Case Law[2025] ZAGPJHC 383South Africa
Webster and Others v City of Johannesburg Metropolitan Municipality (2021/26601) [2025] ZAGPJHC 383 (7 April 2025)
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Webster and Others v City of Johannesburg Metropolitan Municipality (2021/26601) [2025] ZAGPJHC 383 (7 April 2025)
Webster and Others v City of Johannesburg Metropolitan Municipality (2021/26601) [2025] ZAGPJHC 383 (7 April 2025)
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sino date 7 April 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number: 2021/26601
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES
In
the matter between:
DAVID
SURTEES WEBSTER N.O.
First
Applicant
IAIN
CAMEROON FRASER N.O.
Second
Applicant
PATRICK
JOSEPH AYLING N.O.
Third
Applicant
CHARLES
ANTHONY SANER N.O.
Fourth
Applicant
NEIL
URGUHART GARDEN N.O.
Fifth
Applicant
MMETJIE
PATIENCE NAVES-SHONGWE N.O.
Sixth
Applicant
KEITH
ROBERT DE BUYS N.O.
Seventh
Applicant
PAUL
ANTHONY CARTER N.O.
Eighth
Applicant
LEONARD
IAN SEGAL N.O.
Ninth
Applicant
CHRISTIAAN
CORNELIUS BESTER N.O.
Tenth
Applicant
GRAHAM
JOHN BROKENSHIRE N.O.
Eleventh
Applicant
and
THE
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
Respondent
JUDGMENT
Introduction
[1]
The
applicants were all trustees of the R A Welfare Development Trust
(Trust Number: I[…]), a trust duly established in terms
of the
Trust Property Control Act
[1]
.
In this judgment I will refer to the applicants as the “Trustees”.
[2]
Central to this application is a letter
(the “appeal letter”) written by attorneys for the
Trustees to the respondent
(the “City”) on 19 January
2021. The letter is attached to the founding affidavit as “WP16”.
[3]
The
letter constitutes an appeal in terms of section 16.5 of the City’s
Credit Control and Debt Collection Policy. This section
provides that
if a dispute logged or declared has not been resolved to the
satisfaction of a customer, the customer may appeal
the decision made
or failure to make a decision to the City Manager (
inter
alia
)
in terms of section 62 of the Local Government: Municipal Systems
Act
[2]
(the “Act”)
[4]
The City Manager did not respond to this
letter and the Trustees now apply to court in this application for
resolution of their
disputes with the City.
The dispute
[5]
The appeal letter addresses a dispute
between the Trustees and the City regarding the billing for
electricity at a property (portion
136 of Erf 6[…] R[…]
6[…]-I[…] (known as E[…] L[…])) (the
“property”) owned
by the Trustees.
[6]
The dispute dates back to July 2010, with
issues arising from incorrect meter readings and rebilling attempts
by the City.
[7]
The appeal letter was headed -
…
APPEAL IN TERMS OF
SECTION 16.5 OF THE CITY OF JOHANNESBURG'S CREDIT CONTROL AND DEBT
COLLECTION POLICY
was addressed to -
The City of Johannesburg
Metropolitan Municipality
Attention: The Legal and
Contracts Unit
and went on to record
that -
4. On or about 26
October 2020 we sent a written complaint, in relation to the below
mentioned issues on our Client's behalf,
in terms of section 16.2 of
the City's Credit Control and Debt Collection Policy. The 21
(Twenty-One) day time period within which
the City should have
resolved same has also come to an end.
5. Our Client finds
the City's failure to resolve the dispute as unsatisfactory. In light
of the City's failure to resolve
the dispute set out below, our
Client therefore declares a dispute in terms of section 16.5 of the
City's Credit Control and Debt
Collection Policy.
[8]
The appeal letter then goes on to set out
in detail, the basis upon which the Trustees dispute the City’s
accounts.
[9]
Despite this letter constituting an appeal
in terms of section 16.5 of the City’s Credit Control and Debt
Collection Policy,
neither the City nor the City Manager answered
this letter.
The legislative framework
and the rights and obligations of the Trustees and the City
[10]
The
legislative framework and the rights and obligations of customers and
municipalities were dealt with by the learned Fisher J,
in Body
Corporate of Willow and Aloe Grove v City of Johannesburg and
another
[3]
.
