Case Law[2022] ZASCA 184South Africa
MEC for the Department of Public Works, Eastern Cape and Another v Ikamva Architects CC (544/2021) [2022] ZASCA 184; [2023] 1 All SA 579 (SCA); 2023 (2) SA 514 (SCA) (20 December 2022)
Supreme Court of Appeal of South Africa
20 December 2022
Headnotes
Summary: Constitutional and administrative law – just and equitable order under s 172(1)(b) of the Constitution – factors to be taken into account – default judgment valid and binding – s 165(5) of the Constitution – enforceability of court orders – order sought having effect of prohibiting execution of the default judgment – order not just and equitable – application for leave to appeal dismissed.
Judgment
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## MEC for the Department of Public Works, Eastern Cape and Another v Ikamva Architects CC (544/2021) [2022] ZASCA 184; [2023] 1 All SA 579 (SCA); 2023 (2) SA 514 (SCA) (20 December 2022)
MEC for the Department of Public Works, Eastern Cape and Another v Ikamva Architects CC (544/2021) [2022] ZASCA 184; [2023] 1 All SA 579 (SCA); 2023 (2) SA 514 (SCA) (20 December 2022)
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sino date 20 December 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case
no: 544/2021
In
the matter between:
MEC
FOR THE DEPARTMENT OF PUBLIC
WORKS,
EASTERN CAPE FIRST
APPLICANT
MEC
FOR THE DEPARTMENT OF HEALTH,
EASTERN
CAPE
SECOND APPLICANT
and
IKAMVA
ARCHITECTS
CC RESPONDENT
Neutral
citation:
MEC for the Department of Public Works,
Eastern Cape
and Another v Ikamva Architects CC
(544/2021)
[2022] ZASCA 184
(20 December 2022)
Coram:
VAN DER MERWE and GORVEN JJA and BASSON, WINDELL and
SALIE-HLOPHE AJJA
Heard
:
21 November 2022
Delivered
:
This judgment was handed down electronically by circulation to
the
parties’ representatives by email, publication on the Supreme
Court of
Appeal website and release to SAFLII. The date and
time for hand-down is deemed to be 11h00 on 20 December 2022.
Summary:
Constitutional and administrative law – just and equitable
order under s 172(1)
(b)
of the Constitution –
factors to be taken into account – default judgment valid and
binding – s 165(5) of
the Constitution –
enforceability of court orders – order sought having effect of
prohibiting execution of the default
judgment – order not just
and equitable – application for leave to appeal dismissed.
ORDER
On
appeal from:
Eastern Cape Division of the High Court, Grahamstown
(Beshe J sitting as court of first instance):
1
The application for condonation is granted. The applicants are
ordered to pay the costs
of that application, including those
consequent on the employment of two counsel, where so employed.
2
The application for leave to appeal is dismissed with costs,
including those consequent
on the employment of two counsel, where so
employed.
# JUDGMENT
JUDGMENT
Gorven
JA (Van Der Merwe JA and Basson, Windell and Salie-Hlophe AJJA
concurring)
[1]
This is an application for leave to appeal a judgment
of the Eastern
Cape Division of the High Court, Grahamstown (the high court), where
Beshe J dismissed an application with costs
and refused leave to
appeal. The matter before us was referred for oral argument in terms
of s 17(2)
(d)
of the Superior Courts Act 10 of 2013 (the
Act). The parties were informed that, if called upon to do so, they
should be prepared
to address this Court on the merits.
[2]
As part of the order referring the matter for oral argument,
the
applicants were directed to file five additional copies of the
application for leave to appeal and to comply with the rules
of this
Court by filing the record within three months of the order. Both
parties were directed to comply with all of the remaining
rules
relating to the prosecution of an appeal. The applicants failed to
comply with that direction and sought condonation for
that failure.
Condonation was opposed. The failure follows a litany of other
procedural deviations by the applicants as will be
seen in due
course. This more than justified the opposition. Despite the
prospects of success not having been evaluated as yet,
it seems to me
to be in the interests of justice to grant condonation. Apart from
other considerations, this matter raises a novel
point and cries out
for finality. However, the applicants must bear the costs of that
application, including those of two counsel,
where so employed.
[3]
The grant of leave to appeal is governed by s 17(1)
(a)
of
the Act, which reads:
‘
(1)
Leave to appeal may only be given where the judge or judges concerned
are of the opinion that –
(a)
(i) the appeal would have a reasonable prospect of success; or
(ii)
there is some other compelling reason why the appeal should be heard,
including conflicting judgments on the matter under consideration
. .
. .’
For
present purposes, it is not necessary to enter the debate whether the
test under s 17(1)
(a)
(i) is more stringent than that
under the Supreme Court Act 59 of 1959. It should also be said that
the application for leave was
based squarely on that section and not
on s 17(1)
(a)
(ii).
