Case Law[2024] ZAGPPHC 806South Africa
Eskom Holdings SOC Ltd v Kuyasa Mining (Pty) Ltd and Others (084710/2023) [2024] ZAGPPHC 806 (24 July 2024)
Headnotes
in Johannesburg in a private venue as determined by the AFSA Rules or the arbitrator appointed as envisaged in clause 33.6.1.1.
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
You are here:
SAFLII
>>
Databases
>>
South Africa: North Gauteng High Court, Pretoria
>>
2024
>>
[2024] ZAGPPHC 806
|
Noteup
|
LawCite
sino index
## Eskom Holdings SOC Ltd v Kuyasa Mining (Pty) Ltd and Others (084710/2023) [2024] ZAGPPHC 806 (24 July 2024)
Eskom Holdings SOC Ltd v Kuyasa Mining (Pty) Ltd and Others (084710/2023) [2024] ZAGPPHC 806 (24 July 2024)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPPHC/Data/2024_806.html
sino date 24 July 2024
FLYNOTES:
ARBITRATION – Appeal clause –
Whether
appeal lapsed
–
Private
arbitration – Notice of appeal not delivered to secretariat
of AFSA – Rule not applicable – Institution
not
involved in arbitration – Notice serving no purpose –
Applicant noted a proper appeal as contemplated by
clause of coal
supply agreement – Notice of appeal filed timeously and
served on all parties involved – Such
appeal is valid and
extant – Respondents are being opportunistic – Appeal
has not lapsed.
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
Number: 084710 / 2023
(1) REPORTABLE:
YES
/
NO
(2) OF INTEREST TO
OTHER JUDGES:
YES
/
NO
(3) REVISED:
YES
/
NO
Date:
24 July 2024
In
the matter between:-
ESKOM
HOLDINGS SOC LTD
Applicant
And
KUYASA
MINING (PTY) LTD
First Respondent
DELMAS
COAL (PTY) LTD
Second Respondent
ARBITRATION
FOUNDATION OF
Third Respondent
SOUTHERN
AFRICA
JUDGMENT
SNYMAN,
AJ
Introduction
[1]
The purpose of private
arbitration is to resolve disputes in an expeditious, informal and
cost-effective manner, by way of a process
agreed between the two
opposing parties, without having to resort to all the rigours and
formalities, as well as the systemic delays,
normally associated with
litigation in the Courts. As such, resorting back to the Court in the
course of such a process should
be kept to the minimum. In
Total
Support Management (Pty) Ltd and Another v Diversified Health
Systems
(SA) (Pty) Ltd and Another
[1]
the
Court said the following:
‘
The hallmark of
arbitration is that it is an adjudication, flowing from the consent
of the parties to the arbitration agreement,
who define the powers of
adjudication, and are equally free to modify or withdraw that power
at any time by way of further agreement
…’
[2]
The current matter,
emanating from precisely such an agreed private arbitration, does not
appear to achieve the above objectives.
The parties appear to be
unable to focus on simply getting the real dispute finally resolved,
with the matter now, for the second
time, returning to litigation in
this Court,
[2]
with such
litigation emanating from incessant technical point taking. This can
never be what is intended with private arbitration.
[3]
[3]
The above being said, the current matter to be decided concerns an
application by the applicant (Eskom) in which it seeks declaratory
relief as against the first and second respondents. The gist of the
declaratory relief sought is that it be declared that an appeal
noted
by the applicant against a private arbitration award in favour of the
first and second respondents, be declared not to have
lapsed.
Associated relief sought by the applicant is that it be directed that
the arbitration appeal panel be formally appointed,
so that the
appeal proceedings can get underway.
[4]
The application is opposed by the first respondent (Kuyasa Mining)
and the second respondent (Delmas Coal). The third respondent,
the
Arbitration Foundation of Southern Africa (AFSA), has not engaged in
the matter, and indicated that it would abide by any decision
of this
Court. For ease of reference, I will refer to the first and second
respondents jointly in this judgment as ‘
the respondents
’.
[5]
I now turn to deciding this application, by first setting out the
relevant background facts, which facts were, fortunately,
largely
common cause and / or undisputed.
The
relevant background facts
[6]
This entire matter arose from a coal supply agreement concluded
between the applicant and the respondents on 19 September 2011
(
the
CSA
). The CSA contained a private arbitration provision, in terms
of which all disputes arising from the CSA would be subjected to
private arbitration for resolution thereof. The exact structure and
process of such private arbitration will be specifically dealt
with
later in this judgment.
[7]
Unfortunately, a dispute
indeed arose between the applicant and the respondents concerning a
renegotiation of the pricing mechanisms
under the CSA. This resulted
in the respondents terminating the CSA on 8 October 2018, on the
basis that the applicant had allegedly
repudiated the CSA by failing
to agree on a new pricing mechanism. The applicant in turn disputed
any such repudiation, and demanded
compliance with the CSA. It is
these disputes that were ultimately referred to private arbitration
under the CSA.
[4]
[8]
Turning next to the private arbitration provisions contained in the
CSA, those are found in clause 33. There was no dispute
as to the
validity or the applicability of these provisions. It was also common
cause that the disputes between the parties were
arbitrable disputes
as contemplated by clause 33.2 of the CSA.
[9]
The CSA, in such clause
33, prescribes a four step dispute resolution process. Step one is
notice of the dispute to the other party,
in which notice the
referring party shall
inter
alia
identify
the nature and particulars of the dispute, and set out what is
required to be done to remedy the same. Step two happens
if the
remedying provisions in the notice are not complied with, and this
step contemplates a meeting between the parties to try
and resolve
the dispute in an amicable manner. Step three contemplates that if
the dispute cannot be amicably resolved, it must
be escalated to the
CEOs of the parties for a further attempt at resolution. And finally,
step four, as set out in clause 33.6,
is the business end of the
dispute resolution process, and prescribes the process to be followed
if the dispute cannot be resolved
by virtue of the preceding three
steps.
It
is now appropriate to quote the applicable provisions of clause
33.6.1 as they stand in the CSA. The sub-clauses thereof read
as
follows:
[5]
‘
33.6.1.1
:
‘Either Party may refer the Dispute to be finally resolved in
accordance with the rules of the Arbitration Foundation of
Southern
Africa (“AFSA”) or its successor body by an arbitrator
appointed by the President of the Johannesburg bar
Council or his
nominee. “Refer” in this sub-clause means delivering or
transmitting electronically a written notice
to the Johannesburg Bar
Council requesting the appointment of an arbitrator to determine this
Dispute. Referral of the Dispute
shall be completed on delivery to
the Johannesburg Bar Council of this notice. The Party referring the
Dispute shall thereafter
deliver or electronically transmit a copy of
the referral notice to the other Party.
33.6.1.2
: The
arbitration will be held in Johannesburg in a private venue as
determined by the AFSA Rules or the arbitrator appointed as
envisaged
in clause 33.6.1.1.
