Case Law[2024] ZAWCHC 208South Africa
My Peace Mali Investments (Pty) Ltd v Western Cape Department of Education and Others (9807/2024) [2024] ZAWCHC 208 (4 July 2024)
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
You are here:
SAFLII
>>
Databases
>>
South Africa: Western Cape High Court, Cape Town
>>
2024
>>
[2024] ZAWCHC 208
|
Noteup
|
LawCite
sino index
## My Peace Mali Investments (Pty) Ltd v Western Cape Department of Education and Others (9807/2024) [2024] ZAWCHC 208 (4 July 2024)
My Peace Mali Investments (Pty) Ltd v Western Cape Department of Education and Others (9807/2024) [2024] ZAWCHC 208 (4 July 2024)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAWCHC/Data/2024_208.html
sino date 4 July 2024
# IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
# WESTERN CAPE DIVISION,
CAPE TOWN
WESTERN CAPE DIVISION,
CAPE TOWN
#
Case Number: 9807/2024
In the matter between:
## MY
PEACE MALI INVESTMENTS (PTY)
MY
PEACE MALI INVESTMENTS (PTY)
## LIMITED
LIMITED
## Applicant
Applicant
and
WESTERN
CAPE DEPARTMENT
OF
EDUCATION
1
st
Respondent
WESTERN
CAPE DEPARTMENT
OF
INFRASTRUCTURE
2
nd
Respondent
BEN
PETA INVESTMENT HOLDINGS
(PTY)
LTD
3
rd
Respondent
##
# JUDGMENT
JUDGMENT
MAGARDIE AJ:
1.
This is an urgent application for an
interim interdict
pendente lite
.
The applicant seeks interim interdictory relief restraining the first
and second respondents from making certain payments to the
third
respondent arising from a tender awarded to it for construction works
on a pilot wastewater treatment package plant at the
Welgemeend NGK
Primary School, Western Cape.
2.
The interim interdictory relief is sought
pending the finalization of action proceedings instituted by the
applicant against the
third respondent in this court on 25 April 2024
under case no. 8513/2024.
3.
The application is opposed by the second
respondent. The third respondent was served with the application
papers on 10 May 2024.
It has filed neither a notice to oppose nor
answering affidavits.
4.
The
second
respondent
opposes
the
application
on
two
main
grounds.
Firstly, it
contends that the application is not urgent, that any urgency as
there may be, has been self-created and that the application
itself
is an abuse of process. Secondly and in relation to the merits, the
second respondent contends that there is no contractual
nexus between
the applicant and the first and second respondents and that there is
consequently no legal basis for the relief sought.
Related to this is
a contention by the second respondent that there has been a
misjoinder of the first respondent in the proceedings.
In addition,
it is contended by the second respondent that the applicant had
failed to establish the requirements for interim interdictory
relief.
On these bases, the second respondent submits that the application
should be struck from the roll alternatively dismissed
and in either
event with a punitive costs order. I shall turn to the opposing
contentions of the parties in due course after setting
out the
factual background.
## Background
Background
5.
The third respondent (‘Ben Peta’)
is a construction company. It was awarded a tender by the second
respondent (‘the
Department’) on 21 February 2023 for
construction works on a pilot wastewater treatment package plant at
the Welgemeend NGK
Primary School in the Western Cape (‘the
construction project’).
6.
The value of the contract concluded between
the Department and Ben Beta was an amount of R 2 990 333. 96 (VAT
inclusive) and the
contract period for the construction project was
stipulated to be 20.5 weeks from date of signature of the contract
between Ben
Peta and the Department.
7.
Ben Peta commenced with the construction
works in May 2023, which in terms of the contract were due to be
completed by July 2023.
Ben Peta was unable to meet the July 2023
deadline provided for in terms of its contract with the Department.
It was then that
the applicant (‘My Peace Investments’),
a small enterprise civil engineering company, entered the picture. It
did so
however, ultimately and unfortunately, to its eventual
detriment as demonstrated by the chronology below.
8.
