Case Law[2024] ZAGPJHC 842South Africa
Maano Chemicals (Pty) Ltd v Rand Water SOC Ltd (2024/058854) [2024] ZAGPJHC 842 (6 August 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
6 August 2024
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Maano Chemicals (Pty) Ltd v Rand Water SOC Ltd (2024/058854) [2024] ZAGPJHC 842 (6 August 2024)
Maano Chemicals (Pty) Ltd v Rand Water SOC Ltd (2024/058854) [2024] ZAGPJHC 842 (6 August 2024)
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sino date 6 August 2024
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
Case
No:
2024/058854
1.
REPORTABLE: NO
2.
OF
INTEREST TO OTHER JUDGES: NO
3.
REVISED,
6 August 2024
In
the matter between:
MAANO CHEMICALS (PTY)
LTD
Applicant
and
RAND
WATER SOC LTD
Respondent
JUDGMENT
# GOEDHART
AJ:
GOEDHART
AJ
:
Introduction
[1]
This is an application in two parts to interdict
the award of a tender (“Part A”) pending its review in
due course (“Part
B”).
[2]
The respondent, Rand Water SOC Ltd (Rand Water),
is an organ of State. Exercising statutory powers under the
Preferential Procurement
Policy Framework Act (“PPPFA”),
it seeks to procure by public tender an unspecified volume of
chlorine and sodium hypochlorite
for the disinfection of its potable
water supply across four provinces.
[3]
The applicant, Maano Chemicals (Pty) Ltd,
is Rand Water
’
s current supplier of
these disinfection chemicals. It is one of 16 bidders in the ongoing
tender process, which appears from the
papers to be at the near-close
of the evaluation stage.
[4]
The application served before me in the urgent
court on 18 June 2024. Having heard the parties, I reserved
judgment in the
matter.
[5]
The volume of the application was not
appropriately calibrated to the realities of the urgent court. The
case bundle in this matter
amounted to over 530 pages. The founding
affidavit and annexures alone reached 300 pages, including an
annexure inadvertently omitted
and then introduced by supplementary
affidavit.
[6]
In this judgment, I deal first with the point of
non-joinder taken by the respondent. I then turn to the urgency of
the application;
and finally to the constitutionally-mandated legal
requirements for granting an interim interdict against the exercise
of a statutory
power by an organ of state.
NON-JOINDER OF OTHER
BIDDERS
[7]
The
applicant makes out its case on joinder in its founding papers, which
it restates in reply.
[1]
Its
deponent states that the number and identity of the other responsive
bidders is unknown at present and that due notice will
be provided to
these parties when the identity of the responsive bidders is
disclosed as part of the record dispatched under Rule
53 of the
Uniform Rules of Court.
[8]
The respondent takes a single preliminary point:
the non-joinder of the other 15 bidders in the tender process.
[9]
The respondent’s deponent states as follows:
“
I
am advised that it is imperative that the other bidders be joined
[in
the]
process
to prevent other bidders from approaching court on similar relief as
the applicant when the relief sought would be
res
judicata
or
moot.
”
[2]
[10]
This
same point is amplified later in the answering affidavit, where the
deponent avers that the other 15 bidders who have submitted
bids have
a direct and substantial interest in these proceedings because “
the
interdict will affect other bidders as well
”
.
[3]
[11]
Thus, the applicant has not joined any bidders to
Part A of this application and intends to join all responsive bidders
in due course,
prior to the determination of Part B. The respondent’s
position is that all bidders must be joined of necessity, failing
which the application is Part A is defective for non-joinder.
[12]
The
relevant facts established on oath are that the respondent
’
s
Bid Evaluation Committee (BEC) first tests each bid for
responsiveness — that is “
compliance
with formal requirements
”
(i.e. the “responsive bids”) and then scoring for
functionality. This process generates a shortlist of bidders,
which
is followed by testing of chemical samples and due diligence at the
premises of shortlisted bidders. The BEC then
passe
s its
recommendation to award the tender to a successful bidder to the Bid
Adjudication Committee (BAC) for consideration and adjudication,
and
then the BAC makes a recommendation to be made to the Group Chief
Executive, with whom the final decision rests.
