Case Law[2024] ZAKZDHC 1South Africa
Tansnat Durban (Pty) Ltd v eThekwini Municipality and Another (D11215/2022) [2024] ZAKZDHC 1 (11 January 2024)
High Court of South Africa (KwaZulu-Natal Division, Durban)
11 January 2024
Headnotes
in the seminal decision of Britstown Municipality v Beunderman (Pty) Ltd[11] which dealt with the situation where an arbitrator had failed to decide all of the issues referred to him that there is "no room in law for a hybrid order...which is partially a finding made by an arbitrator and partially a finding made by a Court of law".[12] Also, see the decision in Reward Ventures 01 CC v Walker and Another[13] which confirms the application of the prohibition against hybrid
Judgment
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## Tansnat Durban (Pty) Ltd v eThekwini Municipality and Another (D11215/2022) [2024] ZAKZDHC 1 (11 January 2024)
Tansnat Durban (Pty) Ltd v eThekwini Municipality and Another (D11215/2022) [2024] ZAKZDHC 1 (11 January 2024)
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sino date 11 January 2024
IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL
LOCAL DIVISION, DURBAN
CASE
NO: D11215/2022
# In
the matter between:
In
the matter between:
TANSNAT
DURBAN (PTY) LTD
PLAINTIFF/RESPONDENT
# and
and
eTHEKWINI
MUNICIPALITY
F
I
RST
DEFENDANT/EXCIPIENT
KWAZULU-NATAL
DEPARTMENT OF TRANSPORT
SECOND DEFENDANT
ORDER
# The
following order is granted:
The
following order is granted:
The
exception is d
i
smissed
with costs
,
including the
costs of senior counsel.
JUDGMENT
## Z P
Nkosi ADJP
Z P
Nkosi ADJP
Introduction
[1]
The excipient
is the first defendant ("the Municipality
")
i
n
the action
i
nstituted
by the plaintiff
(
"
Tansnat
")
.
I
will
hereinafter
refe
r
to the parties
as the Municipality
and Tansnat
respectively.
[2]
The
Municipality
excepts
to
Tansnat's
particu
l
ars
of
claim
("
POC
")
i
n
terms
of Uniform
rule 23(1) on the grounds that the POC lack averments which are
necessary to sustain a cause of action
.
It contends so
on four grounds
,
namely:
(a)
on facts
pleaded by Tansnat, it cannot be said that the Arb
i
t
r
ation
Award a
m
o
u
nts
to a
"
hybrid
award" and is therefore a nullity
;
(b)
alternatively
,
on
the facts pleaded
,
the
Award did not amount to a nullity and at best might have amounted to
an Award which was reviewable in terms of s 33
(
1
)
of
the Arbitration Act
[1]
("
the
Arb
i
tration
Act"
);
(c)
further
alternatively
,
even if the
Award is a nullity
,
t
hen
this fact does not afford this court jurisdiction to determine the
claims which the parties have against one another
;
and
(d)
furthermore
,
Tansnat
'
s
pleaded contentions regard
i
ng
the PT
I
G
buses
,
do
not affect the entire Award. Therefore
,
no reason
e
x
ists
for sett
i
ng
aside the ent
i
re
Award.
[3]
The exception
is assailed by Tansnat on the basis that there is no mer
i
t
i
n
any of the afo
r
esaid
grounds of exception since the Arbitrator issued a
n
impermissible
"
hybrid
order
"
as
the PTIG
i
ssue
constituted one of the issues
f
alli
n
g
within his mandate to determine yet he did not decide
i
t
,
and instead
left it for the court to decide
.
