelihood that
residents in these municipalities
will secure interim relief to
hold Eskom to supply electricity, as they have in the past, should
Eskom attempt to terminate
or reduce supply to municipalities in
default. This is a systemic issue of great importance that
requires an authoritative
determination by this Court. Such
a determination will have significant consequences for residents,
municipalities,
other spheres of government, and of course Eskom
itself.
[58]
I find that it is in the interests
of justice that leave to appeal should be granted and that the appeal
was warrantably brought
on an urgent basis.
On interim relief
[59]
To obtain the interim relief secured
from the High Court, the residents, who had paid for electricity
and would continue to
do so, were required to show that they enjoyed
a
prima facie
right, though open to some doubt. The residents contended in
their founding affidavits that they, or at least those
that pay
the municipalities for electricity, have a right to the supply of
electricity from Eskom. According to the residents,
the supply
of electricity is the means by which other fundamental rights are
realised, such as the right to water, education and
a healthy
environment. The reduction of electricity supply by Eskom
interferes with the enjoyment of these rights, and it
prevents the
municipalities from discharging their constitutional obligations to
the residents.
[60]
In
both applications brought by the Associations, the notices of motion
sought interim relief pending “the final adjudication
of
the applicants’ application for a review of the first
respondent’s (Eskom’s) decision(s) in terms of the
Promotion of Administrative Justice Act No 3 of 2000
”. The
founding affidavits referenced a number of cases in which interim
orders were granted against Eskom in like circumstances,
and then
reproduced and relied upon passages in
Sabie
Chamber of Commerce
and
Resilient
.
[56]
There, the North Gauteng High Court (per Hughes J)
reviewed and set aside the decisions of Eskom to interrupt the supply
of electricity. It did so on the basis of the failure by Eskom
and the municipalities to resolve their disputes by recourse
to
section 41(3) of the Constitution.
[61]
I draw attention to the pleaded case
of the Associations for the following reasons. First, the
interim relief that was sought
was an order pending the final
determination of the Associations’ judicial review of Eskom’s
reduction decisions. Second,
the Associations referenced no
rights, save those invoked to bring under review Eskom’s
reduction decision. Third,
I have identified the rights relied
upon by the residents as the basis upon which the Associations
contend that the reduction decision
is unlawful and hence reviewable.
The more expansive account of the rights of the residents that
are said to have been compromised
by the reduction decision, taken up
in the reasoning of the High Court, and by way of submission
before this Court, is not
borne out by the pleaded case. This
is of no small significance. Eskom was entitled to know the
case it had to meet
and, in particular, the rights claimed by the
residents to give rise to a duty owed by Eskom to supply them with
electricity.
[62]
Some clarity is also required as to
the showing that the Associations were required to make in order to
secure the interim relief
that they sought. I engage upon this
matter because the judgment of Madlanga J appears to understand an
application for interim
relief, pending a judicial review, to engage
an enquiry distinct from the prospects of success of the proposed
judicial review.
That is not so. When a person contends
that their rights have been adversely affected by unlawful
administrative action,
they may bring that action under judicial
review to have it set aside. That is what the Associations say
they will seek by
way of final relief.
[63]
What
prima
facie
right then, must the Associations
establish to secure interim relief pending the determination of
their review? It is
a
prima facie
right to review and set aside the reduction decisions made by Eskom.
The grounds upon which that review will be brought are
two-fold. First, that the residents have a right to the supply
of electricity from Eskom and hence the reduction decisions
are
unlawful. Second, that Eskom has breached its constitutional
and statutory duties to resolve its disputes with the municipalities.
[64]
A
very long line of cases, stretching back to the authoritative
pronouncement of our modern law in
Setlogelo
,
[57]
has made it plain that a
prima
facie
right, though open to some doubt, is the standard used to assess the
applicant’s prospects of success in obtaining final
relief.
The enquiry is of necessity provisional because the available
evidence is usually incomplete, untested under cross-examination
(where there are disputes of fact), and the case may yet be more
fully developed.
[65]
What
the standard requires has given rise to no small measure of
difference. According to
Webster
v Mitchell
,
[58]
as qualified in
Gool
,
[59]
the test is whether the applicant has furnished proof which, if
uncontradicted at trial (here in the review), would entitle the
applicant to final relief. The Court will then consider the
case of the respondent to decide whether it casts serious doubt
on
the case of the applicant. If it does, the standard is not met.
In
Ferreira
,
[60]
a majority of a Full Court considered this test to be too exacting.
It held that the prospects of success of the claim for
the principal
relief, albeit weak, may nevertheless suffice. This is so
because other requirements for the grant of an interim interdict
may be strongly grounded and hence compensate for the weakness as to
prospects. This, it was thought better chimed with the
holding
in
Eriksen
Motors
.
[61]
More recently,
this Court, in
Economic
Freedom Fighters
[62]
held that—
“
before
a court may grant an interim interdict, it must be satisfied that the
applicant for an interdict has good prospects of success
in the main
review
.
The claim for review must be based on
strong
grounds
which are likely to succeed. This requires the court
adjudicating the interdict application to
peek
into the grounds of review raised in the main review application and
assess their strength
.
It is
only
if a court is convinced that the review is likely to succeed that it
may appropriately grant the interdict
.”
[63]
(Emphasis added.)
[66]
What
all of these cases make clear is that to secure interim relief,
an applicant must establish their prospects of success
of obtaining
final relief to the required standard. Without that showing,
there is no basis upon which a respondent can be
required to endure
the strictures of an interim order, pending the final determination
of the case for final relief. And
even if the standard is
satisfied and the applicant is granted an interim order, the order is
generally subject to the following
condition. If the applicant
ultimately fails in the main action, they will be liable for the
damages that the respondent
may have suffered as a result of the
imposition of the interim order.
[64]
This is a further demonstration of the manifest connection
between the grant of interim relief and the likely outcome of
the
proceedings that will finally determine the matter.
[67]
In sum, the following may be said of
this account of our law. First, an application for interim
relief is decided upon a consideration
of the applicant’s
prospects of success in obtaining final relief. The
prima
facie
right, though open to some doubt,
that must be established to obtain interim relief is the right that
is the subject of the main
action (or proceedings). In the
present case that is the Associations’ right to the judicial
review of Eskom’s
reduction decisions. Hence, an
application for interim relief is never decided on some separate
consideration of rights unrelated
to the claim for final relief. As
I shall show, the second judgment proceeds without sufficient
regard to this fundamental
precept. For this reason, I am in
respectful disagreement with its approach.
[68]
Second,
it is axiomatic that if an applicant cannot prove that they have a
clear right, the very nature of satisfying a court that
they have a
prima
facie
right, though open to some doubt, is a provisional judgment. The
court that finally determines the matter will decide whether
the
right, that the applicant relied upon to secure interim relief,
has been proven on a balance of probabilities so as to
secure
final relief. The second judgment cites a passage
from the decision of this Court in
National
Gambling Board
[65]
to support the proposition that what is before us at this stage is
about what must happen in the interim, what is to be decided
by the
reviewing court is left open for that court.
[69]
National
Gambling Board
held
that the High Court enjoyed jurisdiction to grant interim relief,
even though the High Court lacked jurisdiction to determine
the final
relief because that matter fell into this Court’s exclusive
jurisdiction. That holding followed the position
at common law
that a court may grant interim relief even though it lacks
jurisdiction to decide the main dispute.
National
Gambling Board
casts no doubt on the proposition, dealt with above, that the grant
of interim relief requires the consideration of the prospects
of
success in the main proceedings. That is so even if the High
Court lacks jurisdiction over those proceedings. In
Airoadexpress,
the Court held that it was precisely because the appellant was
bound to succeed in its administrative appeal that the High
Court was
empowered to grant interim relief.
[66]
[70]
Nor
does
National
Gambling Board
hold to the position that the outcome of an application for interim
relief always entails that no final determination of the rights
of
the parties can occur. There is an important distinction
between what an application for interim relief seeks and
what
the court that considers that application may decide.
National
Gambling Board
references
this matter.
[67]
If, in
an application for interim relief, there are no disputes of fact
or law, there is no reason why a court should
not grant final relief.
So too, if the court should find that the application is
premised upon a proposition of law that
cannot be sustained, there is
no reason why the court should not decide the question of law
and dismiss the application. Of
course, where the court
grants the interim relief on the basis that the applicant has shown a
prima facie
right, though open to some doubt, the court that decides whether
final relief should be granted will not be bound by the prior
interim
decision.
[71]
In the case before us, there are
important questions of law that need to be considered as to whether
the residents have a right
to the supply of electricity from Eskom,
and hence whether the Associations have prospects of success in the
review. It is
for this very reason that the matter falls within
our jurisdiction, and it is in the interests of justice to decide the
appeal.
If those questions of law are decided against the
residents, then that is dispositive of the matter and the High Court
would
have erred in granting the relief that it did. Just as
the High Court must dismiss an application for interim relief
if
it finds, as a matter of law, that the applicants do not enjoy the
rights they claim, so too this Court may so find on appeal.
That the second judgment holds otherwise, and does so relying upon
National Gambling Board,
is
an error.
Eskom’s duties and
the residents’ rights
[72]
The
starting point is therefore to determine what duties Eskom has, and
to whom these duties are owed. The Eskom Conversion
Act
[68]
(Conversion Act) converted Eskom into a public company,
incorporated in terms of the Companies Act.
[69]
The Conversion Act did not privatise Eskom. Upon
conversion, the state was Eskom’s sole shareholder. Its
conversion required Eskom and the Minister of Public Enterprises to
enter a Shareholder compact. The Shareholder compact
is defined
in section 1 of the Conversion Act to mean “the
performance agreement to be entered into between Eskom and
the
government of the Republic of South Africa”. In doing so,
the Minister was required to take account of the “developmental
role of Eskom” and “the promotion of universal access to,
and the provision of, affordable electricity, taking into
account the
cost of electricity, financial sustainability and the competitiveness
of Eskom”.
[70]
[73]
The Conversion Act is not a charter
for the singular pursuit of profit by Eskom for the benefit of its
shareholder. Rather,
the point of the Shareholder compact is to
give statutory force to the role of Eskom as a provider of public
goods, taking account
of cost, financial sustainability and
competitiveness. Eskom is a state owned enterprise.
Whilst so constituted,
the Conversion Act requires the Minister
of Public Enterprises to take account of the developmental role of
Eskom, under the commercial
disciplines listed in section 6(5)(b).
The Shareholder compact is enforceable as between Eskom and its
shareholder, the state.
[74]
The provision of electricity is an
essential resource. Eskom has historically enjoyed a near
monopoly over the generation,
transmission and distribution of
electricity in the country. Unsurprisingly, therefore, the
electricity industry has been
made subject to extensive regulation.
The regulatory framework is to be found in ERA. ERA
empowers NERSA as the independent
regulator of this framework.
[75]
The essential features of the
framework are as follows:
(a)
No
person may, without a licence, operate any generation, transmission
or distribution facility.
[71]
(b)
A
person may apply to NERSA for a licence.
[72]
NERSA must decide upon an application for a licence and may
make any licence subject to conditions relating to defined but
broadly framed areas of regulation.
[73]
Among these are prices and tariffs, performance targets and
service quality; the regulation of a licensee’s revenue;
the
obligations of a licensee to generate, transmit or distribute
electricity; the termination of electricity supply to customers
and
end users; and the classes of customers and end users to whom
electricity may or must be supplied.
[74]
[76]
NERSA
may also vary, suspend or remove any licence condition, and include
any additional licence conditions.
[75]
This may be done on application by a licensee but also, if
necessary, for the purposes of ERA, upon application by an affected
party. Thus, for example, an end user may not only hold Eskom
to the conditions of its licence, but if Eskom’s licence
conditions fail to give effect to some aspect of supply that affects
an end user, they may seek an amendment to Eskom’s
licence.
[77]
The scope of NERSA’s
regulatory competence is wide. NERSA may regulate much of what
a firm would otherwise be free to
decide if it operated in an
unregulated market. What may be produced, how much may be
produced, at what price, to whom and
under what conditions, all fall
within the scope of NERSA’s regulatory powers.
[78]
NERSA’s
powers go further still. It adjudicates contraventions of
licences.
[76]
NERSA must
settle disputes between a customer or end user and a licensee.
[77]
NERSA’s decisions are, in turn, governed by the National Energy
Regulator Act,
[78]
which
specifies how NERSA is to take decisions and provides for rights of
appeal and review.
[79]
[79]
Furthermore, ERA outlines a number
of objects it was created to fulfill. In terms of section 2 of
ERA, the objects of the
Act are to—
“
(a)
achieve the efficient, effective, sustainable and orderly
development and operation of electricity supply infrastructure in
South
Africa;
(b)
ensure that the interests and needs of present and future electricity
customers and end users
are safeguarded and met, having regard
to the governance, efficiency, effectiveness and long-term
sustainability of the electricity
supply industry within the broader
context of economic energy regulation in the Republic;
.
. .
(g)
facilitate a fair balance between the interests of customers and
end users, licensees,
investors in the electricity supply
industry and the public.”
[80]
The sustainability and efficiency model contemplated in ERA is
further amplified in section 15 which regulates tariffs. In
terms of section 15—
“
(1)
[a] licence condition determined under section 14
[80]
relating to the setting or approval of prices, charges and tariffs
and the regulation of revenues—
(a)
must enable an efficient licensee to recover the full cost of its
licensed activities, including
a reasonable margin or return;
.
. .
(c)
must give end users proper information regarding the costs that their
consumption imposes
on the licensee’s business;
.
. .
(2)
A licensee may not charge a customer any other tariff and make use of
provisions in agreements
other than that determined or approved by
the Regulator as part of its licensing conditions.”
[81]
It
is thus evident that any duty imposed on Eskom to provide
electricity, cannot be separated from its fiscal responsibilities.
These fiscal duties are not only aimed at
protecting
Eskom as a licensee, but also serve the purpose of protecting it as
the nation’s electricity provider. Of significance
is
NERSA’s Multi Year Price Determination Methodology
[81]
(MYPDM). The MYPDM is developed for the regulation of Eskom’s
required revenues. It forms the basis upon which
NERSA
evaluates the price adjustment
applications
received from Eskom. It is a cost-of-service based methodology,
with incentives for cost savings and efficient and prudent
procurement by the licensee (Eskom).
[82]
Thus, Eskom is meant to function as a viable licensee.
[82]
That, in summary, is the regulatory
landscape governing the generation, transmission and distribution of
electricity.
[83]
Municipalities
have a central role to play in the distribution of electricity. In
Joseph,
this Court set out the constitutional and statutory basis of the
public duty of a municipality to provide electricity to its
residents.
[83]
Under the
provisions of the Local Government: Municipal Structures Act
[84]
(Structures Act), municipalities are empowered to manage the bulk
supply of electricity to end consumers. Municipalities
procure
bulk supplies of electricity from Eskom and must then discharge their
duties to supply end consumers.
[85]
[84]
ERA recognises the importance of
municipalities. It contains provisions that give effect to the
constitutional duty of municipalities
to supply electricity to their
residents. In terms of section 27, each municipality is
required to exercise its executive
authority to perform a list of
stated duties. These duties include: ensuring sustainable
reticulation; progressively ensuring
access to at least basic
reticulation services through appropriate investment in electricity
infrastructure; providing reticulation
services at no cost or at
minimum cost to certain classes of end users within its
available resources; and preparing and implementing
relevant plans
and budgets.
[85]
Under
the provisions of ERA, municipalities are the customers of Eskom when
they purchase bulk electricity. Those to whom
the
municipalities, in turn, supply electricity are end users, under the
definition in ERA. The Local Government Municipal
Finance
Act
[86]
(Municipal Finance
Act) provides for the budgetary control of municipalities, including
revenue collection in accordance with the
municipal budget;
[87]
treasury oversight of the pricing of bulk electricity and the
payments made by municipalities for bulk electricity;
[88]
and the regulation of proposed price increases by an organ of state
for the supply of bulk electricity to a municipality.
[89]
[86]
The
following may be said of the regulatory scheme that I have sketched.
First, Eskom is constituted to supply electricity
for the
country. The state, as its sole shareholder, may require Eskom
to secure public goods, consonant with the Conversion Act.
Eskom is regulated by NERSA under ERA. Among the
extensive powers conferred upon NERSA, it enjoys the power to
regulate
licensees which would otherwise enjoy monopoly power. But
NERSA also has the competence to implement national government’s
electricity policy framework. That is a further indication that
a licensee such as Eskom may be used to secure public goods.
Eskom
is also a major public entity listed in schedule 2 of the Public
Finance Management Act
[90]
(PFMA). Eskom is thus made subject to the application of
chapter 6 of the PFMA, which regulates the duties of accounting
authorities responsible for public monies. It follows that
Eskom does perform public functions in terms of legislation and
thus
qualifies as an organ of state under the definition in section 239 of
the Constitution.
[91]
[87]
Second, municipalities, as this
Court found in
Joseph
,
have constitutional and statutory duties to procure and pay for bulk
electricity and then to supply electricity to residents.
That
must be done by the provision of a system of reticulation that serves
the residents, makes provision for the poor, within
the resources
available to a municipality, and implements a budget to collect
revenue so that the municipality can procure electricity
to supply to
its residents.
[88]
In
fact, so far do a municipality’s powers to collect revenue
extend that this Court, in
Rademan
,
[92]
confirmed that a municipality may disconnect a resident’s
electricity supply where that resident failed to pay for other
municipal services, but still paid for electricity supply.
[93]
There, this Court held that where a resident,
as
a customer of the municipality, contravened the municipality’s
conditions of payment, as set out in the municipal by-laws
read with
the Local Government: Municipal Systems Act
[94]
(Systems Act) and the agreement between the parties, then
section 21(5)(c) of ERA was met. Accordingly, a
municipality
is then entitled to cut off the resident’s
electricity supply. On what basis then can Eskom, an organ of
state that
does not bear the responsibility of providing municipal
services directly to the residents, be held liable for the supply of
electricity
if the conditions of its electricity supply agreements
have been breached?
[89]
Third, the relationships between
Eskom, as supplier; the municipalities as customers; and the
residents as end users of electricity,
are regulated under ERA. ERA,
as I have observed, gives NERSA extensive powers to do so. Those
powers include the resolution
of disputes that end users may have
against Eskom.
[90]
I reiterate, where do the residents
locate the duties that Eskom has to them that they may enforce
against Eskom? It is not
in the contracts for the supply of
electricity that subsist between the municipalities and Eskom. The
residents are not parties
to those contracts. Nor do the
residents rely upon any contravention by Eskom of its licence. They
do not seek to enforce
any provision of Eskom’s licence against
Eskom. The residents also do not seek an amendment to Eskom’s
licence
to place an obligation upon Eskom to supply them.
[91]
Furthermore, the residents do not
contend that Eskom was prohibited by section 21(5) of ERA from
reducing the supply of electricity
to the municipalities. That
provision reads as follows:
“
A
licensee may not reduce or terminate the supply of electricity to a
customer, unless—
(a)
the customer is insolvent;
(b)
the customer has failed to honour, or refuses to enter into, an
agreement for the supply
of electricity; or
(c)
the customer has contravened the payment conditions of that
licensee.”
[92]
It is clear that the municipalities,
as customers, are in arrears and do not pay for all of the
electricity they procure from Eskom.
Therefore, the condition
for the reduction of supply in terms of section 21(5)(c) was met.
Section 21(5) authorised Eskom
to take the reduction decision.
[93]
The residents do not rely upon the
Conversion Act. They do not say that the Minister of Public
Enterprises has failed to discharge
his mandate to agree to a
Shareholder compact that would protect the interests of the
residents.
[94]
What
rights then do the residents contend they may invoke to impugn the
reduction decision? That is the threshold issue of
importance
for two reasons. First, even in the extended sense explained in
Grey’s
Marine
,
[95]
the proposed review under PAJA requires that the administrative
action adversely affect the rights of the residents. Second,
the grounds of review relied upon by the residents are based upon the
proposition that Eskom’s duty of supply to the residents
rendered the reduction decision unlawful.
The pleadings
[95]
In their founding affidavits, the
residents invoke what they style a basic public right to the supply
of electricity. The
specific rights they mention are the rights
to life, dignity, water, education and a healthy environment. The
founding affidavits
do not contend that these rights include the
right to the supply of electricity. Indeed, they say nothing as
to the contents
of these rights. Rather, they aver that
electricity is a means by which these rights are realised. They
also reference
decisions of the High Court that have interdicted
Eskom’s termination or restrictions of supply, and rely upon
the holding
in
Resilient SCA.
[96]
In the High Court, Millar AJ
reasoned that the residents’ right to the supply of electricity
was inextricably bound up with
their constitutional rights to
dignity, life, housing, healthcare, food, water and social security.
The second judgment agrees.
It also adds, to the list of rights
infringed by Eskom’s reduction decision, the right to a basic
education.
[97]
The first difficulty with these
wide-ranging findings is to source their origin in the pleaded case.
Beyond the bare averment
that the supply of sufficient electricity to
the citizens of municipalities is a basic public law right; and, that
“the continuous
supply of electricity serves as a means to
realise other fundamental rights such as rights to water, education
and a healthy environment”,
nothing more is said in the
founding affidavits as to the contents of the rights invoked by
the residents. Neither the
High Court, nor the second
judgment, explain how the long list of rights they rely upon have a
content that gives rise to
the infringement they find to have been
established. Rather, as I shall explain, the second judgment
proceeds from the premise
that the calamitous social and economic
effects of the reduction decision self-evidently establish the
infringement of the rights
referenced in the founding affidavits and
those inferred in the second judgment.
[98]
The
second judgment says that it suffices for a court to examine the
facts that have been pleaded and derive the infringement of
rights
from those facts. The second judgment frames the matter as
thus: “[t]he residents make a simple case. Eskom’s
decision of substantially reducing the electricity supply has
resulted in a breach of several rights protected by the Bill of
Rights”.
[96]
The
reasoning of the second judgment is this. Eskom
substantially reduced the supply of electricity to the
municipalities.
This has caused deplorable conditions in the
municipalities. Therefore, the identified constitutional rights
of the
residents have been infringed.
[99]
There is a missing step in the
reasoning, which is fundamental. Does Eskom owe a duty to the
residents to supply them with
the electricity that supports their
well being? And do the residents enjoy a correlative right
to claim that electricity
from Eskom? If Eskom has no such duty
and the residents have no such right, the reduction of supply by
Eskom cannot infringe
a right, the contents of which does not include
a claim by the residents to the supply of electricity from Eskom.
Put differently,
how, in law, can Eskom be required to supply
electricity to the residents that it has no duty to supply because
its failure to
do so causes substantial suffering to the residents?
The answer is that Eskom cannot be required to do what it has
no duty
to do. The duty to act lies elsewhere. That is,
with the municipalities. The Associations do not plead that
Eskom
has a duty of supply to the residents. The second
judgment insists that no such pleading is required.
[100]
This
is a surprising position to adopt. While a court will often
wish to interpret pleadings with generosity, as this Court
made plain
in
Bato
Star
,
[97]
“it is desirable for litigants who seek to review
administrative action to identify clearly both the facts upon which
they
base their cause of action, and the legal basis of their cause
of action”. Since the Associations base their proposed
review on what they style a basic public law right, it is not
fetishistic formalism to require the Associations to specify the
rights of the residents upon which they rely, the
contents
of those rights, and the facts that support their infringement. The
residents list the rights they rely upon, but fail to
plead the
contents of these rights that impose a duty upon Eskom to supply them
with electricity. Hence, they make no showing
as to how Eskom
has breached a duty that the residents have never pleaded or
established.
[101]
This is an issue of some importance.
The rights advanced by an applicant have a specific content.
First, a respondent
is entitled to know what rights are claimed so as
to understand its correlative duties; whether it has complied with
those duties;
and, if not, whether its breach may be justified by way
of limitation. Second, a court must decide the dispute before
it,
and not author a result on equitable grounds when no case in law
has been pleaded or made out.
[102]
The approach adopted in the second
judgment allows a court to read into the facts the rights and their
contents that it considers
worthy of vindication. That is an
invocation of divination at the instance of the court. It is
not the role of the
courts to do so, nor is it our law.
[103]
Do residents who procure electricity
from the municipalities in which they reside enjoy constitutional
rights to the supply of electricity
from Eskom? This Court’s
decision in
Joseph
identified
the obligations of local government to provide basic municipal
services, including electricity. Those obligations
derive from
the objects of local government in section 152 of the Constitution
and the developmental duties of municipalities set
out in section 153
of the Constitution, read with the relevant provisions of the
Municipal Systems Act.
[104]
Our
holding in
Joseph
has been held by certain High Courts as being capable of extension so
as to impute onto Eskom the obligations of a municipality
to supply
electricity. An exposition of this reasoning is to be found in
Cape
Gate
.
[98]
That Court reasoned as follows. The municipality is a
conduit between the supplier of electricity, Eskom, and
the consumers
who pay for the electricity supplied, that is the residents. If
the residents have a public law right as against
the municipality to
procure a supply of electricity, “it would be incongruous if
the ultimate beneficiary of and payer of
the electricity stream
downwards did not have the right to enforce due performance by the
initiating supplier of the electricity
of a public-law duty owed by
it to the conduit of the electricity”.
