Case Law[2025] ZAGPPHC 160South Africa
Brinant Security Services (Pty) Ltd v Rachoshi and Others (A217/2024; 25318/2017) [2025] ZAGPPHC 160 (14 February 2025)
High Court of South Africa (Gauteng Division, Pretoria)
14 February 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Brinant Security Services (Pty) Ltd v Rachoshi and Others (A217/2024; 25318/2017) [2025] ZAGPPHC 160 (14 February 2025)
Brinant Security Services (Pty) Ltd v Rachoshi and Others (A217/2024; 25318/2017) [2025] ZAGPPHC 160 (14 February 2025)
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sino date 14 February 2025
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
(FULL COURT)
APPEAL CASE NO: A217/2024
COURT
A QUO
CASE NO:
25318/2017
(1)
REPORTABLE: YES/
NO
(2)
OF INTEREST TO OTHER JUDGES: YES/
NO
(3)
REVISED.
DATE
14/02/2025
SIGNATURE
In
the Full Court Appeal of:
BRINANT
SECURITY SERVICES (PTY)
LTD
Appellant
and
M
L RACHOSHI
First Respondent
THE
PRIVATE SECURITY SECTOR PROVIDENT FUND
Second Respondent
THE
PENSION FUNDS
ADJUDICATOR
Third Respondent
FULL
COURT JUDGMENT
CORAM:
LABUSCHAGNE J; YENDE AJ; MAZIBUKO AJ.
[1]
The appellant appeals against the dismissal of its statutory
challenge
to set aside the determination of the Pension Funds
Adjudicator (the “Adjudicator”) in favour of the first
respondent
by the Court
a quo
(Collis J) on 20 July 2023.
The Adjudicator made a determination in terms of sec 30M of the
Pension Funds Act, 24 of 56, which
determination is the equivalent of
a judgment in a civil court (see section 30O(1)). The determination
was challenged by the appellant
in the Court
a quo
in terms of
section 30P of the Pension Funds Act. The court a quo, in assessing
the determination so challenged could make any order
it deems fit
(section 30P(2).This statutory right to challenge is not
characterised in the Act as either an appeal or a review.
It is
similar to an appeal in the wide sense, i.e. a rehearing -with or
without further evidence (sec 30P(3)).The only requirement
is that it
must relate to essentially the same complaint that was assessed by
the Adjudicator (see
Meyer v Iscor Pension Fund
2003 (2) SA
315
(SCA)).
[2]
The appeal serves before this court with leave obtained from the
Supreme Court of Appeal, leave to appeal having been refused by the
Court
a quo
.
[3]
The appellant is a registered security service provider with
registration
number 339326 registered with the Private Security
Regulatory Authority in terms of the provisions of the Private
Security Industry
Regulation Act, 56 of 2001. By virtue of the
services it provides, it employs security guards who also require
registration
with the authorities in terms of the aforesaid Act.
[4]
This case relates to a determination of pension benefits to which
employees
are entitled and how it affected the rights of particularly
the first respondent, a former employee of the appellant.
[5]
The first respondent is Mr Rachoshi, who was the twenty-second
respondent
in the Court
a quo
. On appeal, the second
respondent is the Private Security Sector Provident Fund, (the
“Fund”) duly established
in terms of the Sectoral
Determination of the Private Security Industry Sector as set out in
Government Notice No. R306 of 30 March
2001, as amended by Government
Gazette No. R331 of 25 October 2002.
[6]
On appeal the third respondent is the Adjudicator, who was the
twenty-ninth
respondent in the Court
a quo
.
[7]
The appellant, as an employer, has a duty in terms of section
13A(1)(a) of the
Pension Funds Act to pay contributions and to submit
schedules to the Fund of employees on whose behalf payment is being
made.
Such contributions are to be paid into the account of the
Fund.
[8]
Some 44 of the appellant’s employees laid complaints against
the appellant
in 2016 for not registering them as members of the
Provident Fund and not making pension contributions on their behalf
as required
by the aforesaid Act. The appeal arises in respect
of proceedings relating to 27 of the aforesaid complainants.
