Case Law[2025] ZAGPJHC 447South Africa
Airports Company South Africa SOE Limited and Another v Aviation CO-Ordination Services (Pty) Limited and Another (119918/2023) [2025] ZAGPJHC 447 (2 May 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
2 May 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Airports Company South Africa SOE Limited and Another v Aviation CO-Ordination Services (Pty) Limited and Another (119918/2023) [2025] ZAGPJHC 447 (2 May 2025)
Airports Company South Africa SOE Limited and Another v Aviation CO-Ordination Services (Pty) Limited and Another (119918/2023) [2025] ZAGPJHC 447 (2 May 2025)
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sino date 2 May 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 119918/2023
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES
2
May 2025
In
the matter between:
AIRPORTS
COMPANY SOUTH AFRICA SOE
LIMITED
FIRST APPELLANT
SOUTH
AFRICAN CIVIL AVIATION AUTHORITY
SECOND APPELLANT
And
AVIATION
CO-ORDINATION SERVICES (PTY)
LIMITED
FIRST RESPONDENT
AIRLINE
ASSOCIATION OF SOUTH AFRICA
SECOND RESPONDENT
BOARD
OF AIRLINE REPRESENTATIVES OF
SOUTH
AFRICA
THIRD RESPONDENT
JUDGMENT
TWALA J (DLAMINI et
MFENYANA JJ concurring)
Introduction
[1]
This is an appeal brought by the appellants in terms of section
18(4)(ii) of the Superior Courts Act
[1]
(“the
Act”)
against the order of Adams J granted on 28 February 2025 which made
the orders 5 and 6 of Adams J’s judgment of 5 November
2024
immediately operational and executable.
[2]
There are two central issues for determination in this appeal which
are: First is whether the orders 5 and 6 of Adams
J’s judgment
of 5 November 2024 are interim or final in nature and effect; and
secondly, if they are interim in nature and
effect whether they are
subject to an appeal in terms of section 18(4)(ii). Put in another
way, whether this Court has the requisite
jurisdiction to determine
this appeal under the remit of section 18(4)(ii).
[3]
I propose to refer to the first appellant as ACSA and the second
appellant as SACAA and jointly as the appellants. The
first
respondent shall be referred to as ACS and since the second and third
respondents do not play any part in these proceedings,
I will refer
only to ACS when dealing with the respondents.
Factual
Background
[4]
The genesis of this appeal arises from a decision taken by ACSA on 18
May 2023 which was confirmed by the Minister of
Transport on 8
September 2023 to terminate ACS’s provision of the hold baggage
system
(“HBS”)
service at its airports and to
insource these services. On 16 November 2023 ACS launched a review
application to review and set
aside these decisions of ACSA
terminating the long-standing contract between the parties, including
the decision to insource baggage
reconciliation system
(“BRS”)
or baggage management system
(“BMS”).
[5]
On 17 and 20 May 2024 ACS received notice of termination from ACSA
together with a notice that ACSA would issue a tender for the
provision of these services for the sum of R3.15 billion. This
galvanised ACS to launch the urgent application to interdict ACSA
from proceeding with the tender pending the final determination of
the review process. Further, ACS sought an order to allow it
to
replace four level 3 back-up units with new back-up units at OR Tambo
International Airport and King Shaka International Airport,
and that
SACAA approve the replacement of the back-up units.
[6]
On 5 November 2024 the court a quo granted an interim interdict
against ACSA preventing it from adjudicating and taking any steps
in
relation to the tender it issued in May 2024 for the provision of HBS
services, and otherwise implementing the 2023 insourcing
decision;
that ACSA should allow ACS to replace the four back-up units at OR
Tambo and King Shaka International Airports; and that
SACAA should
approve the replacement of these back-up units. All of these orders
were to be operational pending the finalisation
of the review
proceedings.
