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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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[2025] ZAGPJHC 489
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## Mafube Local Municipality v South African Local Authorities Pension Fund and Others (2020/37457)
[2025] ZAGPJHC 489 (23 May 2025)
Mafube Local Municipality v South African Local Authorities Pension Fund and Others (2020/37457)
[2025] ZAGPJHC 489 (23 May 2025)
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sino date 23 May 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG.
Case
Number: 2020- 37457
(1) REPORTABLE: YES
/ NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED: NO
23
May 2025
In
the matter between:
MAFUBE
LOCAL MUNICIPALITY
Applicant
And
SOUTH
AFRICAN LOCAL AUTHORITIES PENSION FUND
First
Respondent
ABSA
BANK
Second Respondent
FIRST
NATIONAL BANK
Third Respondent
STANDARD
BANK OF SOUTH AFRICA
Fourth Respondent
THE SHERIFF
HEILBRON
Fifth Respondent
## JUDGMENT
JUDGMENT
NOKO
J
Introduction
[1]
The applicant launched an application to set aside
of a warrant of execution issued by the Registrar in this Division.
Further,
that the goods attached in terms of the said warrant of
execution be released from the attachment. All other parties except
the
first respondent are not participating in this
lis
and as such reference to the respondent would mean
the first respondent.
Parties
[2]
The applicant is
MAFUBE
LOCAL MUNICIPALITY
,
a municipality as contemplated in section 2 of the Local Government:
Municipal Systems Act
[1]
with
its principal place of business situated at 6[…] J[…]
H[…] Street, F[…], Free State Province.
[3]
The
first respondent is
SOUTH
AFRICA LOCAL AUTHORITIES PENSION FUND
,
a fund duly registered in terms of the Pension Funds Act
[2]
with its
domicilium
address
at c/o Motlatsi Seleke Attorneys, 1
st
Floor,
6[…] C[…] Street, Sandton, Johannesburg.
[4]
The
second respondent is
ABSA
BANK LTD
,
a bank registered in terms of the Banks Act
[3]
(Banks Act) and also a public company duly incorporated in accordance
with the Company laws of the Republic of South Africa carrying
its
business at J[…] H[…] Street, F[…], Free State
Province.
[5]
The third respondent is
FIRST NATIONAL BANK
, a bank registered
in terms of the Banks Act and also a public company duly incorporated
in accordance with the Company laws of
the Republic of South Africa
with its business address at 5[…] J[…] H[…]
Street, F[…], Free State Province.
[6]
The fourth respondent is
STANDARD BANK OF SOUTH AFRICA
, a bank
registered in terms of the Banks Act and also a public company duly
incorporated in accordance with the Company laws of
the Republic of
South Africa with its registered address at B[…] street, F[…].
[7]
The fifth respondent is
THE
SHERIFF FOR THE DISTRICT OF HEILBRON
,
cited in his official capacity appointed in terms of the Sheriffs
Act.
[4]
Background
[8]
The
background of the dispute between the parties is not contentious. The
applicant deducts pension fund contributions from its
employees on
monthly basis and undertakes to pay same to the first respondent. The
applicant failed to forward the deductions to
the first respondent
over a period of time. The failure of the applicant to pay the
contributions was referred to the Pension Fund
Adjudicator on 4
August 2020 by the first respondent in terms of the Penson Funds Act.
The pension fund administrator duly adjudicated
over the referral and
made a determination against the applicant on 4 August 2020 for
contravening section 13A
[5]
of
the Pension Fund Act and was ordered to pay the amount of 98 million
rands.
[9]
The
determination by the adjudicator is of the same status with an order
of the high court in terms of section 30(O)(1).
[6]
The said determination was forwarded to this Division and was made an
order of court. The first respondent ultimately caused a
writ of
execution to be issued on the basis of the determination by the
adjudicator. The fifth respondent was instructed to proceed
with the
attachment and accordingly attached the applicant’s bank
accounts held with the second, third and fourth respondents.
The
applicant was aggrieved by the attachment and instituted the
proceedings to challenge it.
[10]
The application was launched in two parts. Part A
was for an interim order to stay the warrant of execution pending the
adjudication
of Part B being for the setting aside of the writ of
execution. Relief sought in Part A was granted on 15 May 2023.
Parties
submissions
Application
for the condonation of the late filing of heads of Argument.
