Case Law[2022] ZAGPPHC 934South Africa
Kgwerano Solutions (Pty) Limited v Transnet SOC Limited and Another (22782/21) [2022] ZAGPPHC 934 (30 November 2022)
Headnotes
between the parties herein and discussed how the tender was to be executed.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Kgwerano Solutions (Pty) Limited v Transnet SOC Limited and Another (22782/21) [2022] ZAGPPHC 934 (30 November 2022)
Kgwerano Solutions (Pty) Limited v Transnet SOC Limited and Another (22782/21) [2022] ZAGPPHC 934 (30 November 2022)
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sino date 30 November 2022
IN THE HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE NO:
22782/21
REPORTABLE: NO
OF INTEREST TO
OTHER JUDGES: NO
30 NOVEMBER 2022
In the matter
between:
KGWERANO
SOLUTIONS (PTY) LIMITED
Applicant
AND
TRANSNET SOC
LIMITED First
Respondent
NCUBE
INCORPORATED
Second
Respondent
JUDGMENT
[1]
This is an application which the applicant seeks the following
relief: -
That this court
should direct the second respondent to rectify, clarify and or reword
its awards dated the 15 August 2019 by removing
any ambiguity and /
or errors contained therein in order to meaningfully and accurately
define the recommendation relating to rights
and obligations between
the applicant and the first respondent in relation to each other.
[2]
The clarity, rectification and / or rewording of the second
respondent’s award
sought by the applicant revolves around the
following: -
i)
That the words
“
in
accordance with the terms governing the payment of fees”
as per paragraph 3.4 of the said award be amplified and / or varied
and / or reworded and / or rephrased so as to inform the parties
precisely for what losses and / or expenses, the first respondent is
liable to the applicant;
ii)
That the words
“
in
the ordinary management of the contract entered into”
contained in paragraph 3.4 of the award be amplified and / or varied
and / or reworded and / or rephrased so as to inform the parties
precisely what is intended to be meant by the said words;
iii)
That the words
“
paragraph
2.3 above”
contained in paragraph 3.4 of the award be amplified and / or varied
and / or reworded and / or rephrased so as to give meaning
to the
said words, read in the context of the award.
iv)
Granting
leaving to the applicant to apply on the same papers supplemented
where necessary for further and / or ancillary relief;
v)
That the
second respondent be ordered to pay the costs of this application
including the costs occasioned by the deployment of
two counsel;
vi)
In the event
the first respondent opposing this application it be ordered to pay
the costs of this application;
vii)
Further and /
or alternative relief as this court may deem fit necessary and
reasonable.
[3]
The first respondent is resisting the application based
inter alia
on the following basis: -
a)
That the
application is legally flawed as the ombud as a creature of statute
is directed to exercise powers it does not have in
that the ombud is
directed to make a determination on issues beyond the complaints in
the bidding process;
b)
The applicant
is seeking a relief that encroaches unjustifiably on the principle of
separation of powers;
c)
According to
the first respondent, the applicant is actually directing this court
to substitute its discretion and to step into
the shoes of the ombud
in favour of the applicant;
d)
The order
sought by the applicant constitutes a
mandamus
which is available in limited circumstances obliging a public
functionary to act under an enabling Act. It is argued that the ombud
does not have such an obligation to do so;
e)
Failure by the
applicant to plead and establish requirements for the relief it
seeks, are enough grounds to dismiss applicant’s
application.
BACKGROUND
FACTS
[4]
The applicant submitted a bid during 2018 for the provision of
Maintenance and Rail
Network using Ballistic Screening Machines
Countrywide as advertised by the first respondent under Bid number
SIC7018 – 2ICDB.
(tender contract) The tender contract was for
a period of two years.
[5]
During 27 September 2018 the applicant was identified and confirmed
as a preferred
bidder under Bid number SIC7018-2CIDB and issued with
the letter of intent. The parties herein in the interim identified
the services
which the first respondent would wish the applicant to
provide prior to the finalization and execution of a detailed
Agreement
between the parties.