## Pleadings
in the POC
Pleadings
in the POC
[4]
Tansnat
has pleaded the following:
[2]
(a)
the Arbitrator
was required by clause 6 of the settlement agreement to evaluate and
determine the validity and/or justification
of any claims between the
parties
;
(b)
the
Arbitrator
delivered an Arbitration Award on 30 September 2022
;
(c)
the
determination
made in the
Award included a
finding
that
the
Arbitrator did
not have jurisdiction
to
determine
the
parties
'
claims
relating to the so-called
"
PTIG
buses";
(d)
the finding by
the Arbitrator
that
he
did not have
jurisdiction
to
determine the
claims
relating to the PTIG buses resulted in his having made a
hybrid
Arbitration
Award;
(e)
the Award is
accordingly a nullity
;
(f)
the
jurisdiction
afforded
to the
Arbitrator
was
to finally
determine
all the
issues
between the
parties
;
(g)
the
arbitration is not yet complete
;
(h)
the Arbitrator
decided some issues as a matter of finality but did not decide
all
the issues
as
a matter of finality;
(i)
there is
no
room
in
law
for a hybrid Award such as
made
by the
Arbitrator
;
(j)
the
Arbitrator
had no
jurisdiction
to
make an
Award determining only some of the
issues
and leaving
some issues to be determined by the court
;
and
(k)
the
Arbitrator
'
s
finding
that
he
lacked
jurisdiction
to
determine
the
PTIG bus
issue
destroyed
the
entire basis
for his
jurisdiction
in
respect of
all his
findings.
## Issue
and onus
Issue
and onus
[5]
The
issue
that
requires
determination
is
whether
or
not
Transat
'
s
POC
are
excipiable.
Put
differently
,
does the
POC
allege facts
sufficient to support a
cause
of action?
[6]
For
purposes of an exception the court
must
"
assume
the
correctness
of
the
factua
l
averments
made
in
the
relevant
pleading
,
unless
they
are
palpab
l
y
untrue
or
so
improbable
that
they
cannot
be accepted
"
.
[3]
However
,
an
excipient should make out a
very
clear,
strong case
before
he
should be allowed to succeed.
[4]
[7]
The
court should not look at a pleading with a magnifying glass of too
high-power.
"
Unless
the excipient can satisfy
the
court
that
there is
a
point
of
law or
real
embarrassment
,
the
exception should be dismissed
.
"
[5]
[8]
Regarding
onus
,
as
stated
in
Amalgamated
Footwear
&
Leather
Industries
v
Jordan
&
Co
Ltd:
[6]
'
..
.in
so
far
as
there
can be
an
onus
on
either
party on
a
pure question
of
law
,
it rests not
upon the plaintiff
but
upon
the
excipient.
It
is
the
excipient
who
is
alleging
that
the
summons
does
not disclose
a
cause
of
action and he
must
estab
l
ish
that in all its possible meanings
no
cause of
action is
disclosed.
'
[9]
It
should
also be
noted
that
exception
proceedings
are
inappropriate
for
the
determination of
issues
involving
an interpretation
of
a
contract
.
[7]
An
excipient
is
restricted
to
the
grounds
of exception set
out
in the
notice
of exception.
[8]
Common
cause/accepted facts
[1
0]
All of the
facts in
the
POC are
,
for the
purposes
of
the exception
,
accepted as
true and correct. In this regard the following is accepted
:
(a)
that
the
PTIG
issue
was
one
of the
issues that
the Arbitrator
had
been
g
i
ven
a
mandate
by
the
parties to
determine arising from:
(i)
the term of
the
settlement
agreement
that
the
Arbitrator
would
attend
to
"
an
evaluation
and
determination of
the
validity
and/or justification
of
any claims between
the parties
";
(ii)
the fact that
the issue of the PTIG
claims
were
expressly
dealt
with in
pleadings
between the parties which further
defined
the issues;
and
(iii)
the
fact that the PTIG issue was argued before the Arbitrator
,
who
considered
it,
and
then
decided
that he did not have
jurisdiction
to
determine
it
by
virtue of
the
provisions
of
s
109(2) of
the
Local
Government:
Municipal
Systems
Act;
[9]
(b)
the
Arbitrator decided
some
aspects as a
matter
of
finality
but
left
other
aspects
over
for
subsequent
determination
dependent
upon
the finding
of
the
court
on the PTIG issue. The Arbitrator determined as a
matter
of finality that:
[10]
(i)
the
Municipality
is
entitled
to
its
claim
for
vehicle
lease charges
and the amounts paid on
behalf
of Tansnat
save
for
the
lease
charges
and
maintenance
charges
pertaining
to
the
PTIG
buses and
the
claim for
interest on
overdue
amounts
;
(ii)
the
Municipality's
claim
for
lease
charges
and
maintenance
charges
pertaining
to
the
PTIG buses as
well
as CIR 6 and
8.2 was
stayed
pending the
final
determination of the present
proceedings
before
the
court to
determine
the
validity
of
the
decision
of the
Municipal
i
ty
to
acquire
the PTIG buses
;
and
(iii)
Tansnat
was
entitled
to
its claim
for
damages for
loss of
passenger
revenue and
that
it was
entitled
to
an
account
for
all insurance
excesses
that
were
paid
by
Tansnat
which
the
Municipality
has
recovered
together with
reasons
for
non-recovery
thereof
;
(c)
the
arbitration
is
not
finalised
and
can
only
be
finalised
(
according
to
the
Arbitrator
'
s
findings)
once
the
court
has first
made
a
determ
i
nation
of the
PTIG
issue.