33.6.1.3
: The
arbitrator will have regard to the desire of the Parties to dispose
of such Dispute expeditiously (it being recorded that
the Parties
shall adhere strictly to the timeframes provided for in the rules and
save in the case of an agreement, not be granted
and extension of
time in respect of any matter whatsoever), economically and
confidentially and shall be obliged to provide written
reasons for
his / her decision, together with the reasons for such decision which
shall be delivered in writing to the parties
within 21 (twenty one)
days after the conclusion of the arbitration hearing.
33.6.1.4
: The
arbitrator will determine the liability for his / her charges and the
costs of the arbitration will be paid accordingly by
the Parties.
33.6.1.5
: Subject
to the provisions of clause 33.6.2, the Parties irrevocably agree
that the decision in any such arbitration proceedings
will be final
and binding on them, will forthwith be put into effect and may be
made an order of court of competent jurisdiction.’
[10]
Unlike most private arbitration agreements, the CSA makes provision
for an appeal. This is found in clause 33.6.2 of the CSA,
which
provides as follows:
‘
33.6.2
:
Either Party has the right to appeal against the decision of the
arbitrator appointed in terms of clause 33.6.1.1 provided that
this
is done within 30 (thirty) days of receipt by the Parties of the
arbitrator’s award. The appeal shall be heard by three
arbitrators, in accordance with a procedure determined by them, who
shall be appointed as follows:
33.6.2.1
: The
Party appealing will nominate one arbitrator from the ranks of
retired High Court Judges or Senior Advocates;
33.6.2.2:
The
other Party will nominate one arbitrator from the ranks of retired
High Court Judges or Senior Advocates; and
33.6.2.3
: The two
arbitrators so nominated must nominate a third arbitrator from the
ranks of retired High Court Judges or Senior Advocates.’
[11]
In December 2018, the applicant referred its dispute mentioned above
to private arbitration in terms of clause 33.6.1.1 of
the CSA. The
respondents pursued, in the same proceedings, a counterclaim for
damages resulting from breach of the CSA. An arbitrator
was appointed
by the Chair of the Johannesburg Society of Advocates on 6 December
2018, being Advocate Lindi Nkosi-Thomas SC.
[12]
The parties administered the arbitration process themselves. They
exchanged pleadings between themselves, and ultimately convened
a
pre-arbitration conference on 18 February 2019. The pre-arbitration
conference was attended by the parties’ legal representatives
and the arbitrator, and was minuted. The minutes of the
pre-arbitration conference was signed by the legal representatives
and
the arbitrator on 26 February 2019. Of importance
in casu
,
it was agreed in clause 2 of the minute that the AFSA commercial
rules shall apply (clause 2.1) and AFSA shall be appointed to
administer the arbitration (clause 2.2).
[13]
It was in the end common cause that from the outset of the
arbitration proceedings, the dispute (arbitration) was not referred
or submitted to AFSA for administration, nor was the arbitration
conducted under the auspices or supervision of AFSA. It was also
common cause that despite the provisions of clause 2.2 of the
pre-arbitration minute of 26 February 2019, AFSA was never appointed
to administer the arbitration. At all times, the arbitration
proceedings were managed by the arbitrator herself, and the parties
dealt with it between themselves, until the arbitrator ultimately
rendered her award.
[14]
The arbitration award by arbitrator Nkosi-Thomas SC was rendered on
27 February 2023. The arbitrator upheld the respondents’
alternative claims in the arbitration and awarded them R696 243
120.42 in damages. The applicant was dissatisfied with the
award,
because it considered the award fundamentally flawed in various
respects, which included factual findings made, and it being
contrary
to established law. Consequently, and in terms of clause 33.6.2 of
the CSA, the applicant noted an appeal on 2 March 2023.
This was done
by way a written notice of appeal sent to the respondents and the
arbitrator. It was undisputed that this was done
within the time
limit prescribed by clause 33.6.2 of the CSA. It was common cause
that this notice of appeal was never delivered
to the Secretariat of
AFSA, and was thus never lodged with AFSA.
[15]
On 27 March 2023, the applicant, in terms of clause 33.6.2.1 of the
CSA, sent a letter to the respondents, nominating Retired
Justice
Brand or, failing him, Retired Justice Harms or Nugent, to be
appointed as its nominated appeal arbitrator. The applicant
requested
that the respondents now nominate their appeal arbitrator as
contemplated by clause 33.6.2.2 of the CSA. It is at this
point that
matters went awry.
[16]
The respondents did not answer the applicant’s letter of 27
March 2023. This resulted in follow-up letters by the applicant
on 31
March and 20 April 2023. On 21 April 2023, the respondents finally
answered, indicating that they were only prepared to submit
their
nomination of an appeal arbitrator under article 22.5 of the AFSA
rules but were awaiting the directive from the Secretariat
of AFSA as
to the fees payable, before making its nomination.
[17]
The applicant responded on 4 May 2023, indicating that the nomination
process of the appeal arbitrators panel was governed
by clause 33.6.2
of the CSA and not the AFSA Rules, so therefore the reference to the
AFSA Rules was incorrect. The applicant demanded
that the respondents
nominate an appeal arbitrator. The respondents were unpersuaded, and
in a letter on 11 May 2023, indicated
to the applicant that its view
was that the appeal must be conducted under the AFSA Rules, and
therefore, without the fees being
determined by the AFSA Secretariat
prior to the appointment of arbitrators, they would not be nominating
an appeal arbitrator.
The respondents also relied on the
pre-arbitration minute of 26 February 2019 in support of their
contention.
[18]
What next followed was a number of interactions (including
correspondence) between the parties in an attempt to resolve this
impasse relating to the nomination of appeal arbitrators. There are a
number of factual disputes emanating from the founding affidavit
of
the applicant and the answering affidavit of the respondents, as to
what actually transpired in the course of this interaction,
what was
discussed, and what was the position ultimately adopted by the
parties. However, and in my view, nothing turns on this,
and I do not
believe it necessary to decide which version holds true. The case
in
casu
can be properly decided without having to become embroiled
in this factual dispute. Suffice it to say, what at least emerges as
undisputed is that the applicant agreed, in order to get the appeal
moving forward, to engage AFSA to conduct the appeal under
its
administration and Rules. This was confirmed in a letter on 22 May
2023 by the applicant to the respondents, in which it was
stated that
AFSA would be approached to appoint the arbitrators under the AFSA
Rules and that the matter could then proceed.
[19]
In reaction, and on 25 May 2023, the respondents answered, stating
that they nominated either Adv. Maenetje SC or Adv. Mokoena
SC, as
their appointed appeal arbitrator. It was added in this letter that
the applicant should emphasize to the AFSA Secretariat
to proceed in
terms of articles 22.4.1 and 22.4.2, which involved the determination
of fees of the appeal arbitration and thereafter
the formal
appointment of arbitrators.
[20]
As undertaken, and on 30 May 2023, the applicant then sent a letter
to the AFSA Secretariat, requesting that the appeal arbitration
proceed under the AFSA Rules. The respondents also followed up with
AFSA on 8 June 2023 as to the progress of the matter, and appeared
to
have been informed by AFSA that as far as it was concerned, that
there was no live appeal in this case. In addition, Isabel
Terk
(Terk), the AFSA Registrar, sent an e-mail to arbitrator Nkosi-Thomas
SC on 8 June 2023, stating that ‘
We are not dealing with the
matter as it is clear that the parties have been dealing directly
with you. Please respond to the attorneys.
