Enoch Mgijima Local Municipality and Another v Eskom Holdings SOC Ltd and Others (1222/2021) [2023] ZAECMKHC 24 (14 February 2023)

Enoch Mgijima Local Municipality and Another v Eskom Holdings SOC Ltd and Others (1222/2021) [2023] ZAECMKHC 24 (14 February 2023)

The court found that the municipality failed to establish that the order was granted as a result of a mistake common to the parties. While the municipality may have misunderstood its legal remedies, Eskom was not under the same misapprehension, as there was public record of municipalities obtaining interdicts against Eskom prior to the Resilient judgment. There was no causal connection between the alleged mistake and the granting of the order, as the municipality was indebted and would have been liable for the debt regardless. The application for rescission was therefore dismissed.

Citation
[2023] ZAECMKHC 24
Parties
Applicant: Enoch Mgijima Local Municipality; Applicant: Monwabisi Somana; Respondent: Eskom Holdings SOC Ltd; Respondent: Border-Kei Chamber of Business; Respondent: Twizza (Pty) Ltd; Respondent: Crickley Dairy (Pty) Ltd; Respondent: Farmhouse Frozen Foods CC; Respondent: Kingfisher Industries CC; Respondent: Sightfull 142 CC t/a Shell Ultra City
Court
Eastern Cape High Court, Makhanda
Jurisdiction
South Africa
Judgment Date
14 February 2023
Case Number
1222/2021
Procedural Posture
Rescission Application / Judgment on Application for Rescission of Court Order
Outcome
Application for rescission dismissed with costs, including costs of two counsel.
Judges
JE Smith
Legal Topics
Rescission of Judgment, Acknowledgment of Debt, Municipal Indebtedness, Electricity Supply, Intergovernmental Dispute, Uniform Rule 42
Civil Procedure Commercial and Corporate Rescission of Judgment Acknowledgment of Debt Municipal Indebtedness Electricity Supply Intergovernmental Dispute Uniform Rule 42

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Parties

Enoch Mgijima Local Municipality

Applicant

Monwabisi Somana

Applicant

Eskom Holdings SOC Ltd

Respondent

Border-Kei Chamber of Business

Respondent

Twizza (Pty) Ltd

Respondent

Crickley Dairy (Pty) Ltd

Respondent

Farmhouse Frozen Foods CC

Respondent

Kingfisher Industries CC

Respondent

Sightfull 142 CC t/a Shell Ultra City

Respondent

Procedural Posture

Rescission Application / Judgment on Application for Rescission of Court Order

Legal Issues

  1. 1 Whether the court order making the settlement agreement between Eskom and the municipality an order of court was granted as a result of a mistake common to the parties.
  2. 2 Whether the municipality was coerced into the settlement agreement by unlawful threats of electricity disconnection by Eskom.
  3. 3 Whether Uniform Rule 42(1)(c) applies to rescind the order under the alleged circumstances.

Ratio Decidendi

The court found that the municipality failed to establish that the order was granted as a result of a mistake common to the parties. While the municipality may have misunderstood its legal remedies, Eskom was not under the same misapprehension, as there was public record of municipalities obtaining interdicts against Eskom prior to the Resilient judgment. There was no causal connection between the alleged mistake and the granting of the order, as the municipality was indebted and would have been liable for the debt regardless. The application for rescission was therefore dismissed.

Court Disposition

Application for rescission dismissed with costs, including costs of two counsel.

Orders

  • The application is dismissed with costs, including those costs occasioned by the employment of two counsel.