Case Law[2024] ZAGPJHC 977South Africa
City of Johannesburg Metropolitan Municipality v Mir-Air Prop (Pty) Limited (2023/093920) [2024] ZAGPJHC 977 (1 October 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
1 October 2024
Headnotes
judgment dismissed – Local Government: Municipal Systems Act 32 of 2000, s 102(2).
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## City of Johannesburg Metropolitan Municipality v Mir-Air Prop (Pty) Limited (2023/093920) [2024] ZAGPJHC 977 (1 October 2024)
City of Johannesburg Metropolitan Municipality v Mir-Air Prop (Pty) Limited (2023/093920) [2024] ZAGPJHC 977 (1 October 2024)
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sino date 1 October 2024
FLYNOTES:
MUNICIPALITY – Billing –
Dispute
–
Various
issues raised by defendant relating to meter readings,
discrepancies in billing and actual supply – Must be
clear
to the COJ that no estimates can be raised when there is no de
facto supply – Figures are estimates – City’s
quantum and claim cannot be liquidated – Clear that City’s
accounting is in chaos – Application for summary
judgment
dismissed –
Local Government: Municipal Systems Act 32 of
2000
,
s 102(2).
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
CASE NO: 2023/093920
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED.
1 October 2024
In the matter between:
CITY
OF JOHANNESBURG METROPOLITAN
MUNICIPALITY
Plaintiff
and
MIR-AIR
PROP. (PTY) LIMITED
Defendant
This judgment was
handed down electronically by circulation to the parties and/or
parties’ representatives by email and by
upload to CaseLines.
The date and time for hand down is deemed to be 10h00 on 1 October
2024
JUDGMENT
S VAN NIEUWENHUIZEN AJ
Introduction
[1]
In this
matter the Plaintiff, the City of Johannesburg Metropolitan
Municipality will, for the sake of convenience, be referred
to as the
COJ and Mir-Air Prop (Pty) Limited, the defendant, will be referred
to as Mir-Air.
[2]
On 15
September 2023, the COJ issued a combined summons against Mir Air
and alleged, in its particulars of claim, as follows.
2.1
Mir-Air
was the registered owner alternatively the lawful possessor
alternatively manager of immovable property situated at stand
number
116, Tormill [sic] Ext. 3 within the municipal area of the COJ (‘the
property’).
2.2
The
property is alleged to be rateable in terms of the provisions of the
Local Municipality: Municipal Property Rates Act ‘(the
Act’)
and the plaintiff’s credit control policy and by-laws (‘the
policy’).
2.3
It
further asserts that the property is rateable in terms of the
provisions of the plaintiff’s credit control policy and by-laws
(‘the policy’) and the Local Government Systems Act 32 of
2000 (‘the Act’).
2.4
It
is then alleged that the COJ duly levied and charged electricity
charges on the property, pursuant to and in accordance with
the
provisions of the Act and the policy: which are due and payable by
Mir Air to the COJ on the date stipulated by the COJ
under
account number 220012347, a copy of which is annexed as “COJ1”.
2.5
It
is then alleged that in terms of the Act and the policy Mir-Air is
liable to pay to the COJ rates and taxes as determined by
the
plaintiff in respect of the property on the date stipulated by the
COJ.
2.6
It
is further alleged that, by virtue of section 229(1) of the
Constitution of the Republic of South Africa, Mir-Air is liable to
pay to the COJ interest on any arrear monies due to the COJ at the
rate of 10.75% per annum.
2.7
It
is also alleged that the COJ’s attorneys of record, in an
effort to avoid litigation, sent a notice drawing Mir-Air’s
attention regarding the default and demanded payment. A copy of this
notice is annexed marked “COJ2”.
2.8
Despite
lawful demand, Mir Air allegedly refused and/or neglected and/or
failed to make payment which is due and payable.
2.9
Hence,
the COJ prays for judgment against Mir Air:
2.9.1
in
the sum of R1 677 793.24;
2.9.2
interest
on the aforesaid sum at the rate of 10.75% per annum from date of
demand to date of payment in full;
2.9.3
costs
of suit.
[3]
I
should point out that nowhere in the particulars of claim is there a
positive allegation that in the relevant period or at all
times
electricity was supplied by the COJ to Mir Air. The aforesaid, I
would have thought, is a vital allegation to be made
by the COJ.
[4]
The
particulars of claim contain an annexure, marked “COJ1”,
which is dated 4 September 2023, and relates to Stand No 116-000,
Stormill Ext. 3. The account number on this invoice is 220012347.
[5]
This
invoice opens with a previous balance of R2 455 008.08 and,
after adding interest on arrears and current charges,
excluding VAT,
and VAT, this amounts to R2 677 793.24 as at 11 September
2023. If one has regard to the aging breakdown,
it suggests the
following, that R2 027 616.18 is in excess of 90 days, on
60 days zero amount is payable and, on 30 days,
an amount of
R427 389.90 is due and payable and, on the current account, the
amount of R222 786.16 is payable, all of
which adds up to the
total amount outstanding of R2 677 793.24.
[6]
On the
back of this invoice, there appears a reading period of 2023/08/04 to
2023/09/04, equalling 32 days. It reflects that the
meter, number
63125797, start reading is 91,134.246 and the end reading is stated
as 144,789.041; the differential is 53,654,794
and, hence, the
consumption is reflected as 53,754.794 units in KwH and it is made
clear that same are estimated readings. This
amounts to a daily
average consumption of 1 676.712 KwH. The total of the charges
raised amounts, for the current period,
to R217 361.05. Over and
above that, there is a surcharge on business services, excluding
property rates, of R3 716.80
plus 50% on the aforesaid, which
adds a further R4 273.17, totalling R221 634.22, which is
equal to the so-called current
charge in the aging breakdown on the
first page of the same invoice.
[7]
The
final demand referred to in the particulars of claim is dated 31 July
2023 and demands payment of R2 140 248.60 in
respect of
municipal services, plus interest, at the property. This final demand
purports to be a notice in terms of
s129
of the
National Credit Act
34 of 2005
and contains the usual reference to the customer’s
right to approach a debt counsellor or seek an alternative
dispute-resolution
or a consumer ombudsman for jurisdiction in the
matter. It also warns that, if there is no reply to this notice
within 10 business
days of delivery, the municipality will institute
legal proceedings for recovery of the full outstanding balance in
terms of the
agreement without further notice to Mir Air.
[8]
It was
sent by registered post on 11 August 2023 to Mir Air.
[9]
Another
invoice is also annexed. It has no particular reference number on it
but it is dated 10 July 2023, purporting to be the
statement for July
2023 for the property. The total amount reflected on this invoice is
R2 140 248.60 and when the aging
is analysed, it shows
R1 923 389.20 on 90 days, plus zero amount of 60 days and,
on 30 days, R108 461.60 and current
R108 397.80, all of
which adds up to R2 140 248.60.
[10]
The
back of this document refers to a reading period of 2023/06/06 to
2023/07/06, i e 31 days, in respect of meter number 630020754.
The end reading is given as 569,086.730, with a differential of
28228.336. The start reading was 540859.391. Hence, the consumption
is given as 28,228.338 units of KWH. These readings are, again,
reflected as estimated readings. The readings, once totalled up,
amount to R103 426.55 and the surcharge on business services,
excluding property rates, is given as R1 674.85, with a
VAT
figure of R264.72, overall adding up to R2 029.57 which, once
added up, is R103 426.55, amounts to R105 556.12.
This
equates to the same figure as is reflected on the first page of this
document under the age analysis of current.
[11]
Mir Air
pleaded to the particulars of claim and in paragraph 1 of its plea,
ad 1 to 2 of the particulars of claim, indicated
that the property is
situated at Stormill and not Tormill.
[12]
It
thereafter pleads, ad paragraph 3, that paragraph 3 of the
particulars of claim is nonsensical and is denied.
