Case Law[2023] ZAGPJHC 733South Africa
Afhco Holdings (Pty) Limited v City Of Johannesburg Metropolitan and Others (2021/58758) [2023] ZAGPJHC 733 (26 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
26 June 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Afhco Holdings (Pty) Limited v City Of Johannesburg Metropolitan and Others (2021/58758) [2023] ZAGPJHC 733 (26 June 2023)
Afhco Holdings (Pty) Limited v City Of Johannesburg Metropolitan and Others (2021/58758) [2023] ZAGPJHC 733 (26 June 2023)
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sino date 26 June 2023
IN THE HIGH COURT
OF SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO
: 2021/58758
In the matter between:
AFHCO
HOLDINGS (PTY) LIMITED
Applicant
And
CITY
OF JOHANNESBURG METROPOLITAN
First
Respondent
CITY
POWER JOHANNESBURG (PTY) LIMITED
Second
Respondent
JOHANNESBURG
WATER (PTY) LIMITED
Third
Respondent
FLOYD
BRINK
Fourth
Respondent
BRYNE
MADUKA
Fifth
Respondent
Coram:
M Van Nieuwenhuizen, AJ
Heard
on: 18 May 2023
Delivered:
26 June 2023
JUDGMENT
# M VAN NIEUWENHUIZEN,
AJ:
M VAN NIEUWENHUIZEN,
AJ
:
# [1]The
application came before me for hearing on the 18thof May 2023 in the unopposed Motion Court. The applicant sought
an order in terms of its draft Court order.[1]:
[1]
The
application came before me for hearing on the 18
th
of May 2023 in the unopposed Motion Court. The applicant sought
an order in terms of its draft Court order.
[1]
:
# [2]Having
heard argument from counsel for the applicant Ms Lombard and counsel
on behalf of the first to fifth respondents, Mr Sithole
(who appeared
at the hearing of the unopposed application on behalf of the
respondents), I handed down an order on the 18thof May 2023 in terms of the applicant’s draft Court order.[2]I granted an order in the following terms:
[2]
Having
heard argument from counsel for the applicant Ms Lombard and counsel
on behalf of the first to fifth respondents, Mr Sithole
(who appeared
at the hearing of the unopposed application on behalf of the
respondents), I handed down an order on the 18
th
of May 2023 in terms of the applicant’s draft Court order.
[2]
I granted an order in the following terms:
## 2.1 The fifth respondent
is joined to these proceedings.
2.1 The fifth respondent
is joined to these proceedings.
## 2.2 The first, second and
third respondents are declared to be in contempt of the Court order
(“the Court order”) dated the 14thof June 2022;
2.2 The first, second and
third respondents are declared to be in contempt of the Court order
(“
the Court order
”
) dated the 14
th
of June 2022;
## 2.3 The first, second and
third respondents are ordered to fully comply with the terms of the
Court order, within 10 (ten) days
of service of this order;
2.3 The first, second and
third respondents are ordered to fully comply with the terms of the
Court order, within 10 (ten) days
of service of this order;
## 2.4 The fifth respondent
is ordered to take all necessary steps to ensure that the first,
second and third respondents fully comply
with the terms of the Court
order, within 10 (ten) days of service of this order;
2.4 The fifth respondent
is ordered to take all necessary steps to ensure that the first,
second and third respondents fully comply
with the terms of the Court
order, within 10 (ten) days of service of this order;
## 2.5 In the event of the
first and/or second and/or third respondents failing to comply with
paragraph 2.3 above:
2.5 In the event of the
first and/or second and/or third respondents failing to comply with
paragraph 2.3 above:
### 2.5.1 ordering the
fifth respondent to appear before Court on a date stipulated by the
Court, to show cause as to why an order
should not be granted:
2.5.1 ordering the
fifth respondent to appear before Court on a date stipulated by the
Court, to show cause as to why an order
should not be granted:
#### 2.5.1.1 declaring the
fifth respondent, in his personal capacity to be in contempt of this
order;
2.5.1.1 declaring the
fifth respondent, in his personal capacity to be in contempt of this
order;
#### 2.5.1.2 committing the
fifth respondent to imprisonment until such time as the first, second
and third respondents have fully complied
with the provisions of the
Court order;
2.5.1.2 committing the
fifth respondent to imprisonment until such time as the first, second
and third respondents have fully complied
with the provisions of the
Court order;
### 2.5.2 ordering the
fifth respondent to pay the costs of this application in his personal
capacity, jointly and severally with
the first, second and third
respondents, on an attorney and own client scale.
2.5.2 ordering the
fifth respondent to pay the costs of this application in his personal
capacity, jointly and severally with
the first, second and third
respondents, on an attorney and own client scale.
## 2.6The
first, second and third respondents are ordered to pay the costs of
this application on an attorney and own client scale, jointly
and
severally andin
solidum,
the one paying the other to be absolved.[3]
2.6
The
first, second and third respondents are ordered to pay the costs of
this application on an attorney and own client scale, jointly
and
severally and
in
solidum
,
the one paying the other to be absolved.
[3]
# [3]A
request for reasons in terms of Rule 49 was delivered by the
respondents on the 31stof May 2022.[4]
[3]
A
request for reasons in terms of Rule 49 was delivered by the
respondents on the 31
st
of May 2022.
[4]
# [4]On
the 7thof June 2023 the respondents delivered and uploaded to CaseLines an
application for leave to appeal[5]wherein the respondents sought leave to appeal to the Full Bench of
the Gauteng Division, Johannesburg,alternativelyto the Supreme Court of Appeal against the entire order contained in
my ruling delivered on the 18thof May 2023. The reasons underpinning the application for leave
to appeal included that I erred in not finding that at the
time of
hearing the contempt of Court application, the respondents had not
complied with the Court order of His Lordship Mr Justice
Vorster AJ
dated 14 June 2022 and presented such evidence before Court.[6]The respondents furthermore state in their application for leave to
appeal “To
the contrary and had the learned Judge had regard to the compliance
evidence as submitted before Court would have found that
the
respondents were not in contempt of the Court for the alleged failure
to comply with the Court order of His Lordship Mr Justice
Vorster AJ
dated 14 June 2022”.[7]The respondents state that further grounds of fact and law to this
application for leave to appeal shall be provided in a
supplementary
notice of appeal upon receipt of the reasons for granting the orders
in my Court order.[8]
[4]
On
the 7
th
of June 2023 the respondents delivered and uploaded to CaseLines an
application for leave to appeal
[5]
wherein the respondents sought leave to appeal to the Full Bench of
the Gauteng Division, Johannesburg,
alternatively
to the Supreme Court of Appeal against the entire order contained in
my ruling delivered on the 18
th
of May 2023. The reasons underpinning the application for leave
to appeal included that I erred in not finding that at the
time of
hearing the contempt of Court application, the respondents had not
complied with the Court order of His Lordship Mr Justice
Vorster AJ
dated 14 June 2022 and presented such evidence before Court.
[6]
The respondents furthermore state in their application for leave to
appeal “
To
the contrary and had the learned Judge had regard to the compliance
evidence as submitted before Court would have found that
the
respondents were not in contempt of the Court for the alleged failure
to comply with the Court order of His Lordship Mr Justice
Vorster AJ
dated 14 June 2022”
.
[7]
The respondents state that further grounds of fact and law to this
application for leave to appeal shall be provided in a
supplementary
notice of appeal upon receipt of the reasons for granting the orders
in my Court order.
[8]
# [5] It is not my
intention to deal with the application for leave to appeal, which
will no doubt, on the handing down of this judgment
be proceeded with
by the respondents in the normal course.
