Glofurn (Pty) Ltd v City Of Tshwane Metropolitan Municipality (36663/2022) [2022] ZAGPPHC 604 (3 August 2022)

Glofurn (Pty) Ltd v City Of Tshwane Metropolitan Municipality (36663/2022) [2022] ZAGPPHC 604 (3 August 2022)

The court found that the respondent's credit control and debt collection policy was not enforceable against customers because it had not been adopted as a by-law, as required by section 98(1) of the Municipal Systems Act. The only applicable by-law governing dispute resolution in respect of electricity supply is the Standard Electricity By-Laws, specifically By-Law 9, which requires disputes to be referred to NERSA or settled by arbitration. The applicant's dispute regarding the alleged arrears had not been finalised in accordance with the applicable by-law, and section 102(2) of the Act suspends debt collection measures pending such finalisation. The applicant demonstrated a prima facie...

Citation
[2022] ZAGPPHC 604
Parties
Applicant: Glofurn (Pty) Ltd; Respondent: City Of Tshwane Metropolitan Municipality
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
3 August 2022
Case Number
36663/2022
Procedural Posture
Urgent Application / Interim Interdict Application Before Final Determination of Dispute
Outcome
Interim interdict granted in favour of the applicant.
Judges
N Janse Van Nieuwenhuizen
Legal Topics
Municipal Services Dispute, Interim Interdict, Credit Control Policy, Electricity Supply, Local Government Legislation
Administrative Law Civil Procedure Municipal Services Dispute Interim Interdict Credit Control Policy Electricity Supply Local Government Legislation

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Parties

Glofurn (Pty) Ltd

Applicant

City Of Tshwane Metropolitan Municipality

Respondent

Procedural Posture

Urgent Application / Interim Interdict Application Before Final Determination of Dispute

Legal Issues

  1. 1 Whether the respondent is entitled to terminate electricity supply pending resolution of a dispute over alleged arrears.
  2. 2 Whether the respondent's credit control and debt collection policy is enforceable absent adoption as a by-law.
  3. 3 Whether section 102(2) of the Municipal Systems Act suspends debt collection measures pending finalisation of a dispute.

Ratio Decidendi

The court found that the respondent's credit control and debt collection policy was not enforceable against customers because it had not been adopted as a by-law, as required by section 98(1) of the Municipal Systems Act. The only applicable by-law governing dispute resolution in respect of electricity supply is the Standard Electricity By-Laws, specifically By-Law 9, which requires disputes to be referred to NERSA or settled by arbitration. The applicant's dispute regarding the alleged arrears had not been finalised in accordance with the applicable by-law, and section 102(2) of the Act suspends debt collection measures pending such finalisation. The applicant demonstrated a prima facie...

Court Disposition

Interim interdict granted in favour of the applicant.

Orders

  • The respondent is interdicted from implementing debt collection and credit control measures by terminating any services rendered to the applicant on the specified property and accounts, pending determination of the dispute for arrear amounts due up until date.
  • The respondent is ordered to pay the applicant's costs.