[13]
In
respect of paragraph 4.1 to 4.3 of the particulars of claim, the
following is pleaded:
“
3.
the defendant is the owner of the property;
4. the claim
does not appear to relate to rates but electricity charges,
5.
the contents of paragraphs 4.2 to 4.3 is contradictory and is
denied.
”
[14]
Then it
pleads, at paragraph 4.4, as follows:
“
6.
It is admitted that the defendant’s account number is 22012347
.
7. The
appendices from annexure ‘COJ1’ is admitted.
8. The balance
of the content of this paragraph is denied.
9. It is unclear
which ‘act’ is referred to, having regard to paragraphs
4.2–4.3.
10. As is
evident from the last invoice of annexure ‘B3’ the
plaintiff has raised alleged additional charges under
account number
302209270 which account number the defendant disputes and which is
indicative of the chaotic state of the plaintiff’s
account
system.
11. The
defendant denies being indebted to the plaintiff in any amount under
any purported account number raised and/or referred
to by the
plaintiff and is in credit of municipal charges/fees.
12. In
amplification of the aforegoing, the defendant pleads that the
meters:
The meters
12.1 During the
period April 2013 to about October 2022, the only electricity meter
installed at the property was meter 633020254
(‘the old
meter’).
12.2 During the
period November 2022 to about June 2023, there was no electricity
meter installed at the property as the
plaintiff removed the old
meter shortly after 26 October 2022.
Property Vacant
12.3 During the
period commencing about June 2023 to date, the only electricity meter
installed at the property is meter
63125797 (‘the new meter’).
12.4 During the
period March 2020 to date the property was vacant with no business
being conducted thereat.
Termination of
supply
12.5 On or
about August 2022, the plaintiff terminated the electricity supply to
the property by removing cabling and/or
fuses at the electricity
connection point to the property (‘the termination’).
There has been no electricity supply
or consumption at the property,
since the termination.
12.6 Upon the
termination, the meter ceased reflecting any meter reading, apparent
from ‘A1’–‘A3’
hereto.
Credit on account
12.7 The
defendant was in credit on the account, in the amount of R436 719.17
as at 1 May 2018, when a reading on the
old meter stood at 157,806.00
KwH evident from the statement appended as ‘A4’.
The true readings
on the old and new meters
12.8 The last
old meter reading the defendant is aware of is a meter reading of
268,974.00kWh as at 28 July 2022 as
‘A5’ hereto
(taken at the end of the month prior to the termination).
12.9 Other
photos taken of the old meter readings are appended as ‘A6’
to ‘A6.7’ hereto.
12.10 The new
meter commenced with a reading of 000,000.00 apparent from ‘A7’
hereto and its meter reading as
at 14 November 2023 still stands at
000,000.00 apparent from ‘A8’ hereto.
True consumption
12.11 In the
premises for the period 1 May 2018 to 28 July 2022 (1549 days) the
total electricity consumption on the property
was 111,168.00 KwH
(157,806.00 KwH – 268,974.00kWh), equating to an average daily
consumption of 71.76 KwH
12.12 There was
no electricity supply and consumption at the property after the
termination in August 2022.
Report of meter
readings: old meter
12.13 The July
2023 statement forming part of ‘POC1’ reflects an
estimated end meter reading on the old meter
as at 6 July 2023, of
569,086.73kWh.
12.13.1 The old
meter was removed in October/ November 2022.
12.13.2 The old
meter ceased registering consumption as a result of the termination
in August 2022 already.
12.13.3 The
estimated reading on the old meter (per the July 2023 statement
forming part of ‘POC1’ exceeds the
actual meter reading
thereon as at 28 July 2022 by 300,112.73kWh.
Abortive meter
readings: new meter
12.14 In
another statement of the plaintiff for July 2023, issued by the
plaintiff, appended as ‘A9’, the estimated
end reading of
the old meter was 478,647.00 KwH.
12.14.1 The new
meter does not register any electricity consumption as there was no
electricity supplied to the property
since the termination.
12.14.2 Despite
the aforegoing, the plaintiff transfers the end meter reading on the
old meter, to the new meter (478,647.00kWh)
in September 2023,
purporting to be an actual meter reading apparent from the
plaintiff’s statement appended as ‘A10’
hereto.
12.14.3 The new
meter reflects a zero reading as at 14 November 2023.
12.15 The other
September 2023 statement, forming part of ‘POC1’ reflects
an estimated end meter reading on the
new meter of 144,789.041, in
circumstances where the reading on the new meter from installation to
date hereof, stands at zero
per ‘A8’ hereto.
False actual meter
readings
12.16 The
statements rendered by the plaintiff falsely claim that some readings
were actual meter readings.
12.16.1 As
appears from ‘A5’ the actual meter reading on the old
meter, on 28 July 2022 was 268,974.00kWh.
12.16.2 Despite
the above, the plaintiff reflected a purported ‘actual’
meter reading on the old meter of 299,020.00kWh
as at 31 July
2020 (two years prior) evident from ‘A11’ hereto.
12.16.3 Similar
contrived alleged ‘actual readings’ on the old meter
appear from ‘A11.1’ to ‘A11.8’.
12.16.4
‘A10’ being one of the plaintiff’s September
2023 statements, reflects an alleged actual meter
reading on the new
meter of 478,647kWh when the meter stood at zero on 14 November 2023
per ‘A8’ hereto.
(see
the other side of the annexure for this reading)
Abortive accounting
12.17
Additionally, the plaintiff’s accounting is abysmal, and
patently abortive, as evinced, for instance, by annexure
‘A12’,
being the plaintiff’s statement for September 2021 where a
purported start meter reading on the old meter
was 399,643 KwH and
the end reading is 268,622 KwH which is an impossibility, as it
reflects a reversal of consumption on the old
meter itself.
12.17.1 The
consumption must be minus 70,988 KwH.
12.17.2 The
statement inexplicably levies electricity charges based on the
aforesaid start and end readings (for consumption
of 929,012.00 KWH)
totalling consumption charges of about R1.5 million (leaving the
reversals in ‘A12’ aside).
12.17.3 Similar
abysmal accounting appears from ‘A12.1’ and ‘A12.2’
hereto.
12.18 In the
plaintiff’s statement for January 2022, appended as ‘A13’,
the commencement meter reading
for the old meter is reflected as
3,558.34 KwH as an estimate where the purported reading reflected in
the statement of the month
prior (December 2021) was 421,141.53 KwH
per ‘A13.1’.
12.18.1 By
decreasing the commencement reading by about 425,000 KwH in the
January 2022 statement, and then billing on an
estimate in that meter
reading of 461,509.70 KwH the plaintiff artificially and unlawfully
levied electricity charges, on a purported
consumption of 457,941.36
Kwh over the period 7 April 2021 to 4 January 2022, equating to
the aggregate electricity charges
of over R1.4 million per ‘A13’.
Conclusion on
abortive statements
13. The
plaintiff levied electricity charges on wholly inflated purported
meter readings, and carried over the inflated
charges from month to
month to the next, with interest charged thereon.
14. During
the period 1 May 2018 to 28 July 2022, the defendant consumed a total
of 111,168.00 KwH
14.1 The
plaintiff thus as a bare minimum inflated electricity consumption on
the old meter alone by 300,112.73 KwH, per
the July 2023 invoice
forming part of ‘POC1’.
15. Since
the termination (August 2022) no electricity was supplied or consumed
at the property. No electricity was
supplied and consumed after the
installation of the new meter during or about June 2023 to date
hereof.
15.1 In the
September 2023 statement, forming part of ‘POC1’ the
plaintiff inflated the electricity consumption
on the new meter
alone, by 144,789.04 KwH and in the subsequent September 2023
statement (‘A10’). This overcharge increased
to 478
647.00 KwH whilst the new meter reading stood at zero on 14 November
2023 per ‘A8’.