Mr. Malubekho Mndayi (‘Mr Mndayi’),
the director of My Peace Investments, had been introduced to Ben Peta
by Mr. Mzukisi
Sakata (‘Mr Sakata’) of Lilitha Project
Managers, an acquaintance of Mr. Ntobeko Boyana (‘Mr Boyana’),
the Chief Executive Officer and director of Ben Peta. It is apparent
from a series of Whatsapp messages attached to the papers and
which
occurred between Mr Mndayi of My Peace Investments and Mr Boyana of
Ben Peta, that as early as 8 August 2023, Mr Boyana was
desperately
seeking assistance to rescue the failing project. It was agreed that
My Peace Investments would take over the whole
construction project,
which Ben Peta plainly had been unable to complete. For example, on 8
August 2023 Mr. Boyana sent a whatsapp
message to Mr. Mndayi in which
he stated “…
Just to
confirm, your intervention will be taking over everything including
electrical work, not only civil work?”.
Mr Mndayi replied in the affirmative.
9.
Following these discussions and on 22
August 2023 Ben Peta, represented by Mr. Boyana and My Peace
Investments, represented by Mr.
Mndayi, concluded a service level
agreement (‘SLA’) in terms of which My Peace Investments
was appointed as a sub-contractor
of Ben Peta to render civil works
in connection with the construction project. According to My Peace
Investments, it was familiar
with this type of project and was
appointed as the sub-contractor by Ben Peta to take control of and
rescue the construction project
as the project was in jeopardy at
that juncture. It was further alleged by My Peace Investments that
prior to entering into the
SLA, it was apparent to it that Ben Peta
did not possess ample cash flow to purchase materials for the
construction project. As
such, the materials would have to be
procured by My Peace Investments and the costs thereof later
recovered from Ben Peta when
it received payments from the Department
in respect of the project.
10.
The Department for its part states that it
has no knowledge of these arrangements because it was not party to
the agreements between
Ben Peta and My Peace Investments. It is
however clear Ben Peta had at that stage not complied with its
obligations in terms of
the contract for the construction works and
that on the Department’s own version, as at 30 August 2023, Ben
Peta had only
completed about 55% of the works for the project,
amounting to a sum of R1,1 million, which amount appears to have been
paid to
Ben Peta notwithstanding its failure to perform on the
construction project. I therefore accept that it is more probable
than not
that at the time when My Peace Investments was appointed as
a sub-contractor for the construction project, the project timelines
had not been adhered to by Ben Peta and that the construction project
was indeed in serious jeopardy, as My Peace Investments contends
to
have been the case.
11.
The SLA concluded between Ben Peta and My
Peace Investments on 22 August 2023 inter-alia provided that the
agreement would commence
on 19 August 2023 and subject to further
extensions, would terminate on 8 September 2023, set out the agreed
scope of the civil
engineering works to be conducted and the amount
to be paid to My Peace Investments by Ben Peta for the works. The
civil engineering
works to be conducted by My Peace Investments
included
fencing,
paving,
sewer
and
wetland
works
and
additional works relating to the control room and fusion reactor unit
for the
wastewater
treatment plant.
12.
The total value of the agreed works for
which My Peace Investments was sub-contracted in terms of the SLA,
amounted to R1 808 572.19.
Clause B of the SLA provided that My Peace
Investments was to be paid within 5 days of receipt of payment from
‘the Client’
(i.e. the Department) and that Ben Peta
would take all reasonable measures to ensure timely payment of all
invoices.
13.
My Peace Investments commenced rendering
the civil engineering work on 19 August 2023 including procuring and
supplying building
materials for the construction project. At this
stage, the 14 July 2023 completion date for the project, as provided
for in terms
of Ben Peta’s contract with the Department, had
already lapsed. The completion date had however been extended by the
Department
to 30 August 2023. This took place by way of a written
extension which was recommended on 24 July 2023 by Ms. Onelisa
Mabetshe,
the Project Leader of the construction project and approved
by the Department’s EID Director, Mr Phillip Niewoudt, on 7
August
2023.
14.
The contract between the Department and Ben
Peta came to an end on 30 August 2023 and as stated earlier, it is
common cause that
at that stage, Ben Peta had only completed 55% of
the agreed works in respect of the construction project. As set out
below however,
it is apparent that construction work on the project
continued after August 2023.
15.
During November 2023, discussions took
place between My Peace Investments and Ben Peta regarding progress of
the project, its finalization
and payment for the services rendered
by My Peace Investments to date. It was agreed that Ben Peta would
make part payment by 15
December 2023. The relationship between My
Peace Investments and Ben Peta then began to sour as by 15 December
2023, no payment
had been made by Ben Peta as agreed. According to
the whatsapp exchanges between Mr Mndayi and Mr Boyana during
December 2023,
on 15 December 2023 Mr Boyana stated that he had
spoken to ‘the customer to follow up’ and that payment
was expected
that following Monday i.e. 18 December 2023. On 18
December 2023 Mr Boyana sent a further whatsapp to Mr Mndayi, stating
that the
expected payment had not been received yet, however he was
following up on a regular basis and would keep Mr Mndayi updated.
