Matjhabeng Local Municipality v Phakama Security Services CC; In re: Phakama Security Services CC v Matjhabeng Local Municipality (3116/2015) [2016] ZAFSHC 136 (5 August 2016)

Matjhabeng Local Municipality v Phakama Security Services CC; In re: Phakama Security Services CC v Matjhabeng Local Municipality (3116/2015) [2016] ZAFSHC 136 (5 August 2016)

The court considered whether the applicant had established grounds for rescission of the order granted in favour of the respondent. It found that the applicant failed to provide a satisfactory explanation for its absence when the original order was made and did not demonstrate a bona fide defence to the respondent's claim for payment under the contract. The evidence showed that the respondent was appointed through a formal procurement process and continued to render services on a month-to-month basis with the knowledge and approval of the applicant's municipal officials. The agreement to pay increased fees in accordance with PSIRA and the Sectoral Determination was confirmed by meetings...

Citation
[2016] ZAFSHC 136
Parties
Applicant: Matjhabeng Local Municipality; Respondent: Phakama Security Services CC
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
5 August 2016
Case Number
3116/2015
Procedural Posture
Rescission Application / Application for Rescission of Judgment and Declaration of Contract Invalidity
Outcome
Application for rescission and declaration of invalidity dismissed.
Judges
Van Zyl
Legal Topics
Rescission of Judgment, Contract Validity, Sectoral Determination, Public Procurement
Civil Procedure Commercial and Corporate Rescission of Judgment Contract Validity Sectoral Determination Public Procurement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 4 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Matjhabeng Local Municipality

Applicant

Phakama Security Services CC

Respondent

Procedural Posture

Rescission Application / Application for Rescission of Judgment and Declaration of Contract Invalidity

Legal Issues

  1. 1 Whether the order granted on 6 August 2015 should be rescinded.
  2. 2 Whether the agreement set out in annexure 'KM5' is illegal and invalid.
  3. 3 Whether the applicant is obliged to pay increased fees in accordance with PSIRA and the Sectoral Determination.

Ratio Decidendi

The court considered whether the applicant had established grounds for rescission of the order granted in favour of the respondent. It found that the applicant failed to provide a satisfactory explanation for its absence when the original order was made and did not demonstrate a bona fide defence to the respondent's claim for payment under the contract. The evidence showed that the respondent was appointed through a formal procurement process and continued to render services on a month-to-month basis with the knowledge and approval of the applicant's municipal officials. The agreement to pay increased fees in accordance with PSIRA and the Sectoral Determination was confirmed by meetings...

Court Disposition

Application for rescission and declaration of invalidity dismissed.

Orders

  • The application for rescission of the order granted on 6 August 2015 is dismissed.
  • The application for a declaration that the agreement in annexure 'KM5' is illegal and invalid is dismissed.