Case Law[2023] ZAGPJHC 838South Africa
Consumer Goods Council of South Africa v Food Safety Agency (Pty) Ltd and Others (015445-2022) [2023] ZAGPJHC 838 (25 July 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
25 July 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Consumer Goods Council of South Africa v Food Safety Agency (Pty) Ltd and Others (015445-2022) [2023] ZAGPJHC 838 (25 July 2023)
Consumer Goods Council of South Africa v Food Safety Agency (Pty) Ltd and Others (015445-2022) [2023] ZAGPJHC 838 (25 July 2023)
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sino date 25 July 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE NUMBER:
015445-2022
In
the matter between:
CONSUMER
GOODS COUNCIL OF SOUTH AFRICA
Applicant
And
FOOD
SAFETY AGENCY (PTY) LTD
First
Respondent
THE
MINISTER OF THE DEPARTMENT OF LAND REFORM AND RURAL DEVELOPMENT
Second
Respondent
THE
RED MEAT INDUSTRY FORUM
Third
Respondent
JUDGMENT
Delivered:
This
judgment was handed down electronically by circulation to the
parties’ legal representatives by e-mail. The date and
time for
hand-down is deemed to be 10h00 on the 25th of July 2023.
DIPPENAAR J
:
[1]
This application concerns analogue meat products.
At issue is the extended return date of a rule nisi granted by Makume
J on 19
August 2022. The rule nisi was granted in the following
terms:
“
2.1
The first respondent and/or the second respondent are interdicted
from implementing the decision of seizure (issued by the first
respondent on 16 August 2022) (Decision)
2.2 The first
respondent and/or the second respondent are interdicted from seizing
any meat analog (sic) products presented
for sale in the Republic of
South Africa from any (and all) of the applicant’s members’
points of sale, whether at
facilities, retail or wholesale premises,
conveyancers or otherwise based on the Decision, or otherwise, on 22
August 2022 or any
other date;
2.3 That the orders in
2.1 and 2.2, operate on an interim basis pending:
2.3.1 the finalisation
of an appeal against the Decision, the applicant will institute in
terms of section 10 of the Agricultural
Products Standards Act, 119
of 1990 read with the Regulations Regarding Appeal Procedures (GN
R1260 of 2019 published in Government
Gazette 42726 of 27 September
2019), which are promulgated in terms of section 15 of the APS Act;
and/or
2.3.2 the finalisation
of a review against the Appeal Board’s decision; and / or
2.3.3 the finalisation
of a review of the Decision.”
[2]
Costs, including the costs of counsel, were
reserved.
[3]
The applicant is the Consumer Goods Council of
South Africa (“CGCSA”), a non-profit organization with
some nine thousand
members across South Africa, which provides
various services that
inter alia
include product labeling, advisory, regulatory
advice and advocacy, and engagement with government departments and
regulatory agencies.
[4]
The
first respondent, the Food Safety Agency (Pty) Ltd (“the FSA”)
, is an assignee appointed in terms of section 2
of the Agricultural
Product Standard Act
[1]
(“APS
Act”) to “
exercise
the powers and perform the duties that are conferred upon or assigned
to the executive officer by or under the APS Act
with regard to the
product.”
It
was designated in terms of Government Gazette 7 of 2017
to
enforce the quality regulations for poultry, meat and eggs, as well
as other meat and meat products, including processed meat
products
and is responsible for implementing the regulations regarding the
classification packaging and marketing of processed
meat products
intended for sale in the Republic of South Africa (published in GNR
1283 of 4 October 2019) (“The Processed
Meat Regulations.”)
[5]
The second respondent, in her representative capacity is the Minister
of the Department of Agriculture Land Reform and Rural
Development
(for ease of reference referred to as “the Department”).
The second respondent is the Minister as defined
in section 1 of the
APS Act.
[6]
Shortly before the initial return date of the rule
nisi on 17 November 2022, the third respondent, the Red Meat Industry
Forum (“RMIF”),
sought and obtained leave to intervene
and oppose the application.
[7]
The RMIF
is an incorporated voluntary
association of organisations, representing various groups in the red
meat industry. Its stated objectives
include the enhancement of the
red meat industries domestic and global competitiveness, the
stimulation of demand and consumer
confidence both in domestic and
export markets, by creating alliances with government and influencing
legislation trade and macro-economic
conditions to ensure sustained
viability and growth and maintenance and exploitation of the high
health status and genetic potential
of South African breeding herds.