[11]
I summarise this judgment as it applies in
the current proceedings -
a.
the Act seeks to facilitate a user-friendly
process of dispute resolution which accords with constitutional
precepts of fairness;
b.
it was the Trustees’ obligation to
formulate their complaint sensibly so that the basis on which it
disputes an account is
understandable;
c.
it was the City’s obligation to
engage efficiently and intelligently with the complaint with the
object of coming to a determination
which either resolves it or
allows for further engagement with it in accordance with the
legislation;
d.
the City should have informed the Trustees,
in writing, of its decision. The written information provided to the
Trustees should
have had cogency and should have been directed to the
dispute at hand;
e.
the court’s function is not to
resolve the dispute. Its function is to see to it that the parties’
respective rights
are fairly accommodated within the City’s
internal procedures and the law;
f.
to order the City to rectify the account
(or to prescribe to the City how to do so) would amount to an
impermissible incursion into
the contract of the parties. From an
administrative perspective it would be an impermissible interference
with decisions to be
taken by the City;
g.
it is now compulsory for an aggrieved party
to exhaust the relevant internal remedies unless (in certain limited
circumstances)
exempted from doing so. Any review process, of
necessity, entails an inquiry into whether the internal remedies
available to the
customer in terms of the legislative scheme have
been exhausted;
h.
ultimately, the appeal process under
section 62 of the Act will yield an administrative decision which may
in due course be subject
to a judicial review;
i.
thus, a court may order that the internal
remedies be employed. Whilst these remedies are being exhausted in
good faith, the structure
of the customer/municipality agreement is
such that there can be no lawful termination of services.
Application of the
legislative framework to these proceedings
[12]
Applying these principles to the current
proceedings I make the following observations -
a.
the Trustees have complied with their
obligation to formulate their complaint sensibly so that the basis
upon which they dispute
the City’s accounts, is understandable;
b.
the City’s has not engaged
efficiently and intelligently with the complaint with the object of
coming to a determination which
either resolves it or allows for
further engagement with it in accordance with the legislation;
c.
the City or the City Manager has apparently
not made a decision but if one or other of them has, they have not
informed the Trustees,
in writing, of their decision.
Relief available in these
circumstances
[13]
As outlined above, the court’s
function is not to resolve the dispute. Its function is to see to it
that the parties’
respective rights are fairly accommodated
within the City’s internal procedures and the law. It is the
court’s function
to ensure that the internal remedies be
employed and are followed.
[14]
These internal remedies entail the lodging
of an appeal in accordance with the City’s by-laws - which the
Trustees have done
- and it is the City Manager’s obligation to
engage efficiently and intelligently with the complaint and then
inform the
Trustees, in writing, of its decision - which the City
Manager has not done.
[15]
It follows therefore that this court should
order the City to procure that its City Manager respond to the appeal
letter, to engage
efficiently and intelligently with the Trustees’
complaint and then inform the Trustees, in writing, of the City
Manager’s
decision.
Relief sought by the
Trustees
[16]
The relief sought by the Trustees is to
require the City to comply with its statutory obligations and the
Trustees request an order
giving specific direction to the City as to
how the City should comply with these obligations.
[17]
As I have found, the Trustees are entitled
to an order requiring the City to comply with its statutory
obligations, to wit, to an
order that the City procure that its City
Manager respond to the appeal letter.
[18]
As regards the charges for electricity
which the City includes in accounts to the Trustees, the Trustees
request an order (in summary)
that the City –
a.
reverse all electricity charges on the
Account 221096029 from 2 June 2010 to 7 May 2013;
b.
attend to rebilling the Account 221096029;
c.
reverse all charges as billed in the March
2017 invoice and rebill;
d.
reverse any/all interest, VAT and legal
fees that stand to be reversed from account number 2[…] from
June 2010 to date;
e.
furnish the Trustees with an adjusted
statement of account showing that the above adjustments have been
attended to.
[19]
In my opinion, for this court to make such
an order would be an impermissible interference with decisions to be
taken by the City
and would amount to an impermissible incursion into
the contract between the parties.
Outline of the litigation
[20]
As I have stated above, in the
circumstances of this dispute, it is not the court’s function,
at this stage, to resolve the
dispute between the parties. In order
to give context to this litigation and particularly to give context
to the points
in limine
raised by the parties (which are dealt with below), it is useful to
summarize broadly what occurred -
a.
the City historically billed the Trustees
for their electricity consumption based on meter number 2[…]
("the Old Meter");
b.
meter number 2[…] was replaced by
the City by meter number 9[…] ("the New Meter") on 7
June 2013;
c.
the Old Meter's daily average consumption
was approximately five times the daily average consumption of the New
Meter;
d.
the Trustees’ position is that when a
meter has become faulty and is not giving accurate readings, and a
new meter is installed,
then the daily average consumption of the new
and correctly functioning meter should be used to replace the
incorrect data of the
faulty meter and thus calculate the charges
which should have been levied. This is done in accordance with the
City's Electricity
By-Laws and the industry standards;
e.
the Trustees initially proposed three
different methods of calculation to arrive at an amount either due to
or by the City or by
or to the Trustees. In their replying affidavit
the Trustees accepted the New Meter’s readings as being
correct;
f.
if the method outlined in clause [20]d
is applied, using the New Meter’s average
daily consumption applied over the period that the Old Meter was
being used to record
average daily consumption, then the City
overcharged the Trustees by an amount of R21,629,949.85.
g.
the Trustees made multiple attempts to
resolve the issue, including logging queries and sending written
complaints. The City failed
to resolve the dispute within the
specified time periods or at all;
h.
the Trustees have been paying the City the
current charges in accordance with the New Meter’s readings.