## Applicable
law (what constitutes a hybrid order?)
Applicable
law (what constitutes a hybrid order?)
[11]
The
law is clear that a
"
hybrid
order
"
is
impermissible and that its effect is to visit a nullity on the
arbitration proceedings
.
It
was held in the seminal decision of
Britstown
Municipality v Beunderman (Pty) Ltd
[11]
which
dealt with the situation where an arbitrator had failed to decide all
of the issues referred to
him
that
there
is
"
no
room
in
law
for
a
hybrid order
.
..which
i
s
partially a finding made by an arbitrator and partially a finding
made by a Court of law
".
[12]
Also
,
see
the decision in
Reward
Ventures 01
CC
v
Walker and Another
[13]
which
confirms
the
application
of
the
prohibit
i
on
against
hybrid
orders
.
# [12]Aligned
to the principle set out above,s
28 of the Arbitration Act requires finality
hence there is no appeal to thecourts.An
award is invalid
if the arbitrator"fails
to decide each and every one of several matters referred to him".[14]The
award must therefore
resolve all the issues submitted in a manner that achieves finality
and certainty unless the questions for determination are
themselves lacking in precision e.g. as to what steps are to be taken
to achieve a particular result.[15]The
principle of finality of awards is firmly established in our law.[16]
[12]
Aligned
to the principle set out above
,
s
28 of the Arbitration Act requires fina
li
ty
hence there is no appeal to the
c
ourts
.
An
award is inval
i
d
if the arbitrator
"
fai
l
s
to decide each and every one of several matters referred to h
i
m
".
[14]
The
award must the
r
efore
resolve all the issues submitted in a manner that achieves finality
and certainty unless the questions for determination a
r
e
themselves lacking in precision e.g. as to what steps are to be taken
to achieve a particular result.
[15]
The
principle of finality of awards is firmly established in our law.
[16]
[13]
The
question of what const
i
tutes
a hybrid order again recently came before the Supreme Court of Appeal
in
Termico
(Pty) Ltd v SPX Te
c
hn
o
logies
(
Pty
)
Ltd
and Others
.
[17]
The
court confirmed the proh
i
b
i
tion
aga
i
nst
hyb
ri
d
orde
r
s
but drew a distinction on the particular facts on the bas
i
s
tha
t
the
arbitration
was
complete
,
and
the
court
was
asked
to deal with issues that were not issues in the arbitrat
i
on
.
[14]
Insofar
as the effect of a hybrid order is concerned, the Supreme Court of
Appeal
in
Vidavsky
v
Body Corporate of Sunhill Villas
[18]
held
as
follows:
[19]
'
...
The
authorities
are
clear
that
want
of
jurisdiction
in
judicial
or
quasi-judicial
proceedings
has
the
effect of
nullity
without
the necessity
of
a
formal order setting the
proceedings
aside.
..
Lack
of
jurisdiction
in arbitration proceedings renders an award invalid
.
..
'
Grounds
of exception
[15]
What follows
is an evaluation of the Municipality's grounds of exception.
