Case Law[2023] ZAGPJHC 1178South Africa
K2012190864 (Pty) Limited v City of Johannesburg Metropolitan Municipality (8538/2022) [2023] ZAGPJHC 1178 (26 September 2023)
Headnotes
Summary:
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## K2012190864 (Pty) Limited v City of Johannesburg Metropolitan Municipality (8538/2022) [2023] ZAGPJHC 1178 (26 September 2023)
K2012190864 (Pty) Limited v City of Johannesburg Metropolitan Municipality (8538/2022) [2023] ZAGPJHC 1178 (26 September 2023)
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sino date 26 September 2023
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IN
THE HIGH COURT OF SOUTH GAUTENG
GAUTENG DIVISION,
JOHANNESBURG
CASE
NO
:
8538/2022
In the matter between:
K2012190864 (PTY)
LIMITED
(Registration No.
2012/190864/07)
Applicant
And
THE
CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY
Respondent
Coram:
Ternent, AJ
Heard
on
: 22 May 2023
Delivered:
26 September 2023
Summary:
JUDGMENT
# TERNENT, AJ:
TERNENT, AJ
:
INTRODUCTION
# [1] This is a matter in
which the applicant is at loggerheads with the respondent over its
billing of municipal services which commenced
during February 2017
and remains unresolved to date.
[1] This is a matter in
which the applicant is at loggerheads with the respondent over its
billing of municipal services which commenced
during February 2017
and remains unresolved to date.
# [2] It was submitted to
me it is glaringly apparent, from the monthly tax invoices issued by
the respondent, that its billing system
is shambolic, and the levels
of frustration experienced by the sole director of the applicant,
Jacobus Johannes Stols, in attempting
to resolve the impasse, has
come to nought.
[2] It was submitted to
me it is glaringly apparent, from the monthly tax invoices issued by
the respondent, that its billing system
is shambolic, and the levels
of frustration experienced by the sole director of the applicant,
Jacobus Johannes Stols, in attempting
to resolve the impasse, has
come to nought.
# [3] As a consequence, the
applicant sought an interim interdict against the respondent
preventing it from terminating the electricity
and water supply to
the applicant’s premises which are situate at Erf [...], 32
Durban Street, City and Suburban. This, until
such time as its
municipal account number 553745968 for the period 1 May 2017 to the
date of this order had been rectified by:
[3] As a consequence, the
applicant sought an interim interdict against the respondent
preventing it from terminating the electricity
and water supply to
the applicant’s premises which are situate at Erf [...], 32
Durban Street, City and Suburban. This, until
such time as its
municipal account number 553745968 for the period 1 May 2017 to the
date of this order had been rectified by:
## 3.1 Reinstating the
instalment plan that came into effect during 2016. In this
regard, the applicant moved for an amendment
on the basis that this
was a typographical error and should be 2017;
3.1 Reinstating the
instalment plan that came into effect during 2016. In this
regard, the applicant moved for an amendment
on the basis that this
was a typographical error and should be 2017;
## 3.2 Not adding the
outstanding amount of the instalment plan to the monthly balance
carried over;
3.2 Not adding the
outstanding amount of the instalment plan to the monthly balance
carried over;
## 3.3 Reflecting only the
actual meter readings for the consumption of electricity and water;
3.3 Reflecting only the
actual meter readings for the consumption of electricity and water;
## 3.4 In respect of the
faulty electricity meter readings during the period May 2018 to March
2019, charging for the average electricity
usage during the twelve
months prior May 2018 and the twelve months subsequent March 2019;
3.4 In respect of the
faulty electricity meter readings during the period May 2018 to March
2019, charging for the average electricity
usage during the twelve
months prior May 2018 and the twelve months subsequent March 2019;
## 3.5 Reflecting all actual
payments made by the applicant.
3.5 Reflecting all actual
payments made by the applicant.
# [4] The further relief
was to the effect that once this had been done the respondent would
debate the rectified account with the
applicant within twenty days of
the account having been rectified and rendered by the respondent to
the applicant. Furthermore,
on performing the statement and
debatement, whichever party was then indebted to the other would pay
that party so much as may
be found to be owing. As anticipated,
a costs order was sought against the respondent on an attorney client
scale.
[4] The further relief
was to the effect that once this had been done the respondent would
debate the rectified account with the
applicant within twenty days of
the account having been rectified and rendered by the respondent to
the applicant. Furthermore,
on performing the statement and
debatement, whichever party was then indebted to the other would pay
that party so much as may
be found to be owing. As anticipated,
a costs order was sought against the respondent on an attorney client
scale.
# [5] Prior to dealing with
the merits of the application, twoin liminepoints were
raised by the respondent. The first of these pertain to the identity
of the applicant. In this regard,
the respondent contended that
the applicant was not its customer and that it had not concluded any
consumer agreement with the
applicant as designated. As such,
it was contended that the applicant had nolocus standito
institute the action as it had no nexus to the respondent.
Furthermore, it was submitted that in terms of the Local Government
Municipal Systems Act No. 32 of 2003: City of Johannesburg
Metropolitan Municipality Credit Control and Debt Collection by-laws
(“the credit control by-laws”):
[5] Prior to dealing with
the merits of the application, two
in limine
points were
raised by the respondent. The first of these pertain to the identity
of the applicant. In this regard,
the respondent contended that
the applicant was not its customer and that it had not concluded any
consumer agreement with the
applicant as designated. As such,
it was contended that the applicant had no
locus standi
to
institute the action as it had no nexus to the respondent.
Furthermore, it was submitted that in terms of the Local Government
Municipal Systems Act No. 32 of 2003: City of Johannesburg
Metropolitan Municipality Credit Control and Debt Collection by-laws
(“
the credit control by-laws”
):
“
3(1)
No municipal service may be provided to any applicant, unless and
until –
(a)
application for the service has been made in writing on a form
substantially similar to the one prescribed;
(b)
any information and documentation required by the Council has been
furnished;
(2)
A service agreement has been entered into between the customer and
the Council.”
# [6] The trite submission
was that the applicant is required to make out its case, in its
founding affidavit. To the extent that
confusion reigns over the
identity of the applicant and itslocus standi, the
application falls to be dismissed,alternativelystruck off
the roll. The respondent says it does not have a consumer agreement
with the applicant and therefore no contractual
nexus to it.
[6] The trite submission
was that the applicant is required to make out its case, in its
founding affidavit. To the extent that
confusion reigns over the
identity of the applicant and its
locus standi
, the
application falls to be dismissed,
alternatively
struck off
the roll. The respondent says it does not have a consumer agreement
with the applicant and therefore no contractual
nexus to it.
# [7]Stols,
who deposed to the founding affidavit,[1]affirmed that the applicant, as cited in the founding affidavit, was
registered on 23 October 2012. The reports reflect that its
original
directors comprised Warren Friedland, Alon Kirkel, Oren Kirkel, David
Papert and Stols. They were appointed on 20 February
2014.
[7]
Stols,
who deposed to the founding affidavit,
[1]
affirmed that the applicant, as cited in the founding affidavit, was
registered on 23 October 2012. The reports reflect that its
original
directors comprised Warren Friedland, Alon Kirkel, Oren Kirkel, David
Papert and Stols. They were appointed on 20 February
2014.