The
remainder were dealt with in other proceedings.
[9]
On 19 July 2021 Strydom AJ set aside the determination of the third
respondent
in these proceedings relating to 25 of the 27
complainants. On 4 February 2022 Ndlokovane AJ set aside the
determination
of the third respondent insofar as it related to the
twenty-fourth respondent. Only the first respondent in the
appeal remained
as 22
nd
respondent to oppose the
proceedings in the Court
a quo
.
[10]
Mr Rachoshi was employed by the Brinant on 26 August 2008. In a
written request of
15 October 2009 Mr Rachoshi requested Brinant to
stop deducting any contributions on his behalf from the Provident
Fund as he had
money problems. Brinant obliged. It bears noting
that the admissibility of the document reflecting the aforesaid
request
by Mr Rachoshi is challenged in the appeal as
res nova
as it was only introduced in the replying affidavit. That does not
detract from it being evidence. It was cited as a common cause
fact
by the court
a quo
. Whether it is
res nova
or a proper
reply is discussed below.
[11]
The following chronology will be useful in understanding the issues
discussed below.
[12]
On 3 March 2016 the Pension Funds Adjudicator received a complaint
from a number
of employees of Brinant, including Mr Rachoshi.
On 9 March 2016 the Adjudicator acknowledged receipt of the complaint
and
sent it to Brinant to respond to, giving Brinant time to submit
its response by 11 April 2016. This gave rise to a procedural
challenge
by the appellant in the court a quo and on appeal as the
Act requires the complaint to be made to the Fund, whose Board will
then
advise the employer and request its response (section 30A(1).
Only once the response so received is not accepted by the
complainant,
or if no response is received within 30 days, may the
complaint be lodged with the Adjudicator (section 30A(3)).
[13]
In the course of 2016, the Pension Funds Adjudicator referred the
issue to
the Fund in order to try and settle the issue with Mr
Rachoshi. The employees who had lodged complaints were
represented
by a firm of attorneys Soonder Inc. In an email of
24 August 2016 Soonder Inc (per Arlen Naidoo) notified the
Adjudicator
that “
The outcome is that the Fund has accepted
the resolution proposed by the parties’ Attorneys, duly guided
by the PFA”
. The PFA was notified that a settlement
agreement is in the process of being prepared. On 29 August
2016 the Senior
Assistant Adjudicator of the PFA, Charison Raphadana
enquired of Soonder Inc about progress in respect of settlement.
On
the same day Soonder Inc (per Arlen Naidoo) reported to the Senior
Assistant Adjudicator:
“
The matter has been
resolved. We will attend to signature during the course of this
week. Mr Channon has indicated that
payment of arrears will be
resolved within 7 days of signature and that the court application
will be withdrawn.”
[14]
In the course of September 2016 the first respondent, Mr Rachoshi’s
employment
was terminated.
[15]
On 18 October 2016 a settlement agreement was signed by Brinant on
the one hand and
the Fund on the other hand in respect of the
complainants. The agreement included the settlement of claims
of a list of employees
in
Annexure A
to the settlement
agreement, which included Mr Rachoshi as number 24 on that list.
[16]
In terms of Rule 7 of the Fund Rules, a lumpsum payment of pension
benefits would
be payable to a member upon resignation, dismissal or
retrenchment.
[17]
A written submission was made by Brinant on 27 October 2016 to the
Pension Funds
Adjudicator and a further response was submitted on 15
November 2016. The crux of the first response was that the
dispute
had been settled in terms of the written settlement agreement
and in the supplementary response of 15 November 2016, proof was
provided of payment made in terms of the settlement agreement.
Mr Rachoshi received payments on 6 June 2016 and again on 11
November
2016. It will be noted that one payment was made before the
settlement and the second after the settlement was concluded.
[18]
As part of the written submission of Brinant on 27 October 2016 a
signed settlement agreement
was attached pertaining to outstanding
Provident Fund contributions in respect of the complainants.
