Case Law[2022] ZAGPJHC 1014South Africa
Mombeeg (PTY) Limited v Eskom Rotek Industries SOC Limited (2021/15418) [2022] ZAGPJHC 1014 (15 December 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
15 December 2022
Headnotes
on 18 February 2021 at which the contract price and other issues were agreed to between the parties. The applicant completed the NEC contract received from the respondent a few days later and returned it to the respondent. Various amendments were required by the respondent. The applicant effected the amendments, signed the contract and returned it to the respondent. The respondent failed to sign the contract. [11] After various enquiries by the applicant for provision of the signed contract, the respondent on 2 March 2021 advised it that the respondent’s internal processes and approvals were still underway and feedback would be provided in due course.
Judgment
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## Mombeeg (PTY) Limited v Eskom Rotek Industries SOC Limited (2021/15418) [2022] ZAGPJHC 1014 (15 December 2022)
Mombeeg (PTY) Limited v Eskom Rotek Industries SOC Limited (2021/15418) [2022] ZAGPJHC 1014 (15 December 2022)
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sino date 15 December 2022
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NUMBER:
2021/15418
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
In
the matter between:
MOMBEEG (PTY) LIMITED
APPLICANT
AND
ESKOM
ROTEK INDUSTRIES SOC LIMITED
RESPONDENT
JUDGMENT
Delivered:
This judgment was handed down electronically by circulation to
the parties’ legal representatives by e-mail. The date and time
for hand-down is deemed to be 11h30 on the 15
th
of
December 2022.
DIPPENAAR
J
:
[1]
The application concerns review proceedings
under r 53 in which the applicant sought the setting aside of a
decision to disqualify
a responsive bid made by the applicant
pursuant to the respondent issuing an invitation to tender number
ERI/2020/BMS/07 to the
public on 22 July 2020 for the provision of
certain traffic management services for the daily operation of power
stations (“the
tender”).
[2]
The
applicant seeks final relief. It is well established that the
so-called Plascon Evans Rule
[1]
applies. The respondent put up a detailed version in response to the
applicants’ averments and its version cannot in my view
be
rejected as palpably false or untenable
[2]
.
Neither party sought the referral of the application to oral evidence
and the application is to be determined on the papers.
[3]
The relevant factual matrix is by and large
not contentious. It was common cause that the tender process was
governed by Eskom’s
Standard Conditions of Tender, except where
there was a conflict between the Tender Data and the Standard Terms
and Conditions
in which event the Tender Data would take precedence.
[4]
It
was further undisputed that the tender process was regulated and
governed by the tenets of the Public Finance Management Act
(“the
PFMA”)
[3]
, the
Preferential Procurement Policy Framework Act
[4]
(“the PPPFA”), the Preferential Procurement
Regulations
[5]
,(“the PPPF
Regulations”), the Broad-Based Black Economic Empowerment
Act
[6]
(“the B-BBEE Act”)
and the Framework for Measuring Broad-Based Black Economic
Empowerment. Under s 9 of the Broad Based
Economic Empowerment Act,
the Minister of Trade and Industry published the Amended Code series
000, Statement 000: Codes of Good
Practice on Broad Based Black
Economic Empowerment
[7]
.
[5]
The mandatory pre-qualification criteria of
the tender were: (i) the tenderer had to have a minimum B-BBEE status
level 1; (ii)
the tenderer had to be an Exempted Micro Enterprise
(“EME”); and (iii) A minimum of 30% of subcontractors to
be used
had to be EME’s or Qualifying Small Enterprises
(“QSE’s”) of which 51% had to be owned by black
people
living in rural and undeveloped areas or townships.
[6]
It
was not disputed that in terms of the “Tender Returnables”,
proof was required that the tenderer is a B-BBEE status
level
contributor
[8]
. This required
proof of: (a) the B-BBEE status level certificate issued by an
authorised body or person; or (b) a sworn affidavit
as prescribed by
the B-BBEE Codes of Good Practice; (c) any requirement prescribed in
terms of the B-BBEE Act. If proof of B-BBEE
status level contributor
was required for pre-qualification purposes in terms of PPPF
regulations and was either not submitted
by the tender submission
deadline or deemed invalid; the respective tender must be
disqualified.
