Case Law[2025] ZAWCHC 405South Africa
Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2025] ZAWCHC 405 (28 August 2025)
High Court of South Africa (Western Cape Division)
28 August 2025
Headnotes
Summary: Status of judgment in interim application – duty to exhaust internal remedies – test for non-responsiveness
Judgment
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## Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2025] ZAWCHC 405 (28 August 2025)
Raubex Building (Pty) Ltd v Bitou Municipality and Another (13787/2024) [2025] ZAWCHC 405 (28 August 2025)
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sino date 28 August 2025
FLYNOTES:
ADMINISTRATIVE
– Tender –
Compliance
with specifications –
Housing
development – Bid declared non-responsive due to exceeding
height restriction – Decision ultimately based
on failure to
comply with mandatory zoning parameters – Bidders not
entitled to cure non-compliance post-submission
– Complied
with obligation to exhaust internal remedies – Height
restriction was a mandatory requirement –
Non-compliance
rendered bid unacceptable – Application dismissed.
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Not Reportable
Case no: 13787/2024
In the matter between:
RAUBEX BUILDING (PTY)
LTD
APPLICANT
and
BITOU
MUNICIPALITY
FIRST RESPONDENT
CARNIVORE CAPITAL
(PTY) LTD
SECOND RESPONDENT
Neutral
citation:
Coram:
COOKE AJ
Heard
:
5 August 2025
Delivered
:
28 August 2025
Summary:
Status of judgment in
interim application – duty to exhaust internal remedies –
test for non-responsiveness
ORDER
[1]
Part B of the application is dismissed.
[2]
The applicant shall pay the costs of the
second respondent, including the costs of two counsel with senior
counsel on scale C, and
junior counsel on scale B.
# JUDGMENT
JUDGMENT
Cooke AJ:
[1]
Alongside the N2 highway outside Plettenberg Bay,
opposite the Formosa Bay Resort, lies an undeveloped parcel of land.
Since just
after the turn of the century this centrally located plot
has been earmarked for a housing development. In October 2023, the
first
respondent (‘the Municipality’) called for
proposals for a high-density residential development. The vision was
to
build affordable contemporary housing which would be offered to
middle-income members of the community so they could, with the
assistance of subsidies from the Department of Human Settlements,
become homeowners for the first time. The development would include
amenities typically found in modern housing estates, such as private
open spaces, communal facilities, security and the like.
[2]
The applicant (‘Raubex’) and the
second respondent (‘Carnivore’) both submitted proposals.
In May 2024,
the tender was awarded to Carnivore. Dissatisfied with
this decision, Raubex brought an application for the review of the
decision.
As is often the case in such applications, the relief
comprised two parts - Part A and Part B.
[3]
In Part A of the application, Raubex sought
urgently to interdict the implementation of the tender pending the
determination of
Part B. In Part B, Raubex seeks the following
substantive relief:
a.
The review and setting aside of the Municipality’s
decision to eliminate Raubex from the tender process.
b.
The review and setting aside of the Municipality’s
decision to award the contract to Carnivore.
c.
Directing that the contract be awarded to Raubex,
alternatively remitted to the bid adjudication committee (‘BAC’)
for
reconsideration.
[4]
Both parts of the application were opposed by
Carnivore. For its part, the Municipality abided by the decision of
the court and
over time delivered two explanatory affidavits. At the
hearing before me, the Municipality was represented by counsel,
although
she recorded that she was only on a watching brief, and she
made no submissions.
[5]
At the
first hearing of Part A, the application was struck off the roll by
Francis J for lack of urgency. Part A was then re-enrolled
and heard
by Bhoopchand AJ on 5 November 2024. A fortnight later, on 19
November 2024, the learned judge handed down judgment
[1]
in which the application for an interim interdict was dismissed with
costs, including the costs of two counsel (‘the interim
judgment’). I highlight certain aspects of this judgment.
[6]
First,
the judge made it clear that he was only dealing with the application
for an interim interdict. He declined to read two bundles
of
documents obtained through the rule 53 procedure, noting that those
documents are best reserved for the review court.
[2]
Later in the judgment he recorded that he was cognisant of the relief
sought in the application and that a review remains in the
offing.
[3]
[7]
As
regards Raubex’s obligation to exhaust internal remedies, he
held that the internal appeal had been submitted on time,
and this
had been confirmed by an email from a representative of the
Municipality which stated that the closing date for appeals
was 9 May
2024.
[4]
[8]
On the
substance of the application, he found that Raubex had failed to
satisfy the requirements of an interim interdict, more particularly:
(a) its prospects of success in the review application were poor or
negligible because it had failed to comply with the design
limitations (its proposal of a four-storey building with a height
above 10.67m contravened the applicable by-law);
[5]
(b) the balance of convenience was firmly against Raubex;
[6]
(c) Raubex had failed to identify any current or imminent harm;
[7]
and (d) Raubex provided credible alternative relief when it adverted
to its intention to expedite the review process.