[19]
On 14 February 2017 the Fund received payments from Brinant in
respect of outstanding
Provident Fund contributions. On 24
March 2017 the Pension Funds Adjudicator made a determination in
respect of Mr Rachoshi
and it is this determination which is the
focus of both the proceedings in the Court
a quo
and the
present appeal.
[20]
In the determination by the Pension Funds Adjudicator, the settlement
as a defence
was discussed and rejected. The Adjudicator found
that the agreement fell foul of the Rules of the Provident Fund.
The result was that only 5 years of a period in excess of 5 years was
covered by the settlement agreement. There were Provident
Fund
contributions that were not included because of the 5-year limitation
from 1 July 2016 looking backwards. In respect
of Mr Rachoshi,
the Pension Funds Adjudicator found that there were unpaid
contributions from 1 March 2009 to 31 May 2011.
[21]
The determination orders Brinant to register Mr Rachoshi as a current
member
of the Provident Fund and to provide proof of payment of the
arrear contributions for the period 1 March 2009 to 31 May 2011.
[22]
In so ordering, the Pension Funds Adjudicator assumed that Mr
Rachoshi is still an
employee of Brinant. In paragraph 2.1 of
the determination, it is expressly stated that Mr Rachoshi is still a
member of
the Provident Fund “
by virtue of their employment
with the second respondent (Brinant)”
.
THE
COURT
A QUO
[23]
The applicant brought its application for review of the Pension Funds
Adjudicator’s
determination in terms of
section 30P
of the
Pension Funds Act, 24 of 1956
. Most of the complainants fell
away, through the orders made by Strydom AJ and Ndlokovane AJ as
referred to above. In those
orders the determination of the
Adjudicator was set aside in respect of the complainants who were
parties to those orders. The
orders were obtained by default.
[24]
The grounds of appeal are centred on two propositions. The first is
that the complaint
of Mr Rachoshi had been settled, and the
determination was in conflict with the settlement. The second was
that the Adjudicator
had exceeded his jurisdiction in investigating
acts and conduct that occurred more than three years before the date
on which the
complaint was lodged- ie 16 March 2016.The time bar is
in
sec 30I.
[25]
In terms of
section 30I(1)
“
The adjudicator shall not
investigate a complaint if the act or omission to which it relates
occurred more than 3 years before the
date on which the complaint is
received by him or her in writing.”
[26]
In advancing its argument that the dispute with Mr Rachoshi had been
settled, the
appellant (applicant in the Court
a quo
) stressed
that the Adjudicator was part and parcel of the negotiations and was
constantly updated regarding progress. The
applicant contended
that the Pension Funds Adjudicator cannot disregard the settlement
agreement in circumstances where it was
the result of a negotiated
process over which the Pension Fund Adjudicator had supervision.
THE
TIME BAR
[27]
The appellant contended then, as it does now, that the act or
omission to which the
determination relates took place more than 3
years before receipt of the complaint. The appellant contends
that non-payment
of contributions on behalf of Mr Rachoshi from 2009
was as a result of his express request made on 15 October 2009.
[28]
The nature of the time bar has featured in case law in this division,
one of the cases
being that of the appellant.
[29]
The first matter is that of
Brinant Security Services (Pty) Ltd v
The Private Security Sector Provident Fund and Four Others Case No
A113/2022 GDP
which was heard on 2 August 2023 by the Full Court,
(Justices Potterill J, Retief J and Phooko AJ). A written
judgment and
order was made on 6 September 2023. It was specifically
stated in par 18:
“
Accepting then that
section
30
I (1) is simply a time bar and that subsection (2) is merely a
means to determine ‘the date of the act/omission how arising’
to enable the calculation of the time bar in subsection (1), means
that the function of subsection (2) to consider the Prescription
Act
68 of 1969 (Prescription Act) is to ensure that an Adjudicator does
not investigate a matter which, in law, has prescribed.
Its
function is not there to be utilized as a special defence of
prescription. The Act and
Prescription Act possess
different
functions.”