# [8]The
instalment plan history lists[2]furnished by the respondent reflect that the applicant allegedly fell
into arrears with its electricity payments during November
2016. The
first instalment plan[3]allegedly concluded with the respondent, it says, reflects that an
alleged amount was due of R497 187,10. It appears that
in terms
of this alleged plan that a deposit of R70 000,00 would be paid
on 21 November 2016 and a further thirty-six monthly
instalments of
R12 205,34 would be paid over the period 21 November 2016 to 21
October 2019 to settle the debt.
[8]
The
instalment plan history lists
[2]
furnished by the respondent reflect that the applicant allegedly fell
into arrears with its electricity payments during November
2016. The
first instalment plan
[3]
allegedly concluded with the respondent, it says, reflects that an
alleged amount was due of R497 187,10. It appears that
in terms
of this alleged plan that a deposit of R70 000,00 would be paid
on 21 November 2016 and a further thirty-six monthly
instalments of
R12 205,34 would be paid over the period 21 November 2016 to 21
October 2019 to settle the debt.
# [9]On
14 November 2016, Stols representing Seabatt Trading (Pty) Limited
concluded a sale of shares agreement,[4]in terms whereof Seabatt purchased 20% of the issued share capital in
the applicant for a sum of R1 000 000,00, paid
on 15
November 2016. The agreement was concluded between Kirkel,
Papert, a Milton Lutrin, I&TK Properties (Pty) Limited,
Seabatt
Trading (Pty) Limited and the applicant. In accordance with the
agreement, Friedland, the Kirkels and Papert were
required to resign
as directors. This appears to have been complied with as the WinDeed
documents reflect their resignation on
11 November 2016. As
such, Stols remained as the only director.
[9]
On
14 November 2016, Stols representing Seabatt Trading (Pty) Limited
concluded a sale of shares agreement,
[4]
in terms whereof Seabatt purchased 20% of the issued share capital in
the applicant for a sum of R1 000 000,00, paid
on 15
November 2016. The agreement was concluded between Kirkel,
Papert, a Milton Lutrin, I&TK Properties (Pty) Limited,
Seabatt
Trading (Pty) Limited and the applicant. In accordance with the
agreement, Friedland, the Kirkels and Papert were
required to resign
as directors. This appears to have been complied with as the WinDeed
documents reflect their resignation on
11 November 2016. As
such, Stols remained as the only director.
# [10] The confusion
as to the identity of the applicant arises from documents which
emanate from the respondent. The respondent’s
tax invoices, and
the consumer agreement penned by the respondent reflect an entity
“South Africa (Pty) Limited” and not the applicant
as cited. The consumer agreement is also concluded with “South
Africa (Pty) Limited”.
[10] The confusion
as to the identity of the applicant arises from documents which
emanate from the respondent. The respondent’s
tax invoices, and
the consumer agreement penned by the respondent reflect an entity
“
South Africa (Pty) Limited
” and not the applicant
as cited. The consumer agreement is also concluded with “
South
Africa (Pty) Limited
”.
# [11] Stols says
that the municipal services rendered by the respondent are rendered
to the properties owned by the applicant.
These properties are Erf
[...], held under Title Deed No. 2741015 and, situate at 32 Durban
Street, City and Suburban and the adjoining
properties and buildings
stretching from 30 Durban Street through to 11 Meikle Street, City
and Suburban.
[11] Stols says
that the municipal services rendered by the respondent are rendered
to the properties owned by the applicant.
These properties are Erf
[...], held under Title Deed No. 2741015 and, situate at 32 Durban
Street, City and Suburban and the adjoining
properties and buildings
stretching from 30 Durban Street through to 11 Meikle Street, City
and Suburban.
# [12] The applicant
identifies itself as the respondent’s customer, albeit
misdescribed in its tax invoices and consumer
agreement.
[12] The applicant
identifies itself as the respondent’s customer, albeit
misdescribed in its tax invoices and consumer
agreement.
# [13] Stols, in the
replying affidavit, says that the trading name of the applicant is
correct albeit that in the Deed of Transfer,
in relation to the
properties and, the Deed of Sale of shares, the applicant is referred
to as “2012/190864/07 South Africa (Pty) Limited
(2012190864) and 2012/190864/07 South Africa (Proprietary) Limited
(Registration No. 2012/190864/07).”He affirms that
the reference to South Africa on the respondent’s tax invoices
corresponds therewith and makes it clear
that the consumer account is
that of the applicant and that it has the requisitelocus standito bring the application.
[13] Stols, in the
replying affidavit, says that the trading name of the applicant is
correct albeit that in the Deed of Transfer,
in relation to the
properties and, the Deed of Sale of shares, the applicant is referred
to as “
2012/190864/07 South Africa (Pty) Limited
(2012190864) and 2012/190864/07 South Africa (Proprietary) Limited
(Registration No. 2012/190864/07).”
He affirms that
the reference to South Africa on the respondent’s tax invoices
corresponds therewith and makes it clear
that the consumer account is
that of the applicant and that it has the requisite
locus standi
to bring the application.
# [14] The Court
accepts that the municipal accounts have misdescribed the applicant.
How this misdescription arose is
unclear to the Court but it is
reasonably probable that as the company’s designated name is
its registration number,
when opening the consumer account, the name
“South Africa” was transposed with the
registration number and the resulting confusion ensued.
[14] The Court
accepts that the municipal accounts have misdescribed the applicant.
How this misdescription arose is
unclear to the Court but it is
reasonably probable that as the company’s designated name is
its registration number,
when opening the consumer account, the name
“
South Africa
” was transposed with the
registration number and the resulting confusion ensued.
# [15]Does
this confusion in the face of the positive averments that the
municipal account is that of the applicant (and in respect of
which
the applicant is making monthly payments) sustain thein
liminepoint?
The common law reveals that the description of a party to a suit does
not immutably determine the nature and identity
of the party.
The law reports are replete with instances where amendments are
brought to correctly reflect the citation of
a party be it a
plaintiff or a defendant. The incorrect description is rectified by
amendment, in the absence of prejudice to the
other parties
involved.[5]
[15]
Does
this confusion in the face of the positive averments that the
municipal account is that of the applicant (and in respect of
which
the applicant is making monthly payments) sustain the
in
limine
point?
The common law reveals that the description of a party to a suit does
not immutably determine the nature and identity
of the party.
The law reports are replete with instances where amendments are
brought to correctly reflect the citation of
a party be it a
plaintiff or a defendant. The incorrect description is rectified by
amendment, in the absence of prejudice to the
other parties
involved.
[5]
# [16] As set out in
these cases, a misdescription does not render a summons void or in
this instance, an application invalid.
There is no suggestion,
that the applicant, as cited, does not exist or that its name is
incorrect. Rather, the documents
which emanate from the
respondent have misdescribed the applicant.
[16] As set out in
these cases, a misdescription does not render a summons void or in
this instance, an application invalid.
There is no suggestion,
that the applicant, as cited, does not exist or that its name is
incorrect. Rather, the documents
which emanate from the
respondent have misdescribed the applicant.
# [17] The absence of
prejudice to the respondent is clear. The applicant says that
the account is its account and that
it is liable for the municipal
services rendered and will pay whatever is owing once a statement and
debatement of account has
been completed.
[17] The absence of
prejudice to the respondent is clear. The applicant says that
the account is its account and that
it is liable for the municipal
services rendered and will pay whatever is owing once a statement and
debatement of account has
been completed.