There is no dispute
with regard to the current charges, but rather
only the charges that were billed using the readings from the Old
Meter;
[21]
The history of the proceedings before this
court may be summarised as follows -
a.
this application was served on the City on
4 June 2021 and the City delivered a notice of intention to oppose on
10 June 2021;
b.
when the City failed to deliver the
answering affidavit, the application was set down on the unopposed
roll on 5 October 2022;
c.
on 5 October 2022, the matter was removed
from the roll with the City to pay the wasted costs. The matter was
removed in order for
the parties to attempt settlement;
d.
the parties were unable to reach agreement
on settlement and the matter was again set down on the unopposed roll
for 21 February
2023;
e.
the City delivered its answering affidavit
on 20 February 2023. The answering affidavit includes an “application
for condonation”;
f.
given the opposition and the late filing of
the answering affidavit, on 21 February 2023 Wanless AJ postponed the
matter to 23 February
2023 for submissions from both parties;
g.
on 23 February 2023, both parties (having
delivered practice notes and referred to various case law) made
submissions in respect
of condonation of the late delivery of the
answering affidavit, as well as costs;
h.
on 23 February 2023, Wanless AJ granted an
order directing that the application be removed from the unopposed
roll, the matter shall
be dealt with in the ordinary course, with the
City to pay the wasted costs;
i.
on 8 March 2023, the Trustees delivered
their replying affidavit;
j.
in February 2023 the City served a
pretermination notice and the Trustees engaged with the City
regarding a resolution of the issue;
k.
the City agreed that electricity supply
would not be terminated before 30 June 2023;
l.
on 16 August 2023 the City terminated
electricity supply to the property with no additional notice and the
Trustees instituted urgent
proceedings against the City to have the
electricity supply restored;
m.
the matter came before Yacoob J on 18
August 2023 who granted an order inter alia to the effect that -
i.
the disconnection of electricity supply to
the property on 16 August 2023 was unlawful;
ii.
the City was ordered to restore the
electricity supply to the property within 2 hours of the order being
handed down;
iii.
the Trustees were directed to remain up to
date with payment of the current charges for account number 2[…]
in accordance
with what was billed as current charges on the City's
invoices in respect of the property;
iv.
for as long as the Trustees remained up to
date with payments of the current charges, the City was interdicted
from disconnecting
/ terminating, or causing or instructing the
disconnection / termination of the electricity or water supply of the
property, for
any reason whatsoever, at any time after the handing
down of the order;
v.
in the event that the Trustees did not pay
the current amount on a monthly basis and in terms of what was
invoiced as the current
amount on the City's invoices, then the City
must serve a new pretermination notice in respect of the property
before terminating
services supplying the property;
vi.
any termination in respect of the
historical debt was interdicted pending finalisation of the dispute
under case number 2[…]
(the current matter);
n.
on 15 September 2023, the Trustees
delivered their Heads of Argument. The City failed to deliver its
Heads of Argument within the
prescribed time period, and the Trustees
therefore brought an application to compel delivery;
o.
the Trustees applied for a date for hearing
the application to compel and were assigned 19 February 2024. The
matter was removed
from the roll of 19 February 2024;
p.
on 19 March 2024, the City served an
application to supplement its papers. This was not opposed by the
Trustees;
q.
on 18 April 2024, the Trustees served their
supplementary replying affidavit;
r.
the Trustees served their heads of argument
for these proceedings on 20 August 2024;
s.
the City served its heads of argument on 16
February 2025 (2 days before this hearing);
t.
the hearing of this matter was set down for
hearing on 18 February 2025 and took place on that day.
Condonation for the late
filing of the City’s answering affidavit
[22]
The answering affidavit was delivered on 20
February 2023 and it is common cause that it was delivered many
months late. The City
did not apply formally for condonation but did
make some submissions in this regard in the answering affidavit
itself. The City
made no attempt to comply with the provisions of
Rule 27.
[23]
The
Constitutional Court
[4]
has held
that –
It is now trite that
condonation cannot be had for the mere asking. A party seeking
condonation must make out a case entitling it
to the court's
indulgence. It must show sufficient cause. This requires a party to
give a full explanation for the non-compliance
with the rules or
court's directions. Of great significance, the explanation must be
reasonable enough to excuse the default.
[24]
While
condonation may be granted even in the absence of a substantive
application
[5]
, the City’s
submissions in support of its application for condonation fall far
short of these requirements.