[6]
The purpose of the letter of intent was to declare the intention of
the parties in
respect of the required services to be provided by the
applicant and will remain effective until the Agreement is signed by
the
parties herein or until sixty days have elapsed from the date of
issue of the letter of intent unless terminated by the first
respondent
prior to the expiry of sixty days whichever occurs first.
[7]
After the issuing of the letter of intent, several meetings were held
between the
parties herein and discussed how the tender was to be
executed.
During the said
discussions, the applicant changed the supplier (Aveng Rail) of the
machinery to be used as the supplier identified
in the letter of
intent was unable to supply the agreed machinery. The applicant
appointed another supplier, Plasser South Africa
(Pty) Ltd. The first
respondent postponed the date for the commencement of services to be
provided by the applicant to December
2018. The letter of intent
operative date for sixty days was extended by the first respondent to
21 January 2021.
During 13 March
2019 the first respondent through a letter sent to the applicant
withdrew the letter of intent alleging that the
substitution of the
machine supplier amounted to a material change in the initial tender
awarded to the applicant.
[8]
Subsequently the applicant challenged the withdrawal of the letter of
intent and approached
the office of the first respondent’s
ombudsman to intervene in its dispute to the withdrawal of the letter
of intent by the
first respondent.
The dispute was
among others based on the fact that the first respondent was informed
of the substitution of the machinery supplier
and had not noted any
objection and the said machinery were tested by the first respondent
and were deemed to be appropriate for
the work to be executed by the
applicant. The applicant was required to commence with its work after
the disclosure of a change
of the supplier of the machinery and the
applicant mobilized its workforce and resources to execute its task.
[9]
It is contended by the applicant that the first respondent would not
be prejudiced
in any way by a change of a machinery supplier. On the
contrary the applicant incurred considerable expenses amounting to
millions
of Rands due to the unfair withdrawal of the letter of
intent by the first respondent. The applicant sought the reversal of
the
withdrawal of the letter of intent and it be allowed to continue
with its work as the appointed bidder.
[10]
It further requested as an alternative, the ombud to order that the
first respondent pay R33
827 295.56 immediately being the costs
incurred by the applicant in preparations to commence with work on
behalf of the first respondent.
The second respondent was tasked by
the first respondent’s ombud to deal with the dispute between
the parties. In its award
delivered to the parties, the second
respondent upheld the applicant’s dispute that the withdrawal
of the letters of intent
was unlawful and did not uphold the
applicant’s alternative claim for a directive for payment.
The award read
as follows: -
“
The
award of the bid to Kgwerano Solutions as per the original letter of
intent dated 27 September 2018 and subsequently extended
on 2
November 2018 and 21 January 2019 remains valid and the retraction of
the LOI in terms of the letter from Transnet Freight
Rail to Kgwerano
Solutions dated 13 March 2019 is invalid and hereby set aside”;
“
Transnet
Freight Rail is instructed to proceed with Kgwerano Solutions as the
preferred bidder”;
“
The
parties must conclude the requisite contract as soon as is reasonably
possible, but within a period no longer than 45 calender
days from
the date of issue of this letter”;
“
The
payment of the costs invoiced by Kgwerano Solutions, as costs
incurred to date, shall be paid in accordance with the terms
governing the payment of the fees due to Kgwerano Solutions in the
ordinary management of the contract to be entered into in accordance
with paragraph 2.3. above”
[11]
The bone of contention between the parties regarding the award by the
second respondent revolves
only around the issue of payment of costs
incurred by the applicant as ordered in the award i.e paragraphs 3.4.
The concern of
the applicant regarding the award as per paragraph 3.4 is that it is
not clear for which costs is the first respondent
liable to pay and
on what basis such liability for the said costs is to determined.
Accordingly the applicant submitted that the
said award regarding
payment of costs (paragraph 3.4) is ambiguous and needs to be
clarified.