[7]
Dissatisfied with the judgment and order of 5 November 2024, the
appellants launched an application for leave to appeal and a
conditional application to suspend the operation and executability of
the orders pending the appeal process. On 28 February 2025
the Court
a quo granted ACSA and SACAA leave to appeal but declared that orders
5 and 6 of its judgment of 5 November 2024 were
interim pending the
finalisation of the review process and dismissed the conditional
counter application to suspend the operation
and executability of
orders 5 and 6. This prompted the appellants to bring this urgent
appeal in terms of section 18(4)(ii).
Submissions
by the Parties
[8]
ACS contended that the appellants have failed to meet the
requirements for bringing this appeal under the provisions of section
18(4) of the Act. There has been no order as required for such an
appeal. The court a quo did not order otherwise as contemplated
in
section 18(1) of the Act. The purported appeals by the appellants in
terms of section 18(4) of the Act are incompetent and should
be
dismissed.
[9]
Further, ACS contended that the declaratory order related to section
18 of the Act as it concerned the status of the first order
as either
interim or final and therefore not suspended or suspended in terms of
section 18 – hence the court a quo referred
to it as being in
terms of section 18 of the Act. To state it otherwise, it is
undeniable that the court a quo did not make executable
an order that
was otherwise suspended in terms of section 18(1) of the Act which
would have triggered the right of automatic appeal
under section
18(4).
[10]
The appellants contended that the test to determine whether an
interim order is appealable or not is whether it is in the interests
of justice for the litigant to be granted leave to appeal. In its
determination, the court should consider amongst others whether
there
are prospects of success, whether the decision, although
interlocutory, has a final effect and whether irreparable harm would
ensue if leave to appeal is not granted.
[11]
The appellants contended further that orders 5 and 6 are final in
nature in that they prevent the appellants from executing their
statutory function as conferred by the legislation. The interdict
prevents ACSA from acting in terms of the Public Finance Management
Act
[2]
and section 217 of the
Constitution
[3]
. Further, the
mandamus usurps the powers of SACAA of executing its functions to
regulate safety in aviation.
Legal
Framework
[12]
It is apposite at this stage to restate the provisions of section 18
of the Superior Courts Act which provide as follows:
“
Suspension of
decision pending appeal:
18.(1) Subject to
subsections (2) and (3), and unless the court under exceptional
circumstances orders otherwise, the operation
and execution of a
decision which is the subject of an application for leave to appeal
or of an appeal, is suspended pending the
decision of the application
or appeal.
(2)
Subject to subsection (3), unless the court under exceptional
circumstances orders otherwise, the operation and execution of a
decision that is an interlocutory order not having the effect of a
final judgment, which is the subject of an application for leave
to
appeal or of an appeal, is not suspended pending the decision of the
application or appeal.
(3)
A court may only order otherwise as contemplated in subsection (1)
and (2), if the party who applied to the court to order otherwise,
in
addition proves on a balance of probabilities that he or she will
suffer irreparable harm if the court does not so order and
that the
other party will not suffer irreparable harm if the court so orders.
(4)
If the court orders otherwise as contemplated in subsection (1) –
(i) the court must
immediately record its reasons for doing so;
(ii)
the aggrieved party has an automatic right of appeal to the next
highest court;
(iii)
the court hearing such an appeal must deal with it
as a matter of extreme urgency; and
(iv)
such order will be automatically suspended, pending the outcome of
such appeal.”
(5)
…
[13]
Furthermore, to put matters in the correct perspective, it is
convenient to mention the order of 28 February 2025 as it forms part
of the discussion which is the following:
“
(1)
The first respondent is granted leave to appeal to the Full Court of
this Division.
(2)
The costs of the first respondent’s application for leave to
appeal shall be costs in the appeal.
(3)
The fourth respondent is granted leave to appeal against paragraph
(6) of the Order of this Court dated 5 November 2024.
(4)
The costs of the fourth respondent’s application for leave to
appeal shall be costs in the appeal.
(5)
The applicants’ application for declaratory relief in terms of
section 18 of the Superior Court Act 10 of 2013 succeeds with
costs.
(6)
It is declared that the orders in paragraphs (5) and (6) (‘the
mandamus’) of the order of this Court dated 5 November
2024 are
operative and are not suspended by the first respondent’s
(ACSA’s) and the second respondent’s (the
SACAA’s)
applications for leave to appeal or appeals.
