South African Red Cross and Another v The National Minister of Finance and Others (47725/2015) [2016] ZAGPPHC 648 (22 July 2016)

South African Red Cross and Another v The National Minister of Finance and Others (47725/2015) [2016] ZAGPPHC 648 (22 July 2016)

The court found that the applicant had established a clear right to interim relief pending review of the cancellation of the contract. The cancellation was effected unilaterally by the Department following its own admitted error in the bidding process, raising questions about the lawfulness of the cancellation. The applicant demonstrated that the balance of convenience favoured it, as the impact of cancellation was serious and comprehensive, and it had no alternative remedy. The court was satisfied that the applicant would suffer irreparable harm if the relief was refused. The issue of whether the cancellation constituted administrative action and whether the contract was lawful would be...

Citation
[2016] ZAGPPHC 648
Parties
Applicant: South African Red Cross; Applicant: Air Mercy Service Trust; Respondent: The National Minister of Finance; Respondent: 12 Other Respondents
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 July 2016
Case Number
47725/2015
Procedural Posture
Urgent Application / Interim Interdict Pending Review
Outcome
Application for interim interdict granted pending review.
Judges
BAM
Legal Topics
Preferential Procurement Policy Framework Act, Interim Interdict, Review of Administrative Action, Unilateral Contract Cancellation
Administrative Law Civil Procedure Preferential Procurement Policy Framework Act Interim Interdict Review of Administrative Action Unilateral Contract Cancellation

Case Brief

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Parties

South African Red Cross

Applicant

Air Mercy Service Trust

Applicant

The National Minister of Finance

Respondent

12 Other Respondents

Respondent

Procedural Posture

Urgent Application / Interim Interdict Pending Review

Legal Issues

  1. 1 Whether the cancellation of Contract RT79-2015 by the National Treasury constitutes administrative action subject to review.
  2. 2 Whether the applicant has established urgency for interim relief.
  3. 3 Whether the applicant has a clear right to the relief sought.

Ratio Decidendi

The court found that the applicant had established a clear right to interim relief pending review of the cancellation of the contract. The cancellation was effected unilaterally by the Department following its own admitted error in the bidding process, raising questions about the lawfulness of the cancellation. The applicant demonstrated that the balance of convenience favoured it, as the impact of cancellation was serious and comprehensive, and it had no alternative remedy. The court was satisfied that the applicant would suffer irreparable harm if the relief was refused. The issue of whether the cancellation constituted administrative action and whether the contract was lawful would be...

Court Disposition

Application for interim interdict granted pending review.

Orders

  • The respondents are interdicted from implementing the cancellation of Contract RT79-2015 pending the outcome of the review application.
  • The applicant is to file and serve the review application within 15 days of this order.