Case Law[2023] ZASCA 138South Africa
Emalahleni Local Municipality v Lehlaka Property Development (Pty) Ltd (600/2022) [2023] ZASCA 138; [2024] 1 All SA 1 (SCA) (25 October 2023)
Supreme Court of Appeal of South Africa
25 October 2023
Headnotes
Summary: Civil law and procedure – practice – joinder – no public law relationship between private landowner and unlawful occupiers – notion of a ‘special cluster of relationships’ did not translate into imposing obligations on private individuals, nor didit convert a contractual relationship into an administrative one – no direct, substantial and legal interest in dispute where no contractual privity – non-joinder point in limine dismissed.
Judgment
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## Emalahleni Local Municipality v Lehlaka Property Development (Pty) Ltd (600/2022) [2023] ZASCA 138; [2024] 1 All SA 1 (SCA) (25 October 2023)
Emalahleni Local Municipality v Lehlaka Property Development (Pty) Ltd (600/2022) [2023] ZASCA 138; [2024] 1 All SA 1 (SCA) (25 October 2023)
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sino date 25 October 2023
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA JUDGMENT
# Reportable
Reportable
Case
no: 600/2022
In
the matter between:
EMALAHLENI
LOCAL MUNICIPALITY
APPELLANT
and
LEHLAKA
PROPERTY DEVELOPMENT (PTY) LTD
RESPONDENT
Neutral
citation:
Emalahleni
Local Municipality v Lehlaka Property Development (Pty) Ltd
(600/2022)
[2023] ZASCA 138
(25 October
2023)
Coram:
MOCUMIE, NICHOLLS, HUGHES and WEINER JJA and
SIWENDU AJA
Heard:
18 May 2023
Delivered:
This judgment was handed down
electronically by circulation to the parties’ legal
representatives by email. Publication was
made on the Supreme Court
of Appeal website and release to SAFLII. The date and time for
hand-down is deemed to be at 11h00 on
25 October 2023.
Summary:
Civil law and procedure –
practice – joinder – no public law relationship between
private landowner and unlawful
occupiers – notion of a ‘special
cluster of relationships’ did not translate into imposing
obligations on private
individuals, nor didit convert a contractual
relationship into an administrative one – no direct,
substantial and legal interest
in dispute where no contractual
privity – non-joinder point
in
limine
dismissed.
ORDER
On
appeal from:
Mpumalanga Division of the
High Court, Middelburg (Legodi JP,
sitting
as court of first instance):
The appeal is dismissed
with costs, including the costs of two counsel.
JUDGMENT
# Hughes JA (Mocumie JA
concurring):
Hughes JA (Mocumie JA
concurring):
[1]
This is an appeal against the judgment of
the Mpumalanga Division of the High Court, Middelburg (the high
court) for declaratory
and interdictory relief sought by the
respondent (applicant in the court
a
quo
), Lehlaka Property Development
(Pty) Ltd (Lehlaka), against the appellant (respondent in the court
a
quo
), Emalahleni Local Municipality
(the Municipality). Legodi JP granted the orders in the court
a
quo
, which I set out further below. The
Municipality sought leave to appeal the orders, which was refused by
the court
a quo
.
The appeal is with leave of this Court.
[2]
At the centre of this appeal is a mining
village, Rietspruit. This village was formed by the Rietspruit
Colliery Mine (the mine),
situated in Witbank from 1978. The village
and its infrastructure catered for the miners who worked in the mine.
The mine supplied
the village with electricity, which was initially
obtained from Eskom directly, and later from the Municipality.
[3]
During
2002, the mine having exhausted all the resources from the land,
ceased mining operations. At the cessation of the mining
operations,
and in terms of the mines’ responsibilities and obligations in
accordance with the Mineral and Petroleum Resources
Development Act
28 of 2002 (MRPDA),
[1]
the
mine tasked Lehlaka, a property development company, to ‘hand-over’
the mining village to the community. To this
end, in 2004, the
Municipality, through a proclamation of the village, established a
formal municipal township, Rietspruit Township,
commonly known as
Rietspruit village.
[4]
Thereafter, Lehlaka took ownership of the
various properties in Rietspruit village. It complied with its duties
in terms of the
‘hand-over’; distributed and transferred
most of the village property, save for the eight properties which
remained
under Lehlaka’s ownership.
[5]
During
the course of Lehlaka’s ownership of the eight properties, and
before the township was proclaimed, in terms of the
Emalahleni Local
Municipality Electricity By-laws (the Electricity By-laws),
[2]
Lehlaka,
as an owner, was responsible for the payment of all municipal
services. After the township was proclaimed, the responsibility
for
the payment of the municipal services fell upon the new owners in
respect of their individual properties, but for the eight
properties
which were owned by Lehlaka. For some years, these properties
remained unoccupied and were as a result invaded by unlawful
occupiers. Lehlaka, as an owner, and in terms of its consumer
agreement with the Municipality, in accordance with the Electricity
By-laws, continued to pay for the municipal services.
[6]
Section 3(1) of the Electricity By-laws
states:
‘
No
person shall use or be entitled to use an electrical supply from the
Council unless or until such person has entered into an
agreement in
writing with the Council for such supply, and such agreement together
with the provisions of these By-laws shall in
all respects govern
such supply. If a person uses an electrical supply without entering
into an agreement, he shall be liable for
the cost of electricity and
any other costs incurred by Council in such circumstances.’
[7]
As stated earlier, on proclamation of the
township, the supply of electricity to the village was from the
Municipality since it
had taken over from Eskom. Subsequent to the
invasion of the eight properties by unlawful occupiers who utilised
the electricity,
Lehlaka fell into arrears with its electricity
bills. In 2019, Lehlaka and the Municipality concluded a settlement
agreement in
respect of the arrear charges. Thus, from August 2019,
Lehlaka made payments for the electricity as and when they became
due, and
was up to date with its payments.
[8]
However, as is common cause between the
parties, on 10 February 2020 Lehlaka gave a notice of termination of
its consumer agreement
with the Municipality and sought to have the
electricity disconnected. Though Lehlaka sought the disconnection of
the electricity,
it decided against this option, and as stated in the
founding affidavit, it accepted that this option had consequences for
not
only the unlawful occupiers and the Municipality, but it could
also ‘implicate rights and obligations between them beyond
Lehlaka’s consumer agreements’. There was however no
response from the Municipality.
[9]
On 28 February 2020, Lehlaka and the
Municipality held a meeting to discuss the letter of termination
served on 10 February 2020.
In that meeting, the Municipality did not
dispute that Lehlaka had a right to terminate the consumer agreement.
Instead, it advised
Lehlaka to first inform the unlawful occupiers,
and then put a plan in place to relocate them before disconnecting
the electricity.