# [18] As set out in
theFour Tower Investmentscase:
[18] As set out in
the
Four Tower Investments
case:
“
[15]
The function of a court is, of course, to resolve disputes between
litigating parties, and justice can only be done if the
real issues
are defined in the pleadings and ventilated in court. For this
reason it is by now well-established that an application
for
amendment will always be allowed unless it is made mala fide or would
cause prejudice to the other party which cannot be compensated
for by
an order for costs or by some other suitable order such as a
postponement.”
# [19] Here, no
application for an amendment is necessary, and the respondent need
only rectify its consumer list. I find that
here is no merit in the
firstin liminepoint, and it is dismissed.
[19] Here, no
application for an amendment is necessary, and the respondent need
only rectify its consumer list. I find that
here is no merit in the
first
in limine
point, and it is dismissed.
# [20] Before
dealing with the secondin liminepoint, I was advised
by counsel that the supplementary affidavit which had been delivered
by the applicant was no longer in issue
and the delay in the delivery
of the answering affidavit, contrary to the Court order granted by
Crutchfield J, was also no longer
an issue before this Court.
As such, the Court could take judicial cognisance of the
supplementary affidavit and the answering
affidavit.
[20] Before
dealing with the second
in limine
point, I was advised
by counsel that the supplementary affidavit which had been delivered
by the applicant was no longer in issue
and the delay in the delivery
of the answering affidavit, contrary to the Court order granted by
Crutchfield J, was also no longer
an issue before this Court.
As such, the Court could take judicial cognisance of the
supplementary affidavit and the answering
affidavit.
# [21] The secondin
liminepoint involves the merits of the application. As appears
from the supplementary affidavit, the respondent disconnected the
supply
of electricity and water to the applicant’s premises on
20 and 21 July 2022 respectively. This disconnection of services
occurred subsequent the institution of this application and in the
face of a series of termination notices. I was informed
by the
applicant’s counsel that the water supply to the premises had
been reconnected but that the electricity supply
remained
disconnected. The application came before me on 22 May
2023 at which time some ten months had elapsed since
the termination
of the electricity supply. It is in this context, that the respondent
contends that the order for an interim interdict
is moot.
[21] The second
in
limine
point involves the merits of the application. As appears
from the supplementary affidavit, the respondent disconnected the
supply
of electricity and water to the applicant’s premises on
20 and 21 July 2022 respectively. This disconnection of services
occurred subsequent the institution of this application and in the
face of a series of termination notices. I was informed
by the
applicant’s counsel that the water supply to the premises had
been reconnected but that the electricity supply
remained
disconnected. The application came before me on 22 May
2023 at which time some ten months had elapsed since
the termination
of the electricity supply. It is in this context, that the respondent
contends that the order for an interim interdict
is moot.
# [22] I debated with
the applicant’s counsel whether the interim interdict was
factually and legally sound in the face
of the lapse of this lengthy
period of time and in circumstances where the applicant had not taken
any steps to urgently seek the
restoration of its electricity
supply. The applicant’s counsel accepted that no such
steps had been taken and, as such,
at the date of the hearing of the
application, it was in effect too late to seek an interdict as the
disconnection had already
taken place. In the face thereof, the
applicant’s counsel did not persist with the interim interdict.
[22] I debated with
the applicant’s counsel whether the interim interdict was
factually and legally sound in the face
of the lapse of this lengthy
period of time and in circumstances where the applicant had not taken
any steps to urgently seek the
restoration of its electricity
supply. The applicant’s counsel accepted that no such
steps had been taken and, as such,
at the date of the hearing of the
application, it was in effect too late to seek an interdict as the
disconnection had already
taken place. In the face thereof, the
applicant’s counsel did not persist with the interim interdict.
# [23] Of course, the
heart of the matter before this Court is whether or not monies are
owed by the applicant to the respondent
and to the extent, that
monies are owed, the respondent would be well within its rights to
have terminated services to the applicant.
Correspondingly, the
termination of the services may well be unlawful, if in fact the
respondent has overcharged the applicant
and no monies are owing to
it.
[23] Of course, the
heart of the matter before this Court is whether or not monies are
owed by the applicant to the respondent
and to the extent, that
monies are owed, the respondent would be well within its rights to
have terminated services to the applicant.
Correspondingly, the
termination of the services may well be unlawful, if in fact the
respondent has overcharged the applicant
and no monies are owing to
it.
# [24] This takes me
to the merits of the application and whether the respondent has
properly accounted to the applicant for
the municipal services
rendered and addressed the queries which have been raised by the
applicant in respect of the charges levied.
This is certainly
not the first motion proceeding against the respondent in relation to
the provision of proper accounts and will
no doubt not be the last.
[24] This takes me
to the merits of the application and whether the respondent has
properly accounted to the applicant for
the municipal services
rendered and addressed the queries which have been raised by the
applicant in respect of the charges levied.
This is certainly
not the first motion proceeding against the respondent in relation to
the provision of proper accounts and will
no doubt not be the last.
# [25] The applicant
annexed to its founding affidavits a number of invoices to
demonstrate the inaccuracy of the respondent’s
billing. These
invoices are for the following periods:
[25] The applicant
annexed to its founding affidavits a number of invoices to
demonstrate the inaccuracy of the respondent’s
billing. These
invoices are for the following periods:
## 25.1 From April 2017 to
November 2017 (there was no invoice for October 2017, the applicant
contending that no invoice had been
issued);
25.1 From April 2017 to
November 2017 (there was no invoice for October 2017, the applicant
contending that no invoice had been
issued);
## 25.2 March 2018 to
December 2018;
25.2 March 2018 to
December 2018;
## 25.3 January 2019 to
March 2019.
25.3 January 2019 to
March 2019.
# [26] The
respondent, in an effort to substantiate its counter-application,
provided only four invoices for the periods August,
December 2021,
May 2022 and August 2022.
[26] The
respondent, in an effort to substantiate its counter-application,
provided only four invoices for the periods August,
December 2021,
May 2022 and August 2022.
# [27] During
argument, the respondent’s counsel informed me that the
applicant was not pursuing its counter-application
and that the Court
should make no order as to costs pursuant to the withdrawal of this
application. I will address the issue
of the costs of the
counter-application later in this judgment.
[27] During
argument, the respondent’s counsel informed me that the
applicant was not pursuing its counter-application
and that the Court
should make no order as to costs pursuant to the withdrawal of this
application. I will address the issue
of the costs of the
counter-application later in this judgment.