We have not registered any
appeal in this matter.
’
[21]
Given AFSA’s stance in this matter, the applicant once again
sought to engage with the respondents on how to resolve
this, so that
the appeal could proceed. It appears that the respondents then
snatched at the bargain they now perceived, and on
22 June 2023
indicated that they were of the view that the applicant’s
appeal had lapsed, and payment of the amount awarded
in the
arbitration award was demanded.
[22]
On 27 July 2023 the applicant sent a letter to AFSA, explaining that
AFSA had never administered the arbitration, however given
the
agreement contained in the exchange of correspondence between the
parties in the period 22 May to 25 May 2023 referred to above,
AFSA
would now be appointed to carry out administrative functions in
respect of the appeal, in particular in respect of appointing
arbitrators and determining the fees in terms of the AFSA Rules. AFSA
was asked to proceed accordingly.
[23]
AFSA refused to play ball. In an email by Terk to the applicant on 31
July 2023, Terk indicated that her view was that the
CSA required
AFSA to administer the arbitration process between the parties from
the outset, however AFSA was not involved in the
arbitration. Terk
referred to some agreement between the parties that AFSA would not be
involved. She concluded that ‘
Having been left out of these
proceedings we cannot comment further
’. The upshot is that
AFSA effectively refused to accept the appeal, because it did not
administer the arbitration from the
outset.
[24]
This response by Terk added fuel to the fire of the respondents’
view that the applicant’s appeal had lapsed. On
31 July 2023,
they reiterated that view by way of a letter to the applicant. As far
as the respondents were concerned, a declaratory
Court order was
needed to the effect that the appeal had not lapsed, in order for the
appeal to proceed.
[25]
Undeterred, the applicant sought to confirm with retired Justice Band
and Advocate Mokoena SC, whether they would be prepared
to sit on the
appeal panel in this matter, should the applicant obtain declaratory
relief from this Court to the effect that its
appeal had not lapsed.
They both indicated that they would be available to do so, and would
abide by any decision the Court made.
The current application then
followed.
Analysis
[26]
Ultimately, what must be decided in this case is straight forward.
Did the applicant’s appeal against the arbitration
award of
arbitrator Nkosi-Thomas SC lapse? However, answering this question is
not as easy as it may on face value appear. Many
different factors,
in my view, come into play, all of which have an impact on how this
case would ultimately be decided.
[27]
It is perhaps best to first determine why it is said the applicant’s
appeal has lapsed, considering it was common cause
that applicant did
file a notice of appeal promptly, being some five days after delivery
of the arbitration award. It was also
common cause that the notice of
appeal was served on all the parties involved in the appeal,
including the arbitrator. Certainly,
that would at least
prima
facie
constitute compliance with clause 33.6.2 of the CSA, as it
reads. This means it is up to the respondents to say why they
consider
the appeal to have lapsed. In this regard, the answer they
provide is simple, being that the appeal notice should have been
delivered
to the Secretariat of AFSA, as contemplated by article 22.2
of the AFSA Rules, which provides that: ‘
A notice of appeal
shall be delivered by the appellant, within 7 calendar days of
publication of the award, failing which the interim
award or final
award shall not be appealable
’, and ‘
delivered
’
in turn being defined in the article definitions as: ‘
To
deliver or send copies to all parties as provided for in these Rules
and to file the original to the Registrar ...’.
[28]
As a point of departure
in deciding this case, it cannot be forgotten what one is dealing
with is agreed private arbitration as
mechanism to resolve disputes
with minimum formality and due expedition. Considering that there are
no issues in this case about
the terms of reference, jurisdiction,
powers and nature of the dispute being susceptible to being
arbitrated, it must follow that
the arbitration process, or
differently put the manner in which the arbitration is to be
conducted, is of lesser importance. The
only proviso must be that the
parties receive a fair hearing of their respective cases. The Court
in
Lufuno
Mphaphuli and Associates (Pty) Ltd v Andrews and Another
[6]
authoritatively dealt with this as follows:
‘
... we must
recognise that fairness in arbitration proceedings should not be
equated with the process established in the Uniform
Rules of Court
for the conduct of proceedings before our courts. Secondly, there is
no reason why an investigative procedure should
not be pursued as
long as it is pursued fairly. The international conventions make
clear that the manner of proceeding in
arbitration is to be
determined by agreement between the parties and, in default of that,
by the arbitrator. Thirdly, the process
to be followed should be
discerned in the first place from the terms of the arbitration
agreement itself. Courts should be respectful
of the intentions of
the parties in relation to procedure. In so doing, they should bear
in mind the purposes of private arbitration
which include the fast
and cost-effective resolution of disputes. If courts are too quick to
find fault with the manner in which
an arbitration has been
conducted, and too willing to conclude that the faulty procedure is
unfair or constitutes a gross irregularity
within the meaning of s
33(1), the goals of private arbitration may well be defeated.'
And
in
Telcordia
Technologies Inc v Telkom SA Ltd
[7]
it was said:
‘… By
agreeing to arbitration parties to a dispute necessarily agree that
the fairness of the hearing will be determined
by the provisions of
the Act and nothing else. …’
[8]
[29]
So, the primary objective
to be achieved by private arbitration is that the substance of the
dispute be finally determined with
minimum formality. An
interpretation of the CSA, which contains the private arbitration
agreement, that would be irreconcilable
with this primary objective,
should be avoided. As said in
Du
Toit NO v the Road Accident Fund
[9]
:
‘
I am well aware
that the aim and purpose of private arbitration, like in this
instance, includes the fast and cost-effective resolution
of
disputes. In my view, robust debate and investigative procedures
should be allowed and encouraged, as long as it is pursued
in a just
and fair manner. Moreover, if courts are too quick to find fault with
the manner in which an arbitration has been conducted
and too willing
to conclude that faulty procedures are unfair or constitutes a gross
irregularity, the goals of arbitration may
well be defeated.’
[30]
The above being said, the
principles where it comes to interpreting written instruments /
agreements, such as the CSA
in
casu
,
are now fairly trite. In
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[10]
the Court held as follows:
‘
...The present
state of the law can be expressed as follows: Interpretation is the
process of attributing meaning to the words used
in a document, be it
legislation, some other statutory instrument, or contract, having
regard to the context provided by reading
the particular provision or
provisions in the light of the document as a whole and the
circumstances attendant upon its coming
into existence. Whatever the
nature of the document, consideration must be given to the
language used in the light of the
ordinary rules of grammar and
syntax; the context in which the provision appears; the apparent
purpose to which it is directed
and the material known to those
responsible for its production. Where more than one meaning is
possible each possibility must be
weighed in the light of all these
factors. The process is objective, not subjective. A sensible meaning
is to be preferred to one
that leads to insensible or unbusinesslike
results or undermines the apparent purpose of the document. Judges
must be alert to,
and guard against, the temptation to substitute
what they regard as reasonable, sensible or businesslike for the
words actually
used. To do so in regard to a statute or statutory
instrument is to cross the divide between interpretation and
legislation; in
a contractual context it is to make a contract for
the parties other than the one they in fact made. The 'inevitable
point of departure
is the language of the provision itself', read in
context and having regard to the purpose of the provision and the
background
to the preparation and production of the document.’
