Case Law[2025] ZAGPJHC 417South Africa
New Model Private College CC v City of Johannesburg Metropolitan Municipality (2025/050470) [2025] ZAGPJHC 417 (25 April 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
25 April 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## New Model Private College CC v City of Johannesburg Metropolitan Municipality (2025/050470) [2025] ZAGPJHC 417 (25 April 2025)
New Model Private College CC v City of Johannesburg Metropolitan Municipality (2025/050470) [2025] ZAGPJHC 417 (25 April 2025)
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sino date 25 April 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 2025 – 050470
(1)
REPORTABLE:
YES
/ NO
(2)
OF INTEREST TO OTHER JUDGES:
YES
/NO
(3)
REVISED: NO
25 April 2025
In
the matter between:
NEW
MODEL PRIVATE COLLEGE CC
Applicant
and
CITY
OF JOHANNESBURG METROPOLITAN
MUNICIPALITY
First Respondent
CITY
POWER (SOC) LIMITED
Second Respondent
JUDGMENT
Noko, J.
Introduction
[1]
The applicant instituted an urgent application for an order directing
the respondents to immediately restore electricity
supply to the
applicant’s property situated at […] S[…] Street,
D[…], Johannesburg, (Erf 1[…],
D[…] Township)
(“property”). The first respondent is opposing the
application and second respondent has delivered
a notice to abide
with the order of court. Reference to respondent in this
lis
will refer to the first respondent.
The
parties
[2]
The applicant is New Model Private College NPC, a non-profit company,
duly incorporated in terms of the laws of the Republic
of South
Africa with its business address at […] S[…] Street,
D[…], Johannesburg.
[3]
The first
respondent is City of Johannesburg Metropolitan Municipality duly
established in terms of the Local Government: Municipal
Structures
Act
[1]
carrying its business at
61 Jorissen street, Johannesburg.
[4]
The second respondent is City Power (SOC) Ltd, a state owned company
incorporated in terms of the laws of the Republic
of South Africa,
with its address situated at 4[…] H[…] Road, R[…],
Johannesburg.
[5]
The applicant has incorrectly identified the second respondent as a
private company and I guess this should have been
an error.
Background.
[6]
The
following background is common cause between the parties. The
respondent supplies services to the applicant which includes
provision of electricity.
[2]
The
applicant is the registered owner of the property and has let it to a
school known as Key to Succees School.
[3]
[7]
The respondent terminated supply of electricity to the applicant’s
premises on 27 March 2025 as a result of applicant’s
failure to
pay for the charges relating electricity, water & sanitation and
property rates. The total amount due is R2 710 567.66
(Two
Million Seven Hundred, Ten Thousand Five Hundred and Sixty Seven rand
and Sixty six cents.
[8]
The applicant then launched these proceedings to interdict the
respondent to reinstate the supply of electricity.
Parties’
version and submissions.
Urgency
[9]
The applicant contends that the termination was effected on Thursday,
27 March 2025 and immediately thereafter the applicant’s
board
of directors convened a meeting where a resolution was taken to
launch these urgent application. The applicant appointed
a firm of
attorneys and consulted with counsel in the following week and
subsequently issued the application on 10 April 2025.
In the
circumstances the applicant submits that the application could not
have been enrolled earlier and the aforegoing is a comprehensive
account of what transpired before the papers were launched. In
addition, applicant argues, if the normal court process is followed
no substantial redress will be attained.
[10]
The respondent on the other hand contends that the applicant took a
laissez faire
posture and failed to attend to the matter with
the requisite urgency. In addition, there is a confusion in how the
applicant accounted
for the activities since the supply of
electricity was terminated. The applicant’s papers state that
the termination was
on 25 March 2025 and in another instance states
that it was terminated on 26 March 2025. There is an indication that
the board
took a resolution on 27 March 2025. According to the
respondent the applicant waited for 16 days before the application
could be
heard. In view of the confusion the court is therefore not
properly appraised as to what transpired and should find that there
is no urgency alternatively that urgency was self-created.
[11]
The counsel for the applicant contends, in reply, that there is an
error with regard to the date on which the termination
took place and
the court should get a cue from reference to Thursday as the correct
day on which the supply of the electricity
was terminated by the
respondent.
[12]
It is noted, the applicant’s counsel continued, that maybe the
application could have been enrolled on the second
week of the April
2025, but having regard to the circumstances of this case, the fact
that there are children indirectly affected
and the unlawful
termination in continuing, the court should not over emphasise the
dates and conclude that the delay is inordinate.
In any event the
respondent confirms that the termination took place on Thursday, 27
March 2025.