Before this Court, both parties agreed that the
occupation of the properties by the unlawful occupiers and Lehlaka’s
responsibility
to pay rates and electricity had been a topic that
they had engaged in for quite a while.
[10]
On 23 April 2020, Lehlaka addressed a
further letter of termination of the consumer agreement ‘for
the avoidance of any doubt’
about its previous letter of 10
February 2020. In this letter it gave the Municipality 14 days’
notice in terms of s 4(1)
of the Electricity By-laws – the said
period would culminate on 15 May 2020. Section 4(1) provides:
‘
Subject
to the provision of section 7(9) and (13), the consumer’s
agreement may be terminated
by
the
consumer,
or
his
authorised
representative,
or
by
the
Council
giving 14 days’ notice in writing
calculated from the date of service thereof, provided that if such
notice purports to terminate
an agreement on a Saturday, Sunday or
public holiday, such termination shall only take effect on the
following workday.’
However, in the latter
termination notification of 23 April 2020, Lehlaka did not seek the
disconnection of the electricity but
indicated that, if the
Municipality continued to supply electricity to the unlawful
occupiers after the proposed termination date,
this would be for the
Municipality’s own account.
[11]
In its founding affidavit, Lehlaka stated
that it had ‘on several occasions’ terminated the
consumer agreement with
the Municipality. The most recent being on 23
April 2020, which it submits was in the prescribed manner, as set out
in s 4(1) of
the Electricity By-laws. Hence, in terms of the consumer
agreement, the agreement was effectively terminated on 15 May 2020.
Thus,
the issue was purely contractual in nature, and Lehlaka had
complied with the terms of the consumer agreement. Therefore, Lehlaka
was ‘not obliged to continue to pay for the electricity
consumed by the unlawful occupiers’.
[12]
Although the Municipality did not dispute
Lehlaka’s right to terminate the consumer agreement, it however
asserted that it
had the discretion whether or not to accept the
termination, which it refused to accept. It reasoned that it could
not accept the
purported termination without Lehlaka first informing
the unlawful occupiers that the electricity supply would be
disconnected,
and that a plan needed to be put in place by Lehlaka to
relocate the unlawful occupiers.
[13]
As a result of the Municipality’s
attitude, Lehlaka approached the high court seeking declaratory and
consequential relief,
which was fashioned as follows:
‘
1.
Declaring that the applicant has validly
terminated the consumer agreements for the supply of electricity that
existed between it
and the respondent in respect of the “Rietspruit
Properties”, fully described in paragraph 13 of the founding
affidavit
and also annexure “X” to the notice of motion,
with effect from 15 May 2020;
2.
Declaring that the applicant is not
responsible for the payment of any electricity consumed on the
Rietspruit Properties after 15
May 2020;
3.
Ordering the respondent to reverse any
amounts it has charged to the applicant’s municipal accounts in
respect of the consumption
of electricity on the Rietspruit
Properties since 15 May 2020;
4.
Interdicting the respondent from issuing
any further invoices to the applicant in respect of any electricity
consumed on the Rietspruit
Properties;
5.
Directing the respondent to pay the costs
of this application in the event of opposition; and
6.
Further and/or alternative relief.’
[14]
On 26 July 2021, the high court granted the
aforesaid relief in its entirety. It is this order that is the
subject of this appeal.
In the high court, the Municipality raised
three points
in limine
.
First, that the matter was premature, as in terms of s 4(1) of the
Electricity By-laws, the Municipality could terminate the consumer
agreement within 14 days’ notice to the consumer, yet, it had
not given such notice. Before us, counsel for the Municipality,
correctly so, abandoned this point
in
limine
. Second, the decision of the
Municipality not to accept Lehlaka’s termination of the
agreement was an administrative action,
and thus, the procedure that
ought to have been adopted was by way of review under the Promotion
of Administrative Justice Act
3 of 2000 (PAJA) and not declaratory or
interdictory relief, as sought by Lehlaka. Third, was the issue of
non-joinder of the unlawful
occupiers on the property of Lehlaka.
[15]
The high court did not interrogate these
points
in limine
at
all. Yet, it found that ‘[t]he non-joinder issue perhaps is a
smoke screen’.
[16]
I
first deal with the issue of non-joinder as it would be dispositive
of the appeal, if found to be a good point. In
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others
,
[3]
the
Constitutional Court held the following:
‘
At
common law, courts have an inherent power to order joinder of parties
where it is necessary to do so even when there is no substantive
application for joinder.
A
court could, mero motu, raise a question of joinder to safeguard the
interest of a necessary party and decline to hear a matter
until
joinder has been effected. This is consistent with the
Constitution
.’
[4]
(Emphasis added.)
[17]
The Constitutional Court further stated:
‘
The
law on joinder is well settled. No court can make findings adverse to
any person’s interests, without that person first
being a party
to the proceedings before it.
The
purpose of this requirement is to ensure that the person in question
knows of the complaint so that they can enlist counsel,
gather
evidence in support of their position, and prepare themselves
adequately in the knowledge that there are personal consequences
–
including a penalty of committal – for their non-compliance.
All of these entitlements are fundamental to ensuring
that potential
contemnors’ rights to freedom and security of the person are,
in the end, not arbitrarily deprived.’
[5]
(Emphasis added.)
[18]
In
addition, I am mindful of the assertions made by Van der Westhuizen J
in
Gcaba
v Minister for Safety and Security and Others
,
[6]
that:
‘
Jurisdiction
is determined on the basis of the pleadings, as Langa CJ held in
Chirwa
and
not the substantive merits of the case. If Mr Gcaba’s case were
heard by the High Court, he would have failed for not
being able to
make out a case for the relief he sought, namely review of an
administrative decision. In the event of the Court’s
jurisdiction being challenged at the outset (
in
limine
), the applicant’s
pleadings are the determining factor. They contain the legal basis of
the claim under which the applicant
has chosen to invoke the court’s
competence. While the pleadings – including in motion
proceedings, not only the formal
terminology of the notice of motion,
but also the contents of the supporting affidavits – must be
interpreted to establish
what the legal basis of the applicant’s
claim is, it is not for the court to say that the facts asserted by
the applicant
would also sustain another claim, cognisable only in
another court. If however the pleadings, properly interpreted,
establish that
the applicant is asserting a claim under the LRA, one
that is to be determined exclusively by the Labour Court, the High
Court
would lack jurisdiction. An applicant like Mr Gcaba, who is
unable to plead facts that sustain a cause of administrative action
that is cognisable by the High Court, should thus approach the Labour
Court.’ (Footnotes omitted.)