[99]
[105]
This reasoning is mistaken. The
Constitution imposes obligations upon municipalities. Municipalities
constitute the
autonomous local sphere of government under the
Constitution. They enjoy specified powers, discharge crucial
functions, bear
defined duties and form part of the democratic
government of the country. Municipalities can in no measure be
characterised
as a conduit. That is to transpose the commercial
interposition of a middleman upon a constitutionally ordained
autonomous
sphere of government. Municipalities are required to
discharge their constitutional mandate, including their duty to
provide
basic services. They cannot abdicate that duty, nor
delegate it. A municipality is responsible for the functions it
performs. It is ultimately answerable to its local electorate.
The municipality is not a conduit of obligations.
[106]
True enough, municipalities must
often procure goods and services to discharge their functions.
Providers of those goods and
services may, in certain
instances, be organs of state, such as Eskom, that may bear their own
constitutional and statutory duties.
But the mere fact that
Eskom supplies almost all of the electricity that municipalities
require does not make the duties
of the municipalities those of
Eskom. Eskom has duties of its own. But they do not come
about simply because Eskom
is a monopoly supplier of electricity.
[107]
If Eskom does not bear the duty to
supply residents by reason of the transposition of the
municipalities’ duties upon Eskom,
what is the independent
basis in the Constitution that imposes such a duty?
[108]
The
Supreme Court of Appeal, in the appeal now before us, considered the
reasoning of Petse DP in
Resilient
SCA
to answer this question. In
Resilient SCA
,
Eskom was found to have two constitutional duties. First, Eskom
is an organ of state. Municipalities are solely dependent
on
Eskom for electricity supply. Eskom has a constitutional duty
to ensure that municipalities “are enabled to discharge
their
obligations under the Constitution”.
[100]
Adopting a passage in
Allpay
,
[101]
this duty was found to derive from section 8(1) read with
section 7(2) of the Constitution.
[102]
Since Eskom is an organ of state, the Bill of Rights is binding
upon it. Furthermore, since the state must respect,
protect,
promote and fulfil the rights in the Bill of Rights, Eskom is
required to enable the municipalities to discharge their
duties. To
do so, Eskom bears a duty of supply. I shall refer to this as
the enablement argument.
[109]
The
second basis for imposing a constitutional duty upon Eskom is this.
As an organ of state, Eskom is bound, in terms of
section 41(3)
of the Constitution,
[103]
and the provisions of IRFA, to make every reasonable effort to settle
an intergovernmental dispute in which it is involved. Until
Eskom has done so, it may not implement a decision to interrupt
supply, as was the case in
Resilient
SCA
,
or to reduce supply, as occurred in the matter before us. I
shall refer to this as the settlement argument.
[104]
The right to the supply
of electricity: the enablement argument
[110]
I
consider first the enablement argument. I have set out above
why it is that Eskom qualifies as an organ of state. It
forms
part of the state.
[105]
It
is thus bound under section 7(2) of the Constitution to respect,
protect, promote and fulfil the rights in the Bill
of Rights. But
what rights in the Bill of Rights do the residents contend provide
for the supply of electricity? None
were advanced on the
pleadings or in the submissions before us. The residents go no
further than to contend that the supply
of electricity is a means by
which certain rights may be realised. This is unsurprising.
The Bill of Rights does not
provide that all persons shall have
a right to electricity. In
Joseph,
the
constitutional duty resting upon a municipality to provide basic
services does not derive from the Bill of Rights.
[106]
Section 7(2) of the Constitution is not of application to
rights that derive from duties sourced elsewhere in the Constitution.
The enablement argument cannot prevail relying as it does on
section 7(2) of the Constitution, unless a case is made
out that
residents have a right, sourced in the Bill of Rights, to be supplied
with electricity. No such right has been claimed
on the pleaded
case before us.
[111]
I
should not be understood to hold that such a case could not be made
out. It may be that the right in section 27(1)(c) to
social
security is wide enough to include access to basic services,
including electricity. I make no finding whatever on
this
score. If, for the sake of argument, the provision of
electricity forms some part of the right to social security, Eskom
may be required in its decision-making to promote and fulfil that
right. However, that is not the case before us. The
residents have not relied upon section 27(1)(c). This
right, as this Court has held in
Grootboom
,
[107]
does not require the state to do more than its available resources
permit. Accordingly, section 27 is judged by what
measures
are reasonable within the state’s available resources to
achieve the progressive realisation of the right. Section
27
does not impose a minimum level of assistance. In the present
matter, we thus have no idea whether the supply of electricity
to the
NMD levels in the supply agreements concluded between Eskom and the
municipalities conforms to what would be required of
Eskom to promote
and fulfil a right to electricity as a basic service, if such a right
should exist.
[112]
The second difficulty is just as
problematic. A right must have a defined content. No
right in the Bill of Rights gives
express recognition to a right of
every person to electricity. As I have noted, section 27(1)(c)
may have that implicit content.
But, as I have observed, that
is not the case before us. The Associations plead that the
supply of electricity is a
means to realise other fundamental rights.
[113]
This reasoning cannot be sustained.
A particular means by which a right may be secured does not
make that means the subject
matter of the right. In the case of
the right to housing (section 26) or rights to health care,
food, water and social
security (section 27), it is for the
state to take reasonable measures within its available resources to
achieve the progressive
realisation of these rights. The state
must determine the means by which these rights are progressively
realised
. But
the means to realise the rights do not define the contents of the
rights. Not least because there may be entirely
different, but
equally permissible means used to realise the same right. These
rights must be progressively realised. How
that is to be done
is for the state to determine, provided the measures taken are
reasonable. Thus, how the state may use
the supply of
electricity; through what agency; and, under what conditions to
realise the rights in sections 26 and 27 of
the Constitution, is
for the state to determine.
[114]
It follows that the residents cannot
claim a right to the supply of a certain quantity of electricity from
Eskom on the basis that
the electricity has utility in securing their
rights under sections 26 and 27 of the Constitution. That would
be to disintermediate
the state and the decisions the state must make
as to how to realise these rights, and how to do so on an aggregative
basis that
permits of their progressive realisation. The
residents may complain that the state is not taking the measures
required of
it. But that is not the case before us. What
the residents cannot do, within the scheme of the Constitution,
is
to fasten upon a particular organ of state and select it to
provide them with a resource (here, electricity) that would secure
for them better access to housing, health care, food, water and
social security.
The content of the other
rights in the Bill of Rights
[115]
What of the rights in the Bill of
Rights that are not so qualified? The Associations and the
High Court refer to the
right to life and dignity. The
second judgment adds the right to a basic education. The
Associations, in their
founding affidavits, make mention of the right
to an environment that is not harmful to their health or well-being.
Of these
rights, the High Court said that the right to the
supply of electricity is inexorably bound up with the rights it
referenced
in the Bill of Rights. The Associations contended
that the supply of electricity was a means to the enjoyment of the
rights
they rely upon, including the right to water, education and a
healthy environment. The second judgment finds that
Eskom’s
reduction decisions constitute clear infringements of
the rights identified in the judgment.
[116]
None of these approaches commences
with the correct starting point: what is the content of the right
invoked? In particular,
does the content of these rights
include a right enjoyed by the residents to be supplied with a given
quantity of electricity by
Eskom?
[117]
Before
I consider this question, I must address its relevance because the
second judgment says that this is the wrong question.
The
second judgment holds the position that the constitutional rights it
identifies should be the focus of the Court’s
concern and
not the constitutional right of the residents to be supplied with
electricity. The second judgment variously
describes my
preoccupation with the right of supply to electricity to be mistaken
and that I am focusing on “the wrong right”.
[108]
It considers that the facts set out in the founding affidavit
self-evidently show an infringement of the residents’
right to
dignity, life, an environment that is not harmful to health or
well being, basic education, and clean water. Whether
the
contents of these rights provide for a right to a specific quality of
electricity from Eskom is a demonstration that need not
be made. It
is, in the words of the second judgment, “to straitjacket”
the second judgment. Without
this constraint, the
second judgment says that the implications of its holding upon
the state’s budget do not arise.
[109]
[118]
This
reasoning is mistaken, and profoundly so. Rights, conceptually,
are held
by
some
person and
against
another person (or entity). So too, duties are owed
by
a
person (or entity) to another. Rights always have a content.
We do not have a right in the air. We have
a right
to something. And the right enjoyed by a person gives rise to a
duty owed by another to the rights-holder. Rights
standardly
fall into two principal categories: first, a right that others do
some action with respect to the rights holder
(a claim right);
and second, a right that a rights holder may do some action (an
active right). The content of the right
determines which type
of right is enjoyed by the rights holder. Drawing this
together, in the case of a claim right,
the rights holder (X)
has a claim against another (Y) that Y performs an action (A). Y
has a correlative duty to
X of the same content, that is, to do A.
In the case of an active right, the rights holder (X) may
take some action
(A). Y must forebear and permit X to do so
because Y has no right, as against X, to prevent X from doing the
action, A.
[110]
[119]
I have set out this foundational
understanding of rights because the second judgment fails to
adhere to it. The residents
do not have a right to life or
dignity in the air. The rights that they claim must have a
content. That content determines
whether the rights relied upon
are claim rights or active rights. The rights can only exist if
they give rise to co-extensive
duties of a specific content borne by
identified persons (or entities). What then is the contents of
the residents’
right to life, to dignity, to an environment
that is not harmful to their health or well being? The
second judgment
does not tell us. It holds to the
proposition that it suffices to read the founding affidavit,
observe the deplorable
conditions brought about by the reduction
decisions, and hence recognise that these rights are being infringed.
[120]
That is an error of some gravity.
We can only decide whether a right has been infringed if we
know the content of the right
to which the rights holder has a
claim; upon whom the duty rests to secure the content of the right;
and, hence whether the
duty has been carried out. The residents
complain that the reduction decisions of Eskom have caused them to
suffer the deplorable
conditions set out in the founding affidavit.
Those decisions are to be challenged on review because they
infringe the residents’
rights. To what do the residents
claim a right? To the restoration of the supply of electricity
that Eskom provided
prior to the reduction decisions. It is an
unavoidable step in the analysis of the case before us that the
content
of
the rights claimed is to the supply of a determined amount of
electricity. The residents contend that they have claim rights
upon Eskom to restore the electricity it supplied to the
municipalities prior to the reduction decisions, and that Eskom has a
correlative duty to do so. We can thus identify the
right-holders, what is claimed, and against whom.
[121]
The second judgment identifies the
rights-holders as the residents. It enumerates constitutional
rights enjoyed by the residents,
without identifying their contents,
which the second judgment considers to be an unnecessary step in
the reasoning. The
second judgment holds that because the
deplorable conditions suffered by the residents have come about
because of the reduction
decisions, Eskom must be ordered to restore
the status quo. Why Eskom, as opposed to the municipalities,
has the legal duty
to do so is unexplained. And that is so
because Eskom cannot have a legal duty to restore supply to the
residents if the
residents have no right to claim that supply. The
second judgment impermissibly avoids the central question upon
which
the case of the Associations rests: do the contents of the
constitutional rights enumerated in the second judgment include
a claim right by the residents upon Eskom to the restoration of the
supply of electricity?
[122]
The reasoning of the second judgment
comes down to this. Eskom was supplying electricity at a
particular level. Its
reduction decisions have caused
deplorable conditions for the residents of the municipalities. These
effects self-evidently
amount to an infringement of the enumerated
constitutional rights of the residents. Hence, a
prima facie
case has been made out for the interim
restoration of supply by Eskom, pending the determination of the
review.
[123]
This reasoning begs the central
question: what do the residents claim? They claim the
restoration of the supply of electricity
that Eskom’s reduction
decisions have deprived them of. Do the residents have a right
to claim this from Eskom by virtue
of the rights they have
enumerated? The second judgment erroneously answers this
question in the affirmative. It says,
if Eskom once supplied
the electricity and the consequences of not doing so are harmful, the
residents have a right to claim restoration
of the supply of
electricity. This reasoning avoids the unavoidable issue: did
the residents ever enjoy the right to the
supply of electricity from
Eskom by virtue of their constitutional rights? If not, how did
the residents acquire this right?
To this question, neither the
pleaded case before us, nor the High Court judgment, nor the
second judgment provides
an answer. And for understandable
reasons, because the residents have no such right. Their rights
lie against the municipalities,
as
Joseph
has held. Alternatively, they could seek recourse under the
regulatory scheme of ERA. To avoid this issue, as the
second judgment assiduously does, does not diminish its
salience. Put simply, the residents cannot claim something as
of right which forms no part of the
contents
of the rights they invoke. And no invocation of deplorable
social and economic effects can cure this juridical lacuna
.
Nor can section 7(2) of the
Constitution fill this gap. This is so because if the residents
have not established a right
under the Bill of Rights to the
restoration of supply by Eskom, there is no duty, deriving from
section 7(2), for Eskom to respect,
protect, promote or fulfil rights
that do not exist.
[124]
The second judgment considers there
to be no lacuna
.
It holds that the residents need not show that they have a
right to claim from Eskom the supply of electricity that it has
reduced. The residents’ rights lie elsewhere. They
are to be found in the rights set out in the founding affidavits;
by
recourse to the obligations of the state to respect, protect, promote
and fulfil the rights in the Bill of Rights, as section 7(2)
of
the Constitution requires; and, by reference to the residents’
case that Eskom has acted without procedural fairness,
contrary to
the requirements of PAJA.
[125]
This reasoning is mistaken. First,
the right of the residents to claim electricity from Eskom is not a
claim that stands apart
from the rights in the Bill of Rights that
the residents rely upon. It is the claim that the residents
make and would impose
upon Eskom. If that claim forms no part
of the contents of the rights that the residents invoke, then they
have no claim
in law deriving from these rights. It is hard to
understand how the residents need make no case that they have a right
to
the supply of electricity from Eskom, but they can nevertheless
compel the restoration of supply from Eskom, as a matter of legal
right, the contents of which entails no claim to such supply. The
right to the supply of electricity from Eskom is not a
right the
residents may choose to ignore and still prevail. It is the
necessary contents of the rights that they must show
or fail to show
in their application.
[126]
Second, section 7(2) of the
Constitution cannot do the work required of the residents to make out
a case if the residents do not
have a right in the Bill of Rights
that supports their claim. The second judgment places some
emphasis upon the duty of the
state to respect the rights in the Bill
of Rights. That duty is plainly set out in section 7(2).
However, if the
residents have established no right in the Bill
of Rights, as I hold, then there is nothing for the state to respect.
The
duty only arises in section 7(2) if the residents have
a right. Put simply, if there is no right, there is no duty.
[127]
Third,
in what follows, I will explain why the residents have made out no
case for a want of procedural fairness. It suffices
here to
identify the same threshold problem that affects the residents’
case. However generously we interpret the meaning
of
administrative action, the relevant power must adversely affect the
rights of the residents. However, if the residents
have no
rights of the kind claimed by them, it is difficult to comprehend
what it would mean for their rights to be adversely affected
by
Eskom’s reduction decision. If the residents have no
legal right to the supply of electricity from Eskom, the reduction
of
supply has no capacity to affect their legal rights. This is so
even in the expanded sense recognised in
Grey’s
Marine.
[111]
The second judgment cites, with approval, academic
commentary that understands the class of rights that may be affected
to be broad. I agree, although I have some difficulty
understanding what it means to say that there is no “natural
limit” to rights that fall into the class.
[112]
Here, however, the residents rely upon rights they contend for
in the Bill of Rights. Without those rights, for reasons
I
shall explain, the residents have no right to procedural fairness.
[128]
I draw attention to what I consider
to be the fundamental error in the second judgment because it
holds the seeds of much constitutional
danger. Many people in
this country suffer dire conditions that gravely compromise their
life chances. The breakdown
and incapacity of the state, in
many aspects of its operations, exacerbates this suffering. The
second judgment proceeds
from the following premise. Constitutional
rights, such as the right to life and dignity, coupled with the
obligations cast upon
the state in section 7(2) of the
Constitution, give rise to claim rights upon the state in every one
of its constituent elements
where resources might be applied to
redress conditions of immiseration. The moral sentiment is
worthy. But, as I will
explain, that is not what our
Constitution provides. Nor should it because it would lead to
the courts allocating the greater
part of our public resources and
deciding how the state should do so. That would be an
impermissible usurpation of democratic
government.
[129]
I
proceed, then, to the central issue: what is the content of the
rights that the second judgment enumerates? The content
of
the right to life, or dignity, or an environment not harmful to
health or well-being is not a claim by the rights-holder to
a
specific quantity of a specific resource that the state is bound to
provide; so as to sustain the enjoyment of these rights at
a
particular level. I shall refer to such a claim as the
resources claim. That is so for a number of reasons. First,
it is inconsistent with the structure of the Bill of Rights. The
Constitution has given express recognition in sections 26
and 27
to rights that place an obligation upon the state to use its
resources for the progressive realisation of these rights.
This
Court has also held that in cases concerning the rights in sections
26 and 27, other rights, such as the right to life,
dignity and
equality, should be taken into account when deciding whether the
state has complied with the constitutional standard
of
reasonableness.
[113]
If
the rights to dignity or life required that the state be placed under
an obligation (absent limitation) to secure a particular
standard of
living or level of economic opportunity by way of the resources
claim, this would not only eclipse, indeed it would
render redundant,
the more limited and rigorous requirements of sections 26 and 27.
Additionally, it would amount to a substantial
subordination of
the power of the Executive and the Legislature to decide upon
fundamental questions of policy and legislation
that accord with the
democratic mandate of the government of the day. No coherent
interpretation of the Constitution allows
for this understanding of
the rights in the Bill of Rights as posited in the second judgment.
[130]
Second,
the contents of these rights do not include the resources claim
because it is contrary to the precedent of this Court. In
Soobramoney
,
[114]
the applicant sought dialysis treatment from the state so as to be
kept alive since he lacked the private means to secure such
treatment. He invoked the constitutional guarantee of the right
to life, as also section 27 of the Constitution. Of
the
right to life claimed by Mr Soobramoney, this Court had the
following to say:
“
The
state has to manage its limited resources in order to address all
these claims. There will be times when this requires
it to
adopt a holistic approach to the larger needs of society rather than
to focus on the specific needs of particular individuals
within
society.”
[115]
[131]
The claim for treatment was
dismissed for failing to make out a case in terms of section 27(1)
and (2).
Soobramoney
makes
plain the proposition that direct claims upon the resources of the
state should not be sought in the right to life, but rather
in the
socio economic rights in the Bill of Rights that give express
treatment to such claims. A failure to observe
this distinction
undermines the duties of the state to make decisions over limited
resources. That is its preserve to secure
the welfare of the
country and its people.
[132]
Third, if, as the second judgment
proposes, the right to life or to dignity not only found a claim to
specific state resources but
also to such resources as might be
required to maintain a certain level of welfare, this Court will
soon become the arbiter
of the entire state budget. As I have
explained, this is a country where poverty greatly curtails the life
chances of a very
large number of people and, as a result, gravely
limits their dignity. The right to life or to dignity may be
enhanced for
particular classes of persons by claims upon state
resources. Every poor person would lead a more dignified life
if the state
gave them a minimum income every month. That may
be a good policy for the state to adopt. It is a matter of
considerable
public debate. Such a policy may or may not be
affordable. But these are not measures that may be claimed as
an incident
of the right to life or the right to dignity. They
should not be decided by the courts. They are matters to be
decided
by other institutions of a democratic state: the Legislature
and the Executive.
[133]
I should not be understood to hold
that ending an infringement of a right to dignity or life, or the
other rights referenced above,
apart from the socio economic
rights in the Bill of Rights, may never have consequences for state
expenditure. Plainly
that is not so. The remedy imposed
to cure the infringement of rights very often requires the use of
state resources. What
I do hold is that the rights claimed by
the Associations, expanded upon by the High Court and in the second
judgment, are not rights,
the contents of which lay claim to a
specific state resource, to be maintained at a specific level.
[134]
This is so, even in respect of
rights, the contents of which may give rise to a claim upon state
resources. The rights in
sections 26 and 27 are expressly
predicated upon reasonable measures, within the state’s
available resources, to achieve
the progressive realisation of these
rights. The right to basic education, referenced in the
second judgment, may require
the expenditure of state resources
to provide such an education. However, the state will retain
the power to decide how to
do so and with what resources. That
will always remain within the state’s margin of appreciation.
As the Associations
acknowledge, electricity is a means to
secure the enjoyment of a right. However, a rights-holder
cannot require the state
to use this means to secure the enjoyment of
a right. Hence, the right to a basic education is not a right
to a specific
state resource. The same is true of the right to
an environment that is not harmful, under section 24(a) of the
Constitution,
as raised by the Associations. What the state may
be required to do, rather than cease doing, so as not to infringe the
right,
does not translate into a claim to a specific state resource.
[135]
In sum, by failing to analyse the
contents of the rights advanced by the High Court and in the
second judgment, their reasoning
cannot support the conclusions they
reach. The High Court considered that because the supply of
electricity is bound up with
the right to dignity and to life, there
is a right to the supply of electricity. But that is to confuse
what may make the
enjoyment of a right more fulsome with the content
of the right itself. The second judgment assumes that
curtailing the supply
of electricity is an infringement of various
rights. This puts the matter the wrong way round. It is
only once the
content of the right is determined, as I have
explained, that the question of infringement may be decided. The
second judgment
does not demonstrate that the content of the rights
it references includes the right of the residents to a particular
level of
supply of electricity.
[136]
The second judgment places emphasis
on the rights of the residents to procedural fairness. The
treatment of this issue in
the founding affidavits is so sparse that
it is difficult to discern that a case was made out. In the
case advanced by the
Vaal River Association, reference is made
to a meeting between representatives of the municipality, Eskom and
the Association
during which the Association made representations to
Eskom. This meeting occurred after the announcement of the
reduction
decision, but the engagement was undertaken to find a
solution. It came to naught because the municipality and Eskom
could
not resolve the question of the municipality’s
indebtedness to Eskom. The Association, in its account of the
residents’
prima facie
rights, makes no mention of
procedurally fair administrative action.
[137]
In the Lekwa Association case, the
founding affidavit recounts that Eskom served notice of the reduction
decision on the municipality,
but the notice was not served at the
council meeting, nor was it distributed to political parties or the
business community. Here
too, no
prima
facie
right to procedurally fair
administrative action is invoked.
[138]
The
absence of a properly pleaded case notwithstanding, the
second judgment holds that the reduction decision constitutes
administrative action and, this Court’s decision in
Joseph
establishes
that
the
residents have a right to procedurally fair administrative action in
terms of section 3 of PAJA. The passage from
Joseph
referenced
in the second judgment does no such thing.
[116]
It reads as follows:
“
Indeed,
a finding that the rights of the applicants were materially and
adversely affected for the purposes of section 3 of PAJA
would
necessarily imply that the decision had ‘direct, external legal
effect’ on the applicants. Conversely,
a finding that the
rights of the applicants were not materially and adversely affected
would have the result that section 3 of
PAJA would not apply –
barring, of course, a claim based on legitimate expectations which
was not raised in this case.”
[117]
[139]
The holding in
Joseph
requires a determination of the very issue with which I remain in
disagreement with the
second
judgment.
That is, do the residents have rights to assert against Eskom
to restore the supply of electricity that the reduction
decisions
have reduced? In
Joseph,
the
rights of the residents derived from the constitutional and statutory
duties resting upon local government to provide basic
municipal
services, including electricity. I hold that the residents in
the present matter have no such rights as against
Eskom, and hence,
following
Joseph
,
there was no duty resting upon Eskom to extend procedural fairness to
the residents in taking the reduction decisions. The
second judgment holds that because the residents have a number
of constitutional rights as against Eskom, though not a right
to the
supply of electricity, Eskom was required to accord the residents
procedural fairness in deciding to reduce the amount of
electricity
that Eskom
supplied
to the municipalities.
The question of procedural fairness, even if a case had been
properly pleaded, is derivative of what
constitutional rights the
residents enjoy against Eskom. For the reasons given, I hold
that no such rights have been established.
[140]
There is one last issue on this
aspect of the matter that warrants consideration. The
second judgment emphasises that
this appeal concerns the grant
of interim relief, and hence the Associations need only show a
prima facie
right,
though open to some doubt. This, the second judgment
holds, has been done. It is important, however, to
distinguish
a question of law from the evidence marshalled as to the facts upon
which an application for interim relief rests.
A question
of law may be difficult to decide, but it has a right answer. And
hence, where the rights relied upon by
an applicant turn on a
question of law, the law either recognises the rights claimed or it
does not. It is not a matter that
is decided by reference to
weight (weak or strong). That is the case we have before us.
The Constitution and the
relevant statutory scheme either
confer a right upon the residents to the supply of electricity from
Eskom or they do not. I
hold that they do not. The
second judgment takes comfort in the notion that it suffices for
the purposes of interim relief
that the residents have a
prima
facie
right to the supply of
electricity from Eskom. I am very doubtful that a question of
law can yield such a conclusion. But
if it could, I find no
basis to find that the residents have any such right,
prima facie
or otherwise.