[1]
On the respondent
’
s
version, the tender process is at the near-close of the evaluation
stage, and only shortlisted bids are now under consideration.
The report of the chair of the BEC to the BAC is all that remains of
the evaluation stage.
[2]
[13]
I
am cognisant that the respondent’s bid evaluation and
adjudication process allows for the BAC to remit the matter to the
BEC, and thus the number or identity of shortlisted bidders might
conceivably change as the tender process advances to completion.
[14]
The
applicant’s deponent presses the long and uncertain duration of
the evaluation process, and repeated extension of the
bid validity
period,
[6]
but
cannot gainsay the accuracy of this characterisation of the stages of
the tender process or the fact that the shortlisted bids
are still
under evaluation.
[7]
[15]
Assessed holistically, this factual foundation
cannot satisfy the test for non-joinder, as I set out below.
[16]
Counsel for the respondent did not direct me to
any binding or persuasive authority for the specific proposition that
joinder of
all bidders submitting bids (or all responsive bidders, or
all shortlisted bidders) in an ongoing tender process is necessary as
a matter of law. The respondent’s heads of argument traverse
the issue of non-joinder, but are silent on the application
of the
case-law to the specific facts of this matter.
[17]
The respondent’s list of authorities instead
refers to eight judgments, predominantly from the Supreme Court of
Appel and
Constitutional Court, arising in a range of factual
contexts very different from the present matter — but from
which, helpfully,
the general principles of the law on joinder may be
distilled.
[18]
Applying
the well-established test for non-joinder
[8]
the
crisp preliminary point before me in adjudicating Part A of this
application is whether any shortlisted bidder in the ongoing
tender
process has a direct and substantial interest in the interdicting of
the award of that tender pending its review; and whether
granting the
interdict may prejudice any such bidder.
[19]
Two recent judgments in this Division traverse the
specific issue of joinder of other bidders in an ongoing tender
process in an
application for an interim interdict.
[20]
In
Bothongo
Agriculture GP (Pty) Ltd v Johannesburg Water SOC
,
[9]
Gilbert
AJ considered that the non-joinder of four shortlisted bids under
adjudication was not necessarily fatal to the application,
finding
that it was “
not
beyond doubt that the other bidders would suffer legally-cognisable
prejudice
”
.
In that matter, the applicant sought joinder
mero
motu
from
the court, without real opposition from the respondent. Gilbert AJ
stated,
obiter
dicta
:
“
The
Re-advertised tender has not reached an advanced stage, and so should
the interim interdict be granted, the effect thereof on
the bidders
for that tender is limited. The respondent is not forthcoming in its
answering affidavit as to the stage that has been
reached in the
re-advertised tender, saying no more than there are four short-listed
bidders that had complied with the bidding
requirements and that the
adjudication process is underway. During argument, upon enquiry by
the court, the respondent through
its counsel, after taking
instructions, for the first time disclosed that the respondent would
not complete the adjudication process
and make an award by 19 June
2022. As there has been no adjudication, the prejudice that the
shortlisted bidders will suffer if
the interim interdict is granted
and the adjudication cannot be completed is outweighed by the
prejudice that the applicant will
suffer if the re-advertised tender
goes ahead and, after adjudication, is awarded to the successful
bidder. It might even be that
the shortlisted bidders will suffer no
legally cognisable prejudice if the interim relief is granted as
there has not been an adjudication
of the bids, although I do not
make any finding on this
.”
[10]
[21]
In
Fidelity
Security Services (Pty) Ltd v Airports Company South Africa SOC Ltd
and Others
,
[11]
a
re-enrolled urgent interim interdict application served before Van
Nieuwenhuizen AJ. There was some uncertainty whether the initial
application had been struck from the urgent roll for non-joinder of
the other bidders or rather that the applicant had been ordered
to
join the other bidders. Its attorneys notified a list of
potential bidders of the proceedings, none of whom expressed
the
intention of joining the proceedings. Van Nieuwenhuizen AJ found:
“
Given
that only interim relief is sought pending a return day there can
hardly be any harm to the notified parties if interim relief
is
granted. In my view a
rule
nisi
would
take adequate care of any non-joinder problem. If it later turns out
that Mahalelo J
indeed
granted an order for the joinder of all bidders, same can be complied
with in due course
.”
