Case Law[2025] ZAGPJHC 820South Africa
Devinity Trading (Pty) Ltd v City Power (Soc) Ltd (035118/2024) [2025] ZAGPJHC 820 (31 July 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
31 July 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## Devinity Trading (Pty) Ltd v City Power (Soc) Ltd (035118/2024) [2025] ZAGPJHC 820 (31 July 2025)
Devinity Trading (Pty) Ltd v City Power (Soc) Ltd (035118/2024) [2025] ZAGPJHC 820 (31 July 2025)
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sino date 31 July 2025
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, JOHANNESBURG
CASE
NO
: 035118/2024
DATE
:
31-07-2025
(1)
REPORTABLE: NO
(2)
OF INTREST TO OTHER JUDGES: NO
(3)
REVISED
DATE
31 July 2025
In
the matter between
DEVINITY
TRADING (PTY) Ltd
Applicant
and
CITY POWER (SOC)
LTD
Respondent
JUDGMENT
EX TEMPORE
(POSTPONEMENT APPLICATION)
WILSON,
J
: The applicant,
Devinity Trading, applies to make an arbitral award issued
by LT Sebeko SC on 23 January 2024
an order of this court.
The respondent, City Power, opposes the application on the basis that
it seeks to review and set
the award aside.
When
the matter was called before me this morning, counsel who settled
City Power's heads of argument did not appear. Instead
Mr
Loopoo, of the Johannesburg Bar, appeared and asked for a
postponement. A postponement application was not made in
writing.
It was motivated from the bar.
Insofar as I can
discern from Mr Loopoo’s helpful and lucid submissions, City
Power has not paid either the attorneys or the
counsel who are
involved on its behalf in this matter for several months. There has
been fee dispute of some sort between City
Power's legal
representatives and City Power itself since December last year.
It is not suggested and of course cannot be
suggested that City Power
is completely incapable of paying its lawyers’ fees, and I have
been given no real sense of why
City Power has not paid those fees.
In the correspondence uploaded to CaseLines to which I am inclined to
have regard, there is
mention of budgetary constraints, but no more
detail than that is given. I do not think that there is any
material on the
record that would allow me to find that City Power
lacks the resources to properly brief and pay its counsel in this
application.
The
reasons for City Power's counsels’ non-appearance therefore
remain a mystery – at least insofar as City Power’s
failure to pay them is concerned. What the failure to pay City
Power's lawyers does indicate to me, however, is a lack of
concern
for its own interests in this application, a lack of respect for the
court and an attitude of indifference to what may
happen today in its
counsels’ absence.
I
say this with the utmost respect to Mr Loopoo and his instructing
attorneys, bearing in mind their limited mandate before me.
However,
a litigant who in these circumstances fails to pay its legal
representatives and then on the eve of the hearing decides
to
motivate a postponement application from the bar, displays an
attitude that may fairly be described as slovenly and indifferent
to
what the outcome of the postponement application and the main case
might be.
Material to a
consideration of whether or not to postpone this application is the
balance of prejudice between the parties and City
Power's prospects
of success in the main application. Insofar as the balance of
prejudice is concerned, the arbitration agreement
at issue in this
case was entered into on 22 December 2015 and the arbitration award
that Devinity Trading seeks to enforce was
made 18 months ago.
Arbitration is
supposed to be a quick and inexpensive way of resolving mostly
commercial disputes. I think it is fair to say
that Devinity
Trading’s reliance on arbitration in this case has neither been
quick nor inexpensive. The delays that have
been occasioned by the
opposition to the attempt to make the arbitration award an order of
court, and the delay that would be occasioned
by postponing this
application further, obviously redound to Devinity Trading’s
prejudice. Simply put, Devinity Trading
struck a bargain with
City Power 10 years ago and is still waiting to be paid.
Further delay is inherently prejudicial.
The
prejudice to City Power is difficult to assess because I have nothing
under oath that sets out what that prejudice might be.
Prejudice is of course seldom presumed and is always a matter of
fact. With no facts setting out City Power's prejudice I
am
constrained in my assessment. However it is appropriate to take
into account whether a failure to postpone the application
would deny
City Power the reasonable opportunity to present a case that bears
some prospects of success. Accordingly, it
seems to me that
City Power's prospects of success in the main case ought to be
considered at this point in the enquiry.
Having read the
papers and confirmed my
prima facie
views with Mr Machaba, who appears for Devinity Trading, I am bound
to conclude that City Power's prospects of success in the main
application are virtually zero. Arbitral awards are not
reviewed for the asking. They may only be reviewed on the
grounds set out in the
Arbitration Act 42 of 1965
.
The particular ground on which City
Power relies in the main application in this case is that the
arbitrator committed a gross irregularity.
As far I can see, there
are two aspects of the arbitrator's conduct that are said to be
grossly irregular on City Power's papers.
The first is that he
decided the award on a legal point not put to City Power's
representatives at the arbitration and in relation
to which City
Power had no reasonable opportunity to make submissions. The
difficulty with that proposition is that the legal
point is nowhere
identified on the papers. Nor is it discernible from the papers
whether and to what extent the point, if it exists,
was put to City
Power.
Without those basic starting
propositions in the papers, I cannot conclude that there is a
reasonable prospect in the main case
that City Power will be able to
demonstrate that the arbitrator decided the matter before him on a
point of law not put to the
parties. Mr Loopoo has not been briefed
on the merits of the main application and so could not help me,
through no fault of his
own. Mr Machaba, who is senior counsel and a
member of the Johannesburg Bar, would, consistently with his ethical
obligations,
tell me if I had missed something. But he cannot find
the legal point on City’s Power’s papers
either.
I now turn to City Power's second
argument in the main application, which is that the arbitrator
attached insufficient weight to
certain facts and circumstances, and
too much weight to others. There is also an allegation that the
arbitrator ignored a stated
case or ignored material parts of a
stated case placed before him and had inappropriate regard to the
pleadings that underlay that
stated case.
There is no basis on which any of
those criticisms, even if they were well-founded, could ground a
review of an arbitral award.
A gross irregularity for the
purposes of the
Arbitration Act must
be just that – “gross”.
A review under the
Arbitration Act is
not an administrative law
review, which deals with a fairly wide set of bases on which public
power may be controlled. And it is
certainly not an appeal in which a
party tries to convince the superior tribunal that factual or legal
findings were wrong.
Review under the
Arbitration Act deals
only with errors in procedure that are so gross as to have
constituted a denial of justice. The way an arbitrator chooses
to weigh up facts, and the facts to which he chooses to have regard,
will seldom ground the allegation that a gross irregularity
has been
committed.
On top of all of this, Mr Machaba
urged me to have regard to the fact that the review application is
itself time-barred. But he
accepted that I need not consider that
particular circumstance if I were to conclude that the review
application itself is stillborn.
On the papers before me I do
reach that conclusion. There are virtually no prospects of
success in the review application
and it follows that there can be
little real prejudice to City Power in the refusal of a
postponement.
For all of those reasons the
application for a postponement is refused, with costs, including the
costs of one senior counsel, which
may be taxed on scale “B”.
WILSON, J
JUDGE OF THE HIGH COURT
31 July 2025
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