[19]
The
test for non-joinder is set out by the Supreme Court of Appeal in
Absa
Bank Ltd v Naude NO and Others
,
[7]
in
the following terms:
‘
The
test whether there has been non-joinder is whether a party has a
direct and substantial interest in the subject matter of the
litigation which may prejudice the party that has not been joined. In
Gordon v Department of Health,
Kwazulu-Natal
it was held that if an
order or judgment cannot be sustained without necessarily prejudicing
the interest of third parties that
had not been joined, then those
third parties have a legal interest in the matter and must be
joined.’
Essentially, the
appellant must show that:
(a)
The unlawful occupiers have a direct and
substantial interest in the subject
matter
of the litigation which may prejudice them as they have not been
joined; and
(b)
Such
interest
is
not
only
a
substantial
interest
but
is
a
legal
interest
which justifies that they must be joined.
[20]
It
is trite that the determination of a point
in
limine
essentially
deals with a specific legal point that has a bearing on a
jurisdictional matter prior to entertaining the merits of
the
matter.
[8]
Hence,
if the point
in
limine
of
non-joinder raised, is found to be good in law, there will be no need
to deal with the merits advanced by Lehlaka, as a jurisdictional
issue raised does not necessitate dealing with the merits.
[21]
In
this Court, Brand JA, in
Judicial
Service Commission and Another v Cape Bar Council and Another
,
[9]
said
the following on the issue of non-joinder:
‘
It
has by now become settled law that the joinder of a party is only
required as a matter of necessity – as opposed to a matter
of
convenience –
if
that party has a direct and substantial interest which may be
affected prejudicially by the judgment of the court in the
proceedings
concerned
(see
eg
Bowring
NO v Vrededorp Properties CC
2007(5)
SA 391 (SCA) para 21). The mere fact that a party may have an
interest in the outcome of the litigation does not warrant
a
non-joinder plea. The right of a party to validly raise the objection
that other parties should
have
been
joined
to
the
proceedings,
has
thus
been
held
to
be
a
limited
one
(see
eg
Burger
v Rand Water Board
2007
(1) SA 30
(SCA) para 7; Andries Charl Cilliers, Cheryl Loots and
Hendrik Christoffel Nel
Herbstein
& Van Winsen The Civil Practice of the High Courts of South
Africa
5
ed vol 1 at 239 and the cases there cited.)’.
[10]
(Emphasis added.)
[22]
As stated earlier, Lehlaka contended that
its relationship with the Municipality was purely contractual. The
consumer agreement
was between the Municipality and itself and as
such, it was entitled to seek a termination of the agreement, in line
with s 4(1)
of the Electricity By-laws, which it had done.
[23]
The
Municipality stated that the contractual issue that Lehlaka had
raised was not as simple, since there was ‘a special cluster
relationship’ between it, Lehlaka and the unlawful occupiers:
It alleged that this ‘special cluster relationship’
exists between it and Lehlaka, between it and the occupiers, as well
as between Lehlaka and the occupiers. The Municipality relied
on the
case of
Joseph
and Others v City of Johannesburg and Others
[11]
(
Joseph
)
and the cases cited therein, where the Constitutional Court explained
this ‘special cluster relationship’ as a ‘broader
constitutional relationship’ existing between ‘a public
service provider and the members of the local community [that]
gives
rise to rights that require the application of s 3 of [the
Promotion
of Administrative Justice Act]&rsquo
;.
[12]
[24]
Furthermore, the Municipality submitted
that Lehlaka was well within its right to apply for the termination
of the consumer agreement,
however the decision to accept such
termination rested with the Municipality. This decision by the
Municipality – to accept
or to reject the termination –
amounted to an administrative action, which ought to have been
reviewed and set aside in terms
of PAJA, if found to be unreasonable.
For the aforesaid proposition, the Municipality placed reliance on
the special cluster relationship
and the Municipality’s public
responsibility in terms of Chapter 7 of the Constitution and the
relevant legislation, being
the Local Government: Municipal Systems
Act 32 of 2000 (Municipal Systems Act) and the Municipal Finance
Management Act 56 of 2003,
in respect of those persons within its
jurisdiction. Hence, the Municipality contended that ‘the
special cluster relationship’
was governed by administrative
law principles.
[25]
One of the fundamental duties and functions
of a municipality under public law is to provide basic municipal
services to the occupants
within its constituency, one of these
services being the supply of electricity. These constitutionally
mandated duties are derived
from s 152 of the Constitution under
Chapter 7, which 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).’
[26]
Over and above, s 73 of the Municipal
Systems Act states:
‘
General
duty
(1)
A municipality must give effect to the
provisions of the Constitution and—
(a)
give priority to the basic needs of the
local community;
(b)
promote the development of the local
community; and
(c)
ensure that all members of the local
community have access to at least the minimum level of basic
municipal services.
(2)
Municipal services must—
(a)
be equitable and accessible;
(b)
be provided in a manner that is
conducive to—
(i)
the prudent, economic, efficient and
effective use of available resources; and
(ii)
the improvement of standards of quality
over time;
(c)
be financially sustainable;
(d)
be environmentally sustainable; and
(e)
be regularly reviewed with a view to
upgrading, extension and improvement.’
# Discussion
Discussion
[27]
The provision of municipal services, which
includes the provision of electricity, was highlighted in
Joseph
,
where Skweyiya J said:
‘
The
provision of basic municipal services is a cardinal function, if not
the most important function, of every municipal government.
The
central mandate of local government is to develop a service delivery
capacity in order to meet the basic needs of all inhabitants
of South
Africa, irrespective of whether or not they have a contractual
relationship with the relevant public service provider.
The
respondents accepted that the provision of electricity is one of
those services that local government is required to provide.
Indeed,
they could not have contended otherwise. In
Mkontwana
,
Yacoob J held that “municipalities are
obliged
to
provide water and
electricity
to
the residents in their area
as
a matter of public duty
.”
Electricity is one of the most common and important basic municipal
services and has become virtually indispensable, particularly
in
urban society.’
[13]
[28]
With this legal framework in mind, I now
turn to the core issue for consideration by this Court, that is,
whether the unlawful occupiers
within the Municipality’s
constituency are entitled to receive basic municipal services,
electricity being one of those services,
and whether such duty falls
upon Lehlaka.
[29]
Unfortunately,
the Constitution does not spell out the provision of electricity to
the occupants in its constituency, as it does
in respect of water,
yet, electricity is also a basic service that the Municipality is
obliged to provide and the occupants have
a public law right to hold
the Municipality to its public law obligation.
[14]
As
was stated in
Joseph
,
the mistake that was made in the high court, as in this case, is
‘viewing the issues through an entirely contractual lens’.
[15]
To apply private law to the matter does not give any credence to the
public law rights and obligations. The ‘special cluster
relationship’ takes into account both private and public law.