[7]
A further Tender Returnable was a completed
NEC service contract and pricing schedule and data.
[8]
In
terms of the Conditions of Tender, (i) the respondent was entitled to
cancel the tender process at any time prior to finalisation
of the
NEC contract
[9]
; (ii) the
respondent was entitled to obtain clarification of any matter in the
tender which may not be clear or could give rise
to an ambiguity in
that contract arising from the tender
[10]
;
(iii) the respondent was entitled to score the B-BBEE status of the
tender based on the certificate or affidavit which was provided
[11]
;
(iv) the respondent would award the tender only once approval had
been granted by the adjudication authority by publishing it
on
Eskom’s tender bulletin and NT e-Tender Portal.
[12]
[9]
The applicant submitted a bid during the
tender validity period in August 2020. The total budget for the
tender was some R178 Million.
The contract price stipulated in the
applicant’s tender was for some R133 million The tender
validity period was twice extended
by agreement between the parties
as the evaluation process took longer than anticipated, ultimately to
18 February 2022. The applicant
stated that it satisfied the B-BBEE
requirements and as proof of compliance submitted two B-BBEE
certificates issued by the Companies
& Intellectual Property
Commission for EME’s. The certificates reflected the
applicant’s registration date as 20
February 2020 with a single
shareholder, Ms Moremedi. The second B-BBEE certificate indicated
that the applicant was an EME and
B-BBEE Level 1 contributor.
[10]
Subsequent to submission of the applicant’s
bid, the applicant was invited to a virtual meeting on 16 February
2021 by representatives
of the respondent at which information was
requested which applicant provided. A further meeting was held on 18
February 2021 at
which the contract price and other issues were
agreed to between the parties. The applicant completed the NEC
contract received
from the respondent a few days later and returned
it to the respondent. Various amendments were required by the
respondent. The
applicant effected the amendments, signed the
contract and returned it to the respondent. The respondent failed to
sign the contract.
[11]
After various enquiries by the applicant
for provision of the signed contract, the respondent on 2 March 2021
advised it that the
respondent’s internal processes and
approvals were still underway and feedback would be provided in due
course.
[12]
During a virtual meeting held on 9 March
2021, issues were raised regarding the applicant’s failure to
submit a Generic Scorecard.
According to the respondent, this was a
clarification meeting, held after it was discovered during the tender
evaluation process
by Eskom’s Supplier Development Localisation
and Industrialisation Department that a Generic Scorecard did not
accompany
the applicant’s bid, meaning that there was an issue
with the applicant’s B-BBEE status as the tender was for an
amount
in excess of R50 million. That issue lies at the centre of the
dispute between the parties.
[13]
The dispute between the parties centered
around what occurred at the meeting of 9 March 2021 and whether the
respondent disqualified
the applicant’s bid at that meeting, as
contended by the applicant.
[14]
The applicant’s case was that it was
informed that the respondent had decided to disqualify the applicant
as it was a start-up
company and should have used a different
certificate in its bid. The applicant was informed that the
respondent on this basis intended
to award the tender to the second
successful bidder.
[15]
According to the respondent on the other
hand, the issues surrounding the Generic Scorecard were merely
discussed and clarification
requested. The applicant had not
submitted a Generic Scorecard. It was agreed that the applicant would
consult its attorneys and
make representations as to why it should
not disqualify the tender for failing to submit the required
Scorecard.
[16]
The applicant’s attorneys on 12 March
2021 accused the respondent of unlawfully disqualifying the
applicant’s bid and
demanded that the respondent countersign
the NEC contract, failing which it would launch urgent interdict
proceedings, interdicting
the award of the tender to any other party
pending the review of its decision.
[17]
In response, the stance adopted by the
respondent by way of letter from its legal department dated 23 March
2021, was that it would
not be coerced into entering agreements with
tenderers if there was non-compliance and submissions inconsistent
with legislation
and procurement supply chain processes. It contended
that the applicant’s demand was premature. The respondent
advised the
applicant that it had not decided to award or disqualify
the applicant’s bid. The applicant was also advised that the
applicant
is a start-up enterprise who submitted its B-BBEE
certificate classifying it as an EME for a tender in excess of the
threshold
for EME’s as a Generic Scorecard should be submitted
for contracts in excess of R50 million. The respondent advised that
it appeared that the applicant had not complied with the legislative
requirements of the PPPFA, the PPPF Regulations and the BBBEE
Act.