[13]
I had regard to the submissions by both parties and find that the
application satisfies the requirements for urgency
and deserves the
attention of the urgent court.
Merits
[14]
The
applicant contended that there are children who are attending school
and their rights are being infringed by the termination
of the supply
of the electricity which was not preceded by serving a
pre-termination notice in accordance with judgment of the
Constitutional Court in
Joseph
[4]
.
In terms of the said judgment the respondent would be required to
serve all the parties whose rights would be affected by the
termination of the supply of the electricity. The applicant’s
counsel impressed on the court that since the High Court is
the upper
guardian of the children it should direct the respondent to reinstate
the electricity supply as the children’s
rights are negatively
affected by the unlawful termination of the supply of the
electricity.
[15]
The second contention advanced by the applicant is that ordinarily
the respondent is not entitled to implement debt collection
process
where there is a dispute which has been declared in relation to the
amounts charged by the respondent. To this end there
is a
lis
which is pending in this Court with regard to the disputed billing
and as such the termination of the supply of electricity
is
unlawful and should be set aside. The applicant stated further that
the applicant has demonstrated its own
bona fides
and has been
making payments, though under protest, and this assertion has not
been disputed by the respondent in its answering
affidavit.
[16]
Lastly, the applicant contended that the evidence presented satisfies
the requirements for
mandament van spolie
as there was
possession and same was terminated by the respondent unlawfully.
[17]
The respondent on the other hand contended that on proper reading of
the
Joseph
’s judgment it would be sufficient if the
respondent can demonstrate that the pre-termination notice was
delivered at the
property and not necessarily on each and every child
at the school. The pre-termination notice was delivered to the
secretary at
the school who acknowledged receipt and replied that to
her understanding there should not be termination as there is a
pending
legal matter. The respondent’s counsel contended
further that the
Joseph
’s judgment is distinguishable as
the parties in that case were paying customers whereas in this case
the school is not paying
any monies to the respondent.
[18]
The counsel for the respondent argued that the pending litigation
referred to by the applicant’s counsel relates
to the dispute
that the applicant is being billed for the electricity on the minimum
demand tariff basis whereas in fact it is
on a business tariff. As
such the argument underpinning the submission that there is a cogent
dispute is unsustainable. However,
the counsel conceded that this
argument relates to an issue which is pending in before another court
and I cannot not make any
pronouncement on the merits of that
dispute.
[19]
Counsel for the respondent further stated that the dispute pending
elsewhere relates only to the charges for the electricity
whereas the
amount which appears in the pre-termination notice includes the
charges for other services. In response to my view
that the
pre-termination notice is not correct as it also relates to the
disputed the amount, he persisted that the bulk of the
amount
appearing in the notice is not for the electricity and to this end
the court should overlook charges for other services
and consider the
notice to be valid. In any event, the respondent argues, it may be
unreasonable to expect this Court to consider
what the notice
generally entails and to further interrogate the certificate of
balance including having to look into at the meter
readings. To this
end, he argued, the court should only consider whether there is a
notice or not and not the contents of the notice.
I must mention that
this argument is untenable.
[20]
During the discussion with the court the counsel for the applicant
acknowledged that indeed there is an amount which
is due and payable
for services apart from the electricity charges and the respondent
would ordinarily be entitled to terminate
for that amount. The
respondent on the other hand, accepted that the right to terminate
should not include the amount due for the
electricity charge which is
included in the pre-termination notice. To this end the parties were
amenable to an order in terms
of which the applicant be granted a
grace period to settle the corrected amount which exclude the amount
due for electricity charge.
In the meantime, the respondent should
reinstate the supply of electricity and if no settlement is made then
termination would
be reinstated.
[21]
The parties further agreed that settlement of the outstanding charges
would have to be in accordance with the polices
of the respondent.
The respondent’s policy provides that if the applicant
wishes to pay the arrears over a period of
time such arrangement
would have to be preceded by payment of 30% or 50% of the arrear
amount and the balance to be payable over
a period of time.
Legal
principles and analysis.
[22]
The counsel for the applicant contended that on proper reading of
Joseph
’s judgment the respondent is required to serve
each child at the school. Reference was made of paragraph 75 of the
judgment
where Skweyiya J stated that “… that
pre-termination notice must be send
to all persons
whose
rights may be materially and adversely affected by the termination of
a municipal services.” As was alluded to by the
respondent it
would be overly extreme to interpret this paragraph in such a way
that each child should be served with a pre-termination
notice. The
interpretation by the respondent is sustainable having regard to the
fact that in
Joseph
the court considered service of a notice
to the owner of the property and excluded the tenants or occupiers of
the property. In
this instance service was also effected at the
tenant (school) and this was sufficient notice to the community of
the school.
