BLOEMFONTIEN – Centlec, a municipal-owned power distributor, has welcomed a favourable judgment handed down by the High Court of South Africa, Free State Division in Bloemfontein, in a bitter dispute involving the trustees of the Michael Family Trust.
The court ruled in favour of the electricity distributor on 27 January, against the trustees represented by Joseph Reynolds Chamley (first applicant), Michael Nicolas Georgiou (second applicant), Andriana Georgiou (third applicant), and Loch Logan Waterfront (Pty) Ltd.
Judge S. Naidoo handed down the judgment after the matter had been heard on 27 March 2024. The high court dispute involved debt worth R150 million owed by the trustees to Centlec, which, owing to non-payment of outstanding accounts, acted to interrupt the supply of electricity to the trustees’ business premises.
The trustees brought an urgent application before the High Court on 16 January 2024 (main application) and an interlocutory application on 7 February 2025, seeking to interdict Centlec from disconnecting or interrupting the supply of electricity to their business premises.
Interim orders were granted in both applications on the condition that the applicants Michael Family Trust No. TM 2505 and Loch Logan Waterfront (Pty) Ltd comply with an agreement reached between the two parties on 24 October 2023, which states that the applicants (trustees) should pay the respondent (Centlec) all amounts owed in respect of current usage of electricity.
Judge Naidoo dismissed the main application with costs, including the costs of Counsel on scale B, and costs of 25 January 2024, 5 February 2025, and 6 February 2025. Secondly, the rule in the interlocutory application was also discharged and dismissed with costs.
“Centlec welcomes and appreciates the judgment of the High Court in our favour. This judgment will enable us to recover our long outstanding debt from the Michael Family Trust No. TM 2505. Failure to honour its obligations and the provisions of the approved Credit Control and Debt Collection Policy is what led us to the situation we find ourselves in. As we had previously indicated, disconnection is not our primary goal; however, Centlec’s survival depends on the monies owed to the utility,” Centlec stated in a media release.
The power distribution entity argued there was a breach of agreements the parties had signed, and the court found there were good prospects of Centlec recouping the money.
The trustees version was that the trust and Loch Logan, a commercial letting entity, were hard hit by the Covid-19 pandemic and experienced a downturn in rent collection due to tenants who were experiencing a reduction in turnover.
In summary the court stated: “The application for interim interdict prohibiting the respondent (Centlec) from disconnecting or reducing electricity supply to commercial buildings pending action for declaratory order, applicants did not demonstrate good prospect of success in the proposed action – for court to grant interim interdict against a state entity in the clearest case.”