[12]
The first respondent argues that the invoices submitted by the
applicant for payment as directed
in the award fall outside the scope
of the award in paragraph 3.4.
The queries
raised by the first respondent inter alia related to the following: -
i)
That the costs
for rented vehicle has no bearing to the letters of intent;
ii)
That the legal
costs are not recoverable by the applicant in terms of the award;
iii)
Regarding the
salaries claimed for the applicant’s manager, the first
respondent sought work schedule for the period claimed
to make a
determination for work specifically performed;
iv)
The claim for
loss of profit cannot be claimed as the award ordered reinstatement
of the contract between the parties;
v)
That the
mobilization costs incurred are for the applicant’s account.
[13]
The applicant approached the first respondent’s ombud to
clarify its award. The request
for clarity was declined by the ombud
on the basis that it was
functus officio.
In a nutshell,
the parties differ diametrically as to the interpretation of
paragraph 3.4 regarding the award for payment of costs
as ordered by
the second respondent. The applicant seeks this court to refer the
award back to the second respondent to rectify,
clarify, reword and /
or rephrase its award for costs as it is deemed to be ambiguous and
to meaningfully and accurately define
which costs and on what basis
is the first respondent liable to pay its incurred wasted costs.
CONDONATION
APPLICATION
[14]
The first respondent seeks relief for condonation for the alleged
late delivery of its answering
affidavit.
It is contended
by the first respondent that the applicant’s notice of motion
is irregular due to the following: -
i)
That the
applicant failed to comply with Rule 6 (13) of the Rules of Court in
that the applicant gave the first respondent 5 days
instead of the
requisite 15 days as provided by the Rules. The first respondent
advised the applicant of the irregularity in a
correspondence
addressed to the applicant.
The application
for condonation is not opposed.
[15]
The first respondent vehemently protested that it delivered its
answering affidavit beyond the
prescribed time frames.
It further
contended that if this court holds a contrary view that the affidavit
is unduly late and condonation is refused, such
a ruling will be
prejudicial as first respondent’s rights to a fair hearing will
be compromised.
The first
respondent contended that it is in the interest of justice that the
condonation application be granted. It is further
argued by the first
respondent that the length of the alleged delay is minor being a ten
court days delay.
The first
respondent submitted that it has strong prospects of success in
opposing the application.
[16]
A court may condone non-compliance of the Rules where the applicant
demonstrates that a valid
and justifiable reasons exists why
non-compliance should be condoned.
An applicant is
to furnish an explanation of his default sufficiently and fully to
enable the court to understand how it really
came about and to assess
his conduct and motives.
See
Federated
Employees Fire General Insurance Co Ltd .V. Mckenzie
1969 (3) SA 360
(A) at 362 F-H Silber .V. Ozen Wholesalers (Pty) Ltd
1954 (2) SA 345
(A) at 353A
[17]
It is trite law that the standard for considering an application for
condonation is in the interest
of justice.
See
Grootboom
.V. National Prosecuting Authority and Another
2014 (2) SA 68
(CC)
paragraphs [22] and [23
]
Whether is in
the interest of justice to grant condonation depends on the facts and
circumstances of each case.
[18]
It is my view that the first respondent’s explanation is bona
fide and good cause has been
shown as to why the application should
be granted.
The first
respondent will suffer great prejudice if condonation is not granted
whereas the applicant’s prejudice will be very
minimal.
I find that it
is in the interest of both parties and more particularly in the
interest of justice that condonation be granted.
The following
order is accordingly made:
1)
That the
condonation application is hereby granted;
RULE 7 (1)
NOTICE
[19]
The applicant contested and disputed the authority and mandate of the
first respondent’s
attorneys of record in the opposing
application.
The first
respondent ultimately served and filed the requisite power of
attorney authorizing and mandating the first respondent’s
attorney of record to oppose this application.
