Zeus Shuttles and Coaches (Pty) Ltd and Another v Mangaung Metropolitan Municipality (5090/2023) [2024] ZAFSHC 156 (23 May 2024)

Zeus Shuttles and Coaches (Pty) Ltd and Another v Mangaung Metropolitan Municipality (5090/2023) [2024] ZAFSHC 156 (23 May 2024)

The court found that the Municipality's rights and obligations may be affected by the relief sought in the main review proceedings, particularly given the Department's indication that future contracting authority for subsidised bus services may devolve to the Municipality. The correspondence and Record of Decision...

Source-derived case information.

Citation
[2024] ZAFSHC 156
Parties
Applicant: Zeus Shuttles and Coaches (Pty) Ltd; Applicant: Lungi and Sons Services (Pty) Limited; Respondent: Mangaung Metropolitan Municipality
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
23 May 2024
Case Number
5090/2023
Procedural Posture
Interlocutory Application / Joinder Application Prior to Main Review Proceedings
Outcome
Joinder application granted; Mangaung Metropolitan Municipality is joined as the Fifth Respondent in the main review proceedings. Costs awarded against the Municipality.
Judges
Van Rhyn
Legal Topics
Joinder of Parties, Promotion of Administrative Justice Act, Public Procurement, Municipal Powers, Preferential Procurement Policy Framework Act
Administrative Law Civil Procedure Joinder of Parties Promotion of Administrative Justice Act Public Procurement Municipal Powers Preferential Procurement Policy Framework Act

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Parties

Zeus Shuttles and Coaches (Pty) Ltd

Applicant

Lungi and Sons Services (Pty) Limited

Applicant

Mangaung Metropolitan Municipality

Respondent

Procedural Posture

Interlocutory Application / Joinder Application Prior to Main Review Proceedings

Legal Issues

  1. 1 Whether the Mangaung Metropolitan Municipality has a direct and substantial interest in the main review proceedings regarding the lawfulness of subsidised bus transport contracts.
  2. 2 Whether the Municipality should be joined as a respondent to ensure all parties with a legal interest are before the court.
  3. 3 Whether the relief sought in the review proceedings may affect the rights or obligations of the Municipality.

Ratio Decidendi

The court found that the Municipality's rights and obligations may be affected by the relief sought in the main review proceedings, particularly given the Department's indication that future contracting authority for subsidised bus services may devolve to the Municipality. The correspondence and Record of Decision show that the Department and Minister of Transport attribute delays in lawful procurement to municipal inaction, making the Municipality's participation necessary for a just resolution. The possibility of a legal interest, rather than its certainty, suffices for joinder. The Municipality has not waived its right to participate nor agreed to be bound by any order. Accordingly,...

Court Disposition

Joinder application granted; Mangaung Metropolitan Municipality is joined as the Fifth Respondent in the main review proceedings. Costs awarded against the Municipality.

Orders

  • The Respondent is joined as the Fifth Respondent in the main review proceedings under Case No 5090/2023.
  • The Applicants shall serve all affidavits and pleadings, including the Record of Decision, upon the Respondent within 10 days from the date of this order.