The working of such relationship was eloquently explained in
Joseph
:
‘
The
starting point should therefore be whether any “rights”
of the applicants have been affected as that term is understood
in
PAJA, and if so, whether the relevant municipal by-laws can be read
consistently with PAJA. 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.”’
[16]
[30]
In
Joseph
,
Skweyiya J pertinently stated the following:
‘
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
.’
[17]
(Emphasis added.)
[31]
On
these facts, as was the case in
Joseph
,
the ‘broader constitutional relationship that exists between a
public service provider and the members of the local community
gives
rise to rights’
[18]
that
invoke the application of PAJA. Under PAJA, the notion of a ‘right’,
has to be interpreted ‘generously’
for purposes of s 3(1)
and as such, the interpretation is wider than the approach that is
applied in private law, taking into account
the public law
relationship that is at hand.
[19]
The
Municipality has a public law duty and through just administration,
should supply electricity to its constituents, the unlawful
occupiers
included, by virtue of the Constitution and the Municipal Systems
Act. The corollary is that the unlawful occupiers have
a right to
insist that the Municipality should discharge its public law duty to
supply electricity.
[32]
It is that right that will be adversely
affected in this ‘special cluster of relationships’,
which requires that the
unlawful occupiers be joined to the
proceedings. This is because they have a direct, substantial and
legal interest that is affected
by the order made by the high court.
The high court was bound to consider the issue of non-joinder and
ought to have come to the
conclusion that it was necessary that
Lehlaka should have joined the unlawful occupiers, and it did not.
For this, it erred materially.
The converse is true that the
Municipality has succeeded to show that the unlawful occupiers have a
direct, substantial and legal
interest in the subject matter of the
litigation which may prejudice them as parties that have not been
joined. Thus, it satisfied
the test set out by this Court in
Absa
Bank Ltd v Naude NO
. For this reason
alone, the appeal ought to succeed.
# Conclusion
Conclusion
[33]
I have had the benefit of reading the third
judgment, in support of the second judgment, penned by Siwendu AJA,
who wrote separately
on two issues which are addressed extensively in
both the first and the second judgment. These issues are first, the
issue of non-joinder;
and second, what she refers to as the purported
‘special cluster of relationships'. Siwendu AJA concludes, in
respect of
the first issue, that ‘[i]t would be speculative for
a court to foretell what that dispute will be or express any view in
relation to a matter that is not yet ripe and which was not yet
before the high court for adjudication’. I have decided to
express my views on this issue, of non- joinder, as it is a
jurisdictional question and dispositive of the appeal, as I have
already
extensively dealt with in this judgment. In addition, I yet
again to a very limited extent address, the special cluster of
relationships,
to underscore its importance in resolving this appeal.
[34]
On the first issue, Siwendu AJA contends
that ‘the source of that right, if it exists, does not lie in
the present dispute
about the termination of the agreement’.
Further, that this issue was not before the high court for
adjudication. I thus
deem it necessary, to illustrate the correct
factual position, in that the issue of the rights of the unlawful
occupiers was raised
in the high court.
[35]
First, the Municipality raised the issue of
non-joinder as one of the points
in
limine
, the third point
in
limine
to be exact, in their answering
affidavit. In essence, the Municipality stated that there were still
occupiers residing in Rietspruit
Mining Village, where Lehlaka sought
to cancel its electricity agreement with the Municipality and the
Municipality sought direction
of Lehlaka as to what would be done in
order to deal with this predicament. In its answering affidavit the
Municipality makes reference
to the miners; the employment of the
miners; the details of the employer and the basis for the miners
being employed; the underlying
employment agreement and terms
thereof; and the basis for the present miners residing in Rietspruit
Mining Village (not the 1978
miners, unless they are one and the same
persons); and finally it wanted to know what steps have been taken by
Lehlaka as the miners’
employer to deal with the present
predicament that the presence of the miners created for all the
parties.
[37]
Second, the high court noted the contention
of the Municipality in its refusal to disconnect the supply of
electricity until a plan
had been put in place to relocate the
unlawful occupiers.
[38]
Third, in their supplementary affidavits
filed in the high court application both the Municipality and Lehlaka
address the existence
and non-existence of the unlawful occupiers’
right in these proceedings.
[39]
In the fourth place, one of the grounds of
appeal raised before the high court, with reference to the issue of
non-joinder, is phrased
as follows:
‘
The
Court erred in fact and in law in finding that the occupants of the
Applicant’s properties are “illegal occupiers”,
without the occupants being joined to the proceedings to be heard in
this regard. The Court therefore also erred in law in failing
to rule
on, or failing to uphold, the Respondent’s point
in
limine
on a non-joinder. It erred in
fact and law in finding that the non- joiner issue is a smokescreen.’
[40]
Last, and as stated before in this
judgment, the high court did not deal pertinently with the point
in
limine
of non-joinder, suffice to hold
that ‘[t]he non-joinder issue is perhaps a smoke screen’.
[41]
I find, with respect, that the contention
that the issue of non-joinder was not raised before the high court or
this Court, is gratuitous
to say the least, as the record clearly
shows that it was raised and dealt with extensively in both courts.
It is the high court
that failed to deal with it and, thus, this
Court was bound to deal with it, as it has done in this judgment.
[42]
The issue of ‘the purported special
cluster of relationships’. The rights of the unlawful occupiers
are intrinsically
linked to the relief that the judgment would grant.
The purported special cluster of relationships cannot be discarded
and wished
away as the third judgment seems to suggest. It either
exists as the Municipality contended or it does not as Lehlaka
contended.
Both parties dealt with this extensively.
[43]
For the conclusion I have reached in the
preceding paragraphs, it is not necessary to deal with the merits and
other points
in limine
.
[44]
Consequently, I would make the following
order:
1
The appeal is upheld with costs including
the costs for leave to appeal in the high court, such costs to
include the costs of two
counsel where so employed.
2
The order of the high court is set aside
and is substituted with the following:
‘
(a)
The application is removed from the roll for the
applicant to join the unlawful occupiers.
(b)
The applicant is to pay the costs of the
application.’
W
HUGHES
JUDGE
OF APPEAL
# Nicholls JA (Weiner JA
concurring):
Nicholls JA (Weiner JA
concurring):
[43]
I have read the first judgment of my
colleague, Hughes JA. Regretfully, I cannot agree with the outcome
thereof or its reasoning.
In summary, her reasoning is that because
the Municipality has a constitutional duty to provide basic municipal
services to all
occupants within its jurisdiction, it would be
incorrect to apply private law in circumstances where there exist
public law rights
and obligations. Instead, there is ‘a special
cluster of relationships’ between a public service provider and
members
of the community that invokes the application of PAJA. She
concludes that the unlawful occupiers have a right to insist on being
supplied with electricity, which right will be adversely affected in
this ‘special cluster of relationships’ should
Lehlaka
act in a manner as to terminate the consumer agreement for the supply
of electricity. Consequently, as the unlawful occupiers
have a direct
and substantial interest in the subject matter of the litigation,
they should have been joined to the proceedings.