### (a)On thefacts
pleadedby
Tansnatitcannot be said
thattheAward
amountstoa
hybrid order
(a)
On the
facts
pleaded
by
Tansnat
it
cannot be said
that
the
Award
amounts
to
a
hybrid order
###
[16]
The
Municipality
contends
that
on
the
facts pleaded by Tansnat
,
the
finding by
the
Arbitrator
cannot be said
"
as
a matter of law
,
to
amount
to a hybrid order
"
.
Furthermore
,
that
the
approach adopted by the Arbitrator
,
namely
,
to
pend
the decision regarding
the
PTIG
claims while awaiting
the
outcome
of a decision
by
the
court
on
that
issue
"
was
perfectly
legal
"
.
[20]
[17]
The
Municipality
raises the
above argument
on
the basis
that:
(a)
Tansnat has
not
pleaded
that the
Arbitrator
should have
,
but
did
not
,
determine
the PTIG issue. Instead
,
it
has
pleaded the fact that the
Arbitrator
could not
determine
the
PTIG issue
which has the
consequence
that his
Award
must fail; and
(b)
put
differently
,
Tansnat
contends
that
because the
Arbitrator
,
recognising
that he could
not
determine
the
PTIG
issue
,
made
arrangements for the same
to
be
determined
by
the
court
,
he
thus
issued
an
impermissible
hybrid
award
(a
contention which
stems
from the judgment
in
Britstown).
[21]
[18]
The
Municipality
places
reliance
for
above
contention
on
the
more
recent
decisions
of
SA
Breweries
[22]
and
Termico
[23]
which
it seems to argue altered the status quo from
Britstown.
It
submits that the finding in the latter case was that the arbitrator
had
left
it
to
the court to determine an issue which he
,
the
arbitrator
,
was
supposed to determine. His Award was, therefore, not final.
[19]
The
Municipality submits that in
SA
Breweries
Scott
JA summarised the current law as follows:
[24]
'
...
In
summary,
what
is
required
is
that
all
issues
submitted
must be
resolved in a
manner
that
achieves finality and
certainty. The award or determination may therefore not reserve a
decision
on
an
issue
before
the arbitrator
or
expert for
another to
resolve.
It must
also
be capable of
implementation
.
On the other
hand
,
what
must
be
determined are the matters submitted and no more
.
Depending
on the
questions
,
therefore
,
the
determination
may not necessarily result in a final
resolution
of a dispute
between
the
parties
.
Generally
,
a court will
be slow to
find
non
compliance
with
the
substantive
requirements
and an award
or determination will
"
be
construed liberally and
in
accordance
with
the
dictates of common sense
"
(
Mustill
& Boyd
(supra)
at 570). This
,
I think
,
must be
particularly so
when
the questions
for determination are themselves lacking
in
precision. A
question as
to
what
steps are
to be taken to achieve a particular result is perhaps a good example.
A
court
will
,
therefore
,
as far as
possible construe an award or determination so
that
it
is
valid
rather
than invalid. It
will not be
astute to look for defects
..
.
'
[20]
The
Municipality also
referred
,
in
its
submission
,
to
Termico
in
which Ponnan JA stated as follows:
[25]
'
Neither
SPXT nor the court a quo
were
able to
i
dentify
an
issue
that had been
referred
to
the arbitrators but
not
finally
decided
by
them.
What was
still
to be decided, before SPXT could be ordered to pay Termico
,
was
the
value
of loan
B
,
which
fell
to be
deducted from
the
put price
,
but
it
is
common
cause that this
issue
fell outside
of
the
jurisdiction
of
the
arbitrators
.
The addit
i
onal
issues
that
the court a quo recognised as being necessary
to
grant a
monetary judgment
i
n
the
counter-application
,
namely the
application of the
put price to
loan Band the
meeting to
implement
the
sale, had not occurred at
the
time
of the
arbitration and
were
not
issues
before
the
arbitrators
.
..'
(Underlining
added by
excipient's
counsel for emphasis).