[11]
In support of the application for the condonation
of the late filing of the heads of arguments, the attorney, acting on
behalf of
the applicant, stated that he joined the current
applicant’s attorneys of record during late 2024 and did not
have sufficient
time to get up to speed with the details and nature
of the matter. He initially thought that the matter was set down to
be heard
on 28 of April 2025 but noted that it would be a holiday and
subsequently was informed that the matter was reallocated to 29 April
2025. He noted later that the heads of argument which were filed
related to Part A of the application, whereas, this matter was
enrolled in respect of Part B of the application. He immediately made
efforts to engage with his opponents and made a commitment,
hoping
that his counsel would be available to settle the heads of argument
but unfortunately the counsel was not available. The
parties
subsequently managed to have a joint minute signed and filed with the
court.
[12]
The respondent whilst not opposing the application for condonation
demonstrated that the applicant’s nonchalant
attention and
lackadaisical stance should be frowned upon and the costs order be
granted at a punitive scale.
[13]
The submissions put forward by the applicant do not give credence to
the contention that the applicant has been keen
to seeing to the
finalisation of the matter. The order regarding the stay of the
warrant was made a while ago and it took few years
for the matter to
be prosecuted without coherent explanation from the applicant. In the
circumstances, I find the conduct of the
applicant amounting to
unreasonable delay and the applicant should be mulcted with costs at
a punitive scale.
Merits
[14]
The applicant referred to section 30M of the
Pension Funds Act, in terms of which the adjudicator is entitled to
refer his findings
together with the reasons to the clerk or the
registrar of the court which has jurisdiction over the matter. In
this instance,
the registrar of this Court does not have jurisdiction
as the applicant is a resident within the area of jurisdiction of
Free State
High Court and not within the jurisdiction of the Gauteng
High Court. To this end, counsel argued, the warrant of the execution
issued at this Court should be set aside and be declared
pro
non scripto
.
[15]
The first respondent contends that the
determinations of the Pension Fund Adjudicator, in terms of the
Pension Fund Act accorded
the determinations by the adjudicator the
status of civil judgments and enforceable through the court
processes. Pursuant to the
reluctance of the applicant to effect
payment in accordance with the determination by the Adjudicator, the
first applicant approached
the registrar of the above court in terms
of section 30(O)(2) of the Pension Funds Act on 29 July 2022 to issue
of a writ. The
said warrant was accordingly issued on 7 February 2023
and the bank accounts of the applicant were then attached.
[16]
The first respondent contends further that the
application for rescission brought by the applicant is ill advised
especially because
rescission rules relates to rescissions of
judgement or orders of court and not warrant of execution. In any
event, the applicant
fails to satisfy the requirement as set out in
Rule 42(1)(a) of the Uniform Rules of Court and /or the common law.
[17]
Secondly,
counsel argued, section 30M envisages that the adjudicator would,
after making a determination, also make a decision as
to which High
Court has jurisdiction to execute the determination that has been
made. The decision by the adjudicator to decide
which court would
have jurisdiction remains extant until set aside by the court having
jurisdiction. It follows, counsel continued,
that the applicant would
ordinarily have a recourse, in terms of section 30P of the Pension
Funds Act, to proceed with a judicial
review. If a party disregard
the decision made by the adjudicator, his or her conduct would amount
to self-help a conduct proscribed
by the courts as illustrated in
EFF
and Others v The Speaker of the National Assembly and Another
.
[7]
[18]
The applicant in retort contends that section 30O
of the Pension Funds Act provide that once an adjudicator has made a
determination,
that determination shall have the effect of civil
judgement of any court of law. Further, unlike the provisions of
section 30M
and section 30O, does not make any reference to
jurisdiction. As a result, “… the words any court should
be interpreted
to include the court which has jurisdiction over the
course of the matter by which of the determination being made within
its geographical
jurisdiction”.
Issues
[19]
Issues for the determination is to establish if the applicant made
out a case for the relief sought and whether the defences
raised by
the respondent are valid.
Legal
principles
[20]
Ordinarily, a warrant of
execution can be set aside on the basis, firstly, that the writ does
not conform with the judgment which
its issue, secondly, the judgment
is not definite and lastly that the causa for the judgment has fallen
away.
[8]
[21]
It was also stated in
FirstRand
Bank Limited v Baadjies
[9]
that:
“
In approaching the
question of jurisdiction in the context of the present case, the
starting point must be found in the provisions
of s19 (1) (a) of the
Superior Court Act,
[10]
which
confers jurisdiction,
inter
alia
,
‘… over all persons residing or being in and in relation
to
all
causes arising
…
within
its area of jurisdiction and all other matters of which it may
according to law take cognizance…’ It is trite
that a
cause based on contract ‘arises’ where (a) the contract
was entered into; or (b) the contract is or was to be
performed,
wholly or in part; or (c) the particular breach of contract upon
which the plaintiff relies, was committed. The plaintiff
has a choice
of instituting action in any of these places.”
