Case Law[2024] ZAGPJHC 154South Africa
Balwin Properties Ltd v Axton Matrix Construction (Pty) Ltd and Another (21/56565) [2024] ZAGPJHC 154 (19 February 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
19 February 2024
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## Balwin Properties Ltd v Axton Matrix Construction (Pty) Ltd and Another (21/56565) [2024] ZAGPJHC 154 (19 February 2024)
Balwin Properties Ltd v Axton Matrix Construction (Pty) Ltd and Another (21/56565) [2024] ZAGPJHC 154 (19 February 2024)
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sino date 19 February 2024
REPUBLIC OF SOUTH
AFRICA
IN
THE HIGH COURT OF SOUTH AFRCA
GAUTENG
DIVISION, JOHANNESBURG
Case no.:
21/56565
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED.
19
February 2024
In the interlocutory
applications between:
BALWIN
PROPERTIES LTD
APPLICANT
AND
AXTOM
MATRIX CONSTRUCTION (PTY) LTD
1
st
RESPONDENT
YAHWEH
CONSTRUCTION AND PROJECTS CC
2
nd
RESPONDENT
In
the intervention application of
ATTACQ
WATERFALL INVESTMENT COMPANT (PTY)LTD
1
st
APPLICANT
WITWATERSRAND
ESTATES (PTY)LTD
2
nd
APPLICANT
BALWIN
PROPERTIES LTD
3
rd
APPLICANT
In
the review Application between
AXTON
MATRIX CONSTRUCTION (PTY) LTD
1
st
APPLICANT
YAHWEH
CONSTRUCTION AND PROJECTS CC
2
nd
APPLICANT
And
THE
HEAD OF DEPARTMENAT ROADS AND TRANDPORT
1
st
RESPONDENT
GAUTENG
PROVENCIAL GOVENMENT
THE
MEMBER OF THE EXEUTIVE COMMITTEE FOR ROADS
2
nd
RESPONDENT
AND
TRANSPORT GAUTENG PROVINCIAL
GOVERNMENT
THE
CHAIRPERSON BID ADJUDICATION COMMITTEE
3
rd
RESPONDENT
FOR
ROADS AND TRANSPORT GAUTENG PROVINCIAL
GOVERNMENT
THE
CHAIRPERSON BID EVALUATION COMMITTEE ROADS
4
th
RESPONDENT
AND
TRANSPORT GAUTENG PROVINCIAL GOVERNMENT
THE
DEPARTMENT OF ROADS AND TRANSPORT GAUTENG
5
th
RESPONDENT
PROVINCIAL
GOVERNMENT
Coram:
Salmon AJ
Date
of hearing: 19 October 2023 - (MS Teams)
Handed
down on: 19 February 2024
This
judgment is deemed to have been delivered electronically by
circulation to the parties’ representatives via email and
the
same shall be uploaded onto the caselines system.
JUDGMENT
SALMON AJ:
INTRODUCTION
1.
The proceedings before me involve
essentially an application by Balwin Properties Limited (“Balwin”)
to intervene in
an application brought by Axton Matrix Construction
(Pty) Ltd (“Axton”) and Yahweh 1 Construction &
Projects CC
(“Yahweh”) against five respondents who
circumscribe (for want of a better expression) the Gauteng Roads
Department,
and one other. Embodied in the proceedings before me are
interlocutory applications in relation to Balwin’s intervention
application.
2.
The proceedings against the Gauteng Roads
Department concern an application to review and set aside the
disqualification of Axton
and Yahweh from a tender for the
construction of a portion of the K60 Highway in Midrand. (That
application is referred to as the
“Review Application”.)
The tender was awarded to Edwin Construction (Pty) Ltd, which is
cited as the Sixth Respondent
in the Review Application.
3.
For the sake of easy reference, I refer to
Axton and Yahweh, collectively, as the “Joint Venture” or
the “Joint
Venture parties”; to the five Gauteng
Provincial Government respondents as the “Gauteng Roads
Department”; and
to Edwin Construction (Pty) Ltd as “Edwin”.
I refer to Balwin’s application to intervene in the Review
Application
as “Balwin’s Intervention Application”
and to the appurtenant interlocutory applications as the
“Interlocutory
Applications”. When I refer to parties
taking steps, and suchlike, this is to be understood - unless
obviously otherwise
- as happening via their attorneys of record.
4.
Together with Balwin, Attacq Waterfall
Investment Company (Pty) Ltd (“Attacq”) and Witwatersrand
Estates (Pty) Ltd (“Witwatersrand
Estates”) sought to
intervene in the Review Application. (I refer to Attacq,
Witwatersrand Estates and Balwin, compendiously,
as the “Developer
parties”.) Put simply, the Developer parties brought an
application to intervene based on the same
facts and same Founding
Affidavit. Axton and Yahweh agreed to the intervention by Attacq and
Witwatersrand Estates, which is now
fait
accompli
, but came to oppose the
intervention by Balwin, as they still do. The distinction in this
regard is a matter to be addressed in
due course.
5.
The Interlocutory Applications are the
following: (a) an application for the admission of a supplementary
affidavit in Balwin’s
Intervention Application; (b) an
application to amend the Notice of Motion in its Intervention
Application; and (c) an application
for condonation for the late
delivery of that application to amend.
6.
According to Mr Tshikila, who appeared for
the Joint Venture parties, Balwin’s Intervention Application is
determinative of
the Interlocutory Applications; at least, in the
following sense. If Balwin is denied the right to intervene, its
affidavit to
supplement its position in its Intervention Application,
and its application to amend the Notice of Motion in its Intervention
Application, and its application for condonation for the late
delivery of that application to amend, all become superfluous. From
a
certain perspective, there is merit in this submission.
BACKGROUND
7.
During March 2021, the Gauteng Roads
Department invited tenders for the construction of a portion of the
K60 between Maxwell Drive
and Allandale Road in Midrand. This is a
fairly major arterial bisecting what must be one of the
fastest-growing developed and
developing residential areas in
Gauteng. The land surrounding the K60 belongs to Witwatersrand
Estates, on which land both Attacq
and Balwin have major property
developments – and, as will be seen, pending property
developments.
8.
The Joint Venture submitted a tender for
the bid. During June 2021, the bid was disqualified (during the
pre-qualification stage)
on the basis that it did not comply with the
mandatory requirements of the Tender Data. In due course, the
Department awarded the
tender to Edwin. Following an urgent
application launched on 1 December 2021 by the Joint Venture, on 18
January 2022, Justice
Kathree-Setiloane interdicted those tender
parties (effectively) from concluding any contracts for the
construction of the K60,
pending the determination of a
contemporaneously-launched application by the Joint Venture to review
the grant of the tender. That
is to say, this is the Review
Application.
9.
Specifically, framed as a Rule Nisi, the
Joint Venture set out to seek an order that the Gauteng Roads
Department and Edwin show
cause why the following relief,
inter
alia
, should not be granted:
1.1
That the
decision(s), taken on or after 11 November 2021 (or thereafter), to
disqualify
alternatively
reject
the first and second applicants' tender for Tender ORT 38/11/2019 for
the Construction of Road K60 between Maxwell Drive
and Allandale Road
("the Tender") is reviewed and set aside;
1.2
Any and
all contract(s) concluded between the first and/or second and/or
third and/or fifth respondents with any other entity, pursuant
to the
aforesaid Tender is declared unlawful, invalid, reviewed and set
aside;
1.3
The Tender
is hereby awarded to the joint venture between the first
and second applicant.