[8]
The application is opposed by the Department and the RMIF. The FSA
did not participate in the proceedings and did not deliver
any
affidavits. This omission is significant, given that it was the
entity which issued the decision of seizure or “communique”
as described by the opposing respondents, issued on 16 August 2022,
forming the genesis of the current disputes. The FSA could
have given
clarity on many of the issues which arose in this application.
[9]
Pursuant to the granting of the order by Makume J, the CGCSA launched
review proceedings in this court during November 2022,
which remain
pending, in which the following substantive relief is sought:
- The second
respondent’s decision, dated 22 June 2022, prohibiting meat
analogue products from using naming conventions congruent
to those
used for processed meats, and authorising the seizure of any meat
analogue products which make use of congruent, or
similar naming
conventions as those used by processed meat products (initial
decision) be reviewed and set aside.
The second
respondent’s decision, dated 22 June 2022, prohibiting meat
analogue products from using naming conventions congruent
to those
used for processed meats, and authorising the seizure of any meat
analogue products which make use of congruent, or
similar naming
conventions as those used by processed meat products (initial
decision) be reviewed and set aside.
- The first
respondent’s decision dated 16th August 2022, made pursuant to
the initial decision, purporting to cease - without
a warrant - any
meat analogue products which make use of congruent, or similar
naming conventions as those used by processed
meat products. In
terms of Section 8 of the agricultural product standards act 119 of
1990 (subsequent decision be reviewed and
set aside) that
application was launched during November 2022. The respondents
in that application arethe respondentsin the present
application.
The first
respondent’s decision dated 16th August 2022, made pursuant to
the initial decision, purporting to cease - without
a warrant - any
meat analogue products which make use of congruent, or similar
naming conventions as those used by processed
meat products. In
terms of Section 8 of the agricultural product standards act 119 of
1990 (subsequent decision be reviewed and
set aside) that
application was launched during November 2022. The respondents
in that application are
the respondents
in the present
application.
[10]
The CGCSA sought confirmation of the rule nisi
pending the finalisation of the pending review proceedings, with a
slight attenuation
of the relief originally obtained, given the
developments which occurred thereafter. It contends that it is
necessary to protect
its members from the threatened actions of the
FSA which actions, if allowed, would cause them irreparable harm. Its
case was that
it has established the requirements for interim
interdictory relief.
[11]
The Department and the RMIF (collectively referred
to as “the respondents”, where appropriate) sought the
discharge
of the rule on the basis that the CGCSA had failed to
establish any of the requirements for an interim interdict. Their
central
contention was that there was no reviewable administrative
action taken by the FSA.
[12]
Subsequent to the hearing before Makume J, the
CGCSA had lodged an appeal in terms of s 10 of the APS Act. It was
advised that there
was no decision to be appealed against as the
letter of 16 August 2022 was a communique and not a decision and that
the seizure
decision had been torpedoed by the interdict. It was
further informed that it was the decision of the Director General not
to constitute
an appeal board as it was impossible to do so. In light
of those developments, the relief in paragraphs 2.3.1 and 2.3.2 of
the
order of Makume J effectively fell away.
[13]
Prior to dealing with the merits, it is apposite
to deal with two procedural issues. First, the Department sought
condonation for
the late delivery of its answering affidavit, which
was only delivered after the hearing before Makume J on 19 August
2022. There
was no opposition thereto and I am satisfied that a
proper case for condonation has been made out. Such an order will be
granted.
[14]
Second, the CGCSA launched a striking out
application to strike out the following portions of the RMIF’s
answering affidavit:
(i) paragraphs 33.2, 33.3 and 50 to 57 on the
basis that they are irrelevant; (ii) paragraphs 63 to 67.2 on the
basis that they
are irrelevant and argumentative; (iii) paragraphs 73
to 87 on the basis that they are irrelevant and argumentative and
contain
inadmissible hearsay evidence in the form of annexures RMIF6
and RMIF 7; (iv) paragraphs 94 to 108 on the basis that they are
irrelevant,
argumentative and contain inadmissible hearsay evidence
in the form of annexure RMIF9; (v) paragraphs 109 to 116 on the basis
that
they are irrelevant and argumentative and (vi) paragraphs 126
and 127 on the basis that they are scandalous and defamatory.
[15]
The RMIF conceded to the striking out of
paragraphs 33.2, 50, 51.2, 63, 64, 66, 94 and 95 of its answering
affidavit. It argued
that the various academic articles dealt with in
and attached to its answering affidavit were not irrelevant or
inadmissible as
both the Constitutional Court and the Supreme Court
of Appeal have frequently made reference to these types of documents.
