Case Law[2025] ZAGPJHC 1137South Africa
TRGK Investments (Pty) Limited v City of Johannesburg Metropolitan Municipality (2024/007135) [2025] ZAGPJHC 1137 (3 November 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
3 November 2025
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## TRGK Investments (Pty) Limited v City of Johannesburg Metropolitan Municipality (2024/007135) [2025] ZAGPJHC 1137 (3 November 2025)
TRGK Investments (Pty) Limited v City of Johannesburg Metropolitan Municipality (2024/007135) [2025] ZAGPJHC 1137 (3 November 2025)
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sino date 3 November 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE NO: 2024-007135
(1)
REPORTABLE: YES /
NO
(2)
OF INTEREST TO OTHER JUDGES: YES/
NO
(3)
REVISED.
3
November 2025
In
the matter between:
TRGK
INVESTMENTS (PTY) LIMITED
Applicant
And
CITY
OF JOHANNESBURG METROPOLITAN
MUNICIPALITY
Respondent
This
Order is made an Order of Court by the Judge whose name is reflected
herein, duly stamped by the Registrar of the Court and
is submitted
electronically to the Parties / their legal representatives by email.
This Order is further uploaded to the electronic
file of this matter
on Caselines/CourtOnline by the Judge’s secretary. The date of
this order is deemed to be 3 November
2025.
JUDGMENT
LIEBENBERG AJ:
# Introduction
Introduction
[1]
This is yet another chapter in the tumultuous relationship between
the applicant and the respondent. The applicant
is the
registered owner of immovable property within the area of
jurisdiction of the respondent, the City of Johannesburg Metropolitan
Municipality (“the CoJ”). The applicant holds an account
with the CoJ in respect of rates, taxes and other imposts,
as well as
the costs of water and electricity consumption. Similar to so
many other customers of the CoJ, the applicant has
had endless
challenges in receiving accurate and proper accounts from the CoJ.
[2]
The source of the applicant’s discontent is five different
invoices raised by the CoJ during the period May to July
2017, when
the latter purported to reverse all previous charges in respect of
the applicant’s property and re-bill the applicant
for the
period December 2012 to July 2017 and demanding payment of
R 4 136 356.65. This amount is in respect of
property
rates, charges for consumption of water and electricity, and
interest. These particular invoices gave rise to a
dispute
being declared by the applicant during or about August 2017.
[3]
When, during July 2018, the water supply to the applicant’s
property was disconnected, the applicant’s representative
sent
an email to the CoJ, confirming the existence of the unresolved
dispute and the bases for the dispute. The applicant
received
no reply to its email, nor was the dispute resolved.
[4]
Despite the existing dispute, the CoJ disconnected electricity supply
to the applicant’s property during August
2019. As a result of
this disconnection, the applicant launched a bifurcated application
out of this Court. Part A thereof,
being for urgent relief, was
heard on 3 September 2019, and resulted in the reconnection of
services.
[5]
Part B of that application was postponed, and, after failed attempts
to reach middle ground, was enrolled for hearing
by the applicant.
The matter eventually came before Wright J who granted on order on 11
May 2021 (“the Wright order”).
The Wright order
provided
inter alia:
1. The Respondent is
ordered
to apply the business and
commercial category in its valuation roll 2013 in levying property
rates against [the applicant’s
property] for the period 1 July
2015 to 20 June 2018.
2. The Respondent is
ordered
to apply the business and
commercial category in its valuation roll 2018 in levying property
rates against [the applicant’s
property] for the period 1 July
2018 to implementation of replacement valuation roll pertaining to
the property.
3. The Respondent is
directed to deliver a duly vouched and accurate account (“the
revised account”) in respect of Municipal
Services (municipal
account number …) to [the applicant’s property] to the
Applicant within 10 (Ten) days from date
of this order.
4. The Applicant shall
lodge any objections to the revised account in writing within 5
(Five) days from the date of delivery if
[sic] the revised account;
5. The Respondent shall
deliver its response to the Applicant’s objections to the
revised account within 5 (Five) days from
the date of delivery of the
Applicant’s objections.
…
[6]
By November 2021, the CoJ corrected its accounts in relation to the
property rates and interest of those amounts previously
levied
incorrectly. In relation to municipal services, the CoJ did not
deliver the revised account within 10 days or any
time thereafter.
[7]
Consequently, the applicant launched a contempt of court application,
and obtained, on 7 June 2022 on an unopposed basis,
an order granted
by Twala J in the following terms:
1. The First
Respondent [the CoJ] is in contempt of paragraph 3 the Court Order
granted by the Honourable Judge Wright
on 11 May 2021, under case
number 30248/2018 in the above Honourable Court; in that it failed
and/or refused to deliver a duly
vouched and accurate account in
respect of Municipal Services (municipal account number …) to
[the applicant’s property]
the Applicant within 10 (Ten) days
from the date of the order granted on 11 May 2021;
2. The
Respondents [the CoJ and the Municipal Manager] are directed to
forthwith provide a duly vouched and accurate
account in respect of
Municipal Services (municipal account number …), to [the
applicant’s property] by:
2.1. Reversing all
interest charges levied on municipal account number […];
2.2. Accurately
re-billing the water and sanitation charges from 7 September 2012 to
date and providing proof of same in relation
to municipal account
number […]; and
2.3. Accurately
re-billing electricity charges from 1 December 2012 to date and
providing proof of same in relation to municipal
account number […];
2.4. Providing the
applicant with source documents relating to the re-billing of the
account.
3. If the Court order
granted by the Honourable Justice Wright on 11 May 2021, under case
number 30248/2019 is not fully complied
with within 10 (ten) calendar
days, the [City] will be fined the sum of R 25 000.00 (Twenty-Five
Thousand Rand)
per day until the Court Order has been complied
with;
…
[underlining added]
(“the Twala order”)
[8]
On 25 August 2022 Twala J varied paragraph 3 of his order by the
deletion of the underlined portion reflected above.
[9]
Attempts to reach agreement, including convening a meeting between
the parties and their legal representatives came to
naught, until 22
September 2023 when the CoJ’s former attorneys provided part of
the vouched account referred to in both
the Wright and Twala orders.
[10]
This application was launched on 25 January 2024 for an order in the
following terms:
1. Declaring
that all unpaid electrical charges, water charges and interest and/or
penalties on such charges levied
by the respondent in respect of the
[the applicant’s property] situated at […] ("the
property") on account
number […] ("the account') for
the period prior to 30 April 2017, have become prescribed in terms of
the Prescription
Act, Act 68 of 1969 ("the Prescription Act");
2. Directing
the respondent to reverse all unpaid electrical charges, water
charges and interest and/or penalties on
such charges levied by the
respondent on the account in respect of the property for the period
prior to 30 April 2017.
[11]
The present application was marred by several delays caused by the
CoJ’s failure to adhere to the Rules of Court
and the practice
directives of this Division. It was some 18 months after this
application was launched that it was heard
on the opposed motion
roll.
CONDONATION
[12]
At the hearing, the first order of business was the CoJ’s
interlocutory application for condonation for the late
filing of its
answering affidavit, which the applicant opposed. Having heard
argument, this Court dismissed the interlocutory
application,
intimating that reasons will follow, and the Court directed that the
matter is to be argued on the founding affidavit
only. These
are the reasons for the order so granted.