[141]
The enablement argument thus cannot
hold sway because neither in the appeals before us, nor in
Resilient
SCA,
was a right in the Bill of Rights
advanced, much less established, that burdens Eskom with the duty to
supply the residents of the
municipalities with electricity.
Section 7(2) of the
Constitution
[142]
Emphasis is placed in the second
judgment upon section 7(2) of the Constitution. But, absent a
finding that the residents
have a right to the supply of electricity
located in the Bill of Rights, section 7(2) has no
application
.
I cannot, for the reasons given, find that the Associations
have established such a right.
[143]
The second judgment references the
duty cast upon the state by section 7(2) to respect the rights
in the Bill of Rights. How
can it be, the second judgment asks,
that Eskom does not have a duty to restore the supply of electricity
that it has decided to
reduce when the reduction bears so harshly
upon the residents? The second judgment takes it to be
axiomatic that Eskom
has a duty of restoration because that is the
respect that is due to the constitutional rights of the residents.
There are,
however, two separate issues which should not be
confused. First, what rights, located in the Bill of Rights, do
the residents
have to electricity?
Second
,
if the residents have the right to electricity, arising from the Bill
of Rights, against whom may these rights be claimed? The
second judgment avoids both questions.
[144]
If the residents have no
constitutional right to the supply of electricity, then no duty is
cast upon Eskom to restore electricity
out of respect for rights that
have not been established. But even if a right to the supply of
electricity had been established,
it does not follow that section
7(2) would cast an obligation upon Eskom to supply that electricity
to the residents. This,
the second judgment assumes to be the
case; but wrongly so. The second judgment has recourse to
section 7(2) so as to
find a basis upon which Eskom may be held
liable to make good the infringement of the residents’ rights.
Section 7(2)
does not do so.
[145]
Section 7(2) requires the state to
respect, protect, promote and fulfil the rights in the Bill of
Rights. The state is made
up of many parts, of which Eskom is
an organ. The obligations of section 7(2) are not cast upon
every constituent part of
the state. Regard must be had to the
division of responsibility under which the state is organised. This
is in part
dictated by the Constitution itself. By way of
example, the Reserve Bank may not be called upon to cure the
failure
by officials of the Department of Home Affairs to issue a
passport to a citizen.
[146]
The present case bears out this
principle. It is the municipalities, under the Constitution and
by reason of the regulatory
scheme that governs the supply of
electricity, which are required to supply electricity to the
residents. That duty has not
been allocated to Eskom. The
municipalities constitute the sphere of government to which the duty
has been given. They
must carry out their duties and, by so
doing, fulfil the obligations of the state in section 7(2). Section
7(2) cannot be
understood to require an organ of state to which the
duty to supply electricity to residents has not been given, to do
what the
municipalities have failed to do, so as thereby to honour
the state’s obligations under section 7(2). Yet this is
what
the second judgment would require of
Eskom, and without explanation as to why, if the resident’s
rights have been infringed,
the municipalities should not be that
part of the state that must make good the state’s obligations
under section 7(2).
Subsidiarity
[147]
Even if the residents had
been
able to identify a constitutional right that they
could invoke, they would be met by a further difficulty.
[148]
The ERA is a comprehensive piece of
legislation that regulates the generation, transmission and
distribution of electricity. In
particular, ERA regulates the
relationships of supply with which this appeal is concerned. That
is, the relationship between
Eskom, as the supplier of bulk
electricity to municipalities; the municipalities as customers of
Eskom; and the residents of the
municipalities, who procure
electricity from the municipalities as end users. The rights of
end users, such as the residents
of the municipalities, to the supply
of electricity and Eskom’s obligations to do so are regulated
under ERA. Once
Parliament has legislated in this way, may the
residents look outside ERA to assert rights against Eskom?
[149]
The
principle of subsidiarity, repeatedly recognised by this Court, has a
number of applications.
[118]
One application of the principle is that a litigant cannot directly
invoke a constitutional right when
legislation
has
been enacted to give effect to that right. The litigant must
either challenge the constitutionality of the legislation
so enacted
or rely upon the legislation to make its case.
[150]
The residents do not impugn the
reduction decision by recourse to ERA. This creates an obstacle
that stands in the way of
the proposed review of the reduction
decision, and hence the interim relief that is predicated upon the
review. Even if the
residents had been able to
identify
a constitutional right that they could assert
against Eskom, they would have had to show that they were not bound
to seek recourse
under ERA as the legislation enacted to give effect
to that right. This they did not do. The principle of
subsidiarity
excludes the relief that the residents have sought in
their review, and hence precludes the grant of the interim relief
that they
have obtained.
[151]
The second judgment considers that
the principle of subsidiarity poses no obstacle to the residents’
claim to the restoration
of supply from Eskom because ERA does not
give effect to the
constitutional
rights
that the second judgment finds the residents to enjoy. The
second judgment says that the constitutional rights of the
residents
are manifold, and that ERA is a single legislative instrument that
could not have been enacted to give effect to all
of these rights.
The second judgment fails to recognise that it is not the number
of the rights that it references,
but the content of these rights.
That content, as I have explained, concerns a claim by the
residents to the supply of electricity.
That is precisely
what
ERA and the regulatory scheme that I have
described regulate. And hence the principle of subsidiary holds
good.
[152]
The second judgment also fails to
have regard to the scope of the regulatory scheme under which powers,
rights and duties are allocated
for the supply of electricity to
residents. I have set this out in detail. Suffice to say
that it is the Constitution
that places the municipalities at the
centre of the supply of electricity to the residents. There is
an interlocking scheme
of legislation and subordinate legislation
that constitutes NERSA; confers wide powers upon it; regulates Eskom
and the municipalities;
and grants rights to end users. It is
hard to imagine a more comprehensive regulatory scheme. This
scheme is clearly
ordered to secure the public interest, of which the
rights of end users, and hence residents, forms part. It is
difficult
to understand how this scheme can be understood, given its
reach, not to give effect to such constitutional rights as the
residents
may enjoy. How the residents can apparently by pass
this entire edifice by directly invoking their constitutional rights
is a conclusion I find preposterous.
[153]
The second judgment provides a
lengthy disquisition on the concept of subsidiarity in our
constitutional jurisprudence. That
analysis shows that the
principle of subsidiarity is generally, but not exclusively, of
application in cases where a statute gives
effect to a constitutional
right. The second judgment cannot find anything in ERA that can
be said to give effect to a constitutional
right. The second
judgment declines to decide whether subsidiarity can apply to
legislation that does not give effect to
a constitutional right. But
it goes on to say that absent a definitive pronouncement on this
point, the question of subsidiarity
can do no more than cast some
doubt on the residents’
prima facie
rights.
[154]
The second judgment is in error for
two reasons. First, it is not simply ERA, but the entire
regulatory scheme that must be
considered to determine whether the
principle of subsidiarity is of application. That scheme is
predicated upon the constitutional
centrality of the municipality as
the sphere of government responsible for the supply of electricity to
its residents. The
powers of NERSA and the rights and duties of
Eskom are designed to cohere with the constitutional duties borne by
municipalities.
The rights of residents to the supply of
electricity form part of this regulatory scheme. ERA provides
the statutory
means by which residents may enforce their rights. But
there can be little doubt that it is a regulatory scheme that gives
effect to the constitutional design by which electricity is to be
made available to residents. The residents’ recourse
under ERA forms part of that design, and hence triggers the
application of the principle of subsidiarity. In so far as the
second judgment considers the residents’ case not to depend on
a constitutional right to the supply of electricity, that
is a
disagreement elsewhere explored in this judgment.
[155]
Second, the second judgment further
falls into error because it adheres to an incorrect understanding of
what it means for an applicant
for interim relief to establish a
prima facie
right,
though open to some doubt. This requirement concerns the
standard of proof that rests upon the applicant. The
standard
of proof is a standard that determines what is required of a litigant
to prove facts, not law. A proposition of
law which recognises
a right is either correct or it is not. The evidence marshalled
to establish that right must meet a
particular standard. In the
case of interim relief, the standard is a
prima
facie
right, though open to some doubt.
An arguable proposition of law has no bearing upon whether a
right is
prima facie
established.
Whether a right exists in law is one thing. Whether an
applicant has marshalled evidence sufficient to
establish that right
is quite another. The second judgment makes a category error.
The principle of subsidiarity either
excludes the claims of the
Associations for interim relief or it does not: that is a question of
law. Whether the residents
have established a
prima facie
case is a question of evidence. The
disinclination of the second judgment to decide the question of
subsidiarity does
not mean that at best that question can only cast
some doubt on the
prima facie
case of the Associations. Correctly understood, a question of
law simply has no bearing on whether an applicant has met the
standard of proof required for the grant of an interim order. If
subsidiarity applies, the residents have no claim. If
subsidiarity does not apply, or if a court is uncertain whether it
applies, the evidence marshalled by the applicant is unaffected
–
it is neither enhanced nor diminished. Therefore, the principle
of subsidiarity excludes the claims of the Associations.
The
second judgment declines to provide a definitive answer to the point.
[156]
The
second judgment takes the position that my approach is too rigid. It
expresses the view that there may be circumstances
in which a court,
faced with an application for interim relief (sometimes on an urgent
basis), cannot be expected to reach a definitive
decision on a
question of law. If that be so, a judge may say that
prima facie
there is enough pointing to the
determination
of
the legal question in the applicant’s favour. I have some
sympathy for this position. However, an arguable
question of
law, upon which the case of the applicant turns is not what it means
for an applicant to have a
prima
facie
right.
That is to muddle an evidential standard as to facts with a
legal standard. The correct approach is to recognise,
as the
majority of the Court did in the Full Court decision in
Ferreira,
that
an applicant should meet the standard of a serious question of law to
be tried. That is the standard in English law,
and I see no
impediment to its adoption.
[119]
[157]
However, I can see no justification
for the second judgment declining on appeal to decide the question of
subsidiarity, and rather
leaving this matter for the High Court.
There is no good reason to do so. The facts and the law
have been placed
before us. The issue has been fully
considered. The novelty and complexity of the matter does not
warrant deferring
a decision on the point. It
is
precisely cases of novelty and complexity that
this Court is charged to decide. The matter should be decided.
I hold
that the principle of subsidiarity is of application and
non-suits the Associations.
Section 7(2) of PAJA
[158]
The residents face a further
obstacle. ERA provides a comprehensive regulatory framework.
Section 30 requires NERSA
to settle disputes between an
end user, defined to mean a user of electricity, and a licensee,
such as Eskom. The residents
have not had recourse to section
30. They do not traverse this matter in their papers, nor in
their submissions before this
Court. Yet their claim for
interim relief is predicated upon a review under PAJA. Section
7(2) of PAJA requires the
exhaustion of all internal remedies, save
in exceptional circumstances. The residents have not explained
why relief under
section 30 of ERA is neither possible, adequate or
timeous. Instead, they contend that it was incumbent on Eskom
to
refer the dispute to NERSA. They
have failed to provide a reason why they, as the aggrieved parties,
did not refer the dispute
to NERSA before bringing the reduction
decision for review under PAJA. This omission means that the
promised review of the
reduction decision was stillborn, and hence
the interim relief for this reason also cannot hold good.
[159]
The second judgment holds that
section 7(2) of PAJA poses no obstacle to the residents in their
application for interim relief because
that application is not a
review of the reduction decisions, and hence section 7(2) cannot be
of application. The second judgment
goes further still.
It holds that section 7(2) of PAJA plays no role in the
determination of applications for interim relief
pending a PAJA
review. It reasons that this would impose too great a burden on
an applicant for interim relief, in that the
grant of interim relief
already requires a showing that there is no other satisfactory
remedy. To add a requirement that
an
applicant
must
also show that it will comply with PAJA is to unduly curtail access
to the courts. Furthermore, an applicant may yet
persuade the
review court of exceptional circumstances that, in terms of
section 7(2)(c), excuse compliance with the obligation
to
exhaust any internal remedy.
[160]
I recall what I have set out as to
the relationship between an application for interim relief and the
prospects of the applicants
in securing final relief. The
position taken in the second judgment fails to
have
proper regard to this. The issue before the
High Court was this: what prospects do the Associations have of
succeeding
in their review of Eskom’s reduction decisions? A
relevant consideration in answering that question is whether the
residents will be able to show that the review court can grant final
relief in the face of section 7(2) of PAJA. If the
Associations have an internal remedy
and
they do as section 30 of ERA provides a specific remedy to the
residents of direct application to the reduction decision of
which
they complain
a failure to exhaust
this remedy means the court hearing the review will have no power to
review the reduction decisions; save for
exemption upon a showing of
exceptional circumstances. The issue is not answered by saying
that the application for interim
relief is not the review. A
failure to
provide
any explanation as to
why an available internal remedy has not, will not or cannot be used
gives rise to the difficulty that the
court deciding upon interim
relief must apprehend that the court adjudicating upon the case for
final relief may not be competent
to rule at all. If that is
so, how does a court order interim relief pending such a review?
[161]
Nor
is it answered by saying that the residents may yet seek to exhaust
their internal remedies under section 30 of ERA or show
exceptional
circumstances to exclude compliance. That they have not, and
have indicated no intention of doing so, is relevant
in deciding
whether the Associations have prospects of prevailing in the review.
That an application for interim relief is
not a review, as the
second judgment observes, is not salient.
[120]
The
application
for
interim relief necessarily casts forward to consider the applicants’
prospects of success. The Associations have
an internal remedy
available to them. They say nothing as to why they have not
used it or could not use it to obviate the
need for a review
altogether. That is plainly relevant to the question as to
whether the court deciding the review could
come to the assistance of
the Associations.
[162]
The second judgment holds that
traversing internal remedies at the stage of interim relief is unduly
burdensome to an applicant
because it adds to the requirement of
showing the absence of another satisfactory remedy. The
second judgment also considers
that this would infringe an
applicant’s constitutional right of access to the courts. In
this, too, the second judgment
is mistaken. As I have
shown, whether an applicant for interim relief will be able to comply
with the requirements of section 7(2)(a)
of PAJA in the review
is plainly relevant to the question whether the applicant can secure
relief from the courts in due course.
If the applicant cannot,
there is no warrant to impose injunctive burdens on the respondent in
the interim. Some remedies
available to an applicant may fall
within the class of internal remedies provided for in any other law
as section 7(2)(a) stipulates.
If the applicant has recourse to
such a remedy then, at the
stage
of interim
relief, the question as to why the applicant has not or will not make
use of this remedy cannot be avoided. It
bears directly upon
the applicant’s likely prospects of success in the review. If
some other species of alternative
remedy is available to an
applicant, then it will also be necessary to determine whether it is
satisfactory or whether the applicant
can show that it is not so.
[163]
These are assuredly burdens that an
applicant must shoulder to enjoy interim relief. But they are
neither gratuitous nor an
infringement of the right of access to
courts. They are relevant and necessary considerations that go
to the justification
for making an interim order. Courts will
not incline to render a respondent subject to interim compulsory
constraint by its
order if there is no need to do so, or there are
vanishingly modest prospects that the applicant can prevail in the
review. Nor
does an applicant, so burdened, suffer any
restriction of their right to have the question of interim relief
resolved by the application
of
law
. The
difference I have with the approach taken by the second judgment
concerns the legal considerations that are relevant
to the grant of
interim relief. A difference as to the substantive law of
application to the grant of interim relief cannot
be characterised as
an issue of access to courts, as the second judgment
unwarrantably seeks to do. The right to have
a dispute resolved
by the application of law cannot determine what substantive law is
used to decide the dispute.
[164]
When a court decides upon an
application for interim relief, the question is whether the
respondent must
endure
such an order if
there are other satisfactory remedies available to the applicant.
Thus, the issue is whether the applicant
may secure adequate redress,
at least in the interim, by recourse to another satisfactory remedy.
The Associations have had
nothing to say on this score to show
why the internal remedies provided in section 30 of ERA, and
available to the residents, would
not suffice. The availability
of an internal remedy, in this case, is an issue pertinent to two
factually interconnected,
but separate, legal issues. First,
whether there is any prospect that the court that hears the review
will enjoy the competence
to grant final relief. Second,
whether the internal remedy suffices to provide a satisfactory
remedy. Both issues are
relevant to the enquiry as to whether
interim relief should be granted to an applicant who would bring an
administrative action
under judicial review.
[165]
Whether examined from the vantage
point of prospects of success in the review or the availability of a
satisfactory alternative
remedy, the Associations have failed to deal
with these matters. The second judgment says this matters not
because the residents
averred that they had no other satisfactory
remedy, the High Court agreed, and this Court is in no position
to hold otherwise.
This is not so. The founding
affidavits of the Associations contended that it was Eskom’s
duty to resolve its dispute
with the municipalities and that “the
municipality and for that matter, the applicant, have no other
remedy”. By
law it may not purchase its electricity from
any supplier other than Eskom. That Eskom is a monopoly
supplier to the municipalities,
and they, in turn, are monopoly
suppliers to the residents answers the question as to whether the
residents have an alternative
source of supply. It says nothing
at all as to whether the residents have an alternative satisfactory
remedy. They
do. It is an internal remedy provided for in
ERA, and the residents have nothing at all to say on this score. It
is
an obvious omission and impediment to the grant of the relief that
they sought. Eskom averred that the residents did have
alternative recourse. The High Court’s only finding
on this aspect of the matter was that the residents would
not obtain
relief by enforcing the obligations of the municipalities because the
municipalities were hopelessly insolvent. Neither
the
High Court nor the Supreme Court of Appeal traverse the
recourse of the residents under section 30 of ERA. I
do
not see how a finding by the High Court as to one remedy precludes
the consideration by an appellate court of the availability
of
another remedy that is relevant to whether the interim order was
correctly granted.
The residual PAJA ground
[166]
The
second judgment considers the residents to have made a supportable
case that Eskom has acted for ulterior purposes because it
took the
reduction decisions to pressure the municipalities to settle
their
outstanding
debts. While the second judgment acknowledges that this
ground of review has not been pleaded, it holds that
it can
nevertheless be entertained on a discretionary basis.
[121]
[167]
That
is not so. An appeal court might entertain an appeal where an
issue that strayed from the pleadings was fully ventilated
before the
Court below.
[122]
But
an appellate court cannot raise a ground of review that was not
pleaded nor fully considered by the parties on their
papers and in
argument. In any event, the factual basis of the case for
Eskom’s ulterior purpose is much contested
on the facts.
Eskom’s affidavit sets out the reasons for its reduction
decisions which provide reasons for acting that
are reasonable, given
what it says as to the risks to the grid and the danger of illegal
connections
.
On an application of
Gool,
[123]
or even the tests more favourable to the Associations, much doubt is
cast on the ulterior purpose ground of review; whether cast
as such,
or under the more general case that was pleaded of rationality.
There seems little to gainsay the point that Eskom
was acting
within its rights under the regulatory scheme of application to it.
Such lawful action is not transformed into
a reviewable irregularity
by labelling it an ulterior purpose or irrational.
A variant of the
enablement argument
[168]
A variant of the enablement argument
was this. Since the municipalities bear the constitutional duty
to provide basic services,
as
Joseph
has
held, Eskom as an organ of state must make it possible for the
municipalities to do so. The intuitive appeal of this
contention cannot escape this question: what is the source of Eskom’s
duty? It is not, as we have seen on the case before
us,
section 7(2) of the Constitution. Nor do the residents
make out a case that the Constitution elsewhere casts a
constitutional duty upon Eskom to enable the municipalities to
carry
out their constitutional functions. The
duties of Eskom and, in particular its developmental role as I have
described it,
are set out in the Conversion Act and ERA. The
residents have sought no recourse under this legislation. Without
a
right pleaded and established, intuition cannot make a case.
[169]
For this reason also, the mere fact
that the reduction decision has been taken by Eskom as an organ of
state does not render the
decision reviewable, without more.
Section 1 of PAJA defines administrative action, applied
to the case before us, as
the exercise of public power which
adversely affects the rights of any person. As I have already
explained, on the most generous
construction of what this means,
following
Grey’s Marine
and
its progeny, the reduction decision must have had the capacity to
affect the rights of the residents. But the residents
have no
constitutional rights as against Eskom to supply electricity, not on
the pleaded case or otherwise established before us.
The
reduction decision cannot have the capacity to affect rights that
have not been established, either existing or prospective,
as against
Eskom. The residents have thus failed to show that the
reduction decision is reviewable. The holding of
the High Court
in
Resilient High Court
that
residents may review Eskom’s decision to terminate supply on
rationality grounds is not correct. The rights of
residents in
this position are secured by recourse against the supplier of their
electricity, the municipalities, or under the
regulatory framework of
ERA.
[170]
Even if the residents had been able
to make a case that Eskom has a duty to supply electricity to the
municipalities, it is hard
to imagine that Eskom could have been
called upon to discharge that duty to enable the municipalities to
perform their constitutional
obligations. On the facts before
us, the municipalities have abdicated their duty to provide basic
services to their residents.
Eskom cannot be required to enable
the municipalities by supplying electricity when the municipalities
cannot or will not
carry out their primary constitutional
obligations. Nor can the residents subvert the scheme of the
Constitution by seeking
relief, in effect, to substitute Eskom for
the municipalities and require Eskom to do what the municipalities
have not done, but
are constitutionally required to do.
[171]
In sum, the residents have simply
failed to make out a case that Eskom owes a duty to them, either
directly or through the municipalities,
to supply them with
electricity. They have not identified the constitutional right
that requires Eskom to supply electricity
above the contracted NMD.
They
do not rely upon ERA or the
Conversion Act as the basis upon which the reduction decision is
rendered reviewable. The
residents have not confronted the
problems of subsidiarity and the exhaustion of internal remedies.
The residents have also
not, in these proceedings, sought to
compel the municipalities to carry out their constitutional duties.
In these circumstances,
the proposed review has no prospects of
success, and hence the residents have failed to make out a case for
interim relief pending
that review.
The settlement argument
[172]
I turn next to the settlement
argument which formed the centrepiece of the holding in
Resilient
SCA.
Must Eskom continue to
supply electricity to the municipalities at the levels that predate
the
implementation
of the reduction
decision on the basis that Eskom failed to comply with its duties to
make every reasonable effort to settle an
intergovernmental dispute,
as required by section 41(3) of the Constitution and IRFA? The
Supreme Court of Appeal
in
Resilient
SCA
held Eskom to have such duties and
the Supreme Court of Appeal in the present matter
agreed.
[173]
I have set out why it is that Eskom
is an organ of state, at least as presently constituted. Section
41(1)(h) of the Constitution
requires Eskom and the municipalities to
co operate by assisting and supporting one another. The
Associations have not
relied on this provision, nor could they
because, as I have observed, there can be no duty to co operate
with a sphere of
government that has abdicated its own constitutional
responsibilities. The burden of the Associations’ case,
both in
the Supreme Court of Appeal and before us, was
to rely upon the settlement argument in
Resilient SCA.
[174]
As
stated above, section 41(3) of the Constitution places an obligation
on
an
organ of state involved in an intergovernmental dispute to make every
reasonable effort to settle the dispute by means of mechanisms
and
must exhaust all other remedies before it approaches a court to
resolve the dispute.
[124]
[175]
The mechanisms and procedures that
have been provided to permit Eskom to comply with its duty to take
every reasonable effort to
settle an intergovernmental dispute are to
be found in IRFA. Curiously, in terms of section 2 of IRFA,
that Act applies to
the national government, all provincial
governments, and all local government; but it does not apply to any
public institution
that does not fall within the national, provincial
or local sphere of government. The state is Eskom’s sole
shareholder
and the Minister of Public Enterprises has an important
role to play in agreeing to Eskom’s Shareholder compact.
Whether
that suffices to make Eskom part of national government
is a question I do not need to answer because I shall assume that
IRFA
may, for the purposes of section 2, be of application to Eskom.
[176]
There
are two reasons that nevertheless render IRFA of no assistance to the
case of the residents. First, Chapter 4 of IRFA
concerns the
settlement of intergovernmental disputes. But Chapter 4 does
not apply to the settlement of specific intergovernmental
disputes in
respect of which other national legislation provides resolution
mechanisms and procedures.
[125]
That is precisely what section 30(1)(b) of ERA does.
[126]
NERSA enjoys jurisdiction to settle disputes between a customer
and a licensee, that is, between the municipalities and Eskom.
The
central intergovernmental dispute in this matter is between the
municipalities and Eskom. Hence, IRFA does not
apply to this
dispute and ERA does. Granted, this intergovernmental dispute
has wider ramifications that may involve provincial
government and
perhaps national government given the wholesale failure of the
municipalities. But Eskom is not in any intergovernmental
dispute with provincial or national government.
Its
dispute
is with the municipalities, and that dispute falls to be settled by
NERSA under section 30(1)(b) of ERA. IRFA does
not apply to the
dispute between Eskom and the municipalities.
Resilient
SCA
and the Supreme Court of Appeal in the present matter fell into error
on this score.