1.4
In the
alternative to 1.3 above, the first and/or second and/or third and/or
fifth respondents are ordered to award the Tender to
the joint
venture between the first and second applicants.
1.5
In the
alternative to 1.4 above, the first and/or second and/or third and/or
fifth respondents are ordered to evaluate the Tender
afresh, and
include in such evaluation process the tender submitted by the joint
venture between the first and second applicants.
10.
Later,
when once the record of the Gauteng Roads Department proceedings had
become available, an amended Notice of Motion (dated
28 September
2022) revised the relief
[1]
sought by the Joint Venture parties to the following:
1.
That the decision(s), taken by the first,
alternatively third, alternatively fourth respondents in or after
June 2021, to disqualify
alternatively
reject the first and second applicants'
tender for Tender ORT 38/11/2019 for the Construction of Road K60
between Maxwell Drive
and Allandale Road ("the Tender") is
declared unlawful, invalid, reviewed and set aside.
2.
That the decision, taken by the first
respondent on or about 1 December 2021, to award the Tender to the
sixth respondent is declared
unlawful, invalid, reviewed and set
aside.
3.
Any and all contract(s) concluded between
the first and/or second and/or third and/or fifth respondents ("the
Department")
with the sixth respondent, pursuant to the
aforesaid Tender is declared unlawful, invalid, reviewed and set
aside;
4.
The first, second, third, fourth and fifth
respondents are, jointly and severally, ordered to compensate the
first and second applicants
in the sum of R27 678 596.32 exclusive of
VAT,
alternatively
such
sum as may be found by the Court as just and equitable.
5.
The amount referred to in paragraph 4 above
shall be paid within thirty (30) days of this order into a bank
account to be nominated
by (or on behalf of) the first and second
applicants, which nomination shall be made within ten (10) days of
this order.
6.
In the alternative to paragraphs 4 and 5
above:
6.1.
The Tender is hereby awarded to the joint
venture between the first and second applicant;
alternatively
6.2.
The first respondent is ordered to award
the Tender to the joint venture between the first and second
applicants;
further alternatively
6.3.
The first and/or second and/or third and/or
fifth respondents are ordered to evaluate the Tender afresh, and
include in such evaluation
process only the tenders submitted by:
6.3.1.
The joint venture between the first and
second applicants; and
6.3.2.
The sixth respondent…”
11.
The relief sought is no longer framed as a
Rule Nisi, and there are other substantive differences between this
amended Notice of
Motion and the initiating Notice of Motion (the
claim for damages, for example). Save that the pursuit of a damages
claim in Motion
proceedings – particularly for a “just
and equitable” sum - may introduce difficulties (and, in which
case, the
relief in prayer 6 of the amended Notice of Motion looms
still foremost in the Joint Venture parties’ sights as the main
relief) nothing turns on these differences for present
purposes.
12.
In the meantime, during 2017 and 2018,
Attacq and Witwatersrand Estates had entered into Memoranda of
Agreement with, in particular,
the Gauteng Department of Roads &
Transport – in due course to become the Fifth Respondent in the
Review Application.
I refer to those Memoranda of Agreement as “the
2017/18 MOA”. Shorn of frills, Attacq and Witwatersrand Estates
had
thereby committed themselves – financially, and by way of
land availability - to support the upgrade of the K60, and
had
already invested millions of rands accordingly. Although not a party
to the 2017/18 MOA, in turn, Balwin had committed financially
to
Attacq in light of its extensive residential development interests -
given the impending upgrade of the K60 - and had, accordingly,
already paid out several millions of rands.
13.
For reasons which are not relevant,
the Review Application moved somewhat slowly. In September 2022,
perturbed that their interests
were being prejudiced, the Developer
parties brought an application to intervene. According to their
Notice of Motion, the
order to be sought (once having intervened) is
to direct the Gauteng Roads Department to perform in terms of the
2017/18 MOA, “
by completing the
expeditious conclusion of the Project contemplated in such
memoranda
”. Indeed, that
‘project’ was and is the K60 upgrade which is what the
tender was all about. In the Founding Affidavit
supporting their
intervention, the Developer parties say they are not partial to who
gets the tender; just that the upgrade must
take place –
because, for so long as it does not, their prejudice grows. In due
course, Justice Wepener was appointed to
case manage the proceedings.
(Several meetings have been held with Wepener J, with resultant
directions.)
14.
On 27 September 2022, the Joint Venture
parties delivered their Replying Affidavit in the Review
Application. However, before
any order of Court effecting the
joinder of the Developer parties, information came to Balwin’s
attention which made it think
that the Joint Venture had failed to
disclose a material conflict of interest in its bid submission, and
therefore made it rethink
its position on the status of the Joint
Venture
vis à vis
the
award. It took the following steps: first, it notified Wepener
J, and the parties, that it wished to intervene in the
Review
Application instead as a respondent – in order, therefore, to
oppose
the
relief sought by the Joint Venture parties.
15.
This was by way of a letter dated 21
October 2022, which letter also alluded to an intention to file a
supplementary affidavit in
which the information in question is to be
placed before the Court relating to the review proceedings; and,
indeed, relating to
the appropriate remedy (in due course) there. The
letter did not say what the information is. Subsequent to its
receipt, the Joint
Venture informed the Developer parties that,
although they did not agree that there was any basis for their
joinder, in order to
avoid delays, they consented to all three
Developer parties joining the Review Application.
16.
Then, on 11 January 2023, by way of a
Notice annexed to a so-called supplementary affidavit that it
delivered, Balwin notified
its intention to seek the following relief
in the Review Application:
1.
Granting the
Third Applicant for Intervention leave to intervene and be joined as
the Seventh Respondent in the main application
under case no.
21/56565 so as to seek an Order in the main application
in the
following terms:
1.1
directing
the
Fifth
Main
Respondent
to
perform
in
accordance
with
its
obligations stipulated in clause 5 of the memoranda of agreement
concluded between it and the First Intervening Applicant
on around 17
February 2017 and during December
2018
,
including
by procuring the expeditious
completion
of
the Project contemplated
in
such
memoranda;
[2]
1.2
the
First and Second Applicants' application be dismissed; and
1.3
granting
costs, jointly and severally, on an attorney and client scale against
the
First
and
Second
Applicants,
and any other party
who opposes this application, jointly and severally, on a party and
party scale.
1.4
Directing
that
the
affidavit
of
Ibrahim
Mia
dated
31
August 2022
shall
serve as
the
Third Intervening
Applicant's founding affidavit for the relief sought in paragraph 1.1
above, and that the affidavit of Raaziq
Ismail to which this Notice
is attached shall serve as
the
Third
Intervening Applicant's answering affidavit in the main appl
i
cation
brought by
the
First and
Second Applicants.
17.
In short, in addition to seeking leave for
the acceptance of the initial Founding Affidavit in the Developer’s
intervention
application (in order to sustain the relief Balwin
continues to seek,
qua
applicant regarding the 2017/18 MOA) it also seeks the admission of
the supplementary affidavit, in order to serve as its
answering
affidavit in the relief it seeks,
qua
respondent, dismissing the Review
Application. This supplementary affidavit purports to explain
Balwin’s position, and references
the new information which
prompted its part
volte face
.
It might be easier to use the indicator “Supplementary
Affidavit” in its regard.
18.