[25]
The
standard for considering an application for condonation revolves
around the concept of "interests of justice." This
concept
is flexible and cannot be precisely defined. It encompasses several
factors, including the extent and cause of the delay
and the
reasonableness of the explanation for the delay. Ultimately,
determining what is in the interests of justice requires considering
all relevant factors, though it is not necessarily limited to those
mentioned. The specific circumstances of each case will dictate
which
factors are pertinent
[6]
.
[26]
In this matter, I take into account that
the Trustees have had an opportunity to and have dealt
comprehensively with the answering
affidavit in their replying
affidavit as well as in their heads of argument. I also take into
account that if I were to refuse
condonation this may result in
further delays to the finalisation of this matter which has already
been unacceptably delayed.
[27]
I therefore condone the late filing by the
City of the answering affidavit.
[28]
The
City is not an ordinary litigant. It is an organ of state. Section
165(4) of our Constitution
[7]
instructs
organs of state to assist courts to ensure the courts’
accessibility and effectiveness.
[29]
As
stated in Grootboom v the National Prosecuting Authority
[8]
–
One gets the impression
that we have reached a stage where litigants and lawyers disregard
the rules and directions issued by the
court with monotonous
regularity. In many instances very flimsy explanations are proffered.
In others there is no explanation at
all. The prejudice caused to the
court is self-evident. A message must be sent to litigants that the
rules and the court's directions
cannot be disregarded with impunity
[30]
The
conduct of the City’s representatives in this litigation bears
a striking similarity to their conduct described in Millu
v City of
Johannesburg Metropolitan Municipality and another
[9]
.
But here there has been an intervening judgment of Wanless AJ on 23
February 2023 and the City in this case, is not in defiance
of any
court order. The Trustees in their heads of argument state that
Wanless AJ made no finding in respect of whether or not
the late
filing of the answering affidavit is condoned or whether an
application for condonation by the City in that respect is
necessary.
The City does not deal with this aspect.
[31]
Nevertheless, the City and its
representatives have inexcusably disregarded the rules of court and I
am therefore minded to grant
a punitive order for costs against the
City on this basis alone.
Condonation for the late
filing of the City’s heads of argument
[32]
The Trustees filed their heads of argument
and practice note for these proceedings on 20 August 2024 and the
City filed its heads
of argument and practice note on 16 February
2025 (2 days before the hearing).
[33]
In terms of the Practice Manual for this
division, the City should have delivered its heads of argument and a
practice note within
10 days from 20 August 2024 being 3 September
2024.
[34]
In the City’s heads of argument
counsel submits –
At the outset, I wish to
point out that these heads are delivered late due to the
administrative issues caused by the change of
attorneys dealing with
the matter in the Municipality’s attorneys of record and the
Municipality together with its representatives
profusely apologise
for the inconvenience caused
[35]
In this regard, what I have said in
paragraph [30]
above is pertinent. It
is difficult to understand why an administrative issue caused by the
change of attorneys dealing with the
matter in the Municipality’s
attorneys of record could cause a delay of more than 5 months to the
filing of these heads.
No other explanation is put forward.
[36]
The City and its representatives have
inexcusably disregarded the terms of the Practice Manual.
City’s
supplementary answering affidavit
[37]
The City applied to file a supplementary
answering affidavit in order, according to the City, to introduce
“
facts … material and
relevant and necessary to be disclosed in order for this honourable
court to be able to adjudicate the
issues in the present matter
”.
[38]
The “material and relevant”
facts which the City introduces relate -
a.
firstly, to the previous proceedings before
and an order of Yacoob J which I have referred to above; and
b.
secondly, to the ‘fact’ that
Yacoob J advised the Trustees to change the name of the City’s
account for the property.
[39]
The rest of the affidavit consists of
argument or repeats what has been dealt with before by the City in
its answering affidavit.
[40]
As regards the first issue, the City quotes
from the order –
for as long as the
Applicants remain up to date with payment of
the current charges
,
the Respondent is hereby interdicted from disconnecting the services
[41]
Having quoted from the order, the City
states –
It follows therefore that
the Court accepted that the billing on the current meter discussed
above is correct and that the Applicant
accepted the outcomes of the
court and they are currently paying as billed by the Municipality
[42]
The City then goes on to submit -
It follows therefore that
there is not cogent ground in law on why the Applicant should not be
ordered to
pay the full amount
on the same charges billed on
actual reading of the consumption of electricity in the same meter
number
and
Judge Yacoob …
then ordered the Applicants to pay the full amount.
[43]
These submissions are patently incorrect.
Yacoob J ordered that the Trustees pay the current charges on
the account and not
the full amount.
[44]
As regards the second issue relating to
Yacoob J’s so-called advice that the Trustees change the name
on the City’s
account for the property, this is also patently
incorrect.
