Newcastle Minicipality and Another v Eskom Soc Ltd (7349/19P) [2019] ZAKZPHC 65 (8 October 2019)

Newcastle Minicipality and Another v Eskom Soc Ltd (7349/19P) [2019] ZAKZPHC 65 (8 October 2019)

The court found that the potential harm to the residents, businesses, and economy of Newcastle from the disconnection or interruption of electricity supply far outweighed the prejudice to Eskom. The urgency of the matter was established by the imminent threat of disconnection and the lack of formal notice. The...

Source-derived case information.

Citation
[2019] ZAKZPHC 65
Parties
Applicant: Newcastle Municipality; Applicant: MEC, KZN, for the Department of Co-operative Governance and Traditional Affairs (COGTA); Respondent: Eskom SOC Ltd; Respondent: Lanxeso Cisa (Pty) Ltd
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
8 October 2019
Case Number
7349/19P
Procedural Posture
Urgent Application / Interim Interdict Pending Review
Outcome
Interim relief granted; rule nisi issued preventing Eskom from disconnecting or interrupting electricity supply pending review.
Judges
Bezuidenhout
Legal Topics
Interim Interdict, Municipal Electricity Supply, Administrative Action Review, Balance of Convenience
Administrative Law Civil Procedure Interim Interdict Municipal Electricity Supply Administrative Action Review Balance of Convenience

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Parties

Newcastle Municipality

Applicant

MEC, KZN, for the Department of Co-operative Governance and Traditional Affairs (COGTA)

Applicant

Eskom SOC Ltd

Respondent

Lanxeso Cisa (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Interim Interdict Pending Review

Legal Issues

  1. 1 Whether interim relief should be granted to prevent Eskom from disconnecting or interrupting electricity supply to Newcastle Municipality pending review.
  2. 2 Whether the urgency and balance of convenience favour the granting of an interim interdict.
  3. 3 Whether the payments proposed by the Municipality are sufficient to justify interim relief.

Ratio Decidendi

The court found that the potential harm to the residents, businesses, and economy of Newcastle from the disconnection or interruption of electricity supply far outweighed the prejudice to Eskom. The urgency of the matter was established by the imminent threat of disconnection and the lack of formal notice. The Municipality's offer to pay R30 million per month provided some mitigation for Eskom's interests. The court held that the balance of convenience favoured granting interim relief to maintain the electricity supply pending the finalisation of the review application. The court also recognised the interests of third parties, such as Lanxeso Cisa (Pty) Ltd, and the broader public...

Court Disposition

Interim relief granted; rule nisi issued preventing Eskom from disconnecting or interrupting electricity supply pending review.

Orders

  • A rule nisi is granted in terms of paragraphs 1, 1.1, 1.2 and 3 of the notice of motion, with the return date set for 6 December 2019.
  • The matter is to be set down on the opposed roll on 6 December 2019.