[12]
[22]
This
practical approach resonates with the
dictum
of the
Constitutional Court in
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others
[13]
,
where that Court held, in a wholly different factual context:
“
[t]
here
may well be a situation where joinder is unnecessary, for example
where a
rule
nisi
is
issued, calling upon those concerned to appear and defend a charge or
indictment against them. Undeniably, in appropriate
circumstances, a
rule
nisi
may
be adequate even when there is a non-joinder in contempt of court
proceedings.
”
[14]
[23]
I find that there is no joinder of the shortlisted
bidders necessary in Part A of these proceedings. The applicant
cannot be faulted
for its ignorance of the identity of the
shortlisted bidders, and thus, its inability to formally cite them at
this early stage
of the proceedings. The applicant has demonstrated a
bona fide
intention
to notify and join all other responsive bidders as soon as this
information is disclosed in the proper way under Rule
53.
[24]
Although it was open to the applicant to do more —
for instance, by inviting the Court
mero
motu
to join the shortlisted bidders to
this application; by crafting suitable draft order incorporating a
rule nisi
for
the Court to consider; or by demonstrating that its attorneys had
previously demanded a list of bidders from the respondent
—
there is no cognisable legal basis for a party in the position of the
applicant to be required to have done more to avert
a finding of
non-joinder.
[25]
This
finding rests on the specific facts of this application. The
applicant has crafted its case for an interim interdict, in
substantial
part, on its status as the respondent’s current
supplier, and an alleged contractual right of sole supply of
disinfectant
chemicals to the respondent at a number of the sites
within the scope of the tender.
[15]
By its
nature, this contractual right is unique to the applicant and cannot
affect any other bidder.
[26]
The applicant also relies on broader
constitutional rights under section 217 of the Constitution. The
protection of these rights
may well affect other bidders, but I
cannot conclude on the facts before me that any other bidder
necessarily has a direct and
substantial interest in the
subject-matter of Part A of this application. As I set out later in
this judgment, this is because
the substratum of the alleged imminent
harm to the applicant’s section 217 rights appears,
prima
facie
, to flow from the idiosyncratic
manner in which the applicant has interpreted and completed the bid
documentation, not to an objective
deficiency in the tender process.
THE RELATIVE URGENCY
OF THE APPLICATION
[27]
The test for urgency is clear on the face of Rule
6(12)(b). It stands on two legs. First, the applicant is
required to “s
et forth explicitly
the circumstances which…render the matter urgent
”
.
Second, the applicant must provide the reasons why it claims that it
“
could not be afforded substantial
redress at a hearing in due course
.”
[28]
Rule
6(12)(b) is not applied in the abstract. It is inevitable in urgent
applications to traverse the merits at least to some extent
because
the inquiry on urgency is contextually-bound and fact-specific.
[16]
[29]
In
this matter, the final bout of pre-litigation correspondence between
the parties was initiated on 12 April 2024 and concluded
on 22 May
2024. The notice of motion was filed on 28 May 2024. The respondent’s
deponent sets out in detail averments that
the application is not
urgent, or that the urgency was self-created.
[17]
[30]
The
applicant’s deponent denies that the rights on which it relies
for relief are commercial in nature,
[18]
but in
truth, its case on urgency most closely resembles one of commercial
urgency.
[31]
It is also true that the applicant’s case
for urgency is not a model of clarity or completeness:
31.1.
The
averments on urgency in the founding papers are terse, and the
urgency trigger is described as the failure of the respondent
to give
certain undertakings. The papers show that the applicant’s
attorneys, in their letter of 12 April 2024, requested
the respondent
to issue a tender addendum and to confirm in writing that estimated
volumes would be used in the evaluation of the
bids.
[19]
The
founding affidavit then confuses matters by suggesting that the
urgency of the matter subsists in the applicant’s belief
that a
new contract may be concluded with a new supplier, which “
may
occur any day
”
[20]
and
which would then involve a lengthy process to set aside.