[5] It is not my
intention to deal with the application for leave to appeal, which
will no doubt, on the handing down of this judgment
be proceeded with
by the respondents in the normal course.
# [6] The matter concerns
the re-billing and rectification of a municipal account pertaining to
a vacant stand of which the applicant
is the registered owner, namely
Erf 279 Jeppestown South situated at 3 Long Street, Jeppestown South
(“the property”).
[6] The matter concerns
the re-billing and rectification of a municipal account pertaining to
a vacant stand of which the applicant
is the registered owner, namely
Erf 279 Jeppestown South situated at 3 Long Street, Jeppestown South
(“
the property
”
).
Contempt application
# [7]At
the outset Ms Lombard referred me to a Court order dated the 22ndof March 2023 granted by Wanless AJ by agreement between the parties
in the following terms:[9]
[7]
At
the outset Ms Lombard referred me to a Court order dated the 22
nd
of March 2023 granted by Wanless AJ by agreement between the parties
in the following terms:
[9]
“
[1]
The application is postponed sine die.
[2]
The first to fifth respondents relinquish their rights to deliver an
answering affidavit to the contempt of Court
application instituted
under the above case number.
[3]
The first to fifth respondents are afforded a final indulgence until
the
6
th
of April
2023
, to comply with the Honourable Justice Vorster’s
order dated 14 June 2022 and granted under the above case number.
[4]
No further postponements will be afforded to the first to fifth
respondents with regards to the contempt of Court
application
instituted under the abovementioned case number.
[5]
Ordering the first to fifth respondents to pay the wasted costs
occasioned by the postponement on the attorney and
client scale,
jointly and severally and in solidum the one paying the other to be
absolved.”
# [8] Ms Lombard on behalf
of the applicant argued that for want of non-compliance with the
order of Vorster AJ dated the 22ndof June 2022 and after
a plethora of correspondence, the respondents came to Court on the
22ndof March 2023 and sought a further indulgence from
this Court which culminated in the order of Wanless AJ. It is
apparent
from the aforementioned Court order by agreement that the
first to fifth respondents were afforded a final indulgence until the
6thof April 2023 to comply with Vorster AJ’s order,
that no further postponements would be afforded to the respondents
with
regard to the contempt of Court application and that the first
to fifth respondents relinquished their rights to deliver an
answering
affidavit to the contempt of Court application.
[8] Ms Lombard on behalf
of the applicant argued that for want of non-compliance with the
order of Vorster AJ dated the 22
nd
of June 2022 and after
a plethora of correspondence, the respondents came to Court on the
22
nd
of March 2023 and sought a further indulgence from
this Court which culminated in the order of Wanless AJ. It is
apparent
from the aforementioned Court order by agreement that the
first to fifth respondents were afforded a final indulgence until the
6
th
of April 2023 to comply with Vorster AJ’s order,
that no further postponements would be afforded to the respondents
with
regard to the contempt of Court application and that the first
to fifth respondents relinquished their rights to deliver an
answering
affidavit to the contempt of Court application.
# [9]The
application was served on the first to fifth respondents respectively
by way of Sheriff on the 20thof January 2023.[10]The
first to fifth respondents delivered a notice of intention to oppose
on the 17thof March 2023.[11]No
answering affidavit(s) have been filed on behalf of the respondents.
[9]
The
application was served on the first to fifth respondents respectively
by way of Sheriff on the 20
th
of January 2023.
[10]
The
first to fifth respondents delivered a notice of intention to oppose
on the 17
th
of March 2023.
[11]
No
answering affidavit(s) have been filed on behalf of the respondents.
# [10]On
the 22ndof March 2022 Wanless AJ granted an order in the terms as set out in
paragraph 7 by consent between the parties.[12]
[10]
On
the 22
nd
of March 2022 Wanless AJ granted an order in the terms as set out in
paragraph 7 by consent between the parties.
[12]
# [11] Ms Lombard
argued that the respondents have not complied with the order of
Vorster AJ to date, despite having been afforded
a final opportunity
to do so and as such are in contemptuous disregard of Vorster AJ’s
order.
[11] Ms Lombard
argued that the respondents have not complied with the order of
Vorster AJ to date, despite having been afforded
a final opportunity
to do so and as such are in contemptuous disregard of Vorster AJ’s
order.
# [12]A
notice of set down for the hearing dated the 18thof May 2023 was served on the first to fifth respondents’
attorneys of record by way of e-mail on the 20thof April 2023.[13]
[12]
A
notice of set down for the hearing dated the 18
th
of May 2023 was served on the first to fifth respondents’
attorneys of record by way of e-mail on the 20
th
of April 2023.
[13]
Initial application /
rectification application
# [13]An
order was granted by Vorster AJ on the 14thof June 2022 in terms of which it was ordered that the applicant’s
municipal account be rectified.[14]An order in the following terms was granted by Vorster AJ:
[13]
An
order was granted by Vorster AJ on the 14
th
of June 2022 in terms of which it was ordered that the applicant’s
municipal account be rectified.
[14]
An order in the following terms was granted by Vorster AJ:
“
[1] The
first, second, third and fourth respondents are ordered to rectify
Account No. 554763021 (hereinafter referred to as “the
account”) within 20 days of service of this order, in the
following material respects:
[1.1] The
first and/or second respondents are ordered to reverse all charges
raised for electricity consumption on the second respondent’s
electricity meter number 98370289 with effect the first respondent’s
March 2018 (2018/03/07) statement to date hereof;
[1.2] The
first and/or the second respondents are ordered to debit the 70 kBa
minimum demand charge per month to the account with
effect the first
respondent’s March 2018 (2018/03/07) statement to date hereof;
[1.3] The
first and/or third respondents are ordered to reverse all charges
raised for water and sewage consumption on the third
respondent’s
water meter number CNWA76 to the account with effect from the first
respondent’s March 2018 (2018/03/07)
statement to date hereof;
[1.4] The
first and/or third respondents are ordered to bill the correctly
applicable water and sewer availability charges to the
account for a
period not exceeding 3 years from date of the re-billing of the
account;
[1.5] The
first and/or second and/or third respondents are hereby ordered to
reverse all interest and/or default and/or pre-termination
charges
raised to the account with effect from the first respondent’s
March 2018 (2018/03/07) statement to date hereof;
[1.6] The
first respondent is ordered to furnish the applicant with an accurate
and rectified municipal statement in terms of paragraphs
1.1 to 1.5
above within 20 days of service of this order;
[1.7] The
fourth respondent is ordered to ensure that the first and/or second
and/or third respondents fully comply with their obligations
in terms
of paragraphs 1.1 to 1.6 above.
[2] The costs
of this application are to be borne by the first, second and third
respondents, jointly and severally and in solidum,
the one paying the
other to be absolved, on the attorney and own client scale.”
# [14]The
applicant’s attorney of record served the order on the first,
second and fourth respondents’ attorney of record
on the 4thof July 2022 and on the third respondent on the 6thof July 2022.[15]
[14]
The
applicant’s attorney of record served the order on the first,
second and fourth respondents’ attorney of record
on the 4
th
of July 2022 and on the third respondent on the 6
th
of July 2022.
[15]
# [15]In
terms of clause 1.6 of the order the first respondent were to furnish
the applicant with an accurate and rectified municipal
statement in
terms of paragraphs 1.1 to 1.5 of the order of Vorster AJ by the 3rdof August 2022.[16]
[15]
In
terms of clause 1.6 of the order the first respondent were to furnish
the applicant with an accurate and rectified municipal
statement in
terms of paragraphs 1.1 to 1.5 of the order of Vorster AJ by the 3
rd
of August 2022.