The respondent invoked regulation 14 of the PPPF Regulations in terms
of which the applicant was afforded 14 days to make
representations
regarding its failure to comply with the relevant procurement
legislation and to provide reasons why the tender
should not be
disqualified. The applicant was also provided with the opportunity to
submit a Generic Scorecard.
[18]
The applicant formally declined to make any
representations by way of letter of its attorneys on 23 March 2021
and advised that
preparation of application papers had commenced. The
applicant further refused the respondent’s proposal in a
further email
“to deal with the matter in a cost-effective and
efficient manner”.
[19]
A
few days later the applicant launched the review proceedings to set
aside the decision by the respondent to disqualify the applicant’s
bid from the tender, with costs. The applicant’s case was that
the respondent on 9 March 2021 unlawfully took a decision
to
disqualify its bid for the tender. Relying on the Promotion of
Administrative Justice Act
[13]
(“PAJA”), it contended that the said decision was
procedurally unfair, was materially influenced by an error of fact
and law and was taken because irrelevant considerations were taken
into account, and was liable to be reviewed and set aside.
[20]
The respondent’s case was that its
procurement team and approval committees had not finally adjudicated
upon the tender and
the respondent had not taken any decision to
disqualify the bid submitted by the applicant. According to the
respondent, the tender
committee has the authority to either award
the tender or disqualify the bid and neither of its representatives
present at the
meeting had such authority. In terms of the agreed
process, tenderers are not advised verbally of the award or
disqualification
but through a proper written notice. It disputed
that tenderers are advised verbally of the award or disqualification
of their
bids. On that basis the respondent disputed that there was
any administrative decision or action which could be reviewed under
the PAJA. In its answering papers, the respondent averred that to
date the tender has not been awarded to anyone and no notice of
the
award of tender has been issued or published as provided for in the
Conditions of Tender.
[21]
The respondent relied on the Standard
Conditions of Tender which entitled the respondent to seek
clarification from the applicant
about its status and failure to
submit the Generic Scorecard, which it contended was what occurred at
the 9 March 2021 meeting.
Issues has also arisen regarding the
absence of audited financial statements, given that there was no
statement that the applicant
was a start- up company. That issue is
not relevant to the present application.
[22]
According to the respondent, the meeting
was adjourned on the basis that the applicant would make
representations concerning the
issues that were raised at the
meeting. The respondent contended that the applicant’s conduct,
pursuant to it invoking the
powers afforded by regulation 14 of the
PPPF Regulations, constituted a repudiation of the tender and its
requirements which it
accepted in its answering papers. It argued
that the review application was premature and related to a decision
which was never
taken and should be dismissed together with a
punitive costs order.
[23]
In reply, the applicant persisted with the
version that the respondent had disqualified its bid. It was
contended that the respondent’s
stance that the applicant’s
failure to submit a generic scorecard entitled it to disqualify the
applicant was simply untrue.
[24]
After the delivery of affidavits, including
supplementary affidavits and the filing of heads of argument by both
parties, the applicant
amended its notice of motion on 27 June 2022
and delivered a further affidavit under r 53(4).
[25]
In its amended notice of motion and further
affidavit, the applicant completely changed tack. It now sought
declaratory relief that
the tender was awarded to the applicant,
alternatively an order setting aside the respondent’s decision
not to countersign
the NEC contract contemplated in the respondent’s
document titled “Approval of a negotiated outcome and Feedback
Report”
dated 22 February 2021 (“the approval”),
and an order directing the respondent to sign the said contract. The
costs
of two counsel were sought.
[26]
Its new case was that the respondent had
awarded the tender to it and notified it of its decision on 16
February 2021. In supplementary
heads of argument, the applicant
conceded that the respondent had not made a decision to disqualify
its bid.
[27]
The respondent objected to the procedure
adopted by the applicant on the basis that no condonation application
was launched and
the procedure in r 28 should have been followed. It
argued that the supplementary affidavit should be ignored as a
nullity and
that it was prejudiced as it did not have an opportunity
to respond to the applicant’s new case. It further argued that
the
new case in any event lacked merit.