[23]
The
provisions of Section 102 (2) of the Local Government: Municipal
System Act
[5]
need not be
discussed in detail except to state that it is axiomatic that the
respondent cannot implement debt collection measures
in respect of
amount due for which a dispute has been raised by the customer.
[24]
There was a
reference by the applicant of the common law remedy of spoliation and
referred to the Constitutional Court in
Ngqukumba
[6]
where
it was stated that the respondent would have to “... restore
before all else of unlawfully deprived possession to the
possessor.”
The contention that the applicant would fail in its application as it
does not satisfy the requirements for
mandament
van spolie
appears to be misplaced. Whilst it is correct that one may not claim
restoration of the electricity supply if such supply is not
incidental to the possession
[7]
the applicant’s relief sought would not have been successful
had it been exclusively predicated on the common law remedy
of
mandament
van spolie
.
Conclusion.
[25]
In view of the stance adopted by both parties that the
pre-termination notice is partly correct and that it should be
rectified and the respondent be allowed to pay or enter into an
arrangement predicated on the respondent’s policy over a
certain period of time, it is not required of me to make any
pronouncement on the legal issues raised save what I have outlined
above.
Costs
[26]
It is trite that the question of costs is within the discretionary
enclave of the court which should be exercised judicially.
Having
regard to the conclusion reached subsequent to the court engagement
it is not warranted that one of the parties should be
made to pay the
costs of the other party.
Order
[27]
In the premises I make the following order:
1. The Applicant’s
non-compliance with the rules and /or practice directives relating to
service and time periods is
condoned and the application is allowed
to be heard in accordance with Rule 6(12) of the Uniform Rules of
Court.
2. The Respondent
is ordered to deduct the charges for the electricity consumption from
the pre-termination notice and afford
the applicant a period of 14
days thereafter to pay or make arrangement payment of the remaining
amount due in accordance with
the Respondent’s By-Laws and or
policies.
3. The Respondent
is ordered to reinstate the supply of electricity immediately and
terminate the supply if the applicant
fails to pay or make
arrangement for payment as envisaged in 2 above.
4. No order as to
costs.
M
V NOKO
Judge
of the High Court,
Gauteng
Division, Johannesburg.
This
judgement was prepared and authored by Noko J and is handed down
electronically by circulation to the parties / their legal
representatives by email and by uploading it to the electronic file
of this matter on CaseLines. The date of the judgment is deemed
to be
25 April 2025
.
Dates:
Hearing:
17 April 2025
Judgment:
25 April 2025
Appearances
For
the Applicant: D Lebethe.
Instructed
by: Ditheko Lebethe Attorneys
For
the First Respondent: QM Dzimba.
Instructed
by:
[1]
Local Government: Structures Act 117 of 1998.
[2]
The account number allocated to the applicant by the Respondent is
550509049.
[3]
The
lease arrangement is not known by the respondent but not in dispute.
[4]
Joseph
and Others v City of Johannesburg and Others
[2009] ZACC 30.
[5]
Section 102 (2) of the Municipal Systems Act provides that
collection measures cannot be invoked where there is a dispute
between
the parties regarding the quantum of the bill. In
3[…]
V[…] D[…] M[…] Street H[…] CC v City of
Johannesburg Metropolitan Municipality and Another
(2023-069078)[2023] ZAGPJHC 963 (25 August 2023) this Court
explained that in
Croftdene
Mall
the SCA imposes the following five requirements before a consumer of
municipal services may rely on the protection against disconnection
provided by section 102(2) of the Systems Act:
1.1
“there must be a dispute, in the sense of a consumer, on the
one hand, and the municipality, on the other, advancing
irreconcilable contentions;
1.2
the dispute must be properly raised, which would require, at least,
that it be properly communicated to the appropriate
authorities at
the municipality and that this be done in accordance with any
mechanism and appeal procedure provided in terms
of section 95(f) of
the Systems Act for the querying of accounts;
1.3
the dispute must relate to a specific amount or amounts or a
specific item or items on an account or accounts, with
the corollary
that it is insufficient to raise a dispute in general terms;
1.4
the consumer must put up enough facts to enable the municipality to
identify the disputed item or items and the basis
for the
ratepayer's objection to them;
1.5
it must be apparent from the founding affidavit that the foregoing
requirements have been satisfied.”
[6]
Ngqukumba
v Minister of Safety and Security and Others
[2014] ZACC 14.
[7]
Eskom
Holdings SOC Ltd v Masinda
2019
(5) SA 386
(SCA),
Simons
v The City of Johannesburg Forensic DPT
2019 JDR 2664.
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