[13]
The CoJ’s non-compliance with the Rules of Court must be gauged
against the following uncontroverted facts:
a. The present
application was served on the CoJ’s representatives by the
sheriff of the court on 31 January 2024.
b. Out of courtesy,
the applicant’s attorneys directed an email to Mr Louw of the
CoJ’s then-attorneys of record
(“
M & R
”)
on 21 February 2024 confirming that M & R had been invited to
CourtOnline and affording the CoJ time until 8 March
2024 to file its
answering affidavit.
c. In his email of
26 February 2024, Mr Louw advised that M & R it did not have
instruction from the CoJ regarding this
application and would advise
the in-house legal advisors of the matter. M & R
requested a copy of the application
via email. The applicant’s
attorneys obliged the next day.
d. When no word was
received from the CoJ or M & R, the applicant caused the matter
to be enrolled in the unopposed motion
court roll of 13 June 2024.
e. On 15 May 2024,
Ms Kagiso of Ncube Inc telephoned the applicant’s attorneys
regarding the matter. On the same
day, the CoJ’s notice
of intention to oppose the application was delivered, that is some
four months after service of the
application on the CoJ.
f. On Thursday 6
June 2024, being a day after the answering affidavit was due for
service, the CoJ’s attorneys requested
a copy of annexure
“PS10” to the founding affidavit, notwithstanding the
entire application with all the annexures
thereto having been
uploaded on CourtOnline, and it previously having been emailed to M &
R. Nonetheless, the applicant’s
attorneys dispatched a copy of
the annexure on Monday, 10 June 2024.
g. In the face of
the CoJ’s opposition, the application was removed from the
unopposed motion roll of 13 June 2024.
h. Still, the CoJ’s
answering affidavit was not delivered.
i. By notice served
on 4 September 2024, the application was again enrolled on the
unopposed motion roll for 16 September
2024.
j. Just after 8:00
on the morning of 16 September 2024, the CoJ’s attorney
dispatched an unsigned version of the answering
affidavit.
k. It was only at
9:50 on the morning of 16 September 2024, and unbeknownst to the
applicant’s counsel and the Court,
that the CoJ’s
answering affidavit together with an application for condonation, was
served.
l. There was no
appearance for the CoJ at hearing on 16 September 2024, and the Court
granted the order sought. By all
accounts, the presiding judge
insisted on an affidavit from the CoJ’s attorneys to explain
the late filing of the answering
affidavit and the non-appearance in
his Court at 10:00 on 16 September 2024. Such an affidavit was
filed on 17 September
2024.
m. Subsequently,
and by agreement between the parties, the order of 16 September 2024
was recalled on 18 September 2024, and
replaced with an order
removing the application for the unopposed roll.
[14]
Rule 27 of
the Uniform Rules of Court deals with the extension of time periods,
the removal of bar and condonation. Both subrules
(1) and (3)
require that ‘
good
cause
’
be shown. The subrules afford a court a wide discretion which
must be exercised in the interests of justice.
[1]
Condonation is not merely for the asking. A party seeking condonation
must make out a case entitling it to a court's indulgence.
This
includes showing sufficient cause and providing a full and reasonable
explanation for the non-compliance with the rules or
a court's
directions.
[2]
[15]
Litigants
cannot disregard the court rules with impunity.
[3]
When a litigant realises that it had not complied with the rules, it
must make application for condonation without delay, otherwise
it
will have to explain, not only the reasons for the non-compliance,
but also the reasons for the delay in seeking condonation.
[4]
[16]
In
exercising its discretion, a court must consider weighty factors
including the degree of non-compliance, the explanation for
such
non-compliance, the importance of the matter, and defaulting party’s
prospects of success on the merits.
[5]
It is not a mechanical process, but one involving the
balancing of more often than not, competing factors.
[6]
For non-compliance with court rules prejudices not only other
litigants involved but also the administration of justice.
[7]
[17]
The CoJ served its answering affidavit incorporating its application
for condonation some nine months after service of
the application,
and four months after delivery of its intention to defend. The
explanation proffered for this delay is tenuous
and lacklustre at
best. Given the paucity of the allegations in support of the
application for condonation, the full extent
thereof is quoted below:
78. As indicated above,
the Municipality is an organ of state and it is entrusted with the
critical obligation towards the residents
of its jurisdiction.
79. The Municipality and
its representatives appreciate the need to comply with the rule of
this honourable court.
80. Further to the above,
the relief sought in the present application is of great importance
and that the Municipality contents
[sic] that it is would not serve
the interest of justice if the applicant's application was to proceed
with on an unopposed basis.
81. As indicated above,
upon receipt of the applicant's application, which on its own is
voluminous and deals with the historical
meters and issues which goes
as far back as 2012 and to this extent the Municipality's
representatives deemed it appreciate [sic]
in order to avoid
litigation to inter alia:
81.1 consult with the
Municipality representatives from different relevant departments
which include the billing and the CoJ power
officials;
81.2 invite and meet with
the applicant and its representatives in order to explain the factual
basis of the account which happened
between the parties.
82. The parties and their
representative met and discussed the issue of the meters and it was
appreciated by the applicant and its
representatives that there is
incorrect billing on any of the invoices submitted.
83. The point of law to
be debated in this application is very critical in that the applicant
does not seek any remedial prayer
against the alleged incorrect
billing, in fact, the applicant accepts that it is liable to the
Municipality but claims that the
outstanding amount has prescribed.
84. I am advised that it
would be in the interest of justice for this honourable court to
permit the filing of this affidavit and
also consider the contents
and evidence attached to it.
85. The relief sought in
the notice of motion are serious and if granted they will have
divesting and adverse impact on the Municipality's
endeavour to
collect revenue and this will negatively affect the service delivery.
86. I therefore plead
that in the interest of justice this affidavit stands to be admitted.
87. I am further advised
that the interest of justice and fairness would not be served in the
event where the applicant's application
is heard in absence of the
Municipality's affidavit and that the applicant would not be
prejudiced by the granting of the condonation
for many reasons, such
as, that the applicant continues to enjoy the services and the
granting of the condonation would not change
the status or the
position of the applicant.
88. In addition to the
above, it is worth mentioning that the current Municipality's
representatives came in as a result of the
former attorneys failure
to oppose the present application and they took every possible step
to provide this Court with the facts
and evidence in opposing the
drastic relief sought by the Applicant in its notice of motion.
89. I therefore plead for
the condonation to be granted as fully set out in the notice of
motion.
[18]
The CoJ made no attempt to explain, fully or otherwise, the reasons
for its non compliance with the Rules of Court
and proffered no
basis upon which this Court could find that the excuse proffered is
reasonable in the circumstances.
a.
It gives no details of the date of alleged meetings held with
“
Municipality representatives
”.
b.
There is no indication of the alleged meeting between the parties and
their representatives. This
must be gauged against the facts
proffered by the applicant, not only in its answering affidavit to
the condonation application,
but the founding affidavit in the main
application, that the only such meeting between the parties occurred
prior to the institution
of this application.
c.
There is also no explanation for the contradictory allegations in
paragraph 88 of the affidavit (quoted
above) and the contents of M &
R’s letter of 26 February 2024 recording that M & R did not
have any instructions
from the CoJ regarding the present application.
[19]
The uncontroverted facts referred to above together with the paucity
of the explanatory facts the CoJ proffered accentuate
the perception
that the CoJ acted with impunity in utter disdain for the Rules of
Court.