[30]
The second matter is that of
Brinant Security Services (Pty) Ltd v
The Private Security Sector Provident Fund and Three Others Case No
9102/2022 GDP
which was heard on 3 August 2023 by Justice
Holland-Muter J. A written judgment and order were made on 13
November 2023.
[31]
In paragraph 21 of the judgement Holland-Muter J, finds
as follows:
“
Section 30
I (2) of the Act
makes the provisions of the
Prescription Act 68 of the
1969
applicable in respect of the calculation of the time barred
three-year period referred to in
section 30
I. Of significance
is that the fourth respondent does not possess the discretion to
condone nor extend the time bar provided
for.
Section 30
I is
simply a time bar and that the
Prescription Act’s
three-year
period when calculating a determination has to be accounted for.
Section 30
I is clear that the Adjudicator (fourth respondent)
shall not investigate a complaint of the act or omission to which it
relates
occurred more than 3 years before the date on which the
complaint was received. This was confirmed by
Investec
Employee Benefit Ltd v Marais and Others
[2012] 3 All SA 622
(SCA)
.
There is no room for any argument that the three-year period was
interrupted as in normal prescription matters. It
is a time bar
and not a prescription period. The fourth respondent erred in
this regard.”
[32]
The appellant’s procedural challenge is based on non-compliance
with section
30A(1)-(3) of the Act which reads as follows:
“
30A Submission and
consideration of complaints
(1)
Notwithstanding the rules of any fund, a complainant may lodge
a written complaint with a fund for consideration by the board of
the
fund.
(2)
A complaint so lodged shall be properly considered and replied
to in writing by the fund or the employer who participates in a fund
within 30 days after the receipt thereof.
(3)
If the complainant is not satisfied with the reply
contemplated in subsection (2), or if the fund or the employer who
participates
in a fund fails to reply within 30 days after the
receipt of the complaint the complainant may lodge the complaint with
the Adjudicator.
(4)
Subject to section 30I, the Adjudicator may on good cause
shown by any affected party –
(a)
extend a period specified in subsection (2) or (3) before or
after expiry of that period; or
(b)
condone non-compliance with any time limit specified in
subsection (2) or (3).”
[33] It
is common cause that the complainants did not follow the procedure
and never
approached the Fund and its Board with their complaints.
Brinant was also not provided with the opportunity to respond to
the
Fund or the complainants in the above regard. The court a quo
recognised this deviation but was satisfied that all the
parties were
given an opportunity to be heard by the Adjudicator. Implicit in this
assessment was that the process was nevertheless
fair and there was
no prejudice to the appellant.
[34]
The appellant contended to the Court
a quo
that the Pension
Funds Adjudicator did not have jurisdiction to entertain the
complaint as the prescribed procedure had not been
followed.
[35]
In the Court
a quo
counsel for Mr Rachoshi contended that
Brinant was misinterpreting section 30. He referred
specifically to section 30H (2)
which reads:
“
The Adjudicator shall not
investigate a complaint if, before the lodging of the complaint,
proceedings have been instituted in any
civil court in respect of a
matter which would constitute the subject matter of the
investigation.”
[36]
Mr Rachoshi’s counsel stressed that the restriction on the
jurisdiction of the Pension
Funds Adjudicator to investigate matters
is in relation to only where civil court proceedings have been
instituted, not where the
complaint was lodged directly with the
Pension Funds Adjudicator.
[37]
Mr Rachoshi relied on section 30I(2) which reads as follows:
“
If the complainant was
unaware of the occurrence of the act or omission contemplated in
subsection (1), the period of 3 years shall
commence on the date on
which the complainant became aware or ought reasonably to have become
aware of such occurrence, whichever
occurs first.”
[38]
Mr Rachoshi contended that he only became aware of his claim against
Brinant in relation
to their non-compliance with the Provident Fund
Rules in 2015.
[39]
However, the request made by Mr Rachoshi in October 2009 stands in
the way of this
argument. As he made the request, he knew at
that time already that non-payment of his contributions would flow as
a result
of his request. However, Mr Rachoshi has distanced
himself from this note and contends that he did not write the request
in question.
