KET Civils CC v Member of the Executive Committee: Police, Roads & Transport, Free State and Others (497/2022 & 820/2022) [2024] ZASCA 56 (19 April 2024)
The Supreme Court of Appeal found that the applicant had made out a proper case for reconsideration under section 17(2)(f) of the Superior Courts Act. The high court erred in dismissing the application for leave to appeal. The procurement process for the panel contracts was inconsistent with section 217 of the...
Source-derived case information.
- Citation
- [2024] ZASCA 56
- Parties
- Applicant: KET Civils CC; Respondent: The MEC: Police, Roads & Transport, Free State; Respondent: Nweti Construction (Pty) Ltd; Respondent: Down Touch (Pty) Ltd; Respondent: Raubex Nodoli Construction JV; Respondent: Tau Pele Construction (Pty) Ltd; Respondent: Sedtrade (Pty) Ltd
- Court
- Supreme Court of Appeal
- Jurisdiction
- South Africa
- Case Number
- 497/2022 & 820/2022
- Procedural Posture
- Leave to Appeal / Application for Reconsideration Under S 17(2)(f) of the Superior Courts Act
- Outcome
- Leave to appeal is granted. The appeal against the high court's dismissal of the application for leave to appeal is upheld. The procurement panel decision and resulting contracts are declared invalid but the invalidity is suspended until contract completion. Costs are awarded as specified.
- Judges
- Mocumie, Zondi, Nicholls
- Legal Topics
- Leave to Appeal, Review of Administrative Action, Constitutionality of Procurement, Superior Courts Act, Settlement Agreement as Order
Source-derived case record
Summary, issues, holding and outcome
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Parties
KET Civils CC
Applicant
The MEC: Police, Roads & Transport, Free State
Respondent
Nweti Construction (Pty) Ltd
Respondent
Down Touch (Pty) Ltd
Respondent
Raubex Nodoli Construction JV
Respondent
Tau Pele Construction (Pty) Ltd
Respondent
Sedtrade (Pty) Ltd
Respondent
Procedural Posture
Leave to Appeal / Application for Reconsideration Under S 17(2)(f) of the Superior Courts Act
Legal Issues
- 1 Whether a proper case for reconsideration under section 17(2)(f) of the Superior Courts Act is made out.
- 2 Whether the high court erred in dismissing the application for leave to appeal.
- 3 Whether a court may make a settlement agreement an order of court without hearing an interested party.
Ratio Decidendi
The Supreme Court of Appeal found that the applicant had made out a proper case for reconsideration under section 17(2)(f) of the Superior Courts Act. The high court erred in dismissing the application for leave to appeal. The procurement process for the panel contracts was inconsistent with section 217 of the Constitution and invalid to the extent of its inconsistency. However, the declaration of invalidity was suspended until the completion of the contracts to avoid disruption. The rights of KET Civils CC to pursue claims for payment under its contracts were preserved, and the dispute resolution mechanisms under the contracts would endure post-termination. The court emphasized that a...
Court Disposition
Leave to appeal is granted. The appeal against the high court's dismissal of the application for leave to appeal is upheld. The procurement panel decision and resulting contracts are declared invalid but the invalidity is suspended until contract completion. Costs are awarded as specified.
Orders
- Leave to appeal is granted.
- The appeal against the order of the high court dismissing the application for leave to appeal is set aside and substituted with an order granting leave to appeal.
Full Case Text
Judgment text and source record
52 paragraphs
THE SUPREME COURT OF APPEAL OF SOUTH AFRICA
Not reportable
Case no: 497/2022 & 820/2022
In the matter between
KET CIVILS CC APPLICANT
and
THE MEC: POLICE, ROADS
& TRANSPORT, FREE STATE FIRST
RESPONDENT
NWETI CONSTRUCTION (PTY) LTD SECOND RESPONDENT
DOWN TOUCH (PTY) LTD THIRD
RESPONDENT RAUBEX
NODOLI CONSTRUCTION JV FOURTH
RESPONDENT
TAU PELE CONSTRUCTION (PTY) LTD FIFTH RESPONDENT
SEDTRADE (PTY) LTD SIXTH
RESPONDENT
Neutral citation: KET Civils CC v The Member of the Executive Committee: Police, Roads & Transport, Free State and Others (497/2022 & 820/2022) [2024] ZASCA 56 (19 April 2024)
Coram: MOCUMIE ADP, ZONDI and NICHOLLS JJA
Heard: 15 February 2024
Delivered: This judgment was handed down electronically by circulation to the parties’ representatives by email, published on the Supreme Court of Appeal website, and released to SAFLII. The date and time for hand-down is deemed to be 11h00 on 19 April 2024
Summary: Civil procedure – Section 17(2)(f) of the Superior Courts Act 10 of 2013 – whether a proper case for reconsideration in terms of s 17(2)(f) is made out – a court may not make a settlement agreement an order of court without hearing an interested party.