[20]
As to the CoJ’s defence to the relief sought, the answering
affidavit is replete with extensive quotations from
legislation, its
own bylaws and various judgments but scant on factual allegations to
gainsay the applicant’s allegations
of the CoJ’s
disregard of the rights of its consumer, the applicant, and orders of
this Court. In sum, the answering
affidavit did not lay a
factual foundation for the CoJ’s supposed defence.
[21]
To add insult to injury, the CoJ’s contempt of Court, its
rules, and its practice directives extended to its failure
to file
its heads of argument timeously. This is demonstrated by the
following facts:
a.
On 12 August 2025, the applicant sought and obtained an order
compelling the CoJ to deliver its practice
note, heads of argument,
list of authorities and chronology within five days from service of
the order.
b.
Under cover of an email dated 12 August 2025, the applicant’s
attorneys dispatched a copy of the
(unsigned) order granted that
day. The duly signed and uploaded order was served via email on
29 August 2025.
c.
It was only at 21:34 on Thursday, 4 September 2025 at the CoJ’s
heads of argument were uploaded
onto the electronic case file.
Needless to say, the CoJ’s representatives did not cooperate in
facilitating the compilation
of joint practice note, as mandated by
the practice directives of this Court.
[22]
During argument, Mr Sithole, who appeared for the CoJ, repeatedly
called for condonation to be granted as the matter
is of “
great
importance
” to his client, and to do so in the interests of
justice.
[23]
A prayer for condonation to be granted on the basis of the interests
of justice cannot and does not exist in a vacuum.
The interests of
justice involves balancing the rights, responsibilities, and
interests of both parties as well as the administration
of justice.
The ultimate determination is case-dependant, and requires due regard
being had to all relevant facts and circumstances
of the particular
case. Nonetheless it remains incumbent on the CoJ to make out a
proper case for the indulgence it seeks.
[24]
Had the CoJ regarded the matter so important, one would have expected
it to take all reasonable steps timeously to obtain
a proper
ventilation of the issues. This, the CoJ did not do.
Accordingly, the application for condonation was refused.
Further, there is no cogent reason why costs in respect of the
interlocutory application should not follow the result.
THE
APPLICANT’S CASE
##
## The impugned invoices
The impugned invoices
[25]
The applicant’s query was aimed at rates, taxes, and water and
electricity consumption charges raised in five different,
jumbled and
unintelligible invoices dispatched during the period May to July
2017. These objectionable invoices are:
a.
In respect of
May 2017
, the invoice dated 25 May 2027
reflecting an amount of R 28 537.65 due and payable on 25
May 2017. Yet, it includes
to debits in respect of property
rates dating back to November 2013, in an aggregate of
R 1 506 590.36. In
respect of water and
sanitation, over a reading period of 1 707 days, between 7
September 2012 and 10 May 2017, the CoJ raised
debits and passed
credits in an aggregate of R 4 513 319.27.
Additionally, cleaning levies and surcharges
were raised, resulting
in “
Current Charges
” of R 6 130 081.57
b.
The invoice dated 20 June 2017, for
June 2017
, reflecting a
payment of R 31 680.05, and recording the amount due as
-R 3 467 650.12. The invoice
includes five
different credits having been passed in respect of electricity
consumption, with no refence to the period of such
consumption,
together with a credit in respect of VAT.
c.
The invoice dated 22 June 2017, but in respect of
March 2017
,
depicts an amount of R 3 654 040.89 as due for payment
on 22 June 2017. The invoices related only electricity consumption
charges, based on estimated readings over a period of 1 553 days
between 1 December 2012 and 2 May 2017, and a 2% surcharge
on
business charges, resulting in “
Current Charges
”
of R 7 361 219.85
d.
The invoice dated 1 July 2017, also for
June 2017
, depicts an
amount of R 4 136 356.65 as due for payment on 17 July
2017. The invoice reflects an amount of
R 3 705 295.59
as being 30 days past due date. It details only electricity
consumption charges, based on partly
actual, partly estimated
readings over a reading period of 92 days between 3 March and 2 June
2017, and a 2% surcharge on business
charges, resulting in “
Current
Charges
” the amounting to R 426 461.38.
e.
The invoice dated 6 July 2017, for
July 2017
, shows “
Current
Charges
” which include property rates, water and sanitation
charges, a city cleaning levy, and a 2% surcharge on business
services,
amounting to R 97 774.54. Yet, the amount
outstanding is R 4 233 823.21 which was payable on 21
July 2017.
[26]
Faced with these different invoices the applicant, with the
assistance of an agent, lodged a dispute with the CoJ and
received a
reference number. At the time, the CoJ was threatening the
applicant with disconnecting its water and electricity
supply and
attempted to force the applicant to provide the CoJ with an
acknowledgement of debt. Refusing to provide such
a document,
the applicant made two payments of R 351 997.56, without
prejudice and in good faith, one on 28 October 2017
and the second on
20 December 2017. These payments were made to the hope of
preventing continued threats of disconnection.
In addition to
these two payments, the applicant continued to make payments monthly
in amounts equal to the “
Current Charges
”
reflected on the CoJ’s subsequent invoices.
[27]
The bases for the applicant’s dispute include that:
a.
The applicant had paid in full the invoices previously dispatched by
the CoJ, because those invoices
correctly reflected that a part of
the applicant’s property was vacant, and another portion had
been used for warehousing.
b.
Subsequently, the portions of the property have been used as part of
the manufacturing business, rendering
the “back charge”
and recalculation of the estimated consumption charges on the
previously unused portions incorrect.
c.
The charges recalculated between 2012 and 2016 have become
prescribed.
d.
The additional payments made by the applicant were made as a gesture
of good intent which had not been
reciprocated by the CoJ.
e.
Despite several reports of a leaking water meter, it was yet to be
repaired.
f.
The applicant was yet to received calculations or explanations to its
query.
##
## The 2019 application
The 2019 application
[28]
The CoJ dragged its proverbial feet in resolving the dispute, and
despite the existing dispute, either threated to or
in fact
disconnected municipal services to the applicant’s property.
This led to the applicant launching a bifurcated application
in
August 2019 under case number 30248/2019. Part A thereof was
heard in the urgent court on 2 September 2019, and the CoJ
was
ordered to reconnect electricity supply to the applicant’s
property.
[29]
In a letter dated 30 September 2019, M & R recorded the CoJ’s
proposal for the parties to resolve the matter
amicably by convening
a meeting, once the CoJ had obtained the necessary documentation.
The proposed meeting was eventually
convened on 11 March 2020,
but no settlement could be reached. Accordingly, the applicant
caused Part B of the application
to be set down for hearing on 24
March 2020. Because of correspondence from M & R, conveying
the CoJ’s wish to
resolve the dispute amicably and its
continued attempts to obtain necessary documentation, the matter was
removed from the roll.
[30]
Then the COVID-19 pandemic and resultant national lockdown struck.
By November 2021, the CoJ still had not reacted
to correspondence
from the applicant’s attorneys. Accordingly, Part B was
enrolled from hearing on 11 May 2021 when
the Wright order was
granted. The Wright order addressed both property rates to be
raised in accordance with the correct
category on the relevant
valuation rolls, as well as the delivery of a revised account in
respect of municipal services.
##
## The contempt
application
The contempt
application
[31]
Ostensibly, the Wright order galvanised the CoJ into adjusting the
property rates levied on the applicant’s property,
in
accordance with the correct valuation rolls, and only in November
2021 passing a credit in respect of interest charged on the
incorrect
property rates. Yet, despite numerous demands to comply with
the Wright order, the CoJ failed to deliver duly vouched
and accurate
accounts.
