Case Law[2022] ZAGPPHC 762South Africa
Minister of International Relations and Co-Operation N.O and Another v Neo Thando/Elliot Mobility (Pty) Ltd and Another (2020/45210; 2020/39944) [2022] ZAGPPHC 762 (3 October 2022)
High Court of South Africa (Gauteng Division, Pretoria)
3 October 2022
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Minister of International Relations and Co-Operation N.O and Another v Neo Thando/Elliot Mobility (Pty) Ltd and Another (2020/45210; 2020/39944) [2022] ZAGPPHC 762 (3 October 2022)
Minister of International Relations and Co-Operation N.O and Another v Neo Thando/Elliot Mobility (Pty) Ltd and Another (2020/45210; 2020/39944) [2022] ZAGPPHC 762 (3 October 2022)
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sino date 3 October 2022
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION,
PRETORIA
CASE
NO: 2020/45210
2020/39944
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
In
the matter between:
THE
MINISTER OF INTERNATIONAL
RELATIONS
AND
CO-OPERATION
N.O.
1
st
Applicant
THE
DEPARTMENT OF
INTERNATIONAL
RELATIONS
AND
CO-OPERATION
2
nd
Applicant
and
NEO
THANDO /
ELLIOT
MOBILITY (PTY) LTD 1
st
Respondent
ADV
M C ERASMUS SC
N.O.
2
nd
Respondent
JUDGMENT
MOKOSE
J
Introduction
[1]
The applicants (being the first and
second applicants) were engaged in arbitration proceedings with the
first respondent. The second
respondent was appointed by the
Chairperson of the Pretoria Society of Advocates to act as arbitrator
in respect of arbitration
proceedings which were opposed by the
applicants on the basis that the arbitrator had no jurisdiction in
the matter.
He
ruled otherwise and found on the merits in favour of the first
respondent.
[2]
The applicants seek to
review and set aside the
awards of the
second respondent arising out of these
arbitration proceedings.
Conversely,
the first respondent seeks to
have
the award made an order of court under Case No. 39944/2020.
[3]
The relief sought in terms of the notice
of motion
is
as follows:
(i)
a declaration that the arbitrator had no
jurisdiction to determine the matter;
(ii)
Pursuant to that declaration,
(a)
an order that the first
respondent
pay all
amounts
paid by the
State
Attorney
to
the arbitrator in respect of his fees
for
acting
as such; and
(b)
all legal costs incurred by the
State Attorney on behalf of the
applicants in defending themselves against the claim by the first
respondent;
(c)
an order declaring that the
arbitrator's interim award is invalid
and
setting
it aside;
(d)
an order declaring the
arbitrator's award dated 28
July 2020 invalid and
setting
it
aside;
(iii)
Alternatively,
an
order
reviewing and setting
aside
the
award
of 28 July 2020;
(iv)
Condonation for the late filing
of the review application and
replying
affidavit.
## BackgroundperAgreedStatementofFacts
Background
per
Agreed
Statement
of
Facts
[4]
On 11 August 2015 the second applicant invited tenders
'Tor the
removal,
packaging, storage (in South Africa
only) and insurance of household
goods and vehicles of
transferred
officials, to and from missions abroad."
On 3 November 2015 the second applicant communicated to the first
respondent the award of the tender. Pursuant to the award and on
26
January 2016 a written Service Level Agreement ("SLA") was
concluded by the parties.
[5]
The predecessor to the first
respondent's appointment, AGS Fraser/Gin Holdings had concluded an
agreement with the second applicant
in respect of the period prior to
the first respondent's appointment.
On
21 January 2016 the second applicant addressed a letter to AGS Fraser
informing it that the first respondent would make contact
with it to
make transitional arrangements for the hand-over of the currently
stored goods. AGS Fraser refused to hand over the
stored goods as
demanded by
the
second applicant.
