B & B Markets rooftop (Pty) Ltd v Hyprop Investments Limited (30423/2013) [2014] ZAGPJHC 62 (20 March 2014)

B & B Markets rooftop (Pty) Ltd v Hyprop Investments Limited (30423/2013) [2014] ZAGPJHC 62 (20 March 2014)

The court held that the appeal tribunal did not exceed its jurisdiction or powers. The real issue for determination was the validity of the cancellation of the lease agreement, which was fully canvassed before the tribunal. The powers of the tribunal, as agreed by the parties, were equivalent to those of an appeal court, allowing it to make any order required by the circumstances. The tribunal's award declaring the cancellation of the lease agreement to be of no force or effect was within its mandate. There was no misconduct under s 33(1) of the Arbitration Act, and the award was valid.

Citation
[2014] ZAGPJHC 62
Parties
Applicant: B & B Markets Rooftop (Pty) Ltd; Respondent: Hyprop Investments Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
20 March 2014
Case Number
30423/2013
Procedural Posture
Urgent Application / Application to Make Arbitration Award an Order of Court
Outcome
Application granted. The appeal tribunal's award is made an order of court.
Judges
M Tsoka
Legal Topics
Arbitration Award Enforcement, Arbitrator Jurisdiction, Lease Cancellation, Powers of Appeal Tribunal
Civil Procedure Commercial and Corporate Arbitration Award Enforcement Arbitrator Jurisdiction Lease Cancellation Powers of Appeal Tribunal

Case Brief

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Parties

B & B Markets Rooftop (Pty) Ltd

Applicant

Hyprop Investments Limited

Respondent

Procedural Posture

Urgent Application / Application to Make Arbitration Award an Order of Court

Legal Issues

  1. 1 Whether the appeal tribunal exceeded its jurisdiction and powers under the arbitration agreement.
  2. 2 Whether the appeal award is invalid due to alleged misconduct by the arbitrators under s 33(1) of the Arbitration Act.
  3. 3 Whether the appeal tribunal could grant relief not specifically prayed for in the notice of motion.

Ratio Decidendi

The court held that the appeal tribunal did not exceed its jurisdiction or powers. The real issue for determination was the validity of the cancellation of the lease agreement, which was fully canvassed before the tribunal. The powers of the tribunal, as agreed by the parties, were equivalent to those of an appeal court, allowing it to make any order required by the circumstances. The tribunal's award declaring the cancellation of the lease agreement to be of no force or effect was within its mandate. There was no misconduct under s 33(1) of the Arbitration Act, and the award was valid.

Court Disposition

Application granted. The appeal tribunal's award is made an order of court.

Orders

  • The appeal award of the tribunal dated 30 June 2013 is made an order of court.
  • Hyprop Investments Limited is ordered to pay the costs of the application, including the costs consequent upon the employment of two counsel.