31.2.
In
reply, the emphasis of the applicant’s case for urgency shifts.
The applicant’s deponent accepts that the applicant
would have
reconsidered its position on urgency if the respondent had been
willing to specify the date by which the tender would
be awarded.
[21]
The
implication is that if the respondent committed to a tender award
date, this would have obviated the need for an immediate urgent
application because the timing of the application could have been
calibrated to the timing of the award of the tender.
31.3.
In its heads of argument, the emphasis shifts once
again, to the “
tainting
”
of the tender process — that is, the legal
implications under the PPPFA of the respondent’s decision to
inquire whether
the applicant’s bid prices would change after
five extensions to the bid validity period.
[32]
I am satisfied that, despite the concerns set out
above, the applicant ought to succeed on the first leg of the urgency
test.
[33]
This is because, on a conspectus of the papers as
a whole, the applicant has placed sufficient facts before the court
to show that:
33.1.
As the
current supplier of disinfection chemicals at a substantial number of
the respondent’s sites that are also within the
scope of the
tender,
[22]
the
applicant has a contractual obligation to supply these chemicals to
the respondent.
33.2.
The
applicant’s obligation to continue to supply disinfection
chemicals to the respondent has been extended on a month-to-month
basis as from February 2024, until a new supplier (which may be the
applicant or other party) is appointed at the conclusion of
the
ongoing tender process.
[23]
33.3.
As an
incumbent supplier of disinfection chemicals at certain sites, the
inference to be drawn is that the applicant is peculiarly
aware of
the volume requirements at those sites and has particular concerns
about the absence of required volumes in the request
for proposals
and its own reliance of assumptions about estimated volumes,
crystallising into what its attorneys describe as the
“
tonnages
problem
”
and
the open door to a “
fraudulent
tenderer
”
.
[24]
33.4.
The applicant submitted its bid before the closing
date on 28 November 2022. The bid validity period for the tender,
which was initially
set at 180 days, has since been extended five
times and is close to reaching two years; the bids remain under
evaluation; and the
respondent has not committed to conclude the
evaluation phase or the adjudication phase, or to reach a final
decision within a
specific time period, within a reasonable period,
or at all. Had it done so, the applicant avers, there would have been
no urgent
application.
[34]
Thus,
although the applicant does not say so in so many words, the
inference is that it fears what the Supreme Court of Appeal
characterises, in a different factual context, as an “
open-ended
tender process
”
in
which certainty is no longer the “
touchstone
”
.
[25]
[35]
Comparable
facts involving an incumbent supplier of services to the State, and
giving rise to commercial urgency were also approved
by the High
Court of Namibia in
AFS
Group Namibia (Pty) Ltd v Chairperson of the Tender Board of Namibia
and Others
.
[26]
[36]
On this basis, I find that the first leg of the
urgency test is satisfied.
[37]
Turning
to the second leg of the urgency test, the applicant’s deponent
characterises its case for absence of substantial
redress in due
course as a damages claim, “
unlikely
to succeed
”
,
for “
the
loss of the business it would have done and the profits it would have
earned if the interim relief
[under
Part A]
was
granted.
”
[27]
The
respondent avers that this statement is insufficient to meet the
second leg of the test for urgency.
[28]
[38]
In
Esorfranki
Pipelines (Pty) Ltd v Mopani District Municipality
,
[29]
the
Constitutional Court clarified the specific legal framework available
for redress to unsuccessful bidders in a tender process
that falls
short of the requirements of section 217 of the Constitution.
Following this judgment, it is clear that if the applicant
were to be
unsuccessful in a tender process tainted by intentional misconduct by
the respondent as an organ of State, the applicant
would be entitled
to claim damages for economic loss under section 8(1)(c)(ii)(bb) of
the Promotion of Administrative Justice Act.
No such claim would be
available under PAJA in what the Court terms the “
negligent
but honest bungling of a tender
”
[30]
by an
organ of state in the position of the respondent. The Court also
found that the principle of subsidiarity forecloses a parallel
claim
at common law.
[39]
There
is no basis at all in the papers before me to suggest any intentional
wrongdoing on the part of the respondent. Quite
the contrary.