According
to Mr Mndayi, Mr Boyana and Ben Peta have been silent ever
since then and appear to be scrupulously avoiding both Mr Mndayi and
his attorneys’ enquiries regarding the payment due to My Peace
Investments for its work on the project.
16.
During early February 2024, the site
engineer conducted an assessment on the site and confirmed that an
amount of R694 143.71 was
due to My Peace Investments in respect of
work which it had completed on the site as at that date. It is common
cause that it is
practice in the building industry for a site
engineer to conduct an assessment of the site to evaluate what work
had been completed
and for payment to be made based on that
assessment and valuation.
17.
On 23 February 2024 My Peace Investments
rendered and delivered an invoice to Ben Peta recording an amount due
of R 890 265.23 in
respect of services rendered and materials
supplied by My Peace Investments as well as VAT. The amount was
comprised of R694 143.71
in respect of work completed as at the date
of the invoice, R80 000.00 in respect of 80% of the materials
procured and supplied
by My Peace Investments and VAT in the amount
of R116 121.55. No payment was received in respect of the invoice and
on 14 March
2024, My Peace Investments approached its attorneys of
record, Marais Muller Hendricks Attorneys (‘MMH’) in
order to
elicit a response and negotiate payment, failing which to
assist the applicant to institute legal action against Ben Peta.
18.
A number of unsuccessful attempts were made
by MMH to contact Mr Boyana telephonically during March 2023 and an
email regarding
the matter was directed to him on 14 March 2024. The
email inter-alia confirmed that My Peace Investments had vacated the
site
until an amicable settlement could be reached and set out
various suggestions for the completion of the project and resolution
of the issue of non-payment. These proposals included My Peace
Investments taking over the construction works for its own account.
The email was directed to Mr Boyana, Mr Sakata of Lilitha Consulting
as well as Ms. Mabetshe, the Department’s Project Leader
on the
construction project. There was no response to this email either from
Mr Boyana or from Ms. Mabetshe.
19.
On 3 April 2024 Mr Sakata of Lilitha
Consulting, who it will be recalled had introduced the parties,
acknowledged receipt of the
email from MMH. He urged Mr Boyana and
Ben Peta to respond to the letter in order for the parties to reach
an amicable solution.
20.
It is common cause that approximately two
weeks later and on 15 April 2024, Mr Peter Truter of MMH contacted
Ms. Mabetshe, the Department’s
Project Leader on the
construction project, to discuss the matter and the way forward in
respect of the project. During this telephonic
conversation, the
contents of which were confirmed on affidavit by Mr Peter Truter of
MMH, it was then discovered that the Department
was in the process of
finalizing payment to Ben Peta and finalizing talks to terminate the
contract with it and appoint a new contractor.
In its answering
affidavit, the Department adopts a somewhat different take on this
telephonic discussion with Ms. Mabetshe and
states that she was under
the incorrect impression that the contract with Ben Peta was due to
be terminated for lack of progress,
when in fact the correct
position, according to the Department, was that the contract had
already expired on 30 August 2023 and
had not been extended further
by the Department.
21.
In my view this varying recollection of the
telephone discussion is of little moment, because what is clear and
undisputed on the
papers, is that during the telephone discussion on
15 April 2024, Ms. Mabetshe informed Mr Truter that payments had
already been
made to Ben Peta for works which it had duly completed
on the project. The deponent to the Department’s answering
affidavit
and indeed Ms. Mabetshe herself does not deny that she also
informed Mr Truter that the Department was in the process of
“…
finalizing payment’
to Ben Peta
.”
This is an aspect of some significance, to
which I will later return later.
22.