Various
cases were cited where our courts took account of reports of
an academic nature. It was further argued that to the extent that the
material complained of constitutes hearsay evidence, it fell within
the exception to the hearsay rule as provided for in the Law
of
Evidence Amendment Act of 1998. Reliance was placed on s 3(1)(c) and
s 4 of that Act.
[16]
Striking
out applications are regulated by r 6(15). Two requirements must be
satisfied before such an application can succeed. The
first, that the
matter sought to be struck out must be scandalous, vexatious or
irrelevant. The second, that the party seeking
relief would be
prejudiced if the matter is not struck out
[2]
.
Prejudice is the decisive factor
[3]
.
[17]
The
overriding consideration is prejudice. That is dispositive of the
application. I agree with the argument advanced by the RMIF
that the
CGCSA has failed to establish prejudice as the court is only seized
with establishing whether it has established the requirements
for an
interim interdict. Prejudice in this context is limited to procedural
prejudice
[4]
.
[18]
The high water mark of the CGCSA’s complaint
was that the offending paragraphs have rendered the papers
unnecessarily prolix
and contain irrelevant matter to the relevant
issues, thus obfuscating the true issues. Whilst this may be correct
and there is
merit in the objections raised, the relevance of the
allegations in the various paragraphs fall to be considered in
relation to
the merits of the application. The CGCSA had the
opportunity to respond to the RMIF’s allegations in its
answering affidavit
and did so.
[19]
Considering all the relevant principles, I am not
persuaded that the CGCSA has established such prejudice as would
warrant the striking
of the offending paragraphs. It follows that the
application must fail, save for the paragraphs conceded by the RMIF.
[20]
Given that the RMIF had conceded the striking of
certain paragraphs, it would be appropriate to direct each of the
parties to be
liable for their own costs. No costs order will thus be
made in relation to the striking out application.
[21]
The Department challenged whether the CGCSA was
authorised to represent all of its members in the application,
although a list of
members was subsequently provided. It further
challenged CGCSA’s
bona fides
in bringing the application on an urgent basis and
complained that it sought to extend the rule nisi for an indefinite
period as
the review proceedings have ground to a halt due to
inaction on the part of the CGCSA.
[22]
For present purposes it may be
prima
facie
accepted that the CGCSA is
authorised to represent its members. The urgency of the application
is at this stage of academic interest
only. Makume J accepted that
the application was urgent and granted an order. The review
proceedings remain pending and the respective
parties have remedies
at their disposal to ensure the expeditious disposal of those
proceedings.
[23]
The Department’s case in sum was that the
requirements for an interim interdict have not been met. It argued
that the extension
of the rule nisi pending the further steps it
intends to take prejudices it and allows the members of the CGCSA to
contravene s
11 of the APS Act and the decision of 22 June 2022,
whilst its members continue plying its wares which are not regulated
in terms
of quality, compositional standards and marking requirements
and which are using product names reserved for processed meat
products.
It argued that the FSA’s letter of 16 August 2022 was
not a decision but a communique, which does not have any force of law
and is not a regulatory instrument. It contended that the FSA only
has the powers conferred by the Act and that the regulations
do not
apply to meat analogue products.
[24]
The RMIF aligned itself with the stance adopted by
the Department. In sum, its case was aimed at the averment that
members of CGCSA
produce and sell a number of products that attempt
to mimic the taste, texture and appearance of actual meat products
and seek
to appropriate the names and descriptions traditionally
associated with the actual meat products they try to emulate. It
focused
on the conduct of the members of CGCSA being a contravention
of s 11 of the APS Act to use offending product names which are
prescribed
or reserved for processed meat products in the sale of
analogue meat products.
[25]
The
CGCSA sought interim interdictory relief. It is well established
[5]
that the principles in
Webster
v Mitchell
[6]
apply. It is not necessary to repeat them. The requirements for
interim interdictory relief are trite
[7]
.
They are: (i) a
prima
facie
right,
although open to some doubt; (ii) an injury actually committed or
reasonably apprehended; (iii) a favourable balance of convenience;
and (iv) the absence of any other satisfactory remedy available to
the applicant.
Has the CGCSA
illustrated a prima facie right?