16. In the
premises the plaintiff overcharged for at least 441,901.77 KwH,
leaving aside the other duplicated, and inflated
charges carried over
from one statement to the next.
17. Having
regard to the credit on the account of R436 719.17 as at 1 May
2018, the fact that only 111,168.00 KwH
was consumed since then and
the fact that the defendant made payment for electricity charges on
the account the defendant remains
in credit on the account.
Unlawful
enforcement
18. The
defendant disputed that the totality of the inflated, excessive, and
contrived electricity charges levied by
the plaintiff on 17 August
2020, per annexure ‘B1’ and thereafter per annexures ‘B2’
and ‘B3’.
19. The
plaintiff failed to respond to and resolve the queries raised by the
defendant in accordance with
s11
of the plaintiff’s Credit
Control and Debt Collection By-laws 2004.
20. The
institution of the action is unlawful, constitutes an abuse and
contravenes section 102(2) of the Local Government
Municipal Systems
Act.
AD PARAGRAPH 4.5
21. The
content of this paragraph is denied for the reasons canvassed above.
22. The
claim is not for rates and taxes.
AD PARAGRAPH 5
23. The
content of this paragraph is denied and the plaintiff is put to the
proof thereof.
AD PARAGRAPH 6
24. It is
admitted that a demand was sent.
25. The
amounts claimed are inflated, not due, nor payable.
26. It is
denied that the demand was sent in an attempt to avoid litigation.
27. The
defendant is in credit on the account.
AD PARAGRAPH 7
28. The
defendant denies that the demand is lawful and admits its refusal to
pay amounts which are not due and payable.
29. Save
as set out above, the content of this paragraph is denied.
Therefore
the defendant prays for an order that the action be dismissed with
punitive costs against the plaintiff, as the action
constitutes an
abuse of process warranting punitive costs.
”
[15]
This
plea is dated 20 November 2023.
[16]
One
would have thought that this plea itself would have been enough for
the COJ and its attorneys to halt the legal proceeding and
attempt to
investigate what exactly is going on and to resolve the matter in
another way.
[17]
The COJ
undaunted by the allegations in the plea marched on valiantly seeking
summary judgment On 11 December 2023, the COJ applied
for summary
judgment in a unique fashion. I say so because the application for
summary judgment which is supposed to verify the
cause of action on
oath, is formulated in the most curious fashion. I will for purposes
of clarity, refer to the full affidavit
for verification and quote
same herein:
“
I, the
undersigned
TUWANI NGWANA
Do hereby make oath and
state that: •
1.I am a major male under
the employ of the City of Johannesburg Metropolitan Municipality, in
the capacity of Legal Advisor with
my offices situated in the
principal place of business and head office, being 6[…] J[…]
STREET,
BRAAMFONTEIN.
2. Unless otherwise
stated or the converse appears from the context, the facts herein
contained are within my own personal knowledge
and belief, and are
both true and correct.
3. I have access to all
the Applicant's files and records pertaining to the
Respondent and have
acquainted myself with contents thereof insofar as may be necessary
for the purposes of this application.
4. The facts herein
contained are, save where otherwise stated or where the converse
appears from the context, within my own personal
knowledge and are
both true and correct. I confirm that I have perused all the relevant
documentation in this matter prior to deposing
this Affidavit.
5. I can swear positively
to the facts contained in the Applicant's Summons, verify the cause
of action and that as at date of signing
this affidavit Respondent is
liable to the Applicant in the amount of R4 447 841.07 (Four Million
Four Hundred and Forty-Seven
Thousand Eight Hundred and Forty-One
Rand) in respect of the respondent's electricity charges as at 11
December 2023, account number:
220050494 ("the account").
6. Copy of tax invoice is
attached hereto marked annexures "COJ 3",
respectively. The
document upon which the Applicant relies are liquid
documents and amount are
easily ascertainable.
7. I have perused the
Respondent's plea and submit that the Respondent failed to put a
bona
fide
defence to the Applicant's claim. I shall deal with each of
the ground (sic) of plea and then deal with the merits thereafter.
CREDIT CONTROL AND
DEBT COLLECTION POLICY
8.
Clause 16 of the Policy
provides:
16.1.
Any customer
that disputes the correctness of an account or any entry thereon
must:
16.1.1.
Lodge
a
query relating to such dispute by specifying the
nature of the dispute
and the service to which it relates (sic) the City's Ombudsman .
OMBUDSMAN BY-LAWS
9. Section 7 of the Act
(Matters not for investigation) provides:
(1)(g)
where the complainant
has not exhausted all internal
remedies
available
unless the Ombudsman
considers that the refusal to act would result in an injustice to the
complainant.
10 . Section 8 of the
Act (Submission of complaints) provides:
10. 1 All complaints
submitted to the Office of the Ombudsman must be
writing.
10.2 Telephonic
submissions made to the Office will be captured in writing to enable
the office to properly record the submission.
The complaint will be
dealt with in accordance with section 8(3) below.
10.3
A complainant must complete the form set out in
Annexure A to this bvlaw and such form must be accompanied by an
affidavit where
the Ombudsman requests
an affidavit.
10.4
Each complaint must specify-
a) The nature of the
complaint;
b)
The grounds on which the complainant believes that there
has
been
an act, or omission or an attempt
as
contemplated in
section 6;
c)
Such facts or other relevant information
as
are known to the
complainant;
d) The redress sought,
if any.
UNIFORM RULES OF THE
COURT
11.
Rule 22 (2) (sic) of the Uniform Rules of Court provides that the
Respondent, in the plea, shall state which facts are not admitted
and
to what extent; and shall
clearly and concisely
state all material facts upon which he relies (
underline
own
emphasis).
APPLICANT'S CASE
12. It is common cause
further that the Respondent is the registered owner alternatively the
lawful possessor of stand no: 116,
Stormill ("the property")
which falls within the jurisdiction of the Applicant.
13.
It is common cause further that the Applicant levied Electricity
charges on the property under account number 220012347, which
at the
time of issuing summons, the account was in arrears in the amount of
R2 140 248.60
(Two
Million One Hundred and Forty Thousand Two Hundred and Forty-Eight
Rand Sixty Cent)
.
14. The Applicant has an
obligation to levy charges and render invoice to the Respondent. In
compliance with its obligations, it
captured readings of meter at the
Respondent's property and proceeded to issue invoice.
15. I pause to state that
in terms of clause 9.3 of the Applicant's Credit Control Policy and
Bylaws is entitled for
any reason whatsoever readings cannot be
obtained, interim readings (estimates) shall be utilised. Interim
readings will be based
on the average monthly consumption of services
registered over the 12 preceding months.
As soon as
an actual
reading
is
obtained, the account will be adjusted accordingly.
16. Clause 16 of the
Applicant's Credit Control and Debt Collection Policy provides that a
query reference number and if not satisfied,
a formal dispute
telephonically with the City through its Call Centre; or
16.1.2
By lodging such query at
a
Customer Service Centre
and
obtaining
a
reference number for such querv
.
(underlined
own emphasis).
16.2.
If, after
a
period of 30 days from the time the query
was
logged in
terms of clause 16.1
above, the query has not been resolved to the
satisfaction
of the customer, the customer may declare
a
dispute by
lodging
a
written
query specifying the nature of the dispute and the
service to which it
relates with the City.
16.3.
A
query logged in terms of clause 16.1 or a dispute declared in terms
off clause 16.2 above. must be accompanied by payment of at
least the
total amount outstanding on the account. where
a
portion of
the account is under query/dispute, payment shall be based on average
monthly previous charges before the query/dispute
arises until such
query/dispute is resolved.
(underlined for own
emphasis)
16.4.
