Greater Johannesburg Transitional Metropolitan Council v Eskom (536/97) [1999] ZASCA 95; 2000 (1) SA 866 (SCA) (30 November 1999)

Greater Johannesburg Transitional Metropolitan Council v Eskom (536/97) [1999] ZASCA 95; 2000 (1) SA 866 (SCA) (30 November 1999)

The Supreme Court of Appeal held that regional services councils and the appellant, as local authorities, exercise governmental functions at regional and local levels and are organs of government. On a proper construction of the Eskom Act, the expression 'the State' in section 24 is not limited to central and provincial government but includes the State in all its manifestations, encompassing regional and local authorities. The Court rejected the test of ministerial control as dispositive and found that the statutory distinctions in other legislation do not justify a restrictive interpretation of 'the State' in section 24. The exemption in section 24 was intended to apply broadly, and...

Citation
[1999] ZASCA 95
Parties
Appellant: Greater Johannesburg Transitional Metropolitan Council; Respondent: Eskom
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 November 1999
Case Number
536/97
Procedural Posture
Civil Appeal / Appeal From Income Tax Special Court
Outcome
Appeal dismissed with costs, including the costs of two counsel.
Judges
Mahomed, Vivier, Scott, Melunsky, Farlam
Legal Topics
Regional Establishment Levy, Statutory Exemption, Definition of State, Local Government Functions
Administrative Law Tax Law Regional Establishment Levy Statutory Exemption Definition of State Local Government Functions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 24 Party arguments 2
Sign in to unlock

Parties

Greater Johannesburg Transitional Metropolitan Council

Appellant

Eskom

Respondent

Procedural Posture

Civil Appeal / Appeal From Income Tax Special Court

Legal Issues

  1. 1 Whether Eskom is exempted from paying regional establishment levies under section 24 of the Eskom Act for the period in question.
  2. 2 Whether the expression 'the State' in section 24 of the Eskom Act includes regional services councils and local authorities such as the appellant.
  3. 3 Whether the test of ministerial control is the correct approach to determine if a body is part of 'the State'.

Ratio Decidendi

The Supreme Court of Appeal held that regional services councils and the appellant, as local authorities, exercise governmental functions at regional and local levels and are organs of government. On a proper construction of the Eskom Act, the expression 'the State' in section 24 is not limited to central and provincial government but includes the State in all its manifestations, encompassing regional and local authorities. The Court rejected the test of ministerial control as dispositive and found that the statutory distinctions in other legislation do not justify a restrictive interpretation of 'the State' in section 24. The exemption in section 24 was intended to apply broadly, and...

Court Disposition

Appeal dismissed with costs, including the costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.