# [28] In essence,
the applicant’s complaints relate to historical billing. If one
considers the aforesaid invoices what
is glaringly apparent
therefrom, says the applicant, is that the respondent:
[28] In essence,
the applicant’s complaints relate to historical billing. If one
considers the aforesaid invoices what
is glaringly apparent
therefrom, says the applicant, is that the respondent:
## 28.1Unilaterally
and having agreed an instalment plan concluded in 2017[6]terminated the instalment plan with good reason and in the face of
payment compliance by the applicant;
28.1
Unilaterally
and having agreed an instalment plan concluded in 2017
[6]
terminated the instalment plan with good reason and in the face of
payment compliance by the applicant;
## 28.2 Then proceeded to
add the total instalment plan balance then due to the current monthly
amounts due;
28.2 Then proceeded to
add the total instalment plan balance then due to the current monthly
amounts due;
## 28.3Continued
to unilaterally impose instalment plans in quick succession, namely
on 14 June 2017[7]and again on
28 July 2017[8]and again on 9
February 2018[9];
28.3
Continued
to unilaterally impose instalment plans in quick succession, namely
on 14 June 2017
[7]
and again on
28 July 2017
[8]
and again on 9
February 2018
[9]
;
## 28.4Basic
arithmetical errors in calculating monthly balances due[10];
28.4
Basic
arithmetical errors in calculating monthly balances due
[10]
;
## 28.5In
the light of the deactivation and reactivation of new instalment
plans then charges excessive interest[11]where interest of R4 060,00 is now levied on the deactivated
balance from the prior instalment plan which is now added to
the
total due;
28.5
In
the light of the deactivation and reactivation of new instalment
plans then charges excessive interest
[11]
where interest of R4 060,00 is now levied on the deactivated
balance from the prior instalment plan which is now added to
the
total due;
## 28.6Received
double statements in certain months which reflected different closing
balances[12]. March 2018
statement carried over balance of R513 318,80 which did not
accord with the closing balance of R662 991,62
for February
2018[13]. Statement dated 15
March 2018 where the statement starts with a zero balance appear to
reflect a reversal of charges of R1 229 635,65
and a
re-debiting charges of R1 483 875,91 leaving a balance of
R469 230,31. Statement dated 3 May 2018[14]which has a closing balance of R489 557,41 and statement dated
17 May 2018[15]which
commences with a zero balance and after credits given and charges
debited has a balance of R485 023,40;
28.6
Received
double statements in certain months which reflected different closing
balances
[12]
. March 2018
statement carried over balance of R513 318,80 which did not
accord with the closing balance of R662 991,62
for February
2018
[13]
. Statement dated 15
March 2018 where the statement starts with a zero balance appear to
reflect a reversal of charges of R1 229 635,65
and a
re-debiting charges of R1 483 875,91 leaving a balance of
R469 230,31. Statement dated 3 May 2018
[14]
which has a closing balance of R489 557,41 and statement dated
17 May 2018
[15]
which
commences with a zero balance and after credits given and charges
debited has a balance of R485 023,40;
## 28.7In
the face of the applicant’s faulty electricity meter levied
electricity charges wholly unrelated to the applicant’s
use of
electricity during the period May 2018 to March 2019 and which have
not been rectified[16];
28.7
In
the face of the applicant’s faulty electricity meter levied
electricity charges wholly unrelated to the applicant’s
use of
electricity during the period May 2018 to March 2019 and which have
not been rectified
[16]
;
## 28.8Has
omitted to reflect all of the payments made by the applicant to it in
payment of services rendered[17].
28.8
Has
omitted to reflect all of the payments made by the applicant to it in
payment of services rendered
[17]
.
# [29] It is in these
circumstances that the applicant calls for a rectification of the
account.
[29] It is in these
circumstances that the applicant calls for a rectification of the
account.
# [30]To
the extent that it was submitted by the respondent’s counsel
that there is no valid dispute and no case has been made out
in the
founding affidavit, this submission is wholly unsupported by the
undisputed facts in this matter. A consideration of the
answering
affidavit, which in the main consists of bare denials and conclusions
that the accounts as submitted are accurate without
so much as
engaging with the inconsistencies which are spelt out in great detail
by Stols establishes, under thePalscon
Evans rule[18],
that there is nobona
fidedispute
of fact, and I can reject the respondent’s version.
[30]
To
the extent that it was submitted by the respondent’s counsel
that there is no valid dispute and no case has been made out
in the
founding affidavit, this submission is wholly unsupported by the
undisputed facts in this matter. A consideration of the
answering
affidavit, which in the main consists of bare denials and conclusions
that the accounts as submitted are accurate without
so much as
engaging with the inconsistencies which are spelt out in great detail
by Stols establishes, under the
Palscon
Evans rule
[18]
,
that there is no
bona
fide
dispute
of fact, and I can reject the respondent’s version.
# [31] As also
referred to inNDPP v Zuma2009 (2) SA 277 SC, para [26]:
[31] As also
referred to in
NDPP v Zuma
2009 (2) SA 277 SC, para [26]:
# “[26]
Motion proceedings, unless concerned with interim relief, are all
about the resolution of legal issues based on common cause
facts,
unless the circumstances are special they cannot be used to resolve
factual issues because they are not designed to determine
probabilities. It is well established under the Plascon-Evans rule
that where in motion proceedings disputes the fact arise on
the
affidavits, a final order can be granted only if the facts averred in
the applicant’s (Mr Zuma’s affidavits) which
have been
admitted by the respondent (the NDPP), together with the facts
alleged by the latter, justify such order. It may be different
if the
respondent’s version consists of bold or uncreditworthy
denials, raises fictitious disputes of fact, is palpably implausible,
farfetched or so clearly untenable where the court is justified in
rejecting them merely on the papers.”
“
[26]
Motion proceedings, unless concerned with interim relief, are all
about the resolution of legal issues based on common cause
facts,
unless the circumstances are special they cannot be used to resolve
factual issues because they are not designed to determine
probabilities. It is well established under the Plascon-Evans rule
that where in motion proceedings disputes the fact arise on
the
affidavits, a final order can be granted only if the facts averred in
the applicant’s (Mr Zuma’s affidavits) which
have been
admitted by the respondent (the NDPP), together with the facts
alleged by the latter, justify such order. It may be different
if the
respondent’s version consists of bold or uncreditworthy
denials, raises fictitious disputes of fact, is palpably implausible,
farfetched or so clearly untenable where the court is justified in
rejecting them merely on the papers.”
# [32] The respondent
does no more than attach a schedule which reflects a list of alleged
installment plans which appear to
have been extracted from its
computer system. It does not explain how these plans were concluded,
with whom they were concluded
and why, if the plans were concluded
and payments were being made by the applicant, it terminated
the plans and then
imposed a new payment plan or how, in
certain instances, the payment plans which were supposedly concluded
were not even reflected
on the invoices raised by the respondent.
[32] The respondent
does no more than attach a schedule which reflects a list of alleged
installment plans which appear to
have been extracted from its
computer system. It does not explain how these plans were concluded,
with whom they were concluded
and why, if the plans were concluded
and payments were being made by the applicant, it terminated
the plans and then
imposed a new payment plan or how, in
certain instances, the payment plans which were supposedly concluded
were not even reflected
on the invoices raised by the respondent.
# [33]The
deponent to the answering affidavit, Mr. Tuwane Ngwana, the
respondent’s legal advisor, does little to set out any defences
to the inconsistencies in the invoices provided to demonstrate the
confusion. Ngwana makes bald and general allegations
that
customers breach payment plans and then run to the respondent to
change and conclude new payment plans. In addition, and in
the same
vein, he says that the invoices reflect that these payment plans were
applied but then not complied with. A payment history[19]which is wholly unhelpful to the Court is referred to. It is not
substantiated and cross-referenced by the invoices which are raised
and simply reflects a list of payments over a period from 13 May 2016
to 25 August 2022 without identifying whether these payments
related
to the installment plans, related to the current billing and why
certain payments made under duress by the applicant and
which are not
disputed on 18 September 2018, in the sum of R435 495,09, to
clear the account and R416 867.64 on 10 November
2018 to restore
the disconnected electricity supply and bring the accounts up to date
are not reflected at all. The respondent
simply levied charges of
R396 070.07 in October 2018 and R572 440.39 in November
2018. Again in December 2018 the
respondent levied charges of
R132 760.07. The applicant says that it became clear that the
respondent was charging double
sometimes triple for the same usage
when the meter was faulty during the period May 2018 to March 2019.