[31]
The approach established
in
Endumeni
supra
has
been consistently applied since.
[11]
Because it is in my view of importance to the decision to be made
in
casu
,
some specific refences to the application of the
Endumeni
principles, for the want
of a better description, is necessary. In
Capitec
Bank Holdings Ltd and Another v Coral Lagoon Investments 194 (Pty)
Ltd and Others
[12]
the Court had the following to say:
‘
... I would only
add that the triad of text, context and purpose should not be used in
a mechanical fashion. It is the relationship
between the words used,
the concepts expressed by those words and the place of the contested
provision within the scheme of the
agreement (or instrument) as a
whole that constitute the enterprise by recourse to which a coherent
and salient interpretation
is determined …’
And
in
University
of Johannesburg v Auckland Park Theological Seminary and Another
[13]
it was held:
‘…
The
Supreme Court of Appeal has explicitly pointed out in cases
subsequent to
Endumeni
that
context and purpose must be taken into account as a matter of course,
whether or not the words used in the contract are ambiguous.
A court
interpreting a contract has to, from the onset, consider the
contract's factual matrix, its purpose, the circumstances
leading up
to its conclusion, and the knowledge at the time of those who
negotiated and produced the contract …’
[32]
The conundrum that arises
in casu
is solely as a result of
the introduction of the AFSA Rules into the interpretation equation,
and how these Rules then impact upon
the arbitration process
prescribed by the CSA. There can be no doubt that the AFSA Rules must
be considered as part of the unitary
exercise of interpreting the
CSA. After all, they are made applicable by reference, considering
the use of the phrase ‘…
resolved
in accordance with the rules of the Arbitration Foundation of
Southern Africa (“AFSA”) …
’
in clause 33.6.1.1 of the
CSA. In any event, if there was any doubt as to this, it is dispelled
by clause 2.1 of the pre-arbitration
minute of 26 February 2019,
which makes the application of these Rules clear.
[14]
[33]
The applicant argued that
the AFSA Rules do not apply to the appeal process in clause 33.6.2 of
the CSA, because all the references
to the application of such Rules
only relate to the initial arbitration proceedings under clause
33.6.1 of the CSA, with the appeal
process being a distinct and
separate process where no such references apply. I am unable to agree
with this argument of the applicant.
First and foremost, resolving
any dispute ‘
to
finality
’
as
provided for in clause 33.6.1.1 can only mean a singular exercise,
starting with a dispute referral and ending with an appeal
outcome,
and even then, that same dispute is still subject to this Court’s
review jurisdiction under section 33(1) of the
Arbitration Act.
Throughout these multiple stages in the dispute resolution process,
it nonetheless remains one dispute, leading
to one ultimate outcome,
depending how far the challenge is taken. Albeit in the context of
prescription, the Court in
Cape
Town Municipality and Another v Allianz Insurance Co Ltd
[15]
held:
‘…
A
creditor prosecutes his claim under that process to final, executable
judgment, not only when the process and the judgment constitute
the
beginning and end of the same action, but also where the process
initiates an action, judgment in which finally disposes of
some
elements of the claim, and where the remaining elements are disposed
of in a supplementary action instituted pursuant to and
dependent
upon that judgment …’
[34]
I am satisfied that the reference to the ‘
Dispute to be
finally resolved in accordance with the rules of the Arbitration
Federation …
’, as found in clause 33.6.1.1 of the
CSA encompasses the appeal process as well, should an appeal be
pursued, and the appeal
under clause 33.6.2 should therefore also be
conducted in accordance with the AFSA Rules.
[35]
But that is not the end of the enquiry. Does the fact that the
arbitration proceedings (including the appeal proceedings) are
to be
conducted ‘
in accordance with
’ the AFSA Rules mean
that all those rules,
per se
and without more, must always
apply? For the reasons to follow, I am compelled to answer this
question in the negative. It is in
fact in this context that the
distinction between an arbitration conducted under the auspices or
administration of AFSA itself
on the one hand, and an arbitration
that is conducted by the parties themselves by applying the rules of
AFSA, becomes critical.
[36]
In order to decide the consequence of the aforesaid distinction, what
would be required is a consideration of the AFSA Rules
themselves. In
this context, the very purpose of the activities of AFSA, to which
these Rules relate, cannot be ignored. In article
2.1, it is provided
that AFSA: ‘
... conducts its activities of providing
administrative means for the conduct of arbitration proceedings. Its
activities include
the appointment of a panel of persons who have
agreed to act as arbitrators under the aegis of and according to the
Rules of the
Foundation, the appointment of an arbitrator or
arbitrators for resolution of particular disputes, the provision of
the venue and
the administrative services for conduct of arbitration
proceedings under and in accordance with these Rules for fees
covering its
administrative services and provision of a venue and the
fees and expenses of the arbitrator or arbitrators.
’. And
in article 2.2.1, it is recorded that: ‘
The Foundation's
activities in providing the aforesaid arbitration facilities are
controlled by a Secretariat, which comprises the
persons appointed by
AFSA
’.
[37]
What is clear to me from
the aforesaid is that in terms of the AFSA Rules themselves, it is
intended that these Rules apply as they
stand, in all respects, only
where AFSA actually administers the arbitration proceedings. My view
in this regard is fortified by
further provisions in the AFSA Rules
themselves. Importantly, and as to how arbitration proceedings are to
be initiated, article
4.1 prescribes that a party wishing to resort
to arbitration ‘
under
the aegis of and according to the Rules of the Foundation
’
,
shall submit a written ‘
Request
for Arbitration
’
to
the Secretariat of AFSA through the office of the Registrar. This
notice must contain certain prescribed particulars,
[16]
and the ‘
first
fee
’
payable
to AFSA.
[17]
It is however
then still up to AFSA to decide whether to accept the referral or
nor, in its own discretion.
[18]
[38]
But where AFSA accepts
the referral, it effectively takes over the entire case management of
the arbitration proceedings, for the
want of a better description,
which even includes the management of fees payable. This further
includes that AFSA itself serves
the referral on the ‘
defendant
’
and calls upon it to file
a response,
[19]
which response
must in turn be filed with the Secretariat.
[20]
It is also AFSA itself that appoints the arbitrator,
[21]
provided both parties have paid a ‘
first
fee
’
to
AFSA,
[22]
and then notifies
the parties of such appointment.
[23]
AFSA will only authorise the arbitrator to proceed with the
arbitration if upfront fees have been paid to it.
[24]
The Secretariat also supplies the arbitrator with the case file.
[25]
Upon conclusion of the arbitration, the arbitrator returns the entire
case file (including the record of the arbitration) to the
Secretariat.
[26]
All this, in
a nutshell, is what transpires where AFSA ‘administers’
the arbitration.
[39]
The appeals process found
in article 22 of the AFSA Rules in my view clearly contemplates
proceedings where AFSA administers the
appeal itself. This is evident
from article 22.4. What is prescribed in this article is an estimate
of the fees for the appeal,
and calling upon the parties to pay such
fees in advance.