[26]
The genesis of the application lies in a letter
from the FSA, dated
16 August 2022, addressed to processors,
importers and retailers of analogue meat products. In relevant part
it provides:
“
Dear Sir Madam
RE: SEIZURE OF MEAT
ANALOGUE PRODUCTS PRESENTED FOR SALE IN THE REPUBLIC OF SOUTH AFRICA
- Our email
correspondence dated 24 June 2022 has reference;
Our email
correspondence dated 24 June 2022 has reference;
- As of Monday 22
August 2022, the Food Safety Agency (Pty) limited will seize any
meat analogue products presented for sale in
the Republic of South
Africa, which are using the product names prescribed for processed
meat products in terms of Section 8
of the Agricultural Product
Standard Act 119 of 1990 (the ACT) close at all points of sale, i.e.
facilities, premises (retail
and wholesale), conveyancers, etc.”
As of Monday 22
August 2022, the Food Safety Agency (Pty) limited will seize any
meat analogue products presented for sale in
the Republic of South
Africa, which are using the product names prescribed for processed
meat products in terms of Section 8
of the Agricultural Product
Standard Act 119 of 1990 (the ACT) close at all points of sale, i.e.
facilities, premises (retail
and wholesale), conveyancers, etc.”
[27]
The covering email of 24 June 2022 attaching the 22 June 2022
directive provides:
“
Please
find attached to communique about the Department of Agriculture Land
Reform and Rural Development's stance on meat analogues
using the
product name (is) prescribed or reserved for processed meat products.
Hope you will receive the communique in good order
and you are
welcome to contact this office should you need any clarification in
this regard.”
[28]
The communique dated 22 June 2022 emanated from the Executive Officer
for Agricultural Product Standards on behalf of the Department
of
Agriculture, Land Reform and Rural Development. In relevant part it
provides:
“
FOR
ATTENTION:
ALL PROCESSES
IMPORTERS AND RETAILERS OF MEAT ANALOGUES
ILLICIT USE OF THE
PRODUCT NAMES IN RESPECTIVE NAMES EXCLUSIVELY PRESCRIBED FOR
PROCESSED MEAT PRODUCTS
1.
It has come to the
Department of Agriculture Land Reform and Rural Development's
(DALRRD) attention that various meat analogues
are currently
presented for sell on the local market using the product names
prescribed for processed meat products. These product
names include
descriptions such as for example, “Vegan Veggie Biltong”,
“Mushroom Biltong, “Plant based
Meatballs”, “Vegan
Nuggets, “Vegan BBQ Ribs”, “Plant based Bratwurst”,
“Chorizo and Red
Pepper Vegetarian Sausages”,
“Plant-based Chicken-Style Strips, etc.
2.
The classification,
packing and marking of processed meat products intended for sale in
the Republic of South Africa are currently
regulated in terms of
regulation number R1283 dated for 4 October 2019.
3.
In terms of
the said regulation, “
processed meat”
is defined as meat that has undergone any action that
substantially altered its original state (including, but not limited
to, heating,
smoking, curing, fermenting, maturing, drying,
marinating, (surface application), extraction or extrusion or any
combination of
all these processes), but excludes raw processed meat.
4.
Meat analogues must
not use the product names prescribed and reserved for processed meat
products since the scope of the above mentioned
regulation does not
include meat analogues.
5.
The assignee
designated for the inspection of processed meat products, namely the
Food Safety Agency (Pty) Ltd, will in terms of
Section 8 (“Seizures”)
of the Agricultural Product Standards Act 119 of 1990 (“the APS
Act”) seize any
meat analogue products using the product names
prescribed for product processed meat products.
6.
In terms of Section
11 of the APS act, it is an offence to use product names that are
prescribed or reserved for processed meat
in the sale of meat
analogues.”
[29]
In a further email of 24 June 2022, the FSA addressed stakeholders,
stating in relevant part the following:
“
1.
The
matter mentioned above in the email correspondence received from Mr.
Makafola on the 24th of June 2022 has reference.
2. The seizure of meat
analogue products using product names prescribed for processed meat
products will be delayed with 30 (thirty)
business days from today 24
June 2022.
- During the upcoming
30 business days, Food Safety Agency (Pty) Ltd will conduct an
extensive market survey (environmental scan)
to determine how
widespread the sale of meat analogue products using the names
prescribed for processed meats products is this
meat. Food Safety
Agency (Pty) Ltd will provide the DALRRD with feedback on the
outcome of the survey within the said period.