[177]
The second reason that IRFA is of no
assistance to the Associations is that in terms of section 45(1)
no organ of state may
institute judicial proceedings in order to
settle an intergovernmental dispute, unless the dispute has been
declared a formal intergovernmental
dispute in terms of section 41 of
IRFA and all efforts to settle the dispute, in terms of Chapter 4 of
IRFA, were unsuccessful.
Section 45(1) determines how
Chapter 4 of IRFA impacts upon judicial proceedings. However,
the judicial proceedings
in the present matter
were
not
initiated by Eskom but by the Associations. There cannot be an
intergovernmental dispute between the Associations and
Eskom because
the Associations are not organs of state. Nothing in
section 41(3) of the Constitution, nor in IRFA,
can
non-suit Eskom in a claim initiated by private bodies against it.
The purpose of section 41 of the Constitution, read
with
section 45(1) of IRFA, is to require that those subject to
section 41(3) make every reasonable effort to settle their
disputes before having recourse to the courts. What neither the
Constitution nor IRFA do is to non suit Eskom in circumstances
where a private party initiates judicial proceedings against it. In
the result, Eskom is entitled to defend itself in those
proceedings,
and IRFA does not prevent it from doing so.
[178]
The settlement argument must
therefore
fail.
The
balance of convenience
[179]
The second judgment says the balance of convenience favours
the Associations because of the consequences that have ensued from
the
reduction decisions. Additionally, so it says, it is not as
though in the interim Eskom cannot provide the additional
electricity.
The second judgment does not weigh in the balance
what Eskom has set out in its affidavits.
[180]
Eskom has indicated that in the past it was able to supply
electricity above the NMD levels due to other customers not
utilising
their NMD allocations to the full. Furthermore, in
addition to the strain on the national grid, Eskom makes the case
that
the municipalities’ infrastructure is dilapidated.
For as long as this interim order operates, Eskom will be
compelled
to supply electricity above the NMD, putting the
infrastructure and national grid under additional strain.
Although Eskom
has penalised the municipalities for exceeding the
NMD, this has not induced corrective action by the municipalities.
On
the contrary, the municipalities continue to abdicate their
duties.
[181]
These are weighty considerations. So too are the
terrible conditions that have resulted in the quality of life of
residents.
There is serial hardship and inequity in that
residents who pay for electricity nevertheless suffer great
detriment.
[182]
I
recognise that the harm to human health and well-being that is
suffered by the residents without interim relief may appear greater
than our collective interest in the integrity of the grid, the
national availability of electricity and the solvency of Eskom.
But
this equation fails to take account of the true source of the
problem: that the municipalities are not carrying out their
constitutional and statutory duties. They must be made to do
so, and if they cannot, then, as the Constitution requires,
national
and provincial government must step in to see to the effective
performance by the municipalities of their functions (section
155(7)
of the Constitution).
[127]
This scheme of constitutional responsibility should not be
subverted by using interim orders sought before the courts to
assign
the duties of the municipalities to Eskom.
[183]
There is one further consideration that is systemic in nature.
If Eskom is required to discharge the duties of the
municipalities
in this case, it will in all likelihood be called upon
to do so across the hundreds of municipalities across the country
that are
in disarray. As the cases to which we have been
referred indicate, this process appears to be well advanced. Eskom
is a national asset upon which the welfare of the entire country
depends. What the residents seek in this case, replicated
across the country, will give rise to considerable risks for Eskom,
and hence to our national welfare.
[184]
The order of the High Court is a mandamus. It compels
Eskom to supply electricity above the NMD levels, to install the
necessary
infrastructure to ensure the supply of this electricity and
to provide ringfeed supply that will serve as a back up during
emergencies (this is in respect of Ngwathe Municipality).
Orders of this kind, writ large across the country, have grave
consequences.
[185]
Taking these matters into account, I cannot find that the
balance of convenience favours the residents. But even if it
did,
absent a right to the supply of electricity from Eskom, there is
no basis upon which the interim relief granted by the High Court
can stand.
Conclusion
[186]
The interim relief that the
Associations sought and obtained in the High Court was
predicated upon their having a
prima
facie
right to review the reduction
decision. The Associations have failed to establish that right.
Furthermore, the Associations
have not sought relief under the
regulatory
scheme created by ERA, as they
could and should have done. Their review, as formulated, is
stillborn under the principle of
subsidiarity and for failing to
pursue an internal remedy. IRFA provides no basis to non suit
Eskom, much less does
it accord a right of supply to the residents.
[187]
Accordingly, leave to appeal must be
granted and the appeals upheld. The orders of the
Supreme Court of Appeal
should be set aside and in
their place the applications of the residents must fall to be
dismissed. As the residents have
raised matters of importance
in the public interest, no costs should be awarded against them.
[188]
Had
I commanded the majority, I would have made the following order:
1. Leave
to appeal is granted in both applications.
2.
The appeal in respect of both applications is upheld.
3.
The order of the Supreme Court of Appeal is set aside and substituted
with the following:
“
The
appeal is upheld. The order of the High Court is set aside and
replaced as follows:
In
Case number 31813/20: The application is dismissed.
In
Case number 35054/20: The application is dismissed.”
4.
There is no order as to costs.
MADLANGA J
(Mathopo J, Mhlantla J, Theron J and Tshiqi J
concurring):
Introduction
[189]
It is deeply disturbing that – through no fault of their
own – the residents of the Lekwa and Ngwathe
Municipalities
(residents) are subjected to a situation that violates
several of their fundamental rights protected in the Bill of Rights.
A situation that infringes their right to dignity, their right of
access
to healthcare services, their right
of access to sufficient water, their right to an environment that is
not harmful to health
or well-being and the right to basic
education. The residents add that there is even a threat or
real risk of infringement
of the right to life. All this, as a
direct consequence of Eskom’s conduct. I say all this is
happening through
no fault on the part of the residents because they
say that the two municipalities have a prepaid electricity system and
that they
(the residents) do pay their dues. That
notwithstanding, they find themselves caught up in the dispute
between Eskom and
the errant municipalities. A dispute at the
centre of which is the woeful and reprehensible failure by the
municipalities
to pay Eskom for the electricity it supplies, and
which I do not condone in the least. A classic, practical and
painful manifestation
of the saying, “When two elephants fight,
it is the grass that gets trampled.”
[190]
At
the outset, let me clarify that I make no holding on whether the
residents have a constitutional right to the supply of
electricity
by Eskom.
[128]
I do not find it necessary to make that holding because, even though
the residents did assert that right, they rely on several
other
constitutional rights and those other rights are dispositive of the
matter. I will focus only on those other rights.
[191]
At
issue is whether – pending the finalisation of review
proceedings that the residents intend instituting
[129]
– this Court must allow the effects of Eskom’s conduct to
persist. Must this Court –
at
an interim
stage
– allow the residents to be subjected to such abject misery and
horrendous violation of fundamental rights? My colleague
Unterhalter AJ, whose judgment (first judgment) I have had
the pleasure of reading, says yes. I say no.
[192]
Upfront let me highlight a fundamental flaw in my colleague’s
reasoning. I do so because that fundamental flaw permeates
the
first judgment and is central to the conclusion my colleague
reaches on the
merits
. That flaw is
the idea in the first judgment that the residents should have
asserted and proved the existence of a specific
constitutional right
to be supplied with electricity by Eskom. As I demonstrate more
fully later, that idea is mistaken.
The residents do not have
to rely on any such constitutional right. They assert several
other rights protected by the Bill
of Rights, which I highlight
above. Without question, the residents do enjoy constitutional
protection of those rights.
Not even the first judgment
can suggest otherwise. My judgment does explain the relevance
of these rights in the context
of these proceedings and the proposed
PAJA review.
[193]
Secondly, I must underscore a related proposition. On my
reading, the first judgment says there must be a direct
correlation
between what is sought to be restored through an interim
interdict and the right alleged to have been breached. Putting
it
differently and relating it to the present matter, the
first judgment suggests that if the interim interdict seeks the
restoration
of electricity supply, the right alleged to have been
breached must be a right to the supply of electricity. And, continues
the
first judgment, there must first be a duty resting on Eskom
to supply the residents with electricity and a breach of that duty
before Eskom can be ordered to restore the supply of electricity.
To illustrate its point, the first judgment embarks
on an
extensive, but basic, discussion on rights and duties and how they
interface.
[194]
The first judgment’s proposition fails to take into
account the fact that multiple rights protected in the Bill of Rights
can be violated by a single action. And
those
rights are not always squarely or
perfectly
correlative or corresponding. What informs the need for their
vindication is the fact of their violation. In the present
matter it is the sudden substantial reduction of electricity that
resulted in the rights violations. The logical corrective
measure to address the rights violations is the reversal of the
causative act. That is, the restoration of the usual
electricity
supply. How else do you halt the rights
violations? Do you do nothing and throw up your hands in
complete despair whilst
the violations continue unabated? If
that were the case, the law would really be the proverbial ass.
[195]
This is less about the residents’ right to the supply of
electricity by Eskom (which they need not assert) and more about
correcting Eskom’s legally impermissible action. Why is
Eskom’s conduct legally impermissible? In this matter
the
rights at issue are rights that the residents enjoy in terms of the
Bill of Rights. How these rights feature is that
Eskom’s
conduct of substantially reducing electricity supply has resulted in
their infringement. Each
infringement
constitutes an “adverse” and “material and adverse”
effect envisaged in sections 1 and 4(1) of PAJA
respectively. So, in accordance with administrative law 101,
we have here a decision by Eskom, an organ of state,
made in the
exercise of a public power in terms of the ERA, which adversely
affects the residents’ rights. And
exactly because of the
deplorable conditions to which the residents have been subjected as a
result of Eskom’s decision,
a fact which is accepted by the
first judgment, the decision does have a direct, external legal
effect. It defies logic
how the causative act – the
substantial reduction of electricity supply – should suddenly
be taken out of the equation
and be completely irrelevant in
redressing the rights violations.
[196]
With all this in mind, one will immediately see that the
exposition in the first judgment on rights, duties,
rights
holders, duty bearers and one or more other basic concepts on rights
is totally irrelevant.
[197]
Thirdly,
I wish to highlight that the first judgment erroneously
concludes that section 7(2) of the Constitution finds
no
application here. Before I go any further, let me make the
observation that I am able to reach the outcome I propose even
without reliance on section 7(2) of the Constitution. The
residents aver that the administrative action of the substantial
reduction of electricity supply adversely affected several of their
fundamental rights protected in the Bill of Rights. They
also
say that the administrative action was taken without following a fair
procedure. That is sufficient for purposes of
a
prima facie
case founded on section 6(2)(c) of PAJA.
[130]
As I say later, it would be the height of illogicality if those same
fundamental rights cannot ground the interim interdict
sought pending
finalisation of the intended PAJA review. I explain later that
the nature of a “right” that may
be asserted for purposes
of a PAJA review is quite expansive in its reach. It
encompasses rights protected in the Bill of
Rights. It is
exactly those rights that have been asserted by the residents.
[198]
Adverting to section 7(2) of the Constitution –
which I deal with purely because of the first judgment’s
insistence
that Eskom owed no duty whatsoever to the residents –
the section decrees that “[t]he state must respect,
protect,
promote and fulfil the rights in the Bill of Rights”. The
basis
of the erroneous insistence is that –
as the residents enjoy no constitutional right to the supply of
electricity by Eskom
– there is no right to be respected,
protected, promoted and fulfilled by Eskom in terms of section 7(2).
[199]
What
is particularly relevant in section 7(2) is the
obligation
resting on the state (which includes Eskom as an organ of state) to
respect
the rights in the Bill of Rights. Of the four section 7(2)
obligations (respect, protect, promote and fulfil), I single
out
“respect” because I am not dealing with the matter on the
basis that Eskom bears a direct, positive duty to supply
electricity
to the residents. The section 7(2) obligation to respect
the rights in the Bill of Rights entails that the
state must refrain
from unreasonable conduct that results in the infringement of rights
in the Bill of Rights. I use
the reasonableness standard
based on the majority judgment in
Glenister
.
[131]
There Moseneke DCJ and Cameron J held that “[s]ection 7(2)
implicitly demands that the steps the state
takes must be
reasonable”.
[132]
[200]
The
sudden
and
substantial
reduction of the electricity supply which – according to the
residents was made without notice
[133]
– was the trigger that resulted in the catastrophic
infringements of the residents’ rights. Therein lies the
basis of the residents’ case that Eskom failed to respect
several of their rights protected by the Bill of Rights.
In
terms of section 7(2) of the Constitution the state
(including Eskom) bears an obligation to respect the rights in
the
Bill of Rights. If the conduct – howsoever arising –
has the effect of infringing the residents’ rights,
that is the
focal point. The question is: is there a rights violation
arising from Eskom’s conduct? I say there
is. The
first judgment says there is not. Of course, it says so
because its focus is on the wrong right.
When I return to this
section 7(2) point later, I rely on
Juma Musjid
[134]
by way of analogy.
[201]
The first judgment misses all this because it fixates on the
idea of constricting the right the residents ought to assert and
prove
as being a
specific
constitutional
right to a direct supply of electricity by Eskom. That
misconceived point of departure naturally leads to
a wrong outcome.
[202]
I emphasise the substantial nature of the reduction of
electricity supply because of its catastrophic effect on the lives of
the
residents. So, this judgment is not about any reduction.
It is about a reduction, the effect of which is of the catastrophic
nature I describe shortly. The first judgment’s
approach is quite absolutist on the idea that the only relevant
right
is the residents’ right to a supply of electricity by Eskom.
On that approach, even if Eskom were suddenly
and without notice
to effect a total blackout, for example, for a month or more,
affected end users would not be in a position to assert rights
protected
in the Bill of Rights as a basis for a PAJA review of the
decision in terms of which the blackout was effected. To say
that
even under those circumstances end users would have no right
protected by the Bill of Rights to assert revolts against my sense
of
constitutionalism. And it is not an answer to this rights
question to say that the residents may or might well have some
other
basis to challenge the decision.
[203]
Fourthly
and relatedly, as I said, the interim interdict at issue was granted
pending a PAJA review. What triggers an entitlement
to a PAJA
review is a decision that adversely affects the rights of any
person.
[135]
Quinot and Maree point out that this definition may not give all the
necessary guidance to an
administrator
who is yet to take a decision.
[136]
That is so because “an administrator must know whether [their]
decision will impact adversely on the rights
before
that decision is taken in order to know whether it is administrative
action and would thus require the prescripts of PAJA”.
[137]
An elucidation by Nugent JA in
Grey’s
Marine
provides an answer.
[138]
He said, correctly, “decision” was “probably
intended rather to convey that administrative action is action
that
has the capacity to affect legal rights”.
[139]
This has been accepted by this Court.
[140]
This, of course, does not serve to exclude a decision that does
affect the rights of persons.
[204]
Axiomatically,
Eskom’s decision to reduce electricity supply has adversely
affected the residents’ right to dignity,
their right of access
to healthcare services, their right to an environment that is not
harmful to health or well-being, the right
to basic education and the
right to life. So, these rights bear
relevance
to the intended PAJA review. As I show later, “rights”
– as envisaged in the definition of “administrative action”
in section 1 of PAJA – has a wide meaning. That
meaning encompasses the rights asserted by the residents.
These
rights and the adverse effect on them are also of significance
towards proving the first and second requirements for an interim
interdict.
[141]
[205]
That
is the context in which the rights must be viewed. The
first judgment disregards this context when it says “
the
residents cannot claim something as of right which forms no part of
the
contents
of the rights they invoke. And no invocation of deplorable
social and economic effects can cure this juridical lacuna”.
[142]
There is no lacuna. In fact, it would be perverse to have a
situation where a litigant establishes a right adversely
affected by
a decision for purposes of a PAJA review, but is unable to seek
protection of that right by way of an interim interdict
pending the
PAJA review. So, it manifestly makes sense that the
unrestricted right protected by the Bill of Rights can also
be the
same unrestricted right protectable in terms of an interim
interdict. I do not understand why the first judgment
insists on restricting the nature of the right.
[206]
Fifthly
and crucially, my judgment does not hold that the residents are
entitled to a continued supply of electricity in quantities
that
guarantee that the rights they assert are not infringed even in
circumstances where
Eskom
is entitled to terminate or reduce supply in terms of section 21(5)
of the ERA. This judgment says no more than
that, in this
instance, pending the determination of the proposed PAJA review of
Eskom’s exercise of the section 21(5)
power, the residents
must be afforded interim relief that directs Eskom to restore
electricity supply to what it was before the
reduction. This
observation is crucial, because it cuts across what the
first judgment perceives as an ominous threat
of a total
collapse if Eskom is not allowed to reduce or terminate supply where
that is warranted. That is but a bogeyman
and we must see it
for what it is. The residents’ case does not stand in the
way of warranted section 25(1) reductions
or terminations of supply.
Reductions or terminations must take place in a manner not
susceptible to a PAJA review;
that
is all that my judgment says
.
No bar at all to warranted section 21(5) reductions or
terminations. Is the first judgment suggesting that
Eskom
is entitled to ride roughshod over the residents’ right to just
administrative action? Eskom as an organ of state
bears a
higher duty “to respect the law,
to
fulfil procedural requirements and to tread respectfully when dealing
with rights
.
. . . It must do right, and it must do it properly”.
[143]
Although said in a different context, these words are apposite here
as well.
[207]
All that my judgment does is to say Eskom is perfectly
entitled to avert any ominous grid collapse that it perceives.
But
because ours is a constitutional state, Eskom must do so in
accordance with the Constitution and the law. It is neither
above
the law, nor a law unto itself. From where the
residents
are sitting, alleging as they do that Eskom did not give them notice,
the substantial reduction came out of nowhere like a bolt
of
lightning. On their version of the facts, which I do not
understand to be contradicted by Eskom, they were denied even
the
very basic opportunity to brace themselves for the substantial
reduction in electricity supply. More importantly, they
were
not afforded an opportunity to make representations to Eskom.
The importance of notice and an opportunity to make representations
cannot be overemphasised. The opportunity is so important that
authority says it must not be denied, even where it is thought
the
affected person cannot possibly have anything to say or that whatever
they may say is not likely to influence the decision.
In
John
v Rees
, Megarry J colourfully and aptly put it thus:
“
It
may be that there are some who would decry the importance which the
courts attach to the observance of the rules of natural justice.
‘When something is obvious,’ they say, ‘why force
everybody to go through the tiresome waste of time in framing
charges
and giving an opportunity to be heard? The result is obvious
from the start.’ Those who take this view
do not, I
think, do themselves justice. As everybody who has anything to
do with the law well knows, the path of the law
is strewn with
examples of open and shut cases which, somehow, were not; of
unanswerable charges which, in the event, were completely
answered;
of inexplicable conduct which was fully explained; of fixed and
unalterable determinations that, by discussion, suffered
change.
Nor are those with any knowledge of human nature who pause to think
for a moment likely to underestimate the feelings
of resentment of
those who find that a decision against them has been made without
their being afforded any opportunity to influence
the course of
events.”
[144]
[208]
This
has been quoted with approval a few times by our courts.
[145]
Hoexter and Penfold say:
“
Procedural
fairness . . . is concerned with giving people an opportunity to
participate in the decisions that will affect them,
and –
crucially – a chance of influencing the outcome of those
decisions. Such participation is a safeguard that
not only
signals respect for the dignity and worth of the participants, but is
also likely to improve the quality and rationality
of administrative
decision-making and to enhance its legitimacy.
”
[146]
[209]
I do
not engage in the debate about the interface between sections 3
and 4 of PAJA.
[147]
That is not necessary for the resolution of this matter. It is
enough to say that section 4(1) of PAJA proceeds
from the
premise that a fair procedure is necessary. Section 4(1)
provides for options open to an administrator “in
order to give
effect to the right to
procedurally
fair
administrative action” where the administrative action
materially and adversely affects the rights of the public.
[148]
The reduction decision, affecting as it does two entire municipal
areas, affected the public. And the residents aver
that Eskom
took the decision without following a fair procedure.
Administrative action that is procedurally unfair
is
liable to be reviewed in terms of section 6(2)(c) of PAJA.
That is what the residents want to hold Eskom to.
That much is
clear, and it matters not that they have pleaded more than just that.
[210]
There
is always something that informs administrative action. At
times, just like Eskom says is the case here, the
administrative
action may be meant to avert grave consequences. But however
grave the consequences, the functionary
must
follow the fair process applicable to administrative action affecting
the rights of the public set out in section 4 of PAJA.
[149]
The graveness of the consequences sought to be averted alone can
never be a licence for the functionary to act as if our
law does not
impose rights to just administrative action. Of course, the
form and extent of the fair process depends on the
nature and
circumstances of what is at issue.
[211]
At this stage of the proceedings, I say no more than that the
residents appear to have made out a strong case for the review that
is yet to be pursued in the High Court. The review stage
will likely, in the main, be about
process
, something that was
protected even by the common law under apartheid. How much
more under our constitutional system
that guarantees the right to
just
administrative
action in section 33
of the Constitution? The first judgment is an
unfortunate retrograde step. It says
there need be no notice
nor hearing in circumstances where the administrative action of a
state functionary or entity is sure to
result in the most horrendous
violations of rights protected in the Bill of Rights. And few,
very few, rights violations
surpass what the residents of the
two municipalities have been subjected to. And courts must
sit idly by and not heed
the call of the affected residents for
appropriate redress.
[212]
The
first judgment mischaracterises what I say when it suggests that
I do little more than engage in the “
invocation
of deplorable social and economic effects
”.
[150]
It says this in the context of its central thesis that
the
residents have no right to assert against Eskom.
[151]
I identify
rights
that have been
adversely
affected
[152]
by the decision to reduce the supply of electricity or
rights
that have been
materially
or adversely
affected by that decision.
[153]
[213]
I do not hold that the intended review will succeed. I
merely
say that pending its determination,
the residents are entitled to interim relief. My judgment does
not and cannot question
Eskom’s substantive entitlement, indeed
power, to terminate or reduce electricity under section 21(5) of
the ERA.
[214]
I deal with four of these issues more fully later. I
highlight them upfront because the eloquence in the first judgment
may easily
seduce
one not to see the wood
for the trees. I will say very little on the point about the
correlation between what is sought to
be restored through an interim
interdict and the right alleged to have been breached.
Section 7(2)(a) and
(c) of PAJA
[215]
I
next deal with what I consider to be a preliminary point. The
first judgment non suits the residents on, amongst
others,
the basis that they approached the High Court without first
complying with the provisions of section 7(2)(a)
of PAJA
nor showing that they are in a position to convince the
reviewing
Court to grant them exemption in terms of section 7(2)(c)
of PAJA from compliance with section 7(2)(a).
Section 7(2)(a)
provides that “no court or tribunal shall
review
an
administrative action in terms of this Act unless any internal remedy
provided for in any other law has first been exhausted”.
[154]
And section 7(2)(c) provides that “[a] court or tribunal
may, in exceptional circumstances and on application
by the person
concerned, exempt such person from the obligation to exhaust any
internal remedies if the court or tribunal deems
it in the interest
of justice”.
[216]
The substance of the first judgment’s point is that
the residents ought not to have approached the High Court for
the relief sought without first exhausting what the first judgment
suggests are internal remedies under the ERA.
The
first judgment is mistaken in this regard. The operative
word in section 7(2)(a) is “review”.
What was
before the High Court, the Supreme Court of Appeal and now this
Court is not a review. It is interim relief
for an interdict
sought by way of
urgency
pending a review.
So, in the proceedings for interim relief, section 7(2)(a)
cannot feature because these proceedings
are not a PAJA review.
It will feature in the review proceedings which, at the time the
urgent application for interim relief
was launched, were yet to be
instituted. This reasoning applies equally to section 7(2)(c)
as it concerns exemption
from the need to exhaust internal remedies
in a
review
. As to what impact, if any, section 7(2)(a)
and (c) should have on the outcome of the application for an
interim
interdict is a different matter. My response is
directed at the fact that the first judgment suggests that even
in the
present proceedings this section should non-suit the residents
in the same manner as it would in a PAJA review.
[217]
The
first judgment says my response is not an answer to its
section 7(2) point. That is so, claims the first judgment,
because as part of showing – at the stage of interim interdict
proceedings – that they “have prospects of prevailing
at
the [intended] review”,
[155]
the residents must demonstrate what their case is on compliance with
section 7(2)(a). That means they must show either
that
they
have exhausted internal remedies, or that they have a basis on which
they will seek, before the reviewing court, section 7(2)(c)
exemption from the obligation to exhaust internal remedies. The
effect of what the first judgment says is to require
the
application of two similar but different preliminary requirements in
interim interdicts sought in the context of PAJA reviews
that are
either pending or still to be instituted.
[218]
The
second preliminary requirement, which – for purposes of the
brief discussion that follows – I refer to as the common
law
requirement
,
is one of the four requirements for the grant of interim interdictory
relief. It is that an applicant for an interim interdict
must
show that there is no other satisfactory remedy. This being one
of the requirements for the grant of an interim interdict,
whether it
has been satisfied is axiomatically a question for decision by the
court determining the request for an interim interdict.