[27]
Once the
fees are paid, the Secretariat appoints the appeal arbitrators.
[28]
This can only effectively happen where AFSA has the arbitration
record and case file.
[40]
It is true, as touched on above, that article 22.2 prescribes that an
appeal notice must be delivered within seven days of
delivery of the
arbitration award. Article 22.3 then prescribes the format of the
notice of appeal, and records: ‘
The notice of appeal and
notice of cross-appeal, if any, shall state whether the whole or part
only of the award or interim award
is appealed against, and, if only
part thereof is appealed, it shall state which part, and shall
further specify the findings of
fact and rulings of law appealed and
the grounds upon which the appeal or cross-appeal is founded
’.
No appeal notice in such a format was filed by the applicant.
[41]
And finally, even where AFSA administers the arbitration, the Rules
do not intend to substitute any contrary process specifically
agreed
to by the parties in the arbitration agreement, considering article
3.3, which reads: ‘
These Rules … supplement any
specific provisions of an arbitration agreement to arbitrate under
the aegis of or according
to the Rules of the Foundation, in so far
as such specific provisions are silent on matters provided for in
these Rules …
’.
[42]
So, if the arbitration is conducted under the auspices /
administration of AFSA, then obviously all its Rules will apply
without
more, subject only to what the parties may have otherwise
agreed to as recorded in the arbitration agreement itself. But what
if
the parties administer the arbitration themselves, without
engaging AFSA as prescribed by the various articles in the AFSA Rules
referred to above, but nonetheless agree to conduct the arbitration
‘
in accordance with
’ the AFSA Rules?
[43]
Surely, as a matter of
common sense and logic, an arbitration cannot be conducted under the
auspices of AFSA (or differently put
administered by AFSA), where the
referring party does not file a referral with AFSA, no fees are paid
to it, it does not manage
the case, and it does not appoint and / or
brief the arbitrator. Therefore, none of these articles can apply,
even though other
articles relating to issues such as,
inter
alia
,
the powers of an arbitrator, the issuing of awards, calling of
witnesses, representation of the parties, and awards of costs,
would.
[29]
[44]
In simple terms,
conducting an arbitration outside the auspices / administration of
AFSA, but ‘
in
accordance with
’
the
AFSA Rules, must mean the applying of only those AFSA Rules that may
be applicable to the conducting of the arbitration proceedings
itself, subject to the specific processes prescribed in the
arbitration agreement.
[30]
In
cannot be the entire AFSA rule book, so to speak,
per
se
. In
Canton
Trading 17 (Pty) Ltd v Hattingh NO
[31]
the Court held:
‘
The commercial
rules of AFSA, applicable to domestic arbitrations, supplement any
specific provisions of an arbitration agreement
to arbitrate under
the aegis of or according to the rules of the foundation, in so far
as such specific provisions are silent on
matters provided for in the
rules …’
[45]
In
Yunnan
Engineering CC and Another v Chater and Others
[32]
the Court considered a provision in an arbitration agreement where
the parties recorded that the arbitration proceedings would
be
‘
guided
by
’
the
AFSA Rules. In my view, this is comparable to an arbitration
agreement recording the words that the arbitration would be conducted
‘
in
accordance with
’
the
AFSA Rules. The Court in
Yunnan
supra
held:
[33]
‘…
the word
'guide' in
The
South African Concise Oxford Dictionary
as
a verb is described as meaning 'show or indicate the way to'. In my
view, there are no such peremptory overtones as in the word
'govern'.
Had the parties wanted the Rules of AFSA to be peremptory, then they
would have used the same word 'govern' as they did
with regard to the
Arbitration Act. This, however, does not mean that these Rules can be
unilaterally ignored by one of the parties.
These Rules are a guide.
Where there has got to be a departure from such AFSA Rules, such
departure must be consensual, otherwise
it would be nonsensical for
the parties to agree on a guide which will be departed from as and
when any of the parties wishes to,
and as and when it suits him. In
as much as the Rules are a guide, they cannot be ignored
unilaterally, and the one who does so,
does so at his own peril.
Where there has been non-compliance with the said 'guide' being the
AFSA Rules, and such non-compliance
is not consensual, the approach
to be adopted is to look at the extent of non-compliance, in other
words how far has the other
party strayed away from the Rules and
whether such departure is reasonable. …’
Whilst
it is true that in the end, the Court in
Yunnan
decided that the appeal
brought in that case had lapsed in terms of the AFSA Rules, the facts
in that case are entirely distinguishable
from the facts
in
casu
,
especially considering that the appeal in that case was filed
materially late.
[34]
[46]
I also make reference to
Mdia's
Travel CC v Siyaya Teledata Comm and Couriers CC
[35]
as another appropriate example. There, the parties agreed to make the
AFSA Rules applicable to the arbitration. It was argued in
this
context that this agreement meant that the parties bound themselves
to seek registration of the dispute with the Secretariat
of AFSA, and
AFSA then had to appoint an arbitrator, arrange a venue where the
arbitration proceedings would take place, issue
notices and collect
fees for such administrative services. It was then argued that
because this did not happen, the arbitration
proceedings were
irregular.
[36]
It however
became apparent that the arbitration agreement itself prescribed how
an arbitrator should be appointed and what the
experience and
qualification of that arbitrator should be.
[37]
The Court had the following to say:
[38]
‘…
It
appears from the definition of the term "
proviso
"
as aforementioned that the parties retained the power to appoint the
arbitrator. That being the case, the parties had, by
implication,
left it to themselves to issue notices of a hearing exactly as Mr
Abrahams did. In the circumstances the supplementation
of the
arbitration agreement of the parties by application of AFSA rules as
referred to in Article 3.3 does not kick-in. It must
follow that it
was not intended by the parties that AFSA would be responsible to
issue arbitration notices for a hearing that would
not be conducted
by it.’
In
casu
, and similarly, the CSA prescribed how not only the original
arbitrator had to be appointed, but also how the appeal arbitrators
should be appointed. This does not in any manner involve AFSA, but
requires appointment by the parties themselves. In my view,
and
applying the reasoning in
Mdia's Travel
, it should not be
expected that notices a required to be issued to AFSA
in casu
.
[47]
A final reference in this
context is to
Transnet
(SOC) Limited v Tenova Mining and Minerals South Africa (Pty) Ltd and
another
[39]
.
In that case, the arbitration agreement provided that it would be
conducted ‘
in
accordance with
’
the
AOA rules (these rules are similar to the AFSA Rules). The Court
considered that in this context, what had happened is that
the
parties did not want to incur fees and costs by involving the AOA
or AFSA, and therefore AOA did not administer the arbitration
but the parties self-administered the same, with AOA not even being
aware of the arbitration as it was not under its auspices.
[40]
The Court concluded as follows in this regard.
[41]
‘
Upon
an interpretation of the arbitration agreement between the parties it
is clear that it is a self-regulated arbitration with
the arbitration
to only follow the format or process of the AOA rules. The only rule
of the AOA that the parties specifically invoked
was if there was a
dispute arising from the appointment of the Arbitrator. The agreement
did not invoke Rule 9 to remove the arbitrator.