[28]
The applicant relied on r 53(4) which
entitled it to amend its relief and deliver a supplementary affidavit
after provision of the
record by the respondent. It further argued
that the respondent had delivered no affidavit in response to the new
evidence raised
for a period of some three months and did not serve
any notice of irregular proceedings under r 30.
[29]
Whilst r 53(4) does not require any prior
notice of amendment under r 28, the rule expressly affords an
applicant a period of ten
days to amend, add to or vary its notice of
motion and supplementary affidavit. The applicant sought to do so,
more than a year
after the delivery of the record on 6 May 2021.
[30]
In such circumstances it is clear that the
applicant should at least have sought condonation for the late
delivery of the amendment
and supplementary affidavit. No formal
condonation application was brought, although a few paragraphs of the
supplementary affidavit
were dedicated to condonation.
[31]
The
principles pertaining to condonation under r 27 (3) are trite
[14]
and require a proper explanation to be given for the delay as well as
facts which illustrate that the applicant’s claim is
clearly
not unfounded.
[32]
In its r 53(4) affidavit, the only basis
advanced by the applicant for condonation was that “due to an
oversight on the part
of its legal representatives”, two
documents forming part of the record and referred to in the said
affidavit, were not identified
in the record. These documents were
only identified on 15 July 2022 as being important to the real
dispute between the parties
during preparation for the hearing which
was to have taken place on 25 July 2022. It contended that there was
no prejudice to the
respondent as there was sufficient time for it to
file an affidavit responding to the allegations prior to the matter
being enrolled
for hearing. The applicant did not seek to make out
any case why it should be afforded the opportunity to adduce further
evidence
at this late stage, given that it was in possession of such
evidence even before delivering its first supplementary affidavit.
[33]
Although
the explanation provided by the applicant is in broad and laconic
terms, there was sufficient time for the respondent to
deliver an
affidavit in response to obviate the prejudice contended for by it.
Although such prejudice was alleged in bald terms,
no particularity
or primary facts were provided in support of such conclusion. The
respondent elected not to deliver any supplementary
affidavit and did
not object to the filing of the r 53(4) notice or take any steps to
have them set aside as an irregular step
[15]
.
Neither party sought a postponement or an opportunity to deliver
further affidavits.
[34]
Adopting
a strict approach to the trite principles applicable to the granting
of condonation, I am not persuaded that the applicant
has illustrated
good cause for condonation. However, even if a benevolent approach
were to be adopted in favour of the applicant
in the interests of
justice
[16]
, the prospects of
success and the importance of the case are relevant factors.
[35]
I turn to consider the applicant’s
prospects of success. The respondent’s arguments are predicated
on the contention
that the applicant’s new case in any event
does not assist the applicant and must fail on its merits. For the
reasons that
follow, I agree with the respondent.
[36]
The
new case advanced by the applicant is in conflict with the case made
out in its founding papers. Whereas its original case was
premised on
the contention that the respondent had made a decision to disqualify
the applicant’s bid, it now contended the
opposite and that the
respondent had awarded the tender to the applicant. These cases are
mutually destructive. It must be borne
in mind that a party must make
out its case in its founding papers
[17]
.
No attempt was made by the applicant to explain the contradictory
versions.
[37]
The applicant’s contention that its
new version is unchallenged, given that the respondent did not
deliver an affidavit in
response, does not in my view bear scrutiny.
The answering affidavits delivered by the respondent and the facts
set out therein,
cannot be ignored. Given that the applicant seeks
final relief, the Plascon Evans rule referred to earlier, must be
applied. I
further do not agree that the common cause facts relied on
by the applicant support a finding that the contract was awarded to
the applicant. At best they illustrate that the commercial terms of
the NEC contract were agreed on between the parties.