I say
the two requirements are different because the common law requirement
is about
all
interim interdicts, not only those sought in the context of pending
PAJA reviews or PAJA reviews that are yet to be instituted.
Also, the common law requirement is expansive in its reach in the
sense that it brings within its sweep any other
satisfactory
remedy. The limit is whether the remedy is satisfactory; a
question the answer to which depends on the circumstances of each
case. And this remedy, may, but need not, be an internal
remedy. On the other hand, what need be exhausted before a
court may entertain a PAJA review are
internal
remedies. Hoexter and
Penfold
say “internal” and “any other law” in the
phrase “any internal remedy provided for in any other law”
must be “read restrictively to include only remedies
specifically provided for in the legislation with which the case is
concerned and to exclude optional extras”.
[156]
Lastly, section 7(2)(a) of PAJA, in terms, applies to PAJA
reviews, not interim interdicts. That said,
the two
requirements are similar because both are about the need to exhaust
other remedies before relief can be granted.
[219]
The first judgment insists that, in the case of an
application for an interim interdict pending a PAJA review, in
addition
to the requirement of showing that there is no other
satisfactory remedy, an applicant must show that, at the later PAJA
review
proceedings, section 7(2)(a) will not be an impediment.
To my mind, this question is not as simple as the first judgment
makes it out to be. Without making any decision in this regard,
I will point out possible difficulties that lie in the path
of the
first judgment’s approach. And I put it no higher
than possible difficulties.
[220]
First,
the first judgment’s approach is unduly restrictive.
On its own, the common law requirement is already burdensome
to the
right of access to court.
[157]
With the first judgment’s insistence on the additional
requirement
,
this burden is doubled. Put differently, the result of the
first judgment’s approach, implicitly insisting as
it does
on these two preliminary requirements, is that the attainment of
interim interdicts pending PAJA reviews is a tall order.
A tall
order that has a negative impact on the fundamental right of access
to courts guaranteed in section 34 of the Constitution.
This, in circumstances where section 7(2)(a) says nothing about
interim interdicts sought pending PAJA reviews.
[221]
An interpretation that says section 7(2)(a) of PAJA
does not apply to applications for interim interdicts pending PAJA
review applications better conduces to the enjoyment of the right of
access to courts. And there is precedent – albeit
in the
context of section 7(2)(c) of PAJA – that upheld a
preference for an interpretation that better protects
the right of
access to courts. That is the case of
Earthlife Africa
where Griesel J held that—
“
in
case of doubt in relation to either of the two criteria laid down by
section 7(2)(c) of PAJA, the Court should, in my view, incline
to an
interpretation of the facts and the law that promotes, rather than
hampers, access to the courts.”
[158]
[222]
The Court adopted this permissive approach in the context of
section 7(2)(c) which already seeks to ameliorate the
restrictive
effect of section 7(2)(a). One would have
thought that this permissive approach must apply with more force in
the context
of section 7(2)(a), which is more restrictive.
[223]
Second,
in
Gavric
[159]
Theron J effectively held that in exceptional circumstances an
applicant’s failure to apply for an exemption in terms of
section 7(2)(c) may be excused. I am not unmindful of the fact
that – on the Court’s holding – the
Gavric
facts were highly exceptional. But the point of substance is
that there may be any number of exceptional circumstances.
That
being the case, non suiting an applicant at the stage of the
application for an interim interdict for failure to show
that there
is enough that will convince the reviewing court to grant a
section 7(2)(c) exemption denies the applicant the
possibility
of an exemption even where there is no application.
[224]
Third, the purpose of the section 7(2)(a) requirement is
relevant to the interpretative exercise. That purpose, which is
to
ensure that the administrative process is not undermined, was
elucidated thus by Mokgoro J in
Koyabe
:
“
[A]pproaching
a court before the higher administrative body is given the
opportunity to exhaust its own existing mechanisms undermines
the
autonomy of the administrative process. It renders the judicial
process premature, effectively usurping the executive
role and
function. The scope of administrative action extends over a
wide range of circumstances, and the crafting of specialist
administrative procedures suited to the particular administrative
action in question enhances procedural fairness as enshrined
in our
Constitution.
”
[160]
[225]
This purpose will not in the least be undermined if
section 7(2)(a) of PAJA plays no role in the determination of
applications
for interim relief pending PAJA reviews. At the
stage of review, an applicant may be non-suited in terms of
section 7(2)(a)
for failure to exhaust internal remedies before
seeking review. Or the reviewing court may refuse a
section 7(2)(c)
application for the exemption of non-compliance
with section 7(2)(a). And when all this is done at the
review stage,
the purpose of section 7(2)(a) will have been
served. On the contrary, the additional requirement insisted
upon by the
first judgment serves no purpose other than to make
the attainment of an interim interdict pending a PAJA review more
difficult.
I say so because, as I highlight shortly, the facts
of this case cry out for the grant of the interim mandatory interdict
sought
by the residents. And – for reasons proffered
later – I see no legal impediment either. But the
first judgment
says the residents cannot get the interdict.
On the facts that I say cry out for the interdict, the residents
accurately
describe what has happened as a “human
catastrophe”. And it is. What stands in the way of
the grant of
the otherwise well-deserved interim interdict are only
the first judgment’s impermissibly restrictive approach to the
nature
of the constitutional right to which the application is pegged
and technical hurdles, including the additional section 7(2)
requirement, imposed by the first judgment.
[226]
Fourth, in
Bato Star
O’Regan J accepted the
possibility that review proceedings and the exhaustion of internal
remedies may run concurrently.
In her own words:
“
[A]
court minded to grant permission to a litigant to pursue the review
of a decision before exhausting internal remedies should
consider
whether the litigant should be permitted simultaneously to pursue
those internal remedies. In considering this question,
a court
needs to ensure that the possibility of duplicate or contradictory
relief is avoided.”
[161]
[227]
All that said, I leave open the question of what role, if any,
section 7(2)(a) and (c) must play in proceedings for an
interim interdict pending a PAJA review. I do so because there
is an easy way of dealing with the issue raised by the
first judgment.
The residents have pleaded that there was
simply no satisfactory remedy other than an urgent approach to court
for an interim interdict.
The High Court’s
judgment call on that was obviously that, indeed, there was no
other satisfactory remedy.
Put differently, the High Court
was satisfied that the requirement that an applicant for an interim
interdict must demonstrate
the absence of any other satisfactory
remedy had been met. Plainly then, it would be incongruous to
suggest that, despite
there being no satisfactory remedy other than
the grant of an interim interdict, following the ERA internal
remedial processes
would somehow be an exception and require
exhaustion as a satisfactory remedy.
[228]
When
the proceedings for an interim interdict were instituted, the ERA
processes were a possible remedy. But, on the
basis of the
residents’ averment that there was no other satisfactory
remedy, that must obviously mean that the residents
are saying
the ERA processes were not options that they could invoke.
Legal remedies exist as a matter of substantive
law.
[162]
But whether – in a given case – it is practical to call
in aid any of those remedies is a factual question.
Eskom does
not appeal against the finding that there was no other satisfactory
remedy. It is appealing only the legal question
whether, before
the High Court, the residents – as a matter of law –
ought to have addressed the section 7(2)(a)
and (c) issue.
Thus, it is not open to this Court to consider the factual question
whether it was practical for the
residents to pursue other remedies,
including the ERA processes. That is a factual question
that has been determined
by the High Court, and it is not on
appeal before us. The first judgment does grapple with
this factual question
and concludes that there was no evidence on
it. That is an idle exercise as it is not open to the
first judgment to
do so.
[229]
In sum, even if the ERA processes could have constituted
a type of satisfactory remedy, they cannot now stand alone and
somehow
ground Eskom’s appeal under section 7(2)(a)
and (c) of PAJA.
Subsidiarity
[230]
The
first judgment also invokes the principle of subsidiarity.
It says that the ERA comprehensively regulates the
generation,
transmission and distribution of electricity and the relationships of
supply. These relationships include the
attendant rights and
obligations, insofar as they relate to municipalities and Eskom which
supplies bulk electricity to municipalities
and to municipalities (as
Eskom’s customers) and residents of municipalities (as end
users).
[163]
The first judgment then makes the observation that, based on
this Court’s jurisprudence, the principle of subsidiarity
has a
number of applications.
[164]
And—
“
[o]ne
application of the principle is that a litigant cannot directly
invoke a constitutional right when legislation has been enacted
to
give effect to that right. The litigant must either challenge
the constitutionality of the legislation so enacted or rely
upon the
legislation to make its case.
”
[165]
[231]
The
first judgment concludes that where Parliament has legislated as
comprehensively as it has done in the ERA, the residents
cannot
look outside the ERA to assert rights against Eskom. In
accordance with the principle of subsidiarity, the residents
must
assert their rights in terms of the ERA or challenge its
constitutionality, which they have not done. Finally,
the
first judgment non suits the residents on the basis that
“
[t]he
principle of subsidiarity excludes the relief that the residents have
sought in their review, and hence precludes the grant
of the interim
relief that they have obtained
”.
[166]
[232]
The
first judgment is wrong in non-suiting
the
residents on this basis. In the minority judgment in
My
Vote Counts I
,
Cameron J has this to say:
“
Subsidiarity
denotes a hierarchical ordering of institutions, of norms, of
principles, or of remedies, and signifies that the central
institution, or higher norm, should be invoked only where the more
local institution, or concrete norm, or detailed principle or
remedy,
does not avail. The word has been given a range of meanings in
our constitutional law. It is useful in considering
the scope
of subsidiarity, and Parliament’s reliance on it – to
have them all in mind.”
[167]
[233]
The
My Vote
Counts I
minority judgment proceeds to instance how the principle of
subsidiarity has been applied by this Court. It first refers
to
the now discarded
Mhlungu
principle
that if a case can be decided without reliance on a constitutional
issue, it should be so decided.
[168]
Cameron J explains that this principle was crafted at the time
when “the Appellate Division [now the Supreme Court
of Appeal]
had no constitutional jurisdiction, and this Court had constitutional
jurisdiction only”.
[169]
It makes the point that the abandonment of the
Mhlungu
principle
has had the effect of promoting “the primacy of constitutional
approaches to rights determination”.
[170]
But it cautions that this does not mean—
“
re
sort
to constitutional rights and values may be freewheeling or
haphazard. The Constitution is primary, but its influence
is
mostly indirect. It is perceived through its effects on the
legislation and the common law – to which one must look
first.”
[171]
[234]
The
minority judgment next renders the most common articulation of the
principle of subsidiarity, which is about what Klare calls
an “
effect
giving statute”,
[172]
a tag I adopt for convenience. So called because it concerns
statutes that
give
effect to constitutional rights
.
The
articulation is that—
“
a
litigant cannot directly invoke the Constitution to extract a right
he or she seeks to enforce without first relying on, or attacking
the
constitutionality of, legislation enacted to give effect to that
right. . . . Once legislation to fulfil a constitutional
right
exists, the Constitution’s embodiment of that right is no
longer the prime mechanism for its enforcement.
The legislation
is primary. The right in the Constitution plays only a
subsidiary or supporting role.
”
[173]
[235]
What was at issue in
My
Vote Counts I
was an
effect
giving statute.
[236]
I
quote extensively from the minority judgment because the
majority
did
not take issue with any of these holdings.
[174]
In
Masuku
,
Khampepe J held, quoting the minority in
My
Vote Counts I
:
“
Broadly,
the principle of subsidiarity is the judicial theory whereby the
adjudication of substantive issues is determined with
reference to
more particular, rather than more general, constitutional norms.
The principle is based on the understanding
that, although
the Constitution enjoys superiority over other legal sources,
its existence does not threaten or displace ordinary
legal principles
and its superiority cannot oust legislative provisions enacted to
give life and content to rights introduced by
the Constitution.
In simple terms, the principle can be summarised thus:
‘
Once
legislation to fulfil a constitutional right exists,
the Constitution’s embodiment of that right is no longer
the
prime mechanism for its enforcement. The legislation is
primary. The right in the Constitution plays only a
subsidiary
or supporting role.’
Ultimately,
the effect of the principle is that it operates to ensure that
disputes are determined using the specific, often more
comprehensive,
legislation enacted to give effect to a constitutional right,
preventing them from being determined by invoking
the Constitution
and relying on the right directly, to the exclusion of that
legislation.”
[175]
[237]
Without
claiming to be exhaustive, in addition to
My
Vote Counts I
and
Masuku
,
I have gone through other judgments of this Court that deal with the
principle of subsidiarity.
[176]
In
New
Clicks
,
[177]
SANDU
,
[178]
Pillay
,
[179]
Mazibuko
,
[180]
PFE International
,
[181]
De Lange
,
[182]
Thubakgale
[183]
and
Residents
of Industry House
[184]
the mention of, or pronouncement on, the principle of subsidiarity
was about effect giving statutes. Although
Bato
Star
[185]
did not mention the principle by name, “[i]
t
was the first decision to give explicit recognition to the doctrine
of subsidiarity
”
.
[186]
In that case this Court
held
that section 6 of PAJA has codified the grounds of review of
administrative action and that, therefore, one could no longer
rely
on the common law as a basis for review.
[187]
Of importance, the context was section 33(3) of the Constitution,
which provides that national legislation must be enacted
to give
effect to the rights contained in section 33(1) and (2)
[188]
and that such legislation must, inter alia, “provide for the
review of administrative action by a court or, where appropriate,
an
independent and impartial tribunal”. In this sense,
Bato Star
was also about effect giving legislation.
[238]
Even
the minority judgment of Jafta J in
Sali
dealt with the principle of subsidiarity in the context of
legislation giving effect to a right in the Bill of Rights.
[189]
[239]
Recently
in
Women’s
Legal Centre Trust
[190]
this Court applied the
principle
of
subsidiarity in a context that was unrelated to an effect giving
statute. It held that, despite its holding that the Marriage
Act
[191]
and Divorce Act
[192]
were defective, under inclusive and had given rise to a number
of rights violations, these Acts were legislation nonetheless.
It was inappropriate to hold that the state was obliged by
section 7(2) to legislate only in respect of Muslim marriages.
The appropriate course was to challenge the constitutionality of the
legislation and not merely to allege that the state had failed
to
fulfil a duty to legislate. Tlaletsi AJ completed the
picture thus:
“
If,
in the face of legislation alleged to violate constitutional rights,
litigants could seek to compel the state to legislate on
the basis of
section 7(2) directly, without challenging the legislation
itself, this would permit litigants to by-pass the
relevant
legislation, and rely directly on the Constitution. Such a
course is exactly what the principle of subsidiarity
cautions
against. Accordingly, given that the state has, albeit
deficiently, enacted legislation with regards to matters
of marriage
and divorce, the litigants are not permitted to compel the
legislature to pass legislation purely by virtue of
section 7(2).
”
[193]
[240]
Lastly,
this Court invoked the principle of subsidiarity in the context of
inter country adoptions. This was in the case
of
AD
.
[194]
Sachs J held that the principle of subsidiarity was a core factor
that governed inter-country adoptions and had to be adhered
to.
[195]
The judgment explains that the principle is sourced from article 17
of the United Nations Declaration on Social
and Legal Principles
Relating to the Protection and Welfare of Children, with special
reference to Foster Placement and Adoption
Nationally and
Internationally.
[196]
Article 17 provides:
“
If
a child cannot be placed in a foster or an adoptive family or cannot
in any suitable manner be cared for in the country of origin,
intercountry adoption may be considered as an alternative means of
providing the child with a family.
”
[197]
[241]
With
the exception of
Women’s
Legal Centre Trust
and
AD
,
mention of, or pronouncements on, the principle of subsidiarity are
about effect giving statutes. It is unsurprising, therefore,
that the first judgment also places reliance on the “[o]ne
application of the principle [that says] a litigant cannot
directly
invoke a constitutional right when legislation has been enacted to
give effect to that right”.
[198]
The legislation that the first judgment mentions is the ERA.
A difficulty that I
have
is
that no explanation is given as to the constitutional right the ERA
supposedly gives effect to. Without that explanation,
the point
made by the first judgment is incomplete.
[242]
The
lack of explanation aside, the long title of the ERA and
section 2, which sets out the objects of the ERA, suggest
that this Act has nothing to do with giving effect to a
constitutional right.
[199]
I could not pick up any part of the ERA that suggests the
contrary.
[243]
I
am well aware that, in addition to this Court’s jurisprudence,
there is a lot of learning on the principle of subsidiarity.
[200]
I do not deal with what all this learning says on the principle.
Suffice it to say Murcott and Van der Westhuizen make
the point that
the principle must apply even in instances involving legislation that
does not give effect to a constitutional right
or is not in any other
way the result of a constitutional injunction.
[201]
I am paraphrasing. How the principle must apply is that where
there is legislation of the nature I have just described
that covers
the field on a given subject, a legal remedy must be sought from that
legislation
and
not
from other “non-specific” legislation or the common law.
The effect of this would be that in the instant matter
the residents
would be precluded from seeking a review of the reduction decision
under PAJA and that, instead, they would have
to seek redress under
the ERA.
[244]
I
do not express a view one way or the other on what the authors say.
What I say instead is that thus far this Court has not
pronounced on
this point. If this point is to have any impact at all on the
case of the residents, at worst for them it would
do no more than
cast some doubt on their
prima facie
right. A definitive holding must be left for the reviewing
court and, if there be appeals, appellate courts thereafter.
It
would be mistaken for this Court, at this stage, to make a final
decision on the issue. And, because there has not been
a
definitive holding one way or the other on the point, section 34
of the Constitution
[202]
entitles the residents to seek appropriate relief in terms of
section 38 of the Constitution.
[203]
Although, as the first judgment says, the ERA is quite
expansive in its reach, it is unlike PAJA, which displaced
common law
grounds of review and codified them under section 6.
[204]
[245]
These
are not proceedings for a final interdict, which requires a showing
of:
a clear
right
;
an injury that has occurred, is occurring or is reasonably
apprehended; and absence of any other satisfactory remedy.
[205]
The first judgment’s categorical and definitive approach
pitches the standard too high. It does not recognise
that all
that need be proven at this stage is a
prima facie
right
that
may be open to some doubt
.
It seems to me the first judgment requires the showing of a
clear
right.
That cannot be. This is uncharted territory. And whether
subsidiarity should finally bar a PAJA review
must be decided by the
reviewing court.
[246]
For completeness, in case it may not
altogether be clear why the requirement of a
prima facie
right is relevant to a discussion on subsidiarity, let me offer an
explanation. The point is that if subsidiarity were to
non-suit
the residents, that would mean as a matter of substantive law, the
rights they assert
could
not be vindicated
by way of a review under PAJA. At the stage of proceedings
for an interim interdict, subsidiarity would
serve to show that the
proposed review would be a non starter. That is, the
residents would have no right or entitlement
to it. They would
lack a
prima facie
right. As I say, here we cannot reach that final conclusion.
[247]
The
first judgment says that it is not open to me to
decline
to
decide the question whether the principle of subsidiarity precludes
the residents from seeking a review of the reduction decision
under
PAJA and requires, instead, that they must seek redress under
the ERA. It reasons that this is a legal question
and that
the legal rule that a
prima facie
right may be open to some doubt relates to evidentiary matter, not
legal questions. I disagree. It is so that in
Webster
v Mitchell
,
[206]
the leading and oft cited case on interim interdicts, what was at
issue was factual matter. Right from the start the case
deals
with
Molteno
Bros
[207]
where – according to
Webster
v Mitchell
– the respondent in
Molteno Bros
“had put before the Court on the issue concerned merely a bare
denial, so that the learned judge was concerned not with the
probabilities between two contradictory versions, but with whether
the inherent probabilities of the appellant’s case were
such
that the right was
prima facie
established”.
[208]
Yes, that is plainly about facts.
[248]
In
Webster
v Mitchell
itself Clayden J also invoked the idea of a right’s
openness to some doubt in the context of factual matter.
[209]
What was at issue was whether the applicant had placed before the
court enough evidentiary material to establish
prima facie
ownership of the horse that was the subject of the application.
This says nothing about whether the openness of a right to
some
doubt
can be applied to legal questions. Contrary to the
first judgment’s categorical statement that this applies
only to factual issues, this question has been the subject of intense
judicial debate, with views being expressed for and against
either
position.
[210]
An example of a judgment that expressed disagreement with the idea of
a judge at an interim stage approaching a legal question
“half-heartedly” is
Fourie
.
[211]
Amongst others, Viljoen J said the later decision of a legal
question half heartedly decided earlier by another
judge would
be at odds with the rule on
res judicata
,
would unnecessarily increase costs, and would cause embarrassment to
the judge considering the matter later, if they want to differ
from
the earlier judge’s view.
[212]
Goldstein J differed in
Tony
Rahme Marketing Agencies
,
saying:
“
Whilst
there may be situations where a Court having to decide on an interim
interdict has sufficient time and assistance to arrive
at a final
view on a disputed legal point – in which event it probably
ought to express a firm view in order to save costs
–
situations of urgency arise when decisions on legal issues have to be
made without the judicial officer concerned having
had the time to
arrive at a final considered view. In such a situation [they
are] surely forced to express only a
prima facie
view. I cannot see how the expression of such a view and the
grant of interim relief only would conflict with the principles
of
res
judicata
.
I also see no embarrassment in an urgent Court judge being overridden
by a trial judge . . . . The interlocutory decisions
of
colleagues, and indeed those of our own, are not binding at later
stages of the proceedings and should, and I trust,
do
yield easily to persuasive arguments indicating error or
oversight.”
[213]
[249]
In
Geyser
Van Oosten J held that “a legal issue should only be
decided at the interlocutory stage of the proceedings if it
would
result in the
final
disposal
of either the matter as a whole or a particular aspect thereof”.
[214]
[250]
I take the view that it does not
help to be categorical one way or the other on this. The
approach to be adopted must be dictated
by the circumstances of each
case. Sight should not be lost of the fact that a substantial
number of applications for interim
relief are brought by way of
urgency. There is much to be said for the view that a judge
sitting in a busy urgent court does
not have as much time as does a
judge who hears trials or decides non-urgent opposed matters.
Although each judge must strive
for the attainment of the best
possible outcome in the
circumstances
, this
reality cannot be ignored. Of course, this is not an invitation
to judges considering urgent interim interdicts to
avoid deciding
legal questions which – with the necessary diligence –
are capable of definitive decision.
[251]
There are legal questions that are capable
of easy resolution to any judge worth their salt. Those must be
decided definitively.
If, as a matter of
law
,
the right asserted by the applicant for interim relief is held not to
exist at all, that will be the end of the matter.
And that will
result in a saving in costs as there will be no subsequent
litigation. On the other hand, the legal right may
definitively
be held to exist as a matter of law and all that may remain for
determination at the later proceedings may be whether,
on the facts,
the applicant has made out a case. There may also be those
circumstances where – either because of a
combination of
factors that include the complexity of the legal question, its
novelty, little or no assistance from the litigants’
argument,
the speed with which the outcome is required and lack of sufficient
time for the judge to consider the matter as best
they can –
the judge may not be in a position to reach a definitive decision on
a legal question. In
Johannesburg Municipal Pension
Fund
Malan J held:
“
Impressive
and erudite arguments were addressed to me on all these grounds.
I cannot do justice to all the considerations
referred to. All
the issues referred to involve ‘difficult questions of law’
and none of them can be described
as ‘ordinary’.
Nor is it desirable to rule at this interim stage that there is no
prospect of success on any
of these bases of review. The issues
are simply too involved (‘a serious question to be tried’)
and of such gravity
that they cannot be, and should not be, disposed
of in these interim proceedings. The city has disavowed
reliance on the
notices purporting to amend Notice 6766 and I do
not intend dealing with their validity, but accept for the purposes
of this
judgment the applicants’ contentions.”
[215]
I
see no legal impediment to a judge in such circumstances reaching a
conclusion that says
prima facie
there is enough pointing to the determination of the legal question
in the applicant’s favour in the envisaged later proceedings.
[252]
Coming
to the present question, if what I conclude above was open to
the Court determining the application for interim relief,
it is
open to this Court too. After all, this matter is before us on
appeal against what that Court decided. In addition,
as my
discussion of the question shows, it is complex, novel and, although
all counsel presented good arguments on the case in
general,
arguments
on
this question were not sufficiently extensive. In any event, it
would not be prudent for this Court to decide the question.
[216]
Of course, this Court employs the interests of justice criterion in
deciding certain questions. This is a fitting question
for the
employment of that criterion. I do not consider it to be in the
interests of justice to reach a definitive holding
on this question.
It is best left for decision by the Court that will hear the PAJA
review.
Requisites for an
interim interdict
[253]
A
litigant seeking an interim interdict must show: a
prima facie
right even if it is open to some doubt; a reasonable apprehension of
irreparable and imminent harm to the right if an interdict
is not
granted; that the balance of convenience favours the grant of an
interim interdict; and that the applicant has no other
satisfactory
remedy.