[6]
On 18 April 2016 the second applicant
represented by the State Attorney addressed a letter to AGS Fraser in
which it was recorded that the second
applicant had an obligation to make the goods available to the first
respondent and
that
the
first
respondent was suffering damages.
[7]
The first respondent
concluded a written lease agreement
with lmprovon Property Fund 2 (Pty)
Limited on 11 November 2015.
On
21 January 2016 the second applicant addressed a letter to AGS Fraser
advising of
the transitioning arrangements for
the
storage
of the
goods
in their possession.
AGS
Fraser refused to hand over the goods and vehicles as had been
requested.
On
18 April
2016
the
second
applicant
represented
by
the
State
Attorney
address another
letter
to
AGS Fraser informing it that its refusal
to
hand
over the goods to
the
first respondent had no substance in law
and demanded compliance therewith.
[8]
On 1 December 2016 the second applicant
contacted the first respondent urgently to compile a plan to expedite
the transfer of goods
from AGS Fraser to the
first respondent.
A letter was then addressed by the first
respondent on 29 March 2017 to the second applicant detailing the
losses it
was
suffering as a result of AGS Fraser's refusal to
hand over the stored goods.
No response was received.
[9]
On 12 September
2017
the
respondent's
attorneys
of
record
addressed
a
letter
to
the second applicant
which letter
purported to
be a notice in
terms of Section 3(1) of
the
Institution of Legal Proceedings Against
Certain Organs of State Act 40 of 2002 ("Legal Proceedings
Act").
The
letter stated,
inter alia,
the
following:
(i)
that it had concluded a lease with
another company, lmprovon Property
Fund
2 (Pty) Limited for
the
lease of
certain premises
from which it
could provide the
second
applicant with storage space as is
required in the
service
level agreement;
(ii)
in terms of the said lease agreement the
respondent would be liable for the rental of such premises;
(iii)
as a result of the second applicant's
failure to comply with the terms of the service level agreement it
had suffered damages and demanded the
total value of the rental it had paid or would have to pay to
lmprovon for the storage space
in the
sum of R53 258 416,90 plus interest and
costs;
(iv)
it
was
the intention of the respondent to sue for
damages for
such breach and accordingly gave notice
in terms of the said Act.
[10]
The letter also indicated that the respondent intended to refer the
matter to arbitration but
noted that in terms of the agreement, it
could only do so 'if the parties wish to arbitrate such difference or
dispute'. It then
enquired whether the second applicant was prepared
to submit the claim to arbitration in accordance with the service
level agreement.
If they were not prepared to do so, then they
suggested that the matter would proceed through the courts upon the
expiry of 30
days.
[11]
When the second applicant failed to
respond to the letter within 30 days, the
respondent referred 'a dispute' to the
Chairperson of the Pretoria Bar Council.
The State Attorney then wrote to the
first respondent on 9 November 2017 challenging the arbitrator's
jurisdiction in the matter.
The
second respondent was appointed as an arbitrator in the matter.
His ruling was contained in a document
styled
"Interim Award"
and
was dated 4 November 2019. The first respondent contends that
the
arbitrator's
jurisdictional
ruling
constitutes
an
interim
award
that
is
final
in
its
effect. Accordingly, the first applicant
had to apply to review and set aside the interim award within 6 weeks
from the date of
the award failing which it would be precluded from
seeking the
relief
sought, in the absence of a condonation application.
The first respondent disputes the
arbitrator's jurisdictional ruling constitutes an interim award much
less that it is final in
effect.
The
arbitrator decided that that he does have jurisdiction when
an
objection was raised by the second
applicant.
## Issues
Issues
[12]
There are several issues for
determination by this court.
The first being whether the arbitrator
had jurisdiction to determine the dispute.
The applicants are of the view that the
arbitrator had no power to do so as at
the time the matter was referred for
arbitration for the reason that there was no
"dispute"
as
contemplated in terms of the Arbitration
Act 42 of 1965 ("the
Arbitration Act"
;).