[8]
[9]
After receiving the interim judgment, the
attorneys for Carnivore addressed Raubex’s attorneys on several
occasions contending
that - having regard to the findings on the
merits of the review in the interim judgment - Raubex should withdraw
Part B of the
application. It appears from recent correspondence that
Raubex was amenable to withdrawing the application, subject to there
being
no cost order against it. This proved to be a sticking point
and in the result the parties proceeded with Part B of the
application.
[10]
On 30 July 2025, shortly before the hearing,
Raubex delivered a further affidavit in which it sought to set out
‘new material
information’ and asked that the matter be
referred to oral evidence. The main gripe in this affidavit concerned
Carnivore
having been permitted to amend its site development plan.
Carnivore delivered a response on 4 August 2025 in which it objected
to the delivery of the further affidavit. Carnivore pointed out that
Raubex’s further affidavit had not been accompanied by
an
application in terms of uniform rule 6(5)(e). Carnivore also replied
to the contents of the further affidavit and made detailed
submissions regarding costs.
[11]
At the
hearing counsel for Carnivore submitted that the further affidavit
fell to be regarded as
pro
non scripto
(as
if it had not been written). Reliance was placed on judgments such as
Sewpersadh
[9]
and
Hano
Trading
.
[10]
Counsel for Raubex, on the other hand, called in aid the recent
judgment of Mabindla-Boqwana JA in
De
Kock
.
[11]
[12]
In my view, Raubex failed to provide a proper and
satisfactory explanation for not having placed the new information
before the
court at an earlier stage. In particular, Raubex would
have been aware that Carnivore’s bid did not comply with the
building
line when it first received the bid evaluation committee
report (‘the BEC report’). It would have seen then that
Carnivore
had to apply for a relaxation of the building line or amend
its proposed layout. If there was anything in this new point it could
have been raised in the supplementary founding affidavit. I am also
not persuaded that the new information is relevant or important.
Having said that, the prejudice to Carnivore is largely ameliorated
by it having filed a full reply. The further affidavit also
purports
to support the last-minute oral evidence application (discussed
below). Having regard to all the circumstances, I am willing
to admit
the affidavit, and Carnivore’s response, but only for the
limited purpose of considering the application to refer
the matter to
oral evidence.
The status of the
interim judgment
[13]
Before turning to the issues which arise in Part
B, it is apposite to make a few observations regarding the status of
the interim
judgment. I do so in light of the insistence on the part
of Carnivore’s attorneys that Raubex withdraw the application
because
of the findings in the interim judgment, as well as an
initial submission by Raubex’s counsel at the hearing to the
effect
that I am bound by the interim judgment.
[14]
The courts have approached judgments in interim
proceedings in different ways although the effect of these decisions,
for present
purposes, is the same.
[15]
In
National
Gambling Board
the
Constitutional Court held:
[12]
‘
an
interim interdict is by definition “a court order preserving or
restoring the status quo pending the final determination
of the
rights of the parties. It does not involve a final determination of
these rights and does not affect their final determination.”
The dispute in an application for an interim interdict is therefore
not the same as that in the main application to which the interim
interdict relates.’
[16]
Consistent
with the notion that the dispute is different, the courts have held
that the principles of
res
judicata
do
not apply to the decision of the court which hears the application
for interim relief.
[13]
It has
also been held that when courts in interim applications make findings
which purport to determine the issues in the main
application, such
pronouncements should be regarded as obiter.
[14]
[17]
In
Tony
Rahme
[15]
the court held that interlocutory decisions are not binding at later
stages of the proceedings and should yield easily to persuasive
arguments indicating error or oversight. A different perspective was
expressed in
Zulu
[16]
where the court held that it is not an issue of the hierarchy of the
courts and which of the two courts has the power to bind the
other.
Rather it is a matter of the two courts fulfilling different
functions in the exercise of their judicial powers. The court
considering final relief is seized with the full matter and is called
upon to decide the issue finally. On the other hand, the
court that
considers interim relief only must decide the issues on a preliminary
basis and having regard to the existence or non-existence
of a prima
facie right.
[18]
Having regard to the approach which was adopted in
the interim judgment, in which it was specifically recorded that the
court was
only determining the interim relief, and having regard also
to the authorities set out above, in my view I am not constrained to
follow the approach which was adopted in the interim judgment in so
far as the same issues arise in Part B of the application.
[19]
I now turn to assess Part B of the application.
The interim judgment has been reported, and it is therefore not
necessary to set
out the background to this matter in detail. The
first issue which must be determined is whether Raubex complied with
the obligation
to exhaust its internal remedy. If it failed to do so,
and absent an exemption, I am precluded from reviewing the challenged
administrative
action.