On the affidavits, all the applicant might hope to demonstrate at a
hearing in due course is “
negligent
but honest bungling
”
,
if that. Even in the applicant’s attorneys’ own
correspondence, the “
exclusion
of volumes in calculating the bid price
”
is
described as a “
potential
blunder
”
.
[31]
[40]
Absent intentional wrongdoing, the implication is
that, following the judgment in
Esorfranki
Pipelines
, the applicant would be
non-suited in a claim for damages for economic loss in due course,
which is the only cognisable head of
damages available to the
applicant in this matter.
[41]
On this basis, the applicant must succeed on the
second leg of the urgency test because it has no prospect of
substantial relief
at a hearing in due course.
[42]
Accordingly, I find that this matter merits the
attention of the urgent court and ought to be enrolled as such under
Rule 6(12).
I turn to the merits of the relief sought in Part A.
THE LEGAL REQUIREMENTS
FOR THE RELIEF SOUGHT
[43]
As the applicant correctly submits, the sole fact
that the tender process is ongoing does not, in itself, rule out
interim interdictory
relief. Counsel for the applicant referred me to
three cases in this Division, the Eastern Cape Division and Western
Cape Division
which demonstrate the competence of this relief and, as
I point out above, there are other persuasive authorities as well.
[44]
What
is required in these cases is a fact-specific assessment of the
well-established requirements in
Setlogelo
v Setlogelo
;
[32]
refined
in
Webster
v Mitchell
;
[33]
and
recalibrated to the standards of the Constitution in
National
Treasury and Others v Opposition to Urban Tolling Alliance and Others
(“OUTA”).
[34]
[45]
Writing for the majority in
OUTA
,
Moseneke DCJ held:
“
Beyond
the common law, separation of powers is an even more vital tenet of
our constitutional democracy. This means that the Constitution
requires courts to ensure that all branches of Government act within
the law. However, courts in turn must refrain from entering
the
exclusive terrain of the Executive and the Legislative branches of
Government unless the intrusion is mandated by the Constitution
itself.
It
seems to me that it is unnecessary to fashion a new test for the
grant of an interim interdict. The
Setlogelo
test,
as adapted by case law, continues to be a handy and ready guide to
the bench and practitioners alike in the grant of interdicts
in busy
Magistrates
’
Courts and High
Courts. However, now the test must be applied cognisant of the
normative scheme and democratic principles that underpin
our
Constitution. This means that when a court considers whether to grant
an interim interdict it must do so in a way that promotes
the
objects, spirit and purport of the Constitution.
Two ready examples
come to mind. If the right asserted in a claim for an interim
interdict is sourced from the Constitution it would
be redundant to
enquire whether that right exists. Similarly, when a court weighs up
where the balance of convenience rests, it
may not fail to consider
the probable impact of the restraining order on the constitutional
and statutory powers and duties of
the state functionary or organ of
state against which the interim order is sought.
The
balance of convenience enquiry must now carefully probe whether and
to which extent the restraining order will probably intrude
into the
exclusive terrain of another branch of Government. The enquiry must,
alongside other relevant harm, have proper regard
to what may be
called separation of powers harm.
A
court must keep in mind that a temporary restraint against the
exercise of statutory power well ahead of the final adjudication
of a
claimant
’
s
case may be granted only in the clearest of cases and after a careful
consideration of separation of powers harm. It is neither
prudent nor
necessary to define
“
clearest
of cases”
.
However, one important consideration would be whether the arm
apprehended by the claimant amounts to a breach of one or more
fundamental rights warranted by the Bill of Rights.”
[35]
[emphasis
added]
[46]
In
Economic
Freedom Fighters v Gordhan and Others; Public Protector and Another v
Gordhan and Others
[36]
the
Constitutional Court unanimously restates the law
[47]
on
interim interdicts after OUTA:
“
We
were cautioned by this Court in OUTA that, where Legislative or
Executive power will be transgressed and thwarted by an interim
interdict, an interim interdict should only be granted in the
clearest of cases and after careful consideration of the possible
harm to the separation of powers principle.