[16]
# [16]Notwithstanding
the exchange of a plethora of correspondence as well as numerous
meetings the applicant contends that there has
been no compliance
with the order at any stage.[17]
[16]
Notwithstanding
the exchange of a plethora of correspondence as well as numerous
meetings the applicant contends that there has
been no compliance
with the order at any stage.
[17]
Joinder of the fifth
respondent
# [17]The
joinder of the fifth respondent is sought, in circumstances where he
is the new Acting Municipal Manager, responsible for the
discharge of
the first respondent’s obligations. The fourth respondent
was the Municipal Manager, at the time the rectification
application
was instituted, and the order of Vorster AJ granted. The fourth
respondent was subsequently suspended, and the
fifth respondent
appointed in his place.[18]
[17]
The
joinder of the fifth respondent is sought, in circumstances where he
is the new Acting Municipal Manager, responsible for the
discharge of
the first respondent’s obligations. The fourth respondent
was the Municipal Manager, at the time the rectification
application
was instituted, and the order of Vorster AJ granted. The fourth
respondent was subsequently suspended, and the
fifth respondent
appointed in his place.
[18]
# [18]The
fifth respondent is the Acting City Manager of the first respondent.
He is the relevant and duly appointed responsible
official of the
first respondent who is mandated to ensure that the first respondent
and its officialsinter
alia,fully comply with their mandated and lawful responsibilities in terms
of the provisions of the Local Government Municipal Systems
Act No.
32 of 2000 and/or all other relevant by-laws and national
legislation.[19]
[18]
The
fifth respondent is the Acting City Manager of the first respondent.
He is the relevant and duly appointed responsible
official of the
first respondent who is mandated to ensure that the first respondent
and its officials
inter
alia,
fully comply with their mandated and lawful responsibilities in terms
of the provisions of the Local Government Municipal Systems
Act No.
32 of 2000 and/or all other relevant by-laws and national
legislation.
[19]
# [19] In this
capacity and his appointment as such, the fifth respondent has
peremptory responsibilities to the Executive and
the City of
Johannesburg’s ratepayers in terms of the provisions of the
Local Government Municipal Systems Act No. 32 of
2000 (“the
Act”).
[19] In this
capacity and his appointment as such, the fifth respondent has
peremptory responsibilities to the Executive and
the City of
Johannesburg’s ratepayers in terms of the provisions of the
Local Government Municipal Systems Act No. 32 of
2000 (“
the
Act”
).
# [20] In terms of
section 55(1)(b) of the Act, municipal managers:
[20] In terms of
section 55(1)(b) of the Act, municipal managers:
“
(1)
As head of administration the municipal manager of a municipality is,
subject to the policy directions of the municipal
council,
responsible and accountable for –
“
(b) the
management of the municipality’s administration in accordance
with this Act and other legislation applicable to the
municipality;”
# [21] In terms of
section 55(2) of the Act:
[21] In terms of
section 55(2) of the Act:
“
(2)
As accounting officer of the municipality the municipal manager is
responsible and accountable for –
(a) all income and
expenditure of the municipality;
(b) all assets and
the discharge of all liabilities of the municipality; and
(c) proper and
diligent compliance with applicable municipal finance management
legislation.”
# [22] Having regard
to the provisions of the Act, the fifth respondent is ultimately the
senior official within the first respondent,
who is responsible,inter alia, for the proper performance of the first
respondent’s officials in the fulfilling of the first
respondent’s obligations
and duties owing to the ratepayers of
Johannesburg.
[22] Having regard
to the provisions of the Act, the fifth respondent is ultimately the
senior official within the first respondent,
who is responsible,
inter alia
, for the proper performance of the first
respondent’s officials in the fulfilling of the first
respondent’s obligations
and duties owing to the ratepayers of
Johannesburg.
# [23]The
applicant contends that having regard to the fact that the second and
third respondents are wholly owned subsidiaries of the
first
respondent and that the applicant has exhausted all of its efforts in
its dealings with the officials of the first respondent
in order to
obtain compliance with the Court order, it is necessary that the
fifth respondent be joined to these proceedings as
it is the
intention of the applicant to seek relief against the fifth
respondent in terms of his duties and responsibilities as
prescribed
in the Act.[20]
[23]
The
applicant contends that having regard to the fact that the second and
third respondents are wholly owned subsidiaries of the
first
respondent and that the applicant has exhausted all of its efforts in
its dealings with the officials of the first respondent
in order to
obtain compliance with the Court order, it is necessary that the
fifth respondent be joined to these proceedings as
it is the
intention of the applicant to seek relief against the fifth
respondent in terms of his duties and responsibilities as
prescribed
in the Act.
[20]
The first respondent’s
“
notice of compliance”
# [24]Ms
Lombard argued that the respondents came to Court that morning and
that her client was not aware of any opposition prior to the
respondents’ counsel arriving at Court the morning of the
unopposed hearing. Ms Lombard referred me to the respondents’
purported “notice
of compliance”which was uploaded to CaseLines at 09:16 on 18 May 2023, the date of
the hearing. The document uploaded is headed “Billing
account adjustment”.[21]Ms Lombard contended that the document so uploaded to CaseLines does
not constitute compliance with the Court order of Vorster
AJ and does
not constitute an accurate and rectified municipal statement as was
required in terms of paragraph 1.6 of Vorster AJ’s
order. It is
patently apparent that the document delivered by the respondents in
purported compliance with the Court order of Vorster
AJ does not
constitute an accurate and rectified municipal statement in terms of
paragraph 1.6 of Vorster AJ’s order. I accordingly
found that
the document purported to comply with Vorster AJ’s order does
not in fact comply with Vorster AJ’s order
and that the first
respondent has therefore not furnished the applicant with an accurate
and rectified municipal statement in terms
of paragraph 1.6 of
Vorster AJ’s order within 20 days of service of that order or
on the 6thof April 2023 in accordance with Wanless AJ’s order or as at 18
May 2023 when I granted the order.
[24]
Ms
Lombard argued that the respondents came to Court that morning and
that her client was not aware of any opposition prior to the
respondents’ counsel arriving at Court the morning of the
unopposed hearing. Ms Lombard referred me to the respondents’
purported “
notice
of compliance”
which was uploaded to CaseLines at 09:16 on 18 May 2023, the date of
the hearing. The document uploaded is headed “
Billing
account adjustment”
.
[21]
Ms Lombard contended that the document so uploaded to CaseLines does
not constitute compliance with the Court order of Vorster
AJ and does
not constitute an accurate and rectified municipal statement as was
required in terms of paragraph 1.6 of Vorster AJ’s
order. It is
patently apparent that the document delivered by the respondents in
purported compliance with the Court order of Vorster
AJ does not
constitute an accurate and rectified municipal statement in terms of
paragraph 1.6 of Vorster AJ’s order. I accordingly
found that
the document purported to comply with Vorster AJ’s order does
not in fact comply with Vorster AJ’s order
and that the first
respondent has therefore not furnished the applicant with an accurate
and rectified municipal statement in terms
of paragraph 1.6 of
Vorster AJ’s order within 20 days of service of that order or
on the 6
th
of April 2023 in accordance with Wanless AJ’s order or as at 18
May 2023 when I granted the order.
# [25] Ms Lombard
directed me to correspondence dated the 17thof May 2023
which was e-mailed to the applicant’s attorney at 4:34 pm the
day before the Court hearing wherein the attorney
forinter aliathe first respondent advised the applicant’s attorney as
follows:
[25] Ms Lombard
directed me to correspondence dated the 17
th
of May 2023
which was e-mailed to the applicant’s attorney at 4:34 pm the
day before the Court hearing wherein the attorney
for
inter alia
the first respondent advised the applicant’s attorney as
follows:
“…
We
refer to the above matter and e-mail below from our client.We are
advised that the journals have been approved and pending for
capturing. Our client instructed that we request that parties
prepare an order by agreement confirming that the respondents
are
afforded until 24 May 2023 to pass credits on the account.”
