Case Law[2025] ZAGPJHC 165South Africa
Manyeleti Consulting SA (Pty) Ltd v Eskom Holdings SOC Limited (50885/2021) [2025] ZAGPJHC 165 (20 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
20 February 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## Manyeleti Consulting SA (Pty) Ltd v Eskom Holdings SOC Limited (50885/2021) [2025] ZAGPJHC 165 (20 February 2025)
Manyeleti Consulting SA (Pty) Ltd v Eskom Holdings SOC Limited (50885/2021) [2025] ZAGPJHC 165 (20 February 2025)
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###### IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE
NO: 50885/2021
1.
Reportable: No
2.
Of intrest to other judges: No
3.
Revised
20
February 2025
Wright
J
MANYELETI
CONSULTING SA (PTY) LTD
Applicant
and
ESKOM
HOLDINGS SOC LIMITED
Respondent
JUDGMENT
WRIGHT J
1.
On 30 June 2014, Eskom appointed Manyeleti
to provide cleaning services at Eskom’s Matla power station.
The NEC3 Term Service
Contract governed the parties’ rights and
obligations.
2.
Under option W1.1 of the contract, “
Any
dispute arising under or in connection with this contract is referred
to and decided by the Adjudicator.”
Under
W1.3(1) “
Disputes are notified
and referred to the Adjudicator in accordance with the Adjudication
Table. “
3.
Under W1.3, an adjudication table sets out
when and to whom disputes are to be referred. It is common cause that
the present case
falls under “
Any
other matter
“ as tabled. Either
party may refer such matter to the adjudicator “
Between
two and four weeks after notification of the dispute to the other
Party and the Service Manager
. “
4.
Clause W1.3(2), provides for the times for
referring of disputes to be extended by the Service Manager in
certain circumstances.
The clause continues “
If
a disputed matter is not notified and referred within the times set
out in this contract, neither Party may subsequently refer
it to the
Adjudicator or the tribunal.
“
5.
In due course, Manyeleti demanded money of
Eskom. Eskom did not pay.
6.
In October 2021, Manyeleti launched
provisional sentence proceedings against Eskom. Manyeleti relied on
written certifications of
assessment by the Service Manager read with
tax invoices sent by Manyeleti to Eskom. Numerous claims total over
R2 million in capital.
Interest and costs are sought.
7.
Eskom filed an affidavit, dated 24 January 2022
opposing provisional sentence.
Ms P Dlamini, a Senior
Legal Advisor raises the point that Manyeleti never referred a
dispute for adjudication. She says that Manyeleti
is time barred. She
says that ManyeletI, aware that it is time barred, simply launched
the provisional sentence proceedings in
an attempt to bypass clause
W1.
8.
Ms Dlamini also raises the defence that the documents supporting the
provisional sentence claims do not accord with contractual
requirements. Ms Dlamini also points to what she says are incorrect
claims for interest.
9.
In reply, Mr Lomola for Manyeleti says that there was never any
dispute. He says the a mere failure to pay by Eskom does
not amount
to a dispute which could be referred to an adjudicator. He says that,
at the latest, Eskom raised a dispute, if dispute
it is, in the
answering affidavit.
10.
Mr Lomola effectively admits the non-alignment of documents annexed
to the provisional sentence summons with contractual
requirements. He
refers to contract price adjustment documents, attached to the
replying affidavit. Mr Lomola concedes that the
claims for
provisional sentence should exclude contract price adjustments and
that “
The remainder of the dispute could then be ventilated
at the trial of the matter
. “
11.
On 18 February 2022, Manyeleti’s attorney wrote to Adv B Leech
SC, a person listed in the contract as a possible
adjudicator, asking
him if he would adjudicate. A statement of claim was attached. In
effect, the provisional sentence claim was
sent to Mr Leech. Mr Leech
accepted on 22 February 2022.
12.
On 30 June 2022, Eskom’s attorneys wrote to Manyeleti’s
attorneys saying that Eskom was not indebted to Manyeleti
and that
“
our client is happy with Adv Leech as the adjudicator and
therefore suggest that both parties finalise the necessary contract
with
the adjudicator and commence with the arbitration
.”
13.