On 17 April 2024, two days after the
telephonic discussion between Mr Truter of MMH and Ms. Mabetshe in
which she advised that payment
had already been made to Ben Peta, MMH
directed a letter to the Department including Ms. Mabetshe as well as
officials of the Department
of Education, setting out the history of
the matter and giving notice of the intention of My Peace Investments
to apply to the
High Court for an interdict restraining the
Department from making payment to Ben Peta pending the finalization
of action proceedings
by My Peace Investments for payment of the
amounts due to it. The letter requested that the Department stay all
payments due to
Ben Peta in respect of the project as a real risk
existed that it would not make payment to My Peace Investments. The
letter concluded
by stating that the High Court application would be
made as soon as possible with the aim of being in court by Monday 22
April
2024.
23.
The letter was responded to on 25 April
2024 by Ms. Marianna Harrison, the Acting Director: Education
Infrastructure in the Department.
In her response, Ms. Harrison
stated that the tender contract between the Department and Ben Peta
had come to an end on 30 August
2023. The response noted the
existence of a dispute between My Peace Investments and Ben Peta but
stated that the Department was
only able to ‘note’ this
dispute as it was not a
party
to
the
contractual
relationship
between
Ben
Peta
and
My
Peace
Investments and that My Peace Investments had ‘not yet secured
its claim against Ben Peta in form of a judgment debt’.
Ms. Harrison went on to record the
following:
‘
3.
Payment have
(sic)
already been made to Ben Peta in lieu of
completed works certified by the Principal Agent on the project. The
department is in the
process of finalizing the certification of
further works carried out on the project, which process will
determine if further payment
might be due to Ben Peta or not.’
5.
Given that there is no contractual
basis upon which the department is to make payment directly to your
client (for services rendered
to Ben Peta) any payments that may
become due to Ben Peta can’t be withhold
(sic)
as a result of the unresolved dispute
between your client and Ben Peta. There is simply no basis in
contract or in law for the department
to do so.’
24.
The reference by Ms. Harrison to the
department making payment directly to My Peace Investments is of
course incorrect. Mr Truter’s
letter of 17 April 2024 did not
require or suggest that payment be made directly to My Peace
Investments. What was requested was
that further payments to Ben Peta
be stayed as there was a real risk of Ben Peta not paying the monies
which were undisputably
due to My Peace Investments after it had
received payment from the Department.
25.
Ms. Harrison concluded her response by
noting the intention of My Peace Investments to approach the court
for urgent interdictory
relief and stated that the Department “…
will
consider its position upon service on it of such an application
.”
26.
On 30 April 2024 MMH delivered a notice of
breach to My Peace Investments demanding rectification of the breach
and payment of the
amounts due to it within 7 days, failing which the
agreement between the parties was terminated.
The
letter
recorded
that
Ben
Peta
had
failed
to
make
any payments to My Peace Investments
notwithstanding the services rendered to it by My Peace Investments
and despite Ben Peta having
already received part payment from the
Department. There was no response to this letter.
27.
According to My Peace Investments, as at
May 2024, it had not been paid by Ben Peta at all notwithstanding the
fact that Ben Peta
had been paid by the Department and despite it
having completed the majority of the civil engineering work
stipulated in the SLA,
with item 6 (fencing), still to be performed.
The fencing item formed a large portion of the balance of the
contract price and
in addition thereto, it had procured and supplied
materials valued at approximately R100 000.00. It maintained that Ben
Peta has
no moveable assets or immovable property on which it could
execute to recover the amounts due to it and that as a small
enterprise,
the failure to secure these monies due to it would
severely compromise its ability to conduct further business and would
constitute
a death nail to its operations and business.
28.
The present application was launched on 7
May 2024, served on the Department the following day and set down for
hearing in the Fast
Lane of this court on 15 May 2024. The Department
filed its answering affidavit on 14 May 2024, the day before the
hearing of the
application.
29.
I turn now to the grounds of opposition
advanced by the Department and the merits of the application.
## Misjoinder
Misjoinder
30.
According to the Department, there has been
a misjoinder of the first respondent, the provincial Department of
Education. It was
contended by the Department that the latter
department had no interest in the proceedings and consequently should
not have been
cited as a party to the application. In response,
My
Peace
Investments
contended
that
at
no
stage
prior
to
the
institution of the application had it been advised that the
provincial Department of Education was not a party to the
proceedings.
This is clear from the correspondence which MMH had
addressed to both departments.
31.
The Department did not expressly raise the
issue of misjoinder as a point
in limine
nor did it seek any consequential
relief, such as dismissal of the application, pursuant thereto. The
misjoinder point was not pressed
by the Department with any degree of
enthusiasm in oral argument. This was hardly surprising. The alleged
misjoinder of the first
respondent has no bearing on the merits of
the application between My Peace Investments and the Department. Nor
could it in my
view be seriously suggested that there was any
prejudice to the Department arising from the joinder of the first
respondent.