# The
applicant denied that there had been compliance with the Court
order.[22]
The
applicant denied that there had been compliance with the Court
order.
[22]
# [26] Ms Lombard
contended that on the respondents’ own version they have not
complied with Vorster AJ’s Court
order having regard to the
contents of the e-mail dated the 17thof May 2023.
[26] Ms Lombard
contended that on the respondents’ own version they have not
complied with Vorster AJ’s Court
order having regard to the
contents of the e-mail dated the 17
th
of May 2023.
# [27] Ms Lombard
furthermore contended that almost a year had lapsed since the
granting of the order by Vorster AJ and almost
a further two months
since the granting of the order of Wanless J and the respondents have
still not complied with either order.
Ms Lombard argued that
the respondents had been unequivocally prohibited to deliver an
answering affidavit by the order of Wanless
AJ and that the order
which the applicant seeks must therefore follow.
[27] Ms Lombard
furthermore contended that almost a year had lapsed since the
granting of the order by Vorster AJ and almost
a further two months
since the granting of the order of Wanless J and the respondents have
still not complied with either order.
Ms Lombard argued that
the respondents had been unequivocally prohibited to deliver an
answering affidavit by the order of Wanless
AJ and that the order
which the applicant seeks must therefore follow.
# [28] Ms Lombard
argued that with reference to the e-mail dated the 17thof
May 2023 wherein the respondents’ attorney states that they
request the parties to prepare an order by agreement confirming
that
the respondents are afforded until 24 May 2023 (own emphasis) to pass
credits on the account, Ms Lombard argued that if the
respondents
werebona fidethey would accede to the order in terms of
paragraph 3 of the draft Court order which reads “The first,
second and third respondents are ordered to fully comply with the
terms of the Court order, within 10 days of service
of this order”,
which 10 days would take the date beyond the 24thof May
as requested by the respondents.
[28] Ms Lombard
argued that with reference to the e-mail dated the 17
th
of
May 2023 wherein the respondents’ attorney states that they
request the parties to prepare an order by agreement confirming
that
the respondents are afforded until 24 May 2023 (own emphasis) to pass
credits on the account, Ms Lombard argued that if the
respondents
were
bona fide
they would accede to the order in terms of
paragraph 3 of the draft Court order which reads “
The first,
second and third respondents are ordered to fully comply with the
terms of the Court order, within 10 days of service
of this order”
,
which 10 days would take the date beyond the 24
th
of May
as requested by the respondents.
# The respondents’
contentions
The respondents’
contentions
# [29]Mr
Sithole on behalf of the respondents referred me to the
Constitutional Court judgment ofZuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
including
Organs of State and Others.[23]
[29]
Mr
Sithole on behalf of the respondents referred me to the
Constitutional Court judgment of
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
including
Organs of State and Others
.
[23]
# [30]On
the strength of theZumaState
Capture matter Mr Sithole argued that a party must show deliberate
conduct and unwillingness to participate and/or comply
with an order
and only then can a party be found guilty of contempt. Mr
Sithole contended that a failure to comply with a
Court order does
not automatically mean that one is in contempt. He argued that
Ms Lombard referred me to a document[24]where a thorough explanation has been provided to the Court where it
says, “We
are advised that the journals have been approved and pending for
capturing …”.
Mr Sithole argued that the re-billing of a municipal account has to
go through various systems and captured and approved
by various
individuals in various departments of the first, second and third
respondents. He argued that the document headed
“Billing
Account Adjustment”does
not indicate the actions of a delinquent litigant who does not want
to comply. Mr Sithole argued that I cannot find that
the
respondents are not willing to comply with the Court order and that
there is deliberate non-compliance with Vorster AJ’s
order in
the face of the document at CaseLines 053-3. Mr Sithole argued
that the applicant had referred me to an extract
from a journal that
is not in line with the Court order according to the applicant -
however Mr Sithole argues that this is not
the case before me.
Mr Sithole stated that the applicant’s case is that “nothing
had been done”in compliance with the Court order. Mr Sithole argued that
another Court would appreciate that once you have taken steps
in
compliance with a Court order there has been compliance.
[30]
On
the strength of the
Zuma
State
Capture matter Mr Sithole argued that a party must show deliberate
conduct and unwillingness to participate and/or comply
with an order
and only then can a party be found guilty of contempt. Mr
Sithole contended that a failure to comply with a
Court order does
not automatically mean that one is in contempt. He argued that
Ms Lombard referred me to a document
[24]
where a thorough explanation has been provided to the Court where it
says, “
We
are advised that the journals have been approved and pending for
capturing …”
.
Mr Sithole argued that the re-billing of a municipal account has to
go through various systems and captured and approved
by various
individuals in various departments of the first, second and third
respondents. He argued that the document headed
“
Billing
Account Adjustment”
does
not indicate the actions of a delinquent litigant who does not want
to comply. Mr Sithole argued that I cannot find that
the
respondents are not willing to comply with the Court order and that
there is deliberate non-compliance with Vorster AJ’s
order in
the face of the document at CaseLines 053-3. Mr Sithole argued
that the applicant had referred me to an extract
from a journal that
is not in line with the Court order according to the applicant -
however Mr Sithole argues that this is not
the case before me.
Mr Sithole stated that the applicant’s case is that “
nothing
had been done”
in compliance with the Court order. Mr Sithole argued that
another Court would appreciate that once you have taken steps
in
compliance with a Court order there has been compliance.
# [31] The
respondents also did not want to accept clause 3 of the applicant’s
draft Court order. Mr Sithole argued that
they have told me that the
capturing takes time and that I cannot grant an order in terms of
which they are provided a further
10 days to comply with the Court
order of Vorster AJ. Mr Sithole argued that there is no
prejudice to the applicant if the
municipal account is not rectified
as we now speak and it takes steps to be rectified, which this Court
refuses to accept.
Mr Sithole argued that the first respondent
operates through its individuals and they have different departments
and those departments
are run by different personnel and that the
different departments have to be engaged with and the different
departments have to
ascertain whether that which another department
has done is compliant with the Court order.
[31] The
respondents also did not want to accept clause 3 of the applicant’s
draft Court order. Mr Sithole argued that
they have told me that the
capturing takes time and that I cannot grant an order in terms of
which they are provided a further
10 days to comply with the Court
order of Vorster AJ. Mr Sithole argued that there is no
prejudice to the applicant if the
municipal account is not rectified
as we now speak and it takes steps to be rectified, which this Court
refuses to accept.
Mr Sithole argued that the first respondent
operates through its individuals and they have different departments
and those departments
are run by different personnel and that the
different departments have to be engaged with and the different
departments have to
ascertain whether that which another department
has done is compliant with the Court order.
# [32] Mr Sithole
argued that the document headed “Billing Account Adjustment”shows that the third respondent had taken steps to comply and
therefore they are compliant. I put it to Mr Sithole that the
Court order makes provision for specific orders that have to be
complied with and that one cannot merely say that one can take
any
step and that once you have taken any step, that constitutes
compliance. The Court order states exactly what his clients
had
to do and they have not complied.
[32] Mr Sithole
argued that the document headed “
Billing Account Adjustment”
shows that the third respondent had taken steps to comply and
therefore they are compliant. I put it to Mr Sithole that the
Court order makes provision for specific orders that have to be
complied with and that one cannot merely say that one can take
any
step and that once you have taken any step, that constitutes
compliance. The Court order states exactly what his clients
had
to do and they have not complied.