On 31 March 2023, Manyeleti launched an application to compel Eskom
to file its heads of argument, practice note, chronology
and list of
authorities. This application was set down for 29 May 2023, seemingly
on the unopposed motion roll. Apparently, this
was the provisional
sentence case. On that day, the matter was removed from the roll as
it had become opposed by Eskom.
14.
On 25 May 2023, Eskom launched an application. It seeks that
Manyeleti’s provisional sentence summons be dismissed,
alternatively that the provisional sentence proceedings be stayed
pending the outcome of the adjudication proceedings before Mr
Leech.
15.
On 30 June 2023, Manyeleti launched an application. The precise
wording in the notice of motion was clarified in argument
by Mr D
Hodge for Manyeleti. What Manyeleti seeks are orders, if the
court is inclined to stay the provisional sentence proceedings
pending adjudication, that the disputes raised by Eskom in the
affidavit opposing provisional sentence be referred to adjudication
by Mr Leech. Mr Hodge made it clear that if I was inclined to stay
the entire claim, that the entire claim be sent to adjudication.
Manyeleti seeks too, an order that Eskom do timeously all things
necessary to have the adjudication, and any possible appeal by
way of
a tribunal hearing, disposed of timeously. Manyeleti seeks also an
order that the referral of the dispute by Manyeleti’s
attorneys
to Mr Leech on 18 February 2022 stands as a valid contractual
referral under clause W1. Also sought are extensions of
time periods
relating to the adjudication and to a possible subsequent appeal by
way of a tribunal hearing. It is also sought that
in the event of
Eskom defaulting on its obligations relating to the adjudication or
appeal tribunal, Manyeleti would be entitled
to enrol the provisional
sentence proceedings on five days’ notice. Manyeleti seeks also
the costs of the application to
compel heads of argument and related
documents.
16.
In my view, there was no dispute prior to the launching of the
provisional sentence summons. Ms Dlamini, in her opposing
affidavit
raises, for the first time, defences to the provisional sentence
summons. She does not suggest that any dispute had been
articulated
by Eskom prior to her affidavit.
17.
There are in essence three main things before me now. Manyeleti’s
claims for provisional sentence, Eskom’s
request for a stay of
the provisional sentence proceedings and Manyeleti’s request
that if there is to be a stay, Eskom gets
on with the adjudication.
Manyeleti also seeks the costs of the application to compel.
18.
Manyeleti sent its claim to Mr Leech. Eskom has not yet filed its
statement of defence in the adjudication. Manyeleti
accuses Eskom of
delaying the matter.
19.
Both sides, in the correspondence referred to above, expressly agreed
to Mr Leech’s appointment. In so doing, they
elected to go the
adjudication route.
20.
During argument before me, Mr N Mahlangu for Eskom said that the
matter is properly before Mr Leech. Mr Mahlangu argued
that what I
should not hear are the main claims and those for interest.
21.
Regarding costs, the question should be reserved in the three main
applications and in the application to compel. After
Mr Leech has
adjudicated, either side may apply for such costs as they seek in the
present High Court litigation.
22.
My order below deals in composite manner with the disputes before me.
ORDER
1.
The provisional sentence proceedings are stayed pending adjudication
and any consequent tribunal hearing.
2.
The adjudication referral by Manyeleti dated 18 February 2022 to Adv
Leech SC stands as a referral to adjudication before
Adv Leech SC.
3.
Prayers 2 to 5 of Manyeleti’s counter-application dated 30 June
2023 are granted.
4.
Costs reserved, in all three main matters and in the application to
compel heads of argument and related documents.
GC
Wright
Judge
of the High Court
Gauteng
Division, Johannesburg
HEARD:
20 February 2025
DELIVERED:
20 February 2025
APPEARANCES:
Applicants
Adv DS Hodge
071 940 5512
dsh@law.co.za
Instructed
by Tracy Sischy Attorneys
011 886 0242
marc@tsattorneys.net
Respondent
Adv
Ndumiso Mahlangu
078 521 4310
mahlangu@rsabar.com
Instructed
by Ledwaba Mazwai Inc
012 346 7313
bonganis@ledwabamazwai.co.za
tumisom@ledwabamazwai.co.za
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