Case Law[2025] ZAGPJHC 1011South Africa
Dimension Data (Pty) Ltd v City of Johannesburg Metropolitan Municipality (2024/031003) [2025] ZAGPJHC 1011 (6 October 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
6 October 2025
Headnotes
it provided for the following:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Dimension Data (Pty) Ltd v City of Johannesburg Metropolitan Municipality (2024/031003) [2025] ZAGPJHC 1011 (6 October 2025)
Dimension Data (Pty) Ltd v City of Johannesburg Metropolitan Municipality (2024/031003) [2025] ZAGPJHC 1011 (6 October 2025)
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sino date 6 October 2025
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case
Number: 2024-031003
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED.
6
OCTOBER 2025
In the matter between:
DIMENSION
DATA (PTY) LTD
Applicant
and
CITY OF JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Respondent
Coram
:
B R Kahn AJ
Heard
:
9 and 12 June 2025
Supplementary
submissions: 19 and 25 June 2025
Delivered
:
6 October 2025
JUDGMENT
B
R KAHN AJ
1
If Helen of Troy was the face that launched a thousand ships,
then
the law of prescription is what has launched almost as many lawsuits.
This is one such lawsuit.
Use
of specific words in context
2
I refer in this judgment to:
2.1
the ‘respondent’ and on occasions in referring to the
respondent,
to the ‘City’. I intend when referring to the
respondent, to refer to it in the context of this application and
this
judgment, but where I refer to the City, I intend to refer to
the respondent but outside the context of the role it plays in this
application but rather the role it plays within the life of the City
of Johannesburg Metropolitan Municipality;
2.2
the disputed amount (R29 958 512,89 excluding VAT and
interest
but with interest and depending on when calculated, now
exceeding some R50 000 000,00) which the respondent is
claiming
from the applicant and which it resists because, so the
applicant says, it has prescribed as the disputed claim (but which is
variously
described in the application papers as the ‘disputed
claim’, the ‘disputed amount’ and the ‘disputed
debt’); and
2.3
the applicant’s challenge to the disputed claim as the
‘complaint’
in order to maintain consistency with the
wording in s 11(5)(a) of the Credit Control and Debt Collection
By-laws (the ‘By-laws’),
even though the applicant’s
complaint could perhaps be better categorised as a challenge or
denial of liability.
Introduction
3
3.1
This is an opposed application in which the applicant (a private
South
African company – the consumer) asserts as against the
City of Johannesburg (an organ of State and a supplier of electricity
in this instance and the respondent in this matter) that the disputed
claim has prescribed, whereas the respondent says that this
is not so
and that, to use the respondent’s counsel’s terminology,
it is very much alive, due, owing and claimable.
3.2
There is ancillary relief claimed by the applicant in which it seeks
an
order directing the respondent to reconcile and correct the
applicant’s municipal account number: 2[…] (the
‘municipal
account’) by reversing the charges forming the
subject matter of the disputed claim as well as interest, legal fees,
disconnection
/ reconnection fees and miscellaneous fees that relate
thereto that have been debited to the municipal account.
Urgent
interdict
4
4.1
4.1.1
In the early part of 2024,
the parties were involved in an urgent
application in which the applicant sought and was granted on 6 March
2024, an interim interdict
against the respondent, which, inter alia,
prohibited the respondent from terminating the supply of services to
the applicant’s
property, namely erf 2[…], Rosebank
Township, Johannesburg, being [...] K[...] Avenue, Rosebank,
Johannesburg (the ‘Johannesburg
property’) which the
respondent had threatened via a pre-termination notice pending the
finalisation of this application.
4.1.2
The merits of that application
need not be considered by me, but the
order granted (which I will call the ‘urgent order’)
plays a role in this application
and so it is as well I refer to it
at this early stage in the judgment.
4.2
Whilst it is not necessary for me to quote the whole of the urgent
order,
in summary it provided for the following:
4.2.1
pending the final determination
of an application to be instituted by
the applicant (which is this opposed application which came before
me) the respondent was
interdicted from terminating the power supply
to the Johannesburg property;
4.2.2
the applicant was entitled,
if it so wished, to institute an
application against the respondent in which the applicant will seek
an order in the following
terms, inter alia:
4.2.2.1
declaring the disputed claim has prescribed through the
effluxion of
time;
4.2.2.2
that the respondent reconciles the municipal account; and
4.2.2.3
costs of suit including the reserved costs of the urgent
application.
Background
context – chronology of events
5
As is the case in almost all, if not all, disputes that are to
be
adjudicated upon, to understand and evaluate the issues, the
background facts and chronology of events are necessary. The
chronology
referred to by me excludes certain non-material events
which, in my view, do not add to or detract from an understanding of
the
background facts or context.
6
6.1
Prior to 1 June 2018 (see paragraph 7.1.1 hereunder), the applicant
and
the respondent concluded a consumer agreement whereby the
respondent supplied and measured the consumed electricity to the
applicant
under, in this particular instance, consumer account
number: 2[…] – ie, the municipal account –
relating to
the Johannesburg property.
6.2
Because the respondent is an organ of State, the agreement concluded
between
the parties is contractual and administrative in nature.
7
7.1
On 21 January 2019, the respondent advised the applicant (via a
letter
of that date) that:
7.1.1
it had, on 1 June 2018, conducted
an audit and site investigation at
the Johannesburg property and discovered that the electricity meter
was programmed incorrectly
and as a result thereof, corrected the
programming; and
7.1.2
as a result of the corrected
programming and having analysed the
billing data on the electricity meter on 7 November 2018, it, the
respondent, determined the
amount of electricity back charges owed by
the applicant to it for the period 1 June 2015 up until the end of
May 2018 to be an
amount of R29 958 512,89 (excluding VAT).
7.2
7.2.1
This amount is the capital
component of the disputed claim.
7.2.2
The applicant has taken the
position (and told me) that I can assume,
for the purposes of the relief claimed by it, that the disputed claim
was, at some stage,
owed by it, even though there is reference by the
applicant to the disputed claim being in respect of
alleged
(My emphasis) back charges. (This conflict does not need to be
addressed – let alone resolved – by me, given the
applicant’s
position as to what I can assume for the purposes
of this judgment).
8
8.1
On 28 January 2019, seven days after receipt of the respondent’s
notification on 21 January 2019 of its claim (ie, the claim which,
because of the applicant’s response thereto, became what
is now
called the ‘disputed claim’), the applicant’s
attorneys replied to the respondent’s letter of 21
January 2019
and denied liability for the disputed claim (thereby obviously taking
issue therewith) and on 27 March 2019 addressed
a letter to the
respondent setting out the grounds on which the applicant challenged
the disputed claim.
8.2
8.2.1
However, prior to 27 March
2019 (and it would seem initially
unbeknown to the applicant), the respondent generated an invoice
dated 15 March 2019 addressed
to ‘Internet Solutions Dimension
Data (Pty) Ltd’, that incorporated the disputed claim as part
of its accounting narrative
(line items) and claimed that the due
date for payment of such invoice was 1 April 2019 (the ‘15/03/2019
invoice’)..
8.2.2
Even though it does not emerge
from the papers themselves, my own
research via the website of the Commission for Intellectual Property
and Companies (known as
CIPC), reveals that there is no such legal
entity as ‘Internet Solutions Dimension Data’, but it
would appear that
Internet Solutions is a division of the applicant.
It is however clear that the 15/09/2019 invoice was intended for the
applicant.
Whilst nothing turns thereon, it as well that, to that the
extent that the addressee on the 15/03/2019 invoice does not exist
(at
least prima facie), I should note that there is no dispute
between the parties that same was and remains intended for the
applicant.
This is common cause.
8.3
8.3.1
The applicant however only
received a copy of the 15/03/2019 invoice,
incorporating the disputed claim on 15 April 2019 and on 23 April
2019 – some
eight days later – the applicant
telephonically lodged a query / complaint with the respondent
pursuant to the provisions
of s 11(1) of the By-laws (the
‘complaint’).
8.3.2
S 11(1) of the By-laws reads
as follows:
‘
A customer
may
lodge a query or complaint in respect of the accuracy of any amount
due and payable in terms of an account
rendered
to him or her in terms of these By-laws’.
8.3.3
As will
emerge from later in this judgment, for s 11(1) to be triggered (so
to speak), it is not sufficient for a customer (such
as for example
the applicant) to simply deny liability by way of a bald assertion;
the denial of liability must satisfy the requirements
identified in
the
Croftdene
Mall v Ethekwini Municipality
[1]
judgment which I refer more fully to in paragraph 42 hereunder, which
makes it clear that a ratepayer (for example, the applicant
in this
instance) is required to furnish facts which would adequately enable
the Municipality (the respondent in this matter) to
ascertain or
identify the disputed item or items and the basis for the ratepayer’s
objection thereto.
8.4
8.4.1
It is common cause that the
applicant has satisfied the legal
requirement relative to its complaint being lodged and that the
respondent become obliged by
law to investigate and report the
outcome of its investigations to the applicant.
8.4.2
What is not common cause however
is the effect and legal consequence
of the way in which the respondent investigated (or on the
applicant’s version, did not
timeously investigate) the
complaint.
9
On 14 May 2019, the applicant’s attorney sent a letter
to the
respondent in which it advised the respondent of the complaint;
essentially confirming that the applicant had lodged a complaint.
10
On 20 May 2019, the respondent addressed an email to the applicant’s
attorneys
advising that the applicant’s “query” (as
the respondent puts it) was still in process and had been
“escalated”,
to use the respondent’s language.
11
11.1
On 22 May 2019, the applicant’s attorneys (not being aware of
the response of 20 May 2019
to its letter of 14 May 2019) advised the
respondent in writing (via email) that it would lodge an appeal; it
would appear that
the respondent’s email of 20 May 2019 and
applicant’s attorneys’ email of 22 May 2019, ‘crossed
each other
in the post’ – to use language of what is
probably a bygone era – but once the applicant’s
attorneys had
received the respondent’s email of 20 May 2019,
it addressed a letter to the respondent on 28 May 2019 in which it
advised
that the applicant will not lodge an appeal, but will await
the respondent’s decision – that is to say the decision
in relation to the complaint which, in terms of the respondent’s
email of 20 May 2019, had been escalated.