[21]
Arising from
the totality
of its
argument above
,
the
Municipality
submits
that
the
situation
in the instant case is analogous to
Termico
in that:
(a)
the
Arbitrator
did
not
determine an
issue which
it
was
common
cause he
had
no
power to
determine
;
(b)
this was not
a situation
where the
Arbitrator
directed Tansnat
to
approach the
court to
determine
something that
was
within
his
power
to
determine
;
and
(c)
he simply
directed
that
the court
should
determine
a
matter which
was
not
within his power. Thereafter
,
he
would
make a
final
award.
[22]
It is
submitted by the
Municipality
that as much
as arbitrators are required to finally determine
issues
placed before
them
,
obviously that
must
mean
matters
properly placed before them. It cannot be expected of an arbitrator
to
determine
something over
which
he has
no
jurisdiction.
The
PTIG
matter
was,
therefore
,
not
properly
before
him
.
All
the Arbitrator
did
,
it
is further argued
,
was
to
make an interim
award
or ruling
directing
how
a
final
award
was
to be arrived
at.
[23]
The arguments
raised
above
seems to be smoke and mirrors. Both
Termico
and
SA
Breweries
confirm
the
continued
existence of
the
prohibition
against a
hybrid order. The
law,
as
decided
in
Britstown
,
has
not
been
altered
at all as the
above cases
were
distinguished
on
facts
and law
which
applied.
[24]
I
do not agree
on
the
facts that
the
situation
in
the instant
case is
comparable to that
in
Termico.
What was
considered
in
Termico
was
a
situation
where an
issue
had not been
referred
to
the arbitrators as part
of
their
mandate
to determine
while
all
issues
referred to
the
arbitrators
had
been
decided by
them.
It
was
,
furthermore,
not an
issue(s) which
they
had
no power to
determine
,
like in the
present
case.
[25]
Termico
also does
not relate to a statutory deprivation of jurisdiction
,
as
is
the case here.
The jurisdiction
(referred
to, at
paragraph 20 of the judgment) relates to jurisdiction in the context
of what had been
included
in
the mandate
given to the arbit
r
ators
to decide.
[26]
To put this
differently
,
the fact that
in this case the Arbitrator concluded
that
he had no
jurisdiction to decide the PTIG issue does not mean that this
was
not an
issue
that was
placed before him
in
terms of his
mandate. Equally
,
it
does
not mean that this was not an issue he was asked to decide. The fact
that a statutory provision restricted
him
in
deciding
the PTIG
issue
does not mean
that
it
was
not properly placed before him
.
[27]
The rule
against hybrid orders encompasses determinations
,
made partly by
a
court
and
partly by an arbitrator
in
respect of a
matter
which
was still
the
subject of a
further arbitration that had not
finally
run its course
like is the situation here. The
court
is
asked to
decide a question of
law
which
remained
undecided by the Arbitrator due to lack of jurisdiction on his part
thus
leaving
the
whole
PTIG issue
alive and unresolved
.
[28]
No
irregularity
or
misconduct
against the Arbitrator
is
alleged
.
It
is,
in
my
view,
a typical case
of an
impermissible
hybrid order
which
has
the effect
of
nullity of
the
Arbitration
Award.
### (b)Was the Award
a nullity?
(b)
Was the Award
a nullity?
[29]
The Municipality
contends
that
the
order
did
not
automatically
amount to a
nullity
even
if it was
a
hybrid
award.
At
best,
it might have
amounted to a
decision
reviewable
,
at Tansnat
'
s
behest, in terms
of
s
33(1) of the
Arbitration
Act.
[30]
In
this regard
,
the
Municipality submitted
that
Tansnat
is
not
entitled
to
simply
ignore the award and institute proceedings in the High
Court.
And
until
such time
as
the
court
makes
an
order setting it aside
,
the
award stands
.
[26]
[31]
It
further
submitted that even if Tansnat's contention be held
to
be
correct
,
that does not
have the consequence that the arbitration provision
in
the settlement
agreement has been waived. The disputes should simply be referred to
a new arbitrator. Therefore, on the facts pleaded
,
the action is
premature.
[32]
The
submissions
are
a
misdirection
as
to
the
correct
legal
position.