[38]
The high water mark of the applicant’s
new case is the reliance placed on certain internal documents of the
respondent allegedly
indicating that the respondent in fact made the
decision to award the tender to the applicant. It is contended that
it was for
this reason that the applicant entered into extensive
contract negotiations with the applicant. It is then baldly contended
that
the respondent communicated the decision to award the tender to
the applicant during the meeting of 16 February 2021. Central to
version, is the contention that the applicant was the highest scoring
bidder
[39]
Reliance is placed on an internal feedback
document addressed to the chairman of the respondent’s
Divisional Tender Committee
dated 22 February 2021, from Mr Mabija
BMS Procurement, containing a recommendation. The document is headed
“Approval of
a negotiated outcome and feedback report”.
The report cannot be viewed in isolation must be considered in the
context of
the conditions of tender and process agreed to between the
parties.
[40]
On
a purposive, linguistic and contextual reading of the document
[18]
,
seen in the context of the tender returnables, a concluded NEC
agreement was one of those returnables. The approval document itself
does not in my view constitute proof that the tender was indeed
awarded to the applicant.
[41]
The document does no more than recommend
that a contract be awarded to the applicant based on the financial
evaluation of the negotiated
contract price based on a commercial
evaluation of the applicant’s tender. In its terms, the report
reflects the results
of a process in accordance with a mandate
provided by the divisional tender committee to negotiate and conclude
a contract and
requests acceptance of the feedback. The use of the
phrase “a contract was accordingly awarded” does no more
than to
confirm that the commercial terms of a proposed contract were
negotiated and agreed upon between the parties.
[42]
No evidence was provided by the applicant
that the tender was in fact awarded. The respondent’s version
expressly disavowes
that this occurred. The applicant’s new
version entirely disregards the terms and conditions of the tender
agreed upon between
the parties and the respondent’s version
that the applicant’s tender was still being evaluated by the
different levels
of authority which were required before the tender
could be awarded. If further entirely ignores the intervening
compliance issue
pertaining to the Generic Scorecard raised at the
meeting of 9 March 2021.
[43]
I
agree with the respondent that the applicant’s version that
contract negotiations could only have happened after the tender
was
awarded to it, is flawed. In terms of the specific tender processes
agreed upon between the parties, the tender would be awarded
by the
issuing of a notice of award of tender and publication. It was
undisputed that this never happened. The tender would only
be awarded
after a final version of the NEC contract was successfully
negotiated, accepted and signed by the respondent
[19]
It was also common cause that this never occurred. On a proper
interpretation of the NEC contract, a tender would only be awarded
after a final version of the NEC contract was successfully
negotiated, accepted and signed by the representatives of the
respondent.
[44]
There is no evidence that the respondent’s
adjudication authority finally approved the award of the tender to
the applicant.
The evidence established that it was still finalising
and considering the applicant’s offer and was finalising its
internal
processes. From the applicants’ founding affidavit it
is clear that it never understood the position to be that it was
awarded
the tender, as the very purpose of the review application was
to review and set aside the disqualification decision.
[45]
On the applicant’s own version, the
purpose of the meeting of 16 February 2021 was to negotiate certain
terms of the NEC contract,
pursuant to which additional information
was requested and provided and a further meeting was held on 18
February 2021 to further
the negotiations. The tender validity period
was also after that meeting extended to 18 February 2022. These facts
militate against
the awarding of the tender to the applicant on 16
February 2021.
[46]
Once seen in context of the various
documents and facts the applicant’s version that it was awarded
the tender simply does
not pass muster. There is thus no cogent
factual or legal basis established for the declaratory relief sought
[47]
In my view, the applicant falls far short
of the mark in proving that the agreement was awarded to it, much
less on 16 February
2021 as alleged, given the undisputed chronology
of events and the applicant’s own version of what transpired at
the meeting
of 16 February 2021. The version that the applicant was
notified of the alleged decision on 16 February 2021 is not supported
by
the evidence.
[48]
The applicant further manifestly failed to
make out any case that any decision made by the respondent not to
countersign the NEC
agreement fell to be reviewed and set aside under
PAJA. It has not established that any such decision is unlawful,
given the relevant
statutory provisions.
[49]
The PPPFA was adopted to give effect to s
217 of the Constitution and to establish a preferential procurement
framework. The PPPF
Regulations, adopted in terms of s 5 of the
PPPFA, contain the methods for evaluating tenders and determining
whether tenders meet
black empowerment objectives in terms of the
BBBEE Act.
