Astral Foods Limited and National Chick Limited (2) (69/AM/Dec01) [2003] ZACT 8 (20 February 2003)

Astral Foods Limited and National Chick Limited (2) (69/AM/Dec01) [2003] ZACT 8 (20 February 2003)

The Tribunal held that both section 66 and section 53 of the Competition Act permit intervention by parties affected by an order, even if they were not participants in the original merger hearing. The Tribunal rejected Astral's narrow interpretation of section 66, finding that procedural fairness requires that any party materially affected by a proposed variation be given an opportunity to be heard. The Tribunal further held that the applicants demonstrated a direct and substantial interest in the outcome of the variation application, as the interpretation of the order would significantly affect their contractual rights. The applicants were therefore granted leave to intervene, with the...

Citation
[2003] ZACT 8
Parties
Applicant: Astral Foods Limited; Applicant: National Chick Limited; Respondent: Daybreak; Respondent: Mike's
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 February 2003
Case Number
69/AM/Dec01
Procedural Posture
Variation Application / Intervention Application Prior to Variation Hearing
Outcome
Applicants granted leave to intervene in the variation application, with costs awarded in their favour.
Judges
N. Manoim, D. Lewis, P. E. Maponya
Legal Topics
Merger Variation, Standing to Intervene, Vertical Restrictions, Contractual Obligations
Competition Law Commercial and Corporate Merger Variation Standing to Intervene Vertical Restrictions Contractual Obligations

Case Brief

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Parties

Astral Foods Limited

Applicant

National Chick Limited

Applicant

Daybreak

Respondent

Mike's

Respondent

Procedural Posture

Variation Application / Intervention Application Prior to Variation Hearing

Legal Issues

  1. 1 Whether parties not involved in the original merger hearing may intervene in a subsequent variation application.
  2. 2 Whether section 66 of the Competition Act permits intervention by affected parties.
  3. 3 Whether section 53 of the Competition Act applies to variation proceedings.

Ratio Decidendi

The Tribunal held that both section 66 and section 53 of the Competition Act permit intervention by parties affected by an order, even if they were not participants in the original merger hearing. The Tribunal rejected Astral's narrow interpretation of section 66, finding that procedural fairness requires that any party materially affected by a proposed variation be given an opportunity to be heard. The Tribunal further held that the applicants demonstrated a direct and substantial interest in the outcome of the variation application, as the interpretation of the order would significantly affect their contractual rights. The applicants were therefore granted leave to intervene, with the...

Court Disposition

Applicants granted leave to intervene in the variation application, with costs awarded in their favour.

Orders

  • The applicants are granted leave to intervene in the variation application brought by Astral Foods Limited under section 66(1)(b) of the Competition Act.
  • The applicants will have the same rights as a respondent in application proceedings to oppose the variation application.