Shortly after the delivery of this Notice –
annexed to the Supplementary Affidavit – steps giving rise to
the Interlocutory
Applications took place. Balwin served
a Notice to Amend the Notice of Motion in the Developer parties’
Application
to Intervene. This was in order to substitute the relief
in the initiating Notice of Motion (of the Developer parties’
intervention
application) with the relief mentioned in paragraph [16]
above. The Joint Venture parties objected to the intended amendment.
Balwin
served an application to amend but missed the regulated
deadline to do so by one day, so the Joint Venture parties filed an
irregular
proceedings Notice. Balwin then delivered an application
for condonation for being (one day) out of time, and which the Joint
Venture
parties have opposed.
19.
These interlocutories are dealt with later
on in this judgment. At this juncture, it is as well to deal with the
ostensibly anomalous
situation presented by Balwin’s revised
positioning. After all, it seeks to intervene now wearing the cap of
a Respondent
in the Review Application. However, the
mandamus
relief it intends to seek (against the
Gauteng Roads Department) in the Review Application, coupled with
references to its reliance
on a “founding affidavit” and
an “answering affidavit” indicate that it must seek, in
effect, to be applicant
and respondent in the same application. In
proceedings already somewhat mired by the involvement of several
parties with differing
interests and the attendant interlocutory
episodes, simplicity and clarity may be thought preferably as
attributes to win the day.
20.
However, as submitted by Mr Watson (who,
together with Ms Louis, appeared for Balwin), the orders sort by
Balwin wearing these two
different hats are not mutually
inconsistent. Moreover, he submitted, there could be no objection to
Balwin seeking the mandatory
order, regarding the 2017/2018 MOA, as
an applicant in one separate set of proceedings, whilst intervening
as a respondent in the
Review Application in order to oppose the
relief there sought, and then having the proceedings consolidated.
So, at first glance
perhaps procedurally unwieldy, there is nothing
juridically defective in Balwin’s approach. It might even save
everyone’s
time.
21.
Whether Balwin can seek the order regarding
the 2017/18 MOA (the
mandamus
against
the Gauteng Roads Department) – Mr Tshikila argues it cannot –
is to be addressed shortly. In any event, on
17 January 2023 and by
agreement of all the parties to the Review Application, Justice
Wepener (in case management) granted an
order joining Attacq and
Witwatersrand Estates to the Review Application, as they had sought
from the outset. Pertinently, the
Order by Justice Wepener reads:
1.
The first and second intervening applicants
be granted leave to intervene and be joined as the third and fourth
applicants in the
main application under case no. 21/56565 (“the
main application”), so as to seek an order in the main
application directing
the fifth main respondent to perform in
accordance with its obligations stipulated in clause 5 of the
memoranda of agreement concluded
between it and the first intervening
applicant on around 17 February 2017 and during December 2018,
including by procuring the
expeditious completion of the Project
contemplated in such memoranda;
2.
The affidavit filed in support of this
application shall serve as the first and second intervening
applicant’s founding affidavit
in the main application; and…”
22.
Thus, two consequences occur. First, the
Founding Affidavit of the Developer parties in their intervention
application is before
the Court in the Review Application. I revert
to the significance of this in due course. Next, the (amended) Notice
of Motion in
the Review Application must be read as incorporating a
prayer along lines which encompass the specific relief Attacq and
Witwatersrand
Estates wish to pursue (and for which Justice Wepener
authorised their joinder). It does not appear from the Caselines
record whether,
technically, an amendment to this effect has been
made to the (already once-amended) Notice of Motion in the Review
Application,
but I do not think the technicality or formality
matters.
23.
What does matter is the import of
this order. That is, of course, that Balwin’s joinder –
at least,
qua
applicant – to the Review Application is now to be determined
not on the initial Notice of Motion, nor the amended Notice
of
Motion, but with this relief in mind. This has a bearing in that it
is no longer the case that – to quote from Mr Tshikila’s
Heads of Argument:
“
the
issues presented for determination in the main application
administrative law review issues under PAJA. The question is whether
the Department’s
administrative
law obligations were fulfilled, both I the rejection of the main
applicant’s tender, and in the award of the tender to Edwin
.”
(sic)
There is now (also) a
common law
mandamus
at stake.
24.
Whether Balwin needs to seek the
mandamus
relief, given that the other Developer
parties are now doing precisely that, is another question –
though that fact does not
affect Balwin’s right or entitlement
to intervene.
INTRODUCTION TO THE
BALWIN INTERVENTION APPLICATION.
25.
Despite Mr Tshikila’s submission that
it is not necessary to deal with the Interlocutory Applications if
Balwin’s Intervention
Application is not successful, I am not
sure that it is that straight-forward, albeit initially and mostly a
sensible proposition.
26.
This is because Balwin seeks to
intervene in the Review Application, effectively, in the two respects
already referred to. Firstly,
although not in name or status as an
applicant, yet it seeks relief and therefore must be clothed and
empowered (with standing)
to do so as if an applicant - along with
the other Developer parties so as to seek the specific relief they
seek. Secondly, it
seeks to intervene (now, in name and status) as a
respondent, where it opposes the grant of the relief the Joint
Venture parties
seek in the Review Application - but on the grounds
of the new evidence which has come to light and which it wishes to
place before
the Court. The Joint Venture parties oppose Balwin’s
intervention for whatever purpose.
27.
Theoretically, the Court can grant Balwin’s
intervention to seek relief (that is to say, as an applicant) but not
grant relief
to intervene as a respondent; and, vice versa. In either
of these events, it does not axiomatically follow that the relief
sought
by Balwin in the Interlocutory Applications is to fall away,
as if any underlying
causa
has been neutered. Theoretically, the Court may still admit the
Supplementary Affidavit (to reference another instance) –
there
is a self-standing application for its admission - notwithstanding
that Balwin’s application to intervene as Seventh
Respondent in
the Review Application is dismissed. And, of course, the Court can
condone the delivery, one day out of time, of
an application to amend
notwithstanding that it declines to grant the amendment. I deduce,
therefore, that Mr Tshikila’s
point was not so much about the
interlocutories automatically falling away; but, more that, if
intervention on both scores was
not to be permitted,
ergo,
Balwin would have no standing to seek
any relief, interlocutory or otherwise.
28.
This,
in turn, plays onto the adjudication of Balwin’s
(theoretically) dichotomous intervention applications – and,
the Joint Venture parties’ opposition thereto. Whilst
Balwin’s
locus
standi
to seek leave to intervene must, and will be examined, it does seem
more than passing strange that the Joint Venture parties initially
consented to the joinder of all the Developer parties – and
Attacq and Witwatersrand Estates, indeed, have been joined thus
- yet
Balwin is now being put to the test, in order to pursue exactly the
same relief. And this, only since it placed before the
parties its
Supplementary Affidavit in which evidence newly-come-to-light is
raised. What makes this strange, is that Balwin
is being called
upon to prove its entitlement so to intervene, yet in initially
consenting to the joinder of all three Developer
parties the Joint
Venture parties had recorded their denial that
any
of them had the right to do so. The Joint Venture parties did not
record, for example, that they agreed that Attacq had
locus
standi
due to its contractual privity in light of the 2017/18 MOA, but that
Balwin did not. It is the good right of the Joint Venture
parties to
call upon opponents to prove things, but the distinction now drawn
does carry with it an element which harks towards
the admonition of
Harms DP that ‘litigation is not a game’.
[3]
It is partly this which underpins Mr Watson’s request for a
punitive costs award – something to be addressed
below.
