Housing Development Agency v Khavhakone Construction Group (Pty) Ltd (22632/2022) [2025] ZAGPPHC 506 (16 May 2025)

Housing Development Agency v Khavhakone Construction Group (Pty) Ltd (22632/2022) [2025] ZAGPPHC 506 (16 May 2025)

The court found that the applicant's defence regarding the invalidity of IPC25 and IPC26 was properly considered in light of the Arbitrator's interim award and the common cause facts. The contract was confirmed as a lump sum contract, and the valuation method for interim certificates did not alter its nature. The respondent's entitlement to payment of the interim certificates was established, and no final account was before the court. The applicant failed to raise any substantive error or misdirection in the judgment. The court concluded that the appeal would not have reasonable prospects of success and dismissed the application for leave to appeal.

Citation
[2025] ZAGPPHC 506
Parties
Applicant: Housing Development Agency; Respondent: Khavhakone Construction Group (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
16 May 2025
Case Number
22632/2022
Procedural Posture
Leave to Appeal / Application for Leave to Appeal to the Full Court or Supreme Court of Appeal
Outcome
Application for leave to appeal dismissed with costs.
Judges
Retief
Legal Topics
Leave to Appeal Threshold, Interim Payment Certificates, Service Level Agreement, Contract Termination
Civil Procedure Commercial and Corporate Leave to Appeal Threshold Interim Payment Certificates Service Level Agreement Contract Termination

Case Brief

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Parties

Housing Development Agency

Applicant

Khavhakone Construction Group (Pty) Ltd

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal to the Full Court or Supreme Court of Appeal

Legal Issues

  1. 1 Whether the applicant has reasonable prospects of success on appeal against the judgment ordering payment of interim certificates IPC25 and IPC26.
  2. 2 Whether the court erred by disregarding the applicant's pleaded defence regarding the validity of IPC25 and IPC26 based on contract valuation.
  3. 3 Whether the respondent was entitled to payment of interim certificates absent a final account and to terminate the SLA.

Ratio Decidendi

The court found that the applicant's defence regarding the invalidity of IPC25 and IPC26 was properly considered in light of the Arbitrator's interim award and the common cause facts. The contract was confirmed as a lump sum contract, and the valuation method for interim certificates did not alter its nature. The respondent's entitlement to payment of the interim certificates was established, and no final account was before the court. The applicant failed to raise any substantive error or misdirection in the judgment. The court concluded that the appeal would not have reasonable prospects of success and dismissed the application for leave to appeal.

Court Disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs, taxed on scale B.