32.
In any event, the application was served on
the first respondent, which elected not to oppose the application and
consequently did
not raise a point of misjoinder. It was for the
first respondent, not the second respondent, to object to its joinder
if it was
the view that it should not have been joined as a party to
the application. The misjoinder point has no merit.
## Urgency
Urgency
33.
The Department contended that the
application lacked urgency and that even if there was any urgency, it
had been self-created by
My Peace Investments. It was further
contended that the application was an abuse of process in that it had
been set down for hearing
based on events dating back some months ago
and in a manner which left the respondents with very little time to
file answering
affidavits.
34.
According to the Department, the Applicant
had been aware of its claim against Ben Peta since December 2023 and
had not taken any
action to pursue its claim. In addition, it was
contended that correspondence had been directed by the Department to
My Peace Investments
on 25 April 2024, at which point it had been
made clear that the contract with Ben Peta had come to an end on 30
August 2023, that
the Department had no contractual relationship with
My Peace Investments and that Ben Peta had already been paid for all
the works
which had been carried out on the site as at that date.
35.
The absence of a contractual relationship
between My Peace Investments and the Department is an issue which
relates to the merits
of the application for interim interdictory
relief. It is difficult to see how that issue has any bearing on
whether the application
is urgent or whether the urgency has been
self- created by the applicant. The central question in relation to
urgency has nothing
to do with the absence of a contract between the
Department and My Peace Investments. The relevant question is whether
the applicant
has complied with the requirements of Rule 6(12) of the
Uniform Rules, which require the applicant to set forth explicitly
the
reasons why the application is urgent and why the applicant will
not be afforded substantial redress at a hearing in due course.
36.
In this regard, I am not persuaded by the
Department’s arguments relating to self-created urgency, based
as they are on the
premise that the trigger event for the purposes of
urgency, is 10 December 2023, that being the date on which the
Department alleges
that My Peace Investments became aware of its
claim against Ben Peta for non-payment of monies due in terms of the
SLA. Nor am
I persuaded that My Peace Investments unduly delayed in
pursuing its claim against Ben Peta and that the present application
falls
to be struck from the roll due to self-created urgency for that
reason. Both arguments and the underlying premises on which they
are
based, are in my view unavailing.
37.
It does not in my view assist the
Department to resist the urgency of the application by pointing to
the lengthy previous history
of requests and demands from My Peace
Investments to Ben Peta regarding the monies it was owed in terms of
the SLA for the work
it had done on the project. What matters for the
purposes of urgency is not these repeated and unsuccessful steps that
My Peace
Investments took in relation to Ben Peta to obtain the
payment due to it, but the steps which were taken in relation to the
Department
and the outcome of those steps. In this regard, there is
no serious dispute on the papers that it was only on 25 April 2024
that
there was any formal written confirmation to My Peace
Investments from the Department, by way of Ms. Harrison’s email
on
that date, that payments had already been paid to Ben Peta and
more importantly, that the Department was in the process of
finalizing
the certification of further works carried out on the
project and that process would determine if further payment might be
due
to Ben Peta or not. Notably, the correspondence from the
Department on 25 April 2024 made it clear that the Department would
not
be providing the undertaking requested by MMH on 17 April 2024
for the Department to stay all payments due to Ben Peta in respect
of
the project. No undertaking to stay further payments was provided
either in relation to the action proceedings which MMH indicated
were
to be brought or for that matter, in relation to the present
application, notice of which was given in the letter from MMH
on 17
April 2024.
38.
This application was launched by My Peace
Investments on 7 May 2024, just over a week after the Department’s
response on 25
April 2024. In my view, this could hardly be said to
be a case of an applicant having rested on its laurels by delaying
with the
institution of urgent legal proceedings after it became
apparent that litigation was then its only recourse. A court will be
slow
to effectively non-suit a party seeking urgent relief in
circumstances where that party has first made reasonable efforts to
resolve
its dispute with an opposing party instead of hurriedly
rushing off to court.
39.
Litigation is a time consuming and
expensive business. It is dilatory conduct in its institution which
is the mischief sought to
be sanctioned by the rule against
self-created urgency, not good faith and reasonable attempts to
settle disputes before litigation
is resorted to in the first place.
