Eskom Holdings SOC Ltd v Nketoana Local Municipality (1222/2018) [2021] ZAFSHC 102 (6 May 2021)

Eskom Holdings SOC Ltd v Nketoana Local Municipality (1222/2018) [2021] ZAFSHC 102 (6 May 2021)

The court found that its previous orders, restraining Eskom from interrupting electricity supply to the Municipality pending resolution of disputes, were consistent with the principles confirmed by the Supreme Court of Appeal in Eskom Holdings SOC Limited v Resilient Properties (Pty) Ltd and Others. The SCA held that interruption of electricity supply to a municipality without prior compliance with statutory dispute resolution mechanisms is unconstitutional. The court determined that there was no reasonable prospect that another court would reach a different conclusion, as the orders were in line with constitutional and statutory requirements for intergovernmental dispute resolution and...

Citation
[2021] ZAFSHC 102
Parties
Applicant: Eskom Holdings SOC Ltd; Respondent: Nketoana Local Municipality
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
6 May 2021
Case Number
1222/2018
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment in Main Application
Outcome
Application for leave to appeal dismissed with costs.
Judges
P. J. Loubser
Legal Topics
Intergovernmental Dispute Resolution, Electricity Supply Interruption, Section 41 Constitution, Interim Interdict, Municipal Debt, Administrative Process Requirements
Administrative Law Constitutional Law Civil Procedure Intergovernmental Dispute Resolution Electricity Supply Interruption Section 41 Constitution Interim Interdict Municipal Debt +1 more

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Parties

Eskom Holdings SOC Ltd

Applicant

Nketoana Local Municipality

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Judgment in Main Application

Legal Issues

  1. 1 Whether Eskom is entitled to interrupt electricity supply to the Municipality pending dispute resolution.
  2. 2 Whether the orders granted in the main application are appealable.
  3. 3 Whether the requirements of Section 41 of the Constitution and the Intergovernmental Relations Framework Act were complied with before judicial intervention.

Ratio Decidendi

The court found that its previous orders, restraining Eskom from interrupting electricity supply to the Municipality pending resolution of disputes, were consistent with the principles confirmed by the Supreme Court of Appeal in Eskom Holdings SOC Limited v Resilient Properties (Pty) Ltd and Others. The SCA held that interruption of electricity supply to a municipality without prior compliance with statutory dispute resolution mechanisms is unconstitutional. The court determined that there was no reasonable prospect that another court would reach a different conclusion, as the orders were in line with constitutional and statutory requirements for intergovernmental dispute resolution and...

Court Disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs.