Wakilii

Rafiki Farmers Ltd v Kumi District Local Government & Anor (HCT-00-CC-MC 1 of 2010)

High Court · [2012] UGCOMMC 52 · 2012 Judicial Review Granted (Partly) AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for judicial review seeking orders of certiorari, mandamus, and injunction relating to procurement decision
Decision
Application partly granted; decision of PPDA quashed for breach of natural justice; matter remitted for fresh hearing

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the PPDA breached principles of natural justice by failing to notify or hear the applicant, an interested bidder, before directing re-tendering. The decision was void and was quashed by certiorari. The temporary award to Shell Service Station was lawful. Mandamus was refused because an award decision does not create a contract and the applicant's right was doubtful. The matter was remitted to the PPDA for a fresh hearing with all parties given an opportunity to be heard.

Outcome

Application partly granted; decision of PPDA quashed for breach of natural justice; matter remitted for fresh hearing

Facts

The applicant was the successful bidder for a tender to manage revenue from Kumi bus/taxi park in 2009. Another bidder, Baraka General Supplies, challenged the procurement through administrative review before the 1st Respondent, which found no merit. Baraka then complained to the PPDA (2nd Respondent), which investigated and directed re-tendering without notifying or hearing the applicant. Pending re-tendering, the 1st Respondent contracted Shell Service Station Kumi on a temporary basis to manage the park. The applicant sought judicial review to quash both decisions and obtain an order directing award of the tender to it.

Issues

  1. Whether the 2nd Respondent breached the principles of natural justice by failing to give the Applicant a hearing before directing re-tendering of the procurement.
  2. Whether the 1st Respondent acted unlawfully in awarding a temporary tender to Shell Service Station Kumi.
  3. Whether the Applicant is entitled to an order of mandamus directing the 1st Respondent to award the tender to the Applicant.

Orders

  • Order of certiorari granted to quash the decision of the 2nd Respondent directing the 1st Respondent to re-tender the procurement.
  • Order of certiorari to quash the decision of the 1st Respondent awarding Shell Service Station Kumi a temporary tender denied.
  • Order of mandamus directing the 1st Respondent to award the tender to the Applicant denied.
  • Complaint to be re-heard by the 2nd Respondent with all sides accorded a hearing.
  • Injunction granted restraining the 1st Respondent from re-tendering the procurement until the orders herein have been complied with.
  • Application succeeds in part.
  • Costs of the application awarded to the applicant.

Rules and key headnotes

Administrative Law — Principles of Natural Justice — Right to be Heard — Interested Bidders in Procurement Proceedings
Under section 91(3) of the PPDA Act, before taking any decision on a complaint, the authority must notify all interested bidders and take into account their representations. An applicant who was an interested bidder is entitled to a hearing before the PPDA makes a decision that affects its rights, and failure to afford such a hearing constitutes a breach of the principles of natural justice rendering the decision void.
Judicial Review — Certiorari — Breach of Natural Justice — Void Decisions
A decision made by an administrative authority in disregard of the principles of natural justice is void. Where an authority fails to notify and hear an interested party whose rights are affected by the decision, an order of certiorari will issue to quash that decision.
Administrative Law — Judicial Review — Scope — Decision-Making Process versus Decision Itself
Judicial review is concerned not with the decision but with the decision-making process. It involves an assessment of the manner in which a decision is made, not an appeal, and the jurisdiction is exercised in a supervisory manner to ensure that public powers are exercised in accordance with the basic standards of legality, fairness and rationality.
Administrative Law — Mandamus — Conditions for Grant — Clear Legal Right Required
Mandamus will not issue to enforce doubtful rights. The duty to perform an act must be indisputable and plainly defined. Before the remedy can be granted, the applicant must show a clear legal right to have the thing sought done. Mandamus is a discretionary order which courts will grant only in suitable cases.
Commercial Law — Public Procurement — Award Decisions versus Contracts — Legal Effect
Under section 76(1) of the PPDA Act, an award decision is not a contract. An award is confirmed by a written contract signed by both the provider and the procuring entity only after specified conditions are satisfied. Where no contract has been signed, the applicant's right is doubtful and mandamus will not be granted to compel award of a tender.

Legislation cited (15)

Cases cited (9)

  • Twinomujuni Pastori v Kabale District Local Government Council & 2 Ors [2006] 1 HCB 130
  • Kikonda Butema Farmers Ltd v Inspector General of Government (HCMA No. 593 of 2003)
  • Mpungu & Sons Ltd v Attorney General and Anor (Civil Appeal No. 17 of 2001)
  • Ridge v Baldwin [1964] AC 40
  • Paul Kawanga Semogerere and 2 Ors v Attorney General [2004] KALR 84
  • Afro-Motors Ltd and Okumu-Ringa Patrick Aloysius v Minister of Finance, Planning and Economic Development and Anor (Miscellaneous Cause No. 693 of 2006)
  • Jayantilal S Shah v Attorney General (Miscellaneous Cause No. 31 of 1969)
  • Redmond V Lexington County School District No. Four: 314 S.C. 431) 4371445 S.E. 2d 441) 445, (1994)
  • Patrick Kasumba v Attorney General and Treasury Officer of Account (MA No. 121 of 2010)

Full judgment

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Rafiki Farmers Ltd v Kumi District Local Government & Anor (HCT-00-CC-MC 1 of 2010) [2012] UGCommC 52 (22 May 2012)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.