Exhaustion of internal
remedy
[20]
In
terms of s 7(2) of the Promotion of Administrative Justice Act 3 of
2000 (‘PAJA’) it is compulsory for the aggrieved
party in
all cases to exhaust the relevant internal remedies unless exempted
from doing so by way of a successful application under
s 7(2)(
c
)
of PAJA.
[17]
In
Dengetenge
the
Constitutional Court explained that a review application that is
launched before exhausting internal remedies is taken to be
premature
and the court to which it is brought is precluded from reviewing the
challenged administrative action until the domestic
remedies are
exhausted or unless an exemption is granted. This means that the duty
to exhaust internal remedies defers the exercise
of the court’s
review jurisdiction for as long as the duty is not discharged.
[18]
[21]
The decision taken by the Municipality to award
the tender to Carnivore was conveyed to Raubex on 17 April 2024. The
letter drew
attention to a provision in the Bitou Municipality SCM
Policy (‘the SCM Policy’) which affords affected bidders
the
right to appeal against the decision of the BAC or Accounting
Officer by giving written notice of their appeal and the reasons for
it to the municipal manager within 21 days of the receiving date of
the letter. The SCM Policy was not attached to any of the affidavits,
nor was it included in the record. The SCM Policy would, however,
appear to mirror s 62(1) of the Local Government: Municipal Systems
Act 32 of 2000 (‘the Systems Act’). This section
provides:
‘
A
person whose rights are affected by a decision taken by a political
structure, political office bearer, councillor or staff member
of a
municipality in terms of a power or duty delegated or sub-delegated
by a delegating authority to the political structure,
political
office bearer, councillor or staff member, may appeal against that
decision by giving written notice of the appeal and
reasons to the
municipal manager within 21 days of the date of the notification of
the decision.’
[22]
Raubex
lodged its appeal on 9 May 2024. The days contemplated by the Systems
Act are calendar days.
[19]
The
same must apply to the SCM Policy. Consequently, Carnivore argued
that 21 calendar days, counted from 17 April 2024, is 8 May
2024.
Therefore, so the argument ran, when Raubex lodged its appeal on 9
May 2024 it was out of time, albeit by just one day. The
lapsing of
the time for exercising the internal remedy would mean that the duty
to exhaust internal remedies had not been satisfied.
[20]
[23]
Although Raubex adopted various positions on this
aspect through the course of the litigation, finally, in replying
argument at
the hearing, Raubex’s counsel submitted that the
21-day period did not commence before 23 April 2024, being the date
when
the Municipality provided reasons for its decision. In my view,
this belated submission was well-founded.
[24]
In
Evaluations
Enhanced Property Appraisals (Pty) Ltd v Buffalo Metropolitan
Municipality
,
[21]
Dukada J held that although s 62(1) of the Systems Act does not
specifically state that the notification of the decision must be
accompanied by the reasons for that decision, in our present
Constitutional democracy, the maker of that decision is obliged to
give reasons for it.
[22]
The
learned judge pointed out that the reasons for the decision were
necessary to enable an aggrieved party to formulate properly
the
notice of appeal, which includes the provision of reasons, as
required by s 62(1) of the Systems Act.
[23]
This
judgment relied upon the approach adopted by the Constitutional Court
in
Koyabe
,
where the court found that reasons were important for the applicants’
review of a decision finding them to be illegal foreigners,
and they
were entitled to reasons.
[24]
[25]
In the
Gauteng division, Keightley J (as she then was) adopted a similar
approach in the matter of
FM
v Minister of Home Affairs
.
[25]
This case concerned a decision by a Standing Committee on
Refugee Affairs (‘SCRA’). It was contended that the
SCRA is under no duty in terms of the Refugees Act 130 of 1998 to
provide reasons for its decision and if the applicant wished
to be
provided with reasons, her remedy lay in section 5(1) of PAJA, ie she
should have requested reasons. The learned judge pointed
out that in
light of the particular facts that existed (the applicant was placed
under notice to leave the country within 30 days),
the resort to
section 5(1) of PAJA by the applicant would have served no practical
purpose.
[26]
The
judgment of Dukada J was overturned by a full court which reasoned,
with reference to the principle of subsidiarity and the
request-driven regime of s 5 of PAJA, that there was no automatic
right to reasons, and the process prescribed by s 5 should be
followed.
[26]
[27]
The
finding of the full court has been criticised by Steytler and de
Visser.
[27]
According to these
authors the full court’s interpretation produces an
unsatisfactory situation for those aggrieved parties
who rely on the
reasons given to decide whether to appeal. These authors note that
the PAJA timelines extend far beyond the appeal
deadline and by
delaying the furnishing of reasons, a municipality may orchestrate
the lapsing of the 21-day period. The authors
submit that the 21-day
period for lodging an appeal commences on the day that the aggrieved
party receives the reasons for the
decision.