[4]
This matter stems from an application launched in September
2019 by
the applicants, the Member of the Executive Council for the
Department of Public Works, Eastern Cape (the Department of
Works)
and the Member of the Executive Council for the Department of Health,
Eastern Cape (the Department of Health). The department
directly
involved in the contract mentioned below was the Department of Works.
The respondent herein, as in that matter, was Ikamva
Architects CC
(Ikamva). The amended notice of motion sought the following relief
from the high court:
‘
1.
The decision of the Department of Public Works of 29 August 2002 to
appoint Ikamva Architects CC (the respondent) . . . is reviewed
and
set aside;
2.
The decision of the then Head of Department of the Department
of Public Works of 3 September 2002 to contract with
the
respondent . . . is reviewed and set aside;
3.
The contract concluded between the Department of Public Works and
Ikamva Architects CC in September 2003 . . . is declared void
ab
initio
;
4.
The respondent is entitled to no further payments under the contract
referred to in paragraph 3 above and in terms of the default
order of
Malusi AJ on 1 December 2015 . . .;
5.
Hearsay evidence contained in the founding and supplementary
affidavits of Sabelo Mgujulwa of 2 and 25 September 2019
respectively
is hereby admitted into evidence in terms of
section 3(c) of the Law of Evidence Amendment Act, to the extent
that it is necessary;
6.
The respondent is ordered to pay the costs of the application, only
in the event of its opposition.’
Although
there was some debate concerning which of two contracts was targeted,
it was clearly the contract concluded between the
Department
of Works
and Ikamva in September 2003 and not
2002.
[5]
In order to give perspective to this matter, it is necessary
to deal
in some detail with the history of the litigation leading to this
point. Suffice to say, it has travelled a long and winding
road. On 3
September 2003, the Department of Works offered to appoint
Ikamva ‘as Consulting Architects/Principal Agent’
for the
project described as ‘Frere Hospital (East London): Maintenance
(Various): Masterplan, Upgrade’. The appointment
was accepted
on 15 September 2003 (the contract). The contract did not fare
well. On 23 March 2007, the Department of
Works appointed Coega
Development Corporation (Coega) as implementing agent for the Frere
Upgrade Project. Coega in turn appointed
architects to do essentially
the same work as Ikamva had been appointed to do. Through a series of
events, which need not be detailed,
an opinion was sought as to the
legality of the appointment of Ikamva to the contract. The Department
was advised that the appointment
contravened the provisions of, inter
alia, s 217 of the Constitution and the contract was accordingly
invalid. As a result,
on 9 July 2007 the Department wrote
to Ikamva. It indicated that it had received legal advice and stated:
‘
The
procurement of the services of your firm was unlawful since, during
the appointment process, there was a failure to act in accordance
with a system that is fair, equitable, transparent, competitive and
cost-effective, as required by the Provisions of the Constitution
and
the
Preferential Procurement Policy Framework Act, 2000
, and the
Regulations promulgated in terms thereof.
Since
the aforesaid appointment of your firm is invalid, I advise that the
Department will henceforth not honour its obligations
in terms of the
aforesaid invalid appointment.’
[6]
That letter caused Ikamva to accept the repudiation,
to cancel the
contract and, on 7 August 2008, to sue the Departments for
damages incurred as a result of the cancellation.
The action was
defended and the Departments pleaded the invalidity mentioned above.
The Departments were called upon to make discovery
of relevant
documents in terms of Uniform
rule 35(1).
When they failed to do so,
Ikamva applied for an order directing them to do so within ten days
on pain of having their defences
struck out. They then discovered. On
12 October 2010, Ikamva delivered a notice in terms of
rule 35(3)
requiring further and better discovery by way of
making additional listed documents available for inspection and
copying. This
notice was ignored. On 26 September 2011,
Ikamva applied for an order compelling compliance with the
rule 35(3)
notice within a period of ten days, ‘failing which the
[Departments’] defence will be struck out and [Ikamva] will
apply for judgment . . . based on the same papers amplified if
necessary’. On 10 November 2011, Majiki AJ granted
that relief unopposed. The Departments failed to comply with the
order.
[7]
On 7 November 2012, Ikamva applied for
default
judgment on notice to the Departments. The matter came before Dukada
J, who refused default judgment and held that, despite
the terms of
the order, Ikamva had to apply to strike out the defence prior to
moving for default judgment. Ikamva appealed this
order to the full
court, which set aside his order. Not only that, but the full court
departed from the usual custom and, presumably
in the light of the
past misguided efforts of the Departments, gave guidance as to the
way forward. It indicated that, even at
that stage, the Departments
could avoid default judgment being granted by complying with the
order of Majiki AJ and applying to
have their defences reinstated.
This guidance notwithstanding, the Departments neglected to do so.
Instead, they launched an application
to reinstate their defence
without having to comply but withdrew it on the day of the hearing.
