Case Law[2023] ZAGPJHC 1451South Africa
Body Corporate of Willow and Aloe Grove v City of Johannesburg and Another (41604/2020 ; 13541/2022) [2023] ZAGPJHC 1451 (11 December 2023)
Headnotes
SUMMARY
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Body Corporate of Willow and Aloe Grove v City of Johannesburg and Another (41604/2020 ; 13541/2022) [2023] ZAGPJHC 1451 (11 December 2023)
Body Corporate of Willow and Aloe Grove v City of Johannesburg and Another (41604/2020 ; 13541/2022) [2023] ZAGPJHC 1451 (11 December 2023)
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sino date 11 December 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case Numbers: 41604/2020
& 13541/2022
REPORTABLE
OF INTEREST TO OTHER
JUDGES
NOT REVISED
11/12/23
In
case number 41604
In
the matter between:
BODY
CORPORATE OF WILLOW AND ALOE GROVE
(SECTIONAL
SCHEME NUMBER: 103/2011)
Applicant
and
THE
CITY OF JOHANNESBURG
First
Respondent
LUKHWARENI,
NDIVHONISWANI
Second
Respondent
And
In case number
13541/2022
In
the matter between
SELLAH
WILHELMINA THEBYANE
Applicant
And
MOGALE
CITY LOCAL MUNICIPALITY
First
Respondent
THE
MUNICIPAL MANAGER:
MOGALE
CITY LOCAL MUNICIPALITY
Second
Respondent
ORDERS
In case number
41604/2020
[1]
The
application
is dismissed.
[2]
The respondents are to comply with section
11(5) of the by-laws of the City of Johannesburg relating to
complaints in respect of accounts
by
informing
the applicant, in writing, of the municipality’s
decision with reference to the adjustments to the applicant’s
account
such that it is made intelligibly clear why each of the
adjustments were affected and how the final determination of the
amount
owing to the municipality has been reached.
[3]
The first respondent is to pay the costs of
the application.
In
case number
13541/2022
[1]
The application is dismissed.
[2]
The applicant is to pay the costs.
SUMMARY
Legislative scheme
relating to the credit control, collection and dispute resolution
processes of municipalities - comprising
Local Government:
Municipal Systems Act
32
of 2000
and the municipal by-laws
adopted thereunder - examined.
Held
- The legislative scheme relating to credit control and dispute
resolution in municipalities creates
a contractual
relationship.
Held – A customer
is obliged under the contract to frame the query or dispute in a
manner that is accessible. The municipality
is obliged to engage
efficiently and intelligently with the dispute with the object of
coming to its resolution.
Held - The municipality
must inform the customer, in writing, of its decision. The written
information provided to the customer
under the by-laws must have
cogency.
(Section 11(5)
of the COJ by-laws;
section 12
of the Mogale
City Local municipality’s by-laws)
Held - The dispute must
be engaged with by both parties in good faith and on the basis that
there is method and reason brought to
bear on an identified issue or
issues. The legislative scheme provides that while this process is
unfolding in terms of the scheme
there can be no debt collection
measures taken relating to the amount in dispute, including
termination or disconnection of municipal
services.
Held – Whether
there has been compliance by the parties with their obligations
depends on the facts.
-
In the COJ case - the COJ had not been
compliant; applicant was entitled under the scheme to more details
and further explanation
relating to the final account produced; so
ordered with the municipality to pay the costs.
-
In the MCLM case the municipality was
compliant; the application dismissed with costs.
Held
-
The relationship between customer and the
municipality is contractual but also has administrative and statutory
components.
Were a court to interfere in the
determination of the dispute, this would amount to an impermissible
incursion into the contract
of the parties. From an administrative
perspective, such intervention would amount to an impermissible
interference with decisions
which are to be taken by the municipality
under the legislative scheme.
Held
– The appeal process under
section 62
of the Act will yield a
final administrative decision which may be subject to a judicial
review. Any review process would have
to engage sensibly with the
administrative failings of the municipality and would, of necessity,
entail an inquiry into whether
the internal remedies available to the
customer in terms of the legislative scheme have been exhausted.