On this basis, the
first judgment found that the special plea of non-joinder should be
upheld.
[44]
The facts are set out in the first judgment
and need not be repeated here. I am also in agreement with the
applicable legislation
and the by-laws relating to the termination of
the consumer agreement (the Electricity By-laws). My fundamental
point of departure
is that there exists no public law relationship
between Lehlaka and the unlawful occupiers. That there may be one
between the Municipality
and the unlawful occupiers to provide basic
services does not mean that the unlawful occupiers have a direct and
substantial interest
in the dispute as to whether Lehlaka has a right
to terminate its consumer agreement with the Municipality. Or, as the
Municipality
contends, whether it has a discretion not to accept the
termination.
[45]
The first point to be made is that there is
no constitutional or other legal obligation on a private property
owner to pay for electricity
consumed by unlawful occupiers. There is
no legislation that provides for this and insofar as it may be
suggested that the Constitutional
Court has imposed such a duty, this
is based on a misunderstanding of the authorities. If Lehlaka owes no
duty to supply electricity
to the unlawful occupiers in discharge of
a public duty (and has no private law duty to do so), then whether or
not the contract
between Lehlaka and the Municipality is terminated,
gives rise to no legal interest by the unlawful occupiers in that
dispute.
[46]
Much
has been written about the nature of the ‘interest’ that
a party must have in order to be joined to proceedings.
In
Milani
and Another v South African Medical and Dental Council and Another
(
Milani
),
[20]
the court, in dealing with this issue, stated: ‘Our Courts have
at times recognised that certain persons are affected by
legal
proceedings but they have no right to be joined. The sub-tenant of
the tenant in a suit against a lessor is a case in point.
(Compare
Sheshe
v Vereeniging Municipality
1951
(3) SA 661
(A) at 667A; and
Ntai
and Others v Vereeniging Town Council and Another
1953
(4) SA 579
(A) at 591.) In the
United
Watch
case
supra
Corbett
J at 417B-C said about such a sub-tenant:
“
The
sub-tenants’ right to, or interest in, the continued occupancy
of the premises sub-leased is inherently a derivative one
depending
vitally upon the validity and continued existence of the right of the
tenant to such occupation. The sub-tenant, in effect,
hires a
defeasible interest. (See
Ntai and
Others v Vereeniging Town Council and Another
1953
(4) SA 579
(A) at 591.) He can consequently have no direct legal
interest in proceedings in which the tenant’s continuing right
of occupation
is in issue, however much the termination of that right
may affect him commercially and financially.”’
[47]
The principles applied in
Milani
are similar to those in issue in this
case. The unlawful occupiers may be affected by the termination of
the consumer agreement,
but that does not amount to the legal
interest required to be joined in the proceedings. Furthermore, even
if the unlawful occupiers
were to be joined, it is unclear what
remedy they could possibly seek from Lehlaka.
[48]
The first judgment places considerable
reliance on the ‘special cluster of relationships’ to
find that the unlawful
occupiers should be joined. However, it fails
to identify the source of Lehlaka’s obligation towards the
unlawful occupiers
and the basis of their right and interest in the
dispute over the termination of the consumer agreement.
[49]
The
notion of a ‘special cluster of relationships’ was first
coined by Sachs J in
Residents
of Joe Slovo Community, Western Cape v Thubelisha Homes and Others
(
Joe
Slovo
)
[21]
and
quoted with approval in
Joseph
and Others v City of Johannesburg and Others
(
Joseph
).
[22]
In
Joe
Slovo
,
the question was whether the residents of the Joe Slovo community
were ‘unlawful occupiers’ in terms of the Prevention
of
Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998
(PIE) and whether the respondents
had
acted
reasonably
and
constitutionally
in
seeking
the
eviction
of
20 000 people (the applicants) from land owned by the municipality.
The Constitutional Court granted a structured eviction subject
to
certain conditions.
[50]
In
a concurring judgment, and considering the lawfulness of the
occupation of the residents, Sachs J held that this enquiry was
not
located in the common law rights of landowners but in the context of
the ‘special cluster of legal relationships’
established
by the Constitution and the
Housing Act 107 of 1997
, between the
municipality and the occupants. He drew a distinction between the
contractual relationship between private owners
of land and
occupiers, on the one hand, with that of the relationship between a
local government authority and homeless people,
on the other.
These
relationships,
he
said,
‘flow
instead
from
an
articulation
of
public
responsibilities . . . and possess an ongoing, organic and dynamic
character that evolves over time’.
[23]
The ‘special cluster of legal relationships’ was a
reference to the constitutional obligations of the municipality
to
prevent homelessness, derived from a person’s constitutional
right to access to housing as well as the statutory duties
of local
government.
[51]
In
Joseph
,
the focus of the enquiry was the nature of the relationship between a
public service provider of electricity and the users of
the
electricity with which it had no formal contractual relationship. It
concerned the termination of electricity following the
accumulation
of substantial arrears owing by the landlord despite the fact that
the tenants had been paying their electricity to
the landlord. The
City of Johannesburg’s electricity service provider, City Power
(Pty) Ltd (City Power) had sent a pre-
termination notice to the
landlord but failed to notify the tenants. The main issue was whether
tenants were entitled to procedural
fairness in terms of
s 3
of PAJA,
by being given a pre-termination notice, before City Power cut the
electricity supply.
[52]
The
Constitutional Court found that because City Power knew that it was
providing electricity to the tenants in the building, it
was
artificial to think of the contractual relationship between the
landlord and City Power as unrelated to the benefits that accrued
to
tenants under this contract.
[24]
The landlord was acting merely as a ‘conduit’ in the
circumstances and the high court had failed to take into account
the
role that PAJA may play with people who have no contractual
relationship with the service provider.
[53]
In
finding that the tenants were entitled to a pre-termination notice,
the Constitutional Court referred to the ‘special cluster
of
relationships’ between a municipality and its citizens, which
was founded in the public responsibility that a municipality
bears to
its citizens in terms of the Constitution. When City Power supplied
electricity to the tenants, it did so in fulfilment
of constitutional
and statutory duties for municipalities to provide basic services to
all persons living within its jurisdiction.
[25]
In
such instances, it was found that administrative law governs these
relations beyond the law of contract.
[26]
The
public law duties of the municipality to the occupiers could not be
avoided by the contract between the municipality and the
landlord. As
such, it was held that City Power was obliged to notify the tenants
of its intended termination even though the contract
was with the
landlord.