[32]
The CoJ’s failure gave rise to the Twala order of 7 June 2022,
in terms whereof the CoJ was convicted of contempt
of court,
sentenced to payment of a fine, and again directed delivery of an
accurate account with specific reference to the items
in dispute and
the relevant time period, including by reversing all interest
charges, accurately re-billing the water and sanitation
charges from
7 September 2012, the electricity charges from 1 December 2012, and
providing the applicant source documents. Pertinently,
the
Twala order was granted on an unopposed basis.
[33]
It was only some 15 months after the Twala order, and under cover of
M & R’s letter dated 22 September 2023,
that the CoJ
provided the source documents related to the re-billing of the
applicant’s electricity account as per the May
2017 invoice.
The source documents included:
a.
A commissioning sheet dated 26 May 2016, confirming the installation
of a new electricity meter at the
applicant’s property.
Apparently, the new meter was necessitated by the fact that the
previous meter had not been registering
all the consumption because
the “CT ratio” had not been programmed accurately.
b.
A spreadsheet containing the data used to re-bill the account, based
on readings obtained from the old
meter before it was reprogrammed
and after it was reprogrammed with the correct “CT ratio”.
c.
The spreadsheet also reflected that the applicant was underbilled
between 30 April 2014 and 30 April
2017, and it reflected the CoJ’s
actual reading sheet prior to re-programming of the electricity meter
and the new reading
sheet used to re-bill the applicant.
[34]
In respect of the applicant’s query regarding its water
consumption, M & R relayed their instructions that
Joburg Water
had attended at the applicant’s property and advised that the
applicant must apply for a new water connection
through the City's
revenue department. M & R undertook to elaborate further on the
CoJ’s findings upon receipt of its
site inspection report.
[35]
The letter concluded “…
the query on your client's
electricity account is deemed to be resolved ln terms of Section
11(5) of the CoJ’s Credit Control
and Debt Collection Bylaw and
therefore, the amounts due is payable within a period of 21 days.
”
[36]
This application followed in January 2024.
#
# The legislative framework
in respect the CoJ and its consumers
The legislative framework
in respect the CoJ and its consumers
[37]
The CoJ is a municipality established in terms of the Constitution
and derives its powers to impose fees, charges, rates
and other
municipal taxes from section 229(1)(a) of the Constitution.
##
## The Municipal Systems
Act
The Municipal Systems
Act
[38]
The Local
Government: Municipal System’s Act
[8]
(“
the
Systems Act
”)
envisages a number of different policies which a municipality, such
as the CoJ, must adopt and implement, including by
the adoption of
bylaws.
[39]
Part 1 of
Chapter 8 (being sections 74 to 75A) of the Systems Act caters for
the adoption and implementation of a tariff policy
on the levying of
fees for municipal services,
[9]
which policy must comply with the provisions of the System’s
Act, and for the adoption of bylaws to give effect to such tariff
policy and to enforce such policy.
[40]
Chapter 9 (comprising section 95 to 104) of the Systems Act regulates
credit control and debt collection measures by
a municipality.
[41]
By virtue of section 95, in relation to the levying of rates and
other taxes by a municipality and the charging of fees
for municipal
services, a municipality must within its financial and administrative
capacity
inter alia
:
(c) take
reasonable steps to ensure that users of services are informed of the
costs involved in service provision,
the reasons for the payment of
service fees, and the manner in which monies raised from the service
are utilised;
(d)
where
the consumption of services has to be measured, take reasonable steps
to ensure that the consumption by individual users of
services is
measured through accurate and verifiable metering systems
;
(e)
ensure
that persons liable for payments, receive regular and accurate
accounts that indicate the basis for calculating the amounts
due;
(f) provide
accessible mechanisms for those persons to query or verify accounts
and metered consumption, and appeal
procedures which allow such
persons to receive prompt redress for inaccurate accounts;
(g)
provide
accessible mechanisms for dealing with complaints from such persons,
together with prompt replies and corrective action
by the
municipality
;
(h) provide
mechanisms to monitor the response time and efficiency in complying
with paragraph (g) …
[underlining added]
[42]
Section 96
mandates a municipality to collect all money that is due and payable
to it, subject to the Systems Act and any other
applicable
legislation. For this purpose, it must adopt, maintain and
implement a credit control and debt collection policy
which is
consistent with its rates and tariff policies, and which complies
with the provisions of the Act. The contents of a municipality’s
credit control and debt collection policy are prescribed in section
97 of the Act. Such policy must provide for debt collection
procedures and mechanisms,
[10]
interest on arrears, where appropriate,
[11]
extensions of time for payment of accounts,
[12]
and the termination of services or the restriction of the provision
of services when payments are in arrears.
[13]
[43]
Section 102 of the Systems Act, dealing with accounts, stipulates:
(1) A municipality may-
…
(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.
(2)
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.
[44]
In
Body
Corporate of Croftdene Mall v eThekwini Municipality
[14]
the Supreme Court of Appeal held that section 102(2) of the Systems
Act requires that the dispute must relate to a specific amount
claimed by the municipality. Thus, when raising a dispute, a
customer, such as the applicant, 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 customer’s
objection thereto. If an item is properly identified and a dispute
properly raised, then debt collection and credit control measures
cannot be implemented in relation to that item. But such
measures could be implemented in respect of 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.
[45]
Ultimately,
the Systems Act requires that disputes in relation to specific
charges on a municipal account must be dealt with through
a
co-operative structure which places obligations on both the customer
and the municipality. It affords the customer procedural
fairness, which includes an internal appeal mechanism provided for in
section 62.
[15]
The
CoJ’s relevant Bylaws
[46] To ascertain
whether the applicant’s complaints fall within the ambit of
section 102(2), it is necessary to investigate
the provisions of the
CoJ’s Bylaws.
[47]
Even prior to the promulgation of the Systems Act, the CoJ had
adopted various Bylaws also in relation to credit control
and debt
collections, electricity, and water services, which Bylaws have been
amended from time to time. As the applicant’s
dispute
with the CoJ arose during or about July/August 2017, the applicable
Bylaws are:
a.
The Credit Control and Debt Collection Bylaws of 2004 (“
the
Credit Control Bylaws
”);
b.
The Greater Johannesburg Metropolitan Electricity Bylaws of 1999
(“
the Electricity Bylaws
”); and
c.
The Water Services Bylaws of 2003 (“
the Water Bylaws
”).
The
Credit Control Bylaws
[48]
Chapter 3 of the Credit Control Bylaws regulates matters of account
administration.
[49]
In terms of section 10, which deals with account administration, the
CoJ must endeavour to ensure
inter alia
accurate metering of
consumption at fixed intervals with the minimum delay; accurate
and up-to-date information in accounts; accurate
monthly
accounts with the application of the appropriate and
correct prescribed fees, rates and other related
amounts due and payable; and the timely dispatch of accounts.
[50]
Section 11 pertains to queries and complaints in respect of accounts,
and provides
inter alia
that
:
(3) If a query or
complaint contemplated in subsection (1), is lodged –
(a) before the due
date for payment specified in the account concerned, an
amount at least equal to the average amount
that was due and payable
in respect of rates or the municipal
service concerned, as specified in the accounts
for the
preceding three months which are not in dispute, must be paid by
the customer concerned before or on such due
date; or
(b) after the due
date for payment specified in the account concerned, such
query or complaint must if the full amount
in dispute has not been
paid, be accompanied by at least the amount contemplated in paragraph
(a); and
(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.