JUDGMENT
FISHER, J
Introduction
[1]
It is not unusual for exasperated customers
of municipalities the country over to have to resort to the courts in
a bid to resolve
disputes. Regrettably, this is often sought to be
done without a consideration of the court’s function and powers
in the
context of the relationship between municipalities and
citizens and the understanding that relief sought must comply with
the legal
prescripts which govern this relationship.
[2]
These two cases came separately before me
in an opposed motion week. Both represent typical applications
brought against municipalities
in our courts relating to municipal
accounts. Generally, what is sought is that there be an order
compelling the reconnection of
services which have been disconnected
or the interference by the court in the municipality’s
accounting and other debt collection
processes.
[3]
In the application against the City of
Johannesburg (CoJ) it is common cause that there have been errors in
the accounting dating
back to November 2014. The account is in
respect of municipal charges for services provided by the
municipality to the applicant’s
commercial property in
Johannesburg known as
Houghton Estate
Office Park
.
[4]
In the case against Mogale City Local
Municipality (MCLM) the dispute relates to electricity, water and
sanitation charges for services
to the applicant’s residential
property in Krugersdorp for a period spanning July 2013 to January
2019. Electricity supply
to the property was disconnected in 2021 and
has remained disconnected.
The applicant
seeks that the court order the municipality to reconnect the
electricity services. Alternatively, she seeks a declaration
that an
allegedly disputed amount debited to her account during March 2017
has prescribed and that MCLM be directed to credit her
account with
the amount declared to be so extinguished.
[5]
The second respondent in each case is the
municipal manager of the municipality as the responsible functionary
of the municipality.
[6]
In this judgment I examine the legislative
scheme which governs the relationship between municipalities and
their customers with
reference to debt recovery, credit control and
dispute resolution. This examination is done with the aim of
clarifying the powers
and function of the court in this context.
Legislative scheme
[7]
According
to the Constitution “the objects of local government”
are, inter alia, “to provide democratic and accountable
government for local communities”
[1]
and '’to ensure the provision of services to communities in a
sustainable manner.”
[2]
[8]
Obviously, the fulfilment of these objects
requires services to be charged for and for the payment of such
charges to be regulated.
The duty to levy and collect payment is a
constitutional imperative.
[9]
The
Local Government: Municipal Systems Act
is
enacted for the purposes of providing municipalities with a
centralised and consistent approach in relation to the creation and
managing of systems for credit control and debt collection.
The
Local Government: Municipal Systems Act (the
Act)
[3]
[10]
The preamble to the Act states, inter alia,
that its purpose is:
“
[T]o
empower the poor and ensure that municipalities put in place service
tariffs and credit control policies that take their needs
into
account by providing a framework for the provision of services,
service delivery agreements and municipal service districts;
to
provide for credit control and debt collection.”
[11]
Section 5(1)
of the Act provides a broad
overview of the rights and duties of the community. It provides that
members of the community may submit
written or oral recommendations,
representations and complaints to the municipality. It provides
furthermore that this must be
done in terms of the processes and
procedures of the legislative scheme which is created in terms of the
Act.
[12]
In terms of
section 5(2)
such community
members have a concomitant duty when exercising their rights to
observe the mechanisms, processes and procedures
of the municipality.
[13]
Section
96
of the Act provides that a municipality must collect all money due
and payable to it and that for this purpose it is obliged to
adopt,
maintain and implement a credit control and debt collection policy
which is consistent with its rates and tariff policies
and complies
with the provisions of the Act. To this end it must adopt by-laws.
[4]
[14]
Section
95
of the Act provides that a municipality must take reasonable steps
to ensure that the consumption by individual users of services
is
measured through accurate and verifiable metering systems.
[5]
It must ensure also that persons liable for payments receive regular
and accurate accounts. Such accounts must indicate the basis
for
calculating the amounts due.
[6]
[15]
A
municipality is to provide accessible mechanisms for persons to query
or verify accounts and metered consumption. There must be
appeal
procedures which allow for persons liable for payments to receive
prompt redress for inaccurate accounts.
[7]
There must also be accessible mechanisms for dealing with complaints.
It is required of a municipality that it issue prompt replies
and
corrective action.