[40]
Mr Rachoshi further contends that he doesn’t know who Soonder
Inc is, denies having
given them a mandate to represent him in
negotiations with Brinant and therefore contends that he is not bound
by the settlement
agreement. He contends that the reference to
Soonder Inc is hearsay evidence.
[41]
Regarding receipt of the two payments by Mr Rachoshi, these receipts
are conceded.
[42]
Mr Rachoshi contends that he believed that Brinant was attempting to
comply with the determination
made by the twenty-ninth respondent
(i.e. the Pension Funds Adjudicator). Mr Rachoshi’s
position in the Court
a quo
was that the two payments received
were not in full and final settlement of money due to him related to
pension benefits.
He contends that the method of calculation of
the outstanding contributions did not take account of late payment of
interest and
was therefore in breach of section 13A (7) of the Act.
[43]
On the jurisdictional challenge in terms of section 30I of the Act,
the court noted
that the determination as far as Mr Rachoshi (and
others) dealt with complaints laid more than 3 years after the date
of the complaints.
The court states: “
It is
common cause that Mr Rachoshi requested Brinant as far back as on 15
October 2009 already, that it should stop deducting any
contribution
from his salary which request Brinant acceded to.”
[44]
However, according to the Pension Funds Adjudicator’s
determination, Mr Rachoshi
ought to have been registered on 1 March
2009. It is on this basis that the appellant had contended that
the Adjudicator
dealt with the complaint more than 3 years before the
act or omission complained of.
[45]
Counsel for the appellant in the Court
a quo
had also argued
that prescription applies. However, Mr Rachoshi contended that
he only became aware of the conduct of Brinant,
acting in breach of
their rules in 2015. He therefore contends that his claim
against Brinant could not have prescribed as
prescription only starts
to run as from the date he became aware of the debt in terms of
section 12(3)
of the
Prescription Act, read
with
section 31I(2)
of
the
Pension Funds Act. In
reply this contention was merely
denied.
[46]
In the absence of rebuttal evidence, the court a quo accepted Mr
Rachoshi’s
version that he only became aware of the debt in
2015 and as a result of the provisions of
section 12(3)
of the
Prescription Act, prescription
was delayed.
[47]
One must however bear in mind that the Court
a quo
found that
it was common cause that the appellant had already ceased making
deductions from October 2009 at the specific request
of Mr Rachoshi.
Knowledge of the salient facts was established to exist in 2009
already. Knowledge of having a valid claim
is not relevant- it
is knowledge of the salient facts giving rise to a debt. The court a
quo erred in requiring knowledge of wrongfulness
before the time bar
is triggered.
[48]
In respect of the procedural challenge relating to the periods
concerned, the court recorded
that a complainant must first approach
the Provident Fund in writing for consideration of the complaint.
It is for the Fund
to then refer the matter to the employer for a
response and only after the complainant has obtained a written
finding by the Fund,
will a complainant be entitled to approach the
Pension Funds Adjudicator, if dissatisfied with the response by the
Fund.
[49]
In paragraph 32 of the judgment the court notes the following:
“
Before, this court it is
common cause, counsel for the applicant had argued that the
complainants did not follow the above procedure
and never approached
the fund for consideration. The employer was further not
provided with the opportunity to respond to
the fund or the
complainants in respect of the complaint.”
[50]
The applicant contended that non-compliance with this procedural
prescript meant that the
Pension Funds Adjudicator lacked
jurisdiction. In response thereto, counsel for Mr Rachoshi
referred to
section 30H
(2) which reads:
“
The Adjudicator shall not
investigate a complaint if, before the lodging of the complaint,
proceedings have been instituted in any
civil court in respect of a
matter which would constitute the subject matter of the
investigation.”
[51]
It was contended that the legislature only provides for one instance
where the Pension
Funds Adjudicator’s jurisdiction to
investigate a matter is curtailed, and that is in
section 30H(2).