[50]
Regulation
7 of the PPPF Regulations
[20]
contains the formula to be used to calculate the points out of 90 for
price in respect of a tender with a Rand value in excess
of R50
million. It applies in the present instance considering the value of
the contract. Under Regulation 7(4) a tenderer failing
to submit
proof of B-BBEE status level of contribution or is a non-compliant
contributor to B-BBEE may not be disqualified, but-(a)
may only score
points out of 90 for price; and (b) scores 0 points out of 10 for
B-BBEE.
[51]
Regulations 4 and 8 of the Amended Code
series 000, Statement 000: Codes of Good Practice on Broad Based
Black Economic Empowerment,
issued under s 9 of the BBEE Act, deal
with the requirements to qualify as an EME. Regulation 4.2 provides
that start-up enterprises
are ordinarily regarded as EME’s,
unless tendering for a contract in excess of the thresholds for
EME’s, in which case
the corresponding Scorecard will apply.
[52]
Regulation 8 deals with the Generic
Scorecard and determines the criteria for determining the ownership
and management and control
elements of enterprises submitting
tenders. Regulation 9 represents the B-BBEE Generic Scorecard and
identifies the elements.
[53]
The certificate from the Companies and
Intellectual Property Commission submitted by the applicant does not
assist it because the
value of the tender is more than R50 million.
The certificate reflected that based on available information the
applicant’s
annual turnover was less than R10 million and
qualifies as a EME.
[54]
The applicant did not dispute that it did
not submit the Generic Scorecard. Instead, it argued that its failure
to do so is not
fatal because tenderers who do not submit B-BBEE
status level verification certificates may not be disqualified from
the tendering
process. It was contended that “they simply score
points out of 90 or 80 for price only and zero points out of 10 or 20
for
BBEE.
[55]
The applicant’s version fundamentally
ignores its failure to comply with the B-BBEE requirements of tender.
It is not for
present purposes necessary to make a definitive
determination on the outcome of the applicant’s failure to
submit a Generic
Scorecard. For present purposes it is sufficient to
conclude that the issues raised by the respondent cannot be said to
be irrelevant,
or based on a material error of fact or law.
[56]
Moreover, the applicant’s reliance on
it being the alleged highest scoring bidder, is undermined by its own
version that it
is willing to accept being scored 0 out of 10 points
for B-BBEE. If that score is accepted, the applicant may well not be
the highest
scoring bidder.
[57]
No evidence was presented that the
respondent was not entitled to raise the issue pertaining to the
Generic Scorecard. In terms
of the agreed process, the respondent was
entitled to seek clarification and verification, which on its
version, it did.
[58]
Considering the facts, it cannot be
concluded that the respondent was actuated by any error in law or in
fact by seeking clarification
from the applicant as to its B-BBEE
status. More importantly, seeking clarification does not constitute a
decision for purposes
of a review under PAJA.
[59]
The fundamental difficulty that the
applicant cannot overcome is that it ignores non- compliance with the
generic scorecard requirement
if it tendered for the contract or
seeking any other economic activity covered by s 10 of the PPPFA. A
court cannot sanction, by
declaring the tender was rightfully awarded
to the applicant, non-compliance with statutory requirements.
[60]
Another inescapable hurdle that the
applicant cannot overcome is that it refused to make representations
pursuant to the respondent’s
invocation of Regulation 14 of the
PPPF Regulations. Given the undisputed facts, the respondent was
entitled to invoke regulation
14 of the PPPF regulations, as at least
the Generic Scorecard issue was one which may effect or has effected
the evaluation of
its tender.
[61]
The applicant cannot escape the
consequences of its failure to submit the Generic Scorecard and its
obligations to answer the issues
which have arisen. Seeking to avoid
these consequences by obtaining an order forcing the respondent to
sign the NEC contract under
these circumstances, is entirely contrary
to the terms and conditions of the tender and contrary to the
relevant statutory provisions.
[62]
Any
award of the contract to the applicant, would be effected in
violation of the applicable regulations. The respondent squarely
impugned the validity of the right the applicant sought to
preserve
[21]
. In addition to
the facts not supporting the applicant’s contentions, the
granting of the declaratory relief would effectively
be sanctioning
an irregularity. Such an approach can and should not be countenanced
by a court.