# [33] Mr Sithole
argued that I am not appreciating that his clients have taken steps.
Mr Sithole argued that I may not
agree with the respondents that they
are “fully compliant”and they seek an opportunity
to file an affidavit(s) to state why his clients say that the
document headed “Billing Account Adjustment”is
compliant. Mr Sithole also argued that I must consider what the
word “accurate”means in terms of clause 1.6 of
Vorster AJ’s Court order and whether it was one-sided - is it
accurate when the Court says
it’s accurate or is it accurate
when the respondents say it is accurate, however, Mr Sithole stated
that he did not intend
pursuing that argument.
[33] Mr Sithole
argued that I am not appreciating that his clients have taken steps.
Mr Sithole argued that I may not
agree with the respondents that they
are “
fully compliant”
and they seek an opportunity
to file an affidavit(s) to state why his clients say that the
document headed “
Billing Account Adjustment”
is
compliant. Mr Sithole also argued that I must consider what the
word “
accurate”
means in terms of clause 1.6 of
Vorster AJ’s Court order and whether it was one-sided - is it
accurate when the Court says
it’s accurate or is it accurate
when the respondents say it is accurate, however, Mr Sithole stated
that he did not intend
pursuing that argument.
# [34] Mr Sithole
requested that the matter be removed from the roll and argued that
his clients had tendered party and party
costs. Mr Sithole
argued further that I cannot justify granting the full order that the
applicant seeks, as the respondents
have taken steps. Mr
Sithole argued that if I am inclined to find that the steps that the
respondents took is not in compliance
with Vorster AJ’s Court
order, I ought to postpone the application affording them an
opportunity to file an answering affidavit(s)
to show that what they
have done constitutes compliance with the Court order of Vorster AJ.
[34] Mr Sithole
requested that the matter be removed from the roll and argued that
his clients had tendered party and party
costs. Mr Sithole
argued further that I cannot justify granting the full order that the
applicant seeks, as the respondents
have taken steps. Mr
Sithole argued that if I am inclined to find that the steps that the
respondents took is not in compliance
with Vorster AJ’s Court
order, I ought to postpone the application affording them an
opportunity to file an answering affidavit(s)
to show that what they
have done constitutes compliance with the Court order of Vorster AJ.
# [35]Mr
Sithole referred me to section 34 of the Constitution of the Republic
of South Africa[25]under the
heading “Access
to Courts”that
reads “Everyone
has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before
a Court
or, where appropriate, another independent and impartial tribunal or
forum”.
Mr Sithole argued that one must be allowed to place one’s case
before a Court. Mr Sithole furthermore argued that
the document
headed “Billing
Account Adjustment”means
that his client as individuals who are communicating with his
attorney have been advised that the journals have been approved
and
pending for capturing. Mr Sithole argued that there has been
capturing and understanding of the numbers punched in the
journals
and that that is in compliance with the Court order and therefore
awaiting capturing. Mr Sithole agrees that the
capturing has
not been done “in
accordance with the Court order and that such capturing is pending”.
Mr Sithole again states that I have to determine whether a party who
has taken steps is in contempt. Mr Sithole agrees
that they
have not re-billed a document in the form of a tax invoice in
accordance with paragraph 1.6 of the Court order.
[35]
Mr
Sithole referred me to section 34 of the Constitution of the Republic
of South Africa
[25]
under the
heading “
Access
to Courts”
that
reads “
Everyone
has the right to have any dispute that can be resolved by the
application of law decided in a fair public hearing before
a Court
or, where appropriate, another independent and impartial tribunal or
forum”
.
Mr Sithole argued that one must be allowed to place one’s case
before a Court. Mr Sithole furthermore argued that
the document
headed “
Billing
Account Adjustment”
means
that his client as individuals who are communicating with his
attorney have been advised that the journals have been approved
and
pending for capturing. Mr Sithole argued that there has been
capturing and understanding of the numbers punched in the
journals
and that that is in compliance with the Court order and therefore
awaiting capturing. Mr Sithole agrees that the
capturing has
not been done “
in
accordance with the Court order and that such capturing is pending”
.
Mr Sithole again states that I have to determine whether a party who
has taken steps is in contempt. Mr Sithole agrees
that they
have not re-billed a document in the form of a tax invoice in
accordance with paragraph 1.6 of the Court order.
# [36] Mr Sithole
argued that the matter has been settled by the parties and rightly or
wrongly the applicant disagrees with
the manner in which the
respondent says it has complied. Reasonable steps have been
taken – Mr Sithole states on a
question posed by me that they
have “not completely taken the steps in terms of the Court
order”but that “some steps”have been
taken. Mr Sithole argued that I must find that the parties are
in the process of compliance and that they will
comply but a gun
cannot be held against his client(s)’ heads to say that they
are in contempt and that they have to comply
with Vorster AJ’s
order within 10 days of granting of this Court’s order.
Mr Sithole argued that the next thing
will be that the fifth
respondent is arrested for contempt if they do not comply. Mr
Sithole argued that they will seek their
remedy if I make the Court
order as sought by the applicant. Mr Sithole argued that I am
turning a blind eye to the respondents’
version that they have
taken steps and hence, that I have rejected the respondents’
version to the effect that they have
taken steps.
[36] Mr Sithole
argued that the matter has been settled by the parties and rightly or
wrongly the applicant disagrees with
the manner in which the
respondent says it has complied. Reasonable steps have been
taken – Mr Sithole states on a
question posed by me that they
have “
not completely taken the steps in terms of the Court
order”
but that “
some steps”
have been
taken. Mr Sithole argued that I must find that the parties are
in the process of compliance and that they will
comply but a gun
cannot be held against his client(s)’ heads to say that they
are in contempt and that they have to comply
with Vorster AJ’s
order within 10 days of granting of this Court’s order.
Mr Sithole argued that the next thing
will be that the fifth
respondent is arrested for contempt if they do not comply. Mr
Sithole argued that they will seek their
remedy if I make the Court
order as sought by the applicant. Mr Sithole argued that I am
turning a blind eye to the respondents’
version that they have
taken steps and hence, that I have rejected the respondents’
version to the effect that they have
taken steps.
Deliberation
# [37]I
disagree with Mr Sithole’s contention that I am not called upon
to decide whether or not the document headed “Billing
account adjustment”under the heading “Notice
of compliance”[26]signed by three of seven individuals constitutes compliance in
accordance with Vorster AJ’s order. That is precisely
what I am called upon to determine in order to find whether or not
the respondents are in contempt of Vorster AJ’s Court
order.
This document clearly does not constitute “an
accurate and rectified municipal statement”in terms of paragraphs 1.6 of Vorster AJ’s order.
[37]
I
disagree with Mr Sithole’s contention that I am not called upon
to decide whether or not the document headed “
Billing
account adjustment”
under the heading “
Notice
of compliance”
[26]
signed by three of seven individuals constitutes compliance in
accordance with Vorster AJ’s order. That is precisely
what I am called upon to determine in order to find whether or not
the respondents are in contempt of Vorster AJ’s Court
order.
This document clearly does not constitute “
an
accurate and rectified municipal statement”
in terms of paragraphs 1.6 of Vorster AJ’s order.
# [38] Having regard
to my findings as set out in paragraph 37 above a further
postponement for the respondents to attempt to
show compliance with
the order of Vorster AJ will not assist the respondents.
Wanless AJ has ordered that there shall be
no further postponements
regarding the contempt application. Any request for a
postponement of this matter has been refused.
[38] Having regard
to my findings as set out in paragraph 37 above a further
postponement for the respondents to attempt to
show compliance with
the order of Vorster AJ will not assist the respondents.