ORDER
On appeal from: Free State Division of the High Court, Bloemfontein (Mhlambi J, sitting as a court of first instance):
1 Leave to appeal is granted.
2 The appeal against the order of the high court dismissing the application for leave to appeal is set aside and substituted with the following order:
‘(a) Leave to appeal is granted.
(b) Paragraphs 1 to 5 of the second merits order are set aside and replaced with the following order:
(i) An order reviewing and setting aside the decision of the first respondent, acting in his capacity as the accounting officer of the Department of Police, Roads & Transport, Free State, in appointing KET Civils CC and second to sixth respondents on the 21st of February 2019 in the panel PR&T/BID06/2018/19 for the upgrading, periodic routine and special maintenance of all the Free State roads for the Department of Police, Roads & Transport for the duration of 36 (thirty six) months and any contract made under this panel.
(ii) An order in terms of s 172(1)(a) of the Constitution of the Republic of South Africa, 1996 declaring that the conduct of the first respondent in constituting the panel as set out above is inconsistent with the provisions of s 217 of the Constitution and is invalid to the extent of its inconsistency.
(iii) An order in terms of s 172(1)(b)(ii) of the Constitution, suspending the declaration of invalidity of the contracts of the second to sixth respondents and emanating from the panel and any extensions thereunder until the said contracts are completed.
(iv) An order in terms of s 172(1)(b)(ii) of the Constitution, that the orders granted in paragraphs (i) and (ii) above shall not affect the rights of KET Civils CC to pursue any claims for payment emanating from its contract/s and any extensions thereunder. For the avoidance of any doubt, the dispute resolution mechanisms under the contracts shall endure post any termination of the contracts.’
3 The orders set out above are with effect from 29 April 2021.
4 The first respondent to pay the costs of the appeal, including the costs of the third to the fifth respondents up until 23 June 2023.
5 In relation to the costs which were incurred after 23 June 2023, each party is ordered to pay its own costs.
JUDGMENT
Mocumie ADP (Zondi and Nicholls JJA concurring)
[1] This is an application brought by KET Civils CC (KET) in terms of s 17(2)(f) of the Superior Courts Act 10 of 2013 (the Superior Courts Act) for the reconsideration of this Court’s order dismissing KET’s petition for leave to appeal. Thereafter, KET applied to the President of this Court, in terms of s 17(2)(f) of the Superior Courts Act for her reconsideration of their dismissal of its application. The President referred the reconsideration application for oral argument in terms of s 17(2)(d) of the Superior Courts Act.
[1] Liesching and Others v S and Another [2016] ZACC 41; 2017 (4) BCLR 454 (CC); 2017 (2) SACR 193 (CC).
[2] Ibid paras 55-56.
[3] See Department of Transport and Others v Tasima (Pty) Limited [2016] ZACC 39; 2017 (1) BCLR 1 (CC); 2017 (2) SA 622 (CC) (9 November 2016), Khumalo and Another v Member of the Executive Council for Education: KwaZulu Natal [2013] ZACC 49; 2014 (3) BCLR 333 (CC); (2014) 35 ILJ 613 (CC); 2014 (5) SA
579
Africa (Pty) Ltd [2017] ZACC 5; 2017 (6) BCLR 730 (CC); 2017 (4) SA 223 (CC) para 37 and State
Information Technology Agency SOC Limited v Gijima Holdings (Pty) Limited State Information Technology Agency SOC Limited v Gijima Holdings (Pty) Limited [2017] ZACC 40; 2018 (2) BCLR 240 (CC); 2018 (2)
SA 23 (CC) para 41.
[4] Rule 42(1)(b) empowers a court to amend/correct its order mero motu or if approached by any party on a patent error which does not affect the substance of the order and or judgment.
[5] Airports Company South Africa v Big Five Duty Free (Pty) Limited and Others [2018] ZACC 33; 2019 (2) BCLR 165 (CC); 2019 (5) SA 1 (CC) para 2.
[6] Buffalo City Metropolitan Municipality v Asla Construction (Pty) Limited [2019] ZACC 15; 2019 (6) BCLR 661 (CC); 2019 (4) SA 331 (CC) para 25.
[6] Buffalo City Metropolitan Municipality v Asla Construction (Pty) Limited [2019] ZACC 15; 2019 (6) BCLR
661 (CC); 2019 (4) SA 331 (CC) para 25.
[7] Ibid para 25.
[8] Eke v Parsons [2015] ZACC 30;2015(11) BCLR 1319 (CC); 2016 (3) SA 37 (CC).