Essentially,
a court must carefully scrutinise whether granting an interdict will
disrupt Executive or Legislative functions, thus
implicating the
separation and distribution of power as envisaged by law. In
that instance, an interim interdict would only
be granted in
exceptional cases in which a strong case for that relief has been
made out
.”
[emphasis added; footnotes omitted]
[37]
[48]
Where,
as in this case, interdictory relief is sought
pendente
lite
in
the anticipated review of a tender process, the principles in OUTA
also confirm that this court must be especially careful not
to delve
too deeply into the merits of the review, as the decision of a future
review court ought not to be anticipated.
[38]
[49]
For its part, the respondent makes a full-throated
complaint of “
separation of powers
harm
”
in terms of the OUTA
judgment. For instance, its deponent characterises the impact of the
relief sought as an attempt by the applicant
to:
49.1.
“
dress
itself with the powers vested on Rand Water, the powers to design the
specifications of the bid documents and to evaluate
the tender”;
[39]
49.2.
“
to
procure advanced judicial supervision of executive powers and
duties…”;
[40]
and
49.3.
“
to
prohibit Rand Water from exercising its constitutional right in terms
of section 217 of the Constitution to award this tender.”
[41]
[50]
Counsel for the respondent pressed the point that
this is not one of the “
clearest
of cases
”
or “
exceptional
cases
”
that warrant judicial
intrusion into the sphere of executive action.
[51]
In
response, counsel for the applicant refers to the recent decision of
the Western Cape Division in
H
& I Civil & Building (Pty) Ltd and Another v City of Cape
Town and Others
(“H
& I”) as being “
on
all fours
”
with
the present matter.
[42]
I
cannot agree with this submission. In
H
& I
,
the applicants complained of material changes to the B-BBEE scorecard
during an ongoing tender process which, the applicants submitted,
were inconsistent with prevailing legislation and thus
prima
facie
unlawful.
Cloete J characterised this as the “
crux
of the main dispute
”
.
[43]
[52]
By contrast, the “
crux
of the main dispute
”
in the
present matter appears to turn on an apprehended fear of infringement
of two rights: first, a contractual right of the appellant
to
maintain its “
right to supply”
of disinfection chemicals at certain of
the sites within the scope of the tender; and second, the applicant’s
constitutional
right to participate in a fair, equitable,
transparent, competitive and cost-effective procurement system, under
section 217 of
the Constitution.
[53]
The applicant’s position is that the manner
in which the respondent inquired about the possible escalation of bid
prices (the
“
bid price inquiry
problem
”
), together with the
“
tonnages problem
”
mentioned earlier in this judgment make the tender
prima facie
irrational
and non-compliant with section 217 of the Constitution.
[54]
It remains opaque how the awarding of the tender —
either to the applicant or to another bidder — could cause harm
to
the applicant’s current contractual right to supply
disinfection chemicals at certain of the respondent’s sites. I
do not think it could. The applicant has neither a right to nor
legitimate expectation of renewal of its current supply contract
once
the tender is awarded.
[55]
As for
the “
bid
price inquiry
problem
”
raised
by the applicant, the respondent gives a substantial answer. Its
deponent avers that bids will be evaluated at the price
originally
submitted, but that in the event of delay — which, on the
papers, has been substantial — the respondent
would consider
awarding an escalation. The deponent adds that the purpose of the
price inquiry was to make adequate provision for
the tender in the
respondent’s budget process.
[44]
Without
delving more deeply than appropriate in these proceedings, there is
no cognisable basis to dispute the respondent’s
version.
[56]
The
“
tonnages
problem
”
arises
from the applicant’s apprehension that the respondent has not
undertaken to evaluate the bids on the basis of estimated
volumes,
but that it has ostensibly mischaracterised or misunderstood its own
tender as “
rates-based
”
,
in other words, based on rates or pricing per ton.
[45]
The
applicant’s deponent puts the problem this way: “
In
order to be fair to all bidders, price per ton for product and price
per ton for delivery must be linked to the estimated volume
of the
individual product and its packaging size to understand the true cost
of tender price over the term of the contract
.”