Wanless AJ has ordered that there shall be
no further postponements
regarding the contempt application. Any request for a
postponement of this matter has been refused.
# [39] This Court
also rejects any assertion by the respondents that they have not been
afforded sufficient time in order to
fully comply with Vorster AJ’s
order specifically having regard to the respondents’ contention
that various approvals
have to be given by various individuals in
various departments of the first respondent.
[39] This Court
also rejects any assertion by the respondents that they have not been
afforded sufficient time in order to
fully comply with Vorster AJ’s
order specifically having regard to the respondents’ contention
that various approvals
have to be given by various individuals in
various departments of the first respondent.
# [40]One
only has to have regard to the exchange of the plethora of
correspondence[27]to
appreciate the prejudice that the applicant has suffered as a result
of the respondents’ non-compliance and to comprehend
the great
lengths to which the applicant’s attorney had gone in order to
attempt to induce the respondents to comply with
the Court order.
Various undertakings had been given by the respondents that they
would comply by certain dates and by which
dates there was still
non-compliance. One such letter[28]is addressed by the applicant’s attorney to the fifth
respondent dated the 5thof December 2022 wherein the applicant’s attorneyinter
aliastates the following:
[40]
One
only has to have regard to the exchange of the plethora of
correspondence
[27]
to
appreciate the prejudice that the applicant has suffered as a result
of the respondents’ non-compliance and to comprehend
the great
lengths to which the applicant’s attorney had gone in order to
attempt to induce the respondents to comply with
the Court order.
Various undertakings had been given by the respondents that they
would comply by certain dates and by which
dates there was still
non-compliance. One such letter
[28]
is addressed by the applicant’s attorney to the fifth
respondent dated the 5
th
of December 2022 wherein the applicant’s attorney
inter
alia
states the following:
“
3. We
address this letter to you for the sole purpose of furnishing the
City of Johannesburg, its subsidiaries as well as yourself
with one
final opportunity to comply with the relevant Court orders in respect
of the Long Street property.
4. As
City Manager, we have no doubt that you are familiar with the
aforementioned matters. Notwithstanding, please
be advised as
follows:
4.1
The Long Street property was purchased by our client around the
beginning of 2017 as vacant stands (subject to Erf 279
Jeppestown
South which was occupied by the previous owner until February 2018),
which our client intended to develop but did not.
4.2
Subject to Erf 279 Jeppestown South on which utilities were consumed
until February 2018 and were paid for by our client,
no water and/or
electricity have at any material time been consumed at the Long
Street property.
4.3
Despite the above, the City of Johannesburg have persistently billed
various individual erven of the Long Street property
for fictitious
water and/or electricity charges which our client has disputed for
several years to no avail (hereinafter referred
to as “the
fictitious billing”).
4.4
The most egregious fictitious billing occurred on account numbers
554763021, corresponding to Erf 279 Jeppestown South
and 554579424
corresponding to Erf 281 Jeppestown South. Such accounts’
combined arrears roughly reflected the incorrect
amount of
approximately R70 000 000,00 which falls to be reversed in
its entirety.
4.5
The incorrect billing on these two stands alone, exceeds the value of
all 63 (sixty three) stands that make up the Long
Street property.
4.6
In this regard our client launched various applications to compel the
City of Johannesburg as well as its subsidiaries,
Johannesburg Water
and City Power to reverse and correct the fictitious billing.
The attached Court order relates specifically
to account numbers
554763021 and 554579424.
4.7
To date hereof the City of Johannesburg, along with City Power and
Johannesburg Water, have failed to comply with the
Court orders.
4.8
In addition to the above, our client has sold the Long Street
property. However, our client is unable to effect
transfer of
same as a direct result of the failure of the City of Johannesburg to
correct the billing in terms of the Court orders
and supply correct
clearance figures.
4.9
Notwithstanding the fact that our client stands to lose the sale of
the property due to transfer not having taken place
to date hereof,
our client is suffering major damages in respect of inter alia costly
rates, sewer and water availability charges
that our client every
(sic)
is required to pay every month whilst the accounts
remain unrectified, and correct clearance figures are not
forthcoming.
Additionally, our client is forced to incur
security costs of approximately R156 000,00 per month to ensure
that the Long
Street property is not hijacked.
4.10
The above has been brought to the attention of the City of
Johannesburg, City Power and Johannesburg Water.
In this regard
various meetings were held and correspondence exchanged to urgently
correct the billing of accounts 554763021 and
554579424 in order for
our client to effect transfer of the Long Street property.
4.11
We were informed by the City of Johannesburg at the end of
October 2022 that the billing department was simply waiting for
relevant
journals to be signed off by City Power and Johannesburg
Water respectively after which the corrections would reflect on the
City
of Johannesburg system
.
(Own emphasis)
4.12
Despite numerous requests for an update regarding the above,
none have (sic) been forthcoming and it is clear that the process of
rectifying these accounts has come to a standstill
.
(Own emphasis)
4.13
In the circumstances we have prepared the relevant contempt of Court
applications as well as a damages action against
the City of
Johannesburg for the loss suffered by our client.
5. In
light of the above we implore you as the City Manager to take
immediate action in these matters to bring them to finality
and
ensure compliance with the Court orders.
6. Please
take note that should account numbers 554763021 and 554579424 not be
rectified in terms of the Court order by end
of business Friday the
13
th
of January 2023 we are instructed to
immediately institute the damages action as well as the contempt of
Court application in which
we will seek to hold you personally liable
with the City of Johannesburg, City Power and Johannesburg Water …”
# [41] The aforesaid
letter reflects a date prior to the launching of the contempt
application during January 2023 and prior
to the order of Wanless AJ
whereby the respondents had agreed to comply with Vorster AJ’s
Court order by no later than the
6thof April 2023.
[41] The aforesaid
letter reflects a date prior to the launching of the contempt
application during January 2023 and prior
to the order of Wanless AJ
whereby the respondents had agreed to comply with Vorster AJ’s
Court order by no later than the
6
th
of April 2023.
# [42]This
Court finds the respondents’ lackadaisical attitude to orders
of this Court contemptuous. It is apparent that by
the 6thof April 2023 the respondents had been in contemptuous disregard of
an order(s) of this Court. Mr Sithole’s assertions
to the
effect that the matter ought to be removed from the roll and that the
respondents may “fully
comply”with the order of Vorster AJ at their leisure “without
a gun being held to their heads”makes a mockery of any order that this Court has made or may
make.[29]
[42]
This
Court finds the respondents’ lackadaisical attitude to orders
of this Court contemptuous. It is apparent that by
the 6
th
of April 2023 the respondents had been in contemptuous disregard of
an order(s) of this Court. Mr Sithole’s assertions
to the
effect that the matter ought to be removed from the roll and that the
respondents may “
fully
comply”
with the order of Vorster AJ at their leisure “
without
a gun being held to their heads”
makes a mockery of any order that this Court has made or may
make.
[29]
Applicable legal
principles
# [43]In
the matter ofSikunye
Holdings (Pty) Ltd and the Municipal Manager of Govan Mbeki Local
Municipality and Others[30]Langa Jinter
aliaheld the following:
[43]
In
the matter of
Sikunye
Holdings (Pty) Ltd and the Municipal Manager of Govan Mbeki Local
Municipality and Others
[30]
Langa J
inter
alia
held the following:
“
[14] Concerning
the alleged non-compliance with the order, the respondent maintains
that it has complied with the order, albeit
partially, as it has
launched an application for leave to appeal in respect of the balance
of the orders, namely orders 3 and 5
of the judgment. The respondents
also note that although there has been compliance, in their view,
such compliance appears not
to have been in accord with the method
that the applicant believes should have been used. The respondents
suggest that the envisaged
meeting of the 28 March 2022 was aimed at
resolving the misunderstanding on the calculation of the amounts
involved. They, however,
also strongly argue that since the applicant
concedes in that the clearance certificates were indeed issued,
albeit incorrect,
it cannot therefore be argued that there was
non-compliance with the order. The respondents therefore maintain
that they were aware
of the order, they complied therewith partially
and that the applicant therefore failed to prove that there was
wilful and mala
fide non-compliance with the order.