On 1 December 2015, Ikamva
applied for, and Malusi AJ
granted, default judgment for damages in the sum of R41 031 279.58.
[8]
The Departments applied for leave to appeal. This was
refused by
Malusi AJ. They then applied to rescind the default judgment.
That application was dismissed by Hartle J. Her dismissal
was
appealed to the full court, which refused the appeal. Thereafter,
this Court and, on 29 July 2019 the Constitutional
Court,
refused applications by the Departments for leave to appeal the order
of Hartle J. In their founding papers, the Departments
accepted that
‘the application for rescission has been definitively disposed
of’.
[9]
It must be clearly stated at the outset that, during
argument, any
contention that the default judgment was anything other than
competent, valid and binding was expressly abandoned.
As such, this
application for leave to appeal must be determined on that basis and
on that basis alone.
[10]
The
application under consideration was brought in the high court in
September 2019. An interim order led to a stay of execution
of the
default judgment pending the determination of the relief referred to
in paragraph 4 above. The interim order was granted
by consent, along
with one declaring that the
in
duplum
rule
[1]
would not apply to
interest on the judgment debt in order to ameliorate any prejudice to
Ikamva. Prayers 1 and 2 of the notice
of motion sought to set aside
the decisions leading to the award of the contract to Ikamva. Since
those orders would be ones made
under s172(1)
(a)
of the Constitution, the high court was urged to grant relief under
s 172(1)
(b)
in the form of orders in terms of prayers 3 and 4 thereof.
[11]
The application was opposed by Ikamva on various grounds. Some of
these were:
a)
The impugned decisions were not those which had led to the award of
the contract in question but to a prior one. This refers
to the
confusion as to whether the 2002 or 2003 contract was implicated.
b)
The delay in bringing the self-review application should non-suit the
Departments.
c)
Even if the impugned decisions did relate to the contract in
question, the case was not made out for them to be reviewed.
d)
The issue of the validity of the contract was rendered
res
judicata
by the default judgment.
Beshe
J dealt with these defences and based her decision on some of them.
[12]
In the view I take of the matter, however, these defences need not be
determined.
It is preferable to go to the heart of the relief sought
by the Departments. As mentioned, the object of the relief sought in
prayers
1-3 of the notice of motion was the relief under prayer 4.
All of the relief flowed from the provisions of s 172(1) of the
Constitution. This reads:
‘
(1)
When deciding a constitutional matter within its power, a court –
(a)
must declare that any law or conduct that is inconsistent with the
Constitution is invalid to the extent of its inconsistency;
an
(b)
may make any order that is just and equitable, including –
(i)
an order limiting the retrospective effect of the declaration of
invalidity; and
(ii)
an order suspending the declaration of invalidity for any period and
on any conditions, to allow the competent authority to
correct the
defect.’
[13]
I will assume without deciding, for present purposes, that we would
arrive
at the view that there are prospects that an appeal court
would find that:
a)
The impugned decisions were those which led to the contract on which
the default judgment was granted.
b)
The delay in the self-review did not non-suit the Departments despite
their not having launched it since 2007 when they first
became aware
of the alleged invalidity.
c)
The Departments had made out a case that the impugned decisions
amounted to ‘conduct that is inconsistent with the
Constitution’.
d)
The decisions accordingly fell to be declared invalid as envisaged in
s 172(1)
(a)
and orders issued in terms of prayers 1 and 2
of the notice of motion.
e)
The issue of the validity of the contract is not
res judicata
.
f)
A declaration should be made that the contract was void
ab
initio
.
[2]
[14]
That brings
into focus the sole remaining issue being the order sought in prayer
4 of the notice of motion. Such an order would
be based on the
provisions of s 172(1)
(b),
which empowers a court to make an order that is just and
equitable.
[3]
For the
application for leave to appeal to succeed, this Court must be ‘of
the opinion that . . . the appeal would have a
reasonable prospect of
success’. In other words that there is a reasonable prospect
that an appeal court would find that
an order should be granted that:
‘
The respondent is
entitled to no further payments under the contract referred to in
[prayer] 3 above and in terms of the default
order of Malusi AJ on 1
December 2015.’
I
now turn to this issue.
[15]
Section 172(1)
(b)
flows from a declaration of invalidity under s 172(1)
(a)
.
Unlike s 172(1)
(a)
,
which obliges a court to declare any legislation or conduct which is
incompatible with the Constitution invalid,
[4]
s 172(1)
(b)
does not make it mandatory for a court to make any order at all
following such a declaration. If the court exercises its discretion
in favour of making such an order, the court may make any order, so
long as it is just and equitable. In
Bengwenyama
Minerals (Pty) Ltd and Others v Genorah Resources (Pty) Ltd and
Others
,
the Constitutional Court held, as regards the approach to a just and
equitable remedy under s 172(1)
(b)
:
‘
I
do not think that it is wise to attempt to lay down inflexible rules
in determining a just and equitable remedy following upon
a
declaration of unlawful administrative action. The rule of law must
never be relinquished, but the circumstances of each case
must be
examined in order to determine whether factual certainty
requires some amelioration of legality and, if so, to what
extent.’