During the upcoming
30 business days, Food Safety Agency (Pty) Ltd will conduct an
extensive market survey (environmental scan)
to determine how
widespread the sale of meat analogue products using the names
prescribed for processed meats products is this
meat. Food Safety
Agency (Pty) Ltd will provide the DALRRD with feedback on the
outcome of the survey within the said period.
- In the meantime,
inspectors of the Food Safety Agency (Pty) Ltd will proceed with the
issuing of directions for meat analogue
products using product names
prescribed for product meat products in R1283 dated 4 October 2019.
The directions issued will allow
for a grace period of 30 business
days to rectify the incorrect product names/descriptions used on the
meat analogue products
presented for sale.”
In the meantime,
inspectors of the Food Safety Agency (Pty) Ltd will proceed with the
issuing of directions for meat analogue
products using product names
prescribed for product meat products in R1283 dated 4 October 2019.
The directions issued will allow
for a grace period of 30 business
days to rectify the incorrect product names/descriptions used on the
meat analogue products
presented for sale.”
[30]
The letter of 16 August 2022 formed the central
focus of the founding papers. As stated, the respondents contended
that the 16 August
2022 letter was simply a communique and not a
decision, but represented a plan towards the decision taken on 22
June 2022. The
RMIF argues that the 16 August 2022 letter did not
constitute a decision and cannot be classified as administrative
action which
could found an application for review and thus that the
CGCSA faltered at the hurdle of proving a
prima
facie
case. It argued that the fact
that the CGCSA has sought in the review application to make out a
case for the review of the Department’s
22 June 2022 decision,
was irrelevant for purposes of evaluating the CGCSA’s
application for interim relief here as it was
not geared at affording
interim relief pending a review of the 22 June 2022 instruction.
[31]
Whilst the FSA referred to the 16 August 2022
letter as
a communique and not as a directive, the FSA chose
not to participate in the proceedings or explain its own
correspondence. The
interpretation of the said letter by other
parties is of little assistance.
Given that the
relief sought in the review proceedings pertains to both, it is an
issue which should be left for the review court
to determine. I do
not agree with the RMIF’s argument that the CGCSA pinned its
colours to the mast in the present application
by only relying on the
16 August 2022 letter which it sought to take on review. In my view,
to ignore the fact that the review
proceedings launched by the CGCSA
goes wider and also includes the decision of 22 June 2022, would be
to adopt an overly technical
and myopic approach, more so as a review
of the 22 June 2022 decision was raised in the application papers. It
is trite that whilst
a party is constrained to make out its case in
the founding papers, it may elaborate on its case in reply.
[32]
It is
undisputed that the FSA is obliged to act within the parameters of
the authority as delegated in terms of the APS Act, subject
to
ministerial control and that the essence of the rule of law is that
all administrative authorities must exercise their powers
within the
confines of the law
[8]
.
[33]
It can
further be concluded that at least on a
prima
facie
basis
the decisions here in issue amount to reviewable administrative
action and that the review should be allowed to proceed
[9]
,
despite the respondents’ arguments to the contrary. On a
prima
facie
basis,
it can thus not be concluded, as the respondents contend, that the
review proceedings are incompetent.
[34]
I am
mindful not to pre-determine the issues which will be considered by
the court hearing the review application. I intend to adopt
the
approach of Malan J in
Johannesburg
Municipal Pension Fund
[10]
in considering whether the applicant has illustrated a
prima
facie
right
although open to some doubt. It is only necessary for the applicant
to illustrate a prospect of success in the pending review
application
to meet that threshold.
[35]
In relation to its
prima
facie
right, the CGCSA’s case was
that both the 22 June Directive and the 16 August 2022 decision were
without proper foundation,
ultra vires
and improper, rendering the proposed action
pursuant thereto unlawful. It contended that the FSA has no authority
over meat analogue
products and it may only exercise specific powers
in respect of processed meat products under s 2(3)(b)(i) of the APS
Act.
[36]
Its case was that processed meat regulations do
not apply to meat analogue products or non-meat based products that
in general appearance,
presentation and intended use correspond to
processed meat products (e.g. vegan or vegetarian processed products)
under regulation
2 (2)(c). It contends there is no assignee in
respect of meat analogue products in respect of which it is common
cause that no
regulations in terms of the APS Act apply to analogue
meat products. Its case was that there are no prescribed or reserved
names
for processed meat products and no distinctive marks have been
prescribed or reserved under s 5(1) of the APS Act.