[28]
Although the full court did not agree that the
decision-maker was obliged by s 62(1) to provide reasons with the
notification, it
did make the following important finding:
‘
It
follows that the applicant had 90 days from 21 August 2012 to request
reasons from the [municipality] (
section
5(1)
of PAJA).
The [municipality] had 90 days to give reasons failing which, the
decision would have been deemed to be unlawful
and liable to be set
aside (
section
5(2)
and
(3)
of PAJA).
If the [municipality] gave reasons, the applicant had 21 days to give
notice of its appeal and the reasons therefor
(
section
62(1)
of
the Systems Act), and the appeal would then have been dealt with as
provided in
section
62
.
This is the procedure which should and could have been followed by
the applicant.’
[28]
As I read the judgment,
if a request for reasons is made, then the 21-day period only
commences after the reasons are given. The
differences of approach
described above therefore only become relevant if the aggrieved party
does not request reasons.
[29]
In this matter reasons were requested and given.
It is therefore not necessary to decide whether the approach followed
by Dukada
J and Keightley J is correct, or whether the approach
adopted by the full bench is to be preferred. Even on the latter
approach,
if reasons are requested and given, the 21-day period does
not start until the latter date.
[30]
It follows, to my mind, that the 21-day period did
not commence until the Municipality had provided the reasons for the
decision.
This only occurred on 23 April 2024 at the earliest. It
follows that the appeal was lodged within the 21-day period.
[31]
Carnivore has a further argument. It submits that
if the appeal was lodged in time, then the appeal was never decided
and Raubex
should have brought an application to compel the Municipal
Manager to decide the appeal. According to Carnivore, unless and
until
the appeal has been decided, Raubex has not exhausted its
internal remedy. In my view, this argument is unrealistic. It
appeared
from the Acting Municipal Manager’s letter of 13 May
2024 that he did not consider that there were grounds for appeal. In
his view, the decision was ‘in terms of the bid rules and
applicable legislation’. The final sentence in this letter
thanked Raubex for its time and interest in submitting an offer. As
far as he was concerned, the matter was closed. On the same
day the
Acting Municipal Manager signed a memorandum of understanding and a
sale agreement with Carnivore.
[32]
Although Raubex’s attorneys sent a letter on
16 May 2024 requesting confirmation that Raubex’s appeal would
be noted,
and the implementation of the award stayed, on 3 June 2024
Mr Damonds informed Raubex’s attorneys that ‘the appeal
period has lapsed and no further matters falling outside the period
will be considered’. Raubex’s attorneys sent a response
to Mr Damonds on the following day, 4 June 2024, raising various
issues. Later that day, Mr Damonds sent an email to Raubex’s
attorneys, recording that the personal assistant to the Municipal
Manager would provide their letter to the Municipal Manager.
Notwithstanding this undertaking, no further correspondence was
received from the Municipality, and the application was then launched
on 13 June 2024.
[33]
In my
view, the correspondence from the Municipality shows that either it
had already decided the appeal, or it would not be doing
so. Either
way the door had been closed on Raubex, and there was no longer any
‘available, effective and adequate’
[29]
remedy which Raubex could pursue. Raubex was therefore entitled to
turn to the courts for relief. Whether its review is well-founded
is
considered in the next section.
The lawfulness of the
decision
[34]
In its founding affidavit, Raubex identified two
grounds of complaint. First, Raubex should have been awarded 90
points for its
financial offer, rather than 83.55 points. Second, in
so far as it was declared to be non-responsive, Raubex alleged that
its tender
conformed to all the terms, conditions and specifications
of the tender documents, without material deviation or qualification.
As to the non-compliance with the height restrictions, Raubex alleged
that the Municipality knew that (a) Raubex was willing and
able to
build the housing units on a three-level construction model and (b)
this adjustment would not affect the bid price as Raubex
had bid on a
per unit basis.
[35]
Based on these complaints, Raubex contends that
the impugned decisions were unlawful in terms of s 6 of PAJA,
including s 6(2)(e)(iii)
(the action was taken because irrelevant
considerations were taken into account, or relevant considerations
were not considered)
and s 6(2)(f) (the action was irrational etc).
[36]
In the supplementary founding affidavit, Raubex
developed its second complaint. It alleged that the Municipality had
regarded Raubex’s
bid as responsive and scored its tender on
that basis. Raubex pointed out that tenderers that submitted a site
development plan
for a three-storey building were awarded a score of
0.25, while Raubex was scored 0. According to Raubex, the fact that
it was
specifically scored in relation to this functionality
dismantles any notion that its bid was treated as non-responsive on
the basis
that the building plans submitted exceeded three-storeys.