They
go
directly
against the decision of the Supreme Court of Appeal in
Vidavsky
[27]
which
expressly dealt with the question of whether an arbitration has to be
set aside under s 33 of the Arbitration Act where there
is a lack of
jurisdiction.
[33]
A reference to
Rebah
Construction
as
a
case
in
support of a contention that an arbitration has to be set aside under
s 33 of the Arbitration Act first
,
is not on
point. That case dealt with the situation where an arbitrator had
exceeded h
i
s
powers
in
terms of s
33
(
1
)(
b)
of the
Arbitration
Act. Section
33 has to do with a situation where an arbitrator has jurisdiction to
deal with an issue and has powers to deal with
that issue but exceeds
those powers.
[34]
The
provision
has
no application in
the
present
circumstances
where
there
is
no
jurisdiction
existing and
no
powers
at all to make a hybrid order
.
A
nullity is
just
that
-
it
does
not exist and therefore
cannot
,
as
a matter of logic
,
be
required
to
be
set aside
.
[28]
[35]
There
is
accordingly
no
bar
to
the
institution
of
the
present
proceedings
in this
court
and
there
is no
merit
in
the
Municipality
'
s
contention to
the
contrary that
the disputes should simply be referred to a new arbitrator because
the
parties
have
agreed
that the claim shall be determined by arbitration.
[36]
If
the
Award
is
a nullity
(
as
I
have
found
)
because
the Arbitrator
did not and could
not
ever have
jurisdiction
(as
a
matter of law as distinct from having a mandate to decide
)
to
decide
the PTIG issue
,
such approach
as suggested by
the
Municipality would serve
no
purpose since the new arbitrator would be faced
with
the same
statutory restrict
ion.
What the
Municipality
proposes is not only illogical but a legal
impossibility
since another
arbitrator would merely perpetuate the problem and not
resolve
it.
[37]
It
is
in
any
event a fallacy to suppose that a reference
to
arbitration
deprives a
court
of
its
jurisdiction. It
was
held
in
Rhodesian
Railways Ltd
v
Mackintosh
[29]
that
the
effect
of
a submission to arbitration
is
not
to oust the jurisdiction
of
the court,
but
merely
to
delay
it
and
the
court
has a discretion to refuse a reference
to
arbitration.
[30]
[38]
In
this regard
,
s
165
of
the Constitution makes
it
quite
clear
that
"
the
judicial
authority
of the Republic is vested
in
the
courts".
Furthermore
"
no
person
or
organ
of state may interfere with
the
functioning
of
the courts
"
.
[31]
[39]
Section
34 of the Constitution also provides that
"
everyone
has
the
right
to
have
any
dispute that can be resolved by
the
application
of
law decided in
a
fair public hearing before a court
,
or
where
appropriate
,
another
independent
and impartial tribunal
or
forum
".
The
reference
to
another
independent
or
impartial tribunal or forum
does
not include
a
private arbitration.
[32]
### (c)Nocase
made out forthesetting aside
of the entire Award
(c)
No
case
made out for
the
setting aside
of the entire Award
[40]
The
Municipality
also
contends
that
even
if
all
the
facts p
l
eaded
by
Tansnat
are proved to be
true
(which
must
be accepted
in
an
exception
),
no
reason exists
why
the
entire
Award should be set aside.
[33]
Put
differently
,
the
Municipality
contends
that
the
facts
pleaded
by
Tansnat indicated
that
the
PTIG
claims
were
severable
from all other
claims
which
the parties had against one another and therefore there are no legal
grounds for setting aside the entire Award.
[41]
A
pertinent
reading
of the POC
does
not support
this
contention.
It
is to be
noted
,
in
this regard,
that there is no mention anywhere
in the POC
of
the
word
"
severable
"
and
equally
no allegation to the effect that any one of
the
claims were
severable from all other claims.
[42]
On the
contrary, there
is
an allegation
to the exact opposite effect in paragraphs 33(e) and
(f)
of the POC.