[8]
[16] In terms of
section
102(1)(c)
, a municipality may implement any of the debt collection
and credit control measures provided for in the Act in relation to
any
arrears, including the termination of services.
[17] In terms of
section
102
(2), the municipality may not implement such
measures, including termination,
where there is “a
dispute between the municipality and [its customer] concerning any
specific
amount claimed by the municipality from that person.”
(Emphasis added.)
[18]
In
terms of
section 102(1)(a)
, a municipality may
consolidate
separate accounts of persons liable for payments to the municipality.
In this way arrears may be raised and measures
taken across the range
of services provided. Put differently, the fact that one is up to
date with one’s electricity account
but in arrears in respect
of charges for other services does not prevent the disconnection of
the electricity services.
[19]
Thus,
in sum, the Act requires that disputes in relation to specific
charges on a municipal account must be dealt with through a
co-operative structure which places obligations on both the customer
and the municipality and which affords to the customer procedural
fairness. This includes an internal appeal mechanism.
[9]
[20] It must be noted
that there is no provision for resorting to court for the resolution
of disputes in the context of this structure.
[21] As I have said, the
Act provides for the creation by municipalities of a more granular
credit control and debt collection policy
by way of the power and
obligation to pass by-laws.
The by-laws
[22]
Credit control and debt collection by-laws of all
municipalities have common salient features and processes in that
they must all
be aligned with the prescripts of the Act and, in turn,
the Constitution.
[23]
Section 11 of the CoJ by-laws deals with
queries or complaints in respect of municipal accounts and reads as
follows:
“
Queries
or complaints in respect of accounts
(1)
A customer may lodge a query or complaint
in respect of the accuracy of any amount due and payable in terms of
an account rendered
to him or her in terms of these By-laws.
(2)
A query or complaint must be lodged with
the Council before or on the due date for payment specified in the
account concerned, or
as soon as reasonably possible thereafter.
. . .
(5)
The Council must –
(a)
investigate or cause the query or complaint
to be investigated within 14 days, or as soon as possible after the
query or complaint
was received; and
(b)
inform the customer, in writing, of its
decision as soon as possible after conclusion of the investigation,
instructing that any
amount found to be due and payable must, subject
to the provisions of section 21, be paid within 21 days from the date
on which
the customer is notified thereof, unless an appeal is lodged
within that period in terms of subsection (6) or section 12.
(6)
A customer may, subject to the provisions
of section 12, lodge an appeal with the City Manager in terms of
section 62 of the Act
against a decision referred to in subsection
(5), within 21 days of the date of the notification of the decision.”
[24]
Section 12 of MCLM by-laws provides that
customers may lodge appeals and disputes and that:
“
For
a dispute to exist there must be more than just an expression of
dissatisfaction and may not be by implication, a general enquiry
and
must be submitted within thirty (30) days of the account. If a
dispute is raised after this period, it will be treated as an
enquiry, the account will not be suspended and normal credit control
procedures will apply.”
[25]
A central feature under the scheme is the
isolation of the disputed amount while payment is made of amounts
incurred going forward.
[26]
In September 2014 the CoJ established an
independent Office of the Ombudsman to be a designated neutral
facilitator who provides
confidential and impartial assistance in
resolving grievances and disputes. It is empowered to investigate
complaints, report findings,
and mediate settlements. The by-laws
relating to the Office of the Ombudsman make it clear that it is not
necessarily a first port
of call and that the by-laws mentioned
above, which allow for the raising of disputes and queries, should be
used in the absence
of maladministration and undue complexity.
[27]
Against this backdrop I turn to the salient
facts of each matter.
The application
against the CoJ
[28]
The applicant relies on three separate
disputes that it claims to have isolated in the accounts. The first
is with reference to
the account of 19 November 2014 which reflected
a recalculation of the account from inception, being July 2013 until
October 2014
in respect of all services (i.e. water and sanitation,
electricity). The applicant contends that this recalculation of the
account
led to it being charged for an amount of approximately
R 950 000.00 which was not due.
[29]
The second dispute relates to alleged
double charges for electricity and water meter readings in the period
March to May 2017.