29.
One further aspect requires comment in this
preliminary discussion. Assume Balwin had not joined with Attacq and
Witwatersrand Estates
in the attempt to intervene in the Review
Application – in other words, purely and simply to obtain a
mandamus
that the Gauteng Roads Department get a move on with the upgrade of
the K60. The unfolding scenario would have been that Attacq
and
Witwatersrand Estates would have been joined, following the agreement
thereto recorded by the Joint Venture parties. What was
to prevent
Balwin from bringing its own independent application to seek the same
mandatory interdict? Only that it had
locus
standi
to do so. If it would have
locus
standi
, it becomes difficult to
conceive of a premise upon which it should be denied leave to
intervene. There again, what was to prevent
Balwin from bringing its
own independent application to interdict the grant of an award to the
Joint Venture for the K60 project
on the basis of the information
which had latterly come its way? Only that it had
locus
standi
to do so. If it would have
locus
standi
, it becomes difficult to
conceive of a premise upon which it should be denied leave to
intervene in order to oppose the grant of
that relief.
30.
The
nevertheless persuasive arguments of both Mr Watson and Mr Tshikila
in relation to Balwin’s Intervention Application drew
no
distinction between Balwin’s position as if an applicant to
seek the
mandamus
relief, and as a respondent to have the Review Application dismissed.
It is correct, as they both submitted, that the entitlement
(with
this nomenclature I do not exclude the obtaining discretionary
elements) to intervene postulates self-interest and/or public
interest, which are different creatures in this context as the
discussion below demonstrates. But, whilst the issue – joinder
vs intervention – generally boils down to a ‘direct and
substantial interest’ evaluation, there is a distinction
[4]
,
perhaps more so in light of the fact that the
mandamus
relief must now be considered (for it would be artificial - and
formalistic in the extreme - not to do so) as being prayed for
in the
Review Application.
31.
The reason is this. Once Attacq and
Witwatersrand Estates seek the
mandamus
as they are set up to do, the question of
them
joining interested parties (notionally)
arises. Put differently, would they have not joined Balwin? And,
again put differently,
why would - or should - they have not joined
Balwin? This answer requires an enabling factual matrix, of course,
but it is not
too difficult to divine.
32.
What of the facts? Although the
Supplementary Affidavit is not, yet, the Founding Affidavit in
support of the intervention
by all three Developer parties is before
the Court. It shows certain facts, referenced below, which are not
the subject of any
genuine or
bona fide
dispute. It is perhaps worth noting that, in that Founding Affidavit,
the allegation is made that:
“
12.
The intervening applicants have a direct and material interest in the
Project, and consequently in any proceedings that may
delay or impact
its successful completion.”
33.
This allegation is admitted by the Gauteng
Roads Department in its answering affidavit. No answering affidavit
was delivered by
the Joint Venture Parties; they did, however,
deliver a “Replying Affidavit” (albethey not applicants
in casu
)
addressing allegations made by the Gauteng Roads Department in its
Answering Affidavit but in which, still, no issue is taken
with the
aforementioned allegation on behalf of,
inter
alia
, Balwin - nor the admission
thereof by the Gauteng Roads Department. (It may be mentioned,
here, that the Gauteng Roads Department
does not oppose the
mandamus
relief sought by Attacq and
Witwatersrand Estates – they say, however, that until the
interdict imposed by Kathree-Setiloane
J is lifted or overruled, they
cannot do anything.)
34.
It
is apparent from what I have recorded in the above paragraph that
there is no answer to the allegations deposed to on behalf
of the
Developer parties (including, therefore, Balwin
[5]
)
in order to substantiate the averment of their direct and substantial
interest in both the Project and in proceedings that may
delay or
impact its successful conclusion. The facts in this regard are
prefaced by the assertion of Mr Ibrahim Mia, a director
of
Witwatersrand Estates, that, although the Developer parties are
agnostic as to who is appointed to undertake the Project, their
concern is:
“…
.
to ensure that (a) the appointment process is finalised expeditiously
and without further undue delay so that the Project can
be completed
as soon as possible, and (b) the entity appointed has the necessary
expertise and experience to complete the construction
safely and
efficaciously.”
These are concerns of
moment when the interests of the Developer parties are borne in mind.
35.
The above-postulated factual matrix
embraces the following averments, which are not subject to any
dispute:
·
The Attacq Group are the founders and
developers of Waterfall City, a suburb north of Johannesburg;
·
Attacq is responsible for the development
of specific areas at the Waterfall Estate mainly focussed around the
Mall of Africa CBD
and industrial portions east of the N1;
·
Balwin is responsible
for a portion of the residential development
that has been
undertaken
at
the
Waterfall
Estate,
through
two
developments
- namely, the
Polo Fields Development
and Munyaka
Development.
It has
constructed 1020 units in the Polo Fields Development, and intends to
build a further
492 units. In
the Munyaka Development,
it has
completed
1079
units to date, and intends to build a further 4000 units;
·
The construction of
that portion of the K60 comprising the Project is essential to the
further growth and development of Waterfall
City, in that it will
connect Waterfall to an east-west transport corridor. Without it,
further development is stymied, placing
at risk 4492
units currently planned for development by Balwin and, with it,
thousands of jobs;
·
The
intervening applicants have also made substantial investments in the
Project. In terms of the 2017/18 MOA, Attacq and
Witwatersrand
Estates undertook
to
make certain
financial contributions to the Project, as well as assuming
responsibility for procuring the investigation, design,
and
supervision of construction of the Project up to completion;
·
In terms of an
agreement between Attacq and Balwin, the latter is liable to for 50%
of the additional amounts (comparing the 2017
MOA contribution and
the 2018 MOA contribution liabilities of Attacq);
·
In short, the
Developer parties are partial funders of the Project.
Delay
in completion of the Project is also prejudicing them because it has
a knock-on effect on the timing of developments art Waterfall
Estate.
Moreover, for so long as the Project is delayed, there is the
continued risk that the costs associated with it will escalate.
36.
Given that the Attacq and Balwin
developments are significantly dependant upon the upgrade of the K60
– not only timeously,
but also competently so – it seems
a challenging notion to gainsay Mr Mia’s allegation that all
the Developer parties
have a direct and substantial interest in the
Review Application. Indeed – even if to be assessed on this
basis - the
prospect of Attacq likely having to join Balwin in
an application Attacq brought to seek the relief it now seeks starts
to loom
large.
37.
But, submits Mr Tshikila, that interest –
particularly of Balwin’s (and the quality of the other
Developer parties’
interests now being historic) – is
only financial, and a financial interest does not equate to the
interest that our law
requires to constitute a party’s right to
intervene. Leaving aside a determination as to the correct
categorization of Balwin’s
interest and leaving aside the
separate issues of own-interest standing and public-interest standing
in light of the Constitution,
I am not convinced that this is
correct in absolute terms.
DIRECT AND
SUBSTANTIAL INTEREST
38.
The
authorities on joinder are plentiful and it is not necessary to
undertake any wide-ranging review. It is perhaps not even necessary
to delve into the potential distinction between joinder (proper) as
an applicant, which would require
locus
standi
to
seek the particular relief, and joinder as a respondent which would
require merely a direct and substantial interest in the subject
matter of the dispute. (I note that the current discussion concerns
the basic position at common law; I advert to the Constitutional
position further below.) The trite position is that a party who has a
direct and substantial interest in the subject matter of
a dispute
must be joined.