Furthermore, the applicants are of the
view that the arbitrator had no power to determine the dispute as the
terms and conditions of the agreement
determine the circumstances upon which a referral to arbitration
could be made and such circumstances
were not present.
The applicants
further
contend
that
the
"dispute"
that
was
referred
by
the
first
respondent
for arbitration was not the
"dispute"
that ultimately served under the
arbitrator.
[13]
The second issue to
be determined by this court is whether
the arbitrator committed a gross irregularity in the conduct of the
proceedings or whether
he may have exceeded his powers as
contemplated in
section 33(1)(b)
of the
Arbitration Act.
The applicants are of the view that he
failed to consider the most important aspects of its case.
[14]
Thirdly, the court is called upon to
determine two applications for condonation, one being in respect of
the late filing of the
review application, the other being in respect
of the later filing of the first respondent's replying affidavit.
Condonation
[15]
For the sake of convenience I shall deal
with the issue of condonation first.
It
is common cause that the award of the arbitrator was published on 28
July 2020.
Section
32(2)
of the
Arbitration Act provides
that an application to
set aside an arbitration award must be
brought within six weeks after publication of the award.
That would have been 8 September 2020.
An application was sought by the
applicant for an extension until 11 September 2020 to deliver the
application, which extension
was granted.
The application was eventually brought
on 9 September 2020, one day after the original due date.
However, the granting of an extension
must nevertheless be made by the Court.
[16]
The Court may grant such extension on
good cause.
The
period of delay must also be taken into account
in
determining whether
there
was
good cause
and
as such, the
extension
should be granted.
The court is informed that the full
impact of the
award
had to
be
considered by several people within the department including the
State Law Advisor.
Counsel
for the applicants were Evidence Leaders in the
State Capture Commission and as such,
were unable to give the application immediate attention.
The papers were finalized and the
application brought on 9 September.
There appears to
be no
prejudice occasioned
by the
respondents.
Accordingly, the
delay by the
applicant to launch the application is
condoned.
[17]
The second condonation application is
for the
late
filing of the replying affidavit which should have been delivered on
19 April 2021. It was delivered on 30 April 2021.
This application for condonation is not
opposed by the respondents.
We
are informed that the reason for the delay was circumstances beyond
the applicants' control when the junior counsel temporarily
lost her
vision due to
an
infection.
This
delayed the
preparation
of the replying affidavit.
[18]
The replying affidavit was filed 11 days
late.
This
is not an excessive time period. Moreover, there is good cause which
has been shown by the applicants.
There
is also no evidence of prejudice to the respondents which has been
occasioned by the delay.
Accordingly,
the condonation is
granted
for the delay in filing the replying affidavit.
Jurisdiction
of arbitrator to determine dispute
[19]
The applicants seek,
inter
alia,
a declarator that the
arbitrator did not have the
required
jurisdiction in the matter.
[20]
The applicants are of the view that the
arbitrator was never given the power to determine his own
jurisdiction.
The
reason being that there was no dispute as contemplated by the
Arbitration Act, there
was no proper referral under clause 13 of the
SLA and that the dispute referred to arbitration was not the dispute
before the arbitrator.
The
applicants are further of the view that the arbitrator's ruling
pertaining to jurisdiction is there not an interim award as
contemplated in the
Arbitration Act and
accordingly, there can be no
review against such a ruling.
It
is for this reason that the order sought, being prayer 2 of the
notice of motion, is an order to declare that the arbitrator
lacked
jurisdiction.
[21]
The first respondent's case was based on
the letter of 12 September 2017 and the failure of the applicants to
respond thereto within
the time stipulated therein.
The letter sets out the breaches and
demanded that the applicants pay it the sum of R53 258 416,90 plus
interest thereon at the
rate of 10.25% per annum calculated from 12
September 2017 in respect of damages sustained as a result of such
breach within 30
days of 12 September 2017.