[5]
And
in
State Information Technology Agency SOC Limited v Gijima
Holdings (Pty) Limited
, the Constitutional Court held:
‘
.
. . [U]nder section 172(1)
(b)
of the Constitution, a court deciding a constitutional matter has a
wide remedial power. It is empowered to make “any order
that is
just and equitable”. So wide is that power that it is bounded
only by considerations of justice and equity.’
[6]
[16]
As a preliminary step, it is necessary to interrogate what was
requested by
the Departments in prayer 4. In argument before us, they
conceded that there was no danger that Ikamva would become entitled
to
any payments under the contract in the future. This concession was
well made since, on any version, the contract could no longer
found
any relief. On Ikamva’s version, it was cancelled after its
acceptance of the repudiation by the Department of Works.
It was this
which animated the default judgment. On the version of the
Departments, and on the assumptions referred to above, the
Departments were entitled to have the contract declared null and void
ab initio
. As such, there could be no basis for any order
proscribing future ‘payments under the contract’.
[17]
That leaves for consideration the refusal of the high court to grant
an order
that, ‘[t]he respondent is entitled to no further
payments . . . in terms of the default order of Malusi AJ’. The
Departments
were transparent as to their objective in seeking this
order. As they said in reply, ‘the Departments are resisting
payment
by way of self-review’. In sum, they sought to render
the default judgment nugatory.
[18]
It bears mention that this was not an application for an order
suspending execution
pending the outcome of proceedings to set aside
the order. Such relief is readily granted if cause is shown. The
relief sought
by the Departments is a final order, which has the
effect of permanently preventing execution by Ikamva of a valid and
binding
judgment granted in its favour. On enquiry, the Departments
accepted this to be the case. They were unable to point to any direct
authority where a court has ordered that, in the face of a valid and
binding court order, which was not susceptible of being set
aside, a
judgment creditor should be prohibited from executing on it. Nor
could I find any.
[19]
The contentions of the Departments fell essentially into two
categories: First,
that courts have previously granted orders under
s 172(1)
(b)
either for repayment of moneys or prohibiting
any further payments on invalid contracts. This, they submitted,
should apply equally
to this matter. Secondly, that it is permissible
under s 172(1)
(b)
for a court to excuse payment of a
valid and binding order of court which is not subject to challenge.
Repayments,
or a prohibition on future payments
[20]
The submission of the Departments was that:
‘
In
some cases . . . the Courts unravel the financial consequences of the
illegal contract
even after
any payment under the impugned
contract has been made, by ordering repayment.’
Reliance
was placed on such ‘return-of-payment’ orders in the
following matters:
a)
Mining
Qualifications Authority v IFU Training Institute (Pty) Ltd
.
[7]
In this matter the entity that had profited from an unlawful contract
was directed to repay the profits once these had been determined,
along with interest.
b)
Eskom
Holdings SOC Limited v McKinsey and Company Africa (Pty) Ltd and
Others
.
[8]
There, Trillian was ordered to repay to Eskom the sum of R595 228
913.29, together with interest.
c)
Corruption
Watch (NPC) (RF) v Chief Executive Officer of the South African
Social Services and Others
,
[9]
where Cash Paymaster Services was ordered to repay some R316 million
to South African Social Security Agency along with interest
and
costs. That order was confirmed on appeal by this Court.
[10]
[21]
The Departments argued that, since no payment had yet been made to
Ikamva,
an order that it was not entitled to any payments would
therefore be just and equitable. It would suffer no financial
hardship
since it would not be ordered to repay moneys. The glaring
distinction between those matters and the present one, however, is
that
in none of the others had a judgment been granted in favour of
the other contracting party. In a word, none of the matters relied
upon above bears on the present enquiry.
[22]
The
Department also sought to rely on the dictum in
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
,
[11]
where the Constitutional Court held:
‘
I
therefore make an order declaring the Reeston contract invalid, but
not setting it aside so as to preserve the rights to that
the
respondent might have been entitled. It should be noted that such an
award preserves rights which have already accrued but
does not permit
a party to obtain further rights under the invalid agreement.’
The
Departments submitted that payment of the judgment debt to Ikamva
would have the effect that further rights would accrue to
it under an
invalid agreement. This submission fails on at least two levels.
Unlike in
Buffalo City
, as has been discussed above and as
conceded by the Departments, no further rights can accrue to Ikamva
under the contract. The
right of Ikamva to execute arises from the
judgment and not the contract. In the second place, it is not a
‘further’
right since it accrued on the date default
judgment was granted. The crisp question is whether Ikamva should be
deprived of that
right.