Having dispatched an employee
to investigate the faulty meter on 12
December 2018, the grossly high meter readings persisted through
January to March 2019. The
meter was replaced in April 2019 and the
readings and charges reverted to anticipated average consumption
which the applicant expected
to pay every month. Needless to say, the
applicant’s bill kept escalating and the respondent failed to
address the flawed
account. Instead it chose to threaten the
applicant with disconnection of its electricity supply until payment
in full was received
and ultimately did so. The payment schedule[20]reflects the spike contended for by the applicant and yet the
respondent implausibly brought a counter application and averred
that
the amount was due.
[33]
The
deponent to the answering affidavit, Mr. Tuwane Ngwana, the
respondent’s legal advisor, does little to set out any defences
to the inconsistencies in the invoices provided to demonstrate the
confusion. Ngwana makes bald and general allegations
that
customers breach payment plans and then run to the respondent to
change and conclude new payment plans. In addition, and in
the same
vein, he says that the invoices reflect that these payment plans were
applied but then not complied with. A payment history
[19]
which is wholly unhelpful to the Court is referred to. It is not
substantiated and cross-referenced by the invoices which are raised
and simply reflects a list of payments over a period from 13 May 2016
to 25 August 2022 without identifying whether these payments
related
to the installment plans, related to the current billing and why
certain payments made under duress by the applicant and
which are not
disputed on 18 September 2018, in the sum of R435 495,09, to
clear the account and R416 867.64 on 10 November
2018 to restore
the disconnected electricity supply and bring the accounts up to date
are not reflected at all. The respondent
simply levied charges of
R396 070.07 in October 2018 and R572 440.39 in November
2018. Again in December 2018 the
respondent levied charges of
R132 760.07. The applicant says that it became clear that the
respondent was charging double
sometimes triple for the same usage
when the meter was faulty during the period May 2018 to March 2019.
Having dispatched an employee
to investigate the faulty meter on 12
December 2018, the grossly high meter readings persisted through
January to March 2019. The
meter was replaced in April 2019 and the
readings and charges reverted to anticipated average consumption
which the applicant expected
to pay every month. Needless to say, the
applicant’s bill kept escalating and the respondent failed to
address the flawed
account. Instead it chose to threaten the
applicant with disconnection of its electricity supply until payment
in full was received
and ultimately did so. The payment schedule
[20]
reflects the spike contended for by the applicant and yet the
respondent implausibly brought a counter application and averred
that
the amount was due.
# [34] There are a
number of emails attached to the founding affidavit addressed by
Adele Petzer, a Human Resources and Operations
Manager in the employ
of the applicant. The respondent did not object to these e-mails as
hearsay as no confirmatory affidavit
was provided by the author
thereof. The emails commence on 23 August 2019 and reflect a
persistent attempt to contact the respondent
by telephone, by email,
under reference numbers which were furnished, and by attendances at
the respondent’s offices, all
to no avail. The persons in the
main who feature in these emails, as representatives of the
respondent, are Glenda Skosana and
Andile Bofo.
[34] There are a
number of emails attached to the founding affidavit addressed by
Adele Petzer, a Human Resources and Operations
Manager in the employ
of the applicant. The respondent did not object to these e-mails as
hearsay as no confirmatory affidavit
was provided by the author
thereof. The emails commence on 23 August 2019 and reflect a
persistent attempt to contact the respondent
by telephone, by email,
under reference numbers which were furnished, and by attendances at
the respondent’s offices, all
to no avail. The persons in the
main who feature in these emails, as representatives of the
respondent, are Glenda Skosana and
Andile Bofo.
# [35] Pertinently
though Stols says that he met with a representative of the respondent
at its Jorrison Street offices and
obtained a query sheet which
recorded all of the complaints logged with the respondent.
[35] Pertinently
though Stols says that he met with a representative of the respondent
at its Jorrison Street offices and
obtained a query sheet which
recorded all of the complaints logged with the respondent.
# [36] To no avail,
however, because as at 14 November 2019 the applicant’s account
had escalated to R957 682.07
and once again the respondent
threatened to disconnect the applicant’s electricity supply.
Stols logged a call and was provided
with a valid reference number.
Stols followed up on 13 December 2019 and was advised that the query
had been closed. As already
mentioned, the respondent on numerous
occasions, namely, 7 November 2018, 25 June 2019, 3 March 2020, 12
November 2021 and 30 May
2021 attempted to disconnect the applicant’s
electricity supply. Stols persisted and on six occasions between
March and July
2021 tried to find resolution. As anticipated a letter
of demand was received from Nozuko attorneys on 7 August 2020.
Stols
again tried to deal with the respondent, on 18 August 2020, but
received no reply. Petzer then approached the collection attorneys
telephonically and by e-mail on 24 December 2020. They could not
assist and directed Stols to engage with the respondent’s
Regional Director. Armed with all of the reference numbers issued to
the applicant and, on 12 January 2021, Stols endeavoured to
do so
with no success. Eventually the respondent succeeded in disconnecting
the electricity supply on 20 July 2022. In addition
the water
supply was disconnected on 21 July 2022 but this has been
reconnected. In the result the applicant seeks costs
on the
attorney-client scale.
[36] To no avail,
however, because as at 14 November 2019 the applicant’s account
had escalated to R957 682.07
and once again the respondent
threatened to disconnect the applicant’s electricity supply.
Stols logged a call and was provided
with a valid reference number.
Stols followed up on 13 December 2019 and was advised that the query
had been closed. As already
mentioned, the respondent on numerous
occasions, namely, 7 November 2018, 25 June 2019, 3 March 2020, 12
November 2021 and 30 May
2021 attempted to disconnect the applicant’s
electricity supply. Stols persisted and on six occasions between
March and July
2021 tried to find resolution. As anticipated a letter
of demand was received from Nozuko attorneys on 7 August 2020.
Stols
again tried to deal with the respondent, on 18 August 2020, but
received no reply. Petzer then approached the collection attorneys
telephonically and by e-mail on 24 December 2020. They could not
assist and directed Stols to engage with the respondent’s
Regional Director. Armed with all of the reference numbers issued to
the applicant and, on 12 January 2021, Stols endeavoured to
do so
with no success. Eventually the respondent succeeded in disconnecting
the electricity supply on 20 July 2022. In addition
the water
supply was disconnected on 21 July 2022 but this has been
reconnected. In the result the applicant seeks costs
on the
attorney-client scale.
# [37] The
respondent’s counsel submitted that there is no proof that the
applicant is paying for reasonable consumption
of services and the
last payment was received on 25 August 2022. Of course there is no
electricity supply to the property as it
was disconnected on 21 July
2022 and there is no updated evidence placed before me that the water
consumed on the property is being
paid for either post August 2022,
when the replying affidavit was delivered. However the applicant did
annex invoices, in reply,
to show that it was indeed paying what
appears to be reasonable monthly charges levied by the respondent so
that in in July 2021
it paid R27 130,43, in November 2021
it paid R41 735,36, in April 2022 it paid R26 293,36, and
in July 2022
it paid R27 643,53. In the invoices furnished by
the respondent a payment of R 31 965,95 is reflected in
December
2021, a payment of R33 742,34 and in August 2021 a
payment of R40 321,59. In addition, the respondent’s
own
payment schedule for the period 13 April 2016 to 25 August
2022 reflects that save for October 2017, July 2018,
April 2018, April 2020, September 2020, and April 2021 monthly
payments are recorded as having been made by the applicant. Payments
are also reflected on the invoices attached to the founding
affidavit. As such on the evidence placed before me there is no merit
in this defence. In fact the applicant, in reply, asserts that it is
the historical inflated charges in excess of R 900 000,00
with which it takes issue and for which it requires a debatement.