The issues for
determination
[15] The
crisp issue for determination is whether the applicant has proved
beyond reasonable doubt that the respondents
are in contempt of the
court order as alleged by the Applicant.
The Legal
principles
[16] In
Fakie NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) the SCA held that civil contempt is an important tool to secure
compliance with a court order and that wilful disobedience
of a court
order made in civil proceedings is a criminal offence. The court held
further that the applicant in such motion proceedings
must prove that
an order was made by court, served (or notice given) on the
respondent, that it was not complied with by the respondent
and that
the non-compliance was mala fide. It is only after these requirements
have been proven that the respondent bears the onus
to prove
reasonable doubt that the non-compliance was not due to wilfulness or
mala fides on its part. The court held further that
a respondent can
however still escape liability if the wilful disobedience was a
result of his mistaken, but reasonable belief,
that he was entitled
to commit the act in question.
[17] In
Matjhabeng Local Municipality v Eskom Holdings Ltd and Others
2018
(1) SA 1
(CC) the Constitutional Court referred with approval to
Fakie supra, and stated the following:
[50] “It is
important to note that it “is a crime unlawfully and
intentionally to disobey a court order”. See
also
S v
Beyers
1968 (3) SA 70
(A). The crime of contempt of court is
said to be a “blunt instrument”.
Meadow Glen Home
Owners Association v City of Tshwane Metropolitan Municipality
[2014] ZASCA 209
;
2015 (2) SA 413
(SCA) (Meadow Glen) at paragraph
35. Because of this, “[w]ilful disobedience of an order made in
civil proceedings is both
contemptuous and a criminal offence”.
Simply put, all contempt of court, even civil contempt, may be
punishable as a crime.
The clarification is important because it
dispels any notion that the distinction between civil and criminal
contempt of court
is that the latter is a crime, and the former is
not.
[51] In summation,
the majority affirmed the availability of civil contempt, and that it
passes constitutional muster in the form
of a motion court
application adapted to constitutional requirements. It stated that
the respondent is not an accused person, but
is entitled to analogous
protections as are appropriate to motion proceedings. The majority
held that an applicant in contempt
proceedings must prove all the
requisites of contempt beyond reasonable doubt. However, it stated
that, “once the applicant
has proved the order, service or
notice, and non-compliance, the respondent bears an evidential burden
in relation to wilfulness
and mala fides”. See also
S v
Beyers
1968 (3) SA 70
(A);
Meadow Glen Home Owners
Association v City of Tshwane Metropolitan Municipality
[2014]
ZASCA 209
;
2015 (2) SA 413
(SCA).
Discussion and
evaluation
[18] Civil
contempt is an important tool to secure compliance with a court order
and that wilful disobedience of a court
order made in civil
proceedings is a criminal offence. Fakie NO v CCII Systems (Pty) Ltd.
Contempt of court or wilful disobedience
of a court order is a crime
which violates the dignity of the court and that the objectives of
the contempt proceedings are to
vindicate the authority of court and
to force the litigants to comply with court orders.
[19] While
contempt of court is not an issue inter partes but an issue between
the court and the party who failed to
comply, it is, however, trite
that for the first respondent to be held criminally liable it must be
proven that it was aware of
the order and failed to comply with the
order. The applicant in this case is therefore required to prove that
the respondents have
made unlawful and incorrect calculation of the
rates and charges on the property in question in violation of the
court order. It
is clear from the established principles that the
required standard for contempt of court is proof beyond reasonable
doubt. As
stated above, the respondents are not challenging the
existence of the order, or that they were aware thereof. The
respondents,
however, still deny the contravention of the order.”
# [44]In
the aforementioned matter the first respondent wasinter
aliafound to be in contempt of paragraphs 1, 2 and 4 of the order made by
the aforesaid Court on the 5thof August 2021 under case number 3763/2018. The first
respondent was committed to imprisonment for contempt of Court for
a
period of thirty days, which order was suspended in terms of
paragraph 3 of the Court order.[31]
[44]
In
the aforementioned matter the first respondent was
inter
alia
found to be in contempt of paragraphs 1, 2 and 4 of the order made by
the aforesaid Court on the 5
th
of August 2021 under case number 3763/2018. The first
respondent was committed to imprisonment for contempt of Court for
a
period of thirty days, which order was suspended in terms of
paragraph 3 of the Court order.
[31]
# [45]An
applicant for a committal order must establish service of the order,
non-compliance with the terms of the order and wilfulness
andmala
fidesbeyond a reasonable doubt.[32]
[45]
An
applicant for a committal order must establish service of the order,
non-compliance with the terms of the order and wilfulness
and
mala
fides
beyond a reasonable doubt.
[32]
# [46]In
the matter ofJR
v AL[33]Opperman J inter alia held:
[46]
In
the matter of
JR
v AL
[33]
Opperman J inter alia held:
“
Punitive and
coercive nature of contempt orders and sanction sought by applicant
[40] The
object of contempt proceedings is not only to punish the guilty party
but also to compel compliance with the
court order.
[41] In
his minority judgment in Fakie, Heher JA explained the marked and
important distinction between coercive and
punitive orders as
follows:
‘
[74] The
following are, I would suggest, the identifying characteristics of a
coercive order:
1. The sentence may
be avoided by the respondent after its imposition by appropriate
compliance with the terms of the original (breached)
order ad factum
praestandum together with any other terms of the committal order
which call for compliance. Such avoidance may
require purging a
default, an apology or an undertaking to desist from future offensive
conduct.
2. Such an order is
made for the benefit of the applicant in order to bring about
compliance with the breached order previously
made in his favour.
3. Such an order
bears no relationship to the respondent's degree of fault in
breaching the original order or to the contumacy of
the respondent
thereafter or to the amount involved in the dispute between the
parties.
4. Such an order is
made primarily to ensure the effectiveness of the original order and
only incidentally vindicates the authority
of the court.
[75] By
contrast, a punitive order has the following distinguishing features:
1. The
sentence may not be avoided by any action of the respondent after its
imposition.
2. The
sentence is related both to the seriousness of the default and the
contumacy of the respondent.
3. The
order is influenced by the need to assert the authority and dignity
of the court and as an example for others.
4. The
applicant gains nothing from the carrying out of the sentence.’
[42] In
the State Capture decision, Acting Deputy Chief Justice Khampepe
remarked that although she preferred the aforegoing
delineation, the
majority in Fakie:
‘…
.rejected
the idea that there is a bright line between the two, maintaining
that the binary between seeking enforcement through
a contempt order
and vindicating the authority of the court may be a false one. It
held that the enforcement of an order in contempt
proceedings has a
public dimension, and that it is almost impossible to disentangle the
punitive from the coercive purposes of
contempt order.’
[43] I was
urged to follow the approach formulated as follows in the State
Capture matter:
‘
[62]
Notwithstanding this, I might have been persuaded to compel
compliance had I been given a single reason to believe doing so
would
be a fruitful exercise. As it will not be fruitful, I defer to what
was said in Victoria Park Ratepayers’ Association:
“
Contempt of
court is not merely a means by which a frustrated successful litigant
is able to force his or her opponent to obey a
court order. Whenever
a litigant fails or refuses to obey a court order, he or she thereby
undermines the Constitution. That, in
turn, means that the court
called upon to commit such a litigant for his or her contempt is not
only dealing with the individual
interest of the frustrated
successful litigant but also, as importantly, acting as guardian of
the public interest.”