There was therefore no express curtailing of the jurisdiction of the
Pension Funds Adjudicator to investigate and make a
determination.
[52]
The court referred to the procedures followed by the Pension Funds
Adjudicator and stated
that it was clear that the latter attempted to
comply with
section 30A
in that it gave all parties an opportunity to
be heard. Although the procedure in
section 30A
(1) was not
followed, there was sufficient opportunity to make representations
and to be heard. The court therefore found
that there was no
basis for strict compliance with
section 30A.This
holistic approach
to the process that was followed, to test it for fairness and the
determination of prejudice not to be faulted
THE
SETTLEMENT
[53]
On the issue of the settlement, the court accepted the Adjudicator’s
assessment
that no consequences flowed from the settlement. The court
a quo accepted Mr Rachoshi’s version that he believed that the
payments that he had received were made by Brinant while attempting
to comply with the determination made by the Pension Funds
Adjudicator. At paragraph [47] the court states:
“
[47] He thus
laboured under the impression that the applicant was in the process
of complying with the determination.
It is further his
assertion that the two payments he received were not in full and
final settlement of the monies due to him as
a result of his pension
fund contributions.
[48] The
applicant in its replying affidavit merely denies that Mr Rachoshi
has merit in his opposition to the
application. It is
noteworthy to mention that no explicit attempt was made to answer to
the assertions made by Mr Rachoshi
in relation to the two payments
which he received.”
[54]
The Court
a quo
accepted Mr Rachoshi’s contention that
he was unaware of who Soonder Inc was, had not given them a mandate
and that he is
not bound by any agreement concluded by them
ostensibly on his behalf. The court further accepted that the
settlement agreement,
having been rejected by the Pension Funds
Adjudicator in his determination, “
it must follow that no
legal consequences can flow therefrom.”
[55]
In the premises the Court
a quo
dismissed the application with
costs.
[56]
On the issue of a negotiated settlement, it is trite that parties
make compromises in the
course of discussions and that a settlement
is not a matter of simple calculation. Particularly in respect
of Mr Rachoshi,
the court should have taken into account his request
not to be debited for contributions to the Provident Fund in terms of
his
written request of October 2009. Particularly then, if
Brinant adhered to his express request, the calculation of an amount
less than the full period would be the result of a negotiated
settlement. It is therefore not open to the Pension Funds
Adjudicator, having presided over the process, to second-guess the
reasoning and impose his view of what was fair on parties who
had
reached a negotiated settlement. The Court
a quo
’s
acceptance that no legal consequences flowed from the settlement is
therefore flawed and constitutes a misdirection.
[57]
Further, the court’s acceptance of Mr Rachoshi’s
contention that
he believed that the two payments made by Brinant to
him were in compliance with the determination made by the Pension
Funds Adjudicator,
can be identified as a misdirection merely with
reference to the chronology. The determination in question was
only made
known on 24 March 2017, while Mr Rachoshi received his
first payment on 6 June 2016 (before the settlement) and the second
payment
was received on 15 November 2016 (after the settlement).
It is therefore incorrect to accept Mr Rachoshi’s version in
circumstances where the chronology proves him to be wrong.
[58]
On his version he never appointed Soonder Inc to negotiate a
settlement on his behalf.
If that were so, on what conceivable basis
did he accept payments from Brinant in June 2016 and November 2016?
There is no
cogent evidence as to why he accepted the first payment.
It was before the settlement and before the determination.
[59]
This is one of those instances where the inherent improbability of Mr
Rachoshi’s
version called for its rejection. The application of
the Plascon-Evans rule simpliciter would result in an injustice. The
Court
a quo
erred in accepting Mr Rachoshi’s contention
that he accepted the payments in compliance with the determination,
when no such
determination had been made. The court should have
accepted the contention of the applicant that payment flowed,
particularly
as far as the second payment was concerned, from the
settlement agreement.
[60]
His contentions regarding the mandate of Soonder Inc is not material
on the facts.
The settlement concluded on 18 October 2016 was to the
benefit of the listed employees, which included Mr Rachoshi. They are
not
listed as parties but are the beneficiaries of the settlement.