[45]
The only mention of the name on the account
in the judgment is in the first paragraph of that judgment. The
learned judge gave no
advice nor even mentioned changing the name on
the account. In the first paragraph the learned judge stated –
The applicants of (sic) a
trustees of a trust which is consuming electricity provided by the
respondents although the account the
with (sic) the respondents is
not in the name of the trust, a court dispute is pending between the
parties dealing with amounts
which have been debited on the account,
is pending before this Court
[46]
There is no mention of the actual name on
the account at all in the order issued.
[47]
As an aside on the issue of the name on the
account, the City is adamant that it is up to the Trustees to have
the name on the account
changed. If the consumer agreement, as
alleged by the City, is in the name of Elphin Lodge Rand Aid
Association (which is just
a name and not a legal person), then it
would be sensible for the City to have the obligation to initiate a
process to correct
the name on the account rather than the Trustees
being obliged to do so. It is not clear why the City says it is the
Trustees’
obligation to have the name changed. If the consumer
account was being transferred from one person to another (and not
just a change
in name), then in that case would seem sensible for the
consumer taking over the account, to take the initiative in this
regard.
This is not the situation here.
City’s submissions
– locus standi
[48]
The City alleges in its answering affidavit
that the Trustees do not have l
ocus
standi
to bring this application. Their
reason for saying so is that the account number 2[…] is in the
name of Elphin Lodge Rand
Aid Association (which for convenience I
will abbreviate to "ELRAA"). The deponent to the founding
affidavit has explained
that Rand Aid is the founding donor of the
trust and that Elphin Lodge is the name of the building.
[49]
The City goes on to say that it is evident
that the Trustees appear to be the owner of the property, but, the
consumer agreement
was concluded between the ELRAA and the City and
not the Trustees.
[50]
The City goes on to conclude that, on the
common cause facts provided in the founding affidavit, the Trustees
do not have the necessary
locus standi
,
to bring the present application relying on the consumer agreement
concluded between the ELRAA and the City.
[51]
This is a very strange submission. It is
not disputed that ELRAA is the combination of the name of the
building and the name of
the founder of the trust. ELRAA is neither a
juristic nor a natural person. The City does not attach a copy of the
consumer agreement
to support its argument and no explanation is
given as to why it is not attached. If the alleged “consumer
agreement”
exists, the counter-party to that agreement would,
according to the City, be a non-existent person. And ELRAA, as
neither a juristic
nor a natural person could certainly not institute
any legal proceedings of any nature.
[52]
In
any event, the Trustees do not rely on the consumer agreement for
locus
standi
.
The Trustees are the owner of the property and, as such, are liable
to the City
[10]
for services
provided to the property.
[53]
The
City referred, in its Heads of Argument, to Tarica and Another v City
of Johannesburg Metropolitan Municipality
[11]
.
In that case Mahon AJ held that a municipality has the right to
recover outstanding amounts from a property owner even if the
account
is held in the name of another party. In such a case the property
owner must then have the right to defend any proceedings
brought by a
municipality and must necessarily have the
locus
standi
to
do so. It does not matter that the account is held in a different
name to that of the property owner.
[54]
The
Trustees thus have a direct and substantial interest in the rights
and obligations which are the subject of this litigation
[12]
and have
locus
standi
to
institute these proceedings.
City’s submissions
– prescription
[55]
In paragraphs 24 and 25 of the answering
affidavit, the City states –
24.
On the Applicants deponent of the founding affidavit own version, the
present meter is clearly reading
properly, and it has been doing so,
since the date of installation, save to note that the meter reads
less than the meter which
was on the property from 2010 to 2013.
25.
From the above, it follows therefore that:
25.1 in
respect of the electricity supply services, not only is the
Municipality by-laws provide for a period
of 36 months,
25.1.1 but the
Prescription Act No 68 of 19 69, ("the Prescription Act")
is applicable, thus, the Applicants cannot demand
any correction on
the electricity billing for a period more than 36 months.
25.2 In
respect of the interdict, the Applicants make out no case whatsoever,
there is no basis, upon which this
Honourable Court could grant a
competent order preventing the Municipality from implementing its own
by-laws.
[56]
It is not at all clear what these
paragraphs mean. For example, it is not clear which by-laws the City
is referring to when it says
they “
provide
for a period of 36 months
”.
[57]
In argument the City submitted –
46.3
That in any event, even if there was an error which is denied, the
Municipality cannot reverse any services beyond three years
or 36
months.
46.3.1 In terms of the
Prescription Act No 68 of 19 69, (“the Prescription Act”)
is applicable, thus, the Applicants
cannot demand any correction on
the electricity billing for a period more than 36 months.
