Case Law[2025] ZAGPJHC 429South Africa
Uniplate Investments Holdings (Pty) Limited and Another v Dieu Charis Enterprises (Pty) Limited and Others (2025/053282) [2025] ZAGPJHC 429 (5 May 2025)
Headnotes
Summary: Civil procedure – stay of – urgent application for stay of arbitration proceedings, pending application in terms of section 3(2) of the Arbitration Act – alternatively, pending judicial review of award by Arbitrator not to stay arbitration – no urgency – application should fail – Uniform Rules of Court 6(12) – any urgency self-created –
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Uniplate Investments Holdings (Pty) Limited and Another v Dieu Charis Enterprises (Pty) Limited and Others (2025/053282) [2025] ZAGPJHC 429 (5 May 2025)
Uniplate Investments Holdings (Pty) Limited and Another v Dieu Charis Enterprises (Pty) Limited and Others (2025/053282) [2025] ZAGPJHC 429 (5 May 2025)
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sino date 5 May 2025
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
(1) Not Reportable
(2) Not of Intrest to
other judges
Case
NO
:
2025-053282
DATE
:
5 May
2025
In the matter between:
UNIPLATE
INVESTMENTS HOLDINGS (PTY) LIMITED
First Applicant
UNIPLATE
GROUP (PTY) LIMITED
Second Applicant
and
DIEU
CHARIS ENTERPRISES (PTY) LIMITED
First Respondent
MICHAEL
VAN AS N O
Second Respondent
DEVANDRAN
NAICKER
Third Respondent
Neutral
Citation
:
Uniplate Investments Holdings and
Another v Dieu Charis Enterprises and Others (2025-053282)
[2025]
ZAGPJHC ---
(5 May 2025)
Coram:
Adams J
Heard
:
30 April 2025
Delivered:
5 May 2025 – This judgment was handed down electronically
by circulation to the parties' representatives by email, by being
uploaded to
CaseLines
and by release to SAFLII. The date and
time for hand-down is deemed to be 10:30 on 5 May 2025.
Summary:
Civil procedure – stay of – urgent
application for stay of arbitration proceedings, pending application
in terms of
section 3(2) of the Arbitration Act –
alternatively, pending judicial review of award by Arbitrator not to
stay arbitration
– no urgency – application should fail –
Uniform Rules of Court 6(12) – any urgency self-created –
Urgent application struck
from the roll for lack of urgency.
ORDER
(1)
The applicants’ urgent application be
and is hereby struck from the urgent court roll for lack of urgency.
(2)
The first and the second applicants,
jointly and severally, the one paying the other to be absolved, shall
pay the first respondent’s
costs of this urgent application,
such costs to include Counsel’s charges on scale ‘C’
of the tariff applicable
in terms of the Uniform Rules of Court.
JUDGMENT
Adams J:
[1].
Pending the final determination of part B
of this application, alternatively, the final determination of the
pending application
in terms of s 3 of the Arbitration Act 42 of 1965
(‘the Act’) under case number 2024-140326, whichever is
the earliest,
the first and the second applicants apply, on an urgent
basis, for an interim order interdicting and restraining the
arbitration
proceedings between the applicants and the first
respondent from proceeding before the second respondent
(‘arbitrator’).
In the alternative, the applicants apply,
on an urgent basis, for an order staying the enforcement of the
arbitrator's ruling dated
4 April 2025 and handed down on 7 April
2025 in terms of
section 33(3)
of the
Arbitration Act 42 of 1965
[2].
In part ‘B’ the applicants seek
to review and have set aside the ruling of the arbitrator dated 4
April 2025 and to
have substituted his finding that the arbitration
proceedings should not be stayed pending the outcome of the pending
s
3
application with a finding that the arbitration proceedings should
be stayed pending the final determination of the
section 3(2)
application and the action.
[3].
In the
s 3(2)
application dated 29 November
2024, the applicants apply for an order that the dispute resolution
agreement in the share sale agreement
between the parties be set
aside and/or for an order that the said agreement shall cease to have
effect with reference to the disputes
between the applicants and
respondents arising from the share sale agreement. In that
application the applicants also apply for
an order directing them to
institute an action with a view to resolving the dispute between them
arising from the share sale agreement,
by no later than 31 March
2025.
[4].
The arbitration arises from a Sale of
Shares Agreement dated 3 November 2023 between the first
respondent and the first applicant
for the sale of shares in the
second applicant and another company by the name of IPlate (Pty)
Limited. The first respondent sold
shares to the first applicant for
the purchase price of R1 800 000, and in the arbitration
proceedings before the second
respondent it claims from the first
applicant the balance of the purchase price of R1 500 000.
[5].
The first respondent opposes the
application and seeks that the matter be struck from the roll for
lack of urgency, alternatively,
dismissed with costs.
[6].
There are two
difficulties which the applicants face relative to the issue of
urgency.
[7].