[30]
The third dispute relates to an alleged
“practice” of arbitrarily raising inflated amounts of
electricity for the period
December 2014 to January 2019. It seems
that these complaints overlap to an extent.
[31]
Although it is not clear what dispute
resolution processes were initially adopted, the dispute ultimately
came before the Ombudsman on 13 October 2017. This
resulted in what has been termed a “settlement agreement”.
[32]
However, the dispute itself was not
settled. The agreement is nothing more than a concession by the
municipality that there was
an error with the electricity billing for
November 2014 and an undertaking that certain named officials of the
revenue department
of the municipality would conduct investigations
in relation to the erroneous account and provide a final response by
02 November
2017.
[33]
As set out above, pending resolution of a
properly lodged dispute, the services in issue may not be terminated.
[34]
Thus, by at least 13 October 2017, the
municipality was bound to investigate and report back with a final
determination of the amounts
that it contended were owing as at
November 2017.
[35]
The applicant, on the other hand, was bound
to continue to pay the amounts due for services consumed going
forward. Only payment
of the disputed amount could be withheld by the
applicant.
[36]
The municipality did not comply with its
obligation to provide a determination by 02 November 2017. The
dispute was allowed to drag
on.
[37]
It seems that the exasperation of the
applicant in relation to the inaction of the municipality eventually
led it to withhold payments
of undisputed amounts.
[38]
The municipality demanded payment and
stopped supplying electricity when payment was not forthcoming.
Whether the correct termination
process was followed by the
municipality is unclear. Nothing turns on this for present purposes,
however.
[39]
The refusal to pay due amounts and the
resultant withholding of services was catalytic of still further
confusion and dissatisfaction
in relation to the dispute.
[40]
It seems that payment of the full amount
outstanding, including the disputed amount, was now demanded by the
municipality for it
to restore connection. It is clear that at this
point the dispute had not been determined.
[41]
Had court intervention been sought when the
electricity was first disconnected the only competent order would
have been that a final
account be produced in accordance with the
undertaking before the Ombudsman and that there could be no
disconnection of the services
pending resolution of the dispute. This
would have required payment of the undisputed amounts but would have
avoided payment of
the disputed amounts.
[42]
Instead of a sensible determination of the
amounts disputed and undisputed and the payment of the undisputed
amount, the full amount
demanded was paid under protest.
[43]
An amount of over R 1.6 million was
thus paid by the applicant in order to secure restoration of the
services. The court is
not told which portion of the R 1.6
million paid was devoted to the disputed amount and which was in
respect of payments due.
[44]
At this stage, the applicant decided that
it required the assistance of an attorney. It employed the services
of Mr G Vermaak.
[45]
It seems that Mr Vermaak advised the
applicant that it should not have paid the amount demanded by the
municipality. On 21 February
2018 a letter was addressed to the
municipality by Mr Vermaak demanding repayment of the full amount of
R 1.6 million which
was alleged to have been paid under duress.
A claim for damages was also threatened.
[46]
On 26 March 2018 the applicant’s
current attorney, Mr Wellbeloved, took over the matter. He wrote an
email asking that a meeting
be convened to discuss the reasons behind
the recalculation of November 2014. The reason for this recalculation
is central to the
dispute.
[47]
The applicant alleges that no response was
received to these letters. It seems that the matter went into a lull.
Presumably the
applicant had stopped paying for services on the basis
that it was in credit by its calculation and on its version. But the
lull
was an uneasy one and the applicant’s credit position had
a limited lifespan.
[48]
Further correspondence by Mr Wellbeloved to
the municipality’s legal department demanding a resolution
substantially in accordance
with the relief ultimately sought in this
application seems to have fallen on the deaf ears of those dealing
with the matter on
behalf of the municipality.
[49]
The applicant then brought this application
on 09 December 2020.
[50]
From 18 January 2021 to 03 February 2021,
and in a bid to achieve settlement of the application without the
need for the filing
of an answering affidavit, there were overtures
made by the municipality’s attorney, Mr Yoshira Ramjee of
Nozuko Nxusani
Incorporated, to Mr Wellbeloved to attend meetings for
the purposes of attempting to settle the dispute.