[6]
This is also referred to as a “legal” interest. What is
meant by this “direct and substantial interest”
was
addressed in
Henri
Viljoen
[7]
and that decision is accepted as setting the benchmark; it has been
followed and applied countless times since. In short, a purely
financial interest does not constitute a legal (direct and
substantial) interest.
39.
That control over who can, and who cannot,
make representations to a Court – for only a party to the
proceedings can –
makes for common sense. When a court of law
is seized with an adjudication about (for example) the legalities of
a right, and/or
its enforcement, downstream or upstream ramifications
or consequences to other parties which are denominated purely in
terms of
financial loss or gain are not relevant to that
legal
determination. Those interests do not
engage with the
lis.
This is why a classic example is of a sub-tenant, who has no interest
– the etymology of which is the Latin word
interesse
,
meaning “to be or lie between” - in a legal dispute
between her lessor and the owner about
their
lease.
40.
But,
as the Constitutional Court explained in
Giant
Concerts:
[8]
“
e.
Standing is not a technical or strictly defined concept. And there is
no magical formula for conferring it. It is a tool a court
employs to
determine whether a litigant is entitled to claim its time, and to
put the opposing litigant to trouble.
f.
Each case depends on its own facts. There can be no general rule
covering all cases. In each case, an applicant must show that
he or
she has the necessary interest in an infringement or a threatened
infringement. And here a measure of pragmatism is needed.”
41.
Can it really be contended that Balwin’s
interest in the Gauteng Roads Department being directed to conclude
the K60 project
as expeditiously as possible is exclusively to be
denominated in terms of “klinkende munt”? Nearly 5000
houses for
someone needing and/or wishing to live in the area cannot
be built; thousands of jobs are at risk. Even if Balwin could,
somehow,
build the units to which it is committed, the necessary
infrastructure – correctly, here, at least, framed in terms of
traffic
access – to serve the development will not be in place.
These are pithy considerations. In my view, they must mean that
Balwin
has an interest of
substance
in joining to seek the relief (that is being sought by Attacq and
Witwatersrand Estates) in the Review Application.
42.
Bearing in mind, in addition, the
Constitutional Court’s imperative cited a few paragraphs above,
this disposes of Mr Tshikila’s
submission that Balwin has
no contractual nexus with the Gauteng Roads Department, and so it
cannot seek to assert a contractual
right against the Gauteng Roads
Department – in contradistinction with Attacq and Witwatersrand
Estates. It has its own interest
of substance, and which is
toe-to-toe concerned with the
mandamus
relief.
43.
If
the aforegoing finding is wrong on the own-interest assessment, it
garners support in the approach postulated by the Constitutional
Court in
Giant
Concerts
:
[9]
“
The
interests of justice under the Constitution may require courts to be
hesitant to dispose of cases on standing alone where broader
concerns
of accountability and responsiveness may require investigation and
determination of the merits. By corollary, there may
be cases where
the interests of justice or the public interest might compel a court
to scrutinise action even if the applicant’s
standing is
questionable. When the public interest cries out for relief, an
applicant should not fail merely for acting in his
or her own
interest.”
44.
Therefore, I agree with Mr Watson’s
submissions that, also, Balwin has a public interest standing which
is triggered insofar
as the relief the Developer parties seek is
concerned. This is because, to quote from his written argument:
“
The
total economic impact of the developments, namely the impact on the
broader economy, is approximately R6.4 billion. Balwin will
also
employ, in total, 18,292 people in respect of the projects, affecting
R167 million in wage taxes to be received by the state.
The total
value of the developments, namely the value of the units sold, is
R4.8 billion, totalling R39.8million in rates and taxes
per year to
be earned by the state once completed…. Finally, the halt on
the construction of the K60 affects the traffic
flow into and around
these developments, which is dependent on the construction of the
K60.”
45.
In the circumstances, I hold in favour of
Balwin’s application for leave to intervene as if an applicant
pursuing the
mandamus
relief,
though the intervention as a respondent to oppose the relief sought
by the Joint Venture parties is not necessarily to be
determined on
the same footing.
46.
There is the question of public interest
when it comes to the award of a state tender. In this regard,
the passage from
Giant Concerts
cited above bears repetition:
“…
there
may be cases where the interests of justice or the public interest
might compel a court to scrutinise action even if the applicant’s
standing is questionable. When the public interest cries out for
relief, an applicant should not fail merely for acting in his
or her
own interest.”
47.
Put differently, can a member of the public
not put her hand up and say, “
I
have facts which did not come to light in any public participation
process but which indicate reason why the public tender should
not be
awarded to “X
””? It
is difficult to fathom a reason why a party in that position should
not be permitted to put the facts before
the Court, and make
submissions thereon. The only way someone can do so is by being a
party to the proceedings. To deny that person
the opportunity of
putting the facts before the Court – by denying it intervention
– is surely to deprive the Court
of facts which (and one
assumes for the purposes of the exercise that they are relevant) it
requires in order to dispense justice?
48.
But, as Mr Tshikila submitted, it is not so
simple. Section 38 of the Constitution grants the “
right
to approach a competent court
” to
(relevantly) “(
d) anyone acting in
the public interest
” but it is
only an entitlement where “
a right
in the bill of Rights has been infringed or threatened
.”
Therefore, Balwin still has to demonstrate the threat to a
Constitutional right before any question of public interest
is
triggered.
49.
And, Mr Tshikila continued, Balwin cannot
seek refuge under the Constitution where it did not identify the
Constitutional right
in the Founding Affidavit in support of its
intervention application.
50.
The latter is an accurate statement of fact
when regard is had to the Founding Affidavit in the Developer
parties’ intervention
application. But that related to the
intervention in order to purse common law
mandamus
relief; under consideration now is an intervention to oppose (
inter
alia
, but not indifferently so) the
grant of the contract for the K60 upgrade to the Joint Venture. Mr
Watson’s answer to this
is twofold.
51.
First,
the Review Application being proceedings in terms of the Promotion of
Administrative Justice Act, once the background facts
are all set
out, it is not necessary to specify the precise statutory
provision.
[10]
In any event, section 38 of the Constitution is to be read into PAJA
(in terms of which the Review Application is premised) following
the
dictate of Justice Cameron in
Giant
Concerts
:
[11]
“
PAJA,
which was enacted to realise section 33, confers a right to challenge
a decision in the exercise of a public power or the
performance of a
public function that “adversely affects the rights of any
person and which has a direct, external legal
effect”. PAJA
provides that “any person” may institute proceedings for
the judicial review of an administrative
action. The wide standing
provisions of section 38 were not expressly enacted as part of PAJA.
Hoexter suggests that nothing much
turns on this because “it
seems clear that the provisions of section 38 ought to be read into
the statute.” This is
correct.”
52.
Further,
as the Constitutional Court explained in
Lawyers
for Human Rights:
[12]
"[t]he issue is
always whether a person or organization acts genuinely in the public
interest. A distinction must, however,
be made between the subjective
position of the person or organization claiming to act in the public
interest on the one hand, and
whether it is, objectively speaking, in
the public interest for the particular proceedings to be brought. It
is ordinarily not
in the public interest for proceedings to be
brought in the abstract. But this is not an invariable principle.
There may be circumstances
in which it will be in the public interest
to bring proceedings even if there is no live case. The factors set
out by O'Regan J
[13]
help to determine this question. The list of relevant factors is not
closed. I would add that the degree of vulnerability of the
people
affected, the nature of the right said to be infringed, as well as
the consequences of the infringement of the right are
also important
considerations in the analysis".