The letter further recorded that in the
event of the second applicant not
paying
the said amount within the aforesaid period, the first respondent
would submit the matter to arbitration and requested the
second
applicant's response thereto.
[22]
The State Attorney was copied into the
letter but there is no evidence that it was received in time, the
first response having been
sent on 8 November 2017.
The State Attorney wrote a letter to the
first respondent's attorneys on 9 November 2017 in which it
stated that it was
"unclear
what the alleged dispute is which is to be referred to arbitration
for determination".
At this
time, the letter to the Bar Council had already been sent requesting
the appointment of an arbitrator.
[23]
Counsel for
the
applicants, in his heads of argument,
suggests that the applicants were in agreement
with the first respondent
pertaining to
the
facts
of
the
matter
and
its obligations
in
terms of
the SLA.
He
bases this on the correspondence sent by the
State Attorney to
AGS Fraser. However,
on
9
November
2017
the
State
Attorney
wrote
to
the
first
respondent's
attorneys
of record a letter in which it
was stated that it was
"unclear
what the alleged dispute is which is to be referred to arbitration".
[24]
In general, an arbitrator should rule on a plea concerning his
jurisdiction as a preliminary
issue. The second respondent held, in
line with reference to the matter of
Radon
Projects (Pty) Ltd v NV Properties (Pty) Ltd and Another
[1]
,
that
an arbitrator when confronted with a jurisdictional objection is not
obliged forthwith to throw up his hands and withdraw from
the matter
until a court has clarified his jurisdiction.
It
was held further that while the arbitrator is not competent to
determine his own jurisdiction that means only that he has no
power
to fix the scope of his jurisdiction.
[25]
An arbitrator is entitled to enquire into the merits of the issue
whether he has jurisdiction
or not but not for the purpose of
reaching any conclusion which will be binding on the parties but for
the purpose of satisfying
himself whether the parties ought to
proceed with the arbitration or not.
[2]
The
arbitrator considered the
papers
and ultimately ruled that he had the necessary jurisdiction. This was
contained in a document styled
"Interim
Award"
dated
4 November 2019.
[26]
In response to the first argument under
the issue of jurisdiction the first respondent avers that
there
are
three
requirements
to
ascertain
the
issue
of
jurisdiction.
They
are
a
proper
appointment, a valid arbitration process and whether the arbitrator
was empowered to determine the dispute.
[27]
As stated above, an arbitrator is not
precluded from enquiring into the scope of his jurisdiction and
ruling upon it.
This
was done and the second respondent decided that he had the necessary
jurisdiction.
This
jurisdictional ruling is decided as a preliminary issue and not an
award whether interim or final.
No
"Dispute"
as
contemplated
by
the
Arbitration
Act
[28
]
Before
a matter is referred to arbitration a dispute must exist and the
parties to the matter must agree to go to arbitration.
It
may be stipulated in an agreement between the parties that an
existing dispute should be resolved by arbitration.
The
agreement may also have been drawn in such a way that it anticipates
the possibility of disputes arising and thus stipulate
that they be
resolved by arbitration.
Such
agreement between the parties must be in writing.
An
arbitration agreement
is
defined in
the
Arbitration
Act
as
"a
written
agreement
providing
for
the referral
to
arbitration
of
any
existing
dispute
or
any
future
dispute
relating
to
a
matter
specified
in
the
agreement, whether an arbitrator is named or
designated
therein or not".
A
dispute is not defined in the Act.
However,
it is more than a mere disagreement; it is one in relation to which
opposing contentions are or can be advanced.
[3]
A
failure to pay does not
imply
that there is a dispute as to liability.
[4]
Nor
does a failure to
pay
where payment is due or even where there is a demand for payment.
[5]
[29]
A
dispute
is
not
defined
in
the
Arbitration
Act
but
there
is
ample
authority
for
the
proposition that it is more than a mere disagreement: it is
'one
in relation to which opposing contentions are or can be advanced.