[23]
The above discussion shows that none of the above cases provides
support for
a just and equitable order which, in effect, overrides or
renders nugatory an extant, valid, and binding court order. Historic
awards and the underlying reasoning relating to repayments or
prohibitions on future payments under contracts are clearly
distinguishable.
Permissible
for a court to excuse payment of a valid and binding order of court?
[24]
Here, the
Departments set great store by the matter of
Department
of Transport and Others v Tasima (Pty) Ltd
.
[12]
After a fixed term contract for a period of five years in favour of
Tasima had expired by effluxion of time, it was renewed on
a monthly
basis. Thereafter, the Director-General purported to extend it for
five years to 30 April 2015. The extension was
invalid. The
department accordingly stopped all payments. Tasima approached the
high court and obtained an order that the department
should comply
with its obligations under the extension ‘. . . pending the
finalisation of the dispute resolution proceedings
. . . ’. In
March 2015, Tasima launched an urgent application seeking to
hold the department and others in contempt.
This prompted a
counter-application to review and set aside the extension of the
contract on the basis that it did not comply with
s 217 of the
Constitution
[13]
and
s 38
of the
Public Finance Management Act 29 of 1999
.
[25]
The
majority in the Constitutional Court found that even if such an order
based on the invalid extension of the contract was invalid,
‘.
. . in light of section 165(5) of the Constitution, the order is
binding, irrespective of whether or not it is valid,
until set
aside’
[14]
and that,
‘[for] as long as the contract persisted, the High Court orders
had to be obeyed’.
[15]
This was based on a finding that, at the time the interim order on
which the contempt proceedings were based was granted, the judge
concerned had the authority to grant such order. The Constitutional
Court accordingly declined to treat the order as null and void,
instead holding that:
‘
The
interdict granted by Mabuse J only falls away once the
counter-application is upheld by a court. Until this point, it is
binding
and enforceable.’
[16]
This
means that, despite finding that the extension of the contract was
invalid, a court order premised on its validity remained
effective
until set aside.
[26]
Tasima
is clearly distinguishable. In the light of the
admitted validity of the default judgment in the present matter, it
differs from
a situation where the court order could be regarded as
invalid. It does not provide a basis for an order which would prevent
Ikamva
from executing pursuant to its default judgment.
Tasima
does not assist the Departments. On the contrary, it underscores the
importance of giving effect to court orders.
[27]
Turning, then, to broader considerations of the nature of court
orders in our
law, s 165(5) of the Constitution is a useful
point of departure:
‘
An
order or decision issued by a court binds all persons to whom and
organs of state to which it applies.’
This
finds firm support in s 2 of the Constitution:
‘
This
Constitution is the supreme law of the Republic; law or conduct
inconsistent with it is invalid, and the obligations imposed
by it
must be fulfilled.’
It
is clear that, if the Legislature promulgated a law which had the
effect that an order of court was not binding, that law would
offend
the principle of the separation of powers
[17]
and fall foul of s 165(5) of the Constitution. What then, of the
effect of a court order which does so?
[28]
The only
basis of which I am aware to prevent execution of a court order is if
it is set aside or abandoned. The first of these
is in the power of a
court and the second in the party in whose favour the order was
granted. There are limited procedures available
to set aside an
order. This is for at least two reasons, as indicated in
Erasmus:
Superior Court Practice
.
[18]
First, a court becomes
functus
officio
after pronouncing judgment
[19]
such that, unless specifically empowered to do so, it may generally
not amend or set aside a judgment.
[20]
Secondly, public policy requires finality in litigation.
[21]
In
Zondi
v MEC, Traditional and Local Government Affairs and Others
,
the Constitutional Court explained why this should be the case:
‘
The
parties must be assured that once an order of court has been made, it
is final and they can arrange their affairs in accordance
with
that order.’
[22]
This
was firmly underscored, particularly as regards the Constitutional
Court, in
Zuma v Secretary of the Judicial Commission of Inquiry
into Allegations of State Capture, Corruption and Fraud in the Public
Sector
Including Organs of State and others (Council for the
Advancement of the South African Constitution and another as amici
curiae)
:
‘
It
is trite that orders of this Court are final and immune from appeal.
They are, however, rescindable, and the Legislature has
carefully
augmented the common-law grounds of relief by expressly providing for
narrow grounds of rescission by crafting rule 42.
Narrow those
grounds are, for good reason, for the very notion of rescission of a
court order constitutes the exception to the
ordinary rule that court
orders, especially those of this Court, are final. By its nature the
law of rescission invites a degree
of legal uncertainty. So, to avoid
chaos, the grounds upon which rescission can be sought have been
deliberately carved out by
the Legislature.’
[23]
[29]
In the
magistrates’ courts, setting aside a judgment or order can be
achieved by way of review, rescission or appeal. In the
high court,
it can only be done by way of appeal or rescission. The power to
amend or set aside orders on appeal is specifically
provided for in
s 19
(d)
of the Act.