11(4) An authorised
official must register the query or complaint and provide
the customer with a reference
number.
11(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.
[underlining
added]
[51]
By virtue of section 12(1), a customer
may
lodge an appeal
against the decision made in terms of section 11(5)(b) by giving
written notice of the appeal and reasons to the
chief executive
officer of the service provider concerned, within 21 days of the date
of notification of the decision.
[52]
Section 14 affords the CoJ methods, in addition to normal civil legal
processes, to secure payment of any arrears.
These methods
include the termination or restriction of municipal services.
[53]
By virtue of section 20(2), the CoJ is entitled to levy interest on
overdue accounts.
The
Electricity Bylaws
[54]
Section 9 of the Electricity Bylaws deal with accounts, and provide
inter alia
that
:
(2)
The council may,
during any meter reading period, render to the consumers a
provisional account in respect of any part of such period
which part
shall as close as practically possible be a period of thirty days
and
the amount of which account shall be determined as provided in
subsection (4) and
shall as soon as possible after the meter
reading at the end of such period render to the consumer an account
based on the actual
measured consumption
and demand during that
period, giving credit to the consumer for any sum paid by him on a
provisional account as aforesaid.
…
(4) The amount of a
provisional account referred to in subsection (2) shall be determined
by the council by reference to such previous
consumption on the same
premises as would in its opinion constitute a reasonable guide to the
quantity of electricity consumed
over the period covered by the
provisional account: Provided that where there has been no such
previous consumption, the council
shall determine the amount of the
said account by reference to such consumption on other similar
premises which, in its opinion,
affords reasonable guidance.
(5)
A consumer's
decision to dispute an account shall not entitle him to defer payment
beyond the due date stipulated in the account
.
…
(7)
When it appears
that a consumer has not been charged or incorrectly charged for
electricity due to the application of an incorrect
charge or on any
other grounds other than inaccuracy of a meter, the council shall
conduct such investigations, enquiries and tests
as it deems
necessary
and
shall, if satisfied that the consumer should
have been charged or has been incorrectly charged, adjust the account
according
:
Provided that no such adjustment shall be made in
respect of a period in excess of 6 months prior to the date on which
the incorrect
charge was observed or the council was notified of such
incorrect charge by the consumer
. Where such consumer is found to
have been correctly charged, the consumer shall be charged the cost
of conducting such investigations,
enquiries and tests.
[underlining added]
[55]
Matters concerning the reading of meters are stipulated in section
10, and the testing of meters are dealt with in section
12.
[56]
Section 14(1) allows the CoJ to disconnect the supply of electricity,
without notice, where any charges due are in arrears.
The
Water Bylaws
[57]
Sections 8 and 9 of the Water Bylaws contain provisions relating to
payment for water services at the prescribed fee
for the particular
water services provided, and for the rendering of accounts, as well
as the adjustment of accounts in the event
of a meter being
defective.
[58]
Those sections dealing relating to queries and complaints about water
accounts were deleted by the Credit Control Bylaws
of 2004.
# the prescription act, 68
of 1969
the prescription act, 68
of 1969
[59]
The applicant’s case is not premised on the provisions of the
CoJ’s Bylaws. The relief it seeks is
squarely founded on
the provisions of the Prescription Act, which is pertinently referred
to in the Notice of Motion and in its
founding affidavit and
addressed in its heads of argument.
[60]
Because
prescription raises questions of both fact and law, an applicant must
properly raise it in its founding affidavit and traverse
the factual
substratum of its claim of prescription.
[16]
[61]
Accordingly,
in motion proceedings, it necessitates the applicant, who bears the
onus, to properly raise prescription in its founding
affidavit,
setting out the requisite evidence in support of its claim. If
it is patent that the period of prescription has
lapsed, the
applicant will have a complete defence to CoJ’s claims.
Yet should the CoJ raise interruption of prescription
or a delay in
the completion thereof, it bears the onus of proof on this score.
[17]
[62]
The parties
are agreed that different periods of prescription apply to the
different categories of charges levied by a municipality:
[18]
a. In respect of
property rates, sewer and refuse charges, being a type of tax, a
30-year period applies.
b. In respect of
water, electricity and gas consumption charges, a three-year period
of prescription applies.
[63]
The running
of prescription commences when the “
debt”
is due.
[19]
The correct
approach to be taken in determining when a “debt is due”
remains as enunciated in
Farocean
Marine (Pty) Ltd v Minister of Trade and Industry
as follows:
[20]
Prescription
commences to run “as soon as the debt is due” (s 12(1)).
Although the “date on which a debt arises
usually coincides
with the date on which it becomes due” this need not always be
the case. The question is thus when the
debt the respondent seeks to
recover arose and when it became due. A money debt is “due”
when there is a “liquidated
monetary obligation presently
claimable by the creditor for which an action could presently be
brought against the debtor. Stated
differently, the debt must be one
in respect of which the debtor is under an obligation to pay
immediately.
[64]
According to section 9 of the Credit Control Bylaws, the final date
for payment must be contained in the accounts rendered
by the CoJ to
its customers.
[65]
Thus,
prima facie,
the CoJ’s claims in respect of water
consumption charges of R 4 513 319.75 for the “reading
period”
7 September 2012 to 10 May 2017, reflected in its
invoice dated 25 May 2017, which was due for payment on 25 May 2017
prescribed
at midnight on 24 May 2020.
[66]
Similarly, at face value the claim of R 7 221 745.47
in respect of electricity consumption charges for
the reading period
1 December 2012 to 2 March 2016, reflected in the invoice dated 22
June 2017, being the same date for payment,
prescribed at midnight on
21 June 2020.
#
# The applicant’s
SUBMISSIONS
The applicant’s
SUBMISSIONS
[67]
Relying on
Nature’s
Choice
,
[21]
the applicant argued that prescription of the CoJ’s claim
commenced running when the CoJ gained knowledge of the erroneous
readings on the meters, in May 2016, when it tested and installed a
new meter, or, at the latest when it issued its invoice dated
24 May
2017 seeking immediate payment from the applicant.
[68]
In
Nature’s
Choice Farms (Pty) Ltd v Ekurhuleni Metropolitan Municipality
[22]
the
plaintiff sought a declarator that it was not indebted to the
municipality for water usage, contending that the claim had become
prescribed and unenforceable, not relying on the Prescription Act,
but based on provisions in the municipality’s schedules
of
tariffs for water,
[23]
which
form part of the broader legislative framework under the Systems Act
and has the force of a bylaw.
[24]
Although the facts in the present matter are markedly
distinguishable from those in
Nature’s
Choice
,
the Supreme Court of Appeal restated and reconfirmed the approach
enunciated in
Farocean
Marine
for determining when a debt is due.
[25]
[69]
In relation
to any alleged interruption of prescription, the applicant submitted
that the two payments it made in the second half
of 2017 did not
constitute an acknowledgement of indebtedness as envisaged by section
14(1) of the Prescription Act, as holistically
viewed and in its
proper contents, those payments were never intended to be an
acknowledgement of indebtedness.
[26]
But even if those payments were taken to have interrupted
prescription, then by December 2020, being three years later, the
CoJ’s claims in respect of the consumption charges would have
prescribed.