[37]
It argued that s 6 of the APS Act does not apply
and neither the FSA or the Department relied on s 6 to justify the
seizures. Before
a seizure pursuant to ss 7 and 8 of the APS Act can
be contemplated an analysis of the specific product is required to
ascertain
whether the provisions of s 6 have been contravened in a
manner which constitutes an offence in terms of the APS Act. It was
argued
that no evidence was presented demonstrating any contravention
by the creation of any false or misleading impressions regarding
meat
analogue products. Lastly, the CGCSA argued s 11(1)(a) of the APS Act
does not apply, given that no distinctive marks have
been created in
respect of processed meat products under s 5(2) of the APS Act.
[38]
In disputing that the CGCSA had illustrated a
prima facie entitlement to relief, the respondents relied on a
particular statutory
interpretation of s 6 of the APS Act which deals
with a prohibition on false and misleading descriptions of products
as defined
in the APS Act. It was argued that the FSA has the power
to issue directives also for analogue meat products, aimed at
enforcing
sections 6 and 11 of the APS Act.
[39]
It was common cause that the FSA is the appointed
assignee in respect of processed meat products in terms of s 1 read
with s 2(3)
of the APS Act. It was further not disputed on the papers
that there are no regulations governing meat analogue products and
that
the APS Act contains a prohibition on the blanket seizure of
regulated products and that the requirements of ss 7 and 8 must be
complied with.
[40]
The interpretation of s 6 of the APS Act is
central to the dispute between the parties. I am mindful that
the proper interpretation
of s 6 of the APS will be a central feature
in the pending review proceedings.
[41]
The
RMIF further contended that the CGCSA was attempting to interdict the
exercise of a statutory power. Relying on
OUTA
[11]
,
it
was argued that courts grant temporary restraining orders against the
exercise of statutory power only in exceptional cases and
when a
strong case for such relief has been made out.
[42]
I am not persuaded that this argument assists the
RMIF at this stage, given that it is the very existence of the
statutory powers
of the FSA which is at the centre of the dispute
between the parties and which forms the subject matter of the pending
review application.
[43]
It was common cause between the parties that
neither the Department nor the FSA, being the party to affect
seizures, may effect
any seizures in the absence of having either
obtained a warrant or having complied with s 7(5) of the APS Act. It
was not contended
that a warrant had been obtained or that s 7(5) of
the APS Act has been complied with. It is not disputed that the FSA
had not
applied for nor obtained warrants in order to proceed with
its intended seizures.
[44]
In its
opposing papers, the RMIF further raised five proposed broad
alternative grounds for holding that the FSA is entitled to
seize
meat analogue products. They are that members of the CGCSA have
contravened the sausage regulations
[12]
and the
Consumer Protection Act 68 of 2008
. It was further contended
that there was an alleged infringement of the constitutional rights
of consumers, specifically illiterate
consumers, that meat analogue
products could be super allergens and that there is a lack of amino
acids and vitamin B12 in meat
analogue products. These matters raise
self-standing issues which are not specifically germane to whether
the CGCSA has illustrated
any
prima
facie
right
to relief. Insofar as those issues are relevant to the review
proceedings, they are properly to be determined in those proceedings
and it is not for present purposes necessary to express any views on
these issues.
[45]
Considering all the facts and the issues raised, I
am persuaded that there is a prospect of success and a serious issue
to be tried
in the review application. The central disputes between
the parties pertain to the proper statutory interpretation of various
of
the provisions of the APS Act and other statutes and the
applicability of the various authorities relied on by the respective
parties.
[46]
It
cannot be concluded that the applicant’s claim is frivolous or
vexatious. I am persuaded that the CGCSA has illustrated
some
prospects of success in the review proceedings in due course
[13]
,
given the statutory provisions relied on by it and the absence of
meat analogue specific regulations and in the absence of prescription
or reservation of names for processed meat.
[47]
On this basis the CGCSA has illustrated, at least
on a
prima facie
basis
that it has the right not to have analogue meat products unilaterally
seized. I conclude that the CGCSA has established a
prima facie right
to the relief sought, although open to some doubt.
An injury actually
committed or reasonably apprehended
[48]
Turning
to the risk of irreparable harm, if the right is only
prima
facie
established, the CGCSA must
establish a well-grounded apprehension of irreparable harm if the
interim relief is not granted and
it ultimately succeeds in
establishing its right.
[49]
The
respondents argued that the CGCSA had not illustrated any risk of
irreparable harm as it had not set out any specific instance
where
any of its members specifically faced irreparable harm because no
administrative action has been taken. It argued that such
harm could
only materialise when a directive is issued to a specific member. As
there was no indication that the FSA sought to
bypass s 8 of the APS
Act, due process would be followed at all times and any specific
member would be afforded 30 days to query
the process and institute
an internal appeal.
