JL Excavators (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (27907/2018) [2018] ZAGPPHC 531 (13 June 2018)

JL Excavators (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (27907/2018) [2018] ZAGPPHC 531 (13 June 2018)

The court found that the first respondent had procured services from the fifth and sixth respondents in a manner that contravened section 217 of the Constitution, the PPPFA, and the Service Level Agreement. The municipality failed to approach higher-ranked tenderers, including the applicant, and placed orders in...

Source-derived case information.

Citation
[2018] ZAGPPHC 531
Parties
Applicant: JL Excavators (Pty) Ltd; Respondent: City of Tshwane Metropolitan Municipality; Respondent: Dr Moeketsi Mosola; Respondent: Musa Khumalo; Respondent: Velaphi Ngcobo; Respondent: Ubuntu Transport Logistics (Pty) Ltd; Respondent: X Moor Transport (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Case Number
27907/2018
Procedural Posture
Urgent Application / Final Determination of Urgent Interdict Application
Outcome
Application granted. Urgent interdict issued against the first respondent. Striking out application dismissed with costs.
Judges
Maier-Frawley
Legal Topics
Public Procurement, Preferential Procurement Policy Framework Act, Constitutional Procurement Principles, Mandatory Interdict, Service Level Agreement, Municipal Tender Award
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Preferential Procurement Policy Framework Act Constitutional Procurement Principles Mandatory Interdict Service Level Agreement +1 more

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Parties

JL Excavators (Pty) Ltd

Applicant

City of Tshwane Metropolitan Municipality

Respondent

Dr Moeketsi Mosola

Respondent

Musa Khumalo

Respondent

Velaphi Ngcobo

Respondent

Ubuntu Transport Logistics (Pty) Ltd

Respondent

X Moor Transport (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Final Determination of Urgent Interdict Application

  1. 1 Whether the first respondent procured goods and services in breach of section 217 of the Constitution and the Preferential Procurement Policy Framework Act.
  2. 2 Whether the first respondent failed to comply with the Service Level Agreement and the prescribed tender process.
  3. 3 Whether the applicant is entitled to urgent interdictory relief to prevent ongoing unlawful procurement.

Ratio Decidendi

The court found that the first respondent had procured services from the fifth and sixth respondents in a manner that contravened section 217 of the Constitution, the PPPFA, and the Service Level Agreement. The municipality failed to approach higher-ranked tenderers, including the applicant, and placed orders in excess of the tendered capacity of the fifth and sixth respondents, resulting in unnecessary expenditure and financial prejudice to the applicant. The court held that the applicant was entitled to urgent interdictory relief to prevent ongoing unlawful procurement. The objections on urgency and non-joinder were dismissed, as the relief sought did not prejudice other tenderers and...

Court Disposition

Application granted. Urgent interdict issued against the first respondent. Striking out application dismissed with costs.

Orders

  • The matter is declared urgent.
  • The first respondent is interdicted from issuing any purchase order to the fifth respondent for vehicles or machines in excess of the number tendered for by the fifth respondent in Tender 46.