If the intention of
clause 6 was to invoke all the rules of the AOA then clause 5.2 would
have been redundant. If the AOA rules
as a whole was to govern this
arbitration, agreeing to this clause pertinently, would have been
unnecessary. The only inference
is that the only rule of the AOA that
was specifically incorporated was the appointment of the Arbitrator.’
[48]
Which of the AFSA Rules would find application would not only be
determined by the text of the CSA, but would also be informed
by the
manner and context in which the actual arbitration proceedings were
conducted. The facts
in casu
serve as a prime example. It was
common cause that the parties managed the exchange of pleadings and
the conducting of the arbitration
process themselves, under the
auspices of the arbitrator herself. That being so, it can hardly be
now said that the proceedings
are irregular and / or invalid because
it may not have followed what is prescribed in the AFSA Rules about
the referral of the
dispute and then administration of the
arbitration. Such an approach would fly in the face of one of the
primary objectives of
private arbitration proceedings, as discussed
above, by creating unnecessary formality and technicality when it is
not warranted.
[49]
The exposition set out above now brings me neatly back to the case
in
casu
and the point that the appeal lapsed because the notice of
appeal was not delivered to the Secretariat of AFSA. As stated, it is
true that the CSA requires that the arbitration be conducted in
accordance with the Rules of AFSA, and that article 22.2, as it
reads, requires delivery of any notice of appeal to AFSA. But would
this really apply in this case? In my view, the answer must
be a firm
‘
no
’. The simple reason for this is that it cannot
be expected, in the context of all that is discussed above, that a
process
such as a notice of appeal, be delivered to an institution
such as AFSA where such institution is not involved in the
arbitration
of the case at all. After all, it is one unitary process
from original referral to appeal. What can possibly be the point of
serving
an appeal notice on AFSA in respect of a case it was never
involved in and was entirely unaware of? Such an action cannot serve
any purpose, especially considering how the CSA actually prescribes
the appeal process in clause 33.6.2. In simple terms, the clause
requires notification of the appeal to the other party, followed by
the appealing party’s nomination of its arbitrator, the
other
party’s own nomination of its arbitrator, and the two nominated
arbitrators then nominating a third arbitrator. This
appeal
arbitration panel then decides the manner in which the appeal
arbitration is to be conducted. None of this requires the
involvement
of AFSA at all, which is simply a continuation of its complete lack
of involvement up this point.
[50]
In my view, the applicant ultimately simply agreed to get AFSA on
board in the appeal process so as to get the appeal going,
because
the appeal had stalled as a result of the approach adopted by the
respondents. The applicant had first made its view clear
that it was
not required to conduct the appeal in accordance with article 22 of
the AFSA Rules. The respondents were however unrelenting
in their
insistence that article 22, and especially article 22.4, must be
applied. And that is where things ground to a halt. The
applicant
decided to follow the line of least resistance, so its appeal can at
least proceed to be heard. After all, it was staring
down a liability
of close on R700 million. It engaged AFSA to administer the appeal.
AFSA’s own reaction to this approach
in fact illustrates the
very point I have sought to make in this judgment. AFSA effectively
blew the applicant off, refusing to
accept the appeal, because it was
not involved in administering the case from the outset. I am
convinced that this was always going
to be AFSA’s reaction,
even if the original appeal notice by the applicant was delivered to
it, considering that the parties
conducted the arbitration themselves
and without AFSA.
[51]
But even if it can be
said that the appeal notice should have been given to AFSA, it is
clear to me that considering the actual
facts in this case and the
manner in which all the proceedings had been conducted to date of the
appeal, what is being propagated
by the respondents is notice for the
sake of notice, without the notice serving any purpose. This is
overly technical, and flies
in the face of what is intended with
private arbitration proceedings. It is not lost on me that in the
pre-arbitration minute,
it is recorded in clause 2.2 that the
arbitration would be administered by AFSA, however this never
happened, and certainly no-one
ever complained. The very objective of
clause 33.6.2 of the CSA had been achieved by what had come to pass,
on the undisputed facts.
That meant that article 22 of the AFSA Rules
did not serve any purpose. Thus,
cessante
ratione legis cessat et ipsa lex
.
[42]
As described in
Laubscher
NO v Duplan and Others
[43]
:
‘
...
the maxim, as already explained, is a tool of statutory
interpretation and suggests that once the reason for the law ceases,
the law itself ceases too. ...
’
.
And in
Tamasa
Trading 208 CC v Da Cardosa
[44]
,
with reference to the same maxim, it was said:
‘
Our courts have
applied the rule in order to suspend the operation of a statutory
provision if the
ratio
is
found not to exist in the specific circumstances. A court should seek
to ascertain the
ratio
of a
statutory provision in order to determine whether that
ratio
,
when applied to the particular circumstances, still exists …’
[52]
Accordingly, it is my view that the CSA never contemplated
administration of the arbitration proceedings by AFSA. If that was
the case, the agreement would have said so. Instead, the CSA
stipulated that the arbitration shall be conducted ‘
in
accordance with
’ the AFSA rules, which, as I have said,
does not require administration of the arbitration by AFSA, and could
only have been
intended the supplement the arbitration process where
the CSA provisions may be lacking, and not to substitute or override
such.
The conduct of both parties throughout was entirely
inconsistent with an arbitration process requiring application of all
the AFSA
Rules,
per se
, which is especially evident from the
fact that although the parties in the pre-arbitration expressed the
wish to have AFSA administered
arbitration, this never happened. And
finally, considering the appeal was noted and prosecuted in a manner
consistent with the
text of clause 33.6.2, article 22 of the AFSA
Rules served no purpose. It must follow from all of this that the
applicant has noted
a proper appeal as contemplated by clause 33.6.2
of the CSA, and such appeal is valid and extant. The applicant’s
appeal
has accordingly not lapsed, and the applicant is entitled to
the declaratory relief sought in this regard.
[53]
I am convinced that the
respondents are simply being opportunistic, and effectively snatched
at the bargain presented to them when
AFSA adopted the attitude that
it did. The respondents saw this as the opportunity to scupper the
appeal, on an unwarranted technical
ground, which could never have
been the intention of the parties in providing for private
arbitration to resolve disputes between
them. The fact that the
respondents were quite willing, and did, nominate their own
arbitrator as prescribed in clause 33.6.2.2
of the CSA and only
sought to invoke the AFSA Rules on the issue of fees (specifically
referring to article 22.4) prior to becoming
aware of AFSA’s
attitude towards the appeal, cements my view in this regard. I view
this behaviour as unacceptable. As held
in
Cadac
(Pty) Ltd v Weber-Stephen Products Co and Others
[45]
:
‘
...
Litigation
is not a game
.’