[54]
Once again it is the constitutional
obligations of the municipality (a sphere of government) and City
Power (an organ of state)
that are emphasised, not that of the
private landowner. It was the threat of termination of the
electricity supply by the municipality
that gave rise to the interest
of the occupiers because their rights against the municipality were
effected.
[55]
In the matter before us, however, an order
is not sought to terminate the electricity supply to the occupiers,
who, unlike the tenants
in
Joseph
,
are unlawful occupiers, but merely to terminate the consumer
agreement Lehlaka has with the Municipality. The Municipality may
or
may not decide to terminate the electricity supply to the unlawful
occupiers. Should it do so, it is only at that stage that
the
unlawful occupiers may have rights vis-à-vis the Municipality,
including the right to procedural fairness in the form
of a
pre-termination notice.
[56]
If
the unlawful occupiers have a right to electricity as a component of
their constitutional right to basic services, then this
is an
obligation to be borne by the Municipality. To find otherwise would
be to make private citizens responsible for the State’s
constitutional duties. The notion of a ‘special cluster of
relationships’ does not translate into imposing obligations
on
private individuals, nor does it convert a contractual relationship
into an administrative one. In fact, the Constitutional
Court in
Joseph
rejected
a submission that the definition of ‘customer’, in terms
of the relevant by-laws, be extended to persons that
have no
contractual relationship with the service provider.
[27]
[57]
The
Municipality’s reliance on the Constitutional Court judgments
of
Mkontwana
v Nelson Mandela Metropolitan Municipality
(
Mkontwana
)
[28]
and
Rademan
v Moqhaka Local Municipality and Others
(
Rademan
),
[29]
is also misplaced.
Mkontwana
dealt
with the constitutionality of a legislative provision that imposed an
obligation on an owner wishing to transfer property,
to pay up to two
years’ worth of arrear charges for electricity, irrespective of
who incurred them.
[30]
It
was argued that the section was inconsistent with s 25 of the
Constitution, in that it amounted to an arbitrary deprivation of
property. The Constitutional Court pointed out that while the
deprivation was not insignificant, it was only for a two-year period,
not indefinitely. If desired, an owner could delay transfer for two
years and the new occupier would not be liable for the debts
of the
previous occupier.
[31]
Further,
there was sufficient justification for the deprivation that occurred
because the purpose was compelling; it was not arbitrary.
[58]
In the present matter, it is common cause
that Lehlaka was involved in attempts to donate the remaining
properties to the Municipality
in 2005, 2010 and 2018. While
initially agreeing to it, in the end the Municipality refused to
accept the donation. Notwithstanding
this, in the same breath the
Municipality complains that 40 756 unlawful households have invaded
property within its jurisdiction
and it has to deal with 95 000
households who require housing. This, so it claims, is in
circumstances where it cannot even provide
services adequately to the
formal households already in existence. For this state of affairs, it
blames the mines for ‘enticing
many indigent and vulnerable
people to the Municipality’s jurisdiction’. In essence,
it submits that should Lehlaka
successfully terminate its consumer
agreement, this will mean more households are the responsibility of
the Municipality. That
a municipality is overwhelmed by its
constitutional obligations towards its citizens cannot form a legal
basis for transferring
these obligations to a private landowner.
[59]
Rademan
also
does not assist. Ms Rademan was amongst a group of ratepayers who
refused to pay rates in protest against poor services rendered
by a
municipality in the Free State. She continued to pay her electricity
account. Despite this, the municipality gave her notice
and then cut
off her electricity supply. This Court held that the municipality
could consolidate the rates and the electricity
accounts and had the
right to terminate the electricity supply without a court order, even
though the electricity account was not
in arrears. Leave to appeal
was granted to the Constitutional Court, and duly dismissed. The
Constitutional Court held that consolidation
is provided for in the
relevant by-laws and once a customer pays only part of
the account, that
customer is in breach
of her obligations to make payment.
Therefore,
to terminate the electricity supply was not unconstitutional.
[32]
[60]
Here, the consequence of termination of the
consumer agreement may be that the unlawful occupiers have to look to
the Municipality
for the supply of electricity, but that is an
incident of the public law duty owed by the Municipality. There is no
reason why
this duty gives the unlawful occupiers a direct and
substantial interest in the private law contract between Lehlaka and
the Municipality.
Once the contract is terminated between the
Municipality and Lehlaka, and should the Municipality proceed to cut
off the electricity
supply to the unlawful occupiers, they would then
have the right to be joined in any proceedings. But at this stage,
the question
of joinder does not arise.
[61]
It should be noted that in its papers the
Municipality raised the non-joinder point on the basis that the
occupiers were employees
and former employees of the mines. It is on
this basis that it was submitted that they should have been cited. It
was pointed out,
and apparently accepted, that the occupiers
inhabited the properties unlawfully after the mines ceased operations
in 2001. None
of the unlawful occupiers are employed by the mine or
any related mining company.
[62]
It
is correct that no court can make a finding adverse to a party,
without him or her
being
party
to
the
proceedings
before
the
court.
This
is
to
effectuate
the
time-honoured
principle of
audi
alterem partem
.
[33]
Here,
whether the termination of the consumer agreement will be adverse to
the unlawful occupiers depends entirely on what the Municipality
elects to do. It can install pre-paid meters; it can reduce the
electricity supplied;
[34]
it
can terminate the electricity supply on proper notice; or, it can
carry on with the electricity supply unimpeded.
[63]
If
the matter is a purely contractual one, as I believe the termination
of the consumer agreement to be, then there can be no question
of
joining the unlawful occupiers as there is no contractual privity
between them and Lehlaka and/or the Municipality. Lehlaka
has no
constitutional obligation towards the unlawful occupiers to provide
electricity, and the unlawful occupiers have no corresponding
legal
right to be provided with electricity by Lehlaka free of charge in
perpetuity, or whenever the Municipality in its discretion
decides to
accept the termination. They, therefore, have no legal interest
worthy of protection in the current litigation.
[35]
This
disposes of the question of joinder. The point
in
limine
thus
falls to be dismissed.
[64]
The other point
in
limine
raised by the Municipality,
which is directly related to the merits, is the applicability of
PAJA. The Municipality submitted that
its decision to refuse to
terminate the consumer agreement should have been challenged as a
review in terms of PAJA. As pointed
out in the first judgment, the
Municipality does not dispute Lehlaka’s right to terminate its
consumer agreement with the
Municipality. Its stance is that it has a
discretion whether or not to accept what it describes as a
‘unilateral’ termination.
According to the Municipality,
Lehlaka allowed its properties to be occupied and for municipal
services to be consumed. This created
an ‘administrative
relationship’ between Lehlaka and the unlawful occupiers, which
created ‘onerous obligations
on [the Municipality] when it
comes to charging for electricity supplied to the properties, or the
termination of supply in the
event of non-payment’.