[217]
A prima facie
right
[254]
As I
indicated in the introduction, the first judgment says that the
residents have not asserted any right in the Bill of Rights
as a
basis for their entitlement to the supply of electricity. I
think the first judgment’s focus on the lack
of a right to
be supplied with electricity which is sourced from the Bill of Rights
looks at the matter too narrowly. This
narrow focus is
magnified by the analogy that the first judgment draws.
[218]
Let me demonstrate – by first focusing on the analogy –
the existence of rights enjoyed by the residents which
bear relevance
to this matter and their infringement by Eskom’s conduct.
In the analogy the first judgment says:
“
The
right to life or to dignity may be enhanced for particular classes of
persons by claims upon state resources. Every poor
person would
lead a more dignified life if the state gave them a minimum
income every month. That may be a good policy
for the state
to adopt. It is a matter of considerable public debate.
Such a policy may or may not be affordable.
But these are not
measures that may be claimed as an incident of the right to life or
the right to dignity. They should not
be decided by the
courts. They are matters to be decided by other institutions of
a democratic state: the Legislature
and the Executive.
”
[219]
[255]
Yes, poverty – especially extreme poverty in which a
disturbingly large number in our country languish – is an
unwelcome
phenomenon. But I think the analogy is inapt.
The residents’ case is not just about poverty. There has
been the interposition of something additional; something out of the
ordinary. In this regard and only for purposes of illustration,
I pay particular attention to the averments of the Ngwathe residents.
[256]
In addition to extreme poverty, the sudden and substantial
reduction in the electricity supply to within NMD levels has,
overnight,
subjected residents of the affected areas to the reality
of having to contend with what they accurately describe as a “human
catastrophe”. I state the facts based on what the
situation was when the residents approached the High Court.
That is, based on the situation before the grant of the interim
interdict.
[257]
The substantial reduction in the electricity supply has had an
adverse effect on the treatment of sewage. As a result, raw
faecal matter flows into the Vaal River, with dire consequences for
the environment and health of the residents. The health
hazard
arises from the fact that the existing infrastructure for the
extraction of water from the river is located such that it
draws what
is supposed to be potable water from the very area of the river into
which the faeces flows.
[258]
Relatedly, the inadequate supply of electricity has caused the
water purification system to malfunction, further affecting the
provision
of potable water negatively. That means even if there
was no faeces in the water, there would still be an inadequate supply
of potable water as a result of the malfunction of the water
purification system which, in turn, results directly from the
reduction
in the electricity supply. There is the spectre of
loss of human life and general adverse consequences in the provision
of
proper healthcare services at hospitals and old age nursing
homes. This is as a result of the fact that the hospitals and
old age nursing homes in the affected areas have not been spared the
effects of the reduction of electricity supply. Economic
activity has been affected to such an extent that there is a risk of
closure of some businesses and loss of jobs. Children
of school
going age are also victims as all schools from high schools to
nursery schools are negatively affected due to lack of
electricity
for many hours per day.
[259]
On
the facts and thus on the rights asserted, there are some
commonalities with the case presented by the Lekwa residents.
[220]
[260]
It
is worth noting that Eskom has not cogently denied the facts asserted
by the residents. If these facts do not demonstrate
an
infringement of several rights guaranteed in the Bill of Rights,
nothing will. Of course, the implicated rights are the
right to
dignity, the right to life, the right of access to healthcare
services, the right of access to sufficient water (I would
add this
must surely mean potable and generally usable water, not water
contaminated with faecal matter and generally not cleaned
properly),
the right to an environment that is not harmful to health or
well-being and the right to basic education. The
rights
violations arise directly from Eskom’s conduct. Thus,
there is simply no comparison with what the first judgment
–
in concluding its analogy – says may not be claimed as an
incident of the right to life or the right to dignity.
[221]
[261]
The
first judgment suggests that the rights relied upon by the
residents were not pleaded clearly for Eskom to know the case
it had
to meet.
[222]
I disagree. The articulation of the rights relied upon and the
facts pleaded in support of the rights violations is
clear enough.
The first judgment’s difficulty stems from its refusal to
accept that the relief sought could be
obtained on the basis of the
rights violations graphically pleaded by the residents. There
is simply no way Eskom would have
been at sea as to what case it had
to meet. To suggest that Eskom would not have known what case
it had to meet would be
a classic example of
ukuzimela
ngesicithi
(a siXhosa saying that means to hide behind a small, short tuft of
grass).
[262]
At the risk of being repetitive, I need to quote something
else the first judgment says. It says:
“
I
have identified the rights relied upon by the residents as the basis
upon which the Associations contend that the reduction decision
is
unlawful, and hence reviewable. The more expansive account of
the rights of the residents that are said to have been compromised
by
the reduction decision, taken up in the reasoning of the High Court,
and by way of submission before this Court, is not
borne out by the
pleaded case. This is of no small significance. Eskom was
entitled to know the case it had to meet,
and, in particular, the
rights claimed by the residents that are claimed to give rise to a
duty owed by Eskom to supply them with
electricity.
”
[223]
[263]
This misses the point. The residents make a simple
case. Eskom’s decision of substantially reducing
electricity
supply has resulted in a breach of several rights
protected by the Bill of Rights. That decision was taken
without first
giving notice or following a fair procedure. That
is borne out by the pleaded case.
[264]
The first judgment proceeds to make the point that in the
absence of
a right claimed by the residents to
give rise to a duty owed by Eskom to supply them with electricity
,
Eskom’s duty in terms of section 7(2) of the Constitution
to respect, protect, promote and fulfil the rights in
the Bill of
Rights is not triggered.
[265]
Without
deciding the question whether the residents have a constitutional
right to a direct supply of electricity by Eskom, it is
so that there
is contractual privity between Eskom and the municipalities, and not
between the residents and Eskom. That
matters not. The
lack of contractual privity does not stand in the way of the
residents asserting other rights protected
by the Bill of Rights,
which have been infringed by the decision to reduce electricity
supply substantially.
[224]
That is, rights other than the contentious right that the
first judgment says they do not enjoy.
[266]
The first judgment says
the
municipalities, and not Eskom, should be that component of the state
that must make good the state’s obligations under
section 7(2).
The residents were enjoying all the
fundamental rights I have identified. What dramatically and
suddenly changed all that
was Eskom’s implementation of its
decision to reduce supply. In terms of section 7(2) of the
Constitution which,
amongst others, provides that the state must
respect the rights in the Bill of Rights, Eskom (an organ of state)
had a duty
not to conduct itself in a manner that would result in an
infringement of those rights. It had a duty to respect those
rights
through refraining from acting in a manner that would cause
their infringement. That, of course, is subject to the
lawful
exercise of the power Eskom enjoys in terms of section 21(5) of
the ERA to reduce or terminate the supply of electricity.
[267]
The
duty resting on the state to respect the rights in the Bill of Rights
is uncontroversial. That is especially so as this
Court held in
Juma Musjid
[225]
that
even
a private person or entity
bears a negative obligation in terms of section 8(2) of
the Constitution not to act in a manner that “interfere[s]
with or diminish[es] the enjoyment of a right”.
[226]
The state’s duties under section 7(2) can be breached
“directly” or “indirectly”, for
instance,
when there is a “failure to respect the existing protection
[or enjoyment] of the right by taking measures
that diminish
that protection [or enjoyment]”.
[227]
And, more specifically in the context of what was at issue in that
case, the Court held that a private person or entity bears
a negative
duty “not to impair the learners’ right to basic
education”.
[228]
[268]
Also,
the relationship between Eskom, the municipalities and residents, on
the one hand, and the relationship, in
Joseph
,
[229]
between the municipality, the lessor and lessee, on the other, is
analogous. In
Joseph
the applicants were tenants in a residential property. The
lessor owed a substantial amount of money to City Power, the City
of
Johannesburg’s electricity service provider, in respect of the
supply of electricity to the property. As a result,
the
electricity supply was terminated.
[230]
This Court noted that the “difficulties” that arose in
the case were: the fact that the applicants were tenants
who had no
contractual right to receive electricity from City Power; and the
fact that the applicants, instead, paid their electricity
bills to
the lessor whose company had a contract with City Power for the
supply of electricity.
[231]
The Court then had to answer the question whether “
any
legal relationship exists between the applicants and City Power
outside the bounds of contractual privity that entitles
the
applicants to procedural fairness before their household electricity
supply is terminated
”.
[232]
The termination of supply had taken place without City Power
giving notice.
[233]
The applicants contended that the termination of supply without
notice was procedurally unfair. The rights that they
claimed
had been infringed as a result of the termination and which founded
the PAJA cause of action were: the right of access
to housing in
terms of section 26 of the Constitution; the right to human
dignity in terms of section 10 of the Constitution;
and the
contractual right to electricity supply in terms of the contract of
lease.
[234]
[269]
What is of importance is that
Joseph
had to grapple
with what constituted “rights” for purposes of PAJA’s
conception of that term. Before giving
an answer on this,
Skweyiya J said that the lessor—
“
concluded
a contract as a ‘customer’ with City Power for the
sole purpose of facilitating the supply of electricity
to tenants in
his building. He was a conduit. In supplying electricity
to [the residential property], City Power
knew that it was
providing electricity to tenants living in the building. It is
therefore, in my view, artificial to think
of the contractual
relationship between [the lessor] and City Power as being
unrelated to the benefits that accrued to the
applicants under this
contract.
”
[235]
[270]
Proceeding to deal with rights, he held:
“
The
focus of the enquiry therefore is the relationship, if any, between
City Power as a public service provider and users of
the service
with whom it has no formal contractual relationship. This is
similar to the approach adopted by Sachs J
in
Residents
of Joe Slovo
, in which the lawfulness of the occupation of
municipal council land by homeless families was considered.
Sachs J observed
that this question—
‘
must
be located not in the framework of the common law rights of
landowners, but in the context of the special cluster of legal
relationships between the council and the occupants established by
the Constitution and the Housing Act . . . . The very
manner in
which these relationships are established and extinguished will be
different from the manner in which these relationships
might be
created by the common law . . . . They flow instead from an
articulation of public responsibilities . . . and possess
an ongoing,
organic and dynamic character that evolves over time.’
I
am of the view that this case is similarly about the ‘special
cluster of relationships’ that exist between a municipality
and
citizens, which is fundamentally cemented by the public
responsibilities that a municipality bears in terms of the
Constitution
and legislation in respect of the persons living in its
jurisdiction. At this level, administrative law principles
operate
to govern these relations beyond the law of contract.”
[236]
[271]
In the present case, Eskom is well aware that the
municipalities receive electricity from it for onward supply to the
residents.
It is certainly also aware of the adverse impact a
sudden, substantial reduction in electricity supply would have on the
residents’
fundamental rights. Those facts cry out for
conduct on the part of Eskom that recognises this reality.
Conduct that
respects the residents’ constitutional rights that
may be infringed by the termination or substantial reduction of
electricity
supply. Initially, it is for this simple point that
I place reliance on
Joseph
.
[272]
If, in the interim interdict proceedings, it were to appear
unlikely that the intended review would succeed, that would detract
from the requirement of a
prima facie
right. The
residents complain that the substantial reduction in electricity
supply was effected without any notice.
Amongst others, this
will be the basis of the PAJA review. So, the question is
whether the residents can show –
for purposes of the proposed
review – that they were entitled to procedural fairness
under PAJA.
[273]
Let
me immediately get rid of any possible issue around the fact that
there is in existence a contract for the supply of electricity
between Eskom and the municipalities. The interposition of the
contract cannot alter what is essentially a statutory relationship
governed by the ERA between these organs of state. It
matters not that the contract makes provision for the reduction
or
termination of supply. Of importance is the fact that
section 21(5) of the ERA provides for the reduction and
termination of supply. It would be sophistry to suggest that a
reduction or termination of electricity supply was effected
in terms
of the contract of supply, and not in terms of section 21(5) of
the ERA. Indeed, contracts interposed
to serve purposes
that are concurrently served by statutory fiat would be the simplest
stratagem to avoid consequences of the improper
exercise of public
power.
[237]
Therefore, the termination of supply is unquestionably the exercise
of a statutory power. I then move on to the question
of the
residents’ entitlement to procedural fairness.
[274]
On that,
Joseph
provides an answer yet again.
There, this Court first dealt with whether the termination of supply
constituted administrative
action. To that end, it had to
answer the question whether the termination had a “direct,
external legal effect”
on the residents. In answering the
question affirmatively, it held:
“
I
need do no more on the facts of this case than endorse the broad
interpretation accorded to [the phrase ‘direct, external
legal
effect’] by the Supreme Court of Appeal in
Grey’s Marine
,
where it stated that the phrase ‘serv[es] to emphasise that
administrative action impacts directly and immediately on
individuals’.
Indeed, a finding that the rights of the
applicants were materially and adversely affected for the purposes of
section 3 of PAJA
would necessarily imply that the decision
had a ‘direct, external legal effect’ on the applicants.
Conversely,
a finding that the rights of the applicants were not
materially and adversely affected would have the result that
section 3
of PAJA would not apply – barring, of
course, a claim based on a legitimate expectation which was not
raised in this
case.
”
[238]
[275]
Joseph
found it unnecessary to decide the case on the
basis of the alleged infringement of the rights of access to housing
and of dignity.
It decided it on the basis that the tenants
enjoyed the right to receive electricity as a basic municipal
service. For the
reasons I have stated already, in the instant
matter, the several rights asserted by the residents are of relevance
for purposes
of the intended PAJA review. Let me set out the
residents’ case on the intended PAJA review more fully.
[276]
The
Lekwa residents aver that Eskom reduced electricity to within NMD
levels without any notice to them and, therefore, without
any
hearing. They also contend that actual electricity usage is 38%
more than the NMD levels and that looking to historic
NMD levels for
justification for the reduction in electricity supply is irrational,
unreasonable and divorced from reality.
The Ngwathe residents
aver that Eskom’s conduct is not genuinely about wanting to
keep within NMD levels for the reasons
Eskom has given.
[239]
Rather, Eskom is seeking to force the affected municipalities to
settle their outstanding debts. Even though not pleaded
explicitly, this implicates section 6(2)(e)(ii) of PAJA.
This section renders administrative action that was taken for
an
ulterior purpose or motive susceptible to review.
[277]
It matters not even if the Ngwathe residents have not
specifically alleged that one of the grounds of review will be that
Eskom
took its decision for an ulterior purpose. Although
ordinarily parties must be held to their pleadings, courts must not
be
dogmatic about this. Just under a century ago Innes CJ
held in
Robinson
held:
“
The
object of pleading is to define the issues; and parties will be
kept strictly to their pleas where any departure would
cause
prejudice or would prevent full enquiry. But within those
limits the Court has a wide discretion. For pleadings
are made
for the Court, not the Court for pleadings. And where a party
has had every facility to place all the facts before
the trial Court
and the investigation into all the circumstances has been as thorough
and as patient as in this instance, there
is no justification for
interference by an appellate tribunal, merely because the pleading of
the opponent has not been as explicit
as it might have been.”
[240]
[278]
The Lekwa residents characterise this as a rationality issue.
They plead that it is irrational of Eskom to reduce the electricity
supply in an attempt to force Lekwa Municipality to pay its
debt. Based on this, they then say the means chosen by Eskom
are not rationally connected to the purpose sought to be achieved.
That is plainly a case founded on section 6(2)(f)(ii)
of PAJA.
[279]
I am satisfied that the residents have not only demonstrated
their entitlement to the pleaded fundamental rights, but have also
set out grounds of review which are sufficient for this stage of the
proceedings. Whether they will satisfy the reviewing
court is
for that court to determine.
[280]
The
first judgment adopts a restrictive approach to the nature of
the rights that may be asserted. It claims in this
regard,
apparently for purposes of both the interim interdict and the
intended PAJA review, that the residents can assert only
the right to
the supply of electricity by Eskom. I repeat that this is
mistaken. On first principles, the nature of
the right
envisaged by the definition of “administrative action” in
section 1, read with section 4(1), of PAJA
is not
restricted. All that it need be is a right. It may take
whatever form based on what we know of that concept
in common law,
statutory law or in respect of constitutionally protected
rights.
[241]
The only question is whether the decision in issue has adversely
(section 1) or has materially and adversely (section 4(1))
affected (or has the capacity so to affect (
Greys Marine
[242]
))
that right, whatever its nature. It is unsurprising that Quinot
and Maree say that—
“
the
impact element of the definition of administrative action should not
be narrowly interpreted to refer only to private-law or
common-law
rights or to fundamental rights in the Bill of Rights, but also
includes so-called ‘public-law rights’,
which emerge from
broad constitutional and statutory obligations placed on organs of
state.”
[243]
[281]
According
to them, the envisaged right is so expansive as to include what are
“obviously much broader than a traditional understanding
of
legal rights”.
[244]
By this they are referring to what they call “public-law
rights”.
[245]
Generally when – outside of the Bill of Rights –
the Constitution imposes obligations, it simultaneously
creates
a corresponding entitlement in respect of each such obligation.
Those are the public law rights the authors are referring
to.
De Ville says “[t]here is no natural limit to what can be
understood as falling within the concept of ‘rights’”.
[246]
Likewise, I understand Hoexter and Penfold – who quote,
amongst others, De Ville – not to place any
restriction on
the nature of the right that may be asserted for purposes of a PAJA
review.
[247]
Again, let me emphasise that I am here not concerned with the
question of “interest” or “legitimate
expectations”.
My focus is on rights. That is what
is at issue.
[282]
To summarise, and leaving out some of the pleaded bases of the
intended PAJA review, the residents say that the decision that
substantially
reduced the electricity supply was taken without giving
them notice. More specifically and in answer to the
first judgment’s
suggestion of the holding of a meeting
that involved some of the residents, let me point out that the
Ngwathe residents aver that
a meeting was held between, amongst
others, themselves and Eskom
after
the reduction decision had
been taken. That does not assist Eskom. According to the
Lekwa residents, no meeting was
held.
[283]
I am
satisfied that the residents put up enough for purposes of showing a
decision that has had an adverse impact on their rights.
I do
not understand the difficulty the first judgment has with that,
especially since it accepts that the residents have pleaded
an
infringement of the right to life, the right to human dignity, the
right of access to water, the right to basic education and
the right
to an environment that is not harmful to health or well-being.
[248]
[284]
Let us strip all this to its bare essentials. A decision
substantially reducing the supply of electricity was taken.
That decision resulted in a “human catastrophe”
characterised by gross violations of the residents’ fundamental
rights. The residents were not given notice before the decision
was taken. No fair process of whatever nature preceded
the
decision. On first principles, the residents have shown that
they have a viable case in the intended PAJA review; a case
founded
on section 6(2)(c) read with section 4(1) of PAJA.
Why the first judgment does not see that escapes
me. This
is a far cry from the first judgment’s suggestion that my
judgment relies on nothing more than “
deplorable
social and economic effects” that leave a judicial lacuna
.
[285]
It
is so, as the first judgment points out, that
Bato Star
held that “
it
is desirable for litigants who seek to review administrative action
to identify clearly both the facts upon which they base their
cause
of action, and the legal basis of their cause of action
”.
[249]
What I summarise above cannot possibly leave any doubt in Eskom’s
collective mind as to the nature of the pleaded case.
I am
quite alive to the fact that more has been pleaded. But what I
have highlighted is enough to show the existence of a
viable PAJA
review. So, what shortcomings, if any, there may be about
whatever else has been pleaded by the residents cannot
detract from
this reality.
[286]
And as I said, it would be perverse to suggest that the
residents cannot rely on the same fundamental rights for purposes of
the
interim interdict. It is in respect of those same rights
that – at the time they sought the interim interdict –
the residents were suffering harm, which would be irreparable if the
interim interdict were not granted. There is absolutely
no
reason to restrict the residents to the one right that the
first judgment insists upon.
[287]
The first judgment engages in a lengthy discourse about
the content of the rights relied upon by the residents and whether
that entails a claim by the residents to a given quantity of
electricity. So as not to do an injustice to what the
first judgment
says, here it is:
“
None
of [the approaches by the High Court and me] commences with the
correct starting point: what is the content of the right
invoked,
and, in particular, does the content of the right include a right
enjoyed by the residents to be supplied with a given
quantity of
electricity by Eskom?
”
[250]
This
is an introduction to a much longer discourse on the content of the
rights, including the impact of the rights on the state’s
budget.
[288]
I am at a loss as to why I must start with the content of the
rights. I would understand the first judgment’s
point
if there was an issue about the nature of each of the rights
that I highlight. Does it not infringe one’s dignity to
cause them to drink water that is contaminated with faecal matter?
Of course, it does. Does the real threat of loss
of human life
at hospitals and old age nursing homes occasioned by the reduction of
electricity supply not constitute a threatened
infringement of the
right to life? It certainly does. If the flow of raw
faeces into the Vaal River is not violative
of the right to an
environment that is not harmful to health or well-being, I do not
know what is. Does the negative impact
on schooling caused by
the reduced supply of electricity not infringe the right to basic
education? Surely, it does.
The asserted rights have been
established.
[289]
Crucially,
the residents’ case is not a claim to a specific quantity of
electricity. Rather, read holistically, the
residents’
fight concerns the process by which the substantial reduction in
electricity supply, which has undeniably had
catastrophic effects,
came about. That is a far cry from the claim made by the
first judgment, which is that the residents
are claiming a
specific quantity of electricity. Thus, it does not assist the
first judgment to straitjacket my approach
into having to
“
demonstrate
that the content of the rights [my judgment] references includes the
right of the residents to a particular level of
supply of
electricity”.
[251]
I make no such point. And I do not have to. For the
reasons I have given, the following is enough to establish
a viable
case for a PAJA review. The residents enjoy
constitutionally
protected
rights. Those rights have been materially and adversely
affected by Eskom’s reduction decision. That
decision was
taken without following a fair procedure. The same fundamental
rights and their infringement satisfy some of
the requirements for
the interim interdict. It is for this reason that I earlier
said I do not need to rely on section 7(2)
of the Constitution,
but that I do so because of the first judgment’s
insistence that Eskom had no obligation whatsoever
towards the
residents.
So,
from what I have said, the lengthy discourse in the first judgment
about the content of rights at issue, the interpretation
of the
rights and the impact on the state’s budget does not arise from
what I hold.
[290]
In
OUTA
Moseneke DCJ had this to say about
the nature of the right that must be proved in an application for an
interim interdict:
“
[T]
he
prima facie
right a claimant must establish is not merely the right to approach a
court in order to review an administrative decision.
It
is a right to which, if not protected by an interdict, irreparable
harm would ensue
.
An interdict is meant to prevent future conduct and not decisions
already made. Quite apart from the right to review
and to set
aside impugned decisions, the applicants should have demonstrated a
prima facie
right that is threatened by an impending or imminent irreparable
harm.
”
[252]
(Emphasis
added.)
[291]
Irreparable harm would definitely ensue if the fundamental
rights pleaded by the residents were not protected by an interim
interdict.
If there is no interdict, there can be no question
that you cannot repair the continued indignity of denying people
their usual
supply of potable water and availing to them, instead,
water full of faecal matter. I need make no illustration about
the
other rights that have also been, and continue to be, violated.
It follows as a matter of course that the rights can only
be
protected through a reversal of the trigger event that resulted in
their infringement. That trigger event is the reduction
decision and the resultant actual reduction.
[292]
In
some cases the very question whether the right in issue does exist in
law may be contested. In
OUTA
this Court held that “[i]
f
the right asserted in a claim for an interim interdict is sourced
from the Constitution
it
would be redundant to enquire whether that right exists
”.
[253]
The rights invoked by the residents are sourced from
the Constitution. So, their existence cannot be contested.
[293]
The
threshold for an interim interdict in terms of a breached right or in
terms of a threat of breach is not showing the
certain
existence of the right. You need only show a right, though at
the level of interim relief it may be “open to some
doubt”.
[254]
In my view, the residents, who also demonstrate bases for seeking a
review, have done more than this test requires.
The
first judgment takes the view that the residents have not proved
the existence of a right to which the interim interdict
application
is pegged. It reasons that the provision of electricity is a
means
by
which
the
rights to dignity, life, housing, food, healthcare, water and social
security may be secured. It then says that “[a]
particular means by which a right may be secured does not make that
means the subject matter of the right”.
[255]
Yet again, this misses the point. The point is about Eskom’s
conduct, which is the direct cause of the breach
of the residents’
rights.
[294]
The first judgment continues
immediately after what I have quoted in the preceding paragraph:
“
In
the case of the right to housing (section 26) or rights to
health care, food, water and social security (section 27),
it is
for the state to take reasonable measures within its available
resources to achieve the progressive realisation of these
rights.
The state must determine the means by which these rights are
progressively
realised
.
But the means to realise the rights do not define the contents of the
rights, not least because there may be entirely different,
but
equally permissible, means used to realise the same right.
These rights must be progressively realised. How that
is to be
done is for the state to determine, provided the measures taken are
reasonable. Thus, how the state may use the
supply of
electricity, through what agency and under what conditions to realise
the rights in sections 26 and 27 of the Constitution,
is for the state to determine.”
[256]
[295]
This
is a curious approach. Unlike socio-economic rights, the right
to dignity, the right to life, the right to an environment
that is
not harmful to health or well-being and the right to basic education
are not subject to progressive realisation in accordance
with
reasonable measures, which are taken within the state’s
available resources.