[63]
The present stance adopted by the applicant
further ignores its repudiation of the tender by refusing to make
submissions once the
respondent invoked Regulation 14 of the PPPF
Regulations, seeking clarification. Only after its repudiation was
accepted by the
respondent in its answering papers, did the applicant
decide to change tack and ignore these consequences.
[64]
The
applicant placed reliance on
Inventiva
Power Minerals (Pty) Ltd and Another v Eskom Holdings SOC Limited and
Another
[22]
(“Inventiva”)
in
support of the contention that the relief sought was competent
.
The
facts are however distinguishable and for the reasons advanced, the
relief sought should not be granted.
[65]
Considering all the facts, I am not
persuaded to exercise the discretion afforded to admit the late
amendment and supplementary
affidavit, given that the applicant’s
new case has no prospects of success. Even if condonation were to
have been granted,
for the reasons provided, I am not persuaded that
the applicant has made out a case for the relief sought.
[66]
It follows that the application must fail.
There is no reason to deviate from the normal principle that costs
follow the result.
[67]
The
respondent sought a punitive costs order, contending that the
application was vexatious and put it through trouble and expense
which it ought not to bear. Considering the facts, and the
applicant’s conduct in relation to the matter, I am persuaded
that such a costs order should be granted
[23]
.
[68]
I grant the following order:
[69]
The application is dismissed with costs on
the scale as between attorney and client.
EF
DIPPENAAR
JUDGE
OF THE HIGH COURT JOHANNESBURG
APPEARANCES
DATE
OF HEARING
: 04 October 2022
DATE
OF JUDGMENT
: 15 December 2022
APPLICANT’S
COUNSEL
: Adv. H.P. Van Nieuwenhuizen
Adv NS Nxumalo
APPLICANT’S
ATTORNEYS
: Tshabalala Attorneys, Notaries & Conveyancers
RESPONDENT’S
COUNSEL
: Adv. PL Uys
RESPONDENT’S
ATTORNEYS
: Gildenhuys Malatji Inc.
[1]
Plascon Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA
623
(A) 634E-635C; National Director Public Prosecutions v Zuma 2009
(2) SA 277 (SCA)
[2]
JW Wightman
(Pty)
Ltd v Headfour (Pty) Ltd
[2008] ZASCA 6
;
2008 (3) SA 371(SCA)(
“Wightman”)
[3]
56 of 1999
[4]
5 of 2000
[5]
2017
[6]
53 of 2003
[7]
GG no 42496 dated 31 May 2019
[8]
Clause 1.3
[9]
Clause 1.6.1
[10]
Clause 3.8
[11]
Clause 1.3
[12]
Clause 3.20
[13]
3 of 2000
[14]
Silber v Ozen Wholesalers (Pty) Ltd
1954 (2) SA 345
(A); Du Plooy v
Anwes Motors (Edms) Bpk
1983 (4) SA 212
(O) at 217H
[15]
Pangbourne Properties Ltd v Pulse Moving CC and Another 2013 (3) SA
140 (GSJ)
[16]
Ferris v FirstRand Bank Ltd
2014 (3) SA 39
(CC) at 43G-44A and the
authorities cited therein.
[17]
Hart v Pinetown Drive-In Cinema (Pty) Ltd
1972 (1) SA 464
D
[18]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012
(4) SA 593
(SCA) paras [18]-[19] at 603E-605B
[19]
Sections
C1.01 and C1.02 of contract in terms of which the offer of the
applicant may be accepted by the respondent by signing
the document
and returning it to the applicant before the end of the tender
validity period stated in the tender data. By signing
the agreement,
the respondent accepts the applicant’s offer on the terms and
conditions contained in the contract
[20]
Adopted under s5 of the Prefential Procurement Policy Framework Act
[21]
Department of Transport and Others v Tasima (Pty) Ltd
[2016] ZACC 39
(9 November 2016) paras [37], [42]
[22]
(16202/19) [2020] ZAGPPHC 180 (25 May 2020)
[23]
Lemore
v Mutual Credit Association and Another
1961 (1) SA 195
(C) 199 G-H; Nel v Waterberg Landbouers
Ko-operatiewe vereening
1946 AD 597
at 607
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