[51]
To this end, on 18 January 2021 Mr Ramjee
sent a letter in terms of which he invited the applicant to a
debatement of the account.
The municipality says that there was no
response to this invitation. A second invitation was answered by Mr
Wellbeloved on the
basis that this invitation was rejected.
[52]
The municipality was thus forced to file
its answering affidavit. The affidavit was filed late and condonation
is sought. The application
for condonation is not opposed. A refusal
of condonation would serve only to protract the matter still further
and accordingly,
I shall grant it.
[53]
The municipality’s deponent is Mr
Tuwani Ngwana a legal advisor in the municipality’s revenue and
debt collection department.
He admits that there were errors in the
calculation of the amounts due. He says that the municipality has at
last corrected the
account and made a final determination of amounts
owing.
[54]
An account produced in the course of this
litigation, which the municipality alleges is indeed the corrected
final account, is attached
to the answering affidavit as annex AA5.
[55]
In terms of such corrected account, the
applicant’s account was in credit in an amount of approximately
R 812 000.00
as at February 2021. According to the
municipality, such credit has since been exhausted.
[56]
The applicant was unimpressed by this
intra-curial recalculation. It amended its notice of motion to seek
that the municipality
be ordered to reverse the amendments to the
proffered account and recalculate the electricity charges in
accordance with its submissions
and version. The amendment was sought
on the basis of a supplementary affidavit sought to be filed by the
applicant which raises
disputes on the intra curial account.
[57]
The municipality has also sought to file a
supplementary affidavit raising a prescription defence and making
still further allegations
and justifications relating to the
accounting sought to be employed by the applicant.
[58]
The applicant has sought to reply to the
municipality’s supplementary affidavit by baldly restating that
it does not agree
with the calculations and that it is entitled to an
explanation as to the contention of the municipality that the account
was correct.
[59]
The matter has now devolved to a level
where it is more of an intractable mess than it was when the
application was first issued.
[60]
The court is prevailed upon in this context
to apply an accounting of its own. This is under circumstances where
the dispute seems
ever-evolving in light of the further sets of
affidavits generated on each side.
[61]
Clearly,
this is an untenable state of affairs. Neither party has made out a
case for the receipt of the further affidavits. The
general approach
taken to receipt
of
further affidavits is “a question of fairness to both
sides”.
[10]
[62]
On the basis that the application seeking
that the court direct the municipality to make specific changes to
the account was not
competent in the first place these affidavits are
inadmissible.
The application
against MCLM
[63]
Mrs Thebyane noticed what she viewed as an
unusually high charge of R 17 227.00 on her municipal water
account on 31 March
2017. She paid an amount of R 1 700.00
which she believed to be reasonable. In fact, she alleges that she
misread the
number because it was so extraordinary and believed
herself to be paying the correct amount.
[64]
Approximately two months later, when she
realised that the debit was in fact in excess of R 17 000.00,
she attended on
the municipality’s offices and queried the
account. She was referred to a manager in the revenue department,
Ms Gladys
Selepe.
[65]
Her complaint was given a reference number
354558 and the query attended to on the basis that the Chief
Financial Officer (CFO)
of the municipality and Ms Selepe
convened a meeting with the applicant on 24 July 2017 where her views
as to the query were
heard.
[66]
The CFO’s decision and/or answer as
to the query was conveyed to the applicant by the municipality on 24
October 2017 in writing.
[67]
In essence, the municipality conceded that
the amount debited on the account of 31 March 2012 was extraordinary.
The CFO explained
was that there had been a new meter installed on
the premises because the old meter was not operating properly because
it was “buried”.
The new meter was initially not properly
linked to the municipality’s billing system and this endured
for 16 months.
During this period the applicant was charged low
estimates on the basis of the defunct meter’s historical
readings.
[68]
Once the new meter was properly linked to
the municipality’s system it was found that a total amount of
R 17 222.00
had accrued over the period which amount was
not covered by the estimations charged over the period.
[69]
The municipality now also took steps to
make sure the applicant was fairly treated by spreading the charge
over a 16-month period
so that the applicant was not prejudiced by
the original once off accumulated charge for March 2017.