[6]
In
determining whether a dispute exits one must have regard to the
conduct of the other party to the alleged dispute.
To
draw such inference, one must be satisfied on a balance of
probabilities, that the conduct is clear and unequivocal and capable
of no other reasonable interpretation.
[7]
Where
a demand has been made by one party, there must be a clear rejection
by the other party having received the
notification
or there must be clear evidence that the other party having received
the demand and having allowed a reasonable period
of time to lapse
without dealing with the demand, it
can
be inferred on a balance of
probabilities
that the other party has indeed rejected the demand.
A
reasonable period of time would be determined by the circumstances of
each case.
[30]
The applicants and the first respondent
concluded a Service Level Agreement ("SLA") which contained
an arbitration clause.
This
clause stipulates that where a party
"requires"
a difference or dispute to be
submitted to arbitration, it shall give written notice to the other
party. Such written notice shall
identify the difference or dispute
to
be
arbitrated upon.
[31]
The
second respondent pointed out that in determining the issue of
whether a dispute exists and a subsequent referral to arbitration,
one is entitled to have regard to the conduct of the other party to
the alleged dispute.
However,
one must be satisfied on a balance of probabilities that the
conduct
is
clear
and
unequivocal
and
capable
of no other reasonable interpretation.
[8]
[32]
The question to be determined is whether
in the circumstances, the applicant's failure to respond in
unequivocal
terms to
the first respondent's
demand demonstrated
its
intention to
reject the demand made.
[33]
As stated above, where there has been
demand by one party, it must have been rejected or there must be
clear evidence that the other
party having received the
demand has allowed an 'unreasonable
period of time to elapse without dealing with it properly', such that
it can be inferred on
a balance of probabilities that the other party
intended to reject the said demand.
An
'unreasonable period of time' is a question of fact to be decided
upon the circumstances of each matter.
[34]
The court's attention is brought to the
letter of the 12 September 2017 from the first respondent's attorneys
to the applicants.
In
particular, the first respondent avers that the said letter of demand
sets out
a
dispute which was
amplified
in the
Statement
of Claim as
follows:
# "5.5the defendantwas requiredtoprocure
thatHouseholdGoods and Vehicles storedwith 'the existing serviceprovider'referredtoin clause 8.8 ofannexure "SC2"were transferredby suchservice
provider to the claimant upon the conclusion of the SLA or within a
reasonable time thereafter.,,
"5.5
the defendant
was required
to
procure
that
Household
Goods and Vehicles stored
with 'the existing service
provider'
referred
to
in clause 8.8 of
annexure "SC2"
were transferred
by such
service
provider to the claimant upon the conclusion of the SLA or within a
reasonable time thereafter.,,
[35]
The first respondent's
view
is that there appeared to
be agreement between the parties as to
the applicant's obligations under the agreement.
The dispute had also been identified
from the outset and was contained in the letter of 12 September being
whether the applicants
were in breach of the agreement by not
procuring transfer of the assets in the possession of AGS Fraser and
also not providing
the information required.
The expectation on the part of the
applicants that the first respondent follows up with AGS Fraser was
absurd as there was no contractual
nexus between it and AGS Fraser.
The damages on the
part of the first respondent was ever
increasing with the progression of time and as a result the relief
sought evolved.
[36]
I agree with the contentions of the
first respondent that there was a dispute when the matter was
referred to arbitration and the
arbitrator was appointed.
No response had been received from the
second applicant within a reasonable period of time.
I am of the view that the period granted
to the second applicant to revert to the
first
respondent's
attorneys
of
record
in respect of the letter of 12 September
was reasonable in the circumstances.
Accordingly, it can be inferred on a
balance of probabilities that the other party intended to reject the
said demand.