[27]
[70]
In response to any suggestion that the applicant’s continued
payments of the monthly “
Current Charges
”
reflected on the CoJ’s invoices, it was submitted that such
payments were made pursuant to the Bylaws, which oblige
a customer to
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
.”
Accordingly, so the argument went, the applicant’s payments
cannot be allocated at the CoJ’s will to the “oldest
debt”, as these payments were made with the clear intention
that they are made only in respect of the “
Current Charges
”
and not the disputed amounts.
[71]
In paragraphs 71 to 79 of its heads of argument, the applicant
addressed any reliance the CoJ may place on section 102(2)
of the
Systems Act as constituting a prohibition against the CoJ collecting
any amount which the application has disputed. The
applicant also
submitted that section 13 of the Prescription Act, regulating the
delay in completion of prescription in certain
circumstances, does
not apply to the matter at hand.
[72]
During argument, Mr Du Plessis SC, for the applicant, contended that
section 102(2) of the Systems Act found no application
to his
client’s case, as the dispute it raised did not concern a
“
specific amount”.
Also, it was submitted
that the provisions of the section relate to enforcement mechanisms
only, whereas prescription does not fall
within the ambit of the
section.
THE
COJ’S SUBMISSIONS
[73]
Condonation for the late filing of the answering affidavit having
been refused, the CoJ’s arguments in both its
heads of argument
and at the hearing, were confined to the case made out in the
founding affidavit, and points of law arising therefrom.
[74]
The CoJ argued that the declaratory order sought would have the
effect of:
a.
Setting aside the Twala order alternatively constitute a
contradiction of that order, which obliges the
CoJ to reverse and to
rebill the applicant “
from 2012 to date
”.
b.
Undermining the principle of law that a single judge cannot rule on
the same issue ruled on by another
judge. For as long as the
Twala order remains extant, it must be complied with, and this Court
cannot interfere with the
procedure of the resolution of the dispute
between the parties; and
c.
Undermining the binding nature of the section 102 of the Systems Act,
and by the Bylaws and policies
enacted by the CoJ. Contending that
the applicant’s dispute raised in 2017 remains unresolved, it
was argued that the applicant
seeks an order to avoid paying the
amount due and payable to the CoJ for services consumed, by having
such amount declared to have
prescribed.
d.
This Court
acting outside its jurisdiction and going against judgments of this
Division and others. Relying in
Willow
and Aloe Grove,
[28]
the CoJ argued that until such time that it had concluded its
processes in resolving the dispute between the parties, this Court
has no power to interfere.
[75]
It was also contended that the declaratory relief sought seeks to
ignore the Twala order and intends to do away with
the obligations
entrusted to the CoJ to rebill the account.
[76]
In part [G]
of its heads of argument, the CoJ, and with reference to
City
of Tshwane Metropolitan Municipality v Glofurn (Pty) Ltd,
[29]
argued that it was precluded by section 102(2) of the Systems
Act from implementing its debt collection and credit control
measures, including the institution of legal proceedings, for as long
as the dispute remained unresolved.
SUPPLEMENTARY
SUBMISSIONS
[77]
As the
intersection between section 102(2) of the Systems Act and section
13(1) of the Prescription Act constitutes a point of law
which is
apparent from the founding affidavit, this “
court
is not only entitled, but is in fact also obliged,
mero
motu
,
to raise the point of law and require the parties to deal therewith.
Otherwise, the result would be a decision premised on an
incorrect
application of the law. That would infringe the principle of
legality
.”
[30]
Accordingly, the Court pertinently raised during argument, with
both with Mr Du Plessis and Mr Sithole, the question whether
section
102(2) of the Systems Act constituted a “
superior
force including any law
”
as contemplated in section 13(1)(a) of the Prescription Act, which
would delay the completion of prescription pending resolution
of the
dispute raised by the applicant.
[78]
At the hearing, Mr Du Plessis restated the submission that the
applicant’s case that the charges had become prescribed,
does
not fall within the ambit of the section 102(2).
[79]
Similarly, Mr Sithole persisted with the argument contained in his
heads of argument, that the dispute raised by the
applicant in 2017
was yet to be resolved; and the M & R’s letter of 22
September 2023 did not amount to a final resolution
of the dispute.
The Court’s cynical enquiry about how long the CoJ’s
investigation was still to last, was met by obfuscation
and
avoidance.
[80]
Additionally, the CoJ submitted, without reference to any
authorities, that because the dispute is yet to be resolved,
the
amount is not “
due
”, and it is only once a debt is
claimable that prescription commences running.
[81]
Not entirely satisfied, I requested both counsel to prepare
supplementary submissions on the interplay between section
102(2) of
the Systems Act and section 13(1)(a) of the Prescription Act.
Both parties’ further submissions were received
and considered.
##
## The applicant’s
further submissions
The applicant’s
further submissions
[82]
In its supplementary submissions the applicant contended that, for a
finding that section 102(2) of the Systems Act is
applicable, there
had to be a finding on the facts that there was a dispute between the
applicant and the respondent concerning
a specific amount claimed by
the CoJ, which would prevent the CoJ in law from issuing a summons to
interrupt the running of prescription
and that the debt has therefore
not become prescribed.
a.
Firstly,
relying on
Tarica
and another v City of Johannesburg Metropolitan Municipality
[31]
and with reference to
Croftdene
,
[32]
it was contended that the applicant’s “dispute” did
not meet the criteria of the existence of a dispute.
b.
Secondly, it was submitted that the CoJ’s continued threats to
and disconnection of the municipal
services to the applicant’s
property after 2017 evidenced that the CoJ never considered there to
be a dispute for purposes
of section 102(2). These disconnections and
threats resulted in the applications launched by the applicant to
protect its interests.
c.
Thirdly, whilst maintaining its position that section 102(2) finds no
application, it was argued, relying
on
Tarica
, that the
provisions of section 102(2) do not constitute an impediment as
envisaged by section 13(1)(a) of the Prescription Act.
It
was also submitted that, in so far as the Systems Act makes not
reference to the Prescription Act, the former does
not influence the
latter.
d.
In the final instance, the applicant contended that section 13 of the
Prescription Act envisages a type
of impediment that makes it
objectively impossible for the creditor to take steps to interrupt
prescription.
[83]
In the alternative, the applicant argued that, on the respondent’s
version
ex facie
the letter of M & R dated 22 September
2023, the dispute had been resolved with dispatch of the letter.
Although the
applicant still did not agree with the calculations set
out in the letter, this did not amount to the existence of a
“dispute”
for purposes of section 102(2). Consequently,
the alleged impediment ceased to exist on 22 September 2023, and the
running of prescription
was completed on 23 September 2024.
##
## The CoJ’s
further submissions
The CoJ’s
further submissions
[84]
The CoJ’s supplementary submissions were couched in belligerent
and disrespectful language, with unnecessary veiled
threats against
this Court, whom it accused of making out a case for the applicant
and raising the provisions of section 13 (1)
of the Prescription Act
mero motu,
thereby seeking to decide the matter on facts not
pleaded by the applicant. These accusations are without factual
foundation,
as reference had been made to both section 102(2) of the
Systems Act as well as section 13(1) of the Prescription Act in the
heads
of argument filed by the parties.
[85]
The CoJ contended that, on a proper reading of the founding
affidavit, the applicant did not accept that the dispute
had been
resolved by 22 September 2023, “
but the Court appears to
accept that the dispute between the parties was resolved … in
order to invoke the provisions of
section 13 (1) of the Prescription
Act.
