Maluti-A-Phofung Local Municipality v Kill Crime Security Service (Pty) Ltd and Others (Amended Order) (2237/2023) [2025] ZAFSHC 27 (6 February 2025)

Maluti-A-Phofung Local Municipality v Kill Crime Security Service (Pty) Ltd and Others (Amended Order) (2237/2023) [2025] ZAFSHC 27 (6 February 2025)

The court found that the amount stated in the original order was a typographical error and that the correct amount was R27 000 000.00. The court exercised its power under Rule 42(1)(b) to vary the order accordingly. Furthermore, the service level agreements and acknowledgment of debt between the applicant and first respondent were declared constitutionally invalid, as they did not comply with constitutional requirements. The applicant was granted leave to oppose the relief sought by the first respondent within five days. The first respondent was ordered to pay the costs of the application, including the costs of employing senior counsel, on the scale as between party and party (Scale C).

Citation
[2025] ZAFSHC 27
Parties
Applicant: Maluti-A-Phofung Local Municipality; Respondent: Kill Crime Security Service (Pty) Ltd; Respondent: First National Bank of South Africa Ltd; Respondent: Sheriff of Phuthaditjhaba High Court
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
6 February 2025
Case Number
2237/2023
Procedural Posture
Civil Application / Amended Order
Outcome
Order amended to correct the judgment amount; service level agreements and acknowledgment of debt declared constitutionally invalid; leave granted to applicant to oppose; costs awarded against first respondent.
Judges
Mhlambi
Legal Topics
Rescission of Judgment, Variation of Order, Service Level Agreement, Acknowledgment of Debt, Constitutional Invalidity, Costs Award
Civil Procedure Commercial and Corporate Constitutional Law Rescission of Judgment Variation of Order Service Level Agreement Acknowledgment of Debt Constitutional Invalidity +1 more

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Parties

Maluti-A-Phofung Local Municipality

Applicant

Kill Crime Security Service (Pty) Ltd

Respondent

First National Bank of South Africa Ltd

Respondent

Sheriff of Phuthaditjhaba High Court

Respondent

Procedural Posture

Civil Application / Amended Order

Legal Issues

  1. 1 Whether the default judgment amount was incorrectly recorded and requires correction.
  2. 2 Whether the service level agreements and acknowledgment of debt between the applicant and first respondent are constitutionally valid.
  3. 3 Whether the applicant should be granted leave to oppose the relief sought by the first respondent.

Ratio Decidendi

The court found that the amount stated in the original order was a typographical error and that the correct amount was R27 000 000.00. The court exercised its power under Rule 42(1)(b) to vary the order accordingly. Furthermore, the service level agreements and acknowledgment of debt between the applicant and first respondent were declared constitutionally invalid, as they did not comply with constitutional requirements. The applicant was granted leave to oppose the relief sought by the first respondent within five days. The first respondent was ordered to pay the costs of the application, including the costs of employing senior counsel, on the scale as between party and party (Scale C).

Court Disposition

Order amended to correct the judgment amount; service level agreements and acknowledgment of debt declared constitutionally invalid; leave granted to applicant to oppose; costs awarded against first respondent.

Orders

  • The default judgment granted by the Registrar of this Court on 15 March 2024 in the amount of R27 000 000.00 is rescinded.
  • The service level agreements entered into between the applicant and first respondent on 11 August 2020 and 8 December 2022, and the acknowledgment of debt entered into on 20 February 2023, are declared constitutionally invalid.