[14]
53.
Moreover,
Mr Watson submitted, the position Balwin requires be put before the
Court in the Review Application has an important bearing
on a remedy.
If the tender was marred by an irregularity, and if it was a
reviewable irregularity, the Court would be obliged to
declare the
administrative decision invalid.
[15]
Thereupon, the Court must determine the remedy, which is to be a just
and equitable order.
[16]
54.
In
Allpay
,
[17]
Justice Froneman stated the following under the rubric “
Proper
approach to remedy”:
“
[29]
In
Steenkamp
Moseneke DCJ stated:
“
It goes
without saying that every improper performance of an administrative
function would implicate the Constitution and entitle
the aggrieved
party to appropriate relief. In each case the remedy must fit the
injury. The remedy must be fair to those affected
by it and yet
vindicate effectively the right violated. It must be just and
equitable in the light of the facts, the
implicated
constitutional principles, if any, and the controlling law. It is
nonetheless appropriate to note that ordinarily a
breach of
administrative justice attracts public-law remedies and not
private-law remedies. The purpose of a public-law remedy
is to
pre-empt or correct or reverse an improper administrative function. .
. Ultimately the purpose of a public remedy is to afford
the
prejudiced party administrative justice, to advance efficient and
effective public administration compelled by constitutional
precepts
and at a broader level, to entrench the rule of law.”
The emphasis on
correction and reversal of invalid administrative action is clearly
grounded in s 172(1)
(b)
of the Constitution, where it is
stated that an order of suspension of a declaration of
invalidity may be made 'to allow
the competent authority
to
correct the defect
' (own emphasis). Remedial correction is also a
logical consequence flowing from invalid and rescinded contracts
and enrichment
law generally.
[30] Logic, general
legal principle, the Constitution and the binding authority
of this court all point to a default
position that requires the
consequences of invalidity to be corrected or reversed where they can
no longer be prevented. It is
an approach that accords with the rule
of law and principle of legality.
[31]
In the merits judgment this court stated:
“
Once a
finding of invalidity . . . is made, the affected decision or conduct
must be declared unlawful and a just and equitable
order must be
made. It is at this stage that the possible inevitability of a
similar outcome, if the decision is retaken, may be
one of the
factors that will have to be considered. Any contract that flows from
the constitutional and statutory procurement framework
is concluded
not on the state entity's behalf, but on the public's behalf.
The interests of those most closely associated
with the benefits of
that contract must be given due weight. Here it will be the
imperative interests of grant beneficiaries and
particularly child
grant recipients in an uninterrupted grant system that will play a
major role. The rights or expectations of
an unsuccessful bidder will
have to be assessed in that context.'
[32]
This corrective principle operates at different levels. First,
it must be applied to correct the wrongs that led
to the
declaration of invalidity in the particular case. This must be done
by having due regard to the constitutional principles
governing
public procurement, as well as the more specific purposes of the
Agency Act. Second, in the context of public-procurement
matters
generally, priority should be given to the public good.
This means that the public interest must be assessed
not only in
relation to the immediate consequences of invalidity — in this
case the setting-aside of the contract between
SASSA and Cash
Paymaster — but also in relation to the effect of the order on
future procurement and social-security matters.
[33]
The primacy of the public interest in procurement
and social-security matters must also be taken into
account
when the rights, responsibilities and obligations of all
affected persons are assessed. This means that the enquiry cannot be
one-dimensional.
It must have a broader range.
55.
Does
Balwin fit the bill insofar as public-interest standing, to oppose
the relief sought by the Joint Venture, is concerned? Can
it be said,
objectively
speaking
,
to be acting in the public interest? According to its Supplementary
Affidavit (to serve as an Answering Affidavit in opposing
the relief
the Joint Venture seeks), where Balwin speaks as an entity
substantially and significantly (and, both directly and indirectly)
involved in the public community affected,
[18]
three grounds are raised.
56.
First, the Gauteng Roads Department has no
discretion to condone the Joint Venture’s non-compliance with
mandatory pre-qualification
criteria. This premise is argumentative,
based on the Rule 53 record. Next, the Joint Venture’s bid
actually contained two
bid amounts: one of almost R300 million, and
another of almost R340 million, giving rise to disqualification,
anyway. The third
ground is that Yahweh failed to disclose a material
conflict of interest.
57.
The
following appears from the Record of the proceedings to adjudicate
the tender – the Rule 53 record, in other words, to
be before
the Court in the Review Application
[19]
in due course. Yahweh is a close corporation. It has a sole member,
Ms Phumeza Mangcu. Ms Mangcu completed the tender documentation
on
behalf of Yahweh. One of these documents is a Compulsory Enterprise
Questionnaire. In its section 6, under the rubric “Service
of
the State” it enquires,
inter
alia,
whether
any sole proprietor, partner in a partnership, director, manager,
principal shareholder or stakeholder in a company or close
corporation is currently or has been within the last 12 months in the
service of a variety of state and municipal bodies. One of
the
identified capacities is “
a
member of an accounting authority of any national or provincial
public entity
”.
Ms Mangcu signed a declaration, on 16 April 2021, affirming that this
did not apply to her. In other words, she was not
in any such
service.
58.
Annexed to Balwin’s Supplementary
Affidavit, in support of its contention that there was a material
non-disclosure by the
Joint Venture parties, is the 2020 – 2021
Annual Report of Gauteng Enterprise Propeller. According to the
Report (a publication
of Gauteng Province) Gauteng Enterprise
Propeller is a public body established in terms of the Schedule 3C
listing of provincial
public entities as provided in the
Public
Finance Management Act 1999
. Its existence, functions and duties are
governed by the Gauteng Enterprise Propeller Act 2005. Its mandate is
to drive the revitalization
of township economies, enhanced
participation of SMMEs and Co-ops in the Province’s mainstream
economy, and the growth and
development of eleven identified sectors:
from agro-processing to tourism, to minerals beneficiation to
creative industries.
59.
According
to the Report, further, Ms Mangcu is the Deputy Chairperson of the
Board and was appointed to this position with effect
from 1 October
2020. In addition, she is the Chairperson of the Risk and Governance
Committee. The Board is identified as the “Accounting
Authority” – which it is, in terms of and for the
purposes the
Public Finance Management Act.
[20
]
60.
Prima facie,
therefore,
the declaration by Ms Mangcu that she was not a member of an
accounting authority is open to doubt and Balwin contends
that Ms
Mangcu’s position should have been disclosed in the tender bid
by the Joint Venture. Although the scope of a party’s
competence to intervene is ringfenced from the merits of the
proceedings into which it wishes to intervene, it is difficult to
assess and adjudicate
objectively
speaking
Balwin’s public interest
with a mind disabused of the information Balwin intends to be put
before the Court. For it is only
qua
party that it can put the information
before the Court, and it is equally difficult to gainsay the
suggestion that it is in the
public interest that the Court
determining the Review Application - in due course, and whatever
remedy is to follow its adjudication
– has before it the
information. This is obviously not any finding, intimated or
otherwise, on the cogency of the information
and its relevance to the
tender process. As Mr Tshikila informed me during argument, Yahweh
has an answer to the allegations.
61.