Proper
referral to arbitration under the SLA
(37)
The
first
respondent
contends
that its referral
to
arbitration
was based on
Section 13
of the SLA which reads as follows:
"If
the parties wish to arbitrate such difference or dispute, [then] such
difference or dispute shall be submitted to arbitration.,,
(38)
The
general principles for
interpretation
have been espoused in the
matter
of
Natal
Joint Municipal
Pension
Fund
v
Endumeni
Municipality
[9]
.
The
Judge of
Appeal
in
that
matter
expressed
that words must be read in context, in a businesslike manner and so
as to
promote
the apparent purpose
of
the
document.
Furthermore,
the
court
needs
to
consider
the
words
in
the
contract
which
are
the
only
relevant
medium
through
which
the
parties
have
expressed
their
contractual
intentions.
[10]
Where
documents make up an agreement, the documents must be read together
as one agreement and the interpretation thereof entails
a reading of
all these documents which provide an important context.11
(39)
Counsel for
the
applicants contends that on the face of
the agreement Clause 13 requires that there be a
"difference
or dispute".
In addition, the
clause requires that there should be a mutual desire or wish to refer
the matter to arbitration.
There
is no evidence that there was such mutual wish to arbitrate.
Absent the parties' wish to arbitrate,
the difference or dispute cannot be referred to arbitration.
(40)
I have dealt with the first contention
and will deal with that of the mutual wish to arbitrate.
It is evident from the letter sent by
the first respondent's attorneys that they understood the procedure
by making reference to
it.
No
timeous response to the letter to the second applicant was received
resulting in the first respondent referring the matter to
the
Chairperson of the Pretoria Bar Council requesting the appointment of
an arbitrator in terms of Clause 13 of the SLA.
The applicants contend that its
consent to the arbitration was required.
(41)
The first respondent brought the
contents to paragraph 13.3 of the SLA to
the
court's
attention.
It
reads as follows:
"13.3
Either
party is entitled but not obliged,
by
giving written notice to the other,
to
require that a difference ordispute be submitted to arbitration
in
terms of this Clause.
[11]
(My
emphasis)
[42]
This is inconsistent with the view of
the applicants that the referral could only be by mutual agreement of
the parties.
I
am satisfied that the referral to arbitration by the first respondent
was proper in the circumstances and in accordance with
the
SLA.
Dispute
referred
to
arbitration
not
dispute
before
arbitrator
[43]
The applicants contend that the dispute
referred to arbitration was not the same dispute as ultimately served
before the arbitrator
and that the dispute must be identified in the
referral itself.
I
have dealt with the latter and will deal with the former issue.
The applicant contends that the written
notice serves not
only
to
identify
the area of expertise of the
arbitrator
but also to inform the other party to enable it to make a decision on
whether to agree with the difference or dispute
being referred to
arbitration.
[44]
The
first
respondent
contends
that
the
applicants'
objections
are
without
merit
and
denies
that
the dispute
referred
to
arbitration
differs
from that
which ultimately
served
on
the arbitrator.
The
first respondent further contends that the underlying causa in
the
letter
of 12 September
and
its
Statement
of
Claim
remain the
same
albeit, the
relief
claimed is couched in different
but
permissible
terms
which
still accords
with
the underlying causa.
The
first respondent
in
its submissions also reminds that the court that although it
was not dealing with an amendment of
a prayer, a court will allow such
amendment if
the
main issue remains the same.
In
these circumstances, the
breach
of the SLA remains the issue.
[45)
It is correct that the claim for damages
was not the dispute that was referred to arbitration. What was
referred to arbitration
was a claim for specific performance.
But the issue the court must determine
is whether the causa differs.
I
think not.
I
agree with
the
first respondent that the underlying
causa has remained the
same.
Accordingly, I am of the
view that the applicants' objection is
without merit.
## TheReviewApplication
The
Review
Application
[46]
The application before this court has
been brought in terms of
Section 33
read with Rule 53
of the Uniform Rules of Court.