[70]
The account was credited on 17 October 2017
with the sum of R 8 485.00 on the basis that the
municipality effected a recalculation
so that the amount due could be
amortised over a 16-month period; the accrued interest on such amount
of R 883.00 was also
written off.
[71]
It was pointed out by the CFO in his
written determination that the municipality had recorded an upward
trend in water consumption
between April 2017 and July 2017 and that
this had caused the municipality to send technicians to investigate.
It was stated that
no water leakage was found but that it was noted
that there had been building activity on the property which, in the
view of the
municipality, explained the above average consumption. It
was noted furthermore that the consumption had since normalised.
[72]
This should have been the end of the
matter. The applicant has not put forward any version which suggests
that these findings of
MCLM are incorrect.
[73]
It appears to me that the dispute was
resolved in a professional and fair manner by the MCLM.
[74]
The applicant, however, continued seeking
information after receipt of this finding/explanation of the CFO. It
is not clear what
issue she had with the CFO’s resolution of
the dispute. Indeed, even years later she still makes out no case as
to a particular
grievance.
[75]
Subsequent to the determination of the
dispute, the applicant made erratic and inadequate monthly payments
on the account. The application
of these payments did not serve to
meet the amounts levied on the account and the arrears mounted up.
[76]
During 2019 the municipality disconnected
the electricity supply to the property as a debt collection measure.
This followed, at
least, eleven notices of demand having been sent
between July 2017 to April 2018.
[77]
The applicant alleges that she involved
lawyers at this point and that a reconnection was achieved. She gives
no detail as to how
the reconnection occurred. She says she does not
have documents relating to what the lawyers did.
[78]
Her delinquency continued and on 30 March
2021 the electricity supply was again disconnected.
[79]
The municipality offered to enter into an
arrangement with the applicant in relation to a payment plan,
provided she signed acknowledgment
of debt for the arrears. But the
applicant rejected this accommodation. The electricity has remained
disconnected.
Discussion regarding
the proper approach to disputes relating to municipal charges
[80]
Most municipal by-laws give some indication
as to the form in which a complaint or query must be submitted.
[81]
The Act seeks to facilitate a user-friendly
process which accords with constitutional precepts of fairness. From
a general perspective,
it is elementary that a complaint or query be
sensibly framed on the basis that the validity of a particular charge
or charges
is questioned in a manner that is understandable. This is
the obligation of the customer.
[82]
The obligation of the municipality is to
engage efficiently and intelligently with the complaint with the
object of coming to a
determination which either resolves it or
allows for further engagement with it in accordance with the scheme.
[83]
The municipality must inform the customer,
in writing, of its decision in relation to the dispute. The written
information provided
to the customer must have cogency and be
directed to the dispute at hand.
[84]
In the case against the CoJ, the Ombudsman
was approached pursuant to the hearing before the Ombudsman, the CoJ
recognised that
there was an error on the account and undertook to
investigate and resolve the error by 02 November 2017.
[85]
The municipality was subsequently
delinquent. This delinquency resulted in the applicant taking the law
into its own hands and withholding
all payments. This, in turn, led
the municipality to cut-off the electricity supply to the applicant’s
property which led
to the forced payment and, ultimately, this
application.
[86]
This chain of events could have been
avoided had the municipality complied with its obligations under the
settlement and the scheme.
It should have reverted to the applicant,
as it undertook to do, by 02 November 2017 or, at least, have
explained why this was
not possible and kept the applicant up to date
with actions being taken to resolve the matter and the expected
timeframe.
[87]
I do not understand the case of the CoJ to
be that there was a lack of particularity provided to it in relation
to the dispute.
At least by 13 October 2017 there appears
to have been a sense of the nature of the complaint and hence the
undertaking
to investigate and determine it within two weeks.
[88]
If the dispute had been determined on the
basis that a proper explanation for the adjustment to the account was
provided, the applicant
could have proceeded to appeal the
determination should it have been dissatisfied. Instead, it has come
to this court.
[89]
The approach of the CoJ, unfortunately,
amounts to too little too late. It is no more than an account
evidencing that there has
been a reversal of certain payments and a
recalculation of the amounts owing going back to November 2014.
