Dis-Chem Pharmacies Limited v Dainfern Square (Pty) Ltd and Others (4627/21) [2022] ZAGPPHC 349 (17 May 2022)

Dis-Chem Pharmacies Limited v Dainfern Square (Pty) Ltd and Others (4627/21) [2022] ZAGPPHC 349 (17 May 2022)

The court found that the order granted was in accordance with the second prayer of the notice of motion, which sought a declarator that the dispute did not fall within the arbitration clause of the lease agreement. The applicant's argument that the court erred by granting a declaratory order was rejected, as the...

Source-derived case information.

Citation
[2022] ZAGPPHC 349
Parties
Applicant: Dis-Chem Pharmacies Limited; Respondent: Dainfern Square (Pty) Ltd; Respondent: Mpilo Winston Dlamini; Respondent: Noble Spectatus Funds (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Case Number
4627/21
Procedural Posture
Leave to Appeal / Application for Leave to Appeal
Outcome
Leave to appeal to the Supreme Court of Appeal is granted.
Judges
N Janse Van Nieuwenhuizen
Legal Topics
Arbitration Clause, Jurisdiction of Arbitrator, Declaratory Order
Civil Procedure Commercial and Corporate Arbitration Clause Jurisdiction of Arbitrator Declaratory Order

Source-derived case record

Summary, issues, holding and outcome

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Parties

Dis-Chem Pharmacies Limited

Applicant

Dainfern Square (Pty) Ltd

Respondent

Mpilo Winston Dlamini

Respondent

Noble Spectatus Funds (Pty) Ltd

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal

  1. 1 Whether the court erred in granting a declaratory order instead of reviewing and setting aside the arbitrator's ruling.
  2. 2 Whether parties' referral of jurisdiction to the arbitrator precludes subsequent challenge to the arbitrator's decision.
  3. 3 Whether a declarator on jurisdiction is permissible while arbitration proceedings are ongoing.

Ratio Decidendi

The court found that the order granted was in accordance with the second prayer of the notice of motion, which sought a declarator that the dispute did not fall within the arbitration clause of the lease agreement. The applicant's argument that the court erred by granting a declaratory order was rejected, as the relief granted matched the relief sought. However, the court acknowledged that, based on the authority cited in Amalgamated Clothing and Textile Workers Union of South Africa v Veldspun (Pty) Ltd, there is a reasonable possibility that another court may reach a different conclusion regarding the declaratory order. Consequently, leave to appeal was granted to the Supreme Court of...

Court Disposition

Leave to appeal to the Supreme Court of Appeal is granted.

Orders

  • Leave to appeal to the Supreme Court of Appeal is granted.
  • Costs to be costs in the appeal.