Ekurhuleni Metropolitan Municipality v Business Connexion (Pty) Ltd

The Ekurhuleni Metropolitan Municipality entered into a written agreement with Business Connexion (Pty) Ltd (BCX) in August 2020 for the procurement of Oracle software licences and related services at a total price of R85 479 535.26. BCX procured and paid for the licences from Oracle following the Municipality’s instruction to perform work. Oracle issued an electronic welcome letter confirming the availability of the licences, which was emailed to a senior municipal official. Subsequently, the Municipality sought to place the order on hold and later requested cancellation, citing budget cuts caused by the Covid‑19 pandemic and asserting non‑delivery of licences and that licences were to be acquired only ‘as and when required’. BCX rejected the cancellation, contending that the licences were delivered electronically and were non‑cancellable. The High Court found in favour of BCX and ordered payment. Leave to appeal was refused by the High Court and on petition to the SCA. The Municipality then sought reconsideration under s 17(2)(f) of the Superior Courts Act.

The application for reconsideration was struck from the roll, and the applicant was ordered to pay the costs of the reconsideration, including the costs of two counsel.

The judgment clarifies the strict and limited scope of s 17(2)(f) of the Superior Courts Act and confirms that the SCA’s jurisdiction is only engaged where exceptional circumstances are established. It reinforces that factual disputes and dissatisfaction with contractual outcomes do not constitute a grave failure of justice, and it affirms that budgetary constraints are not a defence to contractual liability for municipalities.