[24]
The Uniform
Rules of Court provide for amendment and rescission of judgments
[25]
as does the common law.
[30]
There is a plethora of authority to the effect that s 165(5)
lies at the
heart of the rule of law. In
Pheko and Others v
Ekurhuleni Metropolitan Municipality (2)
, the Constitutional
Court explained:
‘
The
rule of law, a foundational value of the Constitution, requires that
the dignity and authority of the courts be upheld. This
is crucial,
as the capacity of the courts to carry out their functions depends
upon it. As the Constitution commands, orders and
decisions issued by
a court bind all persons to whom and organs of State to which they
apply, and no person or organ of state may
interfere, in any manner,
with the functioning of the courts. It follows from this that
disobedience towards court orders or decisions
risks rendering our
courts impotent and judicial authority a mere mockery. The
effectiveness of court orders or decisions is substantially
determined by the assurance that they will be enforced.
Courts
have the power to ensure that their decisions or orders are complied
with by all and sundry, including organs of state. In
doing so,
courts are not only giving effect to the rights of the successful
litigant but also and more importantly, by acting as
guardians of the
Constitution, asserting their authority in the public interest.’
[26]
The
novel question posed in the present matter is whether, when a court
order is not susceptible of being set aside by way of rescission
or
appeal, it can be held to be just and equitable that another court
can prohibit its enforcement.
[31]
In
Provincial
Government North West and Another v Tsoga Developers CC and
Others
,
[27]
Constitutional Court, after referring to s 165(5) of the
Constitution and the need to give effect to court orders, held:
‘
.
. . [O]nce the order has been made, it is an order like any other.
That means it can only be set aside by means of a legally cognisable
process like, for example, rescission.’
[28]
This
finds echo in the present matter. The only real distinction is that
in the present matter, rescission was refused rather than
abandoned.
And later, it was held:
‘
Unless
set aside by some competent legal process, at some point [the order]
will have to be complied with.’
[29]
[32]
Relief
under s 172(1)
(b)
of the Constitution has ranged from keeping alive an invalid contract
for the public good
[30]
to
ordering repayment of ill-gotten profits derived from such a
contract, as seen above. What has not yet been ordered is that
a
valid and binding judgment may not be given effect. As was previously
indicated,
Pheko
(2)
held:
‘
The
rule of law, a foundational value of the Constitution, requires that
the dignity and authority of the courts be upheld.
.
. .
Courts
have the power to ensure that their decisions or orders are complied
with by all and sundry, including organs of state. In
doing so,
courts are not only giving effect to the rights of the successful
litigant but also and more importantly, by acting as
guardians of the
Constitution, asserting their authority in the public interest.’
[31]
This
recently received the stamp of approval in
Secretary of the
Judicial Commission of Inquiry into Allegations of State Capture,
Corruption and Fraud in the Public Sector including
Organs of State v
Zuma and Others
, which, after referring to this passage, went on
to say:
‘
Contempt
of court proceedings exist to protect the rule of law and the
authority of the judiciary. As the applicant correctly avers,
“the
authority of courts and obedience of their orders – the very
foundation of a constitutional order founded on the
rule of law –
depends on public trust and respect for the courts”’.
[32]
It
is thus no exaggeration to say that giving effect to court orders is
an incident of the rule of law. In
Mjeni v Minister of Health and
Welfare, Eastern Cape
, Jafta J said:
‘
The
constitutional right of access to courts would remain an illusion
unless orders made by the courts are capable of being enforced
by
those in whose favour such orders were made. The process of
adjudication and resolution of disputes in courts of law is not
an
end in itself but only a means thereto; the end being the enforcement
of rights or obligations defined in the court order.’
[33]
[33]
The discussion thus far has shown that the cases where repayment or
prohibition
of payment orders were granted do not provide authority
that a court may render nugatory an extant, valid, and binding court
order.
Likewise, no such authority is found in the instruments that
empower courts to set aside judgments by way of rescission or appeal.
The Constitution and rule of law establishes a strong principle
supporting the sanctity of valid and binding court orders and the
right of persons in whose favour they have issued to enforce them.
[34]
All of this must inform the question whether it can ever be just and
equitable
for a court to grant the kind of order sought in prayer 4
of the notice of motion. In the light of the sanctity of court orders
and the need to uphold the rule of law, the public interest in
finality, the Constitutional imperative that court orders must be
complied with, the lack of precedents in our law and the absence of
specific powers granted to courts to render a judgment nugatory
in
this fashion, it is my view that the discretion under s 172(1)
(b)
does not extend to orders such as that sought by the Departments in
prayer 4. Such an order is not permissible.