The City will
investigate the query logged in terms of clause 16.1 or dispute
declared in terms of clause 16. 2 and advise the customer
of the
result of the City 's investigation , and if the query
is
found
to have been correct, the City will adjust the account accordingly.
16.5.
If, after
a
period of 90 days from when the query
was
logged in terms
of clause 16.1 or dispute declared in terms of clause 16.2, the query
or dispute
has
not been resolved to the satisfaction of the
customer, the customer may;
16.5.1.
Either appeal the decision made or failure to make
a
decision to the City
Manager in terms of Section 62 of the Municipal
Systems
Act, or
16.5.2 Refer the
query/dispute to conciliation/mediation at the office of
(sic) must be lodged and
ultimately (sic) matter should be referred to the Johannesburg
Ombudsman.
17. The Respondent makes
many conflicting submission (sic) to the extend (sic) that it is
unclear to the Applicant what the Respondent
relies on as a defence,
i.e installations, removals, vacant, removal of cabling and/or fuses,
false readings, abortive meter reading,
false actual meter readings
abortive account, conclusion of abortive statements, unlawful etc.
18. The above conflicting
submissions are pleaded in efforts to create a false dispute of fact
to avoid summary judgment. The Applicant
submits that there is no
dispute of fact that should be adjudicated by a trial Court .
19. Nowhere in the
Respondent's plea does it mention that a formal query was issued and
reference number was issued by the Applicant.
Therefore, any
allegation of escalation and/or pending dispute is unsubstantiated.
20. In amplification, the
Respondent attached multiple photographs taken from 2022 to November
2023, some of which are unclear.
The Applicant can only assume that
the photographs are intended to prove discrepancies in the reading,
capturing, computation and
billing of the Respondent's account.
21. The Respondent's
opinion on how and what the readings should be does not constitute a
valid query and/or dispute . In amplification,
by the Respondent's
own admission there were actual readings captured on the account,
which in the Respondent's opinion are "false
actuals".
22. For the Respondent to
successfully counter the actual charges captured by the Applicant, it
ought to have appointed a technician/expert
to prepare a report which
details the alleged correct readings.
23. Further to the above,
if the Respondent believed the meter/s were faulty; the Respondent
ought to have applied for a meter testing
.
24. The Applicant submits
that the amount is due and payable by the
Respondent.
I TURN TO DEAL WITH
THE RESPONDENT'S PLEA
Ad paragraph 2
25. It is unclear how
submission regarding jurisdiction on the basis that the services were
rendered and levied with jurisdiction
of this Court is nonsensical
and denied.
Ad paragraph 3 to 18
26. Save to admit that
the account is levied electricity charges; the Applicant submitted at
sub-paragraph 4.2 & 4.3 that the
account is rateable " ...
and the plaintiff's Credit Control Policy and Bylaws ("the
Policy")".
27 . For sake of
completeness, the Respondent may be interpreting the term "rateable"
incorrectly. The Applicant applies
certain prescribed electricity
rates/tariffs; thus, submission that the property is rateable.
28. In amplification,
sub-paragraph 4.4 specifically pleads that
'The plaintiff duly
levied and charged, electricity ("charges") ... "
29. In respect of account
number 302209270, the submission made in paragraph 10 is clear that
the Respondent either does not understand
, read, or have regard to
the account/s. The said account clearly states that it is charged for
Water & Sanitation supply.
30.
The Respondent is once again in paragraph 11 making unsubstantiated
submissions that account is in credit of the municipal charges/fees,
whilst annexure "
COJ
1
" clearly
stipulates that the
R2
140 248.60 (Two Million One Hundred and Forty Thousand Two Hundred
Forty-Eight Rand Sixty cent)
.(
sic
)
31. There is no
contradiction in any of the sub-paragraphs, nor is there alleged
chaos state of the Applicant's account system.
32. All submission
regarding the Respondent's own analysis of readings (including
average daily consumption, faultiness, etc) are
denied and the
Applicant is neither a technician and/or expert in electricity meter
charges or the Applicant's systems. Any allegation
and/or submission
made is made on the Respondent's opinion.
Ad paragraph 19 &
20
33. The Respondent
referred to a Policy of 2004 in claim that relates to charges levied
from 2018 to 2023. The submissions made
in paragraph 19 should be
disregarded.
34. In amplification, the
Respondent failed to prove existence of a formal and valid query or
dispute; therefore, the provisions
of section 102 of the Municipal
Systems Act are not applicable in this matter.
Ad paragraph 27 to 29
35.
The Applicant submits that annexure
"COJ
1"
clearly
stipulates that the
R2
140 248.60 (Two Million One Hundred and Forty Thousand Two Hundred
Forty-Eight Rand Sixty cent)
at the time of issuing summons. (sic)
CONCLUSION
22. There is no basis
upon which the Respondent can claim it has a
bona fide
defence
as required in terms of the Rules of this Honourable Court. The
conflicting, contradictory and unsubstantiated submissions
made by
the Respondent should be disregarded, as it is pleaded in attempt to
misdirect the Court to believe that there is a dispute
of fact to be
clarified and/or adjudicated at trial.
23. Rule 22 (sic) of the
Uniform Rules of this Honourable Court are very clear that defence
must be clear and concise, which the
Respondent failed to properly,
in a clear and understandable manner failed to plead.
24. I submit that a
proper case has been made out that the Applicant's claim is valid due
and payable, based on a liquid document
and the Respondent failed to
make out a
bona tide
defence to be adjudicated by a trial
Court.
WHEREFORE I HUMBLY pray
that the Summary Judgment be granted against the Respondent, as
prayed for in the application to which this
affidavit is attached.”
[18]
The
quantum has now jumped from the original figure stated in the
particulars of claim of R1 677,793.24 to in respect of Mir-Air’s
liability for electricity as at 11 December 2023, on account number
220050494 to
R4
447 841.07.
[1]
[19]
The
provision in Rule 32 (2) (b) permitting an affidavit verifying the
amount due in terms of the cause of action reads as follows:
“
(b) The
plaintiff shall, in the affidavit referred to in subrule (2)(a),
verify the cause of action and the amount, if any,
claimed, and
identify any point of law relied upon and the facts upon which the
plaintiff’s claim is based, and explain briefly
why the defence
as pleaded does not raise any issue for trial.
”
It does not permit for
the type of material placed by the deponent to the verifying
affidavit before the court. It also does not
permit for an increase
in the quantum to the amount stated.
[20]
Mir-Air
filed an opposing affidavit placing in issue the bulk of the content
put forward and demonstrating that, apart from the
procedural
difficulties and as is evident from its plea, there is simply no such
liquidated amount due and owing as stated by the
aforesaid Ngwana.
The COJ was permitted a period of three days from service of the
verifying affidavit to formally withdraw the
application for summary
judgment and to tender costs, failing which all costs occasioned by
this application, inclusive of the
costs occasioned by heads of
argument, preparation, appearance and the like would be sought on the
scale as between attorney and
client against it. It was also informed
that heads, on behalf of Mir-Air, would be drafted after the third
day to secure finalisation
of the matter.
[21]
The COJ
proceeded as can be seen from the “verifying affidavit”
and, despite the three days’ grace, it did not
withdraw the
application for summary judgment.
[22]
This
resulted in Mir-Air having to engage with the particulars of claim
under oath as well as the content the verifying affidavit,
although
Mir Air was clearly aware of the fact that the procedural errors
were, in fact, impermissible.
[23]
David
Alistair Lang ( “Lang”) qua director deposed to Mir-Air’s
answering affidavit of some 28 pages under various
headings.
[24]
He
firstly described it as an abuse of process given the issues raised
in the plea and it is under this rubric the COJ was offered
3 days to
withdraw the summary judgment proceedings failing which a punitive
costs order would be sought.
[25]
Further
under this he states that the COJ was aware of his complaints as is
evident from the plea.