[50]
The
silence on the part of the FSA on this issue is significant and the
respondents’ arguments are based on inferences and
conclusions,
rather than on primary facts.
[51]
It
was further argued by the respondents that any alleged harm that may
be suffered is self-created, given that the members of the
CGCSA knew
that their products were non-compliant.
[52]
This
argument does not pass muster as it places the cart before the horse
and pre-determines the issues which will be determined
in the review
application, given that the RMIF contends for a continued
contravention of the APS Act and the processed meat regulations,
whereas the CGCSA adopts a conflicting approach. These issues form
the very nub of the disputes between the parties which will
be
determined in the review.
[53]
It
is well established that harm must be ongoing
[14]
and
does not equate solely to financial loss but would also include an
irremediable breach of rights
[15]
.
Were perishable goods to be seized from all intended points,
there is in my view a risk of real and irreparable financial
harm. I
further agree with the CGCSA that if the seizures would not be
interdicted it would effectively render the pending review
application moot and may prematurely pre-determine the issues
relating to the naming conventions for meat analogue products.
[54]
I
am fortified in this view by the RMIF’s argument that the CGCSA
and its members could avoid seizure of their products by
complying
and changing the naming and packaging of their products. That of
itself would render the pending review application moot.
Even if all
actions to be taken by the FSA are to be strictly in accordance with
the APS Act, as argued by the RMIF, that does
not alleviate the risk
of ongoing harm which presently exists.
[55]
The
RMIF’s sentiment is supported by the Department’s
argument that CGCSA has not suffered irreparable harm as it has
had
10 months to ensure that its products complied with the 22 June 2022
directive and to rename their products. It further argued
that
whatever products the members of CGCSA had would in all probability
have been sold.
[56]
These
arguments disregard that the validity of that directive and the
applicability of the statutory provisions relied on have been
challenged in the pending review application.
[57]
Considering
all the facts, I am persuaded that the CGCSA has established the risk
of irreparable harm to it and its members, were
the relief sought not
to be granted and if all analogue meat products were seized, is
manifest and self- evident.
Balance of convenience
[58]
In
an application for an interim interdict, the balance of convenience
is often the decisive factor, given that it is a discretionary
remedy
[16]
. In considering the
balance of convenience, the prejudice to the CGCSA and its members if
relief is refused must be weighed against
the prejudice to the
respondents if it is granted. In considering such balance, the
principles enunciated in
Olympic
Passenger Services
[17]
must be applied
[18]
.
[59]
In its papers, the CGCSA had set out the manifest
prejudice which its members would suffer. The Department on the other
hand has
not set out any facts which can justify a conclusion that
prejudice will be suffered were the interim relief to be granted. The
Department’s argument is predicated on the attempts to enforce
the APS Act and the contention that CGCSA has not indicated
what it
has done to comply with the 22 June 2022 directive.
[60]
The RMIF’s arguments argument disregard that
whether there is any intrusion on any party’s constitutional
right is the
one of the very issues which must be considered in the
review proceedings. It cannot presently be concluded that there would
be
a breach of any of the rights warranted by the Bill of Rights,
were the interdict to be granted.
[61]
Inasmuch as there may be financial prejudice to
the RMIF as contended for, such prejudice would not outweigh the
prejudice to be
suffered by the CGCSA and its members, were interim
relief granted pending the determination of the review application.
Whether
there is an improper use of offending product names and
confusion, as contended by the RMIF, is not an issue to be determined
in
the present application.
[62]
I conclude, applying the relevant principles, that
the balance of convenience favours the granting of relief.
Does the CGCSA have an
alternative suitable remedy?
[63]
It was argued that it and its members could simply
change the product names, desist from using offending product names
and comply
with the 22 June 2022 directive. That is however not a
legal remedy and, as previously stated, would render the pending
review
application moot. Reliance was further placed on the appeal
process being an internal remedy that should have been pursued.
However,
as already stated, CGCSA sought to pursue such remedy but
was advised that no appeal board would be constituted.
[64]
I am persuaded on the facts that the CGCSA and its
members have no alternative remedy available pending the
determination of the
review application.
