Earlier this week Cash Paymaster Services (CPS) and South Africa Social Security Agency (Sassa) both confirmed that verbal consensus had been reached for a new contract, however, no deal has been signed yet due to ongoing negotiations.
CPS said it would finalise the conditions of its contract with its lawyers on Monday and it would be up to Sassa to close the deal.
In court papers the Constitutional Court rejects Dlamini's decision to withdraw her department's application last week to explain its progress in appointing a new service provider.
The court goes on to say that Dlamini must provide answers on when she first became aware that Sassa would not be able to pay out grants to over 17 million beneficiaries.