This allegation is that the PTIG
issue
is
inextricably
linked
with
the main issue
between the parties, namely, whether
it
is the
Municipality
who
is
indebted
to
Tansnat or
vice
versa
and
the quantum of any such
indebtedness
and
without
a
determination of the PTIG issue it is not possible to determine
the
main issue
between the parties. That
inextricability
is the very
antithesis of the severability.
[43]
In
addition, the
Palabora
Copper
[34]
decision
,
referred
to by the
Municipality,
refers
to
"
a
wholly
separate
issue". The PTIG issue is plainly
not
a
"wholly
separate
issue
"
and
the only
way
that
the
Municipality
can
contend otherwise
(which
it
cannot
do)
is
to
state
that
the
express
allegations in the POC
to
the
contrary are
not
to
be believed
,
which
goes
against the fundamental and
basic
test
for an exception
namely
that
all the allegations
in
the
POC
are accepted as being true and
correct.
[44]
There
is
accordingly no
merit
in
grounds (b)
and
(
c
)
of the
exception.
[45]
Any
new
ground
of
exception,
either not pleaded
or
impermissibly
raised
in
heads
of
argument
,
will
not
be
considered.
The
Municipality
has
not sought
an amendment of
its
grounds
of
exception and
is
thus
limited
to the
grounds of
objection
contained
i
n
its
notice
of exception
,
all of
which
have
been
considered.
[46]
With all said
,
the question
may well be asked as
to
what the
Arbitrator should
have
done in the
c
i
rcumstances.
The answer
is
that the
Arbitrator
,
once he
had
decided
that
he had no
jurisdiction to determine the merits of the PTIG issues, had
only
one
lawfully
correct course
of conduct; and
that
was
not to
decide any of the
issues
on the
merits
because
he
could
not
decide
all
of-them
in
accordance
with
his
mandate
.
Unfortunately
,
the Arbitrator
chose
the
wrong
alternative
,
namely a
hybrid order
,
which rendered
his
entire
Award a nullity.
## Order
Order
[47]
It is accordingly
ordered
that
the
exception
is
dismissed
with
costs
,
i
nclud
i
ng
the costs of senior counsel.
Z
P NKOSI ADJP
Case
Information
DATE
OF THE HEARING:
18
JULY
2023
DATE
JUDGMENT HANDED DOWN:
1
1
JANUARY 2024
ON
BEHALF OF THE PLAINTIFF:
DG
HARPUR SC
(
I
n
structed
by Norton Rose F
u
lb
r
ight
South Africa Inc
.
3
Pencarrow Crescent
,
Pe
n
ca
r
row
Park
La
Lucia Ridge
,
4051
Tel
:
031 582
5642
Fa
x
:
031 582 5742
Email
:
Sandile.khoza@nortonrosefulbright.com
Ref
:
TAN22/SSK
)
ON
BEHALF OF T
H
E
DEFENDANT:
CJ
PAMMENTER
SC
(I
nstructed
by Venns Attorneys
Su
it
e
12
,
Lakeside
B
u
i
l
d
i
ng
Derby
Downs Office Park
W
e
stville
,
Du
r
ba
n
KwaZulu-Nata
l
Tel
:
031 303
7577
Fax
:
031 303
7590
Ema
i
l
:
hiresen@venns
.
co
.
za
am
i
sha@.venns.
c
o.za
Ref
:
H
Govender/Am
i
sha/4322
)
[1]
A
r
b
it
rat
i
on
Act 42 of
1
965
.
[2]
See
th
e
M
u
ni
c
i
pa
li
t
y'
s
h
eads
o
f
arg
um
e
n
t
para 5
.
[3]
V
oge
t
and
Others v K
l
eyn
h
ans
2003
(
2
)
SA
148
(
C
)
para
9
.
[4]
C
o
lon
i
a
l
I
ndustries
Ltd v Prov
in
cia
l
In
sura
n
ce
Co Ltd
1920
CPD 627
at 630
;
South
Af
ri
can
Nat
i
ona
l
Parks
v
Ras
2002 (2
)
SA
537
(
C
)
at
54
1.
See
also
Van Loggerenberg
Erasmus
Super
i
or
Court Pract
ic
e
(
2023
)
Revision
Service
21 at 01-298
.