[35]
In prayer
4, the Departments attempted to enlist the assistance of the court in
their efforts to undermine ‘the dignity and
authority of the
courts’
[34]
by rendering
nugatory a perfectly valid, binding, enforceable, extant judgment. In
my view, this can and should not be countenanced.
I am fortified in
this conclusion by what was said in
Bengwenyama
to the effect that, in arriving at a just and equitable order under
s 172(1)
(b)
of the Constitution, ‘[t]he rule of law must never be
relinquished . . . ’.
[35]
It seems to me that the relief sought strikes at the very heart of
the Constitution and the rule of law. In these circumstances
it
cannot be just and equitable to grant prayer 4 of the notice of
motion.
[36]
All of this adds up to the conviction that, far from coming to the
opinion
that the Department has prospects of success in persuading an
appeal court that an order should be issued in terms of prayer 4 of
the notice of motion under the discretion accorded by s 172(1)
(b)
of the Constitution, there are no such prospects.
[37]
In the result:
1
The application for condonation is granted. The applicants are
ordered to pay the costs
of that application, including those
consequent on the employment of two counsel, where so employed.
2
The application for leave to appeal is dismissed with costs,
including those consequent
on the employment of two counsel, where so
employed.
____________________
T
R GORVEN
JUDGE
OF APPEAL
Appearances
For
applicants: M A Albertus SC with S Sephton
Instructed
by: State Attorney, East London
State Attorney,
Bloemfontein
For
respondent: I J Smuts SC with A G Dugmore SC
Instructed
by: Stirk Yazbek Attorneys, East London
Lovius Block Inc,
Bloemfontein
[1]
This
provides that interest must not exceed the capital sum.
[2]
As
was acknowledged by the Departments, such a declaration would be
made as part of a just and equitable order under s 172(1)
(b)
.
[3]
The inclusive relief referred to in s 172(1)
(b)
(i)
and (ii) does not apply since there is no need for:
‘
(i)
an order limiting the retrospective effect of the declaration of
invalidity; and
(ii)
an order suspending the declaration of invalidity for any period and
on any conditions, to allow the competent authority
to correct the
defect.’
In
any event this is not what was prayed for and does not form a ground
on which leave to appeal is sought.
[4]
Mazibuko
NO v Sisulu and Others NNO
[2013] ZACC 28
;
2013 (6) SA 249
(CC);
2013 (11) BCLR 1297
(CC) para
70.
[5]
Bengwenyama
Minerals (Pty) Ltd and Others v Genorah Resources (Pty) Ltd and
Others
[2010] ZACC 26
;
2011 (4) SA 113
(CC);
2011 (3) BCLR 229
(CC) para
85.
[6]
State
Information Technology Agency SOC Limited v Gijima Holdings (Pty)
Limited
[2017]
ZACC 40
;
2018 (2) SA 23
(CC);
2018 (2) BCLR 240
(CC)
para
53.
[7]
Mining
Qualifications Authority v IFU Training Institute (Pty) Ltd
[2018] ZAGPJHC 455.
[8]
Eskom
Holdings SOC Limited v McKinsey and Company Africa (Pty) Ltd and
Others
[2019] ZAGPPHC 185.
[9]
Corruption
Watch (NPC) (RF) v Chief Executive Officer of the South African
Social Services and Others
[2018] ZAGPPHC 7. The first respondent was, in fact, the Chief
Executive Officer of the South African Social Security Agency.
[10]
Cash
Paymaster Services (Pty) Ltd v Chief Executive Officer of the South
African Social Security Agency and Others
[2019] ZASCA 131
;
[2019] 4 All SA 327
(SCA).
[11]
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
[2019] ZACC 15
;
2019 (6) BCLR 661
(CC);
2019 (4) SA 331
(CC) para
105.
[12]
Department
of Transport and Others v Tasima (Pty) Ltd
[2016] ZACC 39; 2017 (2) SA 622 (CC); 2017 (1) BCLR 1 (CC).
[13]
Section 217 of the Constitution provides:
‘
(1)
When an organ of state in the national, provincial or local sphere
of government, or any other institution identified in national
legislation, contracts for goods or services, it must do so in
accordance with a system which is fair, equitable, transparent,
competitive and cost-effective.
(2)
Subsection (1) does not prevent the organs of state or institutions
referred to in that subsection from implementing a procurement
policy providing for
(a)
categories of preference in the allocation of contracts; and
(b)
the protection or advancement of persons, or categories of persons,
disadvantaged by unfair discrimination.
(3)
National legislation must prescribe a framework within which the
policy referred to in subsection (2) must be implemented.’
[14]
Tasima
fn 16
above para 180.
[15]
Ibid para 185.
[16]
Ibid para 198. Emphasis in the original. References omitted.