[20]
The notice in terms of Rule 7 (1) of the Rules of Court became moot
at the hearing of the application
as the applicant’s objection
in terms of Rule 7 (1) was accordingly addressed before the
hearing of this application.
APPLICANT’S
CONTENTION
[21]
It is not disputed that in terms of the award, the first respondent
is liable for the costs incurred
by the applicant but applicant
contended that the award does not state the extent of liability on
the part of the first respondent
and parties herein cannot agree what
costs are due and payable as awarded.
According to the
applicant, the impasse and disputes between the parties necessitated
the launching of this application. The applicant’s
view is that
the first respondent is to be liable for all the reasonable and
necessary expenses incurred from the date of incurrence
as the first
respondent is the sole cause of the breakdown of the negotiation
between the parties when it unlawfully retracted
the letter of
intent.
[22]
The applicant stated that its invoices are in accordance with the
quote which a tender was awarded
to it and the first respondent
cannot now be heard of querring the same quote it accepted.
In trying to
resolve the impasse and first respondent’s queries, the
applicant submitted that it furnished the first respondent
with all
the documentations explaining and indicating what amounts were
incurred for each item in its invoices.
Despite the
supporting documentation from the applicant, it is alleged that the
first respondent stuck to its guns that the amounts
claimed did not
accord with its interpretation of the second respondent’s
(ombud) award.
It is therefore
the submission by the applicant that there is a need and it is
essential that the second respondent’s award
contained in
paragraph 3.4 of the award be clarified.
[23]
According to the applicant, it is in the interest of both parties
herein that the said award
be clarified in clear and certain terms
without any ambiguity.
In its
interpretation to the second respondent’s second portion of the
award, the applicant’s view is that the second
respondent in
order to protect the applicant once the master service agreement had
been entered into, attempted to record that
the award should contain
provisions for payment in accordance with the letter of intent. It
seems to the applicant that the second
portion of the second
respondent award appears to be legally incompetent.
[24]
The applicant contended that the first respondent’s
interpretation of the second portion
of the award that payment of the
amount as invoiced by the applicant should be in terms of clause 2
and clause 3.1 of the letter
of intent as if there was an ordinary
management of the contract between the parties during such period,
cannot be correct as there
was no such contract.
The first
respondent’s three different interpretations of the second
respondent’s award and believe that it is not liable
for the
incurred expenses without substantiating as to the reason thereof,
cannot be sustained so argued the applicant.
[25]
In an e mail addressed to the second respondent dated the 17 October
2020 the applicant attempted
to explain that its request to the
second respondent requesting clarification for the award was not for
the second respondent to
make a determination for amounts as
contained in applicant’s invoices.
After numerous
exchange of correspondences between the applicant and the second
respondent, the second respondent ultimately stated
that it is
functus officio
and it cannot therefore provide the requested
clarification of its award.
The view of the
applicant is that second respondent’s contention that it is
functus officio
is without any legal basis and approached this
court seeking the relief that the second respondent must be directed
to clarify
its award. The applicant argued that the first
respondent’s conduct is not only mala fide and capricious in
disputing the
amounts as invoiced but is intended not to reach an
amicable resolution of their impasse and disputes.
It is
applicant’s submission that reference by the second respondent
to paragraph 2.3 to its award needs to be corrected as
there is no
paragraph 2.3 in the award.
[26]
The applicant contended that it is necessary for this court to compel
the first respondent to
clarify its award as the applicant has no
other alternative but to approach this Court for an order as per its
notice of motion.
The applicant
submitted that it has made out a case for the referral of the award
back to the second respondent for clarification
as prayed and the
first respondent be ordered to pay the costs of the application
including costs occasioned by the deployment
of two counsel.
IN
RESPONSE
[27]
The first respondent argues that it is only liable for contract fees
and related costs in terms
of the letter of intent and not the
reasonable and necessary costs incurred by the applicant as a result
of the withdrawal of the
letter of intent.
