Ithala SOC Ltd v Ntombela and Others (DA 1/2024) [2024] ZALAC 71; [2025] 4 BLLR 425 (LAC) (24 December 2024)
- Citation
- [2024] ZALAC 71
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Labour Appeal Court
- Panel
- Molahlehi, Nkutha-Nkontwana, Mooki
- Case number
- DA 1/2024
More details
- Court
- Labour Appeal Court
- Panel
- Molahlehi, Nkutha-Nkontwana, Mooki
- Case number
- DA 1/2024
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Labour Appeal Court found that the appellant had reinstated the employees before initiating the appeal process, which constituted acquiescence in the Labour Court's judgment. The appellant's argument that reinstatement was merely a strategy to limit backpay liability was rejected as contrary to legal principle and public policy. The Court held that such conduct amounts to peremption, as it is an unequivocal act inconsistent with an intention to contest the judgment. Consequently, the appellant's right to appeal was extinguished, and the appeal was dismissed.
Court disposition
Appeal dismissed on grounds of peremption.
Orders
- The appeal is dismissed.
- There is no order as to costs.
02
Material facts
Parties
Ithala SOC Ltd
Appellant Counsel: F Boda SCFaith Noziziwe Ntombela
Respondent Counsel: B HlelaKholisile Dlamini
Respondent Counsel: B HlelaJabulani Ngwane N.O.
RespondentCommission for Conciliation, Mediation and Arbitration
Respondent03
Procedural history
Posture
Civil Appeal / Appeal From Labour Court Judgment Dismissing Review Application
04
Questions and positions
Legal issues
- 01
Whether the appellant perempted its right to appeal by reinstating the employees before launching the appeal.
- 02
Whether the reinstatement constituted acquiescence to the Labour Court's judgment.
- 03
Whether the appeal should be dismissed on grounds of peremption.
Party arguments
- Applicant
- The appellant argued that reinstating the employees was not an acquiescence to the Labour Court's judgment but a measure to limit its exposure to backpay liability. It maintained that it did not intend to abandon its right to appeal and that the reinstatement was a strategic decision pending the outcome of the appeal process.
- Respondent
- The respondents contended that the appellant's act of reinstating them following the dismissal of the review application amounted to acquiescence in the judgment, thereby perempting the right to appeal. They provided evidence of their reinstatement, receipt of bonuses, and recognition of long service, arguing these acts were unequivocally inconsistent with an intention to contest the judgment.
05
Court’s reasoning
Legal principles
- 01
National Union of Metalworkers of SA and others v Fast Freeze (1992) 13 ILJ 963 (LC) 969I – J
A party acquiesces in a judgment, either expressly or by an unequivocal act wholly inconsistent with an intention to contest it, resulting in peremption of the right to appeal.
06
Ratio, limits and disposition
Ratio decidendi
The Labour Appeal Court found that the appellant had reinstated the employees before initiating the appeal process, which constituted acquiescence in the Labour Court's judgment. The appellant's argument that reinstatement was merely a strategy to limit backpay liability was rejected as contrary to legal principle and public policy. The Court held that such conduct amounts to peremption, as it is an unequivocal act inconsistent with an intention to contest the judgment. Consequently, the appellant's right to appeal was extinguished, and the appeal was dismissed.
Obiter and limits
- Litigants may not use the courts to hedge against financial exposure while simultaneously contesting judgments; such conduct is odious to the law.
- The principle of peremption prevents parties from approbating and reprobating, ensuring finality in litigation.
Court disposition
Appeal dismissed on grounds of peremption.
- The appeal is dismissed.
- There is no order as to costs.
Source and reliance status
Labour Appeal Court
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.
Labour Appeal Court
Judgment
THE LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG
Not Reportable
Case no: DA 1/ 2024
In the matter between:
ITHALA
SOC LTD
Appellant
and
FAITH
NOZIZIWE NTOMBELA
First Respondent
KHOLISILE
DLAMINI
Second Respondent
JABULANI NGWANE N.O .