In order to succeed the
applicants must satisfy the court
that:
(i)
the second respondent deviated in
relation to his duties as an arbitrator as contemplated in Section
33(1)(a) of the
Act;
or
(ii)
the
second
respondent
committed
a
gross
irregularity
in
the
conduct
of
the
arbitration proceedings or exceeded his
powers as contemplated in Section 33(1)(b) od the Act;
or
(iii)
the awards were improperly obtained as
contemplated in Section 33(1)(c) of the
Act.
Principles
relating to the jurisdiction of arbitrators
[47]
The applicants seek to review and set
aside the awards of the second respondent arising out of the
arbitration proceedings.
Conversely,
the first respondent, the applicant in Case No. 39944/2020, seeks an
order to have such awards made an order of court.
Ordinarily, parties who refer a matter
to arbitration accept that they will be bound by the award of the
Arbitration Tribunal. Such
award is enforceable until
it is set aside or remitted by the
Court.
[48]
A Court will always be reluctant to interfere with an arbitration
award.
A
party that requires an award to
be
interfered with must satisfy the
court
that the arbitrator committed a gross irregularity in the conduct of
the proceedings or that he exceeded his powers.
A
bona
fide
mistake
of law or fact cannot be construed as misconduct unless it
is
so gross or obvious that it could not have amounted to anything else.
Gross
irregularity relates to the conduct of the proceedings and not to the
result.
Such
irregularity must be of such a serious nature that it resulted in the
aggrieved party not having its case fully and fairly
determined.
[12]
[49]
An award may also be set aside where the arbitrator has exceeded his
powers.
This
would include exceeding his substantive jurisdiction.
But
it must be noted that an error of law on the part of the arbitrator
on the merits cannot be successfully attacked on the basis
that the
arbitrator has exceeded his powers.
[13]
It
must also be noted that it is not the function of a court in review
proceedings to
consider
whether an
arbitrator
is correct or not.
[50]
The second respondent issued a second
arbitration award on 28 July 2020 in which he found that the first
respondent (claimant) had
succeeded in discharging the onus that it
was and is entitled to be placed in possession of the household gods
and vehicles and
the information to be furnished by the applicants as
prayed for in the Statement of Claim.
The draft award declared,
inter
alia,
that the applicants were
contractually obliged to procure that all household and vehicles
stored with AGS Fraser be transferred
to the first respondent and to
provide the first respondent with full details pertaining
to all household good
and
vehicles stored with AGS
Fraser.
[51]
The applicants challenged not only the
jurisdiction of the arbitrator but also the merits. The applicants
contend that the arbitrator
exceeded his powers by making reference
to English Law instead of referring only to South African case law
which was in conflict
with the South African authorities.
The applicants further aver that the
arbitrator exceeded his powers by making reference the parties'
subsequent conduct which was
allegedly impermissible.
[52]
The applicants also contend that the
arbitrator committed a gross irregularity in dismissing he
applicants' special plea by finding
that it was impossible on the
pleadings to formulate when the first respondent's claim arose as
this required evidence.
Furthermore,
the arbitrator committed a gross irregularity by denying
the applicants a full and fair hearing.
[53]
In response to these allegations, the
first respondent avers that there is no merit in the allegations that
the arbitrator exceeded
his powers.
[54]
The arbitrator granted an order
declaring that the applicants were contractually obliged to procure
that all household goods and
vehicles stored with the former service
provider AGS Frasers be transferred to the first respondent and to
provide the first respondent
with full details of all household goods
and vehicles stored with AGS Frasers. The order was based on an
amendment that was sought
and granted in favour of the first
respondent.
This
amendment was not opposed by the applicants which we
are told was
not intended to alter the substance of
the relief initially sought.
[55]
The
applicants
challenged
the
award
on
the
merits.
They
contended
that
the
hearing could in
principle not
be fair especially
where the
arbitrator
misconceived his mandate.