The invoices
submitted by the applicant are querried and disputed by the first
respondent. According to the first respondent, the
applicant’s
relief seeking an order that a discretionary power in its favour to
clarify and rectify its award in the absence
of a review relief, is
flawed.
The contention
of the first respondent is that the ombud does not have powers beyond
those in terms of the empowering provisions
as contained in the terms
of the terms of reference of the ombud.
[28]
In the opinion of the first respondent the relief sought by the
applicant in directing the ombud
to clarify and rectify its award
constitutes a
mandamus
.
Such a relief is
only available when an administrative organ like the ombud is
compelled to do something that it is obliged to do
under an enabling
statute. The first respondent submitted that since the ombud has made
a determination, it is deemed to be valid
until it is reviewed. The
view of the first respondent is that an order directing the ombud to
rectify and clarify its award under
the circumstances of this matter
will be
ultra vires
and unlawful.
[29]
It is contended that applicant failed to demonstrate that the ombud
has powers to clarify its
award like courts and arbitrators are
empowered to do.
The first
respondent submitted that indeed the courts and arbitrators have the
power to clarify their decisions in exceptional circumstances
but
argues that the applicant failed to demonstrate that the ombud’s
award falls within the aforementioned powers exercised
by court and
arbitrators.
[30]
The first respondent submitted that the application be dismissed on
the following preliminary
basis: -
1.
The
mandamus
sought by the applicant is not competent in law
[31]
The first respondent is of the opinion that the relief sought by the
applicant is solely reliant
on the legal
causa
of a
mandamus
.
In actual fact
the applicant seeks a mandatory interdict to compel the ombud to
perform a positive action.
The first
respondent contended that there is no such obligation existing on the
ombud to rectify and clarify its award.
[32]
For the applicant to succeed with a mandatory interdict which is
final in nature it must satisfy
the following requirements: -
a)
A clear right;
b)
An injury
actually committed or reasonably apprehended and;
c)
The absence of
similar protection by any other ordinary remedy.
[33]
The first respondent’s argument is that despite the applicant
being a preferred bidder
it does not have a clear right to the relief
sought as the invoices claimed are disputed. According to the first
respondent, the
applicant omitted to demonstrate that it has a clear
right to the relief sought.
[34]
The submission by the applicant that the continued impasse between
the parties result in the
applicant suffering uncertainty is not
compliant with the requirement that there is actually an injury
committed by the respondent
or such an injury is reasonably
apprehended. The first respondent denied that there is any
uncertainty pertaining to the award
and disputed that there is an
impasse between the parties herein.
[35]
It is contended that the monetary dispute between the first
respondent and the applicant may
be resolved through an appropriate
dispute resolution rather that by way of application proceedings. As
such the first respondent
failed to satisfy the requirement that it
has no alterative remedy.
The contention
of the first respondent is that the applicant did not sufficiently
plead to establish its cause of action. It was
expected of the
applicant to raise issues upon which it would seek to rely with
reasonable clarity to enable the first respondent
to clearly know
which case it has to answer.
[36]
The first respondent hold the view that the applicant did not
adequately plead the legal requirement
and establish the legal
requirements of a
mandamus,
and as such the application be
dismissed.
The first
respondent contended that the impasse in not agreeing to the amounts
claimed by the applicant and the delay in implementing
the agreement
cannot be blamed on the first respondent. The correct interpretation
of the award by the first respondent is that
it is only liable for
costs as per the terms governing the ordinary management of the
contract between the parties and the typographical
error in paragraph
3.4 of the award as opposed to paragraph 3.3 thereof is negligible.
[37]
What the award means is that the terms of payment would be guided by
the contractual terms by
the parties.
The terms of
reference of the bid stipulates that decisions by the ombud should
accord to the procurement issues of the unsuccessful
bidders alone
and not the monetary issues of the successful bidders.
The first
respondent submitted that any reference by the applicant to the
ombud’s jurisdiction is without any basis. Accordingly
the
first respondent argued that the applicant failed to make out a case
and its application be dismissed.
