Case Law[2025] ZAGPPHC 136South Africa
Govan Mbeki Municipality v Bosch Munitech (Pty) Ltd (Leave to Appeal) (33425/2016) [2025] ZAGPPHC 136 (18 February 2025)
High Court of South Africa (Gauteng Division, Pretoria)
6 June 2024
Headnotes
(at par 2) that an Appellant faces a higher and stringent threshold in terms of section 17(1) of the Superior Courts Act than was the case in terms of the repealed Supreme Court Act, Act 59 of 1959.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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## Govan Mbeki Municipality v Bosch Munitech (Pty) Ltd (Leave to Appeal) (33425/2016) [2025] ZAGPPHC 136 (18 February 2025)
Govan Mbeki Municipality v Bosch Munitech (Pty) Ltd (Leave to Appeal) (33425/2016) [2025] ZAGPPHC 136 (18 February 2025)
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sino date 18 February 2025
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case Number: 33425/2016
(1)
REPORTABLE: No
(2)
OF INTEREST TO OTHERS JUDGES: No
(3)
REVISED: NO
(4)
DATE:
18 February
2025
(5)
SIGNATURE:
In
the matter between:
GOVAN
MBEKI MUNICIPALITY
Applicant
and
BOSCH
MUNITECH (PTY) LTD
Respondent
This judgment is issued
by the Judge whose name is reflected herein and is submitted
electronically to the parties/their legal representatives
by email.
The judgment is further uploaded to the electronic file of this
matter on CaseLines by the Judge or her Secretary. The
date of this
judgment is deemed to be 18 February 2025.
JUDGMENT
COLLIS
J:
INTRODUCTION
1.
This is an application for leave to appeal against the judgment and
order of this Court delivered on 6 June 2024.
[1]
2.
In its judgment, the Court found in favour of the plaintiff, Bosch
Munitech (Pty) Ltd (“Bosch”) and dismissed the
counterclaim of the defendant, Govan Mbeki Municipality (the
“Municipality”).
[2]
3.
Bosch Munitech (Pty) Ltd, instituted proceedings against the
Municipality, Govan Mbeki Municipality, seeking payment for services
allegedly rendered under a contract for the refurbishment of the
eMbalenhle Water Works. Bosch claimed an amount of R16,996,144.69,
together with interest. As mentioned, Bosch also instituted a claim
for loss of profits in the sum of R8 785 710,8, however it
abandoned
this claim during the proceedings.
4.
The Municipality's defence before this Court, was that no valid
contract existed between the parties, as the tender validity
period
had expired, and the necessary formalities for contract formation
were not complied with. Additionally, the Municipality
raised a
counter-claim for amounts paid to Bosch, which it contended were made
in error and without legal cause.
5.
The Municipality in its Application for Leave to Appeal raised
several grounds of appeal. On its behalf it was contended that
there
are reasonable prospects of success on appeal, as contemplated in
section 17(1)(a)(i)
of the
Superior Courts Act 10 of 2013
.
6.
In addition, the Municipality also contends that the matter raises
compelling legal and public interest issues warranting appellate
consideration under
section 17(1)(a)(ii).
The implications of the
High Court’s findings for the principle of legality,
accountability and fair administrative action
in municipal governance
extend beyond this case and thus demand careful review.
7.
The Applicant further contends that this appeal also raises issues of
national importance, particularly the necessity for adherence
to
tender validity periods, the role of competitive bidding in ensuring
fairness, transparency, and accountability, and the limitations
of
doctrines like estoppel and ostensible authority when applied to
organs of state. It is therefore contended that the issues
at the
heart of this case transcend the immediate interests of the parties
and have broader implications for the public procurement
framework in
South Africa.
8.
The Respondent opposes the Application for leave to appeal. On behalf
of the Respondent, it was submitted that the grounds of
appeal
advanced in the Applicant’s Notice of Intention to Apply for
Leave to Appeal are, in the main, aimed at establishing
that the
legality challenge launched by the Defendant has substance.
9.
The grounds of appeal however do not deal with is the crux of the
Court’s decision viz that whatever the merits of the
legality
challenge might be, the challenge cannot be entertained due to undue
delay and a failure to adduce any evidence with a
view to explain
same.
10.
Section 17(1) of the Superior Court Act provide that “Leave to
appeal may only be given where the judge or judges concerned
are of
the opinion that –
(a)
(i) the appeal would have a reasonable prospect of success;”
The
use of the word “would” have been found to have raised
the bar of the test that now has to be applied to the merits
of the
proposed appeal before leave should be granted.
[3]
11.
Leave to appeal should therefore only be granted when there is “a
sound, rational basis for the conclusion that there
are prospects of
success on appeal”.
[4]
12.
The Applicant having failed to adduce any evidence to explain such
prima facie undue delay before this Court, I cannot conclude,
that
the appeal would have a reasonable prospect of success.
13.
Consequently, the application for leave to appeal is refused with
costs, including costs of senior counsel on scale C.
COLLIS
J
JUDGE OF THE HIGH COURT,
GAUTENG DIVISION,
PRETORIA
APPEARANCES:
Counsel for the
Applicant:
Adv. F.W. BOTES SC
Adv. E. VAN AS
Instructing
Attorney:
CRONJÉ DE
WAAL-SKOSANA INC
Counsel for the
Respondent:
T.A.L.L. POTGIETER
SC
Instructing
Attorney:
FRIEDLAND
HART SOLOMON AND NICHOLS
Date of Hearing:
29 November 2024
Date of Judgment:
18 February 2025
[1]
Caselines
28-1: Notice of Application for Leave to Appeal.
[2]
Caselines
0069: Order per Judgment.
[3]
Erasmus,
ibid, footnote 3 in which the unreported decisions in the Land Court
and in The Acting National Director of Public Prosecution
v
Democratic Alliance GP Case No. 19577/2009 dated 24 June 2016 at par
25 are referred to. Vide also Notshokovu v S, unreported,
SCA
Case No. 157/2015 dated 7 September 2016, where it was held (at par
2) that an Appellant faces a higher and stringent threshold
in terms
of
section 17(1)
of the
Superior Courts Act than
was the case in
terms of the repealed Supreme Court Act, Act 59 of 1959.
[4]
Four
Wheel Drive Accessory Distributors CC v Rattan N.O. 2019 (3) 451
(SCA), p. 463, [34].
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