Conclusion and costs
[65]
For these reasons, I conclude that the rule nisi
granted on 19 August 2022 should be confirmed, with the slight
attenuations suggested
by the CGCSA. There is no reason to deviate
from the normal principle that costs follow the result. Considering
the issues raised,
the employment of two counsel was justified. I am
further persuaded that the costs order should include the reserved
costs in terms
of the order of 19 August 2022.
[66]
I grant the following order:
[1] Condonation is
granted for the late delivery of the second respondent’s
answering affidavit.
[2] Paragraphs 33.2, 50,
51.2, 63, 64, 66, 94 and 95 of the third respondent’s answering
affidavit are struck out;
[3]
Pending the final determination of the review
proceedings pending under case number 47072/2022 (“the review
proceedings”):
[3.1] The first and
second respondents are interdicted from implementing the decision of
seizure (issued by the first respondent
on 16 August 2022) (“the
decision”);
[3.2] The first and
second respondents are interdicted from seizing any meat analogue
products presented for sale in the Republic
of South Africa from any
(and all) of the applicant’s members’ points of sale,
whether at facilities, retail or wholesale
premises, conveyancers or
otherwise, based on the decision, on 22 August 2022 or any other
date;
[4] The second and third
respondents are directed to jointly pay the costs of the application,
including the costs of two counsel,
including the reserved costs.
EF DIPPENAAR
JUDGE OF THE HIGH
COURT JOHANNESBURG
APPEARANCES
DATE
OF HEARING
: 12 May 2023
DATE
OF JUDGMENT
: 25 July 2023
APPLICANT’S
COUNSEL
:
Adv.
H Loots SC, Adv. A Laher
APPLICANT’S
ATTORNEYS
:
Clyde
& Co.
SECOND
RESPONDENT’S COUNSEL
:
Adv.
JL Khan
SECOND
RESPONDENT’S ATTORNEYS
:
State
Attorney Johannesburg
THIRD
RESPONDENT’S COUNSEL
:
Adv.
H. Epstein SC , Adv. M. Mostert , Adv. T. Kgomo
THIRD
RESPONDENT’S ATTORNEYS
:
Fairbridges
Wertheim Becker substituted on 31 May 2023 by Malatji & Co
Attorneys
[1]
119 of 1990
[2]
Maharaj & Others v Mondag Centre of Investigative Journalism NPC
& Others
2018 (1) SA 471
(SCA) para [14]; Titty’s Bar and
Bottle Store (Pty) Ltd v ABC Garage (Pty) Ltd and Others
1974 (4) SA
362
(T) at 368F-G
[3]
Beinash v Wixley
[1997] ZASCA 32
;
1997 (3) SA 721
(SCA) at 732-734
[4]
S v Ndhlovu and Others 2002 (2) SACR 325 (SCA)
[5]
Eskom Holdings SOC Ltd v Lekwa Ratepayers Association NPC and Others
and a Similar Matter
2022 (4) SA 78
(SCA) para [21]
[6]
1948 (1) SA 1186
(W) 1189 refined in Gool v Minister of Justice
1955
(2) SA 682
(C) at 688D-E
[7]
Setlogelo v Setlogelo 1914 AD 221
[8]
Van Zyl (Edms) Bpk t/a ZZZ and Others v Minister of Agriculture,
Forestry, Fisheries and Others (45144/2017) [2020] ZAGPPHC 283
(24
June 2020) par [51]
[9]
Bertie van Zyl (Pty) ltd v Minister of Agriculture, Forestry and
Fisheries 2021 JDR 1544 (SCA) par [22]
[10]
Johannesburg Municipal Pension Fund and Others v City of
Johannesburg
2005 (6) SA 273
(W) at 281-282
[11]
National Treasury and Others v Opposition to Urban Tolling Alliance
and Others
2012 (6) SA 223
(CC) paras [44]-[47]
[12]
Which was later jettisoned
[13]
Eskom Holdings fn 2 above and the authorities cited therein
[14]
Tshwane City v Afriforum
2016 (6) SA 279
(CC) para [55]
[15]
Braham v Wood
1956 (1) SA 651
(N) at 655
[16]
Erikson Motors (Welkom) Ltd v Protea Motors, Warrenton & Another
1973 (3) SA 685 (A)
[17]
Olympic Passenger Services v Ramlagan
1957 (2) SA 382
(D) 383F;
Cipla Nedpro (Pty) Ltd v Aventis Pharma SA
2013 (4) SA 579
(SCA)
para [40].
[18]
LF Bosshoff Investments (Pty) Ltd v Cape Town Municipality
1969 (2)
SA 256
(C) at 267A-F
sino noindex
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