Twizza (Proprietary) Limited and Others v Enoch Mgijima Local Municipality and Others (3413/2018) [2020] ZAECGHC 144 (8 December 2020)

Twizza (Proprietary) Limited and Others v Enoch Mgijima Local Municipality and Others (3413/2018) [2020] ZAECGHC 144 (8 December 2020)

The court found that the respondents' defences for non-compliance with the court order—namely, the appointment of an administrator and the financial impact of the Covid-19 pandemic—were not raised in good faith and were not supported by the evidence. The respondents continued to comply with the order until February 2020, and there was no contemporaneous indication that the administrator's role or the pandemic rendered compliance impossible. The respondents failed to disclose material improvements in their financial position, such as the payment of an equitable share by National Treasury, which further undermined their credibility. The court held that the respondents' non-compliance was...

Citation
[2020] ZAECGHC 144
Parties
Applicant: Twizza (Proprietary) Limited; Applicant: Crickley Dairy (Proprietary) Limited; Applicant: Farmhouse Frozen Foods CC; Applicant: King Fisher Inductries CC; Respondent: Enoch Mgijima Local Municipality; Respondent: Ms Luleka Elizabeth Gubhula-Mqingwana; Respondent: Ms Nokuthula Cecilia Mgijima
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
8 December 2020
Case Number
3413/2018
Procedural Posture
Contempt Application / Final Judgment on Contempt Application
Outcome
Application for contempt of court granted against the first, second, and third respondents.
Judges
NG Beshe
Legal Topics
Municipal Debt Enforcement, Contempt of Court, Wilful Non Compliance, Payment Agreement, Local Government Finance
Administrative Law Civil Procedure Municipal Debt Enforcement Contempt of Court Wilful Non Compliance Payment Agreement Local Government Finance

Case Brief

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Parties

Twizza (Proprietary) Limited

Applicant

Crickley Dairy (Proprietary) Limited

Applicant

Farmhouse Frozen Foods CC

Applicant

King Fisher Inductries CC

Applicant

Enoch Mgijima Local Municipality

Respondent

Ms Luleka Elizabeth Gubhula-Mqingwana

Respondent

Ms Nokuthula Cecilia Mgijima

Respondent

Procedural Posture

Contempt Application / Final Judgment on Contempt Application

Legal Issues

  1. 1 Whether the respondents wilfully and in bad faith failed to comply with the court order dated 12 December 2019.
  2. 2 Whether the appointment of an administrator and the onset of the Covid-19 pandemic constitute valid defences to contempt of court.
  3. 3 Whether the respondents' non-compliance was bona fide or mala fide.

Ratio Decidendi

The court found that the respondents' defences for non-compliance with the court order—namely, the appointment of an administrator and the financial impact of the Covid-19 pandemic—were not raised in good faith and were not supported by the evidence. The respondents continued to comply with the order until February 2020, and there was no contemporaneous indication that the administrator's role or the pandemic rendered compliance impossible. The respondents failed to disclose material improvements in their financial position, such as the payment of an equitable share by National Treasury, which further undermined their credibility. The court held that the respondents' non-compliance was...

Court Disposition

Application for contempt of court granted against the first, second, and third respondents.

Orders

  • The first, second, and third respondents are to pay the applicants' costs of this application, jointly and severally, the one paying, the other to be absolved.