[11]
[22]
The Supreme Court of
Appeal held in
Makhanya
[12]
that:
“…
the
term ‘jurisdiction’, as it has been used in this case,
and in the related cases that I have mentioned, describes
the power
of the court to consider and to either uphold or dismiss a claim. And
I have also pointed out that it is sometimes overlooked
that to
dismiss a claim (other than for lack of jurisdiction) call for the
exercise of judicial power as much as it does to uphold
the
claim.”
[13]
Analysis
[23]
Section 30M (1) is very
specific that the determination should be referred to the clerk or
registrar of the court which has jurisdiction
over the
lis
.
The relevant portion of the section is that “…
any
court of law had the matter in question been heard by such
court
.”
[14]
Though not in clearest terms with perfect interpretation the section
means the court which would have been seized with the matter
had it
not been referred to the Pension Fund Adjudicator.
[24]
It is trite that the Court has jurisdiction over the defendant who
ordinarily resides or carries business within its
area of
jurisdiction alternatively if the cause of action arose within its
area of jurisdiction. In
casu,
the cause of action arose in
the Free State Province and the applicant carries its business in the
said province. It follows that
the court which has jurisdiction is
the Free State High Court and not this Division.
[25]
Other arguments raised by the first respondent do not address the
essence of the application serving before me and need
not detain me
further.
Conclusion
[26]
In the premises the ineluctable conclusion is that the registrar has
no jurisdiction and therefore the warrant issued
is susceptible to be
set aside.
Costs
[27]
It is settled in our jurisprudence that the issue of costs resorts
within the discretion of the court and normally the
costs should
follow the results. I have already relayed my displeasure at the way
through which the applicant dealt with the matter
and believe that
though the applicant is successful the principle that the costs
should follow the costs would be departed from
in this
lis
.
The applicant had an opportunity to challenge the adjudicator’s
determination had there being any qualms about its essence
otherwise
the applicant should have complied therewith without being compelled
to comply therewith. No plausible explanation has
been advanced.
Order
[28]
I therefore make the following order.
1. The warrant of
execution issued by the Registrar of the above Honourable Court under
case number 37457/2020 is set aside.
2. No order as to
costs.
M
V NOKO
Judge
of the High Court
Gauteng
Division, Johannesburg.
DISCLAMER:
This judgment was prepared and authored by Judge Noko 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 for hand-down
is deemed to be
23 May 2025 at 14:00.
Dates:
Hearing:
29 April 2025.
Judgment:
23 May 2025
Appearance:
For
the Appellant: LA
Roux
Instructed by Peyper
Attorneys.
For
the Respondent: K Nkabinde
Instructed by Motlatsi
Seleke Attorneys.
[1]
Act 32 of 2000.
[2]
Act 24 of 1956.
.[3]
Act 94 of 1990.
[4]
Act 90 of 1986.
[5]
Section
13A mandates that employers must deposit contributions to pension
funds by the seventh day of the month following the
month for which
the contributions are due.
[6]
Section 30(O)(1) provides that: “
Any
determination of the Adjudicator shall be deemed to be a civil
judgment of
any
court of law had the matter in question been heard by such court
,
and shall be so noted by the clerk or the registrar of the court, as
the case may be.” Emphasis added.
[7]
[2017] ZACC 47;
2018 (3) BCLR 259 (CC);
2018 (2) SA 571 (CC).
[8]
See
Strydom
NO v Kruger and Another
[2022]
ZANCHC 3
at
[8]
.
[9]
[2013] ZAWCHC 116
at para 6.
[10]
Act 10 of 2013.
[11]
See
also section 21(1) of the Superior Court Act 10 of 2013 states that:
“
a
division has jurisdiction over all persons residing or being in, and
in relation to all causes arising and all offences triable
within,
its area of jurisdiction and all other matters of which it may
according to law take cognisance.
[12]
Makhanya
v University of Zululand
[2009]
ZASCA 69;
2010 (1) SA 62 (SCA).
[13]
Id
at
para 52.
[14]
See
also ‘
The
LAWSA
’
,
second ed,
2010,
vol 20
at
p276.
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