[17]
Ex
parte Chairperson of the Constitutional Assembly: In re
Certification of the Constitution of the Republic of SA, 1996
[1996] ZACC 26
; 1996 (4) SA 744 (CC);
1996 (10) BCLR
1253
(CC) para 106, which referred to Constitutional Principle VI
dealing with the separation of powers and held that the Constitution
complied with it:
‘
There
shall be a separation of powers between the legislature, executive
and judiciary, with appropriate checks and balances to
ensure
accountability, responsiveness and openness.’
[18]
D E
van Loggerenberg & E Bertelsmann
Erasmus:
Superior Court Practice
2 ed at D1-561f.
[19]
Firestone
South Africa (Pty) Ltd v Genticuro AG
1977 (4) SA 298
(A) at 306F-G.
[20]
Ibid.
In
Firestone
,
at 306H-307G, t
his
Court recognised that, in limited circumstances, a court may revisit
and amend its judgment:
‘
There
are, however, a few exceptions to that rule which are mentioned in
the old authorities and have been authoritatively accepted
by this
Court. Thus, provided the court is approached within a
reasonable time of its pronouncing the judgment or order,
it may
correct, alter, or supplement it in one or more of the following
cases:
(i)
The principal judgment or order may be supplemented in respect of
accessory or consequential matters, for example, costs or
interest
on the judgment debt, which the Court overlooked or inadvertently
omitted to grant . . .
(ii)
The Court may clarify its judgment or order, if, on a proper
interpretation, the meaning thereof remains obscure, ambiguous
or
otherwise uncertain, so as to give effect to its true intention,
provided it does not thereby alter “the sense and substance”
of the judgment or order . . .
.
. .
(iii)
The Court may correct a clerical, arithmetical or other error in it
judgment or order so as to give effect to its true intention
. . .
.
. .
(iv)
Where counsel has argued the merits and not the costs of a case
(which nowadays often happens since the question of
costs may depend
upon the ultimate decision on the merits), but the Court, in
granting judgment, also makes an order concerning
the costs, it may
thereafter correct, alter or supplement that order . . ..’
[21]
Zondi
v MEC for Traditional and Local Government Affairs and Others
2006 (3) SA 1
(CC);
2006 (3) BCLR 423
(CC) para 27.
[22]
Ibid.
[23]
Zuma v
Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
Including
Organs of State and others (Council for the Advancement of the South
African Constitution and another as amici curiae)
[2021] ZACC 28
;
2021 (11) BCLR 1263
(CC) para 82, citing with
approval
Vilvanathan
v Louw NO
2010 (5) SA 17
(WCC);
[2011] 2 All SA 331
(WCC) at 28J-29C.
[24]
Section 19
(d)
provides:
‘
The
Supreme Court of Appeal or a Division exercising appeal jurisdiction
may, in addition to any power as may specifically be
provided for in
any other law –
. . .
(d)
confirm, amend or set aside the decision which is
the subject of the appeal and render any decision which the
circumstances may
require.’
[25]
Rules
31(2)
(b)
and 31(6) and Rule 42 deal with the amendment or rescission of
judgments.
[26]
Pheko
and Others v Ekurhuleni Metropolitan Municipality (2)
[2015] ZACC 10
;
2015 (5) SA 600
(CC);
2015 (6) BCLR 711
(CC) paras 1
and 2.
[27]
Provincial
Government North West and Another v Tsoga Developers CC and Others
[2016] ZACC 9; 2016 (5) BCLR 687 (CC).
[28]
Ibid para 52.
[29]
Ibid para 57. This followed a similar
dictum
in
Bezuidenhout
v Patensie Sitrus Beherend BPK
2001 (2) SA 224
(E) at 229B-C, which found favour with this Court in
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development Company
Ltd and Others
[2013] ZASCA 5
;
[2013] 2 All SA 251
(SCA) para 17.
[30]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer of the South African Social Security Agency
and
Others (No 2)
[2014] ZACC 12; 2014 (4) SA 179 (CC); 2014 (6) BCLR 641 (CC).
[31]
Pheko
(2)
fn
32 above paras 1 and 2.
[32]
Secretary,
Judicial Commission of Inquiry into Allegations of State Capture,
Corruption and Fraud in the Public Sector including
Organs of State
v Zuma
[2021] ZACC 18
;
2021 (5) SA 327
(CC);
2021 (9) BCLR 992
(CC)
para
27.
[33]
Mjeni v
Minister of Health and Welfare, Eastern Cape
2000 (4) SA 446
(TkH) at 453C-D. Cited with approval in
Nyathi
v Member of the Executive Council for the Department of Health
Gauteng and Another
[2008] ZACC 8; 2008 (5) SA 94 (CC); 2008 (9) BCLR 865 (CC).
[34]
Pheko
(2)
fn
32 para 1.
[35]
Bengwenyama
Minerals (Pty) Ltd and Others v Genorah Resources (Pty) Ltd and
Others
[2010] ZACC 26
;
2011 (4) SA 113
(CC);
2011 (3) BCLR 229
(CC) para
85.
sino noindex
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