[26]
He also
raises the fact that the particulars of claim was excipiable to the
extent that reliance was placed on the Municipal Rates
Act and the
Municipal Systems Act, and specifically paragraphs 4.2 – 4.5
[27]
It is
only paragraph 4.4 that refers to the levying of electricity charges
that under account 220011347, the account and with reference
to “COJ
1” being the September 2023 and July 2023 statements.
[28]
No
period is pleaded during which electricity was supplied nor is it
pleaded that electricity was supplied at all. In addition the
COJ
also does not plead that it measured electricity consumption at the
property or how same was measured through which electricity
meters.
[29]
The
obvious point is made that absent an allegation of supply of
electricity no obligation arises to pay for same and that the amount
claimed in the particulars of claim differs from the September and
July 2023 statements. It is submitted that on account of such
excipiability alone the application for summary judgment should be
refused.
[30]
The
further complaint is the use of hearsay and the incompentency of the
deponent. This complaint is directed at the failure of
the deponent
to recognise the various inherent conflicts in the amounts referred
to and the verification of the cause of action.
The amount ultimately
confirmed comes from a December 2023 invoice which was not even
pleaded. This is an alleged second ground
on which the application
should be dismissed on attorney and client costs.
[31]
The
third ground for dismissal of the application for summary judgment
with attorney and client costs is the fact that the amount
claimed is
impermissibly inflated.
[32]
Lang
also points out that his attorney was unable to find a Credit Control
And Debt Collection Policy “approved” in
August 2022. He
also states that there is a reference to the Ombudsman By-Laws (which
was published in 2014 but that there is also
an amended version dated
2023 but that he is unaware if it was ever publicised.
[33]
Reference
is also made to the COJ only quoting section 16 of the Policy in part
to section 16.5.2. Section 16.11 of the Policy reads
as follows:
“
Disputes
lodged with the City prior to the implementation of this policy in
terms (of) any previous policy, shall continued to be
dealt with in
terms of that policy.
”
[34]
As
appears from Annexure “B1” to the plea Lang lodged a
dispute with the COJ regarding the electricity account via a
telephone conversation on 11 August 2020 and thereafter sent several
follow up emails to resolve the disputes commencing on 17
August
2020.
[35]
The
lodging of disputes continued in 2020 as confirmed by Annexure “B2”
to the plea.
[36]
The disputes not only related to electricity charges but also water
charges as is apparent from annexure "B3'', which were
lodged in
2021 up to about March 2022 , before the "approval" of the
August 2022 policy. It is contended that Municipal
accounts are
consolidated, hence any dispute on one affects the amounts allegedly
owing under the other account.
[37]
Some of the dispute reference numbers received from the COJ, also
appear from annexure "B3" to the plea . None of the
disputes were resolved and no reasons for the plaintiff's accounting,
in justification of the unlawful charges were ever received.
[38]
In paragraph 33 of the verifying affidavit, the COJ contends that the
2004 policy should be disregarded, as the claim relates to
charges
levied from 2018 – 2023.
[39]
Paragraph 19 of the plea does not refer to a policy but to the
plaintiffs Credit Control and Debt Collection By-Laws of 2004
("the
2004
bylaws”)
a copy of which is
uploaded to Caselines by the defendant 's attorneys.
[40]
This allegation in paragraph 33 of the verifying affidavit, apart
from supplementing the excipiable POC (which is impermissible),
confirms that a substantial portion of the alleged claim has already
become prescribed. This was not raised as such in the plea
but is now
raised and is a cognisable defence although the exact quantum cannot
be determined.
[41]
Section 29 of the 2004 bylaws provide:
"If
there is
any
conflict
between a provision in these Bylaws and a provision
of
any other bylaw
of
the Council, the
provisions of these Bylaws prevail."
[42]
Thus it was argued that reliance on section 11 of the 2004 bylaws, as
pleaded in the plea is correct.
[43]
The aforesaid is proffered as the fourth ground confirming abuse of
process . The reliance on the August 2022 policy, not yet in
existence, to contend that the disputes lodged, failed to meet the
requisites required per the August 2022 policy, is incorrect
and
warrants a dismissal of the sumrnary judgment application with costs,
on the attorney and client scale, more so as the deponent
is a legal
advisor and to which I can add he had access to independent legal
advice.
[44]
It is further asserted that “COJ 3” is not a liquid
document.
[45]
The plaintiff terminated electricity supplv to the property in August
2022 There could thus be no consumption charges from September
2022,
or thereafter.
[46]
The property had an electricity meter with number 630020254
("
the
old meter”
)
which was replaced
with a new meter bearing meter number 63 ·125 79 7
(
"the
new meter”)
.
[47]
The old meter ceased registering consumption, as the electricity
supply was terminated.
[48]
The new meter never measured any consumption, as there was no
electricity supply to the property since August 2022.
[49]
The new meter was installed during June 2023, which had a
commencement reading of zero, and it still stood at a zero reading in
November 2023, as proven by annexure “A8” to the plea ,
being a photo that was taken of the new meter on 14 November
2023
(about two months after the issuing of the summons. (Paragraph 12 .3,
12.10 and 12.14.1 to the plea).
[50]
The July 2023, September 2023 and December 2023 readings relied on by
the plaintiff, all reflect
"Estimated
Readings".
("COJ1''
and "COJ3").
[51]
.Annexure "A9" to the plea , is a statement for July 2023
issued by the plaintiff, confirming a commencement meter reading
on
the new meter of zero. This account confirms that the plaintiff
raised charges, based on
"Estimated
Readings"
for the
period 1 March 2023 to 6 July 2023 (when the new meter was only
installed in June 2023).
[52]
Estimated readings are assumptions, and the reliance on alleged
historical consumption, over the past 12 months, as raised with
reference to section 16.3 of the August 2022 policy, and at paragraph
15 of the verifying affidavit is a figment.
[53]
The estimated consumption must be zero, since at !east September 2021
(but for the abysmal accounting since May 2018, as is evident
from
what follows.
[54]
It is
contended that estimates can never render the quantum liquid or
certain.
[55]
Additionally, on a reading of paragraph 33 of the verifying
affidavit, the claim relates to charges levied from 2018 to 2023, and
all purported electricity charges arising three years prior to date
of service of the summons being 9 October 2023 have prescribed.
[56]
On this
ground alone so it is asserted the claim is illiquid and cannot
sustain summary judgment.
[57]
This is the fifth ground confirming abuse of process, warranting a
dismissal of this application, with costs on the attorney and
client
scale.
OMBUDSMAN BY LAWS/
ABSENCE OF DISPUTE/ ABSENCE OF BONA FIDE DEFENSE
[58]
.Lang explains that he does not understand the reference to these
by-laws (nor do I).
[59]
Section 102(2) of the MSA, prohibits enforcements steps, where there
is a dispute on the account. The section does not require
exhaustion
of internal remedies before a dispute qualifies as a dispute, for the
purposes of S 102(2).
[60]
It is
contended that a
ll
charges raised after August 2022, when electricity supply was
terminated to the property, is disputed. This in a nutshell lies
at
the heart of the defence.
[61]
In
addition t
he credit
of over R430 000 -00 must be deducted from charges, lawfully leviable
after 1 May 2018. At the stage that the account
was in credit, the
old meter was installed.
[62]
The charges levied after 1 May 2018, which exceed the
de
facto
meter reading on
the old meter, as of 28 July 2022 (just prior to the electricity to
the property being terminated by the plaintiff)
must be reversed .
The meter reading on the old meter as of 28 July was 268 974 KwH
as is evidenced by the photo annexed as
“A5” to the plea
(paragraph 12.1 and 12.8 of the plea).
[63]
Mr Lang cannot understand how the COJ can state there is no dispute,
and no
bona fide
defence as claimed in
the verifying affidavit.
[64]
This it is submitted is the sixth ground confirming abuse, warranting
a dismissal of the application for summary judgment with
costs on the
attorney and client scale.