11.2
The papers do not make it clear as to what the applicant would appeal
against and by extension,
what appeal it would no longer lodge, but I
am satisfied that nothing turns thereon.
12
Certain of the events that follow the respondent’s email of 22
May 2019,
addressed to the applicant’s attorneys take the form
of various demands by the respondent through what appears to be
initially
a debt collection agency called Revenue Consulting (Pty)
Ltd (‘Revco’) and thereafter two firms of attorneys, and
play
an important role in this judgment as appears hereafter.
13
13.1
On 15 and 21 November 2019, Revco, addressed emails to the applicant
demanding payment of the
disputed claim, to which the applicant’s
attorneys responded on 22 November 2019 setting out the history of
the matter and
denied that the applicant was liable therefor and
alleged further that the demand for payment is in breach of the
relevant By-laws
which, says the applicant, bind the respondent.
13.2
What follows is a period of silence – at least until 3 March
2020 when Revco advised the
applicant’s attorney that the
account was to be pended – whatever that may mean in the
context of the then ongoing
issues between applicant and respondent.
14
14.1
Notwithstanding Revco’s advises to the applicant’s
attorney that the account was
to be pended, on 21 April 2021 (by
which time the complaint had not yet been addressed by the
respondent), a law firm acting on
behalf of the respondent, namely
Dali Matlana and Partners, enters the picture and addressed a demand
to the applicant for payment
of the disputed claim.
14.2
The applicant’s attorneys responded thereto on 23 April 2021
and not surprisingly re-asserted
the applicant’s position which
is that it denied liability for the disputed claim.
15
15.1
I interrupt the sequential narrative of events by pointing out that
on the applicant’s
version, the disputed claim became
prescribed on 2 April 2022. The basis therefor, so the applicant
argues, is that the respondent’s
demand for payment of the
15/03/2019 invoice (that incorporated the disputed claim), was to be
paid by 1 April 2019 and so, on
the applicant’s version, the
respondent actually knew its debtor, actually knew the amount it
claimed from the debtor, actually
knew its causa and in a nutshell,
knew everything envisaged in s 12(3) of the Prescription Act 68 of
1969 (the ‘
Prescription Act&rsquo
;) to enable it to institute
proceedings against the respondent – and presumably (in issuing
the 15/03/2019 invoice and demanding
payment by 1 April 2019) was
satisfied that the disputed claim was due, owing and payable.
15.2
It is as well that I refer at this stage to certain provisions
contained in the
Prescription Act.
>15.3
15.3.1
In terms of
s 10(1)
read with
s 11(d)
of the
Prescription Act, the
period of prescription applicable to a debt is three years. (That the
disputed claim is a debt is common cause).
15.3.2
S 12
of the
Prescription Act deals
with the date on which
prescription begins to run, the relevant subsections of which are the
following:
15.3.2.1
s 12(1)
provides as follows:
‘
subject to the
provisions of subsection (2), (3) and (4), prescription shall
commence as soon as the debt is due’; and
15.3.2.2
s 12(3)
provides as follows:
‘
A debt shall not
be deemed to be due until the creditor has knowledge of the identity
of the debtor and of the facts from which
the debt arises: Provided
that a creditor shall be deemed to have such knowledge if he could
have acquired it by exercising reasonable
care’.
16
Back to the sequential narrative. Following on the applicant’s
attorneys’
response on 23 April 2021 (see paragraph 14.2
above), there is silence (once again but this time a prolonged
silence), from the
respondent until 22 January 2024 when another law
firm acting on behalf of the respondent – namely Noko Maimela
Inc., –
addressed a letter to the applicant demanding payment
of the disputed claim.
17
Four days later, on 26 January 2024, the applicant’s attorney
replied to
Noko Maimela Inc. and reiterated the applicant’s
stance, namely that it denies liability for the disputed claim and
alleges,
inter alia, that the disputed claim had become prescribed.
18
18.1
On 16 February 2024, Noko Maimela Inc. responded to the applicant’s
attorney denying that
the applicant can rely on prescription because,
according to the respondent, the disputed claim was interrupted by
the applicant
making monthly payments of electricity consumption
charges.
18.2
It bears mention that the respondent’s attorneys do not assert
any other basis as to why
the applicant cannot rely on prescription,
although I accept that if there is or was another basis which was not
referred to in
the 16 February 2024 response, that omission does not
compromise the respondent’s ability to raise it at a later time
such
as, for example, in these proceedings.
19
19.1
On 23 February 2024, the respondent addressed a pre-termination
notice to the applicant and demanded
payment of the disputed claim
and threatened to terminate the supply of services to the applicant’s
property.
19.2
It was this threat that triggered the urgent application to which
there is reference in paragraph
4 above, and it is this urgent
application that resulted in the urgent order whereafter the
applicant elected to institute this
application.
20
Between the period 23 February 2024 (when the respondent addressed
the pre-termination
notice) and 3 April 2024 (the significance of
this date emerges from paragraph 21 hereunder), the events and
activities relating
to the urgent application play themselves out and
the applicant launches this application and also makes payment of the
sum of
R7 553 737.00 to the respondent in terms of the
urgent order.
21
21.1
On 3 April 2024, the respondent (via its newly appointed attorneys
Morata Mogokare Inc.) addressed
an email to the applicant, advising
it that it had resolved the complaint that had been lodged by the
applicant some five years
earlier and reiterated that the amount
claimed (and which is referred to as the disputed claim in this
judgment) is in fact due
and owing and that the complaint (re the
applicant’s challenge to the veracity of the disputed claim)
had failed.
21.2
In fact, Morata Mogokare Inc. adopts a somewhat aggressive stance and
advised the applicant via
a 9-page letter (that can be fairly
categorised as expansive and technical in motivating the respondent’s
decision), that:
21.2.1
the respondent intended ‘without further recourse
to’ the
applicant, to take legal steps to claim the outstanding amount (ie,
the disputed claim) and;
21.2.2
furthermore (it would appear, ex abudante cautela)
that the contents
of this written communication by Morata Mogokare Inc. to the
respondent (ie, the 9 page letter) does not in any
way seek to alter
the respondent’s contention in its letter of 21 January 2019
which forms the basis of the respondent’s
claim (ie, the
disputed claim).
22
22.1
22.1.1
True to its word the following day – ie, 4 April
2024 –
and before the applicant would have had a chance to consider the
respondent’s position in respect of its –
the applicant’s
– complaint and what stance / position it, the applicant,
should take in regard thereto, the respondent
issued and served
summons against it under case number: 2024-035895 in which the
respondent sues for payment of the disputed claim,
together with
interest and costs.
22.1.2
That the issue and service of summons may have been
premature having
regard to the provisions of
s 11(5)
of the By-Laws, was not part of
the applicant’s case and consequently, I do not deal therewith,
but for context, I quote
s 11(5)
hereunder:
‘
The Council must:
(a)
investigate or cause the query or complaint to be investigated within
14 days, or as soon as possible
after the query or complaint was
received; and
(b)
inform the customer, in writing, of its decision as soon as possible
after the conclusion of the investigation,
instructing that any
amount found to be due and payable must, subject to the provisions of
section 21
, be paid within 21 days from the date on which the
customer is notified thereof, unless an appeal is lodged within that
period
in terms of subsection (6) or
section 12
’.
22.2
22.2.1
In fact I think it fair to say that the respondent
(in the role of
plaintiff) had by 3 April 2024 already prepared the summons (action)
it intended to institute against the respondent
(in the role of
defendant) relative to the disputed claim – thereby brooking no
dissent from the applicant and not affording
the applicant, should it
have been so minded, the opportunity to appeal
(s 12
of the By-laws)
the respondent’s determination of the complaint, such was the
newly found enthusiasm – even robustness
– to the
respondent’s approach to the disputed claim, a complaint that
took the respondent five years to resolve against
the applicant.
22.2.2
The respondent clearly had no intention of waiting
for any possible
appeal by the applicant or for that matter to allow the applicant to
even catch its breath, so to speak, and perhaps
engage the respondent
in further discussion – such was the respondent’s desire
to institute action without delay.
23
The above then is the relevant background and factual matrix.
Issues
to be decided
24
A joint practice note was filed in this matter, which defines the
issues (some
of which however are a repeat of another albeit using
different terminology) to be decided as follows (my distilling
thereof and
my partial terminology):
24.1
whether the applicant, having lodged the complaint in accordance with
s 11(1)
of the By-laws, is entitled in the circumstances and before
the complaint has been resolved to claim that the disputed claim has
prescribed;
24.2
24.2.1
whether the respondent is (was) precluded in terms
of s 102(2) of the
Local Government; Municipal Systems Act 32 of 2000 (the ‘Systems
Act’) from claiming the disputed
claim;
24.2.2
the issue referred to in paragraph 24.2.1 above (which,
as emerged
from the argument advanced by the respondent at the hearing, can be
fairly described as the main string to its bow)
is repeated in the
combined practice note but using different terminology. It is
repeated thus; whether the responded was precluded
in terms of s
102(2) of the Systems Act from implementing any of its debt
collection and credit control measures in relation to
the disputed
claim, including serving legal process from 23 April 2019 to 3 April
2024 due to the lodgement of the complaint and
whether this alleged
impediment interrupted the running of prescription in terms of
s
13(1)
of the
Prescription Act during
this period;
24.3
whether prescription can run whilst the respondent is precluded (if
indeed it is precluded –
these words in brackets being inserted
by me) by s102(2) of the Systems Act from claiming the disputed
claim;
24.4
whether the disputed claim which the respondent claims was due on 1
April 2019 had become prescribed
by the effluxion of time in terms of
the
Prescription Act;
24.5
whether an agreement was concluded between the
parties to ‘pend the claiming of the disputed amount until such
time as the
respondent resolved the complaint’;
24.6
whether there are any foreseeable and material disputes of facts that
cannot be resolved on the
papers;
24.7
whether the applicant’s monthly payments of its current
electricity consumption charges
since April 2019 constitute a tacit
acknowledgement of liability and interrupted the running of
prescription in terms of
s 14(1)
of the
Prescription Act;
>
24.8
whether the respondent is entitled in terms of its By-laws or policy
to allocate the payment
received from the applicant to the oldest
debt; and
24.9
whether the respondent can allocate payment from the applicant to the
disputed claim prior to
the dispute being resolved.