[5]
4
La
w
sa
3
ed
para
342
.
[6]
Ama
l
gama
t
ed
F
o
otwear
&
L
eather
Ind
u
str
i
es
v Jordan
&
Co
Ltd
1
948
(
2
)
SA
891
(
C
)
at
893.
[7]
Jowell
v
Bramwell-Jones
and Others
1998
(
1)
SA 836
(
W
)
at
866
;
Gardner
v R
i
chardt
1974
(
3
)
SA
768
(
C
)
at
773C-E.
[8]
Erasmus
Superior
Court Pract
i
ce
(
2022
)
Revis
i
on
Serv
i
ce
20
at
D1-310G.
[9]
Local
Government: Municipal Systems Act 32 of 2000
.
[10]
Index
to
pleadings
Volume 1 pages 16-17
.
[11]
Britstown
Municipality v Beunderman (Pty) Ltd
1967
(3) SA 154 (C).
[12]
Ibid
at 157
[13]
Reward
Ventures 01
CC
v
Walker and Another
[2013]
ZASCA 207.
[14]
Harlin
Properties (Pty) Ltd v Rush
&
Tomkins
SA (Pty) Ltd
1963
(1) SA 187
(D) at 196D.
[15]
See
SA
Breweries Ltd v Shoprite Holdings Ltd
2008
(1) SA 203
(SCA) para 22. Also see Peter Ramsden:
The
Law of Arbitration: South African and International Arbitration
(2011) at 163.
[16]
See
Dickenson
&
Brown
v Fisher's Executors
1915
AD 166
at 174;
Delport
v Kopjes Irrigation Settlement Management Board
1948
(1) SA 258
(O);
RPM
Konstruksie (Edms) Bpk v Robinson en 'n ander
1979
(3) SA 632
(C) at 636;
Blaas
v Athanassiou
1991
(1) SA 723
(W) at 724.
[17]
Termico
(Pty) Ltd v SPX Technologies (Pty) Ltd and Others
2020
(2) SA 295 (SCA).
[18]
Vidavsky
v Body Corporate of Sunhill Villas
2005
(5) SA 200 (SCA).
[19]
Ibid
para
14.
[20]
Notice
of exception paragraphs 7(a) and (b).
[21]
Britstown
Municipality v Beunderman (Ply)
Ltd
1967
(3) SA 154 (C).
[22]
Breweries
Ltd v Shoprite Holdings Ltd
2008
(1) SA 203 (SCA).
[23]
Termico
(Pty) Ltd v SPX Technologies (Pty) Ltd and Others
2020 (2) SA 295 (SCA).
[24]
SA
Breweries
para 22.
[25]
Termico
para
20.
[26]
Rebah
Construction
CC
v
Renkie Build
in
g
Construction
CC
2008
(3)
SA
475
(
T).
[27]
Vidavsky
v Body Corporate of Sunhill Villas
2005
(5) SA 200 (SCA).
[28]
See
Fassler,
Kamstra
&
Holmes
v Stallion Group of Companies (Pty) Ltd
1992
(3) SA 825(W)
;
VanZijl
v Von Haebler
1993
(3) SA 654
(SE) at 659;
Minister
of Rural Development and Land Reformv
Normandien
Farms (Pty) Ltd and Others, and Another Appeal
2019
(1) SA 154
(SCA) at171.
[29]
Rhodesian
Railways Ltd v Mackintosh
1932
AD 359.
[30]
Verh
agen
v
Abramowitz
1960
(4)
SA
947
(C)
at
950.
[31]
Section
165(3) of the Constitution.
[32]
Lufuno
Mphaphuli
&
Associates
(Pty)
Ltd
v
Andrews
and
Another
2009
(
4)
SA 529
(CC)
paras
214
,
217-218.
[33]
Palabora
Copper
(Pty)
Ltd
v
Motlokwa
Transport
&
Construction
(Pty)
Ltd
2018
(
5
)
SA
462
(
SCA
)
para
48.
[34]
Ibid
para 48
.
sino noindex
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