The first relates to the fact that the
first respondent as far back as 10 September 2024 invoked the
arbitration clause in
the share sale agreement. On 12 September 2024,
the parties agreed on the appointment of the second respondent,
Advocate Mike Van
As SC, as the arbitrator. On 10 October 2024, the
attorneys for the applicants and the first respondent met for a
pre-arbitration
meeting. The applicants did not object to the
arbitration proceedings.
[8].
On 18 October 2024 (more than a month after
the first respondent invoked the arbitration clause), the applicants
then did an about
turn and refused to participate in the proceedings
unless other third parties consented to being parties in the
arbitration. The
applicants refused to sign a formal arbitration
agreement unless these third parties consented to being a part of the
arbitration.
The applicants also threatened to file an application to
stay the arbitration proceeding unless those third parties consented
to
be a part of the arbitration.
[9].
On 08 November 2024, the third respondent
served and filed its statement of claim. The applicants were afforded
twenty-one days
to oppose the claim, which they elected not to do. On
15 November 2024, the applicants again threatened to launch an
application
for a stay, and that the applicants would seek an
interdict to prevent the continuation of the arbitration proceedings
pending
the hearing of the application.
[10].
The applicants only filed their
section
3(2)
application on 29 November 2024 and did not seek relief on an
urgent basis. And the foreshadowed action was only instituted on 31
March 2025.
[11].
The point is that the applicants became
aware of the arbitration proceedings during September 2024. During
October 2024, they seemingly
adopted the position that they do not
want the arbitration proceedings to proceed. Yet they did nothing
until April 2025. T
here
is, in my view, no explanation, let alone an acceptable one, why the
applicant did nothing in support of their cause from October
2024 to
April 2025.
[12].
The second difficulty
relates to the fact that even after the applicants resolved during
November 2024 to have set aside the arbitration
agreement, they still
did nothing to put a halt to the arbitration, which the first
respondent was clearly determined to prosecute
to finality. The
rhetorical question to be asked is why they did not at that stage
launch the application to stay the arbitration.
[13].
It is the first
respondent’s contention that the alleged urgency of the matter
is self-created and that there was non-compliance
with the provisions
of Uniform Rule of Court 6(12). It was submitted on behalf of the
first respondent that despite the fact that
the applicant was aware
as far back as at least October 2024 that the first respondent was
proceeding with the arbitration to finality,
the applicants failed to
issue their application soon thereafter.
[14].
Rule 6(12)(b) of the
Uniform Rules of Court reads as follows that:
‘
(b)
In every affidavit or petition filed in support of the application
under para (a) of this sub-rule, the applicant shall
set forth
explicitly the circumstances which he avers render the matter urgent
and the reasons why he claims that he would not
be afforded
substantial redress at a hearing in due course.’
[15].
On behalf of the
applicants, it was submitted that the application is urgent because
it was only when the third respondent issued
his award on 7 April
2025 that the exigency of the matter dawned on them. There is no
merit in this contention.
[16].
I am of the view that
the urgency of this application is self-created. The applicants
should have launched this application as soon
as the respondents made
it clear to him that they do not intend staying the arbitration
proceedings. If they did so, urgency would
not have been an issue
now. I am not convinced that the applicants have passed the threshold
prescribed in Rule 6(12)(b) and I
am of the view that the application
ought to be struck from the roll for reasons given above.
[17].
In
Dynamic
Sisters Trading (Pty) Limited and Another v Nedbank Limited
[1]
,
this court held as follows: -
‘
This
Court has consistently refused urgent applications in cases when the
urgency relied-upon was clearly self-created. Consistency
is
important in this context as it informs the public and legal
practitioners that Rules of Court and Practice Directives can only
be
ignored at a litigant's peril. Legal certainty is one of the
cornerstones of a legal system based on the Rule of Law.’
[18].
Accordingly, the application should be
struck from the roll with costs.
Order
[19].
In the result, I make the following order:
(1)
The applicants’ urgent application be
and is hereby struck from the urgent court roll for lack of urgency.
(2)
The first and the second applicants,
jointly and severally, the one paying the other to be absolved, shall
pay the first respondent’s
costs of this urgent application,
such costs to include Counsel’s charges on scale ‘C’
of the tariff applicable
in terms of the Uniform Rules of Court.
L R ADAMS
Judge of the High
Court
Gauteng Division,
Johannesburg
HEARD ON:
30 April 2025
JUDGMENT DATE:
5 May 2025 –
Judgment handed down electronically
FOR THE FIRST AND
THE
SECOND APPLICANTS:
I Miltz SC
INSTRUCTED BY:
Fluxmans Incorporated,
Illovo, Johannesburg
FOR
THE FIRST RESPONDENT:
A
Cook
INSTRUCTED
BY:
Wilken
Attorneys,
Hulringham Manor, Randburg
FOR
THE SECOND RESPONDENT:
No
appearance
INSTRUCTED
BY:
No
appearance
FOR
THE THIRS RESPONDENT:
No
appearance
INSTRUCTED
BY:
No
appearance
[1]
Dynamic
Sisters Trading (Pty) Limited and Another v Nedbank Limited
2023
JDR 3204 (GP).
sino noindex
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