25
It seems to me that a decision on one or other of the issues referred
to above
will apply mutatis mutandis to some of the other issues,
such is the seepage between some of the identified issues.
Onus;
who has what onus?
26
The starting point after the factual matrix has been identified,
would be to
determine which party or parties bears what onus.
27
I think it fair to say that there was no dispute between the parties
as to where
the onus lies and when it shifts (if, on the facts, it
does shift) from the one party to the other. This is so because the
law
in this regard is well settled, but I nonetheless deal therewith
hereunder given the common cause (or at very lease indisputable)
facts in this matter. I must also make this clear; there are many
judgments dealing with the onus in prescription matters and that
I
only refer to a few does not mean I have not considered all those
referred to me by the parties.
28
A party claiming prescription bears a full onus to prove it. The
Supreme Court
of Appeal (‘SCA’) in the judgment of
McLeod
v Kwayiya
stated it thus:
‘
This Court has
repeatedly stated that a defendant bears the full evidentiary burden
to prove a plea of prescription, including the
date on which a
plaintiff obtained actual or constructive knowledge of the debt. The
burden shifts to the plaintiff only if the
defendant has established
a prima facie case’.
[2]
‘
less evidence will
suffice to establish a prima facie case where the matter is
peculiarly within the knowledge of the opposite party
than would
under other circumstances be required.’
[3]
but
it must be noted that the SCA clarified that the burden which shifts
to the plaintiff is an evidentiary burden and not the burden
of
proof.
29
The law in
this regard was reaffirmed by the SCA in
Lancelot
Stellenbosch Mountain Retreat (Pty) Ltd v Gore N.O and Others
[4]
in which the court states the following:
‘
This is so because
when a debtor raises the defence of prescription he bears the full
evidentiary burden to prove it. And that burden
shifts to the
creditor only if the debtor has established a prima facie case. In
that event, a creditor bears the onus to allege
and prove the
interruption of prescription through either an express or tacit
acknowledgement or liability by the debtor, in terms
of
s 14
of the
Prescription Act&rsquo
;.
[5]
30
The SCA in
Jugwanth
v MTN
[6]
had the following to say:
‘
It is settled law
that a person invoking prescription bears a full onus to prove it. In
Gericke v Sack
, Diemont AJ explained:
“
[It] was the
respondent, not the appellant, who raised the question of
prescription. It was the respondent who challenged the appellant
on
the issue that the claim for damages was prescribed; this he did by
way of a special plea five months after the plea on the
merits had
been filed. The onus was clearly on the respondent to establish this
defence’”.
[7]
31
In
Absa
Bank Limited v de Villiers
[8]
,
the SCA held that on general principles where it is clear that the
prescriptive period has run its course, the defendant has a
complete
defence and if the plaintiff relies on suspension or postponement of
prescription, there is a separate burden of proof
that rests on the
plaintiff.
32
The law relating to onus – where it lay and who has what duty –
is
one of the few (if not the only) legal issues in respect of which
there was consensus between the parties.
Applicant’s
position in regard to the disputed claim
33
The applicant contends that since 2 July 2018, the respondent has
been aware
of the facts giving rise to the disputed claim and the
identity of the applicant and that by 7 November 2018 (when the
respondent
determined the amount of back – or unbilled –
charges following upon its discovery of the incorrect programming of
the electricity meter at the Johannesburg property), at the latest,
the respondent had acquired all of the necessary information
required
of it to institute action for the disputed claim, but – at
least as I understand the applicant’s position
–at worst
for it; the invoice from the respondent that included charges / line
items in respect of the disputed claim dated
15 March 2019 and which
calls for payment by 1 April 2019 – ie, the 15/03/2019 invoice
– is a clear indication that
the respondent had satisfied
itself that the disputed claim (which was not yet the subject matter
of a
s 11(1)
By-law complaint; that only occurred telephonically on
23 April 2019) was in fact due and owing.
34
The applicant furthermore avers that:
34.1
at no time prior to the service of the summons on 4 April 2024, did
the respondent serve any
legal process on it in which it claimed
payment of the disputed claim as contemplated in
s 15(1)
of the
Prescription Act;
34.2
the
service of summons was more than three years after the disputed
claim (which the applicant says, the court can assume is valid),
would
34.3
have fallen due within the meaning of
s 12
of the
Prescription Act,
which
I quote (where applicable) hereunder;
34.4
there was nothing (including the provisions of
s 13(1)
of the
Prescription Act and
of s 102(2) of the Systems Act)
preventing the City instituting action in respect of the disputed
claim, thereby interrupting prescription;
34.5
prima
facie, and based on the demand for payment of the 15/03/2019 invoice
by 1 April 2022, the disputed claim prescribed by the
effluxion of
time by 2 April 2022 at the latest, pursuant to s 10(1)
[9]
read with s 11(d)
[10]
of the
Prescription Act;
34.6
the
onus thus shifts from the applicant who has established –
so the applicant says – the prima facie prescription of the
disputed claim to the respondent to prove that either:
34.6.1
the completion of prescription in respect of the disputed
claim was
delayed under the provisions of
s 13
of the
Prescription Act; or
34.6.2
prescription in respect of the disputed claim was
interrupted by a
tacit acknowledgment of liability by the applicant as contemplated in
s 14
of the
Prescription Act.
The
respondent’s defences to the applicant’s allegation of
prescription
35
The respondent raises four defences to the applicant’s claim
that the disputed
claim has prescribed which, in summary, are the
following:
35.1
that it, the respondent, was prevented within the meaning
contemplated in
s 13(1)
of the
Prescription Act, from
interrupting
the running of prescription in respect of the disputed claim (which I
will call the ‘impediment defence’);
35.2
that there was an agreement between the parties to ‘pend the
claiming of the disputed amount’
until such time as the
respondent resolved the complaint (which I will call the ‘suspension
defence’);
35.3
that there are foreseeable and material disputes of fact that cannot
be resolved on the papers
(which I will call the ‘factual
dispute defence’); and
35.4
that each payment by the applicant of its current electricity
consumption charges since April
2019, constituted a tacit
acknowledgement of liability and thus interrupted the running of
prescription in terms of
s 14(1)
of the
Prescription Act (which
I
will call the ‘tacit acknowledgement defence’).
36
I expand on each of these defences hereunder and then deal with the
applicant’s
rebuttal thereof.
The
impediment defence
37
37.1
This defence – which I have called the impediment defence –
is one in which the respondent
relies on the City’s Credit and
Control Policy (the ‘Policy’) to collect revenue owed to
it and s 102(2) of the
Systems Act, the latter of which prohibits the
respondent from collecting the disputed claim and enforcing or
implementing its
debt control collection mechanisms whilst the
complaint is pending.
37.2
S 102(2) of the Systems Act reads as follows:
‘
Subsection
(1) does not apply where there is a dispute between the municipality
and a person referred to in that subsection concerning
any specific
amount claimed by the municipality from that person’.
37.3
The relevant portion of s 102(1) of the Systems Act reads as follows:
‘
1)
A municipality may –
a) …
b) …
c)
implement any of the debt collection and credit control measures
provided for in this chapter in
relation to any arrears on any of the
accounts of such a person’.
38
In amplification of the impediment defence, the respondent argues
that:
38.1
the disputed claim would only ‘… become due and payable
and claimable …’
upon it resolving the complaint and if
the complaint were resolved against the applicant, then upon
communicating that decision
to the applicant in writing and –
so goes the respondent’s argument – in the circumstances
the disputed claim
could not prescribe by the effluxion of time
before resolving the complaint, which was only done on 3 April 2024.
38.2
on 3 April 2024, the respondent – having made a decision in
regard to the complaint –
communicated that decision in writing
to the applicant and in the light thereof, the impediment that
existed (as contended for
by the respondent) was now removed and the
respondent was able to pursue the disputed claim (example, institute
action) together
with interest thereon and the respondent did so –
the following day.
39
Without simplifying what appears to be the respondent’s primary
or perhaps
most dominant argument in its favour and against the
applicant’s position, it says that the existence of s 102(2) of
the
Systems Act is a complete and impenetrable wall preventing it
from taking any steps to recover payment and more particularly, the
service of processes contemplated in
s 15(1)
of the
Prescription Act.
40
The
question that clearly needs to be asked is whether
s 102(2)
constitutes an impediment within the meaning of
s 13(1)(a)
of the
Prescription Act, which
suspended (suspends) the operation of
prescription and if so, when did that impediment commence and then
when did it cease to exist.
41
This impediment defence however needs to be seen in the context of
s
11(3)
of the By-laws. It is useful to quote part of the provisions of
s 11
(3) which reads as follows:
‘
(3)
if a query or complaint contemplated in subsection (1), is lodged –
(c)
… before or after the due date for payment specified in the
account concerned, the customer
concerned must pay the full amount of
any account, insofar as it relates to rates or the municipal service
concerned, rendered
in respect of a subsequent period, before or on
the due date for payment specified in such account,
except insofar
as that account may incorporate the amount in dispute
’. (My
emphasis).
42
The
respondent’s counsel referred me to the judgment in
Body
Corporate
Croftdene
Mall v eThekwini Municipality
[11]
(the ‘
Croftdene
judgment’) which counsel argues identifies what is meant by the
word ‘dispute’ to be as follows:
‘
It is, in my view,
of importance that s 102(1) of the Systems Act requires that the
dispute must relate to a ‘specific amount’
claimed by the
municipality. Quite obviously, its objective must be to prevent a
ratepayer from delaying payment of an account
by raising a dispute in
general terms. The ratepayer is required to furnish facts that would
adequately enable the municipality
to ascertain or identify the
disputed item or items and the basis for the ratepayer’s
objection thereto.