[37] The
respondent’s counsel submitted that there is no proof that the
applicant is paying for reasonable consumption
of services and the
last payment was received on 25 August 2022. Of course there is no
electricity supply to the property as it
was disconnected on 21 July
2022 and there is no updated evidence placed before me that the water
consumed on the property is being
paid for either post August 2022,
when the replying affidavit was delivered. However the applicant did
annex invoices, in reply,
to show that it was indeed paying what
appears to be reasonable monthly charges levied by the respondent so
that in in July 2021
it paid R27 130,43, in November 2021
it paid R41 735,36, in April 2022 it paid R26 293,36, and
in July 2022
it paid R27 643,53. In the invoices furnished by
the respondent a payment of R 31 965,95 is reflected in
December
2021, a payment of R33 742,34 and in August 2021 a
payment of R40 321,59. In addition, the respondent’s
own
payment schedule for the period 13 April 2016 to 25 August
2022 reflects that save for October 2017, July 2018,
April 2018, April 2020, September 2020, and April 2021 monthly
payments are recorded as having been made by the applicant. Payments
are also reflected on the invoices attached to the founding
affidavit. As such on the evidence placed before me there is no merit
in this defence. In fact the applicant, in reply, asserts that it is
the historical inflated charges in excess of R 900 000,00
with which it takes issue and for which it requires a debatement.
# [38] It is apparent
to me that the applicant has established that the respondent’s
invoices are incorrect and that excessive
charges have been levied in
circumstances where it is common cause that the electricity meter was
faulty. Yet the respondent, brought
an ill-fated counter- application
seeking payment of arrears of R972 307,79 which in my view was
wisely withdrawn by the respondent’s
counsel.
[38] It is apparent
to me that the applicant has established that the respondent’s
invoices are incorrect and that excessive
charges have been levied in
circumstances where it is common cause that the electricity meter was
faulty. Yet the respondent, brought
an ill-fated counter- application
seeking payment of arrears of R972 307,79 which in my view was
wisely withdrawn by the respondent’s
counsel.
# [39] The dispute is
clear, yet the respondent appears to have unilaterally terminated
instalment plans and cancelled the 2017
plan, at whim, despite
payments being made by the applicant, and then added the amounts to
the current charges levied which then
attract interest and which the
applicant legitimately disputes.
[39] The dispute is
clear, yet the respondent appears to have unilaterally terminated
instalment plans and cancelled the 2017
plan, at whim, despite
payments being made by the applicant, and then added the amounts to
the current charges levied which then
attract interest and which the
applicant legitimately disputes.
# [40] The
respondent’s counsel conceded that a statement and debatement
of account should be ordered but that no order
should be made as to
costs.
[40] The
respondent’s counsel conceded that a statement and debatement
of account should be ordered but that no order
should be made as to
costs.
# [41]I
do not intend to repeat the obligations placed on municipalities in
regard to the provision of municipal services. These obligations
are
comprehensively set out in many matters.[21]Quoting from theAmacasajudgment:
[41]
I
do not intend to repeat the obligations placed on municipalities in
regard to the provision of municipal services. These obligations
are
comprehensively set out in many matters.
[21]
Quoting from the
Amacasa
judgment:
# “[10]
The largest city in South Africa did not seek to convince me that it
is not within its financial and administrative capacity
to render
accurate accounts to ratepayers. The facts of this matter are that
the municipality’s accounts are clearly inaccurate.
I thus do
not address this [in] judgment the degree of accuracy required. I
also accept that there are instances where a municipality
may have to
estimate consumption charges (as opposed to meter charges), and I do
not seek to address what those circumstances are
in this judgment. I
also do not seek to address how close to accurate such estimates of
consumption must be. I need not to
do so as I have illustrated
the summary of the facts that the estimates in this matter bore no
resemblance to actual use.
“
[10]
The largest city in South Africa did not seek to convince me that it
is not within its financial and administrative capacity
to render
accurate accounts to ratepayers. The facts of this matter are that
the municipality’s accounts are clearly inaccurate.
I thus do
not address this [in] judgment the degree of accuracy required. I
also accept that there are instances where a municipality
may have to
estimate consumption charges (as opposed to meter charges), and I do
not seek to address what those circumstances are
in this judgment. I
also do not seek to address how close to accurate such estimates of
consumption must be. I need not to
do so as I have illustrated
the summary of the facts that the estimates in this matter bore no
resemblance to actual use.
# [11] Reverting
to the facts of this matter. In essence, in issue is an accounting
matter and the alleged failure by the municipality
to comply with its
obligations to render accurate accounts. In this matter that failure
impacts on the supply of electricity to
the property, may impact on
the supply of water to the property, and impacts on the applicant’s
ability to pay what is due.
It is no trifling dispute.”
[11] Reverting
to the facts of this matter. In essence, in issue is an accounting
matter and the alleged failure by the municipality
to comply with its
obligations to render accurate accounts. In this matter that failure
impacts on the supply of electricity to
the property, may impact on
the supply of water to the property, and impacts on the applicant’s
ability to pay what is due.
It is no trifling dispute.”
# [42] In this
matter, the deponent to the answering affidavit is also the self-same
Ngwane. As the learned judge set out, without
even accepting that
there is a “heightened duty” on the respondent to
assess the application and address the real issues, the affidavit
delivered here too did nothing to
raise a dispute of fact.
[42] In this
matter, the deponent to the answering affidavit is also the self-same
Ngwane. As the learned judge set out, without
even accepting that
there is a “
heightened duty
” on the respondent to
assess the application and address the real issues, the affidavit
delivered here too did nothing to
raise a dispute of fact.
# [43]As
is also clear, the onus rested on the respondent to provide correct
accounts, which it patently failed to do even conceding that
the
counter-application for payment was not being proceeded with and that
there should be a statement and debatement of account.[22]
[43]
As
is also clear, the onus rested on the respondent to provide correct
accounts, which it patently failed to do even conceding that
the
counter-application for payment was not being proceeded with and that
there should be a statement and debatement of account.
[22]
# THE RELIEF SOUGHT
THE RELIEF SOUGHT
# [44]The
relief which is requested by the applicant includes that the
respondent reinstate the 2017 payment plan and isolate the arrears
agreed to be due from the monthly balance carried over and reflected
on the invoices. This is easy for the respondent because this
is the
way that its payment plans are usually dealt with. The respondent
contends that this relief is impermissible in the face
of abona
fidedispute,
and that it appears that four payment plans were concluded as
reflected in its computerised print out. I was asked to apply
the
principles in theRoom
Hire[23]case. As I understand this case, it does not favour the respondent in
this matter. This respondent cannot content itself with bare
and
unsubstantiated denials in the face of the onus upon it and I am
obliged to accept the applicant’s allegations as correct.