46.4 In the event where
there is an error in relation to the calibration, then the
Municipality may not go back 6 months, in this
regard, the
Municipality relies on
46.4.1 section 9(7)
Greater Johannesburg Metropolitan Council Notice 1610 of 1999
provides that:
“
When
it appears that a consumer has not been charged or incorrectly
charged for electricity due to the application of an incorrect
charge
or on any other grounds other than inaccuracy of a meter, the council
shall conduct such investigations, enquiries and tests
as it deems
necessary and shall, if satisfied that the consumer should have been
charged or has been incorrectly charged, adjust
the account
according: Provided that no such adjustment shall be made in respect
of a period in excess of 6 months prior to the
date on which the
incorrect charge was observed or the council was notified of such
incorrect charge by the consumer. Where such
consumer is found to
have been correctly charged, the consumer shall be charged the cost
of conducting such investigations, enquiries
and tests.”
47. In reply to the above
contentions above, the Applicants contend that:
47.1 The Applicants place
no answer or response to the prescription contention and
47.2 In respect of
section 9 (7) the Applicant contends that the section is not
applicable as the Applicant’s case is based
on the accuracy of
the meter. [Para 65 of Reply].
[58]
The Trustees’ response quoted by the
City in paragraph 47 above is clearly correct. This section 9(7) does
not apply because
the Trustees’ case is that the Old Meter was
inaccurate. The City goes on to argue -
48. In respect of
prescription, this Court in a similar matter of Douglas and Another v
City Of Johannesburg and Others (2021/36955)
[2023] ZAGPJHC 1263 (6
November 2023) relying on the Supreme Court of Appeal judgment found
that:
“
[73]
The effect of the upholding of the prescription plea is that all the
claims for the reversal of charges emanating from a period
before
July 2018 have prescribed. The further effect of this would be that a
portion of the claim made in prayer 1.1 in the amount
of R125,682.30
has prescribed; the claim made for the reversal of duplicate property
rates charges in prayer 1.2 has prescribed;
the claim to reverse all
property rates charges according to prayer 1.5 has prescribed; the
reversal of all duplicate refuse charges
according to prayer 1.6 has
prescribed; the claim for the reversal of all water availability and
sewerage availability charges
according to prayer 1.7 has partially
prescribed; the interest claim according to prayer 1.8 has partially
prescribed; the claim
for the reversal of all property rates charges
according to prayer 1.10 has prescribed; the claim for the reversal
of all duplicate
refuse charges according to prayer 1.11 has
prescribed; the claim for the reversal of all water availability and
sewerage availability
charges according to prayer 1.12 has partially
prescribed and the claim for interest according to prayer 1.13 has
partially prescribed.”
49. It follows therefore
that in respect of the electricity supplied by the Municipality to
the Applicants property, the claim thereto
is subject to the three
year prescription period.
[59]
In the case of Douglas and Another v City
of Johannesburg, the learned judge Strydom J found –
…
[64] In my view,
what is claimed amounts to a debt for purposes of section 11 of the
Prescription Act. A reversal of an amount
on an account here will
either reduce the amount payable or extinguish the debt if the
account was in arrears or, if fully paid
up, would leave a credit.
This, in my view, amounts to a claim for the payment of money.
[60]
The Douglas case is distinguishable because
the learned judge in that case found that the relief claimed amounted
to a claim for
the payment of money by the municipality to the owners
of a property.
[61]
In
this matter, there is no claim by the Trustees for payment of money
from the City. On the contrary, the City claims that the
Trustees owe
it money for electricity charges. These charges have been disputed by
the Trustees which they resist by demanding
proper accounting from
the City. The claim for a proper account is not a debt under the
Prescription Act and cannot prescribe.
If anything, it is the City’s
claim against the Trustees for payment of money which has
prescribed
[13]
.
City’s submission –
interdict
[62]
As regards the City’s submissions in
respect of the interdict, it is said that the Trustees make out no
case and there is
no basis upon which this Honourable Court could
grant a competent order preventing the municipality from implementing
its own by-laws.
As I understand it, the Trustees do not ask for an
order preventing the City from implementing its own by-laws. On the
contrary,
the Trustees ask for an order that the City comply with its
by-laws.
[63]
If,
by this submission, it is meant that the Trustees are attempting to
prevent the City from collecting money due to it, that,
in my view,
is not correct. The Trustees state that they are complying with
Yacoob J’s order (see paragraph [21]l
above)
that they remain up to date with payment of the current charges for
account number 2[…] in accordance with what is
billed as
current charges on the City's invoices in respect of the property.
The City does not deny that the Trustees keep up to
date with the
payment of the current charges
[14]
.
[64]
It
is correct that the Trustees are not paying the amounts claimed by
the City for electricity consumed as measured by the Old Meter.
This
the Trustees are entitled to do because they have disputed the
charges based on the Old Meter readings. Section 102 of the
Local
Government: Municipal Systems Act
[15]
specifically
prohibits a municipality from implementing any debt collection and
credit control measures where there is a dispute
between the
municipality and any person liable for payments to the municipality.