If an item is properly identified and a dispute
property raised, debt collection and credit control measures could
not be implemented
in regard to that item because of the provisions
of the subsection
. But the measures could be implemented in
regard to the balance in arrears; and they could be implemented in
respect of the entire
amount if an item is not properly identified
and a dispute in relation thereto is not properly raised.’
43
As I understand the respondent’s position, in referring me to
the
Croftdene
judgment, the respondent recognises that the
dispute or challenge raised by the applicant in relation to the
disputed claim –
ie, the complaint – was properly
identified and properly raised, with the result that it, the
respondent, was not entitled
because of a legal impediment, to claim
same whether in whole or in part – at least until such time as
it had determined
the complaint against the applicant and then,
presumably, in accordance with its determination.
44
44.1
The respondent, relying on the
Croftdene
judgment, as well as
s 102(2) of the Systems Act and the By-laws, asserts that until it
had responded definitively to the complaint
– one way or the
other – the applicant was not obliged (assuming of course the
complaint was determined against it)
to pay the disputed claim –
and it, the respondent, was not entitled by law to collect the
disputed claim and therefore prescription
was effectively suspended.
44.2
In fact, the respondent goes somewhat further and says in relation to
the applicant’s criticism
of its five-year delay in responding
to the complaint, that the applicant could (or should) have reviewed
its failure to take a
decision given that it is settled law that the
failure of an organ of State to take a decision (ie, a non-event)
amounts to a decision
(ie, a positive event) and is reviewable.
45
Continuing
to expand and/or amplify its impediment defence, the respondent says
that this Court has no jurisdiction to resolve the
dispute without
it, the respondent, first resolving same as provided for in the
judgment of
Body
Corporate of Willow and Aloe Grove v City of Johannesburg and Another
[12]
. (I deal more fully
herewith later in this judgment; see paragraph 92 and subsequent
paragraphs).
46
In summary, it appears that the respondent’s impediment defence
can be
stated thus:
46.1
it was precluded by s 102(2) of the Systems Act from serving legal
process to interrupt prescription
until it determined (obviously
against the applicant – in whole or part) the complaint which
had been lodged by the applicant
on 23 April 2019;
46.2
it was only when it determined the dispute on 3
April 2024 that the s 102(2) impediment ceased to exist with the
result that prescription
had not, as contended for by the applicant,
run its course.
Applicant’s
response to the impediment defence
47
The applicant proffers three responses (as it calls them) to the
impediment defence,
namely:
47.1
firstly, properly interpreted, s 102(2) of the Systems Act:
47.1.1
does not preclude the institution of legal proceedings,
and none of
the provisions of
s 13(1)(a)
of the
Prescription Act avail
the
respondent and therefore the impediment defence must fail; and
47.1.2
is intended anyhow to safeguard consumers / customers
of the City
(such as for example the applicant) from the punitive / draconian
measures ordinarily available to the City whilst
their disputes
properly identified and lodged as provided for in the
Croftdene
judgment (the complaint in this instance) are being adjudicated and
not to shield the respondent from the running of prescription
when it
fails to determine such disputes timeously;
47.2
secondly:
47.2.1
even if
s 102(2)
, properly interpreted, precludes the institution of
legal proceedings with the result that the impediment as provided for
in
s 13
of the
Prescription Act is
applicable, this cannot be relied
upon by the respondent as its failure to determine the complaint for
five years, would not be
a recognised ground for the postponement or
delay of the prescriptive period; and
47.2.2
our law does not allow a creditor (the respondent
in this instance)
to postpone (suspend) prescription by its own actions – whether
deliberate or otherwise;
47.3
thirdly: in any event, even if the two ‘responses’
referred to in paragraphs 47.1
and 47.2 above do not succeed in
refuting the impediment defence, then the respondent’s conduct
effectively communicated
its determination of the complaint (and by
extension the impediment claimed by the respondent ended, and that by
the time summons
was served (4 April 2024), prescription had already
run its course.
48
The applicant further asserts that there is a difference between
commencing an
action to interrupt prescription (on the one hand) and
proceeding with an action already instituted and recovering the
disputed
claim (on the other hand).
49
In support of the impediment defence, the respondent relies on the
Croftdene
judgment, but the judgment does not address the
question of prescription and/or the respondent’s entitlement
(or lack of
entitlement) to institute action to interrupt the running
of prescription prior to it, the respondent, determining a pending
dispute
properly lodged and which satisfies the observations made by
the learned Judge in
Croftdene
quoted in part in paragraph 42
above.
50
The
applicant however relies heavily on two judgments, the one being
Tarica v
City of Johannesburg Metropolitan City
[13]
(
the
‘
Tarica
judgment’
)
,
a judgment of this court in which the court found (in summary) as
follows:
50.1
Ms Tarica has satisfied the requirements set out in
Croftdene
for a ‘valid dispute’ under s 102(2) of the Systems Act
in relation to the amount claimed from her by the respondent
in this
matter relative to Ms Tarica’s municipal account;
50.2
in view of the fact that a valid dispute had been raised, s 102(2) of
the Systems Act became
operative and prohibited the City from
allocating payments to the disputed charges;
50.3
the City was however obliged (if it wanted to interrupt prescription)
to institute legal proceedings
before the completion of the period of
prescription (which, it must be said, is the applicant’s
argument in this matter);
50.4
the City’s argument that its policy precluded it from issuing
summons on disputed claims,
thereby preventing the debts from
prescribing, was without merit. (It bears mention that in this matter
– unlike Tarica –
the claims that are in issue for
purposes of prescription, can be assumed to have, at some stage –
been owing);
50.5
prescription was governed by the
Prescription Act
and
it operated independently of internal policies or administrative
practices of municipalities;
50.6
consequently, whilst the City chose to adopt procedures from managing
disputes through its credit
control and debt collection policy, those
procedures did not have the effect of overriding or suspending
statutory requirements
of the
Prescription Act;
50.7
the purpose of the policy allowed for the suspension of certain
credit control actions, such
as disconnections during the resolution
of disputes, was to safeguard customers from punitive measures whilst
their disputes were
being adjudicated;
50.8
the right to suspend credit control measures was an internal
administrative remedy and did not
equate to the legal interruption of
a debt’s prescription period;
50.9
the statutory framework for prescription continues to apply
irrespective as to the City’s
internal mechanisms for dispute
resolution; and
50.10 the
running of prescription could not be altered by a creditor’s
inaction and the City’s decision
not to pursue the disputed
claim through legal process did not negate the statutory operation of
prescription.
51
51.1
The respondent argues that the
Tarica
judgment (which we are
told is subject to a pending application for leave to appeal) is
clearly wrong and that I should only consider
it – at worst for
the respondent – persuasive, and at best for the respondent,
not binding.
51.2
I am unpersuaded; whilst the
Tarica
judgment stands, I am
bound thereby, unless I can conclude that it is clearly wrong which I
cannot.
52
52.1
The second
judgment the applicant relies heavily upon is
Uitenhage
Municipality v Molloy
[14]
(
the
‘
Uitenhage’
judgment)
in
which the Supreme Court of Appeal – confronted with the
question as to whether
section 30(3)
of the previous employment Act
precluded an employee, who had not satisfied its conditions, from
interrupting prescription through
the service of ‘any process,
whereby the creditor claims payment of the debt’ – held
that it did not, and that
the said section which precluded such
employee from ‘recovering’ any amount due until the
section’s pre-conditions
were satisfied was not a bar to
issuing summons.
52.2
By way of analogy, the applicant submits that the respondent was not
precluded (ie, impeded)
from issuing summons to interrupt
prescription until the complaint was resolved; it was simply barred
from recovering (by way of
a judgment) the amount claimed by it in
the court proceedings.
53
53.1
In the alternate to its position in relying on the
Tarica
judgment (if it is found that
Tarica
was clearly incorrect or
clearly distinguishable and that the primary reasoning in
Uitenhage
is not applicable), reliance is placed by the applicant on the
alternative reasoning in
Uitenhage
where the SCA held that a
creditor cannot, by failing to perform a required act within its
control, delay the due date of a debt
or postpone the running of
prescription.
53.2
On this basis, even if s 102(2) of the Systems Act gave rise to an
impediment as contemplated
in
s 13(1)(a)
of the
Prescription Act,
that
impediment ceased to exist 14 days after 23 April 2019, being
the date on which the applicant lodged its query (or if not within
14
days, then as soon as possible thereafter). Consequently, says the
applicant, the debt prescribed several years prior to the
institution
of action by the City in April 2024.
54
The
applicant continues its rebuttal of the impediment defence by
referring to the judgment of
Joseph
and others v City of Johannesburg
[15]
(‘Joseph’) in which the Constitutional Court held that
Municipalities are obliged to provide electricity to residents
in the
area as a matter of public duty. It emphasises, inter alia, that if
debts are not paid to the respondent, it has a constitutional
duty to
implement debt collection measures – as Jakoob J held ‘it
is important for unpaid municipal debt to be reduced
for all
legitimate means’ and that in a concurring judgment, Reagan J
affirm that ‘there can be no doubt that municipalities
bear an
important constitutional obligation and statutory responsibility to
take appropriate steps to ensure the efficient recovery
of debt’.
55
With that platform, the applicant asserts that the respondent’s
position
– namely that it was precluded or barred as a result
of what the applicant calls its (the respondent’s) own failure
to determine the complaint for five years from claiming payment of
the disputed claim at any time prior to 3 April 2024 was –
is
unsustainable.
56
The respondent in further support of the impediment defence, relies
on
s 13(1)
of the
Prescription Act and
on s 102(2) of the Systems
Act, the latter of which has been considered in a number of
judgments.
57
It would be useful to refer to s 11(5) and (6) of the respondent’s
By-laws,
which provide, inter alia, as follows:
‘
(5)
The Council must –
(a)
investigate or cause the query or complaint to be investigated within
14 days, or as soon as possible
after the query or complaint was
received; and
(b)
inform the customer, in writing, of its decision as soon as possible
after conclusion of the investigation,
instructing that any amount
found to be due and payable must, subject to the provisions of
section 21, be paid within 21 days from
the date on which the
customer is notified thereof, unless an appeal is lodged within that
period in terms of subsection (6) or
section 12.