” This being so, the applicant was obliged to invoke
the internal appeal process provided for in section 12 of the Credit
Control Bylaws.
ANALYSIS
[86]
Respectfully, I disagree with the reasoning of Mahon AJ in
Tarica
in respect of the interplay between the Prescription Act and the
Systems Act, and the effect of section 102(2) on prescription.
[87]
Mahon AJ
held
[33]
that the CoJ’s
Credit Control and Debt Collection Policy
[34]
did not prevent the CoJ from issuing summons on disputed debts.
Undoubtedly correct, he held that “
[t]he
legislative framework is clear that prescription operates
independently of internal policies or administration practices of
municipalities.”
However,
I differ from him when he held that “
while
the City may choose to adopt procedures for managing disputes through
its Credit Control and Debt Collection Policy, these
procedures do
not have the effect of overriding or suspending the statutory
requirements of the Prescription Act
.”
[88]
By virtue of section 16(1) of the Prescription Act, the provisions of
Chapter III of thereof, dealing with the prescription
of debts, apply
to any debt arising of the commencement of the Act, save in so far as
they are inconsistent with the provisions
of any Act of Parliament
which prescribes a specified period within which a claim is to be
made or an action is to be instituted
in respect of a debt or imposes
conditions on the institution of an action for the recovery of a
debt. Thus, in so
far as the Systems Act contains no
provisions relative to prescription, the provisions of Chapter III of
the Prescription Act are
relevant to the issues for determination.
[89]
The CoJ’s Credit Control Bylaws and 2022 Credit Control and
Debt Collection Policy are subservient to the provisions
of the
Systems Act. Although the Systems Act does not define what
“debt collection mechanisms” entail, on a purposive
interpretation of the phrase, I am satisfied that such mechanisms
include normal civil legal proceedings.
[90]
I am satisfied that each of the CoJ’s invoices dated 22 June
2017 and 1 July 2017 reflect a liquidated amount,
each of which, in
accordance with the Credit Control Bylaws, was due for payment by the
applicant on the date stipulated in each
of the invoices, being 22
June and 17 July 2017 respectively. Therefore, prescription
commenced running on these dates for
payment.
[91]
As the invoices related to both property rates and taxes and
consumptions charges, different periods of prescription
were
applicable.
[92]
On the evidence presented, it is manifest that the dispute raised by
the applicant in July/August 2017 related to all
the amounts in
respect of property rates and taxes, the amounts levied in respect of
estimated electricity consumption, the amounts
in respect of water
consumption, as well as the interest charges debited. The impugned
items were adequately and properly identified
as were the applicant’s
objections thereto, thereby enabling the CoJ to ascertain the
disputed items and the reasons for
the dispute, as is required by the
provisions of section 102(2) and held in
Croftdene
.
[93]
Thus, pending resolution of the dispute, the CoJ was legally barred
from implementing its credit control and debt collections
processes,
including disconnecting services and/or instituting legal action,
whether in respect of the property rates and taxes
or the consumption
charges. It also became incumbent on the CoJ to provide redress
to the applicant promptly and efficiently,
as mandated by the
inter
alia
section 95(g) of Systems Act, and the provisions of its own
Bylaws.
[94]
It is because the CoJ implemented debt collections measures in the
form of the termination of services, in contravention
of section
102(2) that litigation was instituted, and the Wright order was
granted.
[95]
The amounts
erroneously levied in respect of property rates having been
corrected, what remained were the disputes related to the
water and
electricity consumption charges. These remaining issues formed
part of the existing dispute and were the subject
matter of the Twala
order. For as long as these issues remained unsolved, the legal
impediment created by section 102(2) endured,
and the CoJ remained
impeded from adopting any debt collecting measures, including the
service of process. Had the
CoJ issued process to recover
the alleged debt, pending resolution of the dispute, its claims may
very well have been met by a
plea in abatement or similar
objection.
[35]
[96]
It has been
held that the word “impediment” used in section 13(1)(i)
“
should
not been taken too literally or interpreted as meaning an absolute
bar to the institution of legal proceedings…
”
but rather that it “
covers
a wide spectrum of situations ranging from those in which it would
not be possible in law for the creditor to sue to those
in which it
might be difficult or awkward, but not impossible, to sue. In short,
the impediments range from the absolute to the
relative.
”
[36]
[97]
I am
satisfied that the legal impediment created by section 102(2) of the
Systems Act constitutes a “
superior
force including any law
”
as envisaged by section 13(1)(a) of the Prescription Act, which
prevented the CoJ from interrupting the running of prescription
by
the service of process claiming payment from the applicant.
[37]
On the face of it, the impediment thus created is absolute, but I
express no finding on this score.
[98]
The CoJ’s argument that the Twala order mandated the applicant
to invoke an internal appeal, effectively giving
rise to a “new”
cause of action the applicant had to invoke, is not supported by a
proper interpretation of either
the Wright order or Twala order. Both
orders were aimed at directing the CoJ to perform its obligations
imposed by the Systems
Act and its own Bylaws. These obligations
include those created by:
a.
Section 95 of the Systems Act to render accurate accounts to
consumers, to allow consumers to receive
prompt redress for
inaccurate accounts, and to provide prompt replies and corrective
action to dissatisfied consumers; and
b.
Section 11(5) of the Credit Control Bylaws mandating the CoJ to
investigate a customer’s query
or complaint within 14 days or
as soon as possible after the query or complaint was received; and to
inform the customer of its
decision as soon as possible after
conclusion of the investigation.
c.
Section
9(7) of the Electricity Bylaws, which disallows the CoJ from making
adjustments to its accounts in respect of incorrect
electricity
charges in respect of a period in excess of 6 months prior to the
date on which the CoJ observed the incorrect charge.
[38]
[99]
In this, the CoJ spectacularly failed its obligations.
[100]
It was only under cover of the letter of 22 September 2023 that the
CoJ complied, in part, with the Twala order. The letter
recorded the
basis for the rebilling of electricity consumption charges in July
2017 and the CoJ’s finding that no mistakes
had been made at
the time. The CoJ made it clear that it regarded the dispute in
respect of electricity consumption charges as
having been resolved
and demanded payment of the amount due.
[101]
Accordingly,
it does not behove the CoJ to contend that the dispute in relation to
the electricity consumption charges remained
unresolved in the face
of the contents of the letter from its then-attorneys. I am satisfied
that the CoJ’s demand for payment
of the amount due in respect
of the electricity consumption charges did not create a new “debt”
but heralded the end
of the impediment created by the provisions of
section 102(2) of the Systems Act, in so far as the applicant
appeared to have acquiesced
with the information provided.
[39]
[102]
The “debt” in respect of electricity consumption charges
became due at the latest 17 July 2017, on which date
prescription
commenced running. The dispute raised by the applicant did not
suspension or interruption of prescription but
it had the effect of
delaying the completion of prescription. Accordingly, and by
virtue of section 13(1)(a) of the Prescription
Act, the CoJ’s
claim for electricity consumption charges prescribed one year after
the disputes was resolved, being at midnight
on 22 September 2024.
[103]
By contrast, the letter of 22 September 2023 noted that the dispute
in relation to the water consumption charges remained
unresolved and
the impediment created by section 102(2) of the Systems Act
persists. As unsatisfactory as it may be, for
as long as the
dispute remains unresolved, the CoJ cannot lawfully invoke any debt
collection or credit control measures in respect
of these charges.
