Passenger Rail Agency of South Africa v Gastin (72799/16) [2017] ZAGPPHC 530 (17 July 2017)

Passenger Rail Agency of South Africa v Gastin (72799/16) [2017] ZAGPPHC 530 (17 July 2017)

The court found that the contract for professional services concluded between Montana and the respondent was unlawful and invalid from the outset. As a result, the contract was declared void ab initio and of no force and effect. The respondent was ordered to repay the sum received under the contract to the...

Source-derived case information.

Citation
[2017] ZAGPPHC 530
Parties
Applicant: Passenger Rail Agency of South Africa; Respondent: Fenton Gastin
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Case Number
72799/16
Procedural Posture
Civil Application / Final Order
Outcome
The contract was declared unlawful, invalid, void ab initio and of no force and effect. The respondent was ordered to pay the applicant R8,219,353.50 and costs.
Legal Topics
Contract Invalidity, Professional Services Agreement, Unlawful Contract, Restitution
Commercial and Corporate Contract Invalidity Professional Services Agreement Unlawful Contract Restitution

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Summary, issues, holding and outcome

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Parties

Passenger Rail Agency of South Africa

Applicant

Fenton Gastin

Respondent

Procedural Posture

Civil Application / Final Order

Legal Issues

  1. 1 Whether the contract for professional services between Montana and the respondent was lawful and valid.
  2. 2 Whether the respondent is liable to repay the sum received under the contract.

Ratio Decidendi

The court found that the contract for professional services concluded between Montana and the respondent was unlawful and invalid from the outset. As a result, the contract was declared void ab initio and of no force and effect. The respondent was ordered to repay the sum received under the contract to the applicant, as restitution is required when a contract is declared void and payments have been made thereunder.

Court Disposition

The contract was declared unlawful, invalid, void ab initio and of no force and effect. The respondent was ordered to pay the applicant R8,219,353.50 and costs.

Orders

  • The contract headed 'Professional services in respect of Finance and Strategic Advisory to PRASA Group' concluded on 30 September 2014 between Montana and the respondent is declared unlawful, invalid, void ab initio and of no force and effect.
  • The respondent is directed to pay to the applicant the sum of R8,219,353.50.