[56]
Having had regard to the papers and
having heard submissions by both counsel for the applicants and
counsel for the first respondent,
I am of the view that the second
respondent was correct in rejecting the applicants' arguments that
the SLA was vague.
As
previously stated, a court may only interfere with an award where it
has been satisfied that the arbitrator
committed a gross irregularity in the conduct of the proceedings or
that he exceeded his
powers.
A
bona fide
mistake
of law or fact cannot be construed as misconduct unless it
is so gross or
obvious that it could not have amounted
to anything else.
The
fact that the arbitrator rejected the applicants' arguments does not
give rise to a gross irregularity having
been committed by him.
Furthermore,
I am of the view that the allegation that the second respondent
denied the
applicants
a full and fair hearing is without merit.
I also find that the award of the second
respondent had been carefully reasoned, having considered the
pleadings, the Statement
of Agreed Facts, annexures and the
submissions made on behalf of the parties.
The fact that he did not agree with the
applicants' arguments and submissions does not
mean that he committed an irregularity
and that he failed to apply his mind to the issues on hand.
[57]
For the
reasons
as
stated above, the
following
order
is
granted:
(i)
the review application falls
to be dismissed;
(ii)
the applicants are ordered to
pay the
costs including the costs of two
counsel.
[58]
Concomitantly and in respect of Case
Number 39944/2020, in which the first respondent applied for an order
that the awards of the
arbitrator
be made orders of court, the following order is granted:
(i)
the award
of the second respondent dated 23
October 2019
is made
an
order
of
Court;
(ii)
the award of the second respondent dated
28
July
2020 is made an order of Court;
(iii)
the applicants are ordered to
pay the costs including the
costs of
two
counsel.
MOKOSE
J
Judge
of the High Court of South Africa
Gauteng
Division, Pretoria
For
the First and Second Applicants: Adv
G Hulley SC
Adv
L Seegels-Ncube
On
instructions of Office
of the State Attorney,
Pretoria
For
the
First
Respondent: Adv
A Subel SC
Adv
M Nowitz
On
instructions of
Nochumson & Teper
Attorneys
Date
of Judgement:
3
October 2022
[1]
2013 (6) SA 345
(SCA) at paragraph 28
[2]
Christopher Brown Ltd v Genossenschaft Oesterreichischer (1953] 2
All ER 1039 (QB)
[3]
Parekh v Shah Jehan Cinemas (Pty) Limited and Others
1980 (1) SA
301(d)
at 304E - G
[4]
PCL Consulting (Pty) Ltd t/a Phillips Consulting SA v Tresso Trading
119 (Pty) Ltd
2009 (4) SA 68
(SCA) at 73A
[5]
Body Corporate of Greenacres v Greenacres Unit 17 CC and Another
2008 (3) SA 167
(SCA) at 172F -173A
[6]
Telecall (Pty) Ltd v Logan
[2000] ZASCA 97
;
2000 (2) SA 782
(SCA) at 786B - 787A
[7]
Buffalo City Metropolitan Municipality v Nurcha Development Finance
(Pty) Ltd and Others 2019 (3) SA 379 (SCA)
[8]
Buffalo City Metropolitan Municipality v Nurcha Development Finance
(Pty) Ltd and Others
2019 (3) SA 379
(SCA)
[9]
2012 (4) SA 593
SA (SCA} at para [18)
[10]
Bothma-Batho (Edms) Bpk v S.Bothma & Seun Transport (Edms) Bpk
2014 (2) SA 494
(SCA) at par [12]
[11]
Rustenburg Platinum Mines Ltd v Jensen
[12]
Telcordia Technologies Inc v Telkom SA Ltd
[2006] ZASCA 112
;
2007 (3) SA 266
(SCA) at
paras 53 to 76
[13]
Dickenson & Brown v Fishers Executors
1915 AD 166
at 175 and
180-181
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