[90]
From a general perspective, it is unhelpful
for a recalculated account to be presented which gives no information
pertaining to
the dispute at hand. For the dispute resolution process
to have content, it must be engaged with by both parties in good
faith
and on the basis that there is method and reason brought to
bear on the identified issue. MCLM met this standard. The CoJ did
not.
[91]
If the process is not followed in good
faith by one or the other party, a court will be reluctant to assist
such party. It will
generally be clear on the facts when a party is
abusing the process for the purposes of delay.
[92]
The municipality has specialist employees
with accounting expertise who have reference to and knowledge of the
workings of the municipality’s
information systems. Using this
access and specialist knowledge, these officials are in a position to
investigate disputes of the
kind facing the parties here.
[93]
The court is not in this unique position.
It usually cannot determine these disputes and it does not have the
jurisdiction to do
so. The court’s function is to see to it
that the parties’ respective rights are fairly accommodated
within the municipality’s
internal procedures and the law. Its
function is not to resolve the dispute. It must defer to the
municipality as to the determination
of the dispute.
[94]
The
relationship between the applicants and the municipalities is
contractual in nature but also has administrative and statutory
components.
[11]
[95]
To
order the municipality to rectify the account would amount to an
impermissible incursion into the contract of the parties. From
an
administrative perspective it would be an impermissible interference
with decisions to be taken by the municipality.
[96]
Thus, a court may order that the internal
remedies be employed. Whilst these remedies are being exhausted in
good faith, the structure
of the customer/municipality agreement is
such that there can be no lawful termination of services.
[97]
Ultimately, the appeal process under
section 62 of the Act will yield an administrative decision which may
in due course be subject
to a judicial review.
[98]
Any review process would have to engage
sensibly with the administrative failings of the municipality.
[99]
In
Nichol
[12]
the Supreme Court of Appeal construed section 7 of the Promotion of
Administrative Justice Act (PAJA)
[13]
and
stated:
“
It
is now compulsory for the aggrieved party in all cases to exhaust the
relevant internal remedies unless exempted from doing so
by way of a
successful application under s 7(2)(c). Moreover, the person seeking
exemption must satisfy the court of two matters:
first, that there
are exceptional circumstances and second, that it is in the interests
of justice that the exemption be given.”
[100]
Thus, any review process would, of
necessity, entail an inquiry into whether the internal remedies
available to the customer in
terms of the legislative scheme have
been exhausted.
[101]
It is thus clear that the seeking of a
mandamus against the municipality to restore a service is not as
simplistic an application
as many applicants to our courts,
especially the urgent court, believe it to be.
[102]
If
there is a relationship of customer/service provider with the
municipality then the scheme must be shown to have been followed
in
good faith. If an applicant is not a customer of the municipality
(e.g. a tenant) he may approach the court on the basis
that
procedural fairness is afforded not only to customers of the
municipality but to any person whose rights would be materially
and
adversely affected by the termination of electricity supply or other
service.
[14]
[103]
In sum, an applicant who seeks the court’s
assistance as to restoration of services must show that he is, at
least, substantially
compliant with his own obligations under the
dispute resolution machinery. If he is compliant then he has the
automatic protections
of the contractual scheme created by the Act
and the bye-laws.
[104]
On the other side of the scales is the
municipality’s obligations. If it has complied with these
obligations under the scheme
and taken all mandatory steps before
termination but the customer has not declared a proper dispute or
followed the dispute resolution
process in good faith, then a court
will be hard pressed to come to the assistance of such a customer in
the weighing up of whether
to give interim relief in the form of a
reconnection mandamus.
Conclusion
[105]
Both applications fall to be dismissed
because it is not competent for an applicant to seek to circumvent
the machinery of the legislative
scheme by resorting to court. An
applicant may only seek that the municipality comply with its
obligations under the scheme. It
cannot be sought that the court
supplants the municipality’s function.
[106]
The dispute resolution machinery in the
by-laws is not an optional feature of the relationship which can be
jettisoned in favour
of approaching a court when one or the other
party becomes dissatisfied.
Costs
[107]
The applicant in the application against
the CoJ has not been supine in the face of the dispute which had
arisen as early as 2014.