For
the reasons above it appears that the respondent unilaterally
terminated the 2017 payment plan when the applicant was complying
therewith. I am of the view that this relief should be granted. As a
consequence then the arrears should be isolated from the invoice
as
the payment plan permits.
[44]
The
relief which is requested by the applicant includes that the
respondent reinstate the 2017 payment plan and isolate the arrears
agreed to be due from the monthly balance carried over and reflected
on the invoices. This is easy for the respondent because this
is the
way that its payment plans are usually dealt with. The respondent
contends that this relief is impermissible in the face
of a
bona
fide
dispute,
and that it appears that four payment plans were concluded as
reflected in its computerised print out. I was asked to apply
the
principles in the
Room
Hire
[23]
case. As I understand this case, it does not favour the respondent in
this matter. This respondent cannot content itself with bare
and
unsubstantiated denials in the face of the onus upon it and I am
obliged to accept the applicant’s allegations as correct.
For
the reasons above it appears that the respondent unilaterally
terminated the 2017 payment plan when the applicant was complying
therewith. I am of the view that this relief should be granted. As a
consequence then the arrears should be isolated from the invoice
as
the payment plan permits.
# [45] The notice of
motion contained a typographical error as it refers to the 2016
instalment plan and should have referred
to the 2017 instalment plan.
The applicant’s counsel moved for an amendment by the deletion
of “2016” and the substitution with “2017”.
I have no reservations in granting the amendment. It was not
opposed by the respondent. There is no prejudice to
the respondent,
and the amendment is granted.
[45] The notice of
motion contained a typographical error as it refers to the 2016
instalment plan and should have referred
to the 2017 instalment plan.
The applicant’s counsel moved for an amendment by the deletion
of “
2016
” and the substitution with “
2017
”.
I have no reservations in granting the amendment. It was not
opposed by the respondent. There is no prejudice to
the respondent,
and the amendment is granted.
# [46] In so far as
the applicant requests that the actual readings be reflected, I am
aware that the respondent is entitled
in terms of its relevant
by-laws to charge estimated amounts and then reverse the charges once
the actual meter readings are received.
As such, and with the lapse
of time, the applicant must be charged in accordance with the actual
meter readings, which the respondent
must surely have obtained, and
as such I am inclined to grant this relief. It appears that the
respondent in fact has now placed
systems in place for customers to
submit their monthly readings which will alleviate the load on it to
conduct physical readings
of the respective meters.
[46] In so far as
the applicant requests that the actual readings be reflected, I am
aware that the respondent is entitled
in terms of its relevant
by-laws to charge estimated amounts and then reverse the charges once
the actual meter readings are received.
As such, and with the lapse
of time, the applicant must be charged in accordance with the actual
meter readings, which the respondent
must surely have obtained, and
as such I am inclined to grant this relief. It appears that the
respondent in fact has now placed
systems in place for customers to
submit their monthly readings which will alleviate the load on it to
conduct physical readings
of the respective meters.
# [47]In
so far as the applicant seeks to impose that the respondent charge
average readings for the period March 2018 to May 2019, when
it is
common cause, the electricitymeter was faulty the respondent
informed me that there is a formula, which is used but
which the
Court was not provided with, that will apply to the period in which
no readings were achievable due to the faulty meter.
It appears to me
from the by-laws[24]:
[47]
In
so far as the applicant seeks to impose that the respondent charge
average readings for the period March 2018 to May 2019, when
it is
common cause, the electricitymeter was faulty the respondent
informed me that there is a formula, which is used but
which the
Court was not provided with, that will apply to the period in which
no readings were achievable due to the faulty meter.
It appears to me
from the by-laws
[24]
:
# “Section
13
“
Section
13
# (i) When the Council
is satisfied that a meter has ceased to register correctly, the
reading shown thereby shall be disregarded
and the consumer –
(i) When the Council
is satisfied that a meter has ceased to register correctly, the
reading shown thereby shall be disregarded
and the consumer –
# (a)Shall
be charged, in respect of the current meter reading period, the same
amount as the consumer has paid in respect of the corresponding
period in the preceding year subject to the adjustment necessitated
by any alteration to the electrical installation or the charge
determined by the Council; or
(a)
Shall
be charged, in respect of the current meter reading period, the same
amount as the consumer has paid in respect of the corresponding
period in the preceding year subject to the adjustment necessitated
by any alteration to the electrical installation or the charge
determined by the Council; or
# (b)If
the consumer was not in occupation of the premises during the
corresponding period referred to in paragraph (a), shall be charged
on the basis of his consumption during the three months preceding the
last date on which the meter was found to be registering
correctly;
or
(b)
If
the consumer was not in occupation of the premises during the
corresponding period referred to in paragraph (a), shall be charged
on the basis of his consumption during the three months preceding the
last date on which the meter was found to be registering
correctly;
or
# (c)If
the consumer was not in occupation of the premises during the whole
of the period referred to in paragraph (b), shall be charged
on the
basis of his consumption during the three months following the date
from which the meter was again registering correctly.
(c)
If
the consumer was not in occupation of the premises during the whole
of the period referred to in paragraph (b), shall be charged
on the
basis of his consumption during the three months following the date
from which the meter was again registering correctly.
# (ii)If it can
be established that the meter has been registering incorrectly for a
longer period than the meter reading period referred
to in sub clause
(i), the consumer may be charged with the amount determined in
accordance with the said subsection or for a longer
period: Provided
that no amount shall be so charged in respect of a period in excess
of 38 months prior to the date on which the
meter was found to be
registering incorrectly”.
(ii)
If it can
be established that the meter has been registering incorrectly for a
longer period than the meter reading period referred
to in sub clause
(i), the consumer may be charged with the amount determined in
accordance with the said subsection or for a longer
period: Provided
that no amount shall be so charged in respect of a period in excess
of 38 months prior to the date on which the
meter was found to be
registering incorrectly”.
# [48] As such I am
inclined to order relief that the respondent apply the provisions of
section 13 and correct the readings
for that period.
[48] As such I am
inclined to order relief that the respondent apply the provisions of
section 13 and correct the readings
for that period.
# [49] In so far as
relief is sought that all payments made by the applicant are captured
in reduction of any disputed indebtedness
it was conceded that this
is a simple exercise and the applicant itself can furnish proof of
the payments made by it to facilitate
this exercise. This process is
imminently reasonable and in any event the onus always remains on the
applicant to prove payments
made by it.
[49] In so far as
relief is sought that all payments made by the applicant are captured
in reduction of any disputed indebtedness
it was conceded that this
is a simple exercise and the applicant itself can furnish proof of
the payments made by it to facilitate
this exercise. This process is
imminently reasonable and in any event the onus always remains on the
applicant to prove payments
made by it.
# [50] In so far as
the costs are concerned, it is clear that the respondent’s
defence to this application has floundered.
It has put the applicant
to unnecessary time and costs in bringing this application in
circumstances where the applicant has exhausted
all other avenues
open to it to resolve the account which it is common cause is
inaccurate in the face of the faulty electricity
meter. The
respondent abandoned its counterclaim for payment. I am alive to the
fact that the imposition of costs on a punitive
scale is ultimately
funded by taxpayers. Granting costs on an attorney/client scale
remains extraordinary relief. At the end of
the day, the applicant
should not be out of pocket and, accordingly, I am inclined to make
an attorney/client costs order as prayed
for.