THE MATERIAL FACTUAL
DISPUTES AND BONA FIDE DEFENCES
[65]
The defendant's
bona
tide
defences have
been fully traversed in the plea , the content of which is
incorporated in Lang’s opposing affidavit on behalf
of Mir-Air.
The COJ was clearly aware of the defences before launching the
summary judgment application.
[66]
He states that the suggestion in paragraph 7 read with 11 and the
second set of paragraphs 22 and 23 of the verifying affidavit,
that a
bona tide
defence
was not disclosed and that there was non-compliance with rule 22(2)
is “disconcerting”.
[67]
The full detail of the disputes, the abortive accounting , inflated
charges and the like were fully traversed in the plea, supported
by
the COJ’s own statements, and objective evidence in the form of
photos taken.
[68]
He denies that it is common cause that the arrears on the account,
was
R2.1 million as alleged
in paragraph 13. This averment he says is false.
[69]
He
states that he have dealt with the excipiability of the POC above.
Despite being faced with an abrupt nonsensical and nonspecific
version the plea deals chapter and verse with the errors on the
account. To this I might add that to the extent that the COJ suggests
that all the accounts annexed causes the plea to be non-compliant and
not clear and concise, any such difficulty is nothing but
the result
of the chaos displayed in their accounts. It is clear
[2]
that
the COJ’s accounting is in chaos.
[70]
The COJ seeks to explain away the errors in the POC, by claiming that
there is no contradiction between paragraph s 4.2 to 4.5,
which is
incorrect (Paragraph 31 to the verifying affidavit).
[71]
Mr Lang regards the bare denial of Mir-Air’s version as
"the
Applicant"
[sic]
is “
neither
a
technician and/or
expert in electricity meter charges or the Applicant's systems."
as telling. So do I.
[72]
Despite the plaintiff having all the records and documents at its
disposal to address the defences raised in the plea, the best
the COJ
could muster is a reference to the August 2022 policy, the ombudsman
by-laws, and an (impermissible) attempt at amplifying
its case in the
verifying affidavit and bare denials. Mr Lang states that the COJ
ought to have known better that to proceed with
summary judgment
proceedings. The aforesaid is the 6
th
ground on which Mir-Air seeks dismissal of the application for
summary judgment and an attorney and client costs order.
The termination of
electricity supply in August 2022
[73]
Since the termination of the electricity supply in August 2022 there
has been no supply or consumption.
[74]
The property was vacated and has stood empty since March 2020.
(Paragraph 12.4 of the
plea).
[75]
The termination of electricity supply is confirmed by photos that
were taken and annexed to the plea as "A1" to "A3".
The old meter did not even show readings, as there was no electricity
supply. (Paragraph 12.6 to the plea).
[76]
In fact, on an assessment of "COJ3"
,
when read with "COJ1”
,
the COJ
contends that well over
R1,8 million worth of electricity was consumed (without any supply)
between 4 September and 4 December 2023.
[77]
From the aforesaid Lang draws the conclusion that the COJ’s
accounting is abysmal, the claim illiquid and non-existent
The account should be
in credit.
[78]
It is also contended that the account should be in credit. Lang makes
it clear that is not just a statement or conclusion as suggested
in
paragraph 30 of the verifying affidavit.
[79]
The electricity account was in credit of R436 719.17 as at 1 May 2018
as evidenced by the COJ’s own account annexed marked
"A4"
to the plea (paragraph 12.7 of the plea).
[80]
The old meter reading as at 28 July 2022 (just prior to the
electricity to the property being terminated by the COJ was 268
974.00
KwH
,
as
evidenced by the photo annexed marked "A5" to the plea.
(Paragraph 12. and 12.8 to the plea).
[81]
It is submitted, that having regard to the aforegoing, Mir-Air
remains in
credit on the account, as
the actual limited consumption , prior to the termination of
electricity supply did not erase the credit,
alternatively, same
renders the claim illiquid.
Purported Actual Meter
Readings
[82]
Despite the factual old meter reading on 28 July 2022, evidenced by
"A5"
,
the
COJ rendered a statement for November 2022, annexed to the plea as
“A11.7” purporting to reflect a commencement
meter
reading on the old meter on ·1 August 2022 of 378 760 .00 KwH,
which is an impossibility having regard to the actual
meter reading,
evidenced by "A5"
.
[83]
A11.7 reflects same as an “Actual” reading.
[84]
The COJ in addition reflected a purported "Actual Reading”
of 299 020 .00 KwH (end meter reading) on the old meter,
in its
statement of August 2020 ("A11" to the plea).
[85]
It is thus contended that 2 years before the old rneter reaching
consumption of 268 974.00 KwH, the COJ already over billed Mir-Air
f
or
30
046 KwH.
[86]
Lang states that one need not be an expert to see this and once again
draws attention to “A5” the photograph taken
on 28 July
2022 reflecting a reading of 268 974.00 KwH and the statement of
August 2020 annexed as “A11” to the plea
reflecting a
purported “Actual reading” of 299 020.00 KwH.
[87]
The differential between the above two readings are 30 046.00
KwH.
[88]
Lang alleges that the aforesaid are objective facts which confirm
inflated charges being levied with the false entry as “Actual
Readings”.
[89]
These inflated estimated readings (purporting to be “Actual
readings” are then carried over from one month to the next
and
by further inflated readings as appears from “A11.1 –
“A11.8” to the plea.
[90]
Then the COJ closes of the old meter reading with an estimated end
meter reading on 6 July 2023 of 569 086.73o KwH.
[91]
The reality is, however, different by then there was only a new meter
reading zero. As Lang puts it: “At the risk of stating
the
obvious it is impossible to consume over 300 000.00 KwH from
August 2022 to 6 July 2023 (bearing in mind the electricity
supply
has been terminated).
Superimposing of old
meter reading, to the new meter on the account.
[92]
According to the COJ’s statement for July 2023 ("A9"),
the new meter was installed with a reading of zero and a
reading from
1 March 2023, ending with an estimate reading of 30 378.0 82 KwH .
This statement reflects both the old and new meters,
with different
readings.
[93]
Inexplicably according to the COJ’s statement for September
2023 (”A10”) the new meter was installed with a reading
of zero and metered consumption from 23 June 2023. The end meter
reading on the new meter is 478 647 KwH, as of 4 September
2023,
supposedly an "Actual Reading ".
[94]
Curiously, the start meter reading for the old meter, as of 1 March
2023, in "A9'' to the plea, was exactly 478 647.00 . ("A9"
read with paragraph 12.14 of the plea.)
[95]
The COJ simply imported the inflated start meter reading of the old
meter as of 1 March 2023 (478 647KwH as an "Actual
Reading"
,
as
of 4 September 2023, per “A10”.
[96]
Based on this unlawful import of readings, the COJ raised R1 832 224-
48 in "A10" (leaving aside levies and reversals),
for
electricity consumption over 74 days, where there was no electricity
supply to the property.
New meter readings
[97]
It is by now trite that the new meter reads zero. Notwithstanding
this the COJ rendered “A10” in September 2023 with
a
purported “Actual reading” of 478 647 KwH.
Minus consumption,
equating to positive charges/ incomprehensible calculations.
[98]
Mr Lang finds it disconcerting that the COJ is unable to do basic
arithmetic when computing charges. The commencement readings
are
higher than the end meter readings.
[99]
Despite a negative consumption reflected in invoices (which is of
itself impossible) the statements compute positive consumption,
bearing no relation to any principles of arithmetic . This issue was
traversed in the plea. (Paragraphs 12.17 to 12.18.1 read with
"A12"
to
"A13.1"
to the plea).