(6)
A customer may, subject to the provisions of section 12, lodge an
appeal with the City Manager in terms
of section 62 of the Act
against a decision referred to in subsection (5) within 21 days of
the date of the notification of the
decision’.
58
I am satisfied that the onus that the applicant had to prove a plea
of prescription
has been satisfied and so, as provided in
MacLeod
and
Lancelot
the burden now shifts to the respondent and I
approach the impediment defence against, inter alia, the backdrop of
the above common
cause facts and the shifted onus.
59
It is common cause that the respondent failed to:
59.1
investigate (or at least complete its investigation) of the complaint
within the period
provided for in s 11(5)(a) of the By-laws which
requires the City to investigate a query or complaint ‘within
14 days, or
as soon as possible after the query or complaint was
received’ which, in my view, is clearly indicative of the
By-laws requiring
prompt – even urgent – attention.
59.2
advance any reason or explanation as to why it was not possible to
investigate the complaint
within the aforesaid 14-day period, or to
tender any explanation whatsoever to enable this Court to understand
or perhaps even
evaluate whether when it did – eventually –
revert in regard to the complaint on 3 April 2024 (some five years
after
the complaint was first lodged), the period between the lodging
of the complaint and the determination thereof, was ‘as soon
as
possible after the query or complaint was received’ which
recognises that depending on the nature, extent and complexity
of the
complaint a consumer / customer may lodge, that 14 days may in
certain cases be insufficient in the circumstances for the
City to
investigate the query or complaint lodged by the consumer as provided
for in s 11(5)(a) of the By-laws and what in the
circumstances of
this particular matter would have been reasonable and why the
respondent might argue for that position.
60
60.1
The respondent’s failure to explain what facts, circumstances
or events prevented it discharging
its duty to investigate the
complaint:-
60.1.1
initially within 14 days;
60.1.2
and if that was not possible, then as soon as possible
thereafter
is significant, more
particularly given the fact that the By-law recognises that whilst
ideally the City should resolve the complaint
within 14 days, there
may well be facts and circumstances that preclude it doing so but
then, it must do so ‘as soon as possible
thereafter’.
60.2
What is soon and what is possible (there is linkage between the two),
is of course something
that is not within the applicant’s
knowledge but it certainly is within the respondent’s knowledge
and yet the respondent
has chosen (and I do not think it unfair to
say, deliberately) to remain silent in this regard. This omission and
its consequence
are dealt with more fully hereunder.
61
61.1
It seems to me that the City’s position seems to be that,
notwithstanding the requirements
imposed upon it by s 11(5)(a) of the
By-laws, it can nonetheless take as long as it wants to investigate
any query, challenge or
complaint that satisfies the
39 van der
Merwe
judgment (ie, clearly specified and identified amount) and
where that time extends beyond the three year prescription period –
indeed extends, I suppose in theory, for years thereafter – the
City can, without tendering any explanation as to what precluded
it
resolving the complaint if not within 14 days, then ‘as soon as
possible thereafter’ avoid the consequences of prescription.
61.2
61.2.1
I think not – certainly not without a sufficiently
cogent
reason (that satisfies the
Prescription Act at
least and perhaps even
the Systems Act) as to what appears to be an inordinate delay and
then certainly not without affording the
applicant an opportunity of
dealing therewith.
61.2.2
The City is after all an organ of State; it has responsibilities
that
differ from those of a private individual. It surely cannot suffice
for the City to delay for an inordinate (and unexplained)
period of
time and then rely without further ado on s 102(2) of the Systems Act
to shield it from a claim (or risk) of prescription.
61.3
In this instance, there are no facts or circumstances presented to
the Court to support the discharge
by the respondent of the onus
which shifted to it after the applicant had established, prima facie,
prescription.
62
The applicant asserts that there was no legal impediment to the
respondent launching
proceedings to recover the disputed claim after
the expiry of the 14 day period (that is to say after 7 May 2019) or
even after
the expiry of a reasonable period beyond the 14 day period
and believes that its assertion in this regard is supported by s 25
of the By-laws that provide that the City’s failure, inter
alia, to comply with the provisions of its own By-laws ‘does
not in any way affect the liability of any person to pay any amount
due and payable to the Council as contemplated by these By-laws
nor
the Council’s right to recover such amount’. Conversely –
at least as I understand the applicant’s
position – this
failure does not in any way affect the period of prescription running
against the City.
63
The
applicant also relies on the judgment of
Dodson
AJ in 39 van der Merwe Street, Hillbrow CC
[16]
,
that a customer of the respondent could ‘perpetuate a dispute
indefinitely by simply ensuring that it does not agree to
any
assertion by the City as to the extent to the customer’s
indebtedness in respect of particular amounts. On this basis,
s
102(2) might become an indefinite shield against the exercise of
statutory power of disconnection, notwithstanding continued
non-payment’.
64
64.1
The respondent argues (as I understand its argument) that it should
be permitted (without any
plausible explanation – indeed
without any explanation whatsoever) to simply not decide a complaint
for an indefinite period
– (in theory why should the five year
period in this particular instance not, for example, be ten years in
another matter
or even longer, thereby leaving the consumer in limbo)
with impunity – ie, without any prejudice to be suffered by it,
the
City.
64.2
The very idea and purpose of prescription (to bring matters within
certain timeframes to finality)
and the requirement for the
respondent to investigate the complaint within fourteen days or ‘as
soon as possible after the
query or complaint was received’ is,
in my view, a clear indication that the respondent cannot remain
sanguine, seemingly
do nothing about the complaint for years on end
and then, without any explanation as to the reasons for what is
clearly an extraordinary
delay, not suffer the consequences thereof.
65
65.1
It must also be borne in mind that the respondent caused two demands
for payment of the disputed
claim to be made on the following dates:
65.1.1
15 and 21 November 2019 – via Revco; and
65.1.2
21 April 2021 – via attorneys Dalli Matlana
and Partners,
both dates after the
lodging of the complaint (which was lodged on 19 January 2019) and of
course after the 14 day period.
65.2
How then is a Court to interpret these two demands? The respondent in
its answering affidavit,
makes no effort to explain away the demands
which, I think it fair to say, can only be interpreted to mean that
the respondent,
having received the complaint, intended to convey to
the applicant (perhaps somewhat inelegantly and not necessarily in a
user-friendly
fashion – but nonetheless in clear and
unequivocal terms) that it had considered the complaint (as it was
enjoined to do
in accordance with its statutory and constitutional
duty) as having no substance, that the complaint was unsuccessful
(the disputed
claim stood) and that the applicant should make payment
thereof.
66
It is surely indisputable that the respondent knew and was constantly
alive to
the following:
66.1
its constitutional and statutory imperative to collect monies due and
owing to it;
66.2
the 14-day period provided for in s 11(5)(a) of the By-laws to
investigate the complaint;
66.3
that if it was not possible to complete its investigation of the
complaint within the 14-day
period, then it should do so as soon as
possible thereafter; and
66.4
that any debt due to it (which would include the disputed claim)
would ordinarily prescribe after
three years,
and yet it took no steps
whatsoever to interrupt prescription. In this regard, the applicant
contends that the respondent could
and should have initiated
proceedings prior to the disputed claim prescribing and that the
provisions of s 15(2) of the Systems
Act was no bar to it doing so.
For this proposition, it relies, inter alia, on the reported judgment
of
Uitenhage
, the relevant portion of which reads as follows:
‘
The basic fallacy
in the contention advanced on behalf of the respondent, is that an
employer’s debt arising from overtime
work or work performed on
Sundays, and which is payable at the end of the month in which such
work was performed, nevertheless
ceases to be “due” for
the purposes of
section 12(1)
of the
Prescription Act, merely
because
some procedural conditions prescribed in
section 30(3)
have to be
satisfied before that debt is recoverable. If that contention was
correct the employee concerned could simply wait for
up to twenty
years before seeking to fulfil for the first time any of the
conditions specified in section 30(3) of the Employment
Act. An
employer in the position of the appellant could, after the lapse of
so many years, find itself presented with a claim for
work allegedly
done on some Sunday many years ago, without any effective means of
counteracting such allegations. Material witnesses
might have died in
the interim and no records might be available to investigate the
claims, because in terms of section 20(3) of
the Employment Act an
employer is only obliged to retain such records for a period of three
years’ and
‘
A creditor against
whose claim prescription commences to run, may protect himself or
herself from its consequences, by causing the
interruption of
prescription in terms of
section 15
of the
Prescription Act through
the service of: “any process, whereby the creditor claims
payment of the debt”’.
67
It seems to me that the respondent’s approach in regard to the
impediment
defence is that it can take as long as it wants, without
any explanation as to the delays and with complete impunity (thanks
to
s 102(2) of the Systems Act) to investigate a complaint and
consumers (the applicant in this instance) must simply hope that one
day in the future, when and if a complaint is determined against them
(as in the case of the applicant in this matter) –
they still
have the necessary evidence (personnel, documents, witnesses,
institutional memory and whatever else a litigant
would hope to
have available to them by way of arrows in their quiver) to discharge
an onus and/or defeat a claim from the City
so as to be victorious in
litigation. This seems to me to be the very antithesis of the purpose
of prescription, as well as the
directive embodied in s 11(5)(a) of
the By-laws (14 days or as soon as possible thereafter).
68
68.1
68.1.1
The respondent asserts that it was always open to
the applicant to
initiate review proceedings when it, the respondent, had failed to
make a decision in respect of the complaint
and it criticises the
applicant for not having done so.
68.1.2
This criticism is without foundation; there can be
no duty on a
debtor to initiate any steps or do any act, matter or thing that has
the effect of benefitting a creditor so as to
avoid a debt becoming
prescribed absent perhaps a specific legal requirement – and
there is no such legal requirement in
this matter.