[104]
Ultimately, the applicant is entitled to the declaratory order it
seeks but only in respect of electricity consumption charges,
interest and/or penalties on such charges.
COSTS
[105]
Although only partially successful, given the CoJ’s
contemptuous and persistent disregard of its obligations in terms
of
the Systems Act and its own Bylaws, there is no reasonable basis to
deprive the applicant its costs. A punitive order
is also
appropriate in the circumstances.
[106]
Although only Mr Du Plessis appeared for the applicant at the
hearing, he and a junior counsel authored both the heads of
argument
and the further submissions. The issues for determination
involved novel legal aspects, not previously the subject
of any
authorities the parties or this Court could find. As such, the
costs of two counsel, where so employed, are allowed.
ORDER
[107]
In the result, the following order is made:
1. The
interlocutory application for condonation for the late filing of the
respondent’s answering affidavit is dismissed.
2. It is declared
that all unpaid electrical charges and interest and/or penalties on
such electrical charges levied by the
respondent in respect of the
Remaining Extent of Erf 8[…], K[…] Township situated at
2[…] T[…] Road,
K[…] (“
the property
")
on account number 5[…] (“
the account
”) for
the period prior to 30 April 2017, have become prescribed in terms of
the
Prescription Act, 68 of 1969
.
3. The respondent
is directed to reverse all unpaid electrical charges and interest
and/or penalties on such electrical charges
levied by the respondent
on the account in respect of the property for the period prior to 30
April 2017.
4. The respondent
to pay the costs of the interlocutory application for condonation as
well as the main application, on a
scale as between attorney and
client including the costs of two counsel where so employed.
SARITA
LIEBENBERG
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, JOHANNESBURG
Date
of Hearing:
8 September 2025
Date
of Judgment:
3 November 2025
For
the Applicant:
Adv D T v R Du Plessis SC and WA De Beer
Instructed
by Ellis Coll Attorneys.
For
the Respondent:
Adv E N Sithole Instructed by Ncube Inc.
[1]
Grootboom
v National Prosecuting Authority and another
2014 (2) SA 68
(CC) at para 22 (“
Grootboom
”).
[2]
Grootboom
above
at para 23.
[3]
See
eThekwini
Municipality v Ingonyama Trust
2013
(5) BCLR 497
(CC)
([2013] ZACC 7);
Grootboom
above
at para 37.
[4]
Mulaudzi
v Old Mutual Life Assurance Co (South Africa) Ltd and Others
2017 (6) SA 90
(SCA) at [26]
[5]
See
Ferris
and another v FirstRand Bank Ltd
2014
(3) SA 39
(CC)
para 10;
Federated
Employers Fire & General Insurance Company Limited & another
v McKenzie
1969
(3) SA 360
(A)
at 362F-G;
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development Company
Ltd and others
[2013]
2 All SA 251
(SCA)
para 11
.
[6]
See
Valor
IT v Premier, North West Province and Others
2021 (1) SA 42
(SCA) at para 38.
[7]
Grootboom
above
at paras 32 – 34.
[8]
Act 32 of 2000.
[9]
“
Municipal
service
”
being defined in section 1 as “a service that a
municipality in terms of its powers and functions provides
or may
provide to or for the benefit of the local community irrespective of
whether -
(a)
such
a service is provided, or to be provided, by the municipality
through an internal mechanism contemplated in section
76 or by
engaging an external mechanism contemplated in section 76; and
(b)
fees,
charges or tariffs are levied in respect of such a service or not”.
[10]
Section 97(1)(b).
[11]
Section 97(1)(e).
[12]
Section 97(1)(f).
[13]
Section 97(1)(g).
[14]
2012 (4) SA 169
(SCA) at para 22.
[15]
Body
Corporate of Willow and Aloe Grove v City of Johannesburg and
Another
[2023] ZAGPJHC 1451 (11 December 2023) at para 19 (“
Willow
and Aloe Grove
”).
[16]
Njongi v
MEC, Department of Welfare, Eastern Cape
[2008] ZACC 4
;
2008 (4) SA 237
(CC) at para 36 and the authorities quoted in fn 47.
[17]
ABSA
Bank Bpk v De Villiers
2001
(1) SA 481 (SCA).
[18]
Section
10
,
11
and
12
of the
Prescription Act;
Jordaan
and Others v Tshwane Metropolitan Municipality and Others
2017 (6) SA 287
(CC) para 25;
City
of Johannesburg v Scholtz
2010 (1) SA 316
(W);
Argent
Industrial Investment (Pty) Ltd v Ekurhuleni Metropolitan
Municipality
2017 (3) SA 146
(GJ);
Buttertum
Property Letting (Pty) Ltd v Dihlabeng Local Municipality
[2016] 4 All SA 895
(FB) para 39;
AMA
Casa Props 129 (Pty) Ltd v The CoJ of Johannesburg and Others
(32217/2019) [2021]
ZAGPJHC
661 (9 November 2021).
[19]
Section 12(1)
of the
Prescription Act.
[20
]
2007 (2) SA (SCA) 334 at para 12. See also
Nature’s
Choice Farms (Pty) Ltd v Ekurhuleni Metropolitan Municipality
[2020]
3 All SA 57
(SCA) at para 41 (“
Nature’s
Choice
”).
[21]
Id.
[22]
Nature’s
Choice
Footnote
17 above.
[23]
Id
at
paras 20-21.
[24]
Id a
t
para 28.
[25]
Id
at
para 41.
[26]
Petzer
v Radford (Pty) Ltd
[1953] 4 All SA 311
(N);
Madibeng
Local Municipality v Public Investment Corporation Ltd
(955/2019)
[2020] ZASCA 157
(30 November 2020) para [28];
Investec
Bank Ltd v Erf 436 Elandspoort (Pty) Ltd and Others
2021 (1) SA 28 (SCA).
[27]
In terms of
section 14(2)
of the
Prescription Act.
[28]
Id
.
[29]
[2024] ZASCA 101
(19 June 2024). Also see
City
of Johannesburg Metropolitan Municipality v Mir-Air Prop (Pty) Ltd
[2024] ZAGPJHC 977 (1 October 2024).
[30]
Cusa v
Tao Ying Metal Industries and Others
[2008] ZACC 15
;
2009
(2) SA 204
(CC) at para 68.
[31]
2025 JDR 0410 (GJ).
[32]
Id
.
[33]
Tarica
above at paras 76 to 78.
[34]
It is not evident form the judgment whether the Court referred to
the 2005 or 2022 Credit Control Policy.
[35]
As in
Glofurn
and
Mir-Air
Prop
above.
[36]
ABP 4×4
Motor Dealers (Pty) Ltd v IGI Insurance Co Ltd
[1999]
3 All SA 405
(A);
1999 (3) SA 924
(SCA) at para 11.
[37]
By virtue of
section 15(1)
of the
Prescription Act “
[t]he
running of prescription shall, subject to the provisions of
subsection (2), be interrupted by the service on the debtor of any
process whereby the creditor claims payment of the debt.
”
[38]
In this regard, the CoJ must be taken to have observed the incorrect
charge when it installed a new electricity meter at the
applicant’s
property in May 2016.
[39]
The applicant did not invoke its right to lodge an appeal within 21
days from the date of the decision recorded in the letter
of 22
September 2023, as it was entitled to do by virtue of the Credit
Control Bylaws.
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