[257]
The residents aver that the infringements are as a result of Eskom’s
conduct. And there is a basis for review;
this, I dealt with
above.
[296]
I do not shy away from meeting the first judgment’s
point frontally. Insofar as socio economic rights are
concerned, the residents are asserting rights they were already
enjoying. By way of one example, the residents are saying
as a
result of Eskom’s conduct, water that is supposed to be potable
has faeces. Now they cannot drink water which – immediately
before Eskom’s conduct – they could drink. This has
nothing to do with the point about the progressive realisation
of
socio-economic rights made by the first judgment. This
reasoning applies equally to the adverse effect that Eskom’s
conduct has had on healthcare services.
A reasonable
apprehension of irreparable harm
[297]
Coming
to the second requirement,
[258]
is there a reasonable apprehension of irreparable and imminent harm
to the right if an interdict is not granted? In this
regard, we
must look at the impact Eskom’s conduct has had on the asserted
constitutional rights. As I have said, the
substantial
reduction of electricity supply has had the effect of violating
several of the residents’ rights guaranteed in
the Bill of
Rights. At the time the interim interdict was sought and
obtained, the violation was continuing. But for
the interim
interdict, the breach would have been ongoing and the harm suffered
would certainly be irreparable. In fact,
I believe that much of
the suffering the residents say they have been subjected to may not
be repaired merely by the restoration
of electricity. For
example, how do you repair the deeply offensive indignity suffered as
a result of being forced to choose
between drinking or using water
contaminated with faecal matter, on the one hand, and not drinking or
using that water at all,
on the other? Bear in mind that a
significant many in our country live in conditions of extreme
poverty. Bottled water
is not an option for them.
[298]
An interim interdict serves the purpose of halting the
continuation of the offending conduct which – for as long as it
continues
– exacerbates the rights violations. But, and I
emphasise for those who might fixate on the bogeyman and think that
my approach will cause Eskom to collapse, an interim interdict serves
this purpose pending the final determination of the review.
It
can never be that just because there is a fear of collapse Eskom must
be given a licence to ride roughshod over the rights of
individuals.
If a review of its decisions to reduce or terminate electricity
supply is warranted, courts must not shy away
from exercising their
review power.
Balance of convenience
[299]
On this subject, I must consider what this Court held in
OUTA
,
which is that—
“
[t]he
balance of convenience enquiry must now carefully probe whether and
to what extent the restraining order will probably intrude
into the
exclusive terrain of another branch of Government. The enquiry
must, alongside other relevant harm, have proper
regard to what may
be called separation of powers harm. A court must keep in mind
that a temporary restraint against the
exercise of statutory power
well ahead of the final adjudication of a claimant’s case may
be granted only in the clearest
of cases and after a careful
consideration of separation of powers harm.”
[259]
[300]
The
Court added that “one important consideration would be whether
the harm apprehended by the claimant amounts to a breach
of one or
more fundamental rights warranted by the Bill of Rights”.
[260]
And it noted that
OUTA
was not such a case.
[301]
The
Court emphasised the fact that it was required to intrude into a
policy laden and polycentric decision of the Executive.
[261]
The decision was “about the ordering of public resources, over
which the Executive Government disposes and for which
it, and it
alone, has the public responsibility”.
[262]
And “the duty of determining how public resources are to be
drawn upon and re-ordered lies in the heartland of
Executive Government
and domain”.
[263]
All this is what informed the Court’s point on separation of
powers harm.
[264]
[302]
On
my reading of
OUTA
,
the fact that the harm grounding the interim interdict sought amounts
to a breach of one or more fundamental rights protected
by the
Bill of Rights tempers the impact of what may otherwise be
too stringent a test. As Hoexter and Penfold
observe, the
overemphasis of “clearest cases” may have the effect of:
(a) being overly favourable to the public
authority; and (b) not
paying sufficient regard to the significantly important factor of
protecting fundamental rights.
[265]
Raboshakga says “[t]he test adopted by the
OUTA
Court provides the space for a consideration of competing interests,
in particular, the rights interpretation and enforcement”.
[266]
Indeed,
OUTA
does recognise – as an
important
consideration
– the question “whether the harm apprehended by the
claimant amounts to a breach of one or more fundamental rights
warranted by the Bill of Rights”.
[267]
[303]
OUTA
must be read in the context of the fact that what was at issue there
was a highly policy laden decision by a member of the Executive
arm
of government
and
violations of fundamental rights protected in the Bill of Rights were
not at issue. In the main, it is those two considerations
that
informed the Court’s final conclusion.
[268]
I believe that the role to be played by this factor must depend on
the nature of the Executive decision. Ordinarily,
this factor
must apply on a sliding scale. The more policy laden or
polycentric the decision, the more the role this factor
must play in
influencing the court’s determination. The lesser the
policy-ladenness or polycentricity, the lesser the
influence of this
factor. But courts must never lose sight of the fact that this
remains a balancing exercise. Affected
fundamental rights must
always play a critical role in that balance. And in some cases
the affected rights may be of such
a nature and their breach so
grievous that they may influence the decision in favour of the victim
of the rights violation even
in the face of a highly policy laden and
polycentric executive decision.
[269]
The ultimate question is: what is the outcome dictated by the
balancing exercise?
[304]
An example of this Court’s decision involving an interim
interdict where rights violations took centre stage in the face of
a
policy laden decision of a municipality is
South African
Informal Traders
. There Moseneke DCJ held:
“
[T]he
eviction of traders involved constitutional issues of considerable
significance. The ability of people to earn money
and support
themselves and their families is an important component of the right
to human dignity. Without it they faced
‘humiliation and
degradation’. Most traders, we were told, have
dependants. Many of these dependants are
children, who also
have suffered hardship as the City denied their breadwinners’
lawful entitlement to conduct their businesses.
The City has
not disputed this. The City’s conduct has a direct and
ongoing bearing on the rights of children, including
their direct
rights to basic nutrition, shelter and basic health care
services.”
[270]
[305]
In the present case the harm suffered, which was continuing at
the time the interim interdict was sought and obtained, does amount
to a breach of several fundamental rights protected by the Bill of
Rights. The rights violations at issue are most atrocious
and
must count for quite a lot in the balancing exercise. As I said
earlier, very few rights violations surpass what the
residents have
been subjected to. On balance and without any hesitation, I
conclude that the balance of convenience certainly
favours the
residents. Who would want to be subjected to this “human
catastrophe” (e.g. to drink and use water
contaminated with
faecal matter and generally not cleaned properly even absent the
faeces-related problem) whilst a review is winding
its way through
our court system? In addition, it is not as though in the
interim Eskom cannot provide the additional electricity.
It
can. It has done so well over the NMD for years; and what it
has been doing is to levy penalties on the municipalities
for
electricity provided in excess of the NMD. Has anything changed
which now makes it impossible for Eskom to continue doing
so?
[306]
The Ngwathe residents refer to and quote from correspondence
in which Eskom – in so many words – indicated to at
least one of the municipalities its preparedness not to lower supply
to levels that are within the NMD
if the municipality paid its
outstanding debt by a stipulated deadline
. Therefore, all
this appears to be a well calculated debt collection strategy.
Surely, this must be a relevant
factor to the balance of convenience
element. It tends to show that the skies will not fall if
–
purely in the interim
– Eskom continues to
provide electricity at above NMD levels. I would sooner have
the residents of the municipalities
–
purely on an interim
basis
– living lives that are as near as possible to
wholesome, than subject them to the current “human
catastrophe”.
[307]
I am not unmindful of Eskom’s version that being
required to supply electricity above NMD levels will put the
dilapidated
infrastructure of the municipalities and the national
grid under additional strain. But what Eskom says in this
regard rings
hollow in the face of its attempt to extract payment on
pain of effecting a reduction in the electricity supply. Put
differently,
indications are that – had payment been
forthcoming – Eskom would have supplied electricity
above NMD levels
notwithstanding the concerns it now puts forth.
Other satisfactory
remedy
[308]
I dealt with this extensively above. The High Court’s
acceptance of the fact that this requirement has been met
must stand.
[309]
In conclusion, leave to appeal must be granted, but the appeal
must fail.
Order
[310]
The following order is made:
1.
Leave to appeal is granted.
2.
The appeal is dismissed with costs, such costs to include the costs
of two counsel.
For
the Applicant:
S
Shangisa SC and L Rakgwale
instructed by Maponya
Incorporated
For
the First Respondents:
H
van Eeden SC and DH Wijnbeek
instructed by Lou Van Wyk
Incorporated and Andreas Peens Attorneys
[1]
Eskom
Holdings SOC Ltd v Lekwa Ratepayers Association
[2022]
ZASCA 10
;
2022 (4) SA 78
(SCA) (Supreme Court of Appeal
judgment).
[2]
Vaal
River Development Association (Pty) Ltd v Eskom Holdings SOC Ltd;
Lekwa Rate Payers Association NPC v Eskom Holdings SOC
Ltd
2020 JOL 48273
(GP) (High Court judgment) at para 51.4.2.
[3]
Section 152 states:
“
(1)
The objects of local government are—
(a)
to
provide democratic and accountable government for local
communities
; (b) to
ensure the
provision of services to communities in a sustainable manner
;
(c)
to promote social and economic development;
(d)
to
promote a safe and healthy environment
; and
(e)
to encourage the involvement of communities and community
organisations
in the matters of local government.
(2)
A municipality must strive, within its financial and
administrative capacity, to achieve the objects set out in
subsection (1)
.” (Emphasis added.)
[4]
In terms of section 153(a), “[a] municipality must structure
and manage its administration and budgeting and planning processes
to give priority to the basic needs of the community, and to promote
the social and economic development of the community”.
[5]
4 of 2006.
[6]
42 of 1922.
[7]
See rule 2 of the NERSA Rules.
[8]
High Court judgment above n 2 at para 2.
[9]
Id at para 28.
[10]
Id at para 29.
[11]
Id at para 49.
[12]
Id at para 28.
[13]
Id at para 30.
[14]
Id at para 32.
[15]
Id at para 35.
[16]
Government
of the Republic of South Africa v Grootboom
[2000]
ZACC 19
;
2001 (1) SA 46
(CC); 2000 (11) BCLR 1169 (CC).
[17]
High Court judgment above n 2 at para 37, citing id at para 34.
[18]
High Court judgment above n 2 at para 39.
[19]
Id at para 38.
[20]
Id at para 40.
[21]
Id.
[22]
Id at para 41.
[23]
Id at para 42.
[24]
Id at para 45.
[25]
Id at para 47.
[26]
Para 51 of the High Court judgment above n 2 states the following:
“
In
the circumstances it is ordered:
In
Case number 31813/20
51.1
The First Respondent, Eskom, is to increase, alternatively restore
the maximum electricity load supply
to Parys and Vredefort to the
level supplied prior to Eskom’s recent implementation of the
current limited 95% of 21 MVA
to Parys and 4.3 MVA to Vredefort;
thus interdicting and prohibiting Eskom from implementing its
decision to limit electricity
supply to Ngwathe per Parys and
Vredefort to the Notified Maximum Demand (“NMD”) of 95%
of 21 MVA in Parys and 4.3
MVA in Vredefort pending an agreement
acceptable to Eskom on the settlement of arrears owed by the
Second Respondent (“the
decision”);
51.2
The First and Second Respondents jointly and severally are ordered
to, within [five] days of the order,
alternatively a time period set
by the Court, restore the bulk electricity supply equipment to
enable both transformers at Parys
to be available and to render
sufficient capacity at Parys, alternatively to install
infrastructure to permit and allow electricity
supply to Parys to
the levels experienced prior to recent limitation associated with
the NMD of 21 MVA for Parys following upon
implementation of the
decision;
51.3
The First Respondent is directed to provide and assist the Second
Respondent to enable ringfeed of supply
to Parys, to serve as
back-up and to serve as a source in cases of emergency ensuring that
adequate alternative capacity is available
at the aforesaid towns.
51.4
The order in paragraphs 51.1 to 51.3 above will operate as an
interim interdict pending:
51.4.1
the finalization of this application; and
51.4.2
the final adjudication of the Applicant’s application for a
review of the
First Respondent’s decision(s), in terms of
the Promotion of Administrative Justice Act No 3 of 2000 (“PAJA”)
and/or legality review to set aside the First Respondent’s
decision(s) to implement the limit to the bulk electricity
supply to
the Second Respondent per Parys and Vredefort;
51.4.3
the relief in paragraphs 51.1 to 51.3 above will lapse if the
Applicant fails
to institute the aforesaid review application on or
before 30 October 2020.
51.5
The First and Second Respondents, jointly and severally, the one
paying the other to be absolved, are ordered
to pay the costs of
this application which include the reserved costs of 6 August 2020
on the scale as between attorney and client,
such costs to also
include the costs consequent upon the employment of two counsel.”
[27]
Para 52 of the High Court judgment above n 2 states the following:
“
In
Case number 35054/20
52.1
The First Respondent, Eskom, is to increase, alternatively restore
the maximum electricity load supply
to Lekwa Local Municipality
(“Lekwa”) per the towns of Standerton, Sakhile,
Meyerville and surrounds to the level
supplied prior to Eskom’s
implementation of the current limited 55 MVA, being at least 67 MVA;
thus interdicting and prohibiting
Eskom from continuing with
implementation of its decision to limit electricity supply to Lekwa
to the Notified Maximum Demand
(“NMD”) of 55 MVA (“the
decision”);
52.2
Interdicting the Second Respondent from implementing rotational load
shedding permitted on a limitation
linked to NMD of 55 MVA to
Standerton, Sakhile, Meyerville and surrounds;
52.3
The order in paragraphs 52.1 to 52.2 above will operate as an
interim interdict pending:
52.3.1
the finalization of this application; and
52.3.2
the final adjudication of the Applicant’s application for a
review
of the First Respondent’s decision(s), in terms of
the Promotion of Administrative Justice Act No 3 of 2000 (“PAJA”)
and/or legality review to set aside the First Respondent’s
decision(s) to implement the limit to the bulk electricity
supply to
the Second Respondent to the level of the NMD set or agreed to as
55 MVA.
52.3.3
the relief in paragraphs 52.1 to 52.2 above will lapse if the
Applicant
fails to institute the aforesaid review application on or
before 30 October 2020.
52.4
The First and Second Respondents, jointly and severally, the one
paying the other to be absolved, are ordered to pay the
costs of
this application which include the reserved costs of 21 August 2020
on the scale as between attorney and client,
such costs to also
include the costs consequent upon the employment of two counsel.”
[28]
3 of 2000.
[29]
High Court judgment above n 2 at para 47.
[30]
Id at para 49.
[31]
Supreme Court of Appeal judgment above n 1 at para 21.
[32]
Id at para 6.
[33]
Resilient
Properties (Pty) Ltd v Eskom Holdings SOC Ltd
2019
(2) SA 577
(GJ).
[34]
Id at para 74.
[35]
Id at paras 77-80.
[36]
Eskom
Holdings SOC Ltd v Resilient Properties (Pty) Ltd;
[2020]
ZASCA 185; 2021 (3) SA 47 (SCA).
[37]
Id at paras 29-34.
[38]
13 of 2005.
[39]
See section 41 of IRFA which states the following:
“
(1)
All organs of state must make every reasonable effort—
(a)
to avoid intergovernmental disputes
when exercising their statutory
powers or performing their statutory functions; and
(b)
to settle intergovernmental disputes without resorting to judicial
proceedings.
(2)
Any formal agreement between two or more organs of state in
different
governments regulating the exercise of statutory powers or
performance of statutory functions, including any implementation
protocol
or agency agreement, must include dispute settlement
mechanisms or procedures that are appropriate to the nature of the
agreement and the matters that are likely to become the subject of a
dispute.”
[40]
Supreme Court of Appeal judgment above n 1 at para 24.
[41]
Id at para 32.
[42]
Mazibuko
v City of Johannesburg
[2009]
ZACC 28
;
2010 (4) SA 1
(CC);
2010 (3) BCLR 239
(CC) at paras 48 9.
[43]
Minister
of Health v Treatment Action Campaign (No 2)
[2002] ZACC 15
;
2002 (5) SA 721
(CC); 2002 (10) BCLR 1033 (CC)
at paras 49-50.
[44]
Eskom
Holdings SOC Ltd v Sidoyi
[2019] ZASCA 65
; 2019 JDR 0963 (SCA).
[45]
New
National Party of South Africa v Government of the Republic of South
Africa
[1999]
ZACC 5
;
1999 (3) SA 191
(CC);
1999 (5) BCLR 489
(CC) at paras 22-3.
[46]
Section 30, headed “Resolution of disputes by Regulator”,
states the following:
“
(1)
The Regulator must, in relation to any dispute arising out of this
Act—
(a)
if it is a dispute between licensees, act as mediator if so
requested
by both parties to the dispute;
(b)
if it is a dispute between a customer or end user on the one hand
and a licensee, registered person, a person who trades, generates,
transmits, or distributes electricity on the other hand, settle
that
dispute by such means and on such terms as the Regulator thinks fit.
(2)
The Regulator may appoint a suitable person to act as mediator on
its behalf and any action or decision of a person so appointed is
deemed to be an action by or decision of the Regulator.
(3)
The Minister must prescribe the procedure to be followed in the
mediation and the fees to be paid.
(4)
The mediation or arbitration in terms of this section is done at
the
request of the parties to the dispute and no decision of the
Regulator or the person contemplated in subsection (2), taken
in the
course of the mediation process, must be regarded as a decision
contemplated in section 10(3) or (4) of the National
Energy
Regulator Act.” (Emphasis added.)
[47]
Section 7(2)(a) states that “[s]ubject to paragraph (c), no
court or tribunal shall review an administrative action
in
terms of this Act unless any internal remedy provided for in any
other law has first been exhausted”.
[48]
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Tourism
[2004]
ZACC 15; 2004 (4) SA 490 (CC); 2004 (7) BCLR 687 (CC).
[49]
Id at para 48.
[50]
Koyabe
v Minister for Home Affairs
[2009]
ZACC 23; 2010 (4) SA 327 (CC); 2009 (12) BCLR 1192 (CC).
[51]
Joseph
v City of Johannesburg
[2009]
ZACC 30; 2010 (4) SA 55 (CC); 2010 (3) BCLR 212 (CC).
[52]
Id at para 53.
[53]
Section 41 of the Constitution sets out the principles of
co-operative government and intergovernmental relations.
[54]
National
Treasury v Opposition to Urban Tolling Alliance
[2012]
ZACC 18
;
2012 (6) SA 223
(CC);
2012
(11) BCLR 1148
(CC)
at
paras 22-30.
[55]
Tshwane
City v Afriforum
[2016]
ZACC 19
;
2016 (6) SA 279
(CC);
2016 (9) BCLR 1133
(CC) at paras
40-3.
[56]
Sabie
Chamber of Commerce and Tourism v Thaba Chweu Local Municipality;
Resilient Properties Proprietary Limited v Eskom Holdings
SOC Ltd
[2019]
ZAGPPHC 112.
[57]
Setlogelo
v Setlogelo
1914
AD 221
at 227.
[58]
Webster
v Mitchell
1948
(1) SA 1186
(W) at 1189.
[59]
Gool
v Minister of Justice
1955
(2) SA 682
(C) at 688E-F.
[60]
Ferreira
v Levin
1995
(2) SA 813
(W) at 830-34.
[61]
Eriksen
Motors (Welkom) Ltd v Protea Motors, Warrenton
1973
(3) SA 686
(A) at 691C-G.
[62]
Economic
Freedom Fighters v Gordhan
[2020]
ZACC 10; 2020 (6) SA 325 (CC); 2020 (8) BCLR 916 (CC).
[63]
Id at para 42.
[64]
Hix
Networking Technologies CC v System Publishers (Pty) Ltd
[1996] ZASCA 107
;
1997
(1) SA 391
(SCA) at 403.
[65]
National
Gambling Board v Premier, KwaZulu-Natal
[2001]
ZACC 8
;
2002 (2) SA 715
(CC);
2002 (2) BCLR 156
(CC) at para 49.
[66]
Airoadexpress
(Pty) Ltd v Chairman, Local Road Transportation Board, Durban
[1986]
ZASCA 6; 1986 (2) SA 663 (A).
[67]
National
Gambling Board
above
n 65
at
para 52.
[68]
13
of 2001.
[69]
71 of 2008.
[70]
Section 6(5)(b) of the Conversion Act
.
[71]
Section
7(1) of ERA.
[72]
Section
10 of ERA.
[73]
S
ections
13 and 14 of ERA.
[74]
Id.
[75]
Section
16 of ERA.
[76]
Section
18 of ERA.
[77]
Section
30 of ERA.
[78]
40
of 2004.
[79]
Section
10 of the National Energy Regulator Act.
[80]
Section 14 of the ERA regulates the conditions of a licence.
[81]
Section 14(1)(e) of ERA describes the MYPDM as “the
methodology to be used in the determination of rates and tariffs
which must be imposed by licensees”.
[82]
Id.
[83]
Joseph
above
n 51
at
paras 34–40.
[84]
117
of 1998.
[85]
Section
84(1)(c) of the Structures Act.
[86]
56
of 2003.
[87]
Section 54(1)(d)(ii) of the
Municipal
Finance Act
.
[88]
Section 41(1) of the
Municipal
Finance Act
.
[89]
Section 42 of the
Municipal
Finance Act
.
[90]
1
of 1999.
[91]
In terms of section 239, an “organ of state” means—
“
(a)
any department of state or administration in the national,
provincial or local
sphere of government; or
(b)
any other functionary or institution—
(i)
exercising a power or
performing a function in terms of the
Constitution or a provincial constitution; or
(ii)
exercising a public power or performing
a public function in terms
of any legislation,
but
does not include a court or a judicial officer.”
[92]
Rademan
v Moqhaka Local Municipality
[2013]
ZACC 11; 2013 (4) SA 225 (CC); 2013 (7) BCLR 791 (CC).
[93]
Id at para 39.
[94]
32 of 2000.
[95]
Grey’s
Marine Hout Bay (Pty) Ltd v Minister of Public Works
[2005]
ZASCA 43
;
2005 (6) SA 313
(SCA);
2005
(10) BCLR 931
(SCA
)
at para 23.
[96]
See
[261] of the second judgment.
[97]
Bato
Star
above
n 48
at
para 27.
[98]
Cape
Gate (Pty) Ltd v Eskom Holdings (SOC) Ltd
2019
(4) SA 14
(GJ) at paras 129-130.
[99]
Id
at para 135.
[100]
Resilient
SCA
above
n 36
at
para 80.
[101]
Allpay
Consolidated Investment Holdings (Pty) Ltd v Chief Executive
Officer, South African Social Security Agency
[2014]
ZACC 12; 2014 (4) SA 179 (CC); 2014 (6) BCLR 641 (CC).
[102]
Resilient
SCA
above
n 36
at
para 80, citing id at para 49.
[103]
Section
41(3) states the following:
“
An
organ of state involved in an intergovernmental dispute must make
every reasonable effort to settle the dispute by means of
mechanisms
and procedures provided for that purpose, and must exhaust all other
remedies before it approaches a court to resolve
the dispute.”
[104]
Resilient
SCA
above
n 36
at
paras 61, 64 and 79.
[105]
See [274] of the second judgment.
[106]
Joseph
above n 51 at paras 34 and 37.
[107]
Grootboom
above
n 16
at
para 46.
[108]
See
[195] and [200] of the second judgment.
[109]
See
[289] of the second judgment.
[110]
This
analysis of rights follows the scheme of Hohfeld expounded in
Hohfeld “Some Fundamental Legal Conceptions as Applied
in
Judicial Reasoning” (1913) 23
Yale
Law Journal
16.
[111]
Grey’s
Marine
above
n 95.
[112]
De
Ville
Judicial
Review of Administrative Action in South Africa
rev ed (LexisNexis Butterworths, Durban (2005) at 53 referred to the
second judgment.
[113]
Khosa
v Minister of Social Development; Mahlaule v Minister of Social
Development
[2004]
ZACC 11
;
2004 (6) SA 505
(CC);
2004 (6) BCLR 569
(CC) at para 44.
[114]
Soobramoney
v Minister of Health, KwaZulu-Natal
[1997]
ZACC 17
;
1998 (1) SA 765
(CC);
1997
(12) BCLR 1696 (CC).
[115]
Id
at para 31.
[116]
See
[274] of the second judgment.
[117]
Joseph
above n 51 at para 27.
[118]
Mazibuko
above
n 42.
[119]
Ferreira
above
n 60
at
836.
[120]
See [216] of the second judgment.
[121]
See [276] of the second judgment.
[122]
See
Robinson
v Randfontein Estates GM Co Ltd
1925
AD 173
at 198 where the Court held the following:
“
The
object of pleadings is to define the issues; and parties will
be kept strictly to their pleas where any departure would
cause
prejudice or would prevent full enquiry. But within those
limits the Court has a wide discretion. For pleadings
are made
for the Court, not the Court for pleadings. And where a party
has had every facility to place all the facts before
the trial court
and the investigation into all the circumstances has been as
thorough and as patient as in this instance,
there is no
justification for interference by an appellate tribunal, merely
because the pleadings of the opponent has not been
as explicit as it
might have been.”
