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
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
Legal Issues
- 1 Whether the court erred in granting a declaratory order instead of reviewing and setting aside the arbitrator's ruling.
- 2 Whether parties' referral of jurisdiction to the arbitrator precludes subsequent challenge to the arbitrator's decision.
- 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.
Full Case Text
Judgment text and source record
61 paragraphs
IN THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
REPUBLIC OF SOUTH AFRICA
CASE NO: 4627/21
REPORTABLE: NO
OF INTEREST TO OTHER JUDGES: NO
REVISED: YES
DATE: 17 MAY 2022
In the matter between:
DIS-CHEM PHARMACIES LIMITED
Applicant
and
DAINFERN SQUARE (PTY) LTD
First Respondent
MPILO WINSTON DLAMINI
Second Respondent
NOBLE SPECTATUS FUNDS (PTY) LTD
Third Respondent
IN RE:
DAINFERN SQUARE (PTY) LTD
Applicant
MPILO WINSTON DLAMINI
First Respondent
DIS-CHEM PHARMACIES LIMITED
Second Respondent
JUDGMENT
(LEAVE TO APPEAL APPLICATION)
JANSE VAN NIEUWENHUIZEN J:
1. This is an application for leave to against the judgment handed down by this court on 8 November 2021.
GROUNDS FOR LEAVE TO APPEAL
First ground
2. The applicant contends that the court erred in granting a declaratory order, whereas the first respondent sought an order for the reviewing and setting aside the ruling of the first respondent.”
3. In relying on this ground, the applicant has lost sight of the second prayer in the notice of motion, to wit:
“2. Declaring that the dispute between the second respondent and the applicant does not fall within the provisions of clause 33 of the lease agreement between the parties, annexure “SOC1” to annexure “DBG1” to the founding affidavit and was accordingly incorrectly referred to arbitration by the second respondent:” The order granted pause to mention that the first defendant has been placed under provisional liquidation on 8 February 2022 and the summary judgment application only proceeded in respect of the claim against the remainder of the defendants.
4. The order granted by this court was accordingly in terms of prayer 2 of the notice of motion and as a result, this ground of appeal has no merit.
Ground 2
5. The applicant submits that, because the parties have referred the issue of jurisdiction to the arbitrator, the parties consented that the arbitrator may make such a determination and thus the first respondent could not thereafter challenge the decision by the arbitrator on the basis that it was “wrong”.
6. The applicant, for the first time in its application for leave to appeal, referred to the authority in Amalgamated Clothing and Textile Workers Union of South Africa v Veldspun (Pty) Ltd 1994(1) SA 162 A at 169 E in support of its contention supra.
7. The point is somewhat different from the issue that crystallised during the hearing of the matter, to wit whether it is possible to issue a declarator in respect of a jurisdiction point whilst the arbitration proceedings are still alive. This court considered the Supreme Court of Appeal authorities relied upon by the applicant and found that, in line with the reasoning of Van Zyl AJ in the Tzaneng matter, it is possible.
8. Having studied the Amalgamated judgment in respect of the agreement point, I am of the view that there is a reasonable possibility that another court would come to a different conclusion in respect of the declarator order issued by this court.
9. In the result, leave to appeal should be granted and it is not necessary to consider the remaining grounds for leave to appeal.
10. The parties agreed that leave to appeal should be granted to the Supreme Court of Appeal. I agree.
ORDER
The following order is made:
1. Leave to appeal to the Supreme Court of Appeal is granted.
2. Costs to be costs in the appeal.
N. JANSE VAN NIEUWENHUIZEN
JUDGE OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
DATE APPLICATION FOR LEAVE TO APPEAL HEARDHEARD PER COVID19 DIRECTIVES:
24 March 2022
DATE DELIVERED PER COVID19 DIRECTIVES:
17 May 2022
APPEARANCES
Counsel for the applicant
Advocate J Daniels SC
Instructed by:
Saltzman Attorneys
Counsel for the first respondents: Advocate S Mathiba
Instructed by:
GVS Law