Vharanani Properties (Pty) Ltd v Member of the Executive Council, Department of Human Settlements, Gauteng Provincial Government (25110/2021) [2022] ZAGPPHC 388 (1 June 2022)

Vharanani Properties (Pty) Ltd v Member of the Executive Council, Department of Human Settlements, Gauteng Provincial Government (25110/2021) [2022] ZAGPPHC 388 (1 June 2022)

The court found that the applicant was entitled to payment of the amounts certified in payment certificates 273 and 295b, as the respondent failed to pay the certified amounts within the contractual period. The respondent's argument that the dispute should have been referred to adjudication was rejected, as no genuine dispute existed that required such referral. The evidence showed that the parties agreed to reduce the amount payable under certificate 273, and the respondent paid the reduced amount. However, the applicant remained entitled to interest on the late payment of R3,915,363.32 from the date of certification to the date of the correcting certificate. The claim for interest on...

Citation
[2022] ZAGPPHC 388
Parties
Applicant: Vharanani Properties (Pty) Ltd; Respondent: Member of the Executive Council, Department of Human Settlements, Gauteng Provincial Government
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
1 June 2022
Case Number
25110/2021
Procedural Posture
Civil Application / First Instance Judgment
Outcome
The application succeeds in part; payment of certified amounts is ordered, with interest and costs as specified. The issue of interest on R1,316,985.82 is referred to oral evidence.
Judges
E van der Schyff
Legal Topics
Construction Contracts, Liquid Documents, Interest on Late Payment, Dispute Resolution Clauses, Motion Proceedings
Commercial and Corporate Civil Procedure Construction Contracts Liquid Documents Interest on Late Payment Dispute Resolution Clauses Motion Proceedings

Case Brief

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Parties

Vharanani Properties (Pty) Ltd

Applicant

Member of the Executive Council, Department of Human Settlements, Gauteng Provincial Government

Respondent

Procedural Posture

Civil Application / First Instance Judgment

Legal Issues

  1. 1 Whether the respondent is liable to pay the amounts certified in payment certificates 273 and 295b.
  2. 2 Whether interest is payable on the certified amounts and from which dates.
  3. 3 Whether the dispute resolution clause in the contract precludes approaching the High Court before adjudication.

Ratio Decidendi

The court found that the applicant was entitled to payment of the amounts certified in payment certificates 273 and 295b, as the respondent failed to pay the certified amounts within the contractual period. The respondent's argument that the dispute should have been referred to adjudication was rejected, as no genuine dispute existed that required such referral. The evidence showed that the parties agreed to reduce the amount payable under certificate 273, and the respondent paid the reduced amount. However, the applicant remained entitled to interest on the late payment of R3,915,363.32 from the date of certification to the date of the correcting certificate. The claim for interest on...

Court Disposition

The application succeeds in part; payment of certified amounts is ordered, with interest and costs as specified. The issue of interest on R1,316,985.82 is referred to oral evidence.

Orders

  • The respondent is ordered to pay the applicant R1,316,985.82.
  • The claim for interest on R1,316,985.82 is separated and referred to oral evidence before Van der Schyff J.