68.2
To suggest or hold otherwise, would be to cast some or other onus or
responsibility on a debtor
to act contrary to its own affairs and
interests (which in and of itself may have serious repercussions,
including breaching duties
of good faith and other responsibilities
to a range of stakeholders) in favour of a third party (a creditor)
to whom it owes no
duty or responsibility – and with whom it
may be and probably in most instances, will be, in a hostile or
potentially hostile
environment. Such a proposition only needs to be
articulated, to immediately appreciate its fallacy.
68.3
In any event, and separate and distinct from the rejection of the
respondent’s assertion
/ position as referred to in paragraphs
68.1 and 68.2 when would the applicant (at least on the respondent’s
version) initiate
review proceedings? Put another way, by when had
the respondent failed to make a decision? Three months after the
expiry of the
14 day period? six months? Two years? and so forth and
so on. It would be grossly unfair and unreasonable to leave a
consumer
in this twilight world of uncertainty.
69
69.1
The respondent also relies on the content of the applicant’s
attorneys’ letters of
28 May 2019 and 22 November 2019 as
supportive of its position that there is an interruption of
prescription.
69.2
In the 28 May 2019 letter, the applicant’s attorneys informed
the respondent that it would
not lodge an appeal as it would not
adopt the view that the respondent’s failure to respond to the
applicant’s complaint
was deemed to be a refusal to address it
and the written decision was thus awaited in due course.
69.3
69.3.1
Whilst I cannot glean from the papers what the applicant
would have
been appealing against, I do not believe the existence of this letter
– whatever it may or may not mean or convey
to the respondent –
constitutes an impediment to the respondent instituting proceedings
if it wished to interrupt prescription.
69.3.2
There was nothing to prevent the respondent, when
the prescription
clock was nearing the bewitching hour, to advise the applicant that
the complaint was still being investigated
(ideally with some reason
for the delay – if only as a courtesy to a customer /
consumer,) and that it, the respondent, intended
to institute action
in respect of the disputed claim for the sole purpose of interrupting
prescription but that having served whatever
court proceedings
interrupted prescription (perhaps an action; perhaps motion
proceedings), the dies would (or could by agreement)
be suspended
pending the respondent’s determination of the complaint. Such
an approach would be one that any customer / consumer
faced with the
position of the applicant could not legitimately resist or object to
– and yet the respondent did nothing.
69.3.3
Even if a customer / consumer faced with such an approach
by the City
were to be uncooperative, there is no reason why the City should not,
ex abudante cautela and if only to protect its
own position, cause
court proceedings (action or motion proceedings) to be instituted and
served and to deal with any objection
by the customer / consumer
thereafter. That, to my mind, would be a responsible safety-first
approach to the matter.
69.4
On 22 November 2019, the applicant’s attorneys reminded the
respondent that the complaint
was still pending and that the demand
for payment by Revco was premature.
70
These two letters simply identified the applicant’s assessment
of its position
and how it viewed matters. It was for the respondent
to determine whether the applicant’s assessment was right or
wrong and
in any event in my view, neither letter could be
interpreted to constitute an interruption of prescription, nor did it
present
the respondent with any benefit it could somehow rely upon to
advance or protect its position.
71
71.1
Does s 13(1) of the Prescription and s 102(2) of the Systems Act –
properly interpreted
– allow the City to take as long as it
wants – in this case five years, but ostensibly if the
respondent’s argument
is to be taken to its logical conclusion
– any period of time – to investigate the complaint and
short of review proceedings,
the consumer must tolerate the delay
together with all the actual and potential prejudice it may suffer?
71.2
My view is
that to afford these sections relied upon by the respondent their
literal meaning (or at least a meaning as contended
for by the
respondent) would give rise ‘to an injustice or incongruity or
absurdity that is at odds with the purpose of the
statute’
quoting the
Constitutional
Court in Independent Institution of Education (Pty) Ltd v KwaZulu
Natal Law Society and others
[17]
.
71.3
In this judgment the Constitutional Court has said the following on
the purposive interpretation
of statute:
‘
[1]
It would be a woeful misrepresentation of the true character for
constitutional democracy to resolve any legal
issue of consequence
without due deference to the pre-eminent or overarching role of our
Constitution.
[2]
The interpretive exercise is no exception. For, section 39(2) of the
Constitution dictates that ‘when
interpreting any legislation …
every court, tribunal, or forum must promote the spirit, purport and
objects of the Bill
of Rights’. Meaning, every opportunity
courts have to interpret legislation, must be seen and utilised as a
platform for
the promotion of the Bill of Rights by infusing its
central purpose into the very essence of the legislation itself.’
[18] To
concretise this approach, the following must never be lost sight of.
First, a special meaning ascribed to a
word or phrase in a statute
ordinarily applies to that statute alone. Second, even in instances
where that statute applies, the
context might dictate that the
special meaning be departed from. Third, where the application of the
definition, even where the
same statute in which it is located
applies, would give rise to an injustice or incongruity or absurdity
that is at odds with the
purpose of the statute, then the defined
meaning would be inappropriate for use and should therefore be
ignored. Fourth, a definition
of a word in the one statute does not
automatically or compulsory apply to the same word in another
statute. Fifth, a word or phrase
is to be given its ordinary meaning
unless it is defined in the statute where it is located. Sixth, where
one of the meanings that
could be given to a word or expression in a
statute, without straining the language, ‘promotes the spirit,
purport and objects
of the Bill of Rights’, then that is the
meaning to be adopted even if it is at odds with any other meaning in
other statutes.
[38]
it is a well-established canon of statutory construction that “every
part of a statute should be construed
so as to be consistent, so far
as possible, with every other part of that statute, and with every
other unrepealed statute enacted
by the Legislature”. Statutes
dealing with the same subject matter, or which are
in
pari
materia
, should be construed together and harmoniously. The
imperative has the effect of harmonising conflicts and differences
between
statutes. The canon derives its force from the presumption
that the Legislature is consistent with itself. In other words, that
the Legislature knows and has in mind the existing law when it passes
new legislation, and frames new legislation with reference
to the
existing law. Statutes relating to the same subject matter should be
read together because they should be seen as part of
a single
harmonious legal system.
[41]
the canon is consistent with a contextual approach to statutory
interpretation. It is now the trite that courts
must properly
contextualise statutory provisions when ascribing meaning to the
words used therein. While maintaining that words
should generally be
given their ordinary grammatical meaning, this Court has long
recognised that a contextual and purposive must
be applied to
statutory interpretation. Courts must have due regard to the context
in which the words appear, even where the words
to be construed are
clear and unambiguous’.
71.4
71.4.1
Guided by the aforesaid decision, I am confident that
s 13(1)
of the
Prescription Act and
s 102(2) of the Systems Act do not afford the
respondent the license or protection (so to speak) that it claims; it
would be at
least unjust, probably incongruous and almost certainly
absurd – if not all three.
71.4.2
If it were otherwise, the prejudicial effect on a
consumer /
defendant when faced with a claim years later (and the possibility,
if not certainty, of not being able to mount a defence
so that the
battle between City and consumer would be one that satisfies our
constitutional values of fairness, equity and reasonableness)
is
clear.
72
I therefore find that:
72.1
the applicant has established a prima facie case of prescription and
discharged whatever onus
it had in this regard;
72.2
the respondent has not discharged the evidentiary burden that shifted
to it thereafter; and
72.3
as a result thereof, the impediment defence raised by the respondent
is, in the circumstances
of this particular matter, unsustainable.
The
suspension defence
73
73.1
This defence – which I have called the suspension defence –
is premised on the existence
of an agreement which the respondent
alleges was concluded between it and the applicant ‘to pend the
claim of the disputed
amount until such time the respondent has
resolved the applicant’s dispute / query and notify the
applicant in writing’.
The applicant disputes that such
agreement was ever concluded.
73.2
The importance of this agreement (assuming it was concluded) could
not have escaped the respondent’s
attention. It would, in and
of itself, effectively suspend prescription from, at very least, the
date the agreement was concluded
(not identified by the respondent)
until the resolution of the complaint which, on the respondent’s
version, would be 3 April
2024 (when its attorney addressed an email
to the applicant’s attorneys referred to in paragraph 21
above), and yet there
are no details whatsoever provided as to when
and where this agreement was concluded, who represented the parties
in concluding
the agreement, was it written or oral (or perhaps a
combination of both), what were its terms and what were the
surrounding circumstances
– what for example, led up to the
conclusion of the agreement? So many obvious questions that present
themselves when asserting
the existence of an agreement of such
significance and yet no answers (or put another way, no information)
are asserted / tendered
by the respondent.
74
Were such an important agreement concluded. it seems inconceivable
that the respondent
(in whose favour that agreement would have been
concluded) would not have addressed a letter to the applicant’s
attorneys
confirming the existence of such an agreement and its
terms.
75
When searching for details about the agreement (not to be confused
with the allegation
of the existence of an agreement), all one finds
is … nothing.
76
Given the significance of such an agreement (if it had been
concluded), and the
absence of even the barest information relating
thereto (and bearing in mind that the respondent would have the onus
to establish
the existence of such an agreement), I have no
hesitation in finding that the respondent’s assertion that such
an agreement
was concluded is implausible I reject it completely.
The
factual dispute defence
77
77.1
Prior to
addressing the factual dispute defence, I must remain cognisant of
the Plascon-Evans rule (
Plascon-Evans
Paints Ltd v van Riebeeck Paints (Pty) Ltd
[18]
),
which guides a court’s approach where there is an argument
(usually, if not always, advanced by a respondent in motion
proceedings – and on occasions by a court itself) that an
irreconcilable dispute of fact exists, which precludes a court
in
motion proceedings from making a determination when final relief is
sought.
77.2
This rule has become so entrenched in South African law and has been
quoted and followed on so
many occasions that it almost seems
unnecessary to refer thereto but having said that, it is as well that
I quote same, which I
do hereunder:
‘…
where
there is a dispute as to the facts a final interdict should only be
granted in notice of motion proceedings if the facts as
stated by the
respondent together with the admitted facts in the applicant’s
affidavits justify such an order…
Where it is clear that
facts, though not formally admitted, cannot be denied, they must be
regarded as admitted’.