[46]
[57]
On the
applicant’s own version, which the respondent does not dispute,
its bid included estimated volumes as underlying assumptions
for its
calculations, which the respondent accepts as valid calculations.
[47]
This
fact, alone, suggests that the absence of requirement to specify
volumes in the tender is not
prima
facie
irrational,
precisely because the applicant, as a prospective bidder, was able to
respond to the bid and did not require clarification,
passing up two
opportunities to do so.
[48]
The
applicant has not been denied the opportunity to submit the estimated
volumes which it considers intrinsic to its bid. All the
respondent
says, in effect, is that it does not intend to re-open the tender to
require estimated volumes from all other bidders,
nor will it give a
written commitment to evaluate bids on the basis of estimated
volumes. It considers that either action would
vitiate the lawfulness
of the tender. So too, it understands the concept of a rates-based
tender in a particular way. It
is exercising statutory powers
in doing so.
[58]
Seen in this light, the separation of powers harm
occasioned by the relief sought in Part A comes clearly into view. An
urgent court
is not well-placed to intrude into the thinking process
of the respondent in defining the nature of its ongoing tender
process;
its pricing requirements; its financial modelling; or its
knowledge of the commercial marketplace for disinfection chemicals;
and
then, on the basis of its own understanding, to thwart the
exercise of an executive power.
[59]
For these reasons, I find that the applicant has
failed to make out the “
clearest
case
”
for an interim interdict
against the exercise of a statutory power by the respondent.
[60]
The application is accordingly dismissed.
COSTS
[61]
Under
Rule 67A read with Rule 69(7) of the Uniform Rules of Court, the
Court itself is now required to assess party-and-party costs
on one
of three scales — A, B or C. The assessment of the appropriate
scale of costs does not depend on the seniority of
counsel, but
rather on the complexity of the matter and the value of the claim or
the importance of the relief. Rule 67A is prospective
in effect, so
these scales apply only in respect of work performed by legal
practitioners in the matter as from 12 April 2024.
In this regard,
the holding of Wilson J in
Mashavha
v Enaex Africa (Pty) Ltd
[49]
is apposite. Wilson J held that Scale A:
“…
is
the appropriate
scale
on
which to make an award unless the application of a higher scale has
been justified by careful reference to clearly identified
features of
the case that mark it out as unusually complex, important or
valuable. Run-of-the-mill cases, which must be the vast
majority of
cases in the High Court, should not attract an order on the B
or
C scales.
”
[50]
[62]
The respondent, which has substantially succeeded
in this matter, seeks costs “
on an
attorney and client scale on Scale C
”
.
This approach conflates two distinct concepts. As a matter of law,
Rule 67A does not apply to costs on the attorney and client
scale; it
applies only to “
fees and
disbursements as between party-and-party
”
.
[63]
The respondent’s deponent avers, repeatedly,
that this application is tantamount to an abuse of the process of the
court and
ought to attract an award of punitive costs on an attorney
and client scale. I have found that the application was not
ultimately
well-founded, but it was at arguable on its merits and
capably argued. I do not consider a punitive costs award to be
justified
in these circumstances.
[64]
I find that the costs in this matter for work
performed as from 12 April 2024 are appropriately assessed on Scale
B. The matter
is not without complexity, raises important
issues and is valuable.
[65]
Accordingly, I make the following order:
65.1.
The application is enrolled as urgent in terms of
Rule 6(12) of the Uniform Rules of Court.
65.2.
The application is dismissed.
65.3.
The applicant is directed to pay the respondent’s
costs, such costs to include the costs of one senior and one junior
counsel
on the party and party scale to 11 April 2024, and with
effect from 12 April 2024 on Scale B in terms of Rule 67A of the
Uniform
Rules of Court, such costs to include the costs of senior and
junior counsel.
GOEDHART AJ
ACTING JUDGE OF THE
HIGH COURT
This judgment was
prepared and authored by Acting Judge Goedhart. It is handed down
electronically by circulation to the parties
or their legal
representatives by email and by uploading it to the electronic file
of this matter on Case lines. The date
for hand-down is deemed
to be 6 August 2024.
