Chantecler Hotel v Singaram and Others (D1134/10) [2011] ZALCD 46 (7 February 2011)

Chantecler Hotel v Singaram and Others (D1134/10) [2011] ZALCD 46 (7 February 2011)

The Court found that there was no evidence of fraud or improper conduct in the use of different employer names and that the circumstances did not justify piercing the corporate veil. The award was issued against Mr Gram, not the applicant, and the first respondent should have sought to execute against Mr Gram or amend the award to cite the true employer. As there was no basis for lifting the corporate veil, the application was dismissed.

Citation
[2011] ZALCD 46
Parties
Applicant: Chantecler Hotel; Respondent: Johnny Singaram; Respondent: The Sheriff, Pinetown; Respondent: Standard Bank
Court
Labour Court Durban
Jurisdiction
South Africa
Judgment Date
7 February 2011
Case Number
D1134/10
Procedural Posture
Urgent Application / Application for Confirmation of Rule Nisi
Outcome
Application dismissed; rule nisi confirmed; costs awarded against first respondent.
Judges
Cele
Legal Topics
Corporate Veil, Joinder of Parties, Arbitration Award Execution, Unfair Dismissal
Labour Law Civil Procedure Corporate Veil Joinder of Parties Arbitration Award Execution Unfair Dismissal

Case Brief

Summary, issues, holding and outcome

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Parties

Chantecler Hotel

Applicant

Johnny Singaram

Respondent

The Sheriff, Pinetown

Respondent

Standard Bank

Respondent

Procedural Posture

Urgent Application / Application for Confirmation of Rule Nisi

Legal Issues

  1. 1 Whether the corporate veil should be pierced to allow execution against the applicant's bank account for an award issued against an individual.
  2. 2 Whether the first respondent should have sought joinder or amendment of the award to cite the correct employer.
  3. 3 Whether the use of different employer names constituted improper conduct justifying piercing the corporate veil.

Ratio Decidendi

The Court found that there was no evidence of fraud or improper conduct in the use of different employer names and that the circumstances did not justify piercing the corporate veil. The award was issued against Mr Gram, not the applicant, and the first respondent should have sought to execute against Mr Gram or amend the award to cite the true employer. As there was no basis for lifting the corporate veil, the application was dismissed.

Court Disposition

Application dismissed; rule nisi confirmed; costs awarded against first respondent.

Orders

  • The rule nisi is confirmed.
  • The first respondent is ordered to pay costs on attorney and client scale.