[65]
Administrative
action is defined, in s 1 of PAJA, to mean any decision taken, or any
failure to take a decision, by an organ of
state when exercising a
power in terms of the Constitution; or exercising a public power or
performing a public function in terms
of any legislation.
[36]
In
respect of natural or juristic persons, which are not organs of
state, for any decisions they make to fall within the ambit of
administrative action, they must be exercising a public power or
performing a public function in terms of an empowering provision.
[37]
[66]
There
can be no suggestion that Lehlaka was exercising a public power or
performing a public function in terms of an empowering
provision when
it terminated the consumer agreement. Thus, in order to establish
that PAJA applies, the Municipality, as an organ
of state, must
demonstrate that in refusing to accept the termination of the
consumer agreement, it was taking a decision in exercise
of a power
in terms of the Constitution or a statute. Did the impugned decision
entail the exercise by the Municipality of a power
in terms the
Constitution or provincial constitution, or the exercise of public
power in terms if any legislation? If it did not,
then it was not
administrative action and consequently not susceptible to judicial
review in terms of s 6 of PAJA.
[38]
[67]
This
Court has held that administrative action entails a decision which
involves a choice or evaluation, thereby drawing a distinction
between discretionary powers and mechanical powers.
[39]
Mechanical
powers involve no choice, for example, in instances where certain
requirements are met, the decision-maker has no power
to refuse. In
contrast, there are those circumstances where the decision-maker has
to make an assessment and come to a decision.
[40]
[68]
The termination of a consumer’s
agreement is provided for in the Electricity By- laws. Section 3(1)
of the By-laws provides
that no person shall be entitled to the use
of electricity without having entered into a consumer’s
agreement with the municipal
council in writing. If a person does use
an electrical supply without entering into such an agreement, he
shall be responsible
for the costs of electricity. Section 4 deals
with the termination of a consumer’s agreement and provides:
‘
Subject
to the provision of section 7(9) and (13), the consumer’s
agreement may be terminated by the consumer, or his authorised
representative, or by [the Municipality] giving 14 days’ notice
in writing calculated from the date of service thereof, provided
that
if such notice purports to terminate an agreement on a Saturday,
Sunday or public holiday, such termination shall only take
effect on
the following workday.’
[41]
[69]
Other than the requisite 14 days’
written notice, which the Municipality has accepted was given by 23
April 2020, the Municipality
has no discretion to refuse to terminate
the consumer agreement. Insofar as the Electricity By-laws give rise
to legislative regulation
of the contractual relationship between the
Municipality and Lehlaka, the Electricity By-laws do not accord the
Municipality the
discretionary power to decide whether to accept or
refuse a termination. Once that is so, the matter is governed by the
ordinary
terms of the contract. The public law regulation is limited.
Hence, the right to terminate, which the Municipality acknowledges,
must prevail because there is no power given to the Municipality to
decide whether or not that right may be exercised.
[70]
On the Municipality’s interpretation,
the consumer may not terminate a consumer agreement, but only request
the Municipality
to do so, which it has a discretion to refuse. It
would be extraordinary if a consumer agreement with a public service
provider
could operate in perpetuity and only be terminated if the
service provider agreed to its termination. Once it is accepted that
the consumer has a right to terminate a consumer’s agreement on
the requisite notice, there is no choice to be made by the
Municipality and thus no decision, other than a mechanical one, to be
made. The decision, therefore, does not amount to administrative
action as defined in PAJA.
[71]
For the reasons set out above, Lehlaka is
entitled to terminate the contract with the Municipality.
Consequently, the appeal falls
to be dismissed and the following
order is made:
The appeal is dismissed
with costs, including the costs of two counsel.
C
HEATON NICHOLLS
JUDGE
OF APPEAL
# Siwendu AJA:
Siwendu AJA:
[72]
I have read the judgments by my colleagues
Hughes JA (the first judgment) and Nicholls JA (the second judgment).
I concur in the
second judgment and order proposed by my colleague,
Nicholls JA. I write separately, because in my view given the
contractual nature
of the relationships between Lehlaka (as the owner
of the occupied properties), on the one hand, and the Municipality (a
sphere
of government), on the other, a joinder of the unlawful
occupiers is not necessary.
[73]
First,
it merits emphasis that only the Municipality singularly bears the
outward administrative law obligations in its dealings
with its
citizens.
[42]
Those
obligations may not be transferred unless the Municipality contracts
with a third party to perform municipal services on its
behalf.
[43]
Second,
private citizens, like Lehlaka, cannot ‘act administratively’
and have no reciprocal administrative duties in
their dealings with
the Municipality in law.
[74]
The crux of the dispute before the high
court involves Lehlaka’s right to resile from and terminate the
consumer agreement
(the agreement) it has with the Municipality and
the Municipality’s refusal to accept Lehlaka’s
termination notice.
The Municipality impermissibly seeks to engineer
a tripartite relationship between it, Lehlaka, and the unlawful
occupiers to bolster
the purported ‘special cluster of
relationships’ between the parties. There is no basis in law
for the Municipality
to impose a contractual relationship on an
unwilling party who is entitled in law to resile from a contract.
[75]
It is not disputed that Lehlaka had no
prior relationship with the unlawful occupiers, whether as an
erstwhile lessor or a conduit
for the provision of electricity to the
property occupied. The mere incident of ownership of the properties
by Lehlaka cannot,
without more, create the ‘special cluster of
relationships’ contended for by the Municipality.
[76]
Absent the purported ‘special cluster
of relationships’ as between Lehlaka and the Municipality, the
dispute about the
termination of the agreement is a purely
contractual one. The unlawful occupiers are not privy or a party to
the agreement. As
held by the full court in
Rosebank
Mall (Pty) v Cradock Heights (Pty) Ltd
:
‘
There
is a distinction between the case of a party whose rights are purely
derived from “the right which is the subject-matter
of the
litigation” and in which he has no legal interest, on the one
hand, and the case where the third party has a right
acquired
aliunde
the
right which is the subject-matter of the litigation and which would
be prejudicially affected if the judgment and order made
in the
litigation to which he was not a party, were carried into
effect.’
[44]
[77]
On the strength of the above judgment, the
unlawful occupiers have no right or claim in the subject matter of
the termination dispute.
They are strangers to the agreement. The
basis for the joinder is that the rights of the unlawful occupiers to
be provided with
electricity will arise following the termination of
the agreement. The difficulty is that the source of that right, if it
exists,
does not lie in the present dispute about the termination of
the agreement.
It
would be speculative for a court to foretell what that dispute will
be or express any view in relation to a matter that is not
yet ripe
and which was not yet before the high court for adjudication.