DATE
HEARD:
18
June 2024
DATE
OFJUDGMENT:
6
August 2024
For
the Applicant:
Adv
PF Louw SC and Adv JW Steyn
Instructed
by Van de Vyver Inc
For
the Respondent:
Adv
R Mogagabe SC and Adv L Nyangiwe
Instructed
by Raborifi Inc
[1]
Founding
Affidavit
para
graphs
18,
23-24;
Replying
Affidavit paragraph
28.
[2]
Answering
Affidavit paragraph
44
.
[3]
Answering
Affidavit paragraphs
42-46
.
[4]
Answering
Affidavit
para
graphs
31-33
.
[5]
Answering
Affidavit
paragraphs
61-64
.
[6]
Founding
Affidavit paragraph
26
.
[7]
Replying
Affidavit
paragraph
23.2
.
[8]
Absa
Bank Ltd. v Naude NO and Others
2016
(6) SA 540
(SCA),
[2015] ZASCA 97
(SCA),
paragraph
10
.
[9]
[2023]
ZAGPJHC 246 (20 March 2023).
[10]
Ibid
paragraph 73.8.
[11]
[2024]
ZAGPJHC 561 (30 May 2024).
[12]
Ibid
paragraph
31
.
[13]
2018
(1) AS 1 CC, [2017] ZACC 35
,
2017 (11) BCLR 1408 (CC).
[14]
Ibid
paragraph
94
.
[15]
Founding
Affidavit paragraph 43.
[16]
See
Sithole
and Another v Media24 (Pty) Ltd and Others
[2023]
ZAGPJHC 884 (8 August 2023)
,
paragraph 43.
[17]
Answering
Affidavit paragraphs 27-40.
[18]
Founding
Affidavit paragraphs 49-51.
[19]
Founding
Affidavit paragraphs 28-33 read with Annexure “FA3”.
[20]
Founding
Affidavit paragraph 59.
[21]
Replying
Affidavit paragraph 23.3.
[22]
Founding
Affidavit paragraph 43.
[23]
Replying
Affidavit paragraph 25.1, read with Annexure “FA10”,
clause 2.1.
[24]
Annexure
FA3, paragraphs 5-6.
[25]
Ekurhuleni
Metro Municipality v Takubiza Trading & Projects CC and Others
2023
(1) SA 44
(SCA),
[2022] ZASCA 82
,
paragraph
15, citing
Tahilram
v Trustees, Lukhamber Trust and Another
2022
(2) SA 436
(SCA),
[2021] ZASCA 173
, paragraph 24.
[26]
[2011]
NAHC 184
(1
July 2011).
[27]
Founding
Affidavit paragraphs 53-54.
[28]
Answering
Affidavit paragraph 29.
[29]
2023
(2) SA 31 (CC), [2022] ZACC 41
,
2023 (2) BCLR 149 (CC).
[30]
Ibid
para 40.
[31]
“
Annexure
1” to Annexure “FA3”.
[32]
1914
AD 221
.
[33]
1948
(1) SA 1186
.
[34]
2012
(6) SA 223
(CC)
,
[2012] ZACC 18, 2012 (11) BCLR 1148.
[35]
Ibid
paragraphs 44-47.
[36]
2020
(6) SA 325 (CC)
,
[2020]
ZACC 10, 2020 (8) BCLR 916 (CC).
[37]
Ibid
paragraph
48
.
[38]
OUTA
footnote
34 above,
paragraph
31.
[39]
Answering
Affidavit paragraph 19.4.
[40]
Answering
Affidavit paragraph 20.
[41]
Answering
Affidavit paragraph 67.
[42]
[2024]
ZAWCHC 15
(30 January 2024).
[43]
Ibid
paragraph
30
.
[44]
Answering
Affidavit paragraphs 95.3 and 96.1.
[45]
Answering
Affidavit paragraph 17.
[46]
Replying
Affidavit paragraph 17.3.
[47]
Answering
Affidavit paragraph 13.
[48]
Answering
Affidavit paragraph 7 and paragraph 62.
[49]
(2022/18404)
[2024] ZAGPJHC 387 (22 April 2024).
[50]
Ibid
paragraph 16.
sino noindex
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