It sought, with reference to the processes
in the bye-laws, to move the matter forward and thus brought the
matter before the Ombudsman.
[108]
The municipality, however, failed to
adhere to its own processes. This is inexplicable in light of its
early concession that there
was indeed an error on the account.
[109]
Although the approach taken by the
applicant against the CoJ was flawed, it has had some success in that
the municipality is ordered
to provide more content to its alleged
determination of the dispute as set out in its intra-curial account.
[110]
The application against the MCLM has no
merit whatsoever.
Order
[111]
Thus, the following orders are made:
In case number
41604/2020
[1]
The
application
is dismissed.
[2]
The respondents are to comply with section
11(5) of the by-laws of the City of Johannesburg relating to
complaints in respect of accounts
by
informing
the applicant, in writing, of the municipality’s
decision with reference to the adjustments to the applicant’s
account
such that it is made intelligibly clear why each of the
adjustments were affected and how the final determination of the
amount
owing to the municipality has been reached.
[3]
The first respondent is to pay the costs of
the application.
In
case number
13541/2022
[1]
The application is dismissed.
[2]
The applicant is to pay the costs.
D FISHER
JUDGE OF THE HIGH
COURT
JOHANNESBURG
Delivered: This
Judgment was handed down electronically by circulation to the
parties/their legal representatives by email and by
uploading to the
electronic file on Case Lines. The date for hand-down is deemed to be
11 December 2023.
Case
number
41604/2020
Heard:
16 October 2023
Delivered:
11 December 2023
APPEARANCES:
For
the Applicant:
Adv A Mckenzie
Instructed by: Vermaak
Marshall Wellbeloved Inc.
For
the First Respondent:
Adv Nicky
Terblanche
Instructed by: Nozuko
Nxusani Inc.
Case
number
13541/2022
Heard:
17 October 2023
Delivered:
11 December 2023
APPEARANCES:
For
the Applicant:
Adv. J H F Le
Roux
Instructed by: Bhika
Calitz Inc.
For
the Respondents:
Adv. Jason Govender
Instructed by: Smith Van
Der Watt Inc.
[1]
Section
152(1)(a) of the Constitution.
[2]
Ibid
section 152(1)(b).
[3]
Local
Government: Municipal Systems Act 32 of 2000 (the Act).
[4]
Section
98 of the Act.
[5]
Section 95(d) of the Act.
[6]
Section 95(e) of the Act.
[7]
Section 95(f) of the Act.
[8]
Section 95(g) of the Act.
[9]
Section
62 of the Act deals with appeals and provides as follows:
“
(1)
A person whose rights are affected by a decision taken by a
political structure, political office bearer, councillor or staff
member of a municipality in terms of a power or duty delegated or
sub-delegated by a delegating authority to the political structure,
political office bearer, councillor or staff member, may appeal
against that decision by giving written notice of the appeal
and
reasons to the municipal manager within 21 days of the date of the
notification of the decision.
(2)
The municipal manager must promptly submit
the appeal to the appropriate appeal authority mentioned in
subsection (4).
(3)
The appeal authority must consider the
appeal, and confirm, vary or revoke the decision, but no such
variation or revocation of
a decision may detract from any rights
that may have accrued as a result of the decision.
(4)
…
(5)
An appeal authority must commence with an
appeal within six weeks and decide the appeal within a reasonable
period.
(6)
The provisions of this section do not
detract from any appropriate appeal procedure provided for in any
other applicable law.
[10]
Neutron
Energy Africa (Pty) Ltd v Hengyi Electrical Co. Ltd
[2023] ZAGPJHC 306 at para 26.
[11]
Joseph
and Others
v
City of Johannesburg and Others
[2009]
ZACC 30
;
2010 (4) SA 55
(CC);
2010 (3) BCLR 212
(CC) (“
Joseph
”)
.
[12]
Nichol
and Another v Registrar of Pension Funds and Others
(“
Nichol
”)
[2005] ZASCA 97
;
2008 (1) SA 383
(SCA) at para 15.
[13]
Act
3 of 2000.
[14]
Joseph
above
n 11 at
paras 75-76.
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