(7)
ACSA and SACAA be and are hereby ordered and directed to comply with
the mandamus within ten days from date of this order.
(8)
ACSA and SACAA shall pay the applicants’ costs of the section
18 application, jointly and severally, the one paying the other
to be
absolved, which costs shall include the costs consequent on the
employment of two Counsel, one being Senior Counsel, on the
scale ‘C’
of the tariff applicable in terms of the Uniform Rules of Court.”
(9) ACSA’s
conditional counterapplication is dismissed with costs.
(10) ACSA shall pay the
applicants’ costs of the conditional counterapplication, which
costs shall include the costs consequent
on the employment of two
Counsel, one being Senior Counsel, on scale ‘C’ of the
tariff applicable in terms of the Uniform
Rules of Court.
Discussion
[14]
It is trite that when the jurisdiction of the
Court is challenged by one of the parties, it must be determined
first since it forms
the basis for the court’s power to
determine the issues between the parties. In determining whether the
Court has the requisite
jurisdiction to adjudicate the matter, the
Court must consider the pleadings as a starting point.
[15]
In
Competition
Commission of South Africa v Standard Bank of South Africa
Limited
[4]
,
the Constitutional Court stated the following:
“
Boqwana
JA was correct to find that the
rule 53
record
may be relevant to jurisdiction, since the test for assessing the
jurisdiction of the Competition Appeal Court in a
review application
is connected to the grounds of review. This does not, however,
imply that jurisdiction should not be established
up front on the
basis of what is pleaded in the founding papers. The court
chosen by an applicant in a review application
must be able to assert
its jurisdiction on the basis of the founding papers. Where no facts
are alleged in the founding papers
upon which jurisdiction could be
founded, the applicant is not entitled to the production of the
record in the hope that it will
help clothe the court with the
necessary jurisdiction. Standard Bank was required to first
establish jurisdiction in its
founding papers before the Competition
Appeal Court could direct the production of a
rule
53
record.
As mentioned, the question of jurisdiction has not yet been
adjudicated by the Competition Appeal Court.
Boqwana JA
should not have directed that
the
rule
53
record
be produced without first deciding whether the Competition Appeal
Court was competent to hear the review application
as a court of
first instance.”
[16]
Undoubtedly, section 18(1) of the Act confirms the common law
principle that a final order is suspended pending an application
for
leave to appeal or an appeal of that order, whereas section 18(2)
provides that interim orders remain in full force and effect
pending
an application for leave to appeal or an appeal of that order. Put
differently, section 18(2) provides that interim orders
are not
suspended and remain effective, operational and executable. A court
may order differently under both sections if certain
requirements are
met, that being firstly, exceptional circumstances warranting the
deviation and, irreparable harm to the party
seeking the deviation
together with the absence of irreparable harm to the other party.
[17]
In
Ntlemeza
v Helen Suzman Foundation and Another
[5]
the
Supreme Court of Appeal stated the following when it was dealing with
section 18 of the Act:
“
In
order to embark on a determination of whether the preliminary
jurisdictional point raised on behalf of General Ntlemeza, set
out in
para 17 above, has substance, it is necessary to consider the
provisions of s 18(1) and (2). These sections provide
for
two situations.
First,
a judgment (the principal order) that is final in effect, as
contemplated in s 18(1): In such a case the default
position is that the operation and execution of the principal order
is suspended pending ‘the decision of the application
for leave
to appeal or appeal’. Second, in terms of s 18(2), an
interlocutory order that does not have the effect of
a final
judgment: The default position (a diametrically opposite one to that
contemplated in s 18(1) is that the principal
order is not
suspended pending the decision of the application for leave to appeal
or appeal. This might at first blush appear
to be a somewhat peculiar
provision as, ordinarily, such a decision is not appealable. However,
this subsection appears to have
been inserted to deal with the line
of cases in which the ordinary rule was relaxed referred to in para
20 above
[6]
.