Trust’s submissions
– deponent’s authority to depose
[65]
The Trustees make the following submission
regarding the authority of the deponent to the City's Answering
Affidavit -
a.
the deponent to this affidavit was Mr
Tuwani Ngwana who stated that he is employed as a Legal Advisor in
the City's Legal Department;
b.
the deponent claimed that he is authorised
to depose to the Founding Affidavit on behalf of the City, yet he
failed to attach proof
of that fact, or a resolution directing and
empowering him with this authority;
c.
the City is a municipality, established in
terms of the
Local Government: Municipal Systems Act, No. 32 of 2000
,
and as such, the governing figure behind a municipality is its
municipal council, which performs its actions through the municipal
manager;
d.
the deponent is neither the municipal
manager, nor shown to be a member of the municipal council, and as
such, he has no authority
to depose to the answering affidavit that
the City's application rests upon. The answering affidavit is fatally
flawed from the
outset and should be dismissed outright for lack of
authorisation.
[66]
In
Ganes v Telecom Namibia Ltd
[16]
it
was held –
…
it
is irrelevant whether [the deponent] had been authorised to depose to
the founding affidavit. The deponent to an affidavit in
motion
proceedings need not be authorised by the party concerned to depose
to the affidavit. It is the institution of the proceedings
and the
prosecution thereof which must be authorised. In the present case the
proceedings were instituted and prosecuted by a firm
of attorneys
purporting to act on behalf of the respondent. In an affidavit filed
together with the notice of motion a Mr Kurz
stated that he was a
director in the firm of attorneys acting on behalf of the respondent
and that such firm of attorneys was duly
appointed to represent the
respondent. That statement has not been challenged by the appellants.
It must, therefore, be accepted
that the institution of the
proceedings was duly authorised. In any event,
Rule 7
provides a
procedure to be followed by a respondent who wishes to challenge the
authority of an attorney who instituted motion
proceedings on behalf
of an applicant.
[67]
The Trustees’ submission that,
because the deponent was not authorised to depose the answering
affidavit, the City's defence
(which rested on that affidavit) is
fatally flawed, is, in my view, not correct. In short, the deponent
to an affidavit does not
need to be authorised to depose to an
affidavit.
[68]
What does need to be authorised is the
City’s opposition to the Trustees’ application. There is
no resolution attached
to the affidavit authorising the deponent to
oppose the application, but the City’s attorneys did file a
notice of intention
to oppose on behalf of the City. In this notice
the attorneys state that the City gives notice of its intention to
oppose the matter
and appoints the address of the attorneys as the
address and email at which it will accept service of all legal
documents in this
matter.
[69]
In my opinion then, the authority to oppose
the Trustees’ application rested with the City’s
attorneys, who did oppose
the application on the City’s behalf.
If the Trustees wished to challenge that authority, they should have
used the procedure
provided in
Rule 7
to do so. The Trustees did not
do so with the result that the City’s opposition and the
deponent’s answering affidavit
(condonation having been
granted) are, in my opinion, properly before this court.
Costs
[70]
I have already dealt with the City’s
cavalier attitude to the rules of court in paragraphs [28]
to [30]
above. In
my view that alone is sufficient to justify a punitive order as to
costs. Added to that must be the City’s late
filing of its
heads of argument.
[71]
The
City is an organ of state. As was stated by Sutherland DJP in Millu v
City of Johannesburg Metropolitan Municipality and another
[17]
-
…
Organs
of state are expected to behave honourably. Apparently, the City
expects that it can at the same time disrespect the fundamentals
of
the litigation system and continue with impunity to participate in
that litigation system to protect its rights. Such behaviour
cannot
be tolerated precisely because it is calculated to abuse the process
of the court.
[72]
The
supine attitude of the City in not responding to correspondence and
not resolving this dispute expeditiously is wholly unacceptable.
The
City did not investigate the Trustees’ query on the account and
did not provide the Trustees with a written decision.
As was stated
by de Villiers AJ
[18]
-
There is no doubt that a
municipality has a higher duty as a litigant. It has a duty to
address the real issues raised by a ratepayer,
honestly, fairly, and
properly.
[73]
I therefore will order that the City pays
the Trustees’ costs of this application as between attorney and
client.
Order
A.
The respondent is ordered -
a.
in compliance with
section 62
of the
Local
Government: Municipal Systems Act No. 32 of 2000
to procure that the
respondent’s City Manager -
i.consider
the appeal lodged by the applicant, such appeal being contained in
the document dated 19 January 2021 and attached as
annexure WP16 to
the applicant’s founding affidavit;
ii.confirm,
vary or revoke the decision;
iii.commence
with the appeal within six weeks of the date of handing down this
judgment;
iv.decide
the appeal within a reasonable period; and
v.notify
the applicant in writing of his or her decision;
b.
based on the decision of the City Manager,
the respondent shall revise the applicant’s statement of
account and shall deliver
to the applicant an adjusted statement of
account with suitable notations and explanations such that it is
possible for the applicant
to check that the City Manager’s
decision has been correctly incorporated into the statement.