Indeed, at the core
of these contempt proceedings lies not only the integrity of this
Court and the Judiciary, but the vindication
of the Constitution
itself.’
[44]
Generally, in cases of contempt of court, a court is loath to
restrict the personal liberty of an individual and
if a period of
imprisonment is imposed, it is generally suspended. As such, at its
core, coercive committal, through a suspended
sentence, uses the
threat of imprisonment to compel compliance with a court order. This
is what the applicant contends he sought
when launching this
application. This is indeed borne out by the notice of motion as
originally crafted.
[45]
However, in light of the respondent’s continued contemptuous
non-compliance after service of the second contempt
application, the
applicant amended his notice of motion on 12 October 2021 to seek a
punitive order of 30 days direct imprisonment
alternatively a
punitive order in the form of a fine together with a suspended
sentence of direct imprisonment subject to certain
conditions.”
[34]
# [47] In paragraph
137 of theState Capturematter it was held that:
[47] In paragraph
137 of the
State Capture
matter it was held that:
“
[137]
The right, and privilege, of access to court, and to an effective
judicial process, is foundational to the stability of an
orderly
society. Indeed, respect for the Judiciary and its processes
alone ensures that peaceful, regulated and institutionalised
mechanisms to resolve disputes prevail as the bulwark against
vigilantism, chaos and anarchy. If, with impunity, litigants
are allowed to decide which orders they wish to obey and those they
wish to ignore, our Constitution is not worth the paper upon
which it
is written.”
[35]
# [48]Accordingly,
I have found the first to third respondents to be in wilful,
deliberate andmala
fidecontempt of the Court order issued by Vorster AJ and I granted to the
applicant the order sought in its draft Court order.[36]For the reasons set out above, I have granted a punitive costs order
against the respondents in favour of the applicant.[37]
[48]
Accordingly,
I have found the first to third respondents to be in wilful,
deliberate and
mala
fide
contempt of the Court order issued by Vorster AJ and I granted to the
applicant the order sought in its draft Court order.
[36]
For the reasons set out above, I have granted a punitive costs order
against the respondents in favour of the applicant.
[37]
M VAN NIEUWENHUIZEN
Acting Judge of the
High Court of South Africa
Gauteng
Division, Johannesburg
HEARD ON:
18 May 2023
DATE OF JUDGMENT:
26 June 2023
FOR APPLICANT:
Advocate N Lombard
E-mail:
advnicole@mweb.co.za
INSTRUCTED BY:
Mervyn Smith Attorneys
E-mail:
ethan@mjsjhb.co.za
FOR RESPONDENT:
Advocate E Sithole
E-mail:
INSTRUCTED BY:
Madhlopa Thenga Inc.
E-mail:
lucky@madhlopathenga.co.za
##
[1]
CaseLines, 05-21 to 05-24; Notice of Motion, 034-1 to
034-5
[2]
And which draft Court order also appears on CaseLines, 052-1
to 052-4
[3]
Signed Court order dated 18 May 2023, CaseLines 055-1 to
055-4
[4]
Signed by the respondents’ attorneys on the 31
st
of May 2023, e-mailed to my Registrar and uploaded to CaseLines on
the same date, CaseLines 058-1
[5]
CaseLines 059-1 to 059-11
[6]
Para 1.1, CaseLines 059-2
[7]
Para 2, CaseLines 059-2
[8]
Para 4, CaseLines 059-3
[9]
CaseLines 047-1 to 047-3
[10]
CaseLines, 037-1 to 037-5
[11]
CaseLines, 042-1 to 042-2
[12]
CaseLines, 047-1 to 047-3
[13]
CaseLines, 049-21 to 049-27
[14]
CaseLines, 031-1 to 031-4
[15]
CaseLines, 035-8 to 035-22; 036-10 to 036-13
[16]
CaseLines, 035-23
[17]
CaseLines, 035-8 to 035-31 and 036-14 to 036-61 (for the
correspondence itself)
[18]
CaseLines, 035-24 to 035-26, paras 12-20 and 035-31 to 035-32, paras
69-74
[19]
CaseLines, 035-4, paragraph 9
[20]
CaseLines, 035-6, paragraph 20
[21]
CaseLines, 053-1 to 053-3 and proof of service of purported notice
of compliance (18 May 2023), CaseLines, 053-4 to 053-7
[22]
Applicant’s denial of compliance (e-mail dated 18 May 2023),
CaseLines 054-1
[23]
(CCT52/21) [21] ZACC 28;
2021 (11) BCLR 1263
(CC) (dated 17
September 2021)
[24]
Referring to the document headed “
Billing
Account Adjustment”
,
CaseLines, 053-3
[25]
Act 108 of 1996
[26]
CaseLines, 053-3
[27]
CaseLines, 035-8 to 035-31 and CaseLines, 036-14 to 036-61 (for the
correspondence itself)
[28]
Annexure “EJS19”, CaseLines 036-29
[29]
As is apparent from the respondents’ non-compliance with the
orders of Vorster AJ and Wanless AJ
[30]
A judgment of the High Court, Mpumalanga Division, Middleburg Local
Seat under case number 959/2022 dated the 22
nd
of March 2022.
[31]
Order may be found at page 14 of the Judgment.
[32]
Onus in respect of the committal order
Tasima
(Pty) Ltd v Department of Transport
[2016]
1 All SA 465
(SCA). Also see
Pheko
v Ekurhuleni City
2015
(SA) 600 (CC);
Uncedo
Taxi Service Association v Maninjwa
1998
(3) SA 417
(E)
[33]
Case number 21609/2021 dated the 28
th
of October 2021
[34]
See also
Secretary
of the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector including
Organs
of State v Zuma and Others
2021 (5) SA 327 (CC)
[35]
Also see paragraph 71 of Opperman J’s judgment;
Kenton-on-Sea
Ratepayers Association and others v Ndlambe Local Municipality and
others
2017 (2) SA 86
(ECG) where prior to the contempt hearing the breach
had been purged and a warning had been given;
AG
v DG
,
2017 (2) SA 409
(GJ) where repeated breach of maintenance court
order and frustrating the process of execution of such order
including the hiding
of assets was met with an order to pay arrear
maintenance and a suspended sentence of 5 days imprisonment if
maintenance was
not paid;
Readam
SA (Pty) Ltd v BSB International Link CC and Others
2017 (5) SA 184
(GJ) where there was non-compliance of a court order
over an extended period and the contemnor was sentenced to 30 days
imprisonment
in the event of non-compliance with the court order
which was suspended;
Laubscher
v Laubscher
2004
(4) SA 350
(T), interim custody order was breached and 30 days
imprisonment was imposed suspended for 1 year;
Victoria
Park Ratepayers Association v Greyvenouw CC
[2004] ALL SA 3
623 (SE) for ongoing contempt a fine of R10 000
alternatively 3 months imprisonment suspended was imposed.
[36]
See paragraph 2 hereinabove and uploaded to CaseLines, 052. My
signed Court order may be found at CaseLines, 055 dated
18 May 2023
[37]
Ms Lombard referred me to the matter of
Public
Protector v South African Reserve Bank
[2019]
ZACC 29
and
Limpopo
Legal Solutions v Eskom Holdings SOC Ltd
2017
(12) BCLR 1497
(CC) at paragraphs 35 and 37
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