40.
As to the second leg of the requirement
postulated by Rule 6(12), the absence of substantial redress at a
hearing in due course,
My Peace Investments contends that if it is
unable at this stage to secure the monies owed to it in respect of
the construction
project on which it expended its own finances to
facilitate, this will most certainly be a death nail to its ability
as a small
enterprise to further conduct its business. In addition,
it contends that if it were forced to institute proceedings in the
normal
course and obtain judgment against Ben Peta, which does not
appear to have the means to satisfy a future judgment debt, this
could
prove to be an exorbitant and lengthy exercise in futility. I
agree with Mr. Zazeraj who appeared for the applicant, that in the
context of commercial matters and depending on the facts of each
case, a crippling commercial loss, such as that which My Peace
Investments portends it will suffer if interim interdictory relief is
refused, is a factor which a court may legitimately consider
when
determining whether an urgent hearing is justified.
41.
In my judgment My Peace Investments has
demonstrated that the matter is urgent and that it will not be
afforded substantial redress
at a hearing in due course. The
applicant’s non-compliance with the Uniform Rules is
accordingly condoned and leave is granted
for the application to be
heard as one of urgency.
## Merits
Merits
42.
The granting of an interim interdict
pending the determination of an action is an extraordinary remedy
which lies within the discretionary
power of the court. In the
exercise of that discretion, the court will consider the applicant’s
prospects of success in the
pending action and weigh up in the scales
the harm which the respondent will suffer if the interdict is granted
and the respondent
turns out to be right, against on the other hand
the harm which the applicant might sustain if interim relief is
refused and the
applicant ultimately turns out to be right in the
action.
43.
The
requirements for the granting of an interim interdict have been well
established in our law since Setlogelo’s case over
a century
ago.
[1]
An
applicant seeking an interim interdict must demonstrate: a) a prima
facie right even if it is open to some doubt; (b) injury
actually
committed or reasonably apprehended; (c) the balance of convenience
and (d) the absence of similar protection by any other
remedy.
44.
As to the requirement of the prima facie
right relied on by My Peace Investments, it was contended on its
behalf that this was the
right which it derived from the SLA
concluded with Ben Peta in terms of which My Peace Investments was
entitled to payment of the
amounts agreed for the services rendered
on the project and in respect of which there had been a breach by Ben
Peta notwithstanding
that it had received payment from the
Department.
45.
That such payment to Ben Peta, in an amount
apparently in excess of R1 million was in fact made by the Department
is common cause
on the papers. As is the fact that the SLA provided
for Ben Peta to make payment to My Peace Investments within 5 days of
receipt
of payment from the Department.
46.
I am in this regard unpersuaded by the
Department’s argument that no legal cause of action has been
established by My Peace
Investments because there is no contractual
relationship between it and the Department. To my mind the argument
is erroneous. The
point is not whether My Peace Investments has an
enforceable right to claim payment of the amounts due to it directly
from the
Department. It does not advance such a claim. The point is
whether the applicant has established a
prima
facie
right to an order restraining the
Department, on an interim basis and
pendente
lite
, from making further payments to
Ben Peta of amounts rightfully due to it for services rendered in
terms of an agreement which
Ben Peta has breached, notwithstanding
having received part payment from the Department. In my view, My
Peace Investments has demonstrated
such a right at least on a
prima
facie
basis even though it may be open
to some doubt.
47.
With regard to harm reasonably apprehended,
there is no serious dispute on the papers that My Peace Investments
at its own cost
and using its own resources, completed the majority
of the civil engineering works on the construction project, which Ben
Peta
failed to complete in compliance with its contractual
obligations with the Department. Nor is it factually disputed that in
the
absence of interim relief
pendente
lite,
My Peace Investments will suffer
further harm including reputational damage arising from failure to
complete other projects due
to lack of cash flow. This requirement
for an interim interdict has in my view been established as well.
48.
The balance of convenience in my judgment
favours the granting of interim relief
pendente
lite
. In this regard, it is a
noticeable feature of this case that the Department has not contended
that it will suffer any degree of
prejudice or harm by the granting
of interim relief restraining further payments to Ben Peta pending
the determination of the action
proceedings which My Peace
Investments has instituted for payment of the monies contractually
due to it by Ben Peta. I see none.
49.
