City Power (SOC) Limited v Combined Private Investigations CC (46054/2018) [2020] ZAGPPHC 679; 2021 (3) SA 202 (GP) (25 November 2020)

City Power (SOC) Limited v Combined Private Investigations CC (46054/2018) [2020] ZAGPPHC 679; 2021 (3) SA 202 (GP) (25 November 2020)

The court held that condonation for the late filing of the rescission application should be granted as it was in the interests of justice. The default judgment and order were set aside because the second agreement, forming the basis of CPI's second claim, was found to be prima facie invalid under section 217 of the Constitution and the principle of legality, as it contravened municipal procurement requirements. The first agreement was also terminated prior to the claims, and any payments claimed thereafter would have exceeded the contract price, raising issues of legality. The court found that City Power had established good cause and a bona fide defence for rescission. The opposition by...

Citation
[2020] ZAGPPHC 679
Parties
Applicant: City Power (SOC) Limited; Respondent: Combined Private Investigations CC
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 November 2020
Case Number
46054/2018
Procedural Posture
Rescission Application / Application for Condonation and Rescission of Default Judgment
Outcome
Application for condonation and rescission of default judgment granted. Default judgment and order set aside. Applicant ordered to pay costs on party and party scale.
Judges
H P van Nieuwenhuizen
Legal Topics
Rescission of Default Judgment, Principle of Legality, Public Procurement, Contractual Validity, Condonation, Municipal Contracts
Civil Procedure Commercial and Corporate Constitutional Law Rescission of Default Judgment Principle of Legality Public Procurement Contractual Validity Condonation +1 more

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Parties

City Power (SOC) Limited

Applicant

Combined Private Investigations CC

Respondent

Procedural Posture

Rescission Application / Application for Condonation and Rescission of Default Judgment

Legal Issues

  1. 1 Whether condonation for the late filing of the rescission application should be granted.
  2. 2 Whether the default judgment and order granted on 22 August 2019 should be rescinded.
  3. 3 Whether the underlying agreements forming the basis of the respondent's claims are unlawful and invalid under the principle of legality and section 217 of the Constitution.

Ratio Decidendi

The court held that condonation for the late filing of the rescission application should be granted as it was in the interests of justice. The default judgment and order were set aside because the second agreement, forming the basis of CPI's second claim, was found to be prima facie invalid under section 217 of the Constitution and the principle of legality, as it contravened municipal procurement requirements. The first agreement was also terminated prior to the claims, and any payments claimed thereafter would have exceeded the contract price, raising issues of legality. The court found that City Power had established good cause and a bona fide defence for rescission. The opposition by...

Court Disposition

Application for condonation and rescission of default judgment granted. Default judgment and order set aside. Applicant ordered to pay costs on party and party scale.

Orders

  • Condonation is granted for the late launching of the rescission of default judgment application dated 18 February 2020.
  • The default judgment and order granted under case number 46054/2018 on 22 August 2019 is set aside.