Industrius D.O.O v IDS Industry Service and Plant Construction South Africa (Pty) Ltd (15862/2020) [2021] ZAGPJHC 528 (13 October 2021)
- Citation
- [2021] ZAGPJHC 528
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Senyatsi
- Case number
- 15862/2020
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Senyatsi
- Case number
- 15862/2020
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant failed to demonstrate reasonable prospects that another court would differ from the judgment refusing to stay execution of the arbitral award. The counterclaim raised by the respondent was considered res judicata, as it had already been addressed by the arbitrator in the arbitral award. Furthermore, any remedies sought regarding the enforcement of the arbitral award should have been pursued under the International Arbitration Act and Model Law, which the applicant did not do. Accordingly, the application for leave to appeal was refused.
Court disposition
Application for leave to appeal refused with costs.
Orders
- The application for leave to appeal is refused with costs.
02
Material facts
Parties
Industrius D.O.O
Applicant Counsel: Adv I CurrieIDS Industry Service and Plant Construction South Africa (Pty) Ltd
Respondent Counsel: Adv HJ FischerAmounts and remedies
- Counterclaim Amount Alleged: EUR 20.8
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal After Judgment Enforcing Arbitral Award and Dismissing Counterclaim
04
Questions and positions
Legal issues
- 01
Whether the applicant has shown reasonable prospects that another court would differ from the judgment refusing to stay execution of the arbitral award.
- 02
Whether the counterclaim raised by the respondent is res judicata due to the arbitrator's award.
- 03
Whether remedies sought should have been pursued under the International Arbitration Act and Model Law.
Party arguments
- Applicant
- The applicant contended that the execution of the order making the arbitration award an order of court should be stayed, or alternatively, that the applicant should be interdicted from executing the order pending final adjudication of the respondent's action under case number 2020/19156. The applicant argued that there are reasonable prospects of success on appeal regarding the dismissal of the counterclaim and the refusal to stay execution.
- Respondent
- The respondent conceded that the arbitration award was capable of being made an order of court and did not dispute this during the hearing. The respondent maintained that the remedies sought by the applicant should have been pursued under the International Arbitration Act and Model Law, and that the counterclaim was already dealt with by the arbitrator, rendering it res judicata.
05
Court’s reasoning
Legal principles
- 01
Section 17(1)(a) of the Superior Courts Act
Leave to appeal may only be granted if the appeal would have a reasonable prospect of success or there is some compelling reason for the appeal to be heard, such as conflicting judgments.
- 02
Mont Chevaux Trust v Tina Goosen & 18 Others 2014 JDR 2325 (LCC)
The threshold for granting leave to appeal has been raised; there must be a measure of certainty that another court will differ from the judgment appealed against.
- 03
International Arbitration Act and Model Law
Enforcement of international arbitral awards is governed exclusively by the International Arbitration Act and Model Law, and remedies should be sought under these instruments.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant failed to demonstrate reasonable prospects that another court would differ from the judgment refusing to stay execution of the arbitral award. The counterclaim raised by the respondent was considered res judicata, as it had already been addressed by the arbitrator in the arbitral award. Furthermore, any remedies sought regarding the enforcement of the arbitral award should have been pursued under the International Arbitration Act and Model Law, which the applicant did not do. Accordingly, the application for leave to appeal was refused.
Obiter and limits
- The pro-enforcement bias required by the Model Law would be undermined if remedies were sought outside its framework.
- The applicant did not seek remedies under the International Arbitration Act and Model Law, which govern the enforcement of international arbitral awards.
Court disposition
Application for leave to appeal refused with costs.
- The application for leave to appeal is refused with costs.