[37]
Furthermore, Raubex alleged, with reference to
clause F.3.8.2 of the CIDB Standard Conditions of Tender, that its
tender had none
of the attributes that would qualify as a material
deviation. In support of this argument, Raubex put up an affidavit
from a quantity
surveyor who contended, amongst other things, that
altering the design from a four-storey building to a three-storey
building will
have no impact on the overall costing per unit.
[38]
Raubex’s
first complaint may be disposed of briefly. Although certain
documents indicated that it had initially only been
scored 83.55
points for its financial offer, the final iteration of the BEC report
showed that it had been scored 90 points for
its financial offer. It
appears from this report that Raubex was considered
‘unacceptable’
[30]
because it submitted a plan for four floors and thus exceeded the
Bitou Zoning Scheme By-law (‘the By-law’).
[39]
The BEC report was in due course adopted by the
BAC, whereafter the final decision was made by the Municipal Manager.
The finding
by the BEC that Raubex’s tender was ‘unacceptable’
was followed without demur by the BAC and the Municipal Manager.
Ultimately, the decision went against Raubex because it had not
complied with the height restriction, not because of its financial
offer.
[40]
As regards the second complaint, the BEC report
contained several anomalies:
a.
It states that there were four ‘responsive’
tenders, one of these four being Raubex. It listed tenderers which
were
found to be ‘non-responsive for evaluation and therefore
eliminated’. This list did not include Raubex. The report also
had a section headed ‘Reference/Risk checks on responsive
tenders’, under which the bidders who had not complied with
the
height restrictions were listed (including Raubex). A further section
was headed ‘Risk checks on responsive tenders’.
Once
again, Raubex was described under this heading. All of this indicates
that the BEC considered Raubex to be a ‘responsive’
tender. The Municipality did not explain why Raubex’s tender
was simultaneously described as ‘responsive’ and
‘unacceptable’.
b.
The BEC report also recorded that ‘quality’
shall be scored by evaluating, amongst other things, ‘Compliance
with
Land Development Parameters’ – for which 1.25 points
were allocated. Of these 1.25 points, 0.25 points were for
‘Compliance
with Height 10.67m & 3 Storey’. Again,
the Municipality did not explain why it scored bidders for compliance
with the
height restrictions (a meagre 0.25 points), only to exclude
them for non-compliance with that same requirement.
c.
The
report ranked three of the bidders, albeit ‘for indicative
purposes only’. Raubex occupied the top spot. If Raubex
was to
be excluded for non-compliance with tender conditions, why place it
in a ranking list, even if the list was only for indicative
purposes?
Generally, only responsive bidders are ranked.
[31]
[41]
Carnivore mounted a strong defence of the
Municipality’s decision. However, its position was undermined
by the fact that the
Municipality failed to respond to certain
allegations made by Raubex. In particular, the Municipality did not
deny that it knew
that Raubex was willing and able to build the
housing units on a three-level construction model and this adjustment
would not affect
the bid price. Nor did the Municipality address the
allegations made by Raubex’s quantity surveyor.
[42]
Although the BEC report contains the several
anomalies described above, properly construed it is apparent that
Raubex’s non-compliance
with the height restrictions
constituted the ground for rejecting Raubex’s bid. The
anomalies, while unfortunate and confusing,
are not fatal to the
decision.
[43]
In
relation to responsiveness and acceptability, there is a helpful
discussion of the legal principles in
Norland
Construction
.
[32]
According to Govindjee J there is no formula for evaluating
responsiveness and acceptability and the consequences of
non-compliance
may vary depending on factors such as the purpose and
materiality of the bid requirement in question and the extent of
compliance.
[33]
The
learned judge referred to an article by Volmink,
[34]
who opined that the courts must enquire into the underlying objective
and materiality of a bid requirement to ascertain whether
its purpose
was in fact met despite less than perfect compliance. A decision
whether to exclude a non-compliant bidder from a bid
process will
depend on a variety of factors including: the wording of the request
for proposal, the materiality of the unfulfilled
requirements, the
degree of non-compliance and the purpose of the requirement.
Govindjee J noted further that a
failure
to comply with prescribed conditions would result in a tender being
disqualified as an acceptable tender, unless those
conditions were immaterial, unreasonable or unconstitutional.
Whether
or not a deviation or qualification is material is a question to be
determined by the bid evaluation committee in its discretion,
taking
into account the set eligibility criteria.
[35]
[44]
Raubex submitted that the reliance upon the height
deviation was an afterthought, and the officials misconstrued their
powers and
made an error of law. I do not agree. The subsequent BAC
minutes show that the BAC endorsed the BEC’s view that Raubex’s
bid was ‘unacceptable’ and concurred that there was only
one responsive bid. The Municipality therefore adopted the
view that
Raubex’s bid was non-responsive prior to awarding the tender to
Carnivore. This is not one of those cases where
a decision-maker
justifies his or her decision with reasons concocted after the
decision has been challenged.