[54]
On final issue must be dealt with. Obviously appreciating the
unravelling of their case relating to the appeal having lapsed,
the
respondents made one last ditch effort in argument before me to
nonetheless scupper the appeal. This argument was founded on
article
22.3 of the AFSA Rules, which requires an exposition of the grounds
of appeal and what part of the award is being appealed
against, for a
valid notice of appeal. On the undisputed facts, the applicant’s
notice of appeal simply records that it appeals,
without any such
exposition. The argument presented by the respondents is to the
effect that non-compliance with article 22.3 thus
renders the notice
of appeal invalid and the appeal lapsed. The respondents however have
an insurmountable difficulty even seeking
to raise this issue. This
difficulty is that this case was never pleaded, or even raised in the
answering affidavit.
[55]
It is trite that a
litigant is bound by its case as pleaded.
[46]
In addition, and because the proceedings
in
casu
are
motion proceedings, the affidavits not only constitute the pleadings
in the case, but also constitute the evidence. This being
so, it is
not permissible for the respondents to raise a case not pleaded or
articulated in the answering affidavit.
[47]
The following
dictum
in
Exploitatie-
en Beleggingsmaatschappij Argonauten 11 BV and Another v Honig
[48]
is apposite
in
casu
:
‘…
in motion
proceedings the affidavits serve as both the pleadings and evidence
relevant to the issues between the parties, and a
party can only be
expected to deal with averments raised by the other side and not with
allegations possibly anticipated but which
are not made. Had the
appellants raised the alleged delays and their contention that the
court should decline to deal with the
matter as a result, the
respondent may well have offered a perfectly acceptable explanation.
Without the respondent having been
called upon to do so, it would not
be proper to decide the application against him by having regard to
an issue that he was not
called upon to meet. …’
[56]
But even worse still, the
respondents’ pleaded case in the answering affidavit disavows
any reliance on article 22.3, and
specifically limits their challenge
only to the issue of the appeal notice not being delivered to the
AFSA Secretariat.
[49]
In fact,
the respondents say: ‘
Eskom
invoked
and followed the AFSA Commercial Rules in all respects of the appeal
.... except for this
crucial aspect: it failed to “deliver” the notice of
appeal as prescribed ...
’
(emphasis
added). It follows that this belated case of an alleged
non-compliance with article 22.3 is simply not open for
consideration,
must be refused on this basis alone.
[57]
Considering the decision I have come as aforesaid,
it is not necessary for me to decide the applicant’s
alternative case that
the respondents acquiesced in the conducting of
the appeal process, and simply could not challenge such appeal as
having lapsed
at a later stage, on the basis of the application of
issue estoppel. I will therefor make no finding on this.
[58]
In the end, I feel
compelled to refer to the following pertinent statement made by
Sutherland JA in
Adams
v National Bargaining Council for the Road Freight and Logistics
Industry and Others
[50]
,
which I believe finds room for repetition
in
casu
:
‘
Although
it is highly desirable for good order that rules be complied with on
their own terms, the function of the rule is the paramount
consideration and, where it can be safely found that the purpose of
the rule is achieved, it is highly undesirable to approach
the matter
in a literalist way. Mechanical thinking is anathema to our law ...’
Conclusion
[59]
For all the reasons set out above, I am satisfied that the applicant
is entitled to the declaratory relief sought in the notice
of motion,
to the effect that its appeal against the arbitration award issued on
27 February 2023 by arbitrator Nkosi-Thomas SC
has not lapsed. I am
of the view that the notice of appeal filed by the applicant on 2
March 2023 was timeously served on all the
parties involved in the
arbitration, which is what is contemplated by clause 33.6.2 of the
CSA, and as matters stand, remains extant.
Article 22.2 of the AFSA
Rules finds no application in this instance.
[60]
On the facts, it is clear that the two arbitrators nominated by both
the parties in terms of clauses 33.6.2.1 and 33.6.2.2
of the CSA,
have properly been nominated by them, are retired Justice Brand and
Advocate Mokoena SC, and both these arbitrators
have accepted their
nomination and indicated their willingness to sit on the appeal
arbitration panel. All that is left is for
these two arbitrators to
appoint a third arbitrator in terms of clause 33.6.2.3, and then the
three of them will decide on the
conducting of the appeal process
going forward. As prayed for, the applicant would be entitled to
relief giving effect to these
provisions.
[61]
The applicant has applied for relief to the effect that AFSA formally
appoint all three the arbitrators and do all that is
necessary to
administer the appeal. But considering what I have set out above, and
in particular the attitude adopted by AFSA towards
the appeal, I do
not believe this relief is appropriate. AFSA clearly wants no part of
the appeal proceedings, and should not be
compelled to accept a case
it does not want. There is in any event no legal basis to compel AFSA
to accept any case even if the
parties agree to it being referred
there, considering that it has the discretion to decide whether to
accept a case or not. The
fact is that the parties have agreed and
decided to self-manage the entire arbitration until now, without the
involvement of AFSA.
I see no reason why they should not continue to
do so going forward.
[62]
This only leaves the issue of costs. The applicant was overall
considered successful, and is entitled to its costs. I am satisfied
that the matter is of sufficient complexity to warrant the costs of
two counsel, at scale C. I also consider the respondents’
rather opportunistic position adopted, which unnecessarily gave rise
to this matter, in making this costs award.
[63]
In all the circumstances as set out above, the
following order is made:
Order
1. It is declared that
the applicant’s (Eskom’s) appeal against the arbitration
award delivered on 27 February 2023
by Advocate Lindi Nkosi-Thomas SC
(FA1 to the founding affidavit) (“the award”), has not
lapsed.
2. It is declared that
retired Justice Brand and Advocate Mokoena SC have been duly
appointed as the nominated arbitrators of the
applicant and the first
and second respondents in terms of clause 33.6.2 of the Coal Supply
Agreement entered into between the
applicant and the first and second
respondents on 19 September 2011.
3. It is directed that
retired Justice Brand and Advocate Mokoena SC shall appoint a third
arbitrator to serve on the arbitration
appeal panel as contemplated
by clause 33.6.2.3 of the Coal Supply Agreement entered into between
the applicant and the first and
second respondents on 19 September
2011.
4. It is directed that
the appeal arbitration panel shall determine the process for
conducting the appeal of the award.
5. The first and second
respondents are ordered to pay the applicant’s costs on party
and party scale C, the one paying the
other to be absolved, which
costs shall include the costs of two counsel.
SNYMAN
AJ
Acting
Judge of the High Court of South Africa
Gauteng
Division, Pretoria
Appearances
:
Heard
on:
6
June 2024
For
the Appellant:
Advocate
J Blou SC together with Advocate D Wild
Instructed
by:
Mothle
Jooma Sabdia Inc Attorneys
For
the First and Second Respondent:
Advocate
C D A Loxton SC together with Advocate A Milovanovic –
Bitter
Instructed
by:
MacRobert
Attorneys
Date
of Judgment:
24
July 2024
[1]
2002 (4)
SA 661 (SCA)
at para 25; See also
Lufuno
Mphaphuli and Associates (Pty) Ltd v Andrews and Another
2009
(4) SA 529 (CC)
at para 197.
[2]
See
Kuyasa
Mining (Pty) Ltd v Eskom Holdings Soc Limited
2020
JDR 1581 (GJ), which concerned a dispute between the same parties
relating to the challenge of a determination by the arbitrator
relating to the discovery of documents.
