Dekra Automotive v Mahlatji and Others (J 274/2023) [2023] ZALCJHB 36 (8 March 2023)
The court found that the application was urgent, as the applicant acted promptly upon learning that the sheriff would not retain the funds absent a court order. The substantive issue was the fate of the security held by the sheriff. The court determined that the interests of both parties would be best served by...
Source-derived case information.
- Citation
- [2023] ZALCJHB 36
- Parties
- Applicant: Dekra Automotive; Respondent: Wilson Mahlatji; Respondent: Commissioner Xolani Nyamezele; Respondent: Commissioner Julius Molefe; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Sheriff of Johannesburg South
- Court
- Labour Court Johannesburg
- Jurisdiction
- South Africa
- Case Number
- J 274/2023
- Procedural Posture
- Stay Application / Application for Stay of Execution Pending Review
- Outcome
- Application granted. The sheriff is directed to release the funds to the applicant, who must furnish security within 24 hours. No order as to costs.
- Judges
- Van Niekerk
- Legal Topics
- Stay of Execution, Arbitration Award, Security for Review, Urgency, Costs Order
Source-derived case record
Summary, issues, holding and outcome
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Parties
Dekra Automotive
Applicant
Wilson Mahlatji
Respondent
Commissioner Xolani Nyamezele
Respondent
Commissioner Julius Molefe
Respondent
Commission for Conciliation, Mediation and Arbitration
Respondent
Sheriff of Johannesburg South
Respondent
Procedural Posture
Stay Application / Application for Stay of Execution Pending Review
Legal Issues
- 1 Whether the application to stay execution of the arbitration award is urgent.
- 2 What should be done with the security funds held by the sheriff pending review.
- 3 Whether the applicant should furnish security in terms of section 145 of the LRA.
Ratio Decidendi
The court found that the application was urgent, as the applicant acted promptly upon learning that the sheriff would not retain the funds absent a court order. The substantive issue was the fate of the security held by the sheriff. The court determined that the interests of both parties would be best served by ordering the sheriff to release the funds to the applicant, who would then be required to furnish security in the sum and form required by section 145(7) and (8) of the LRA within 24 hours of receipt. The court declined to award costs, finding that the requirements of law and fairness were best served by each party bearing its own costs.
Court Disposition
Application granted. The sheriff is directed to release the funds to the applicant, who must furnish security within 24 hours. No order as to costs.
Orders
- The fifth respondent is directed to release the funds held in trust on behalf of the applicant to the applicant, forthwith.
- The applicant is ordered to furnish security in the sum and form required by the provisions of section 145(7) and (8) within 24 hours of receipt of the funds from the fifth respondent.
Full Case Text
Judgment text and source record
36 paragraphs
THE LABOUR COUR OF SOUTH AFRICA,
HELD AT JOHANNESBURG
Not Reportable
Case No: J 274/2023
In the matter between:
DEKRA AUTOMOTIVE Applicant
and
WILSON MAHLATJI First Respondent
COMMISSIONER XOLANI NYAMEZELE Second Respondent
COMMISSIONER JULIUS MOLEFE Third Respondent
COMMISSION FOR CONCILIATION,
MEDIATION AND ARBITRATION Forth Respondent
SHERIFF OF JOHANNESBURG SOUTH Fifth Respondent
Heard: 07 March 2023
Delivered: 08 March 2023
(This judgment was handed down electronically by circulation to the parties’ legal representatives, by email, publication on the Labour Court’s website and released to SAFLI. The date on which the judgment is delivered is deemed to be 08 March 2023.)
JUDGMENT
VAN NIEKERK, J
[1] The applicant seeks to stay the execution of an arbitration award issued under the auspices of the CCMA. The material facts are not disputed. The first respondent was employed by the applicant as a vehicle examiner. The first respondent was dismissed for misconduct and referred a dispute to the CCMA. On 12 February 2021, an arbitration award was issued in the first respondent’s favour, by default. On 22 December 2022, an application to rescind the award was refused. The applicant has sought to review and set aside that decision.
[2] The applicant has furnished security in the amount of the award, which the fifth respondent, the sheriff, holds in trust. The sheriff has taken the position that he is obliged to pay the funds to the first respondent. The applicant seeks an order to the effect that the amount be held in trust pending the outcome of the review application, alternatively, that the sheriff be ordered to release the funds on the basis that the applicant be awarded, within a reasonable time, to furnish a security bond in accordance with the provisions of section 145(8) of the LRA.
[3] The application is opposed on the basis that it is not urgent. The application was filed 28 February 2023, in circumstances where the sheriff’s attorney had advised the applicant’s attorney, on 14 February 2023, that the sheriff is not a party to the review application and would not exceed to the request to retain the funds furnished to him, in trust, pending the outcome of the review proceedings, absent a court order to that effect. The present application was filed within 14 days of receipt of that correspondence. In the circumstances, I failed to appreciate that it can be said that the applicant did not act with due diligence. The application is urgent, and I intend to deal with it on that basis.
[4] The only substantive issue for decision is the fate of the security held by the sheriff. The applicant’s attorney indicated during argument that the alternative relief sought in the notice of motion would be preferred, i.e. that the sheriff be directed to release the funds to the applicant and that the applicant be ordered to furnish security in terms of section 145. That is the order that I intend to make, an order that protects the interests of both the applicant and the first respondent.
[5] For the purposes of section 162, the requirements of the law and fairness are best served by each party bearing its own costs.
I make the following order:
1. The fifth respondent is directed to release the funds held in trust on behalf of the applicant to the applicant, forthwith.
2. The applicant is ordered to furnish security in the sum and form required by the provisions of section 145(7) and (8) within 24 hours of receipt of the funds from the fifth respondent in terms of paragraph 1 of this order.
3. There is no order as to costs.
André van Niekerk
Judge of the Labour Court of South Africa
Appearances:
For the applicant: N
Muller, Yusuf Nagdee Attorney
For the respondent: Adv
BL Pilusa
Instructed by: MB
Mabunda Inc