[45]
Raubex also contended that the tender
documentation did not state explicitly that a bid would be
disqualified if it proposed something
beyond the existing zoning. The
tender notice did provide, as its first rule, that tenders are to be
completed in accordance with
the conditions and tender rules
contained in the tender document. The Tender Specifications stated
that the By-law and the Rezoning
Approval formed part of the
applicable ‘standards, specifications and regulations’.
Furthermore, under the heading
‘specifications / requirements’,
it stated ‘(t)he development
shall
adhere to the development parameters of the
relevant zoning and Town Planning approval, as well as the conditions
of the rezoning
approval date 17 June 2020.’ (Emphasis added.)
The Rezoning Approval, which was annexed, stated that a departure to
allow
for four, rather than three, storeys, and for the overall
height restriction to be increased from 10.6 m to 12.64 m, had been
refused.
In my view, bidders should have appreciated that the height
restrictions were mandatory.
[46]
Raubex
submitted further that it should have been afforded an opportunity to
clarify its design and its failure to do so was procedurally
unfair.
The circumstances in which a bidder is entitled to be given such an
opportunity are discussed by Hoexter and Penfold in
Administrative
Law in South Africa
.
[36]
They note that if the bid is to be rejected on extraneous grounds,
then an opportunity to respond should be given. One example
is where
a disparaging report from a third party casts doubt on the competence
of the bidder, in which case the bidder should be
heard on the
alleged basis for rejecting its bid. This is not such a case.
[47]
Where a bidder is rejected on account of
non-compliance with tender conditions different considerations arise.
Hoexter and Penfold
express the view that in such an instance there
will generally be no obligation to allow that bidder to make further
representations
before rejecting its bid. I agree. There was
accordingly no procedural unfairness on this count.
[48]
As to
materiality,
WDR
Earthmoving Enterprises v The Joe Gqabi District Municipality
[37]
is
authority for the proposition that regulatory non-compliance is
axiomatically material. Similarly, in
Ndodana
the
court held that a
tenderer
who disregards mandatory bid requirements cannot complain if its bid
is declared non-responsive.
[38]
A
study of the case law reveals several instances where non-compliance
with tender requirements, even of a relatively insignificant
nature,
justified the bid being regarded as non-responsive.
[39]
In my view, the requirement that proposals comply with the height
restriction is not ‘
immaterial,
unreasonable or unconstitutional’.
[49]
Furthermore, even if Raubex was able to cure the
defect in its bid, as it contends, I do not think the Municipality
was obliged
to indulge Raubex by providing it with such an
opportunity. This would not be fair on the other bidders. It follows
that even if
the Municipality did know that Raubex could adjust its
design without altering the bid price, it was not required to allow
Raubex
an opportunity to do so.
[50]
For all these reasons, and notwithstanding the
anomalies and weaknesses identified above, I am not satisfied that
Raubex has shown
that the Municipality acted unlawfully in so far as
it determined that Raubex’s bid was unacceptable or
non-responsive. The
application thus falls to be dismissed.
[51]
For the sake of completeness, I note that Raubex
asserted in its supplementary founding affidavit that the
Municipality had failed
to consider relevant information in
evaluating Carnivore’s tender. In argument Raubex’s
counsel advised that his client
was not persisting with this attack
on Carnivore’s tender.
[52]
I note further that Carnivore raised other grounds
of opposition to the application. Having regard to my findings above,
I do not
consider that it is necessary to address these further
grounds.
Oral evidence
[53]
There is one further matter that needs to be
addressed. This is the application made by Raubex at the hearing for
the matter to
be referred for oral evidence. The issue which Raubex
sought to have determined by way of oral evidence was ‘whether
(Carnivore)
complied with a responsive bid in relation to the tender
of (Raubex) which was found to be non-responsive’.
[54]
When pressed in argument, Raubex’s counsel
was unable to point to any evidence in the papers which supported an
argument that
Carnivore’s bid had been non-responsive.
[55]
The
following principles are germane:
a.
A
litigant should, as a general rule, apply for referral to oral
evidence as soon as the affidavits have been exchanged.
[40]
b.
Courts
should be astute to prevent an abuse of its process where it is
evident that a litigant is intent on a fishing expedition
to
ascertain whether there might be a case without there being any
credible reason to believe that there is one.
[41]
c.
A
party may not seek to lead oral evidence to make out a case for the
first time, by way of such oral evidence, where its case is
not
already made out by it on the papers.
[42]
d.
Similarly,
a party may not seek a referral to oral evidence in the hope that the
persons to be cross-examined may make admissions
helpful to that
party.