78
The respondent asserts relative to the factual dispute defence that
the following
questions are to be addressed by the Court in this
application and can only be answered by evidence led by witnesses and
therefore,
says the respondent, the matter cannot be disposed of on
motion proceedings. The questions are, according to the respondent
(framed
by me based on the respondent’s heads of argument),
whether:
78.1
the respondent was entitled to claim the disputed claim or was
prohibited from claiming same
whilst the complaint was pending;
78.2
the disputed claim ‘can be deemed to have prescribed’
without the applicant agreeing
that the amount was due and payable
and that the respondent could claim it;
78.3
the applicant has accepted the outcome of its query as provided by
the respondent;
78.4
the By-law and the administrative law finding that the failure of the
respondent taking the decision
is a reviewable decision are settled
in law; and
78.5
this Court can accept that from 2019 to March 2024, the disputed
claim was due and payable prior
to the respondent resolving the
complaint.
79
Even if I accept that the disputes (or questions) identified in
paragraph 78
above (which I have extracted and collated from the
respondent’s heads of argument) are correctly and fairly
identified,
in my view, none of them prevent my deciding this matter
on application for final relief given what are the common cause
facts,
as well as facts which, though not formally admitted, cannot
be denied.
80
In addition to the common cause facts, there are three significant
common cause
omissions that I have had regard to, namely:
80.1
in relation to the suspension defence, evidence relevant to the
agreement asserted by the respondent
is not only sparce, but
non-existent;
80.2
in relation to the impediment defence, the respondent has failed to
tender any explanation –
let alone a plausible explanation –
as to why, in spite of s 11(2) of the By-laws requiring any dispute
(the complaint in
this matter) being determined speedily (14 days or
as soon as possible), it took five years to deal therewith and when,
on 3 April
2024, its attorney advises the applicant of the outcome of
the investigation (ie, the decision in relation to the complaint), it
repeats – parrotlike – its, the respondent’s,
initial finding; and
80.3
the respondent instituted action more than three years after it had
the necessary information
to formulate a cause of action in respect
of the disputed claim.
81
My approach to the framing by the respondent of what it alleges are
disputes
of facts, is set forth hereunder:
81.1
whether the respondent was entitled to claim the disputed claim prior
to prescription arising
in the ordinary course is a matter of law,
but there are common cause facts that do not present uncertainty as
envisaged by the
Plascon-Evans
rule. I have dealt with this
above;
81.2
81.2.1
in regard to the question as to whether the disputed
claim can be
deemed to have prescribed without the applicant agreeing that the
amount was due and payable and that the respondent
could claim it,
suggests that until such time as the applicant consents or allows the
respondent to institute action against it,
the respondent is
precluded from instituting action.
81.2.2
Such a proposition, besides not being a dispute of
fact, only needs
to be articulated to appreciate that it cannot be a sound legal
proposition and in any event is, I believe, incorrectly
framed as a
dispute of fact;
81.3
81.3.1
the question as to whether the applicant has accepted
the outcome of
its complaint as provided for by the respondent, is also incorrectly
framed as a dispute of fact. There has been
no suggestion by the
respondent in its answering affidavit that once it had determined the
complaint, the applicant is obliged
to either accept the
determination or reject it and in the latter circumstances,
presumably exercise some or other right following
upon the
respondent’s determination of the complaint against it prior to
the respondent being entitled to initiate proceedings
against the
applicant.
81.3.2
Once again, to the extent that the respondent frames
this as a
dispute of fact, it cannot be so categorised and in any event, does
not appear from the papers at all – let alone
appearing in the
papers as a dispute of fact;
81.4
81.4.1
the framing of the question ‘the By-law and
the administrative
law finding that the failure of the of the respondent taking a
decision is a reviewable decision are settled
in law’ is (if to
be viewed through the prism of an alleged dispute of fact)
incomprehensible. Where the respondent fails
to take a decision in
circumstances where it has an obligation to do so, such conduct is a
reviewable decision and is a well settled
legal cause of action (even
trite law) and once again is not a dispute of fact.
81.4.2
I cannot, even in the most generous approach to the
respondent,
identify what is the dispute of fact contended for by it that
requires evidence. I have in any event found, as a matter
of law,
that there was no obligation on the applicant to review the
respondent’s failure to make a decision on the complaint.
Where
the dispute lies in relation to the respondent’s delay for five
years, I know not. There is in fact none. Once again,
the respondent
incorrectly frames this question (whatever the question may be) as a
dispute of fact. To the extent that I can glean
a question and/or a
dispute, it is not one that precludes my making a final decision on
motion;
81.5
as to whether this Court can accept that from 2019 to March 2024, the
disputed claim was due
and payable before the respondent resolved the
dispute is, in my view, once again, a matter of law – not fact
and certainly
not a disputed fact. It is the legal conclusion that is
subject to dispute, not the objective facts which give rise to the
competing
arguments. If however I am wrong in this regard, and it is
a factual situation that requires a determination, then it seems to
me there are common cause facts as well as facts that are
sufficiently uncontentious which allow a determination in motion
proceedings.
82
Consequently, I find that there are no disputes of fact (or
unanswered questions
on the respondent’s approach to the
matter) that prevent me deciding this matter by way of motion
proceedings.
The
tacit acknowledgement defence
83
Prior to
dealing with the tacit acknowledgement defence, I must of course have
regard to the law relating thereto and how courts
have pronounced on
this area of law which has happened on many occasions. I start by
referring to
Petzer
v Radford (Pty) Ltd
[19]
,
in which the Full Court held that:
‘
To interrupt
prescription, an acknowledgement by the debtor must amount to an
admission that the debt is in existence and that he
is liable
therefor’.
84
In
Cape
Town Municipality v Allie NO
[20]
(the ‘
Allie
judgment’) which dealt with
s 14(1)
of the
Prescription Act
when
dealing with the question as to whether a debtor had made a
tacit acknowledgment of liability, states as follows:
‘…
Full
weight must be given to the Legislature use of the word ‘tacit’
in s 14(1) of the Act. In other words, one must
have regard not only
to the debtor’s words, but also to his conduct, on one’s
quest for an acknowledgement of liability.
That, in turn, opens the
door to various possibilities. One may have a case in which the act
of the debtor, which is said to be
an acknowledgement of liability,
is plain and unambiguous. His prior conduct would then be academic.
On the other hand, one may
have a case where the particular act or
conduct which is said to be an acknowledgement of liability is not as
plain and unambiguous.
In that event, I see no reason why it should
be regarded in vacuo and without taking into account the conduct of
the debtor which
preceded it. If the preceding conduct throws light
upon the interpretation which should be accorded to the later act or
conduct
which is said to be an acknowledgment of liability, it would
be wrong to insist upon the later act or conduct being viewed in
isolation…
Thirdly, the test is
objective. What did the debtor’s conduct convey outwardly?
…
Fourthly, while silence
or mere passivity on the part of the debtor will not ordinarily
amount to an acknowledgement of liability,
this will not always be
so. If the circumstances create a duty to speak and the debtor
remains silent, I think that a tacit acknowledgement
of liability may
rightly be said to arise …’
85
The Court in
Allie
recognised that the establishment of a
tacit acknowledgement of liability depended on a conspectus of all
the relevant facts. It
stated further:
‘…
it is
conceivable that there may be circumstances in which it would not be
correct to infer an acknowledgment of liability for a
balance from
the making of a payment simply because, objectively regarded, it is a
part payment. There may be something in prior
dealings between the
parties, or the prior or contemporaneous conduct of the debtor, which
would negate such an inference.’
86
In
Agnew
v Union and South West Africa
[21]
,
the Court held that determining whether there was an acknowledgement
of liability is a factual question relating to the intention
of the
debtor.
87
In
Scally
v Feltra (Pty) Ltd
[22]
,
the Court held that the test for establishing a tacit acknowledgment
of liability should be approached no differently from the
test for
proving a tacit contract, which requires the party alleging it to
show, on a preponderance of probabilities, unequivocal
conduct which
is capable of no other reasonable interpretation that that the debtor
intended to, and did in fact, acknowledge liability.
88
88.1
Whilst there may be some criticism as to the manner in which the
respondent raised its tacit
acknowledgement defence, it seems that
its argument is premised on the fact that prescription running on the
disputed claim was
interrupted by the applicant paying for its
current monthly electricity consumption charges and for which the
applicant acknowledged
liability – ie, electricity consumption
charges which were separate and distinct from the charges comprising
the disputed
claim.
88.2
Put another way; in making payment of certain amounts which were not
subject to dispute (and
were not part of the complaint), the
applicant was tacitly acknowledging that the amounts comprising the
disputed claim were, on
some or other basis (which the respondent
does not explain), conceded by the applicant to be due and owing –
and by some
(unexplained) leap of logic – no longer part of or
subject to the complaint, is simply unsustainable.
88.3
Also; what of s 11(3)(c) of the By-Laws, to which there is reference
in paragraph 41 above? This
section makes clear that a consumer (the
applicant in this instance) has an obligation to make payment of a
municipal service account
except for the amount that is subject to
the complaint. That is exactly what the applicant was doing –
and the respondent
must surely have known that.
89
If one then applies the law as articulated by the above learned
judges (with
which I respectfully agree) to the facts in this matter,
the following is clear:
89.1
the accounts / debts paid by the applicant were debts that were
separate and distinct from any
of the debts (causes of action)
constituting the disputed claim; they also arose subsequent to the 31
May 2018, which is the end
date of the period to which the disputed
claim arose;
89.2
the applicant was clearly making payment from time to time (as one
would expect a good corporate
citizen to do) of its current
consumption in respect of electricity charges.
90
It seems to me therefore that the respondent cannot seriously contend
that the
conduct of the applicant in discharging an admitted
liability for electricity consumed by it separate and distinct from
debts comprising
the disputed claim (particularly against the
backdrop of the correspondence consistently addressed by the
applicant’s attorneys,
the interdict proceedings referred to in
paragraph 4 above and the urgent order), can by any stretch of even
the most vivid or
creative imagination, be construed as some sort of
tacit admission of liability.