[100]
He refers to "A12" where the start reading is 339 643
00. 0 and the end reading is 268 655.00, which somehow (according
to
the COJ (and the deponent)) equates to positive consumption of 929
012.00 KwH. The -electricity charges raised in "A12"
are
over
R1
389 215-00 (leaving aside reversals and ancillary charges).under
circumstances where 107.1.1. 339 643.000 minus 268 655.00 =
- (minus)
70 998 KwH.
[101]
The aforesaid are the 7
th
of 12 grounds in support of costs on the attorney and client scale.
SECTION 102(2) OF THE
MSA
[102]
As explained in the plea, disputes have been lodged and a full record
of same is annexed to the plea, and properly pleaded therein.
The
disputes are confirmed and supported by "B1" to "B3"
to the plea (Paragraphs 18-20).
[103]
In the circumstances the COJ is not entitled to pursue enforcement as
it does in the action, unless and until it complies with
its
obligations in terms of the MSA.
RESPONSES TO
ARGUMENTATIVE MATTER
[104]
Lang denies the entire content of the verifying affidavit insofar as
same is inconsistent with his affidavit and the plea on behalf
of
Mir-Air.
[105]
He then deals with the individual paragraphs of the verifying
affidavit , insofar as same warrants a response.
[106]
I do not repeat same here save to record his observation that any
legal advisor should be able to see that the application is an
abuse.
THE COJ’S
ARGUMENT
[107]
In
the hearing of the matter, the COJ persisted with the application and
sought to persuade me that the answering affidavit to the
application
for summary judgment does not disclose a defence. The first point
raised in paragraph 3 of its heads was that Mir-Air
filed a defective
affidavit resisting summary judgment inasmuch as there was no
resolution attached from Mir-Air empowering the
deponent to depose to
the affidavit on behalf of Mir-Air, being a company. This is of no
consequence, given that it has been held
that the appropriate method
to attack authority is to utilise Rule 7 of the Uniform Rules of
Court.
[3]
I therefore refuse to
strike the affidavit out.
[108]
The
rest of the argument dealt with the applicable credit policies and
the dispute resolution mechanism of the COJ. I was also referred
to
the ombudsman bylaws but do not intend to refer thereto. What was not
addressed was the fact that there is no allegation in
the particulars
of claim that, during the relevant period, the COJ actually provided
the electricity.
[109]
The
explanation for the sudden jump in the quantity in the verifying
affidavit is that, given that the COJ continues to levy monthly
charges on the account, it cannot be expected to amend the summons at
every stage and thus it submits that the judgment should
be granted
based on the notion that the amount which is referred to as due and
payable as at the application for summary judgment
is now due. I
cannot agree with this. If the COJ wanted to amend its particulars of
claim it should have done so and not introduce
it via the verifying
affidavit.
[110]
A lot
was made of the fact that the COJ’s credit control policy and
by-laws allow it to rely on interim readings or estimates
and this
was supposed to magically make the conflicts in the COJ’s case
disappear.
[111]
It was
further asserted that conflicting submissions are pleaded in efforts
to create a false dispute of fact to avoid summary judgment.
I cannot
accede to this allegation. If anything, this could be said of the
COJ’s approach to this matter.
[112]
I do
not accept that the reliance on the clause 11 of 2004 or clause 16 of
the 2022 policy and by-laws reference number is relevant.
To the
extent that the COJ relies hereon, it seeks to bypass the fundamental
conflicts and omissions in its own case which cannot
be overcome in
this fashion.
[113]
The
email trail referred to, in which Mir-Air tried to raise a pending
dispute, reflects that Mir-Air advised the COJ that the query
will
not be logged and that Lang will have to call and supply information,
alternatively, visit the nearest branch. Apparently,
the fact that he
lives in Hermanus does not count.
[114]
With
regard to the multiple photographs reflecting the conflicting
readings during the period reflected in Mir-Air’s answering
affidavit, the COJ simply assumes that the photographs are intended
to prove discrepancies in the reading capturing computation
and
billings of Mir-Air’s amount. It submits that the alleged
defences could have been resolved had it properly logged queries
and/or formal disputes. Not only does this not engage with the
defects in the COJ summons, but the attempt made by Mir-Air to
declare a dispute was rebuffed, as is evident from the email
correspondence.
[115]
The
COJ’s heads of argument further reflect that, in terms of Rule
22(6), the defence must be clear and concise and that Mir-Air
failed
to make out such a case by making conflicting and confusing
submissions, which was clearly intended to create a “self-laid
dispute of fact which should be adjudicated at trial”. I cannot
agree that this is the case. If anything, the various annexures
and
photographs demonstrate the problems with the accounting system of
the COJ and, rather than embarking on further argument,
it should
have accepted the offer made by Mir-Air to withdraw the application
for summary judgment. By not doing so, it opened
itself up to the
risk of a punitive costs order.
[116]
It is
then rather startlingly submitted that Mir-Air’s opinion on how
and what the readings should be does not constitute
a valid query
and/or dispute. In amplification, it is submitted that on Mir-Air’s
own admissions there were actual readings
captured on the account
which, in Mir-Air’s opinion, are “false actuals”.
[117]
It
was submitted that Mir-Air, to successfully counter the actual
charges captured by the COJ, should have appointed a technical
expert
to prepare a report which details the alleged correct readings.
[4]
[118]
In
my view, obvious arithmetic demonstrates the fallacy of these
submissions and the various photographs with their respective dates
of the various readings from the relevant meters demonstrates that
this argument is devoid of any content. Reliance was also placed
on
the decision in
Body
Corporate Croftdene Mall v Ethekwini Municipality
[5]
paragraph
22 where the Court stated as follows:
“
[22]
It is, in my view, of importance that s 102(2) 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 properly 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.
”
[119]
Inasmuch
as it requires the ratepayer to furnish facts that would adequately
enable the municipality to ascertain or identify the
disputed item or
items and the basis for its objection, no more need to be said.
Mir-Air provided the COJ with ample evidence of
the items in dispute
and they are all properly identified and properly raised and I cannot
fault Mir-Air’s calculations.
[120]
Despite
the argument put forward by the COJ, I am satisfied that Mir-Air
disclosed a
bona
fide
defence
in addition to the further and numerous arguments made by the COJ. I
should point to the submissions made by Mir-Air, i.e.
to the effect
that the COJ’s attempt at enforcement of the summons is
unlawful and contravenes section 102(2) of the Municipal
Systems Act
32 of 2000 (“the MSA”), which reads as follows:
“
102
Accounts
(1) A municipality
may-
(a) consolidate
any separate accounts of persons liable for payments to the
municipality;
(b) credit a
payment by such a person against any account of that person; and
(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
.
(3) A municipality
must provide an owner of a property in its jurisdiction with copies
of accounts sent to the occupier of the property
for municipal
services supplied to such a property if the owner requests such
accounts in writing from the municipality concerned.
[Sub-s.
(3) added by
s.
17
of
Act 19
of 2008
(wef
13 October 2008).]
”
[121]
I
cannot fault the notion that Mir-Air was in credit for R436 719.17
when the old meter had an actual reading of 157,806.00
KwH.
[122]
I also
agree with Mir-Air that the COJ’s quantum and claim cannot be
liquidated given that it has not been fixed by agreement
or by a
judgment of the court and no amount of credit control policy or
bylaws can change these principles. This is even more so
where the
figures are estimates.
[123]
I
agree with the conclusion that was reached in
Oos-Randse
Bantoesake Administrasieraad v Santam Versekeringsmaatskappy Bpk en
Andere (2)
,
[6]
where it was said that:
“…
if
the ascertainment of the amount is a mere matter of calculation. In
the last-mentioned case, however, the data upon which the
calculation
is to be based would themselves have to be amounts about which there
was no room for uncertainty, estimation or debate
.”
[124]
It
follows that the amounts claimed are not based on the fact that they
are liquidated as opposed to same being disputed in substance.