[43]
e.
In
exercising its discretion to order that oral evidence be heard on any
issue, this court should be guided to a large extent by
the prospects
of the oral evidence tipping the balance in favour of the applicant
for such relief.
[44]
[56]
Raubex’s application falls short on all
these counts. It was not brought as soon as the affidavits were
exchanged. Furthermore,
it seems to me that it constitutes a search
for a case which does not exist on the papers. Moreover, Raubex has
not come close
to showing that the oral evidence envisaged would tip
the balance in its favour. In the circumstances no case has been made
out
for a referral to oral evidence, and I therefore decline the
belated application for such relief.
Costs
[57]
Carnivore advanced a cogent case for the costs to
be awarded against Raubex on a punitive scale. I agree that this
litigation has
been conducted by Raubex in a haphazard fashion.
Furthermore, several allegations made in its affidavits were
inaccurate. In addition,
some of the steps taken were ill-advised. I
do not think, however, that the way the proceedings have been
conducted is so egregious
as to warrant a punitive costs order.
[58]
As regards the decision not to withdraw the
application, I do not think it was reasonable of Carnivore’s
attorneys to persistently
demand that the application be withdrawn on
the basis that the judges hearing the initial urgent application and
then Part A, had
made adverse findings in relation to the merits of
the application. For the reasons set out above, the court hearing
Part B was
not obliged to follow the approach indicated by the
earlier judges.
[59]
The stance adopted by Carnivore also displayed a
logical inconsistency. Whereas it demanded that Raubex take heed of
the findings
in the interim judgment in relation to it being
non-responsive, the finding in the same judgment that the internal
appeal had been
lodged within the 21-day period did not deter
Carnivore from arguing that the internal appeal had been late, and
the application
should not be entertained on this ground alone.
[60]
Furthermore, one of the grounds upon which the
interim interdict was refused was that an expedited review process
constituted an
alternative remedy. Having succeeded in Part A in part
on the basis that the final relief could be determined expeditiously,
it
was inappropriate for Carnivore to then demand that Part B be
abandoned on account of obiter dicta in the interim judgment.
[61]
In addition, I do not think the decision by the
Municipality to reject Raubex’s bid was unquestionably lawful.
As set out
above, there were several anomalies in the BEC report. The
correspondence sent by the Municipality to Raubex also contained
mixed
signals as to the basis for the impugned decision. Although I
have found that the decision was lawful, Raubex’s wish to
subject
the decision to judicial review was not unreasonable.
[62]
I therefore do not agree that Raubex’s
application was ‘hopeless’, nor that it was an abuse and
a waste of judicial
resources. I am also not persuaded that the
application was frivolous or vexatious. This is not an exceptional
case where a punitive
costs order is warranted.
Conclusion
[63]
To sum up: I agree with Raubex that it did not
fall foul of the obligation to exhaust its internal remedies. I am
not persuaded,
however, that the decision to eliminate Raubex and
award the contract to Carnivore was unlawful. Raubex having not
complied with
the height restrictions, the Municipality cannot be
faulted for declaring it to be non-responsive.
[64]
In the result, Part B of the application falls to
be dismissed with costs. In my view it is appropriate to award
Carnivore the costs
of two counsel, with senior counsel’s fees
to be taxed on scale C, and junior counsel’s fees to be taxed
on scale B.
DJ COOKE
ACTING
JUDGE OF THE HIGH COURT
Appearances
For applicant:
N
Cassiem SC and W van Aswegen
Instructed by:
Peyper Attorneys
For first respondent:
D
Murote
HDRS
Attorneys Inc
For second
respondent: KW Lüderitz SC and LGM
Minné
Instructed by:
Adams & Adams
[1]
Reported as
Raubex
Building (Pty) Ltd v Bitou Municipality and Another
[2025]
1 All SA 472 (WCC)
.
[2]
Ibid para 25.
[3]
Ibid para 42.
[4]
Ibid paras 16 and 24.
[5]
Ibid para 42.
[6]
Ibid para 43.
[7]
Ibid para 42.
[8]
Ibid para 44.
[9]
Standard
Bank of SA Ltd v Sewpersadh and Another
2005
(4) SA 148
(C) para 13.
[10]
Hano
Trading CC v JR 209 Investments (Pty) Ltd and Another
2013
(1) SA 161
(SCA) paras 7-14.
[11]
De
Kock v Du Plessis and Others
2024
JDR 3115 (SCA) paras 24ff.
[12]
National Gambling
Board v Premier, Kwa-Zulu Natal and Others
[2001] ZACC 8
;
2002
(2) SA 715
(CC) para 49.