[78]
Accordingly, for these additional reasons,
I concur in the second judgment that a joinder of the unlawful
occupiers to the termination
dispute is not necessary.
N
T Y SIWENDU
ACTING
JUDGE OF APPEAL
Appearances
For
the appellant:
A
Vorster
Instructed
by:
Ka-Mbonane
Cooper, Johannesburg
Van
der Merwe and Sorour Attorneys, Bloemfontein
For
the respondent:
M
Wesley SC and T Mosikili
Instructed
by:
Norton
Rose Fulbright Incorporated, Johannesburg
Webbers
Attorneys, Bloemfontein
[1]
Read
with
the
Social
and
Labour
Plan
in
terms
of
regulation
46
of
the
Mineral
and
Petroleum
Resources Development Regulations, GN R527, 23 April 2004.
[2]
Emalahleni
Local Municipality Electricity By-laws, LAN 173,
Mpumalanga
Provincial Gazette
2229,
14 November 2013 (MP).
[3]
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others; Mkhonto and
Others v Compensation Solutions (Pty) Limited
[2017]
ZACC 35; 2017 (11) BCLR 1408 (CC); 2018 (1) SA 1 (CC).
[4]
Ibid
para 91.
[5]
Ibid
para 92.
[6]
Gcaba
v Minister for Safety and Security and Others
[2009]
ZACC 26
;
2010 (1) SA 238
(CC);
2010 (1) BCLR 35
(CC) para 75.
[7]
Absa
Bank Ltd v Naude NO and Others
[2015]
ZASCA 97
(SCA);
2016 (6) SA 540
(SCA) para 10.
[8]
Ibid
para 75.
[9]
Judicial
Service Commission and Another v Cape Bar Council and Another
[2012]
ZASCA 115; 2012 (11) BCLR 1239 (SCA); 2013 (1) SA 170 (SCA); [2013]
1 All SA 40 (SCA).
[10]
Ibid
para 12.
[11]
Joseph
and Others v City of Johannesburg and Others
[2009]
ZACC 30; 2010 (3) BCLR 212 (CC); 2010 (4) SA 55 (CC).
[12]
Ibid
para 32.
[13]
Joseph
para
33.
[14]
Ibid
para 39.
[15]
Ibid
para 22.
[16]
Ibid
para 23.
[17]
Joseph
para
24.
[18]
Ibid
para 32
;
Cape Gate (Pty) Ltd and Others v Eskom Holdings SOC Ltd and Others
2019
(4) SA 14
(GJ) para 123.
[19]
Walele
v City of Cape Town and Others
[2008]
ZACC 11
;
2008 (6) SA 129
(CC);
2008 (11) BCLR 1067
(CC);
2008 (6) SA
129
(CC);
Premier,
Mpumalanga and Another v Executive Committee, Association of
State-Aided Schools, Eastern Transvaal
1999
(2) SA 91 (CC).
[20]
Milani
and Another v South African Medical and Dental Council and Another
[1990]
3 All SA 633
(T);
1990 (1) SA 899
(T) at 903A-D.
[21]
Residents
of Joe Slovo Community, Western Cape v Thubelisha Homes and Others
[2009]
ZACC 16; 2009 (9) BCLR 847 (CC); 2010 (3) SA 454 (CC).
[22]
Joseph
and Others v City of Johannesburg and Others
[2009]
ZACC 30
;
2010 (3) BCLR 212
(CC);
2010 (4) SA 55
(CC) para 24.
[23]
Joe
Slovo
para
343.
[24]
Joseph
paras
21-22.
[25]
Joseph
para
47.
[26]
Ibid
para 24.
[27]
Joseph
paras
74-75.
[28]
Mkontwana
v Nelson Mandela Metropolitan Municipality
2005
(1) SA 530 (CC); 2005 (2) BCLR 150 (CC).
[29]
Rademan
v Moqhaka Local Municipality and Others
[2013]
ZACC 11; 2013 (4) SA 225 (CC); 2013 (7) BCLR 791 (CC).
[30]
See
s 118(1) of
Local Government: Municipal Systems Act 32 of 2000
.
[31]
Ibid
para 45. See also O’Regan J, in a separate concurring
judgment, para 87, where she found that the owner was not deprived
of ownership by
s 118
of the
Local Government Municipal Systems Act
32 of 2000
, but rather one of the incidents of ownership, namely,
the ability to alienate immoveable property, was impaired. She
concluded
that the section does constitute a deprivation, but found
that it was not arbitrary.
[32]
Rademan
paras
32-34.
[33]
South
African Riding for the Disabled Association v Regional Land Claims
Commissioner and Others
[2017]
ZACC 4
;
2017 (8) BCLR 1053
(CC);
2017 (5) SA 1
(CC) para 10;
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others; Mkhonto and
Others v Compensation Solutions (Pty) Limited
[2017]
ZACC 35
;
2017 (11) BCLR 1408
(CC); 2018 (1) SA (CC) para 93.
[34]
See
Joseph
para
51.
[35]
Allers
and Others v Fourie NO and Others
[2006]
ZASCA 152
(SCA) para 24.
[36]
Section
1
(a)
(i)
and (ii) of PAJA.
[37]
Section
1
(b)
of
PAJA.
[38]
Ma-Afrika
Hotels (Pty) Ltd v Cape Peninsula University of Technology
[2023]
ZAWCHC 4
;
[2023] 1 All SA 731
(WCC); 2023 (3) 621 (WCC) para 11.
[39]
Nedbank
Ltd v Mendelow NO and Another
[2013]
ZASCA 98
;
2013 (6) SA 130
(SCA) paras 25-28;
Gamevest
(Pty) Ltd v Regional Land Claims Commissioner for the Northern
Province and Mpumalanga and Others
[2002]
ZASCA 117
;
2003 (1) SA 373
(SCA) paras 20 and 28.
[40]
C
Hoexter and G Penfold
Administrative
Law in South Africa
3
ed (2021) at 250.
[41]
Sections
7(9)
and
7
(13) deal with the prescribed disconnection fee and meter
reading period once an agreement has been terminated.
[42]
Section
239 of the Constitution defines an organ of state to include a local
sphere of government; See also
Transnet
Ltd v Goodman Brothers (Pty) Ltd
[2000] ZASCA 151
;
2001
(1) SA 853
(SCA), where the Court dealt with contractual dealings
which derive from the exercise of public power by an organ of state.
[43]
Section
78 of the Municipal Systems Act 32 of 2000 permits a municipality to
decide on mechanisms to deliver municipal services
including
contracting with private parties.
[44]
Rosebank
Mall (Pty) and Another v Cradock Heights (Pty) Ltd
[2003]
4 All SA 471
(W);
2004 (2) SA 353
(W) para 37.
sino noindex
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