Both
sections empower a court, assuming the presence of
certain
jurisdictional
facts,
to
depart from the default position. It is uncontested that the high
court’s judgment on the merits of General Ntlemeza’s
appointment is one final in effect and therefore s
18(1) applies. This section provides that the operation and
execution
of a decision that is the ‘subject of an application
for leave to appeal or appeal’ is suspended pending the
decision
of either of those two processes. Section 18(5) defines
what the words ‘subject of an application for leave to appeal
or appeal’ mean: ‘a decision becomes the subject of an
application for leave to appeal or of an appeal, as soon as
an
application for leave to appeal or a notice of appeal is lodged with
the registrar in terms of the rules
[7]
.’
[18]
It is my respectful view therefore that, for a party to be able to
invoke the provisions of section 18(4) of the Act,
it should
demonstrate to the court that there was an order made in terms of
section 18(1). Section 18(4) can only be engaged if
the Court made an
order in terms of section 18(1) or has ordered otherwise in terms of
section 18(3).
[19]
It is indisputable and has been confirmed by both appellants at the
hearing of this appeal that the appeal is brought
as an urgent appeal
in terms of section 18(4) of the Act. As indicated above, the
automatic right of appeal on an urgent basis
as provided for under
section 18(4)(ii) of the Act is only engaged if the appellants have
demonstrated that an order was made in
terms of section 18(1) of the
Act. The appellants have failed to do so as the orders 5 and 6 of the
judgment of 5 November 2024
are interim and fall within the realm of
section 18(2) of the Act.
[20]
It is apparent from the record that orders 5 and 6 of the judgment of
5 November 2024 were interim in nature and effect
as they were made
pending the finalization of the review proceedings. Further, in the
judgment of 28 February 2025, although the
Court granted the
appellants leave to appeal, orders 5 and 6 were declared to be
interim orders pending the finalization of the
review proceedings and
were made operational and executable by operation of the law.
[21]
Since the Court dismissed the application in terms of section 18(3)
to suspend the operation and executability of orders
5 and 6, in
other words, the Court did not order otherwise in relation to orders
5 and 6, this Court lacks the requisite jurisdiction
to determine
this urgent appeal. The irresistible conclusion is therefore that the
appellants have failed to meet the jurisdictional
requirements to
invoke the provisions of section 18(4) in order for this Court to
determine this urgent appeal.
[22]
In the premises, the following order is made:
1.
The first and second appellants’ appeals are dismissed.
2.
The first and second appellants, jointly and severally,
the one paying the other to be absolved, are to pay the costs of the
urgent
appeal, such costs to include the costs of two counsel, one of
which is senior counsel, on scale C.
TWALA
M L
Judge
of the High Court of South Africa
Gauteng
Division, Johannesburg
Heard
On:
25 April 2025
Date
of Judgment: 2 May 2025
For
the First Appellant:
Advocate T Motau SC
Advocate L Kutumela
Instructed
by:
Mashiane Moodley & Monama Inc.
Tel: 011 303 7900
Email:
damaphakela@m4attorneys.co.za
For
the Second Appellant:
Advocate PL Mokena
SC
Advocate TK Manyange SC
Instructed
by:
Mfinci Bahlman Incorporated
Tel: 012 361 1647
Email:
vuyisa@mfincibahlmann.co.za
For
the Respondents:
Advocate F Snyckers SC
Advocate N Luthuli
Instructed
by:
Webber Wentzel
Tel:
o11 530 5220
Email:
glenn.penfold@webberwentzel.com
Delivered:
This judgment and order was prepared and authored by the Judge
whose name is reflected and is handed down electronically by
circulation
to the Parties/their legal representatives by email and
by uploading it to the electronic file of this matter on Case Lines.
The
date of the order is deemed to be the 2 May 2025.
[1]
10
of 2013.
[2]
Act
1 of 1999.
[3]
Constitution
of the Republic of South Africa, 108 of 1996.
[4]
[2020]
(4)- BCLR 429
(CC) para 119
[5]
2017
(5) SA 402
(SCA)
[6]
Id
para 25
[7]
Id
para 26
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