[38]
The submission by the first respondent is that the ombud is indeed
functus officio
and until its award is reviewed and set aside,
it remains valid. In the circumstances it would be unlawful to
clarify and
rectify its award.
Accordingly the
first respondent applies for the dismissal of the application as the
applicant has failed to satisfy the requirements
for a
mandamus
.
[39]
In reply the applicant submitted that the purpose of its application
is to obtain clarity and
it is not seeking a
mandamus
or a
principal relief.
It is disputed
that the applicant is seeking this court to exercise its
discretionary power to be ordered in its favour instead
the ombud
should be directed to rephrase its award as it is deemed to be
ambiguous.
[40]
Contrary to the view of the first respondent, the applicant argues
that the ombud does have jurisdiction
and powers to rectify, clarify
and rephrase its award in instances where it is not clear.
Reference to the
principle of separation of powers s averred by the first respondent
is irrelevant and baseless in the opinion of
the applicant.
The applicant
contended that the terms of reference of the ombud permit the ombud
to clarify its determination regarding the liability
for costs in the
award as it will be beneficial to both parties in this matter, so
submitted the applicant. The parties herein
it is argued, would be
better placed to know exactly what the ombud meant in its award.
[41]
The invoices so submitted are according to the applicant is, in terms
of the letters of intent
and that the court is not asked to make a
monetary award but to direct the ombud to clarify its award.
The applicant
argues that it is not seeking a determination of issues finally in
the motion proceedings but intends to avoid further
disputes by
requesting that the ombud should rectify and clarity any ambiguity in
its award.
The applicant’s
view is that a case has been made out for the relief sought and it be
granted with costs.
CONDONATION
OF THE LATE FILING OF THE REPLYING AFFIDAVIT
[42]
The late filing of the applicant’s replying affidavit is hereby
granted as it is in the
interest of both parties and in the interest
of justice to do so.
ANALYSIS
AND LEGAL PRINCIPLES
[43]
The dispute and impasse between the parties boils down to the
following: -
What
interpretation to be accorded to the award by the second respondent.
Secondly the parties do not agree as to whether or not
the award be
referred back to the second respondent to be rectified, clarified,
rephrased and or reworded to can enable the parties
to fully
understand in clear terms what the award is really all about.
[44]
As aforementioned it is not in contention that the first respondent
is liable for the costs incurred
by the applicant but what is in
issue is to which costs and to what extent of liability is the first
respondent to be held responsible.
It is worthwhile
to revisit the terms of reference of the ombud when requested to
intervene when a letter of intent was retracted
by the first
respondent.
[45]
The ombud is generally defined as a natural juristic person seized
with authority to exercise
a public power or perform a public action
as empowered by the relevant provision.
The empowering
provision for the second respondent would therefore be in accordance
with the terms of reference of the complaint
as lodged by the
applicant against the first respondent.
[46]
Among the powers conferred to the second respondent in terms of the
terms of reference are to
investigate, make recommendation,
cancelling of the bid, referring a bid for re-evaluation, amending a
bid decisions and to recommend
relevant and appropriate measures
against any first respondent’s officials. The ombud in this
matter is further empowered
to review any bid award as it deems fit.
The question to
be addressed is, does the second respondent permitted to exercise
powers beyond those accorded by the terms of reference
in this
matter.
[47]
It is contended by the applicant that the ombud like any judicial
bodies and quasi judicial bodies
is entitled to rectify and clarify
its award in case it is ambiguous. On the other hand the first
respondent is of the view that
the second respondent cannot exercise
powers or perform a function beyond those conferred in the terms of
reference to it.
[48]
A distinction is to be made between the general powers of the ombud
and those that are prescribed
specifically or those that fall within
the prescripts of the terms of reference conferred to the second
respondent. Accordingly
the second respondent as tasked to deal with
the specific complaints relating to the first respondent about its
management of the
bidding or procurement, the second respondent in my
view cannot perform any function or has authority to exercise its
powers beyond
the empowering provisions as tabulated by the terms of
reference in
casu.
