Samonty Projects (Pty) Ltd v Persevcon Contractors (Pty) Ltd and Others (UM105/22) [2023] ZANWHC 222 (27 November 2023)

Samonty Projects (Pty) Ltd v Persevcon Contractors (Pty) Ltd and Others (UM105/22) [2023] ZANWHC 222 (27 November 2023)

The court found that the applicant was contractually entitled to payment of R652,310.37, representing 90% of the invoice amount paid by the Department of Rural Development to the first respondent. The respondents' refusal to pay, based on an alleged set-off and breach, was unsupported by evidence and amounted to unlawful self-help. The respondents failed to afford the applicant an opportunity to remedy any alleged breach, as required by the agreement, and the main contract with the department had not been terminated. The court held that the respondents could not lawfully withhold payment and confirmed the rule nisi, ordering immediate release of the funds to the applicant. Costs were...

Citation
[2023] ZANWHC 222
Parties
Applicant: Samonty Projects (Pty) Ltd; Respondent: Persevcon Contractors (Pty) Ltd; Respondent: Perseverance Madoda; Respondent: Department of Rural Development; Respondent: Standard Bank of South Africa; Respondent: FEM Plan (Pty) Ltd
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
27 November 2023
Case Number
UM105/22
Procedural Posture
Civil Application / Confirmation of Rule Nisi; Final Order Sought
Outcome
Application granted; rule nisi confirmed; immediate payment of R652,310.37 ordered; costs awarded against first and second respondents.
Judges
Mfenyana
Legal Topics
Interim Interdict, Self Help, Contractual Entitlement, Costs Award
Civil Procedure Commercial and Corporate Interim Interdict Self Help Contractual Entitlement Costs Award

Case Brief

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Parties

Samonty Projects (Pty) Ltd

Applicant

Persevcon Contractors (Pty) Ltd

Respondent

Perseverance Madoda

Respondent

Department of Rural Development

Respondent

Standard Bank of South Africa

Respondent

FEM Plan (Pty) Ltd

Respondent

Procedural Posture

Civil Application / Confirmation of Rule Nisi; Final Order Sought

Legal Issues

  1. 1 Whether the applicant is entitled to immediate payment of R652,310.37 held in the first respondent's bank account.
  2. 2 Whether the respondents' withholding of payment constitutes unlawful self-help.
  3. 3 Whether the respondents have a bona fide defence to the applicant's claim for payment.

Ratio Decidendi

The court found that the applicant was contractually entitled to payment of R652,310.37, representing 90% of the invoice amount paid by the Department of Rural Development to the first respondent. The respondents' refusal to pay, based on an alleged set-off and breach, was unsupported by evidence and amounted to unlawful self-help. The respondents failed to afford the applicant an opportunity to remedy any alleged breach, as required by the agreement, and the main contract with the department had not been terminated. The court held that the respondents could not lawfully withhold payment and confirmed the rule nisi, ordering immediate release of the funds to the applicant. Costs were...

Court Disposition

Application granted; rule nisi confirmed; immediate payment of R652,310.37 ordered; costs awarded against first and second respondents.

Orders

  • The fourth respondent is ordered to immediately release the amount of R652,310.37 currently held in the first respondent's bank account and pay it over to the applicant's account at Samonty Projects (Pty) Ltd, FNB Cheque account number: 6[...].
  • The rule nisi granted by this court on 1 June 2022 freezing an amount of R652,310.37 from the first respondent's bank account with account number: 3[...], held with the fourth respondent, is confirmed subject to order (1) above.