B.
Should the applicants -
a.
dispute the decision of the City Manager
under paragraph A(a); or
b.
dispute the statement of account provided
by the respondent under paragraph A(b);
c.
consider that either the respondent or the
City Manager have otherwise failed to comply with the orders made
under paragraph A above;
the applicants are given
leave to apply to this court on the same papers duly supplemented (if
necessary) –
i.to
review the City Manager’s decision in terms of the Promotion of
Administrative Justice Act or in terms of any other applicable
law;
ii.to
correct the statement of account provided by the respondent;
iii.to
apply for appropriate relief should the respondent be found to have
failed to comply with the orders made under paragraph
A above.
C.
The order of Yacoob J made on 18 August
2023 under case number 081420/2023 shall remain of full force and
effect provided that,
for the purposes paragraph 8 of that order, the
dispute under case number 2021-26601 (being these proceedings), shall
only be regarded
as finalised –
a.
when and if the applicants notify the
respondent in writing that they regard these proceedings as
finalised; or
b.
if the respondent has complied with
paragraphs A(a) and A(b) of this order and the applicants have failed
to initiate, review or
other proceedings under paragraph B of this
order within 21 days of delivery by the respondent of the adjusted
statement of account
under paragraph A(b) of this order; or
c.
if the applicants have initiated review or
other proceedings under paragraph B of this order within the 21 day
period, when final
judgment, not subject to appeal or further appeal,
has been delivered in such review or other proceedings.
D.
The respondent is to pay the costs of this
application as between attorney and client.
A MITCHELL
Acting Judge of the High
Court
This judgment is handed
down electronically by circulation to the parties or their legal
representatives by email, by uploading
it to the electronic file of
this matter on Caselines, and by publication of the judgment to the
South African Legal Information
Institute. The date for hand-down is
deemed to be 7 April 2025.
HEARD
ON:
18 February 2025
DECIDED ON:
7 April 2025
For
Applicants:
Adv. L de Wet
083 987
6501
dewet.litigation@gmail.com
Attorneys
HBGSchindlers
Attorneys
gohl@hbgschindlers.com
011
568 8532
For
Respondent:
Adv. Emmanuel Sithole
076
1629 605
esithole@law.co.za
Attorneys
Madhlopa
& Thenga Inc.
lucky@madhlopathenga.co.za
087
135 5672
[1]
No. 57 of 1988
[2]
No 32 of 2000
[3]
2023 JDR 4762 (GJ)
[4]
Grootboom v National Prosecuting Authority
[2013] ZACC 37
;
2014 (2)
SA 68
(CC)
[5]
McGill v Vlakplaats Brickworks (Pty) Ltd 1981 (1) SA 637 (W)
[6]
Grootboom v National Prosecuting Authority above
[7]
Constitution of the Republic of South Africa, 1996
[8]
2013]
ZACC 37; 2014 (2) SA 68 (CC)
[9]
2024
JDR 1329 (GJ)
[10]
Mkontwana v Nelson Mandela Metropolitan Municipality and Another;
Bissett and Others v Buffalo City Municipality and Others;
Transfer
Rights Action Campaign and Others v MEC, Local Government and
Housing, Gauteng, and Others (KwaZulu-Natal Law Society
and Msunduzi
Municipality as Amici Curiae)
2005 (1) SA 530
(CC); PA Pearson (Pty)
Ltd v Ethekwini Municipality and Others 2017 (6) SA 82 (SCA)
[11]
(2023/044543)
[2025] ZAGPJHC 46 (27 January 2025)
[12]
Kommissaries
van Binnelandse Inkomste v Van de Heever 1990 (3) SA 1051 (SCA)
[13]
see Tarica and Another v City of Johannesburg Metropolitan
Municipality above and Jordaan and Others v City of Tshwane
Metropolitan
Municipality and Others
2017 (6) SA 287
(CC)
[14]
The City says in its Heads of Argument (paragraph 6.1.1) that Yacoob
J found that the Trust is to pay the full amount on the
tax invoice
issued by the City. That is not correct. Yacoob J ordered the Trust
to remain up to date with payment of the
current
charges for account number 2[…] in accordance with what is
billed as
current
charges on the City's invoices,
[15]
No. 32 of 2000
[16]
2004 (3) SA 615 (SCA)
[17]
above
[18]
Jordaan and Others v City of Tshwane Metropolitan Municipality and
Others
2017 (6) SA 287
(CC)
sino noindex
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