See
Limpopo
Legal Solutions and Another .V. Eskom Holdings Limited [2017]
ZALMPPHC 1 at 27
.
[49]
In the circumstances of this case I am not persuaded that the second
respondent is empowered
to exercise powers like any judicial and
quasi-judicial bodies as its mandate as an ombud are specifically
defined in terms of
reference as conferred.
When approached
to clarity its award, as it allegedly open to different interpreters
and ambiguity, the second respondent pleaded
that it is
functus
officio.
The first
respondent argues that since the second respondent is
functus
officio
, the applicant should have embarked on a review process
which it failed to do.
[50]
In the absence of reviewing and setting aside the second respondent’s
award, such award
remains valid. According to the first respondent
the applicant should have approached the court instead of the second
respondent
for clarity of the award.
The stand point
of the applicant is that it was not necessary to review the award as
its request is simply to seek clarity on some
aspects of the award
that is ambiguous.
As it is not
seeking that the second respondent’s revisit the matter, the
second respondent’s position that it is
functus officio
is according to the applicant, without any basis whatsoever.
[51]
The principle of
functus officio
dictates that once a decision
maker has made a determination, such decision is deemed to be final.
Its purpose is to bring finality
to matters and once made, the
decision maker cannot revoke its own decision as it is deemed final.
See
Minister of
Justice .V. Ntuli
[1997] ZACC 7
;
1997 (2) SACR 19
(CC);
1997 (6) BCLR 677
(CC);
1997
(3) SA 772
CC paragraphs 22 and 29
[52]
In my view the contentious issue about the fees to be made by the
first respondent in terms of
the award, is that such costs are to be
paid in accordance with the terms governing payment of fees to the
applicant as contained
in the management contract. Any costs incurred
that is not catered for in the terms of reference cannot be for the
account of the
first respondent. I regard an award by the second
respondent as final and accordingly I am of the opinion that the
second respondent
is thus
functus officio.
Referring the said
award back to the second respondent on the basis that it is ambiguous
is not sustainable and helpful to the applicant.
[53]
The argument by the applicant that it is merely seeking clarity in my
view, cannot be acceptable
as it goes to the heart of the award
itself. In the event the award as requested by the applicant, is
rephrased, reworded, corrected
and further clarified, it may have an
effect of the second respondent setting aside its own decision and /
or alter its own final
relief according to my view if not satisfied
with the award as granted, it has to be reviewed. Until it is
reviewed or set aside
by a court, it is presumed valid.
See
Oudekraal
Estates (Pty) Ltd .V. City of Cape Town and Others 2004 (b) SA 222
(SCA) at 26
[54]
I therefore find that the second respondent is
functus officio
as such the second respondent’s authority over the mandate
conferred in the terms of reference ceased when making the final
award.
The first
respondent contended that the substantiative relief sought by the
applicant is based on the legal
causa
of a
mandamus
.
An order sought
by the applicant is to direct the second respondent to rectify and
clarify its award as it is deemed to be short
of meaningful and
accurate interpretation.
By compelling
the second respondent to exercise its judicial decision making
discretion in favour of the applicant will contravene
the principle
of separation of powers.
[55]
Relying on a
mandamus
, the applicant has to plead and
establish the requirements of a mandate which it is argued it omitted
to do and thus the application
is fatally flawed and should be
dismissed.
On the flip
side, the applicant argues that its case is for the ombud to clarify
its award and it is not seeking a
mandamus.
Accordingly the
applicant need not prove the requirements for a
mandamus.
[56]
The interdict approach as suggested by the first respondent is
irrelevant as the relief sought
is simply to request clarity of the
said award. The doctrine of separation of powers finds no application
in this matter so argued
the applicant. Since the second respondent
has already made a determination, applicant argues that it seeks the
second respondent
to clarify what it has already done.