Source and reliance status
South Gauteng High Court, Johannesburg
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
South Gauteng High Court, Johannesburg
Judgment
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION, JOHANNESBURG
CASE NO: 15862/2020
REPORTABLE:
NO
OF INTEREST TO OTHER JUDGES: NO
REVISED: NO
13/10/2021
In the matter between:
INDUSTRIUS D.O.O
Applicant
and
IDS
INDUSTRY SERVICE AND PLANT CONSTRUCTION
Respondent
SOUTH AFRICA (PTY) LTD
JUDGMENT
(LEAVE TO APPEAL)
Delivered: By transmission to the parties via email and uploading onto Case Lines the Judgment is deemed to be delivered. The date for hand-down
is deemed to be 13 October 2021
SENYATSI J:
[1] On 20 August 2021, I granted an order making an arbitrator’s award an order of this court and dismissed the counterclaim of the applicant. I also refused to stay the execution of the order pendente lite.
[2] Although the application for leave to appeal is sought against the whole judgement as well as orders inclusive of the dismissed counterclaim by the respondents which was granted by the court on 20 August 2021, there is no appeal against the order of this court making the arbitration award an order of court. This is conceded by the respondent when it states that during the hearing it did not dispute that the arbitration award was capable of being made an order of court.
[3] The appeal is confined to the dismissal of prayer 3 that the execution of any order making the arbitration award dated 9 June 2020 delivered by Mr K Trisk SC an order of court be stayed alternatively that the applicant be interdicted pendente lite from executing the said order pending the final adjudication of the respondent’s action under the case number 2020/ 191 56.
[4] The test for leave to appeal is regulated by Section 17(1)(a) of the Superior Courts Act which provides as follows:
“(1) Leave to appeal may only be given by the judge or judges concerned are of the opinion that:
(a)(i) appeal the appeal would have a reasonable prospect of success or
(ii) there is some compelling reason why the appeal should be heard including conflicting judgements on the matter under consideration;”
[5] The test for leave to appeal under section 17(1)(a) of the Superior Courts Act requires a measure of certainty that the appeal court will differ from the court whose judgment is sought to be appealed against.[1]
[6] In the Mont Chevaux Trust v Tina Goosen & 18 Others[2] the court held as follows in commenting on the threshold for granting leave to appeal:
“It is clear that the threshold for granting leave to appeal against the judgement of the High Court has been raised in the new Act. the former test whether leave to appeal should be granted was a reasonable prospect that another court might come to a different conclusion.” See Van Heerden v Conwright and Others 1985 (2) SA 342 (T) at 343H. The use of the word “would” In the new statute Indicates a measure of certainty that another court will differ from the court whose judgment is sought to be appealed against.
[7] The enforcement of International arbitral awards is governed exclusively by the International Arbitration Act and Model Law. Any other conclusion would clearly undermine the pro-enforcement bias that is required by the Model Law which has been adopted into our law by the Act. Any remedies that the applicant seeks in this leave to appeal could and should be sought in terms of the Act and the Model Law.
[8] As stated in the judgment appealed against, IDS did not seek any remedies in terms of the Act and the Model Law.
[9] I have also found that the counterclaim that IDS claims to have of EUR20.8 million alleged under case number 2020/19156, are most likely, res judicate in that the arbitrator, Mr Trisk, dealt with them in his arbitral award.
[10] It therefore follows that the applicant has failed to show that another court would differ with the judgment sought to be appealed against.
ORDER
[11] The following order is made:
(a) the application for leave to appeal is refused with costs.
SENYATSI ML
Judge of the High Court of South Africa
Gauteng Local Division, Johannesburg
REPRESENTATION
Date Judgment reserved: 18 September 2021
Date of Judgment: 13 October 2021
Applicants Counsel: Adv I Currie
Instructed by: Knowles Husain Lindsay
Respondents Counsel: Adv HJ Fischer
Instructed by: Spellas Lengert Kuebler Braun Inc.
[1] See Acting National Director of Public Prosecutions and Others vs Democratic Alliance: In Re: democratic Alliance v ANDPP [2016] ZAGPPHC at [25] See also: National Union of Public Service and Allied Workers v The MEC: Health, Gauteng & Others Case 78454/2016 at para [6]
[2] 2014 JDR 2325 (LCC) at para [6]
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