De Sols Trading CC and Another v Government of South Africa and Others (13762/10) [2010] ZAGPPHC 136 (5 October 2010)

De Sols Trading CC and Another v Government of South Africa and Others (13762/10) [2010] ZAGPPHC 136 (5 October 2010)

The court found that the Second Applicant was blacklisted by the National Treasury since 20 November 2003 and that she knew or should have known of her status. Her failure to disclose this fact in the bid documents induced the Second Respondent to enter into the contract with the First Applicant. The contract was lawfully cancelled in accordance with Treasury regulations and the General Bid and Contract Conditions, which permit cancellation where incorrect information is supplied or fraudulent conduct occurs. The Applicants were not entitled to declaratory relief, as the First Applicant was not blacklisted and the Second Applicant had not established a right to removal from the blacklist....

Citation
[2010] ZAGPPHC 136
Parties
Applicant: De Sols Trading CC; Applicant: Anitha Dubaram Singh; Respondent: Government of South Africa; Respondent: Minister of Defence; Respondent: Minister of Finance; Respondent: Chair Person of State Tender Board; Respondent: State Tender Board; Respondent: Chief Director Contract Management; Respondent: National Treasury RSA
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
5 October 2010
Case Number
13762/10
Procedural Posture
Urgent Application / Application for Confirmation of Interim Order; Opposed Motion
Outcome
Application dismissed with costs; interim order discharged.
Judges
Mabuse
Legal Topics
Blacklisting of Suppliers, Declaratory Relief, Specific Performance, Contract Cancellation, Review of Administrative Action, Unreasonable Delay
Administrative Law Civil Procedure Commercial and Corporate Blacklisting of Suppliers Declaratory Relief Specific Performance Contract Cancellation Review of Administrative Action +1 more

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Parties

De Sols Trading CC

Applicant

Anitha Dubaram Singh

Applicant

Government of South Africa

Respondent

Minister of Defence

Respondent

Minister of Finance

Respondent

Chair Person of State Tender Board

Respondent

State Tender Board

Respondent

Chief Director Contract Management

Respondent

National Treasury RSA

Respondent

Procedural Posture

Urgent Application / Application for Confirmation of Interim Order; Opposed Motion

Legal Issues

  1. 1 Whether the cancellation of the contract by the Second Respondent was lawful.
  2. 2 Whether the Second Applicant was properly notified of her blacklisting.
  3. 3 Whether the Applicants are entitled to declaratory relief regarding their status on the National Treasury blacklist.

Ratio Decidendi

The court found that the Second Applicant was blacklisted by the National Treasury since 20 November 2003 and that she knew or should have known of her status. Her failure to disclose this fact in the bid documents induced the Second Respondent to enter into the contract with the First Applicant. The contract was lawfully cancelled in accordance with Treasury regulations and the General Bid and Contract Conditions, which permit cancellation where incorrect information is supplied or fraudulent conduct occurs. The Applicants were not entitled to declaratory relief, as the First Applicant was not blacklisted and the Second Applicant had not established a right to removal from the blacklist....

Court Disposition

Application dismissed with costs; interim order discharged.

Orders

  • The interim order granted by this Court in favour of the Applicants on 16 March 2010 is discharged.
  • The application is dismissed with costs.