91
This answer or rebuttal by the respondent must therefore fail; a
classic case
of a non-sequitur.
Intervention
by the Court
92
The respondent also argues that because the application was issued on
20 March
2024, prior to the respondent having made known the outcome
of its investigations into the complaint (the latter of which
occurred
on 3 April 2024), this Court does not have authority or any
power to intervene. For this proposition the respondent relies on the
judgment of
Body Corporate of Willow and Aloe Grove v City of
Johannesburg and Another
(the ‘Willow judgment’) in
which the learned judge had the following to say in relation to the
nature of the relationship
between the parties (that is to say the
consumer and the City) and the power of the Court to interfere with
the agreement (that
is to say the Systems Act, the By-laws, the
Policy and the Consumer Agreement between the parties):
‘
It is not unusual
for the exasperated customers of municipalities the country over to
have to resort to the courts in a bid to resolve
disputes.
Regrettably, this is often sought to be done without a consideration
of the court’s function and powers in the
context of the
relationship between municipalities and citizens and the
understanding that relief sought must comply with the legal
prescripts which govern this relationship.
[23]
[6]
In this judgment I examine the legislative scheme which governs the
relationship between municipalities
and their customers with
reference to debt recovery, credit control and dispute resolution.
This examination is done with the aim
of clarifying the powers and
function of the court in this context.
[24]
[102]
If there is a relationship of customer/service provider with the
municipality then the scheme must be shown to have
been followed in
good faith. If an applicant is not a customer of the municipality
(eg, a tenant) he may approach the court on
the basis that procedural
fairness is afforded not only to customers of the municipality but to
any person whose rights would be
materially and adversely affected by
the termination of electricity supply or other service.
[25]
[105]
Both applications fall to be dismissed because it is not competent
for an applicant to seek to circumvent the machinery
of the
legislative scheme by resorting to court. An applicant may only seek
that the municipality comply with its obligations under
the scheme.
It cannot be sought that the court supplants the municipality’s
function.
[26]
[106]
The dispute resolution machinery in the By-Laws is not an optional
feature of the relationship which can be jettisoned
in favour of
approaching a court when one or the other party becomes
dissatisfied’.
In
conclusion, the court stated:
‘
The relationship
between customer and the municipality is contractual but also has
administrative and statutory components. Were
a court to interfere in
the determination of the dispute, this would amount to an
impermissible incursion onto the contract of
the parties. From an
administrative perspective, such intervention would amount to an
impermissible interference with decisions
which are to be taken by
the municipality under the legislative scheme’.
93
93.1
I do not however view this application and the relief sought as one
similar to that which the
Court in the
Willow
judgment was
dealing with. This application does not require me to enter the arena
to deal with the complaint, such as whether
for example the amount of
the disputed claim is correct or not. I am simply required to
determine, whether, based on the law as
applied to the facts I can
rely upon (and by applying the
Plascon-Evans
rule), the
respondent can sue for the amounts comprising the disputed claim or
whether its ability or right to do so has prescribed.
That I can do
without entering the arena that the
Willow
judgment warned
against.
93.2
To the extent therefore that the respondent relies upon the
Willow
judgment for support, it is distinguishable from this matter, and is
of no support to, or comfort for, the respondent’s cause
/
answer.
94
There is however another reason why I must reject the respondent’s
argument
that the
Willow
judgment applies to this application
and the relief sought by the applicant and that is this; the urgent
order allowed the applicant,
should it have so elected, to initiate
this application and if the respondent was of the view that it was
legally impermissible
for the applicant to launch this application
for relief relative to its claim of prescription, it was open to the
respondent to
appeal at least this part of the urgent order –
but it did not.
Payment
of the sum of R7 553 737.00
95
The urgent order compelled the applicant to make payment to the
respondent of
an amount of R7 553 737,00, ‘which
amount forms part of the subject matter of the disputed amount and
which payment
is made without prejudice to the applicant’s
rights and without any admission of liability’.
96
It is part of the applicant’s claim in this application that
the respondent
be ordered and directed to credit the municipal
account with, inter alia, this amount plus interest thereon at the
prescribed rate.
97
97.1
I see no reason why the respondent, who has clearly received this
amount, should not be ordered
to do so. The fact that the respondent
may have queried (from whom, I know not) where the amount should be
allocated, is not a
bar to granting the order. It, the respondent,
was actively involved in the interdict proceedings which resulted in
the urgent
order and would presumably have full knowledge as to the
facts surrounding the payment and the very specific amount (not a
round
amount) that the applicant was ordered to pay.
97.2
It is difficult to accept – and I do not accept – that
the respondent is unable to
properly allocate the amount received by
it, but assuming I am wrong and there is some difficulty (which the
respondent has not
identified), this is a difficulty that cannot be
insurmountable and in any event – however difficult it may be –
the
difficulty should not be visited upon the applicant.
97.3
I would also think that allocating a very specific amount correctly
to a very specific indebtedness
is basic accounting – something
that I believe I can assume is available inhouse to the respondent.
Order
98
The parties were required to tender the orders they proposed be made
by the court
in this matter. Not surprisingly, they differed.
99
Having regard to what is stated above, the following order is
granted:
99.1
departures from the Uniform Rules the terms of the order of court
dated 6 March 2024 under case
number: 2024/023316 – that is to
say the urgent order – are hereby noted and condoned;
99.2
the respondent’s claim against the applicant in respect of
electricity back charges from
1 June 2025 until the end of May 2018 –
ie, the disputed claim – has prescribed through the effluxion
of time;
99.3
the respondent is ordered and directed to reconcile and correct the
applicant’s electricity
account number: 2[…] (ie, the
‘municipal account’) by reversing those charges which
have prescribed (see paragraph
99.2 above) as well as all
consequential charges relating thereto, such as interest, legal fees
and disconnection / reconstruction
fees from the municipal account;
99.4
the respondent is ordered and directed to correctly credit the
municipal account by the amount
of R7 553 737.00, which
amount was paid by the applicant to the respondent in terms of the
urgent order;
99.5
the respondent shall, within ten days of the granting of this order,
furnish the applicant with
a current updated and adjusted municipal
account reflecting the adjustments consequent upon the orders in
paragraph 99.3 and 99.4
above;
99.6
the reserved costs referred to in the urgent order (ie, the urgent
interdict referred to in paragraph
4 above) are to be paid by the
respondent on the party and party scale. (I explain the scale in
paragraph 100 hereunder);
99.7
the reserved costs of the applicant’s strike out application
are to be paid by the respondent
on the attorney / client scale. (I
explain the scale in paragraph 101 hereunder); and
99.8
the costs of this application are to be paid by the respondent on the
party and party scale.
(I explain the scale in paragraph 102
hereunder).
100
100.1 Insofar
as the reserved costs in the urgent application are concerned, the
applicant contends that the respondent
ought not to have opposed same
and that the defences (or purported defences as the applicant calls
them) raised by it were spurious.
100.2 Whilst
there is in my view a strong argument to be had that at least some of
the defences raised by the respondent
were completely without
foundation (and might – had those been the only defences raised
by the respondent – been worthy
of an adverse cost order on an
attorney and client scale), one cannot say the impediment defence
raised by the respondent had no
prospect of success and was not
properly raised in this matter.
101
Insofar as the reserved costs in the applicant’s strike out
application are concerned, it is to
be noted that the respondent was
obliged to file its heads or argument and practice note by 3
September 2024 but only did so on
6 May 2025 – some seven
months later. That seven-month delay in complying with a Court order
is simply unacceptable in the
absence of an exculpatory explanation
(and none has been proffered) and on that ground alone, a costs order
on the attorney and
client scale has merit and is so ordered.
102
Insofar as this application is concerned, the applicant succeeded and
for the same reasons referred
to in paragraph 100.2 above, costs on
the attorney and client scale are in my view not merited, and costs
on the party and party
scale are ordered.
103
All the costs orders – whether party and party or attorney /
client – include the costs
of two counsel where so employed,
and on scale C.
B R KAHN AJ
Judge of the High Court
Johannesburg
Counsel for the
Applicant:
Advocate
Anthony Michael SC
Advocate Gabriel Cross
Email:
hemaligovind@evershedssutherland.co.za
Instructed
by:
Eversheds Sutherland (SA) Inc.
Counsel for Respondent:
Advocate
Emmanuel Sithole SC
Advocate
Ashanti Lifero
Email:
mokgadi@mmogokareinc.co.za
Instructed
by: Morata
Mogokare Inc. c/o MMG Attorneys
[1]
(603/2010)
[2011] ZASCA 188; [2012] 1 All SA 1 (SCA)
[2]
(365/12)
[2013] ZASCA 28
;
2013 (6) SA 1
at para 1
[3]
Union
Government (Minister of Railways) v. Sykes,
1913
A.D. 156
at para
173
[4]
(108/2014)
[2015] ZASCA 37
[5]
Ibid
at para 10
[6]
[2021]
ZASCA 114
[7]
Ibid at para 6
[8]
2001 (1) SA 481
(SCA)
[9]
‘
Subject
to the provisions of this Chapter and of Chapter IV, a debt shall be
extinguished by prescription after the lapse of the
period which in
terms of the relevant law applies in respect of the prescription of
such debt’.
[10]
‘
Save
where an Act of Parliament provides otherwise, three years in
respect of any other debt’.
[11]
Supra
2 at para 22
[12]
[2023]
ZAGPJHC 1451
[13]
[2025]
ZAGPJHC 46
[14]
[1997] ZASCA 112
[15]
[2009]
ZACC 30
[16]
[2023] ZAGPJHC 963
[17]
[2019]
ZACC 47
at paras 1 and 2
[18]
[1984]
2 All SA 366 (A)
[19]
1953
(4) SA 314
(N) at 317
[20]
1981
(2) SA 1
(C) at 5G-H
[21]
1977 (1) SA 617
(A) at 622H-623C
[22]
[2019] ZAKZPHC 36 at para 13
[23]
Supra at para 1
[24]
At para 6
[25]
At para 102
[26]
At para 105
sino noindex
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