[50] In so far as
the costs are concerned, it is clear that the respondent’s
defence to this application has floundered.
It has put the applicant
to unnecessary time and costs in bringing this application in
circumstances where the applicant has exhausted
all other avenues
open to it to resolve the account which it is common cause is
inaccurate in the face of the faulty electricity
meter. The
respondent abandoned its counterclaim for payment. I am alive to the
fact that the imposition of costs on a punitive
scale is ultimately
funded by taxpayers. Granting costs on an attorney/client scale
remains extraordinary relief. At the end of
the day, the applicant
should not be out of pocket and, accordingly, I am inclined to make
an attorney/client costs order as prayed
for.
# [51] I accordingly
make an order in the following terms:
[51] I accordingly
make an order in the following terms:
## 51.1 The respondent shall
within 30 days of the date of this order rectify the applicant’s
municipal account, Account No.:
553745968 (“the account”)
in respect of electricity, water, sanitation and refuse charges for
the period 1 May 2017
to date of this order by:
51.1 The respondent shall
within 30 days of the date of this order rectify the applicant’s
municipal account, Account No.:
553745968 (“the account”)
in respect of electricity, water, sanitation and refuse charges for
the period 1 May 2017
to date of this order by:
### 51.1.1 reinstating the
2017 instalment plan that came into effect during February 2017;
51.1.1 reinstating the
2017 instalment plan that came into effect during February 2017;
### 51.1.2 not adding the
outstanding amount of the instalment plan to the monthly balance
carried over;
51.1.2 not adding the
outstanding amount of the instalment plan to the monthly balance
carried over;
### 51.1.3 reflecting the
actual meter readings for the consumption of electricity and water
save for the period May 2018 to March 2019;
51.1.3 reflecting the
actual meter readings for the consumption of electricity and water
save for the period May 2018 to March 2019;
### 51.1.4 in respect of the
faulty electricity meter readings during the period May 2018 to March
2019, charging for electricity in
accordance with the provisions of
paragraph 13 of the Greater Johannesburg Metropolitan Council
Standardisation of Electricity
By-Laws,Gazette Notice1610 of
1999;
51.1.4 in respect of the
faulty electricity meter readings during the period May 2018 to March
2019, charging for electricity in
accordance with the provisions of
paragraph 13 of the Greater Johannesburg Metropolitan Council
Standardisation of Electricity
By-Laws,
Gazette Notice
1610 of
1999;
### 51.1.5 reflecting all
actual payments made by the applicant and in respect of which the
applicant shall provide proof to the respondent
of the payments so
made.
51.1.5 reflecting all
actual payments made by the applicant and in respect of which the
applicant shall provide proof to the respondent
of the payments so
made.
## 51.2 The respondent shall
debate the rectified account with the applicant within 20 days of the
rectified account having been rendered
by the respondent to the
applicant.
51.2 The respondent shall
debate the rectified account with the applicant within 20 days of the
rectified account having been rendered
by the respondent to the
applicant.
## 51.3 That party which is
found to be indebted to the other shall pay the other party such
amount as may be found to be owing pursuant
to the debatement of the
account within 10 days thereof.
51.3 That party which is
found to be indebted to the other shall pay the other party such
amount as may be found to be owing pursuant
to the debatement of the
account within 10 days thereof.
## 51.4 Costs of the
application are to be paid by the respondent on the attorney/client
scale.
51.4 Costs of the
application are to be paid by the respondent on the attorney/client
scale.
P V TERNENT
Acting Judge of the
High Court of South Africa
Gauteng Division,
Johannesburg
Delivered: This
judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
Parties/their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date for
hand-down is deemed to be on 26 September 2023.
HEARD ON:
22 May 2023
DATE OF
JUDGMENT:
26 September 2023
FOR APPLICANT:
Advocate A J J Du
Plooy
E-mail:
aviedp@gmail.com
Cell: 082 924
9076
INSTRUCTED BY:
A Le Roux Attorneys
E-mail:
alrattorneys@mweb.co.za
Tel: (011) 485 1990
FOR RESPONDENT:
Advocate E Sithole
E-mail:
esithole@law.co.za
Cell: 076 162
9605
INSTRUCTED BY:
John Mulaudzi
Attorneys
E-mail:
john@mulaudziattorneys.co.za
Tel: (011) 339 3682
##
[1]
Two WinDeed reports dated 5 October 2018 and 9 February 2022
respectively
[2]
CaseLines 011-23 to 011-25, Annexures “
CoJ1
”
to “
CoJ5
”
[3]
CaseLines 011-24, Annexure “
CoJ4
”
[4]
CaseLines 004-33 to 004-45, Annexure “
JJ5
”
[5]
See for instance
Four
Tower Investments (Pty) Ltd v Andrea’s Motors
2005 (3) SA 39
(NPD) at
para [15]
[6]
This corresponds with the instalment plan history, CaseLines 011-23,
Annexure “
CoJ1
”
[7]
CaseLines 011-24, Annexure “
CoJ3
”
;
instalment total R599 884.45 (deposit of R25 000,000)
14 June 2017 and instalments of R16 425,27
[8]
CaseLines 011-23, Annexure “
CoJ2
”
;
instalment total R628 905,47 and instalment of R17 968,73
from 30 August 2022
[9]
CaseLines 011-25, Annexure “
CoJ5
”
;
instalment total R662 991,62 (deposit made on 9 February 2018)
and instalments of R25 782,24 from 9 March 2018
[10]
CaseLines 004-57, Annexure “
JJ4
”
,
total due reflected as R23 588,35 but actual amount due is
R92 491,17
[11]
CaseLines 004-62; Annexure “
JJ6
”
[12]
CaseLines 004-66
[13]
CaseLines 004-69
[14]
CaseLines 004-97
[15]
CaseLines 004-101
[16]
In this regard, the applicant averred that its average charges for
electricity consumption was between R25 000,00 and R50 000,00
per month, CaseLines 004-97, 3 May 2018 statement reflects an
electricity charge of R83 795,83
[17]
CaseLines 004-121, September 2018 statement reflects a balance due
of R369 733,33 but CaseLines 004-125 October 2018 statement
reflects a carried over balance of R481 777,26; CaseLines
004-125, applicant duress payment R435 495,09, 18 September
2018; CaseLines 004-125, Annexure “JJ16”, October 2018
statement respondent charges R396 070,07 for electricity
usage
and again CaseLines 004-130, 10 November 2018 R416 867,64 for
restoration of electricity which was disconnected during
November
2018 by respondent; CaseLines 004-130, November 2018 statement,
electricity usage R572 440,39; CaseLines 004-134,
December 2018
statement, R132 760,06 for electricity usage
[18]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[19]
CaseLines 011-34 to 011-035, Annexure “
CoJ6
”
[20]
CaseLines 011-34 to 011-035, Annexure “
CoJ6
”
[21]
Amacasa
Properties 129 (Pty) Ltd v The City of Johannesburg
2021
JDR 2799 (GJ) at paras [5] to [9]
[22]
Euphorbia
(Pty) Ltd t/a Gallagher Estates v The City of Johannesburg
[2016] ZAGPHC 548
at
paras [10] and [17]
[23]
Room
Hire Co (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd
1949 (3) SA 1155 (T)
[24]
The Greater Johannesburg Metropolitan Council Standardisation of
Electricity By-Laws,
Gazette
Notice
1610
of 1999
sino noindex
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