[13]
Ward v Cape Peninsula
Ice Skating Club
1998
(2) SA 487
(C) at 502C-E;
Zulu
v
Minister of Defence and Others
[2005] ZAGPHC 16
;
2005
(6) SA 446
(T) (‘
Zulu
’
)
para
42.
[14]
Buthelezi and Others
v Ditsobotla Local Municipality and Others
[2021]
ZANWHC 37
(9 March 2021) para 17.
[15]
Tony Rahme Marketing
Agencies SA (Pty) Ltd and Another v Greater Johannesburg
Transitional Metropolitan Council
1997
(4) SA 213
(W) at 216C.
[16]
Para
42.
[17]
Nichol and Another v
Registrar of Pension Funds and Others
2008
(1) SA 383
(SCA) at para 15.
[18]
Dengetenge Holdings
(Pty) Ltd v Southern Sphere Mining and Development Company Ltd
2014 (5) SA 138
(CC)
para 116.
[19]
Amandla
GCF Construction CC and Another v Municipal Manager, Saldanha Bay
Municipality and Others
2018
(6) SA 63
(WCC) para 7.
[20]
Koyabe and Others v
Minister for Home Affairs and Others (Lawyers for Human Rights as
amicus curiae)
2010
(4) SA 327
(CC) (‘
Koyabe
’
)
para 47.
[21]
2013
JDR 1690 (ECG).
[22]
Ibid
p
ara
18.
[23]
Ibid
p
ara
19.
[24]
Koyabe
paras
61-2.
[25]
2014
JDR 1732 (GP) at paras 111-123. See also the discussion in
Administrative
Law in South Africa
at
654-5.
[26]
Evaluations
Enhanced Property Appraisals (Pty) Ltd v Buffalo City Metropolitan
Municipality and others
[2014]
3 All SA 560 (ECG)
.
[27]
N Steytler and J de
Visser
Local
Government Law of South Africa
Issue
17 (May 2025) §2.3.5.1.
[28]
Para 45.
[29]
Koyabe
paras
41-45.
[30]
An
acceptable tender is defined in
section
1
of
the
Preferential
Procurement Policy Framework Act 5 of 2000
,
as:
‘
any
tender which, in all respects, complies with the specifications and
conditions of tender as set out in the tender document’.
[31]
Compare
Ndodana
Consulting Engineers (Pty) Ltd and Another v South African National
Roads Agency SOC Limited and Others
2025
JDR 1066 (GP) (‘
Ndodana
’
)
where Van der Schyff J found it curious that tenders were
declared non-responsive after being ranked according
to
the points system. He observed that generally only
responsive tenders are ranked and remarked that this
contributed
to the court’s discomfort with the process
followed by SANRAL (para 20).
[32]
Norland
Construction (Pty) Ltd v Chris Hani Development Agency (SOC) and
Another
[2024]
ZAECMKHC 10 (23 January 2024) (‘
Norland
’
).
[33]
Ibid para 11.
[34]
P
Volmink ‘Legal consequences of non-compliance with bid
requirements’ (2014) 1
African
Public Procurement Law Journal
41.
[35]
Norland
para
13.
[36]
3 ed
(2021) at 517-519.
[37]
2018
JDR 1295 (SCA) para 34 (bidder only submitted two years of annual
financial statements instead of the three which had been
prescribed).
[38]
Para 51.
[39]
Examples
include
Sizabonke
Civils CC v OR Tambo District Municipality
2010
JDR 1174 (ECM) (certified copies of documents not provided);
Dr
JS Moroka Municipality v Betram (Pty) Limited
2013
JDR 2728 (SCA) (original tax clearance certificate not submitted);
Afriline
Civils (Pty) Ltd v Minister of Rural Development & Land Reform
2016
JDR 1206 (WCC) (failure (a) to furnish tax-certificate of a proposed
sub-contractor and (b) to show that its CIDB registration
was
valid); and
Prosec
Guards CC v Department of Public Works and Infrastructure and Others
2024
JDR 2197 (WCC) (did not submit a copy of a valid registration
certificate issued by the National Bargaining Council for the
Private Security Sector).
[40]
Mamadi
v Premier, Limpopo and Others
2024
(1) SA 1
(CC) para 44.
[41]
Minister
of Land Affairs and Agriculture and Others v D & F Wevell Trust
and Others
2008
(2) SA 184
(SCA) para 56.
[42]
Ibid
paras 57-59.
[43]
4
Africa Exchange (Pty) Ltd v Financial Sector Conduct Authority and
Others
2020
(6) SA 428
(GJ) para 10.
[44]
Kalil
v Decotex (Pty) Ltd and Another
1988
(1) SA 943
(A) at 979H-J. See also
Minister
of Environmental Affairs and Tourism and Another v Scenematic
Fourteen (Pty) Ltd
[2005] ZASCA 11
;
2005
(6) SA 182
(SCA) para 29.
sino noindex
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