Town Council of Nigel v Escom (209/86) [1988] ZASCA 150 (28 November 1988)

Town Council of Nigel v Escom (209/86) [1988] ZASCA 150 (28 November 1988)

The Supreme Court of Appeal held that the exemption in section 5(1)(c) of the Local Authorities Rating Ordinance applies to the physical extent of the property used by Escom for reticulating electricity to the inhabitants of Nigel, regardless of whether the same property is also used to supply electricity to areas outside Nigel. The phrase 'to the extent that such property or portion thereof is so used' refers to the physical portion of the property used for the qualifying purpose, not to the proportion of electricity supplied locally versus elsewhere. The court rejected the Town Council's argument for a proportional rebate, finding no legislative support for such a calculation and noting...

Citation
[1988] ZASCA 150
Parties
Appellant: Town Council of Nigel; Respondent: Escom
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 November 1988
Case Number
209/86
Procedural Posture
Civil Appeal / Appeal From Declaratory Order of Witwatersrand Local Division
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Corbett, Van Heerden, Grosskopf, Vivier, Nicholas
Legal Topics
Municipal Rates, Servitude Exemption, Local Authorities Rating Ordinance, Electricity Supply Commission
Land and Property Tax Law Municipal Rates Servitude Exemption Local Authorities Rating Ordinance Electricity Supply Commission

Case Brief

Summary, issues, holding and outcome

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Parties

Town Council of Nigel

Appellant

Escom

Respondent

Procedural Posture

Civil Appeal / Appeal From Declaratory Order of Witwatersrand Local Division

Legal Issues

  1. 1 Whether Escom's power line servitudes used for dual purposes are exempt from municipal rates under section 5(1)(c) of the Local Authorities Rating Ordinance.
  2. 2 How the phrase 'to the extent that such property or portion thereof is so used' in section 5(1)(c) should be interpreted.

Ratio Decidendi

The Supreme Court of Appeal held that the exemption in section 5(1)(c) of the Local Authorities Rating Ordinance applies to the physical extent of the property used by Escom for reticulating electricity to the inhabitants of Nigel, regardless of whether the same property is also used to supply electricity to areas outside Nigel. The phrase 'to the extent that such property or portion thereof is so used' refers to the physical portion of the property used for the qualifying purpose, not to the proportion of electricity supplied locally versus elsewhere. The court rejected the Town Council's argument for a proportional rebate, finding no legislative support for such a calculation and noting...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.
  • The declaratory order granted by the Witwatersrand Local Division in favour of Escom stands.