[123]
Gool
above n 59.
[124]
See
[109] of the second judgment.
[125]
S
ection
39(1)(a) of IRFA.
[126]
In
terms of section 30(1)(b)—
“
[t]he
Regulator must, in relation to any dispute arising out of this Act .
. . if it is a dispute between a customer or end user
on the one
hand and a licensee, registered person, a person who trades,
generates, transmits, or distributes electricity on the
other hand,
settle that dispute by such means and on such terms as the Regulator
thinks fit.”
[127]
Section 155(7) states the following:
“
The
national government, subject to section 44, and the provincial
governments have the legislative and executive authority to
see to
the effective performance by municipalities of their functions in
respect of matters listed in Schedules 4 and 5, by regulating
the
exercise by municipalities of their executive authority referred to
in section 156(1).”
[128]
My approach does not derogate from
Joseph
above
n 51 at paras 34 40, which determined that municipalities
bear an obligation to provide basic services, including
the supply
of electricity.
[129]
In terms of the order made by the High Court when granting the
interim interdict, the review application had to be launched
not
later than 30 October 2020. Purely for convenience, I refer to
the intended or proposed review.
[130]
I say more about this section later.
[131]
Glenister
v President of the Republic of South Africa
[2011]
ZACC 6
;
2011 (3) SA 347
(CC); 2011 (7) BCLR 651 (CC).
[132]
Id
at
para 194.
[133]
I explain the source of the need to give notice later.
[134]
Governing
Body of the Juma Musjid Primary School v Essay N.O. (Centre for
Child Law and Another as Amici Curiae)
[2011] ZACC 13; 2011 (8) BCLR 761 (CC).
[135]
Section 1 of PAJA defines “administrative action”, which
is the basis of a PAJA review, as—
“
any
decision taken, or any failure to take a decision, by—
(a)
an organ of state, when—
(i)
exercising a power in terms of the Constitution or a provincial
constitution; or
(ii)
exercising a public power or performing a public function in terms
of any legislation; or
(b)
a natural or juristic person, other than an organ of state, when
exercising a public power or performing a public function in terms
of an empowering provision,
which
adversely affects the rights of any person and which has a direct,
external legal effect”
[136]
Quinot and Maree “Administrative Action” in Quinot
et
al
Administrative
Justice in South Africa: An Introduction
2 ed (Oxford University Press, Cape Town 2020) at 93.
[137]
Id (emphasis added).
[138]
Grey’s
Marine
above
n 95
.
[139]
Id at
para 23.
[140]
See
Allpay
above
n 101 at para 60; and
Viking
Pony Africa Pumps (Pty) Ltd t/a Tricom Africa v Hidro Tech
Systems (Pty) Ltd
[2010] ZACC 21
;
2011 (1) SA 327
(CC);
2011 (2) BCLR 207
(CC) at
para 37.
[141]
The first and second requirements are: (a) a
prima facie
right even if it is open to some doubt; and (b) a reasonable
apprehension of irreparable and imminent harm to the right if an
interdict is not granted.
[142]
First judgment at [123] (emphasis in original).
[143]
MEC for
Health, Eastern Cape v Kirland Investments (Pty) Ltd t/a Eye &
Lazer Institute
[2014] ZACC 6
;
2014 (3) SA 481
(CC);
2014 (5) BCLR 547
(CC) at
para 82 (emphasis added).
[144]
John v
Rees; Martin v Davis; Rees v John
[1970] Ch 345
at 402D.
[145]
Examples of South African cases that have relied on this quote are
S
v
Van der
Walt
[2020] ZACC 19
;
2020 (2) SACR 371
(CC);
2020 (11) BCLR 1337
(CC) at
para 28;
My
Vote Counts NPC v Speaker of the National Assembly
[2015] ZACC 31
(CC);
2016 (1) SA 132
(CC);
2015 (12) BCLR 1407
(CC)
(
My
Vote Counts I
)
at para 176; and
Administrator,
Transvaal v Zenzile
[1990] ZASCA 108
;
1991 (1) SA 21
(A) at 37E-F.
[146]
Hoexter and Penfold
Administrative
Law in South Africa
3 ed (Juta & Co Ltd, Cape Town 2021) at 502.
[147]
On that debate, see for example Brynard “Procedural Fairness
to the Public as an Instrument to Enhance Public Participation
in
Public Administration” (2011) 19
Administratio
Publica
100.
[148]
Emphasis added.
[149]
Section 4(1), which is titled “[a]dministrative action
affecting public” provides:
“
In
cases where an administrative action materially and adversely
affects the rights of the public, an administrator, in order
to give
effect to the right to procedurally fair administrative action, must
decide whether—
(a)
to hold a public inquiry in
terms of subsection (2)
(b)
to follow a notice and comment procedure
in terms of subsection (3);
(c)
to follow the procedures in
both subsections (2) and (3);
(d)
where the administrator is empowered
by any empowering provision to
follow a procedure which is fair but different, to follow that
procedure; or
(e)
to follow another appropriate
procedure which gives effect to
section 3.”
Subsections
(2) and (3) provide for the process to be followed: if a public
enquiry is to be conducted; and if a notice and comment
procedure is
to be followed. Subsection (4) provides for a departure from
the process provided for in subsections (1) to
(3) if it is
reasonable and justifiable to do so.
[150]
First judgment at [122].
[151]
Id.
[152]
Definition of “administrative action” in section 1
of PAJA.
[153]
Section 4(1) of PAJA.
[154]
Emphasis added.
[155]
First judgment at [131]
.
[156]
Hoexter and Penfold above n 146 at 747. For this, the
authors rely on
Agri
South Africa v Minister of Minerals and Energy; Van Rooyen v
Minister of Minerals and Energy
2010 (1) SA 104
(GNP) at paras 20 2; and
Van
der Westhuizen v Butler
2009 (6) SA 174
(C) at 188B C.
[157]
In
OUTA
above n 54 at para 45 this Court held:
“
[T]he
test [for the grant of interim relief] must be applied cognisant of
the normative scheme and democratic principles that
underpin our
Constitution. This means that when a court considers whether
to grant an interim interdict it must do so in
a way that promotes
the objects, spirit and purport of the Constitution.
”
[158]
Earthlife
Africa (Cape Town) v Director General: Department of
Environmental Affairs and Tourism
[2005] ZAWCHC 7
;
2005 (3) SA 156
(C) at para 67.
[159]
Gavric
v Refugee Status Determination Officer
[2018]
ZACC 38; 2019 (1) SA 21 (CC); 2019 (1) BCLR 1 (CC).
[160]
Koyabe
above
n 50 at para 36.
[161]
Bato
Star
above
n 48 at para 17.
[162]
I do not necessarily discount the possibility of some remedies being
sourced from adjectival law.
[163]
First judgment at [147] to [154].
[164]
Id at [149].
[165]
Id.
[166]
First judgment at [150].
[167]
My Vote
Counts I
above
n 145 at para 46.
[168]
Id at para 50. See the original statement of the
principle in
S
v Mhlungu
[1995]
ZACC 4
;
1995
(3) SA 867
(CC)
[1995] ZACC 4
; ;
1995
(7) BCLR 793
(CC)
at para 59. See also
Zantsi
v Council of State, Ciskei
[1995]
ZACC 9
;
1995
(4) SA 615
(CC);
1995
(10) BCLR 1424
(CC) at para 3 where the
Mhlungu
principle was approved.
[169]
My Vote
Counts I
above n 145 at para 50.
[170]
Id at para 51.
[171]
Id
at para 52.
[172]
Klare
“Legal Subsidiarity and Constitutional Rights: A Response to
AJ van der Walt” (2008) 1
Constitutional
Court Review
(2008)
129 at 140.
[173]
My Vote
Counts I
above n 145 at para 53.
[174]
Id at paras 121 2, in particular.
[175]
South
African Human Rights Commission obo South African Jewish Board of
Deputies v Masuku
[2022] ZACC 5;
2022 (4) SA 1
(CC);
2022 (7) BCLR 850
(CC)
at para 102.
[176]
I have been assisted in this exercise by a collection of a number of
these judgments in the
My
Vote Counts I
minority judgment.
[177]
Minister
of Health v New Clicks South Africa (Pty) Ltd (Treatment Action
Campaign and Another as Amici Curiae)
[2005] ZACC 14
;
2006 (2) SA 311
(CC);
2006 (1) BCLR 1
(CC) at
paras 92 7 and 436 7.
[178]
South
African National Defence Union v Minister of Defence
[2007] ZACC 10
;
2007 (5) SA 400
(CC);
2007 (8) BCLR 863
(CC) at
paras 51 2.
[179]
MEC for
Education, KwaZulu-Natal v Pillay
[2007] ZACC 21
;
2008 (1) SA 474
(CC);
2008 (2) BCLR 99
(CC) at
paras 39 40.
[180]
Mazibuko
above
n 42 at para 73.
[181]
PFE
International v Industrial Development Corporation of South Africa
Ltd
[2012] ZACC 21
;
2013 (1) SA 1
(CC);
2013 (1) BCLR 55
(CC) at paras 4
and 32.
[182]
De
Lange v Methodist Church
[2015]
ZACC 35
;
2016 (2) SA 1
(CC);
2016 (1) BCLR 1
(CC) at para 53,
citing with approval
My
Vote Counts I
above n 145 at paras 122, 160 and 180.
[183]
Thubakgale
v Ekurhuleni Metropolitan Municipality
[2021]
ZACC 45
;
2022 (8) BCLR 985
(CC) at para 178.
[184]
Residents
of Industry House, 5 Davies Street, New Doornfontein, Johannesburg v
Minister of Police
[2021] ZACC 37
;
2022 (1) BCLR 46
(CC) at para 112.
[185]
Bato
Star
above n 48 at paras 21 6.
[186]
My Vote
Counts I
above n 145 at fn 100.
[187]
Bato Star
above n 48 at para 25.
[188]
Section 33(1) provides that “[e]veryone has the right to
administrative action that is lawful, reasonable and procedurally
fair”. And section 33(2) stipulates that
“[e]veryone whose rights have been adversely affected by
administrative
action has the right to be given written reasons”.
[189]
Sali v
National Commissioner of the SA Police Service
[2014]
ZACC 19
; (2014) 35 ILJ 2727 (CC);
2014 (9) BCLR 997
(CC) at para 4
and fn 2.
[190]
Women’s
Legal Centre Trust v President of the Republic of South Africa
[2022] ZACC 23
;
2022 (5) SA 323
(CC) at para 82.
[191]
25
of 1961.
[192]
70
of 1979.
[193]
Women’s
Legal Centre Trust
above
n 190 at para 82.
[194]
AD v DW
(Centre for Child Law as Amicus Curiae; Department for Social
Development as Intervening Party)
[2007] ZACC 27
;
2008 (3) SA 183
(CC);
2008 (4) BCLR 359
(CC).
I touch on
AD
to complete the picture. Otherwise, it is not relevant to the
issue at hand.
[195]
Id at para 49.
[196]
Id at para 37.
[197]
Id. Of course, there the Court emphasised the fact that in
inter-country adoptions the principle is a factor that is subject
to
the injunction contained in section 28(2) of the Constitution that
the best interests of the child are paramount.
[198]
First judgment at [149].
[199]
The long title of the ERA reads:
“
To
establish a national regulatory framework for the electricity supply
industry; to make the National Energy Regulator the custodian
and
enforcer of the national electricity regulatory framework; to
provide for licences and registration as the manner in which
generation, transmission, distribution, trading and the import and
export of electricity are regulated; to regulate the reticulation
of
electricity by municipalities; and to provide for matters connected
therewith.”
And
section 2 provides:
“
The
objects of this Act are to—
(a)
achieve the efficient, effective, sustainable and orderly
development
and operation of electricity supply infrastructure in
South Africa;
(b)
ensure that the interests and needs of present and future
electricity
customers and end users are safeguarded and met, having
regard to the governance, efficiency, effectiveness and long-term
sustainability
of the electricity supply industry within the broader
context of economic energy regulation in the Republic;
(c)
facilitate investment in the electricity supply industry;
(d)
facilitate universal access to electricity;
(e)
promote the use of diverse energy sources and energy efficiency;
(f)
promote competitiveness and customer and end user choice;
and
(g)
facilitate a fair balance between the interests of customers and
end
users, licensees, investors in the electricity supply industry and
the public.”
[200]
See, for example, Currie and De Waal
Bill
of Rights Handbook
6 ed (Juta & Co, Cape Town 2016) at 12 3; Du Plessis
“Interpretation” in Woolman et al (eds)
Constitutional
Law of South Africa
Service 6 (2008) at 152 3 and 158; Van der Walt
“Normative Pluralism and Anarchy: Reflections on the 2007
Term” (2008) 1
Constitutional
Court Review
77;
Klare “Legal Subsidiarity and Constitutional Rights: A Reply
to AJ van der Walt” (2008) 1
Constitutional
Court Review
129;
Du
Plessis “Subsidiarity: What’s in the Name for
constitutional interpretation and adjudication?” (2006) 17
Stellenbosch
Law Review 207
;
Murcott
and Van der Westhuizen “The Ebb and Flow of the Application of
the Principle of Subsidiarity – Critical
Reflections
on
Motau
and
My
Vote Counts
”
(2015) 1
Constitutional
Court Review
7;
Quinot et al above n 136 at 135, 333 and 399; and Hoexter
and Penfold above n 146 at 149 51.
[201]
Murcott and Van der Westhuizen above n 200 at 48 and 61 4.
[202]
Section 34 provides that “[e]veryone has the right to
have a dispute that can be resolved by the application of law
decided in a fair public hearing before a court or, where
appropriate, another independent and impartial tribunal or forum”.
[203]
Section 38 provides that “[a]nyone listed in this section
has the right to approach a competent court, alleging that
a right
in the Bill of Rights has been infringed or threated, and the court
may grant appropriate relief, including a declaration
of rights”.
The section then lists categories of persons who have standing in
various circumstances.
[204]
See
Bato Star
above n 48 at para 25.
[205]
See
Setlogelo
above
n 57.
[206]
Webster
v Mitchell
above
n 58.
[207]
Molteno
Bros
v
South African Railways
1936 AD 321.
[208]
Webster
v Mitchell
above n 58 at 1187.
[209]
He held at 1189:
“
The
use of the phrase ‘
prima facie
established though open to some doubt’ indicates I think that
more is required than merely to look at the allegations of
the
applicant, but something short of a weighing up of the probabilities
of conflicting versions is required. The proper
manner of
approach I consider is to take the facts as set out by the
applicant, together with any facts set up by the respondent
which
the applicant cannot dispute, and to consider whether, having regard
to the inherent probabilities, the applicant could
on those facts
obtain final relief at a trial. The facts set up in
contradiction by the respondent should then be considered.
If
serious doubt is thrown on the case of the applicant he could not
succeed in obtaining temporary relief, for his right,
prima facie
established, may only be open to ‘some doubt’. But
if there is mere contradiction, or unconvincing explanation,
the
matter should be left to trial and the right be protected in the
meanwhile.
”
Of
course, the Court held that whether there should be interim
protection of the right was subject to “the respective
prejudice in the grant or refusal of interim relief”.
[210]
An example of a case that said this question applies only to factual
questions is
Ivoral
Properties (Pty) Ltd v Sheriff, Cape Town
2005 (6) SA 96
(C) at para 37. And examples of those that
held that it is not confined to evidentiary matter are
V&A
Waterfront Properties (Pty) Ltd v Helicopter and Marine Service
(Pty) Ltd
[2004]
2 All SA 664
(C);
Beecham
Group Limited v BM Group (Pty) Limited
1976 BP 572 (T) at 579 81; and
Mariam
v Minister of the Interior
1959 (1) SA 213
(T) at 218.
[211]
Fourie
v Olivier
1971 (3) SA 274 (T).
[212]
Id at 285E G.
[213]
Tony
Rahme Marketing Agencies SA (Pty) Ltd v Greater Johannesburg
Transitional Metropolitan Council
1997
(4) SA 213
(W) at 215 6.
[214]
Geyser
v Nedbank Ltd: In re Nedbank Ltd v Geyser
2006 (5) SA 355
(W) at para 9.
[215]
Johannesburg
Municipal Pension Fund v City of Johannesburg
2005 (6) SA 273
(W) at para 9.
[216]
See
Albutt
v Centre for the Study of Violence and Reconciliation
[2010]
ZACC 4
;
2010 (3) SA 293
(CC);
2010 (5) BCLR 391
(CC) at para 82.
[217]
See
Webster
v Mitchell
above n 58 at 1187 92 as qualified by
Gool
above n 59 at 687H 688C. This formulation of the
requirements was accepted by this Court in
OUTA
above n 54 at para 41.
[218]
First judgment
at [132].
[219]
Id.
[220]
And
I use “some” advisedly because there are differences.
But the differences do not affect my approach.
[221]
See the first judgment’s analogy at [132].
[222]
First judgment at [61].
[223]
Id.
[224]
Allpay
Consolidated Investment Holdings (Pty) Ltd v Chief Executive
Officer, South African Social Security Agency
[2014] ZACC 12
;
2014 (4) SA 179
(CC);
2014 (6) BCLR 641
(CC) (
Allpay
II
) at
para 49.
[225]
Juma Musjid
above n 134. Briefly, here is what this case was about.
In 1957 a government-aided school was established on property
owned
by the Juma Musjid Trust. In 2002, the Trust informed the
Department of Education that it had taken a decision
to establish an
independent school on the property and that it would, in due course,
afford the Department notice to close the
existing school. In
2003, the Trust gave written notice terminating the Department’s
right of occupation with effect
from 31 December 2004. The
Department undertook to vacate the premises but did not do so.
Following further developments,
which included the school continuing
to operate on the property, the Trustees, in July 2008, launched a
High Court application
for the eviction of the school.
This Court recognised that there was “no primary positive
obligation on the Trust
to provide basic education to the learners”
much less was there an obligation “on the Trust to make its
property
available . . . for use as a public school”.
But this Court held that negative obligations flowing from
section 8(2)
enjoin private persons or entities – in that
case, the Trust – to “not interfere with or diminish the
enjoyment
of a right”. In
Juma Musjid
,
at paras 61 5, the Court assessed the reasonableness of
the Trust’s actions with reference to its willingness
to enter
into an agreement with the Department, the length of time –
including periods of grace – afforded to the
Department, and
copious communication sent to the Department and extensive
negotiations held. There was meaningful engagement.
That
is not true of this matter. Eskom acted as if no
constitutional rights would be impacted negatively by its decision
[226]
Id
at
para 58. Section 8(2) of the Constitution
provides:
“
A
provision of the Bill of Rights binds a natural or a juristic person
if, and to the extent that, it is applicable, taking into
account
the nature of the right and the nature of any duty imposed by the
right.”
[227]
Id
at para 58.
[228]
Id.
[229]
Joseph
above n 51.
[230]
Id at para 1.
[231]
Id at para 2.
[232]
Id.
[233]
Id at para 7.
[234]
Id at para 12.
[235]
Id at para 23.
[236]
Id at paras 24 5.
[237]
It
is so, of course, that
Allpay
II
above n 224 would serve to block that escape avenue. In
Allpay
II
Froneman J held at para 49:
“
Organs
of state have obligations that extend beyond the merely
contractual. In terms of section 8 of the Constitution,
the Bill of Rights binds all organs of state. Organs of state,
even if not state departments or part of the administration
of the
national, provincial or local spheres of government, must thus
‘respect, protect, promote and fulfil the rights
in the Bill
of Rights’.”
[238]
Joseph
above n 51 at para 27.
[239]
I
explain this a little bit more when I deal with the balance of
convenience.
[240]
Robinson
v Randfontein Estates GM Co Ltd
1925
AD 173
at 198. Maya JA expressed herself in similar terms
in
Spearhead
Property Holdings Ltd v E&D Motors (Pty) Ltd
[2009] ZASCA 70
;
2010 (2) SA 1
(SCA) at para 42 saying:
“
[S]ince
pleadings are made for the court and not the court for the
pleadings, it is the duty of the court to determine the real
issues
between the parties, and provided no possible prejudice can be
caused to either, to decide the case on those real issues.”
[241]
I repeat that for my purposes, I am not concerned with the debate
whether “right” includes something more than what
we
know to be a right. It is not necessary to engage in that
debate because here we are concerned with what are unquestionably
rights. The debate between the first and my judgments is about
what right or rights can properly be asserted for purposes
of the
interim interdict and intended PAJA review.
[242]
Grey’s Marine
above n 95 at para 23.
[243]
Quinot et al above n 136 at 93.
[244]
Id at para 95.
[245]
Id.
[246]
De Ville above n 112 at 53.
[247]
Hoexter and Penfold above n 146 at 309 20.
[248]
First judgment at [95] to [96].
[249]
Bato Star
above n 48 at para 27.
[250]
First judgment at [116].
[251]
First judgment at [128].
[252]
OUTA
above
n 54 at para 50.
[253]
Id at para 51.
[254]
See
Webster
v Mitchell
above n 58
at 1189
and
Gool
above n 59
at 688A.
The
requirements for an interim interdict are: a
prima facie
right even if it is open to some doubt; a reasonable apprehension of
irreparable and imminent harm to the right if an interdict
is not
granted; the balance of convenience must favour the grant of the
interdict; and the applicant must have no other satisfactory
remedy
available. Of course, in this Court overall, we use the
interests of justice standard. See
OUTA
above
n 54
at para 41.
[255]
First judgment at [112].
[256]
Id.
[257]
Subsections
(1) and (2) of section 27 of the Constitution provide:
“
(1)
Everyone has the right to have access to—
(a)
health care services, including reproductive health care;
(b)
sufficient food and water; and
(c)
social security, including, if they are unable to support themselves
and their dependants, appropriate social assistance.
(2)
The state must take reasonable legislative and other measures,
within its available resources, to achieve the progressive
realisation of each of these rights.”
[258]
I do not understand this requisite to be directly in issue. It
is indirectly in issue only because of the fact that the
first judgment does not focus on the rights asserted by the
residents and also because it takes the view that some of the
rights
were not pleaded by the residents.
[259]
OUTA
above n 54 at para 47. In
Economic
Freedom Fighters
above
n 62 at para 48, Khampepe J placing reliance on
OUTA
held:
“
We
were cautioned by this Court in
OUTA
that, where Legislative or Executive power will be transgressed and
thwarted by an interim interdict, an interim interdict should
only
be granted in the clearest of cases and after careful consideration
of the possible harm to the separation of powers principle.
Essentially, a court must carefully scrutinise whether granting an
interdict will disrupt Executive or Legislative functions,
thus
implicating the separation and distribution of power as envisaged by
law. In that instance, an interim interdict would
only be
granted in exceptional cases in which a strong case for that relief
has been made out.
”
[260]
OUTA
above n 54 at para 47.
[261]
Id paras 67 8.
[262]
Id at para 67.
[263]
Id.
[264]
On this point, the Court at para 65 of
OUTA
above n 54 appeared to lay emphasis on decisions of the Executive or
Legislative arms of Government. Perhaps that is to
be
understood in the context of the fact that the case concerned the
exercise of Executive power at a high level, i.e. at ministerial
level. I need not get into what the position should be if the
exercise of power is at a lower level, for example, at the
level of
an administrative functionary or at the level of an organ of state
like Eskom.
[265]
Hoexter and Penfold above n 146 at 806.
[266]
Raboshakga “The Separation of Powers in Interim Interdict
Applications” (2013) 5
Constitutional
Court Review
366 at 372.
[267]
OUTA
above n 54 at para 47.
[268]
Hoexter
and Penfold above n 146
at 805.
[269]
Raboshakga, above n 266 at 376, says that “
[t]he
separation of powers plays a role, but can be outweighed by other
factors”. At 373, the author also says that
on an alternative reading of
OUTA
—
“
the
Court was not establishing a new general rule of ‘abstinence’
in policy-laden or polycentric matters. Instead,
the Court was
emphasising that, in the context of interim relief interdict cases
against the state, the doctrine of separation
of powers may possess
greater weight than in other circumstances. . . . Under such
circumstances, courts must tread cautiously
in order to respect the
authority of the Executive to make policy choices.”
In
City of Cape Town
v South African National Roads Agency Ltd
[2013] ZAWCHC 74
(WCC)
at para 76 Binns Ward J held:
“
OUTA
does not enjoin a culture of undiscriminating deference by the
courts . . . when seized of applications for interim interdictal
relief in particular to executive conduct. The judgment does
not abjure the courts’ constitutional duty to uphold
the rule
of law and to ensure, as far as possible, the achievement of
effective remedies for breaches of fundamental rights,
including the
right to lawful, reasonable and procedurally fair administrative
action.”
[270]
South
African Informal Traders Forum v City of Johannesburg
[2014] ZACC 8
;
2014 (4) SA 371
(CC);
2014 (6) BCLR 726
(CC) at
para 31.
sino noindex
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