But
all this indicates, in my view, that Balwin has public interest
standing to oppose the relief sought by the Joint Venture parties,
and I hold accordingly. Yet, if that finding is wrong, in my view,
Balwin gets home on own-interest as contemplated by section
38 of the
Constitution. First, as Justice Ackermann made clear in
Ferreira
v Levin
,
[21]
although
a person acting in their own interest must allege that a right in the
Bill of Rights has been infringed or threatened,
such a person does
not have to allege that his or her
own
right has been infringed or threatened. Instead, such a person must
simply show that he or she has a sufficient interest in obtaining
the
relief claimed.
62.
Next,
in this regard, reference is also made to what Justice Cameron stated
in
Giant
Concerts
:
[22]
“
The
object of the standing requirement, the Court held, was that courts
“should not be required to deal with abstract or hypothetical
issues, and should devote its scarce resources to issues that are
properly before it”. The Court held that own-interest standing
does not require that a litigant must be the person whose
constitutional right has been infringed or threatened: “What
the
section requires is that the person concerned should make the
challenge in his or her own interest.” That was plainly the
case with the applicants. The core of their complaint was that they
were required to answer questions that might incriminate them,
and
which might later be used in evidence against them. This meant that
the provision directly affected their interests. Even though
the
“direct” interest lay in the potential impact of the
challenged provision on their interests – since no prosecution
was impending or threatened – their wish to secure a ruling on
the provision was not hypothetical or academic, but raised
a real and
substantial issue. They therefore had sufficient interest in having
it resolved.”
And,
again:
[23]
“
[42]
The impact of the Constitution on own-interest standing is evident in
Ferreira, Eisenberg
and
Kruger
.
However, it is in my view necessary to emphasise that in each of
those cases the own-interest litigant showed that his or her
interests or potential interests were “directly affected”
by the action sought to be challenged. It should be noted
that the
own-interest provision in section 38(a) is not isolated – it
stands alongside section 38(b)-(e). These provisions
create scope for
public interest, surrogate, representative and associational
challenges to illegality. The risk that an unlawful
decision could
stand because an own-interest litigant cannot establish standing is
diminished by the fact that broad categories
of other litigants, not
acting in their own interest, are entitled to bring a challenge.
[43] The own-interest
litigant must therefore demonstrate that his or her interests or
potential interests are directly affected
by the unlawfulness sought
to be impugned.”
63.
In my view, the facts set out above
encapsulate what the above authorities embrace as providing
own-interest standing as well. Accordingly,
I hold that Balwin has a
basis to intervene as a Respondent in the Review Application.
THE INTERLOCUTORY
APPLICATIONS
64.
These can be disposed of without much ado.
First, the question of condonation for Balwin seeking to amend the
Notice of Motion (in
its Application to Intervene) one day late. In
the context of the litigious water that has already passed under the
bridge, and
the time frames involved, making Balwin seek
condonation for being one day out of time is short on merit and
nothing short
of vexatious. I grant condonation, and as a mark of
disapproval the Joint Venture will pay costs on the scale of attorney
and client.
65.
Next, the amendment to the Notice of
Motion. It will be remembered that the amendment sought is of the
Notice of Motion in the original
Application to Intervene brought by
the Developer parties, in terms of which they sought leave to
intervene so as to seek the
mandamus
relief. Attacq and Witwatersrand Estates, the First and Second
Applicants in that application, have been joined. The amendment
is only that – at this stage, it is not a seeking of the relief
(and as to which is dependent upon the amendment).
66.
The
amendment sought is simply in respect of prayers in the Notice of
Motion. As Kuper J noted in
Tomassini,
[24]
not granting an amendment in certain circumstances “
might
lead to the necessity of introducing further actions in order to
arrive at the same position that could be arrived at
by a
simple amendment of the pleadings
.”
(This is the point I have made above.) True, the amendment
sought by Balwin does change the scope and referencing
of the prayers
because now it seeks to intervene as a respondent, and so the
Notice of Motion in question needs to reflect
its position as
Respondent, and also the relief relates to one of its affidavits on
record being a Founding Affidavit and another
being an Answering
Affidavit.
67.
But it is difficult to see how the
amendment
per se
causes
prejudice to the Joint Venture parties. The
mandamus
relief is already to be read into the
Notice of Motion in the Review Application. If Balwin is
granted leave to intervene
as a Respondent in the Review Application,
as I have already found, then
per force
it opposes the grant of the relief sought by the Joint Venture
parties and in which event it would ask for the application in that
regard to be dismissed anyway. Introducing a prayer for costs, now,
cannot cause prejudice if only because the award thereof –
of a
punitive nature or otherwise – is in the discretion of the
future Court and which it will exercise judicially. Either
Balwin
will make out a case for such award as it will (in due course) be
seeking, and concomitantly persuade the exercise of judicial
discretion, or it won’t.
68.
The relief governing the
positioning of the respective affidavits – one as founding and
one as answering – is also neither
here nor there when once the
intervention is to be approved. The Joint Venture parties have had
the opportunity of responding to
the allegations and may exercise
further opportunities with a Court’s leave.
69.
I therefore propose to grant the relief
sought by Balwin to amend the Notice of Motion.
70.
Lastly,
the question of the Supplementary Affidavit. Balwin seeks its
admission, in particular to serve as the Answering Affidavit
in its
opposition to the relief sought in the Review Application. Once
Balwin is granted leave to intervene
qua
Respondent,
of course, it is entitled to deliver an answering affidavit. The
Joint Venture parties have delivered an affidavit (dated
2 May 2023)
addressing the Supplementary Affidavit
[25]
- and their prejudice, if any, is minimal. Besides, it is a
long-accepted principle that a Court should be advantaged by all the
facts and legal contentions relating to the issues before it. Given
the somewhat wide-ranging scope of the relief sought from all
sides
in the Review Application, the pruning of what ought to be before the
Court and what not is an exercise that carries more
threat to the
administration of justice than it does avail. I admit the
Supplementary Affidavit.
COSTS
71.
I find for Balwin in its various
applications and (save in respect of the condonation issue and where
costs have already been decided
on the punitive scale) in my view
there is no reason why costs should not follow the result.
72.
Mr Tshikila did not, but Mr Watson does ask
for costs (where costs are sought, now) to be awarded on the punitive
scale. It is true
that the Joint Venture’s stance has been less
than conducive to a fluid processing of the litigation; they withdrew
consent
to Balwin’s intervention only when the newly-acquired
facts set out in the Supplementary Affidavit were presented; and,
they
have thrown allegations of
mala
fides
at Balwin. On the other hand, nor
has Balwin’s rather mercurial positioning contributed to a
smooth run-up to procuring a
hearing of the Review Application.
73.
It is clear that the Review Application
carries significant consequences, and with the high stakes there is
likely to abound what
could be termed, even if only euphemistically,
as gamesmanship. I do not suggest that litigating in such a way is to
be condoned,
but both sides have contributed, albeit in varying ways,
to the overall fray. I decline to grant the request for punitive
costs.
FURTHER DIRECTIONS?
74.
The question of Uniform Rule 12 arises.
This provides that, in relation to applications for leave to
intervene, the Court “
may…
give such directions as to further procedure as to it may seems
meet.
”
75.
Taking
into account the orders I make, the present position in regard to the
proceedings seems
[26]
to be the following:
75.1.
The Main Review Application
75.1.1.
The First and Second Applicants, ie the
Joint Venture parties, have delivered their Founding Affidavit.
75.1.2.
Gauteng Roads Department have delivered
Answering Affidavits and Supplementary Answering Affidavits.
75.1.3.