His acceptance of the benefit in the form of a payment on 11 November
2016 made Mr Rachoshi a party to the settlement on trite principles
related to a
stipulatio alteri
. It is irrelevant whether he
had given a prior mandate to Soonder Inc. The court a quo erred in
not assessing the consequence of
accepting the 11 November 2016
payment.
[61]
Insofar as the exercise of the statutory power of the Pension Funds
Adjudicator is
concerned, the Pension Funds Adjudicator made three
fundamental misdirections.
[62]
Firstly, he has discounted a negotiated settlement (
transactio
)
over which he presided. There was no remaining complaint to
investigate as Mr Rachoshi was bound by the settlement as discussed
above.
[63]
It is binding on the Adjudicator too. The Adjudicator took an active
role in the
settlement process. He required to be updated on progress
made in regard to such settlement negotiations. He was further
provided with a copy of the settlement agreement and was notified
prior to his determination of full compliance by Brinant with
the
terms of the settlement agreement. In those circumstances, it
is not open to the Pension Funds Adjudicator to put a line
through a
negotiated settlement. It is binding on the parties, and it
precludes the Adjudicator from dismissing the settlement
as
non-existent.
[64]
A second misdirection made by the Pension Funds Adjudicator flows
from the error
of fact that he made in treating Mr Rachoshi as an
employee of Brinant at the time of the determination and in issuing
directions
to register Mr Rachoshi as a member of the Provident
Fund. Mr Rachoshi’s employment had terminated in the
month before
the settlement agreement was concluded. Whilst
this put an end to his employment, it did not have the immediate
effect of
cancelling his membership of the Provident Fund, as he was
still entitled, under Rule 7 of the Provident Fund Rules to a lumpsum
payment of his pension benefits.
[65]
The issuing of directions for the registration of Mr Rachoshi as a
member of the Provident
Fund is not a part of the determination that
can be severed from the rest. It constitutes a unitary exercise
of a public
power based on an incorrect fact, namely that Mr Rachoshi
was still an employee of Brinant at the time of the determination.
[66]
Lastly, the Pension Funds Adjudicator failed to determine whether he
had jurisdiction insofar
as his objection as far as Mr Rachoshi was
concerned related to non-payment of employer contributions in the
period 2009 to 2011.
As his determination arose from a
complaint received in March 2016, he was clearly investigating
matters and acts that took place
more than 3 years from the date of
receipt of the complaint. He simply lacked jurisdiction to
enquire into and to make directions
on such events.
[67]
In the premises we are satisfied that the Court
a quo
erred in
dismissing the sec 30P challenge of Brinant.
[68]
In the premises the following order is made:
1.
The appeal is upheld with costs, including the costs of two counsel,
on Scale C..
2.
The order and judgment of the Court
a quo
is set aside, and
the order is replaced with the following:
“
1. The
Pension Funds Adjudicator’s determination dated 24 March 2017
relating to the twenty-second respondent’s
complaint is hereby
set aside in terms of
section 30P
of the
Pension Funds Act, 24 of
1956
.
2. The
respondents are ordered to pay the costs of the application, such
costs to include the costs of two
counsel on Scale C.”
LABUSCHAGNE J
YENDE
A J:
I concur
MAZIBUKO
AJ
: I concur
This
judgment was prepared by
LABUSCHAGNE J
.
It is handed down
electronically by circulation to the parties/their legal
representatives by e-mail and uploaded on Caselines electronic
platform and by publication of the judgment to the South African
Legal Information Institute. The date for hand-down is deemed
14
February 2025.
Appearances:
Advocate for Applicant
:
J G Cilliers SC
Appearing with:
T Ellerbeck
Instructed by:
Arthur Channon Attorneys
Advocate for First
Respondent(s)
:
DF Makhubela
Appearing with:
F Tugwana
Instructed by:
Raulinga,
Netsianda and Khameli Inc Attorneys
Heard:
31 January 2025
Delivered:
14 February 2025
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