Nor has it sustainably been contended that
My Peace Investments may avail itself of an alternative remedy to
obtain payment from
an entity which has ignored its repeated pleas,
entreaties and demands for payment of amounts lawfully due and which
the evidence
demonstrates to be lacking in assets to satisfy an
exigible judgment debt obtained in due course.
50.
In my judgment, My Peace Investments has
established the requirements for an interim interdict
pendente
lite
restraining further payments to
Ben Peta pending the determination of the action proceedings.
## Costs
Costs
51.
As to costs, while it is so that costs are
generally not awarded in proceedings for interim relief and left for
determination by
the court which ultimately hears the matter, a costs
order against the Department is in my view justified in the
circumstances
of this case. My Peace Investments was compelled to
institute the application after failing to obtain an undertaking from
the Department
to stay further payments pending the determination of
the action proceedings. No undertaking was provided even pending the
institution
of this application, which then had to be brought as a
matter of urgency. And then when the application itself was brought,
no
demonstrable prejudice was suggested or advanced by the Department
in relation to the granting of interim relief pending the
determination
of the action proceedings. This notwithstanding the
absence of any factual dispute being raised regarding the work
performed by
My Peace Investments on the project, its non-payment
despite Ben Peta having been paid by the Department and the harm
which would
ensue if further payments were made to Ben Peta for work
and costs which in fact had been performed and incurred by My Peace
Investments.
## Conclusion
Conclusion
##
52.
In the result, an order in the following
terms shall issue:
52.1
The applicant’s non-compliance with
the Uniform Rules of Court is condoned and leave is granted for this
application to be
heard as one of urgency.
52.2
Pending the final determination of the
action proceedings instituted by the applicant on 25 April 2024 under
case no. 8513/2024
(“the action proceedings”):
52.2.1
The second respondent is interdicted and
restrained from releasing or paying the sum of One Million Eight
Hundred and Eight Thousand,
Five Hundred and Seventy Two Rand and
Nineteen Cents (R1 808 572.19) or any lesser amount to the third
respondent in respect of
the project known as Pilot Wastewater
Treatment Package Plant (“the project”) at the Welgemeend
NGK Primary School.
52.2.2
The second respondent is directed to
preserve the amounts set out in paragraph 52.2.1 above, pending
the finalization of the
aforementioned action proceedings.
52.2.3
The second respondent is directed to pay to
the applicant the amount awarded to the applicant in a judgment
against the third respondent
on finalization of the action
proceedings or any
lesser
amount
held
or
preserved
in
terms
of
paragraph 52.2.2 above.
52.3
The second respondent shall pay the costs
of the application on scale B.
#
# S G MAGARDIE
S G MAGARDIE
## Acting Judge of the High
Court
Acting Judge of the High
Court
## Western Cape Division
Western Cape Division
APPEARANCES:
For
the Applicant: Adv L Zazeraj
Instructed
by Marais Muller Hendricks Attorneys
For
the Second Respondent: Adv K Ngqata
Instructed
by State Attorney, Cape Town
Date
of hearing: 15 May 2024
Date
of judgment: 3 July 2024 (revised: 4 July 2024)
[1]
Setlogelo
v Setlogelo
914 AD 221
at 227.
sino noindex
make_database footer start
Similar Cases
Gamlam Investments (Pty) Ltd v Coetzee (Appeal) (A108/2025) [2025] ZAWCHC 569 (25 November 2025)
[2025] ZAWCHC 569High Court of South Africa (Western Cape Division)98% similar
Onghan Investments NO .15(Pty) Ltd v M.S. Banderker (A10/2024) [2024] ZAWCHC 94 (27 March 2024)
[2024] ZAWCHC 94High Court of South Africa (Western Cape Division)98% similar
Visigro Investments (Pty) Ltd v SFF Association (14906/2022) [2024] ZAWCHC 356 (3 June 2024)
[2024] ZAWCHC 356High Court of South Africa (Western Cape Division)97% similar
SACTWU Investments Group (Pty) Ltd v Sekunjalo Independent Media (Pty) Ltd and Another (6290/19) [2024] ZAWCHC 110 (24 April 2024)
[2024] ZAWCHC 110High Court of South Africa (Western Cape Division)97% similar
Meynell Investments Limited v Azarenka (Pty) Ltd (3706/2024) [2024] ZAWCHC 216 (22 August 2024)
[2024] ZAWCHC 216High Court of South Africa (Western Cape Division)97% similar