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Johannesburg - The City of Tshwane's attempt to force the TribeOne Festival's organisers to go ahead with the bash was struck off the roll by the High Court in Pretoria on Thursday.
"It didn't go to court," Tshwane spokesperson Selby Bokaba said.
Bokaba said the city planned to take the matter to arbitration.
It wanted to compel the organisers, events company Rockstar4000 and Sony Music Entertainment, to hold the festival this weekend. It was cancelled last Thursday.
Bokaba said in their replying affidavits the organisers "made it very clear that they had cancelled the contract with the artists".
It was therefore impossible for the festival to go ahead. The court found the matter was not urgent.
"We are saying that the reason for the cancellation is invalid."
He said the municipality intended claiming for damages as it had already incurred costs.
"We are confident that we have a strong case and that we will be vindicated."
The three-day Dinokeng Tribe-One Festival was supposed to have been held on a plot in Cullinan, east of Pretoria.
The city has insisted it met all its obligations, having spent R45m on infrastructure and R25m on marketing, promotions, and securing performers.
The organisers argue the city did not comply with requirements to provide infrastructure.
International performers such as Nicki Minaj, Macklemore and Ryan Lewis, and J Cole were set to perform. South Africans, including MiCasa, Kuli Chana, Mafikizolo, Karen Zoid and HouseHold Funk were on the bill, along with performers from the rest of Africa.