[3]
See
Lufuno
(
supra
)
at para 236;
Du
Toit NO v the Road Accident Fund
2010
JDR 0600 (WCC) at para 7;
Thomas
v Heystek NO
2015
JDR 0654 (GP) at para 12;
Leanique
Peace CC v Sparkling Auto Care Services (Pty) Limited
2018 JDR 0117 (GP) at
paras 32 – 33.
[4]
The applicant later abandoned its dispute concerning compliance with
the CSA, leaving only the respondents’ claim.
[5]
The individual provisions set out in the AFSA Rules are referred to,
in those Rules themselves, as ‘
articles
’
.
[6]
2009 (4)
SA 529 (CC)
at para 236.
[7]
[2006] ZASCA 112
;
2007 (3) SA 266
(SCA) at para 50.
[8]
The Court was referring to the
Arbitration Act 42 of 1965
. In this
regard, specific reference is made to
section 14.
[9]
2010 JDR 0600 (WCC) at para 7.
[10]
2012 (4) SA 593
(SCA) at para 18.
[11]
See
Bothma-Batho
Transport (Edms) Bpk v S Bothma & Seun Transport (Edms) Bpk
2014 (2) SA 494
(SCA) at
para 12;
Unica
Iron and Steel (Pty) Ltd and Another v Mirchandani
2016 (2) SA 307
(SCA) at
para 21 and all the authorities cited there;
Nel
v De Beer and Another
2023
(2) SA 170
(SCA) at paras 22 – 23.
[12]
2022 (1) SA 100
(SCA) at para 25.
[13]
2021 (6) SA 1
(CC) at para 66.
[14]
There
was some argument presented about whether the pre-arbitration minute
in fact seeks to amend the CSA, but in my view, there
is no need to
decide this. This matter is best determined by reading the CSA
together with the pre-arbitration minute, as they
are not in
conflict with one another.
[15]
1990 (1)
SA 311 (C)
at 334G-J. See also
Food
and Allied Workers Union on behalf of Gaoshubelwe v Pieman’s Pantry
(Pty) Ltd
(2018)
39 ILJ 1213 (CC) at para 203.
[16]
Articles
4.2.1 to 4.2.5.
[17]
Article
4.2.6.
[18]
Article
5.
[19]
Article
6.1.
[20]
Article
6.3.
[21]
Article
9.
[22]
Article
9.1.3.
[23]
Article
9.2.1 and 9.2.2.
[24]
Article
10.2.3.
[25]
Article
9.2.3.
[26]
Article
17.3.
[27]
Article
22.4.2.
[28]
Article
22.5.
[29]
See
articles 11 – 20.
[30]
Compare
Yunnan
Engineering CC and Another v Chater and Others
2006 (5) SA 571
(T) at
para 18, the Court held: ‘…
In
its replying affidavit at p 189, para 3 the second applicant says
that the parties agreed to refer to the AFSA Rules where
they did
not agree on particular procedure. At para 4 he says that, if the
parties agree on a particular procedure at variance
with the
AFSA Rules, it is implied that the parties would not follow the AFSA
Rules in respect of the agreed procedure. I can
find nothing wrong
with this proposition since the parties would have agreed to depart
from the AFSA Rules to the extent that
they would have specifically
agreed upon …
’
.
[31]
2022 (4) SA 420
(SCA) at para 52.
[32]
2006 (5) SA 571
(T) at para 16.
[33]
Id
at para 17.
[34]
See
para 26.
[35]
2015 JDR 1499 (ECM).
[36]
See
para 13 of the judgment.
[37]
Para
15 of the judgment.
[38]
Id
at para 17.
[39]
2023 JDR 4179 (GP).
[40]
Para
23 of the judgment.
[41]
Id
at para 25.
[42]
See
Labuschagne
v Labuschagne; Labuschagne v Minister van Justisie
1967 (2) SA 575
(A)
at 587E-G.
[43]
2017 (2) SA 264
(CC) at para 36.
[44]
2007 JDR 0578 (T) at para 14. See
South
African Police Services v Coericius and Others
[2023] 1 BLLR 28
(LAC)
at paras 11 – 12.
[45]
2011 (3) SA 570
(SCA) at para 10.
[46]
See
National
Union of Metalworkers of SA v Intervalve (Pty) Ltd and Others
(2015) 36 ILJ 363 (CC)
at para 68;
Knox
D'Arcy AG and Another v Land and Agricultural Development Bank of
South Africa
[2013]
3 ALL SA 404
(SCA) at para
35;
First
National Bank of Southern Africa Ltd v Barclays Bank PLC and Another
2003 (4) SA 337
(SCA) at
para 6;
Absa
Bank Limited v IW Blumberg and Wilkinson
[1997] ZASCA 15
;
1997
(3) SA 669
(SCA) at 681G-H
;
Roman Catholic Church (Klerksdorp Diocese) v Southern Life
Association Ltd
1992
(2) SA 807
(A) at 816D-F.
[47]
See
Transnet
Ltd v Rubenstein
2006
(1) SA 591
(SCA) at para 28;
Minister
of Land Affairs and Agriculture and Others v D & F Wevell Trust
and Others
2008
(2) SA 184
(SCA) at para 43;
Eskom
Holdings Ltd and Another v New Reclamation Group (Pty) Ltd
2009 (4) SA 628
(SCA) at
para 17;
De
Lange v Presiding Bishop, Methodist Church of Southern Africa and
Another
2015
(1) SA 106
(SCA) at paras 19 – 20.
[48]
2012 (1) SA 247
(SCA) at para 14.
[49]
Paragraphs
8 and 18 of the answering affidavit.
[50]
(2020) 41 ILJ 2051 (LAC) at para 16.
sino noindex
make_database footer start
Similar Cases
Eskom Holdings SOC Ltd v Silicon Smelters Proprietary Limited (34000/22; A169/24) [2025] ZAGPPHC 1084 (7 October 2025)
[2025] ZAGPPHC 1084High Court of South Africa (Gauteng Division, Pretoria)100% similar
Eskom Holdings Soc Ltd v Silicon Smelters (Pty) Ltd (34000/2022) [2023] ZAGPPHC 658; [2023] 4 All SA 661 (GP) (25 July 2023)
[2023] ZAGPPHC 658High Court of South Africa (Gauteng Division, Pretoria)100% similar
Eskom Holdings SOC Limited v Nqorile CC and Another [2023] ZAGPPHC 132; 47122/2021 (28 February 2023)
[2023] ZAGPPHC 132High Court of South Africa (Gauteng Division, Pretoria)100% similar
Eskom Holdings SOC Limited v Emfuleni Local Municipality and Others (94248/2019) [2023] ZAGPPHC 1107; [2023] 3 All SA 745 (GP) (5 July 2023)
[2023] ZAGPPHC 1107High Court of South Africa (Gauteng Division, Pretoria)100% similar
Eskom Holdings SOC Limited v Emfuleni Local Municipality and Others [2023] ZAGPPHC 497; 94248/2019 (5 July 2023)
[2023] ZAGPPHC 497High Court of South Africa (Gauteng Division, Pretoria)100% similar