The applicant
submitted that it has suffered irreparable harm and has no any other
remedy and pleads that its application be granted
with costs.
Mandamus
may be broadly
defined as a relief or a command compelling a decision maker to
exercise or perform some other statutory duty.
[57]
The applicant in
casu
seeks an order that compels the second
respondent to rectify, clarity, rephrase, reword and correct its
award. I hold the view
that indeed the application is based on a
mandamus
directing the second respondent to exercise its
quasi-judicial decision making and clarify its award.
For the
applicant to be successful with its application it has to meet and
establish the requirements of a
mandamus
.
It is not enough
for the applicant to only submit that in the absence of clarity by
the second respondent, it will suffer irreparable
harm and that there
are no alternative remedy.
[58]
It is expected of the applicant to fully and sufficiently plead and
satisfy all the requirements
necessary for a
mandamus
.
The applicant
has to demonstrate that it has a clear right to the relief it seeks,
that an actual injury has been committed or it
is reasonably expected
to be committed, that there is no other legal remedy available and
that it will suffer irreparable harm.
I find that the
applicant did not adequately plead and satisfy all the requirements
necessary to be successful with the relief it
seeks in its
application.
It is not
necessary in my view to further consider and make a determination on
the merits of this matter as the issues have been
sufficiently dealt
with in the preliminary bases as raised herein.
[59]
After careful consideration of the issues and submissions made by
both parties in this matter,
I am of the view that the application
falls to be dismissed with costs.
COSTS
[60]
Counsel for the first respondent’s view is that the application
be rejected and it be dismissed
on the preliminary basis as the
applicant failed to make out a case for its relief sought in the
notice of motion.
It is submitted
on behalf of the first respondent that although it is an organ of
state, the application is brought for the purpose
of commercial gain
and therefore the court should order the applicant to be liable for
costs incurred including costs for two counsel.
[61]
It is generally accepted that costs follow the results. A successful
party is entitled to his
/ her costs unless ordered otherwise by the
court.
The court in
Ferreira .V. Levin No and Others 1996 (2) par [3]
held
that the award of costs unless otherwise enacted, is in the
discretion of the Court.
The facts of
each and every case are to be considered by the court when exercising
its discretion and has to be fair and just to
all the parties.
[62]
The purpose of an award of costs to a successful party is to
indemnify him or her for the expenses
which he has been unnecessarily
put through.
I am of the view
that the application before this court is complex and the complexity
thereof will be considered when making a determination
as to costs.
Having found
that the application be dismissed on preliminary basis and for lackof
adequate pleading and failure to satisfy the
requirements for a
mandamus
and generally that the applicant failed to make out a
case for the order it sought in its notice of motion, a costs order
is warranted
against the applicant.
[63]
After considering the facts and submissions made herein, I find that
the first respondent should
not have been put through the process of
this application incurring unnecessary expenses in opposing this
application.
In
Cronje
.V. Pelser
1967 (2) SA 589
(A) at 593
the court held that the
Court should take into consideration the circumstances of each case.
ORDER
The following
order is made: -
1)
The
application is dismissed;\
2)
The applicant
is ordered to pay costs including costs of two counsel.
S
S MADIBA
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION PRETORIA
APPEARANCES:
HEARD
ON:
16
FEBRUARY 2022
FOR THE
APPLICANT:
MORGAN
LAW INC.
28 THE AVENUE
ORCHARDS
JOHANNESBURG
TEL: 011 020
6838
E
MAIL:
ryan@morganlaw.co.za
FOR THE FIRST
RESPONDENT:
HARRIS NUPEN MOLEBATSI
INCORPORATED
3
RD
FLOOR 1 BOMPAS ROAD
DUNKELD WEST
JOHANNESBURG
TEL: 011 017
3100
DATE OF
JUDGMENT: 30
NOVEMBER 2022
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