Third Respondent
COMMISSION FOR CONCILIATION,
MEDIATION
AND ARBITRATION
Fourth Respondent
Heard: 27 November 2024
Delivered: 24 December 2024
Coram: Molahlehi AJP, Nkutha-Nkontwana JA et Mooki AJA
JUDGMENT
MOOKI, AJA
Introduction
[1] The matter came before Court as an appeal of the dismissal of the appellant’s review application. The Labour Court (per Govender AJ), in dismissing the review application, upheld the award by the third respondent, who found the dismissal of the first and second respondents (employees) to be substantively unfair. The award directed their reinstatement and that they be paid backpay.
Appeal
[2] Counsel for the employees submitted, during the hearing, that the appeal had been perempted because the appellant had reinstated the employees following the dismissal of the review application.
[3] The Court directed the appellant’s counsel to address it on the issue of the appeal being said to be perempted. Mr Boda SC, counsel for the appellant, informed the Court that he had no instruction on whether the employees had been reinstated or not.
[4] The Court, after the parties addressed it on the merits, directed that the parties inform the Court as to the status of the employees. The parties were given a period of about a week to revert to the Court. Judgment was then reserved.
[5] The employees filed an affidavit setting out their views on their status. The employees referenced the appellant’s supplementary submissions in support of its application for leave to appeal. In its supplementary submissions, the appellant recorded the following, among others:
5.1 The employees were to be reinstated and be required to report for work on 1 September 2023;
5.2 The appellant would bring an application for leave to appeal the judgement of the Labour Court;
5.3 The appellant would not pay the employees the awarded backpay pending the final determination of its application for leave to appeal; and
5.4 The appellant took the employees back into its employ to prevent any potential increase in the backpay which, at the time of the letter, stood at 76 months.
[6] The recordal in the preceding paragraph was set out in a letter by the appellant to the employees. This was before the appellant launched its appeal process.
[7] The employees, in their affidavit, mentioned that they had been in Ithala’s employ since August 2023; that they received bonuses in 2023 and 2024, and that Ithala conferred a Long Service Award for 25 years of service on the second respondent.
[8] The appellant filed an affidavit disputing that it acquiesced to the dismissal of its review application. That was because, according to the appellant, the employees were taken back for the appellant to limit the appellant’s exposure to the payment of the backpay due to the employees.
Evaluation
[9] This Court has said the following in relation to peremption:
‘a party to a judgment acquiesces therein, either expressly, or by some unequivocal act wholly inconsistent with an intention to contest it, his right of appeal is said to be perempted, ie he cannot thereafter change his mind and note an appeal. Peremption is an example of the well-known principle that one may not approbate and reprobate, or, to use colloquial expressions, blow hot or cold, or have one's cake and eat it.’[1]
[10] We accept that the employees were reinstated. The reinstatement was effected before the start of the appeal process. The appellant’s statement that it did not acquiesce to the dismissal of its review application but that it took the employees back to minimise the appellant’s potential liability of the payment of backpay would turn courts into a gambling den – with a litigant bringing a matter before court not so much to vindicate an entitlement, but to hedge against exposure. Such a stratagem is odious to the law.
[11] The appellant perempted the appeal by reinstating the employees. The appeal therefore must fail.
[12] In the premises, the following order is made:
Order
1. The appeal is dismissed.
2. There is no order as to costs.
O. Mooki AJA
Molahlehi AJP and Nkutha-Nkontwana JA concur.
APPEARANCES:
For the Appellant: F Boda SC, Instructed by Norton Rose Fulbright South Africa Inc. For the first and Second Respondents: B Hlela (attorney), Instructed by Hlela Attorneys
[1] National Union of Metalworkers of SA and others v Fast Freeze (1992) 13 ILJ 963 (LC) 969I – J.
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