The First and Second Applicants have
delivered their Replying Affidavit.
75.1.4.
The Rule 53 Record has been lodged
(presumably by the Joint Venture parties in terms of Rule 53(3)), as
has a Supplementary Rule
53 Record.
75.1.5.
As Seventh Respondent, Balwin has delivered
an Answering Affidavit (in the form of its Supplementary Affidavit)
to oppose the grant
of the relief sought by the Joint Venture
parties.
75.1.6.
The Joint Venture parties (First and Second
Applicants) have filed an affidavit in opposition to the admission of
that Supplementary
Affidavit but have not delivered a Reply to that
(now) Answering Affidavit of Balwin. It must be given the opportunity
to do so
and I propose to give directions in this regard.
75.2.
The Mandatory Relief Application
75.2.1.
Attacq and Witwatersrand Estates, as Third
and Fourth Applicants for the
mandamus
relief only, have delivered their Founding Affidavit. (Balwin,
as a Respondent, has joined issue for the
mandamus
relief, based on that Founding Affidavit.)
75.2.2.
Gauteng Roads Department, as First to Fifth
Respondents in the mandatory relief application, have delivered an
Answering Affidavit
to the Founding Affidavit of the Developer
parties.
75.2.3.
The Joint Venture parties have delivered a
“Replying Affidavit” to the Answering Affidavit of
Gauteng Roads Department.
76.
It is in the interests of all parties, and
the public, that the proceedings are prosecuted expeditiously. I
therefore make the following
order.
1.
The application by Balwin Properties Ltd
for condonation for the late filing of an application to amend the
Notice of Motion of
Attacq Waterfall Investment Company Pty) Ltd,
Witwatersrand Estates (Pty) Ltd, and itself, as applicants, dated 1
September 2022
is granted.
2.
Axton Matrix Construction (Pty) Ltd and
Yahweh 1 Construction and Projects CC are ordered, jointly and
severally the one paying
the other to be absolved, to pay the costs
of the application for condonation on the scale of attorney and
client, such to include
the costs of two Counsel.
3.
The application by Balwin Properties Ltd to
amend the Notice of Motion dated 1 September 2022 is granted.
4.
Axton Matrix Construction (Pty) Ltd and
Yahweh 1 Construction and Projects CC are ordered, jointly and
severally the one paying
the other to be absolved, to pay the costs
of the application for the amendment, such to include the costs of
two Counsel.
5.
Balwin Properties Ltd is granted leave to
intervene as Seventh Respondent in the Review Application.
6.
For the sake of certainty, Balwin
Properties Ltd is granted leave to intervene also to join with
Attacq Waterfall Investment
Company Pty) Ltd and Witwatersrand
Estates (Pty) Ltd in order to seek the mandatory relief against the
Fifth Respondent, with the
Founding Affidavit of Ibrahim Mia dated 31
August 2022 to serve as its Founding Affidavit for such purposes.
7.
Axton Matrix Construction (Pty) Ltd and
Yahweh 1 Construction and Projects CC are ordered, jointly and
severally the one paying
the other to be absolved, to pay the costs
of the application for the intervention of Balwin Properties Ltd,
such to include the
costs of two Counsel.
8.
The Supplementary Affidavit of Mohamed
Raaziq Ismail dated 11 January 2023 is admitted and stands to serve
as the Answering Affidavit
of Balwin Properties Ltd,
qua
Seventh Respondent in the Review
Application.
9.
Axton Matrix Construction (Pty) Ltd and
Yahweh 1 Construction and Projects CC are ordered, jointly and
severally the one paying
the other to be absolved, to pay the costs
of the application for the admission of the said Supplementary
Affidavit, such to include
the costs of two Counsel.
10.
Axton Matrix Construction (Pty) Ltd
and Yahweh 1 Construction and Projects CC are granted leave to
deliver affidavits in Reply to
the Supplementary Affidavit of Mohamed
Raaziq Ismail dated 11 January 2023, as the Answering Affidavit
Balwin Properties Ltd in
the main proceedings, if so desired, within
fifteen days from the date of this order.
11.
Upon the delivery of such Reply, or the
expiry of the said fifteen day period, which ever comes first, unless
the Court upon application
by a party (or Justice Wepener in Case
Management) directs otherwise, the practices and procedures for
setting down the Review
Application, including the application for
mandatory relief, are to apply forthwith.
12.
The aforesaid orders do not preclude a
party approaching the Court (or Justice Wepener in Case Management)
for other or different
relief pertaining to the proceedings.
SALMON
AJ
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
For
the Applicant:
Adv.
Dave Watson
Adv. Chiara Louis
For
the 1
st
and 2
nd
Respondents
:
Adv.
Simphiwe Tshikila
[1]
Cf. Uniform Rule 53(4).
[2]
This is the relief sought by the Developer parties from the outset.
[3]
Cadac
(Pty) Ltd v Weber-Stephen Products Co and Others
2011 (3) SA 570
(SCA) at [10].
[4]
Cf. the discussion in Erasmus,
Superior
Court Practice
(Juta) ad Rule 12 (Commentary).
[5]
This is not changed by the admission of the affidavit (by Wepener J)
as being the Founding Affidavit of Attacq and Witwatersrand
Estates
in the Review Application. The factual allegations are not disputed.
[6]
SA
Riding for the Disabled Association v Regional Land Claims
Commissioner
2017 (5) SA 1
(CC) at 5A–D
[7]
Henri
Viljoen (Pty) Ltd v Awerbuch Brothers
1953 (2) SA 151 (O)
[8]
Giant
Concerts CC v Rinaldo Investments (Pty) Ltd
2013 (3) BCLR 251
CC at [41].
[9]
At [34].
[10]
Cf.
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Tourism and Others
2004 (4) SA490 CC at [27].
[11]
Supra
,
at [29].
[12]
Lawyers
for Human Rights v Minister for Home Affairs
2004
7 BCLR 775
CC at [18]
[13]
The “
factors
set out by O’Regan J
”
are those in the learned Justice’s minority judgement in
Ferreira
v Levin; Vryenhoek v Powell
1996 1 BCLR 1
(CC) paragraph 234. They include: whether there is
another reasonable and effective manner in which the challenge can
be brought;
the nature of the relief sought, and the extent to
which it is of general and prospective application; and the
range of
persons or groups who may be directly or indirectly
affected by any order made by the court and the opportunity those
persons
or groups have to present evidence and argument to the
court.
[14]
In his minority judgment, Madala J added that "another
important factor to be taken into account when deciding whether
a
party has public interest standing is the egregiousness of the
conduct complained of" – paragraph [73]. This is
not an
irrelevant consideration in the context at hand.
[15]
Ergo,
not
(putatively) make that decision.
[16]
Section 172(1)b of the Constitution.
[17]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
2014
(4) SA 179 (CC)
at [29] to [33]. Footnote references have been
omitted.
[18]
This consideration does not exclude the general public interest in
the sanctity of state tender processes.
[19]
As the parties select – Rule 53(3); cf
SACCAWU
v President, Industrial Tribunal
2001 (2) SA 277 SCA.
[20]
Section 49.
[21]
Supra
,
at [168].
[22]
Supra,
at
[37]. Footnote references have been removed.
[23]
At [42] to [43].
[24]
Tomassini
v Dos Remendos
1961 (1) SA 226
(W) at 228 D
[25]
Although not in Reply, as would be on assumption that the affidavit
is before the Court.
[26]
At least, according to Caselines.
sino noindex
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