The
massive defect in the COJ’s claim still remains. The failure to
allege that, during the relevant period, electricity
was supplied
and, in fact, it in no way, not even in the purported verifying
affidavit, engages the difficulties raised in the
plea following upon
the termination and the fact that there was no electricity supply
since the termination. The affidavit supports
the allegations in the
plea that, since August 2022, and absent supply, the old meter was
removed by the COJ in October 2022 and,
despite no supply since
August 2022 and in the absence of any meter between November 2022 and
June 2023, the COJ, regardless, rendered
statements levying charges
on estimates and purported actual meter readings on the old meter.
The full import of this nonsense
is clearly lost on the COJ.
[125]
Notwithstanding
the termination, the consumption of the old meter is still reflected
as late as July 2023.
[126]
The
last reading captured by Mir-Air, and proven by a photograph,
annexure “A5”, at paragraph 89 of the replying affidavit,
was 268974.00 as of 28 July 2022, and the last statement for the old
meter (July 2023) reflects a reading of 569086.73. This is
not only
mindboggling but a strong indication that the COJ has not the
faintest comprehension of what the ground level facts are.
No wonder
Mir-Air points out that this is double the end-meter reading of the
old meter, over 300 000.00kWh more.
[127]
I
cannot simply disregard Mir-Air’s allegation that the new meter
was installed in June 2022, which commenced at zero and
which
measured no consumption absent supply. Nevertheless, as of 14
November 2023, two months after the service of the summons,
the new
meter still reflected a zero reading.
[128]
That
notwithstanding, the COJ still rendered statements on the new meter,
reflecting estimates as high as 566,746.838 KwH (“COJ3”)
appended to the verifying affidavit and actual readings as high as
478,647.00 KwH The overcharge for electricity never supplied
is
alleged to be 300,112.73 KwH on the old meter and 568,746.838 KwH on
the new meter.
[129]
No
wonder Mir-Air contends that the COJ’s claim for 866,859.588
KwH is a conjured up figure. What should have happened is
that the
credit of R436 719.17 should have been deducted from any alleged
(but denied) charges minus 111 168.00kWh consumption
between May
2018 and the beginning of August 2022, which should have been
computed on published step tariffs per month for the
period 2018–2022
whilst having regard to prescription on part of the claim.
[130]
Not
only was this not done, but there is a complete failure to bear in
mind that charges like electricity could prescribe. No wonder
Mir-Air
describes the COJ’s accounting as chaotic and abysmal and that
all interest and penalties must be deducted as well
as ancillary
charges flowing from supply (where there was none).
[131]
Given
that no actual electricity supply is alleged and, in fact, Mir-Air
states that, after termination, there was no electricity
supply, as
is confirmed by annexures “A1” to “A3”, is so
obvious. Surely, it must be clear to the COJ that
no estimates can be
raised when there is no
de facto
supply.
[132]
I could
go much further than I have done so far and deal with the balance of
Mir-Air’s opposing affidavit, but same is not
necessary. It is
clear that the COJ has not the faintest idea of what is going on on
the ground and that its accounting system
seems to take cognisance of
fictitious facts. It is thus no wonder that Mir-Air alleges a
contravention of sections 95 and 96 of
the MSA, despite which the COJ
confirms same as actual readings. The relevant sections read as
follows:
“
95
Customer care and management
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-
(a) establish a
sound customer management system that aims to create a positive and
reciprocal relationship between persons
liable for these payments and
the municipality, and where applicable, a service provider,
(b) establish
mechanisms for users of services and ratepayers to give feedback to
the municipality or other service provider
regarding the quality of
the services and the performance of the service provider;
(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); and
(i) provide
accessible pay points and other mechanisms for settling accounts or
for making pre-payments for services.
96 Debt collection
responsibility of municipalities
A municipality-
(a) must collect
all money that is due and payable to it, subject to this Act and
any other applicable legislation;
and
(b)
for this purpose, must adopt, maintain and implement a credit
control and debt collection policy which is consistent with
its rates
and tariff policies and complies with the provisions of this Act.
”
[133]
I do
not intend to elaborate any further on the opposing affidavit,
suffice to say that by the application of basic arithmetic and
logic
it is clear that the quantum claimed by the COJ must be incorrect.
[134]
The
implementation of the COJ’s own accounting system seems to be
chaotic, erratic and, at best, random, in terms of the outcomes
achieved.
[135]
Mir-Air
raises prescription in its affidavit and points out that the charges
are levied from 2018 to 2023. I have noticed that Mir-Air
did not
plead prescription in its pleadings, but, at the same time, the COJ
never pleaded the period in which the alleged liability
arose in the
particulars of claim. Mir-Air raises prescription squarely in its
opposing affidavit and also refers to the fact that
the summons was
excipiable. Presumably, it is still entitled to amend its plea to
raise prescription squarely.
[136]
Finally,
Mir-Air also alleges that the judgment in
Croftdene,
which
the COJ relies on, is misconstrued, especially in the context of
pursuing enforcement unlawfully.
[137]
It was
submitted that
Croftdene
does
not assist the COJ and finds no application.
[138]
To put
it rather bluntly, in
Croftdene
the SCA
never stated that absent pleading a specific quantum a dispute does
not exist.
[139]
In all
the circumstances, it is clear that the defences are not put up to
raise a false dispute and that they all go to the root
of the COJ’s
conduct, not only when charging on the basis of estimates when there
is
de
facto
no
electricity supply, but also in the sense that the allegations as
read in the plea, together with the opposing affidavit of Mir-Air,
puts it beyond argument that summary judgment cannot be obtained in
these circumstances.
[140]
Mir-Air
claims that the summons is excipiable. it is true that no cause of
action is made out in the particulars of claim for the
supply of
electricity under circumstances where same is not even alleged. One
is supposed to infer it from the invoices and that
is not the way you
plead your particulars of claim.
[141]
It is
also highly doubtful that the deponent, in the verifying affidavit,
has the slightest knowledge of what is really going on
in the
accounting systems, let alone what is going on in terms of
electricity supply in reality.
[142]
I was
urged to grant leave to defend and a punitive costs order against the
COJ. I believe a punitive costs order is justified.
[143]
I
accordingly make the following orders:
143.1
the
Plaintiff’s application for summary judgment is dismissed;
143.2
the
Plaintiff is ordered to pay the costs of the summary judgment
proceedings on the attorney and client scale;
143.3
The
Defendant is granted leave to proceed with the conduct of its defence
in the above matter.
S VAN NIEUWENHUIZEN AJ
ACTING JUDGE OF THE
HIGH COURT
Date of hearing: !6
May 2024
Date of judgment: 30
September 2024
Representation for
plaintiff
Counsel:
None
Attorney
Appearing:
Lucky
Moenyane
c/o
Madhlopa Thenga Inc
17
Power Street, Germiston
P
O Box 522935, Saxonwold, 2132
Tel:
087 135 5672
Cell:
078 888 6661
Email:
lucky@madhlopathenga.co.za
Representation for
respondent
Counsel:
Adv
C van der Merwe
Cell: 082 788
3911
Email:
dominus.cvdm@gmail.com
Instructed by:
Darryl Ackerman
Attorneys
Tel: 011 268 2593
Email:
leonette@ackermanlaw.co.za
[1]
See para 5 of the
verifying affidavit.
[2]
Cf
the judgment in
Ackerman v City
of
Johannesburg
and
two others 2024 JDR 1449 (GJ)
[3]
See the discussion in
Erasmus: Superior Court Practice under Uniform Rule 7 – in the
present matter this could have been
done at the stage the defendant
entered its appearance to defend. The author is of the view that the
“The challenge may
also be brought in interlocutory
proceedings such as an application for summary judgment, or in an
application for rescission
of a summary judgment. ”
[5]
2012
(4) SA 169 (SCA)
[6]
1978
(1) SA 164
(W), at 168
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