Case Law[2025] ZAGPPHC 571South Africa
Rand Water v Taroline (Pty) Ltd and Others (2024-124556) [2025] ZAGPPHC 571 (4 June 2025)
Headnotes
by the arbitrator, Ezra Goldstein who on 24 May 2016 issued the award in favour of the second respondent. During the arbitration the arbitrator had made an interim award for payment of R2 093 221.03, which Rand Water duly paid. [5] Rand Water instituted proceedings in this court seeking the review and setting aside of the arbitration award. The review application came before Meyer J in the matter of Rand Water v Zuikerbosch Biocal Products CC and Taroline (PTY) LTD Joint Venture & Another, case number (52056/16) [2018] ZAGPPHC 679. The amount concerned was now the balance of R21 668 452.60. Meyer J made the following order:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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## Rand Water v Taroline (Pty) Ltd and Others (2024-124556) [2025] ZAGPPHC 571 (4 June 2025)
Rand Water v Taroline (Pty) Ltd and Others (2024-124556) [2025] ZAGPPHC 571 (4 June 2025)
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO: 2024-124556
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE
04/06/2025
SIGNATURE
In
the matter between:
RAND
WATER
Applicant
And
TAROLINE
(PTY) LTD
First
Respondent
ZUIKERBOSCH
BIOCAL PRODUCTS CC &
TAROLINE
(PTY) LTD JOINT VENTURE
Second
Respondent
MILLS
& GROENEWALD ATTORNEYS
Third
Respondent
SHERIFF
SANDTON SOUTH
Fourth
Respondent
NEDBANK
LIMITED
Fifth
Respondent
JUDGMENT
MBONGWE
J:
INTRODUCTION
[1]
This opposed application was brought on urgency
in terms of Rule 6 (12) of the Uniform Rules of the Court and served
before me on
31 October 2024. The applicant sought an order declaring
a writ of execution in favour of the first respondent for the
recovery
0f R 20 157 445.90 invalid and setting it aside,
alternatively, the suspension of the execution of such writ. Having
heard the arguments and considered the matter, this court gave an
ex-tempore
judgment in
terms of which the writ concerned was declared invalid and set aside.
[2]
Counsel for the parties were requested to submit
their heads of argument on the issues argued and costs. This was
done, albeit later
than the agreed dates – on 19 December 2024
and 7 January 2025 by the Applicant and First Respondent,
respectively.
BRIEF
BACKGROUND FACTS
[3]
Taroline (Pty) Ltd, the First Respondent and an
entity called Zuikerbosch Biocal Products CC formed a joint venture,
the second
respondent, which was awarded a tender by Rand Water for
the removal of sludge. Rand water and the second respondent
subsequently
concluded a written agreement in terms of which any
dispute that may arise between the two parties shall be referred to
arbitration.
[4]
In 2016 the second respondent had issued summons
in this court under case number 52056/16 against Rand Water for
payment of the
amount of R23 671 673.68, which amount was
subsequently upheld by the arbitrator, Ezra Goldstein who on 24 May
2016 issued
the award in favour of the second respondent. During the
arbitration the arbitrator had made an interim award for payment of
R2 093 221.03,
which Rand Water duly paid.
[5]
Rand Water instituted proceedings in this court
seeking the review and setting aside of the arbitration award. The
review application
came before Meyer J in the matter of
Rand
Water v Zuikerbosch Biocal Products CC and Taroline (PTY) LTD Joint
Venture & Another, case number (52056/16) [2018] ZAGPPHC
679
.
The amount concerned was now the balance of R21 668 452.60.
Meyer J made the following order:
5.1
The award of R1 511 006.70 forming part
of the award of R21 668 452.60 is set aside as well as for
the payment
of interest on the amount of R1 511 006.70 at 9% per
annum from 11 May 2015, as set out in paragraph [277] A.2.2.3 of the
award.
5.2
The first respondent is ordered to pay 10% of the
applicant’s costs of this application, including the costs of
two counsel,
one of whom a senior counsel.
5.3
The applicant is ordered to pay 90% of the first
respondent’s costs of the application, including those of
senior counsel.
[6]
The reason for the deduction of R 1 511 006.70,
Meyer J found, was that such amount was in respect of the sludge that
had been removed prior to the conclusion of the contract. The total
debt was, therefore R20 157 445.90.
[7]
It is necessary to state that the second
respondent (joint venture) in the present proceedings was represented
in both the arbitration
and the review proceedings by the third
respondent attorneys.
SETTLEMENT
OF THE DEBT
[8]
Following the judgment of Meyer J, the attorneys
of both Rand Water and the second respondent engaged in the
calculation of the
amounts owed, including interest as per the
judgment.
[9]
On 8 November 2018, both parties’ attorneys
agreed that the total debt including interest was the amount of
R31 305 659.00.
This amount was duly paid to the second
respondent’s attorneys, Mills & Groenewald on 27 November
2018, thus extinguishing
the debt.
ANALYSIS
AND FINDINGS
[10]
The first respondent, although forming part of
the second respondent, was not on its own a party to the proceedings
and;
10.1
had no
locus standi
to seek to recover a debt, even if there was any, on behalf of the
second respondent, let alone to have and execute the writ sought
to
be set aside in this application.
10.2
Besides, Rand Water had long made full payment of
its debt to the second Respondent’s attorneys when the writ of
execution
was issued on 24 October 2024.
CONCLUSION
[11]
It is on the basis of the findings above stated,
that this court granted the relief sought in the urgent application.
COSTS
[12]
The general rule that costs follow the result
finds application in this case.
ORDER
1.
The writ of execution for the recovery of the R20
157 445.90 from the Applicant is declared invalid and set aside;
2.
The first respondent is ordered to pay the costs
of this application, including the costs consequent upon the
employment of senior
counsel.
MPN MBONGWE
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
Appearances:
For
the Applicant:
Adv
M Sello SC
Instructed
by:
Cliffe
Dekker Hofmeyr
For
the First Respondent:
Adv
T Hlokwe
Instructed
by:
Mohale
Incorporated
Date
of hearing:
31
October 2024
Date
of Order:
31
October 2024
Date
of Judgment:
04
June 2025
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