Mainstreet 2 t/a New United and Others v Norvatis (SA) (Pty) Ltd [2000] ZACT 48 (29 November 2000)

Mainstreet 2 t/a New United and Others v Norvatis (SA) (Pty) Ltd [2000] ZACT 48 (29 November 2000)

The Tribunal held that acceptance of a complaint by the Competition Commission is a prerequisite for a valid complaint under the Competition Act and for locus standi to bring an interim relief application. The Tribunal, as a creature of statute, is bound by the Commission's Rules, which have the force of law. Rule...

Source-derived case information.

Citation
[2000] ZACT 48
Parties
Applicant: Mainstreet 2 (Pty) Ltd t/a New United; Applicant: Pharmaceutical Distributors (Pty) Ltd (UPD); Applicant: Natal Wholesale Chemists (Pty) Ltd t/a Alpha Pharm Durban; Applicant: Midlands Wholesale Chemists (Pty) Ltd t/a Alpha Pharm Pietermaritzburg; Applicant: East Cape Pharmaceuticals Ltd t/a Alpha Pharm Eastern Cape; Applicant: Free State Buying Association Ltd t/a Alpha Pharm Bloemfontein (KEMCO); Applicant: Pharmed Pharmaceuticals Ltd; Applicant: AGM Pharmaceuticals Ltd t/a DOCMED; Applicant: L’Etangs Wholesale Chemists CC t/a L’Etangs; Applicant: Resepkor (Pty) Ltd t/a Reskor Pharmaceutical Wholesalers; Respondent: Novartis (SA) (Pty) Ltd; Respondent: Roche Products (Pty) Ltd; Respondent: Boehringer Ingelheim (Pty) Ltd; Respondent: Bristol Myers Squibb (Pty) Ltd; Respondent: Abbott Laboratories SA (Pty) Ltd; Respondent: Schering-Berlin (Pty) Ltd t/a Berlimed; Respondent: Sanofi-Synthelabo (Pty) Ltd; Respondent: MSD (Pty) Ltd; Respondent: Bayer (Pty) Ltd; Respondent: Eli Lilly SA (Pty) Ltd; Respondent: Wyeth SA (Pty) Ltd; Respondent: Rolab (Pty) Ltd A Division of Novartis SA; Respondent: Hoechst Marion Roussel Ltd; Respondent: International Healthcare Distributors (Pty) Ltd (IHD)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
29 November 2000
Case Number
25/IR/C/Aug00
Procedural Posture
Interim Relief Application / Order and Reasons
Outcome
Application for interim relief dismissed for lack of locus standi.
Judges
Norman Manoim, S. Zilwa, P. Maponya
Legal Topics
Interim Relief, Locus Standi, Competition Act Section 59, Competition Act Section 44, Commission Rules Acceptance
Competition Law Interim Relief Locus Standi Competition Act Section 59 Competition Act Section 44 Commission Rules Acceptance

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Parties

Mainstreet 2 (Pty) Ltd t/a New United

Applicant

Pharmaceutical Distributors (Pty) Ltd (UPD)

Applicant

Natal Wholesale Chemists (Pty) Ltd t/a Alpha Pharm Durban

Applicant

Midlands Wholesale Chemists (Pty) Ltd t/a Alpha Pharm Pietermaritzburg

Applicant

East Cape Pharmaceuticals Ltd t/a Alpha Pharm Eastern Cape

Applicant

Free State Buying Association Ltd t/a Alpha Pharm Bloemfontein (KEMCO)

Applicant

Pharmed Pharmaceuticals Ltd

Applicant

AGM Pharmaceuticals Ltd t/a DOCMED

Applicant

L’Etangs Wholesale Chemists CC t/a L’Etangs

Applicant

Resepkor (Pty) Ltd t/a Reskor Pharmaceutical Wholesalers

Applicant

Novartis (SA) (Pty) Ltd

Respondent

Roche Products (Pty) Ltd

Respondent

Boehringer Ingelheim (Pty) Ltd

Respondent

Bristol Myers Squibb (Pty) Ltd

Respondent

Abbott Laboratories SA (Pty) Ltd

Respondent

Schering-Berlin (Pty) Ltd t/a Berlimed

Respondent

Sanofi-Synthelabo (Pty) Ltd

Respondent

MSD (Pty) Ltd

Respondent

Bayer (Pty) Ltd

Respondent

Eli Lilly SA (Pty) Ltd

Respondent

Wyeth SA (Pty) Ltd

Respondent

Rolab (Pty) Ltd A Division of Novartis SA

Respondent

Hoechst Marion Roussel Ltd

Respondent

International Healthcare Distributors (Pty) Ltd (IHD)

Respondent

Procedural Posture

Interim Relief Application / Order and Reasons

  1. 1 Whether the applicants had locus standi to bring an interim relief application under section 59 of the Competition Act before the Competition Commission had accepted their complaint.
  2. 2 Whether acceptance of a complaint by the Competition Commission is a prerequisite for a valid complaint and for standing to seek interim relief.
  3. 3 Whether the Tribunal has jurisdiction to disregard Commission Rules alleged to be ultra vires.

Ratio Decidendi

The Tribunal held that acceptance of a complaint by the Competition Commission is a prerequisite for a valid complaint under the Competition Act and for locus standi to bring an interim relief application. The Tribunal, as a creature of statute, is bound by the Commission's Rules, which have the force of law. Rule 17(2) requires the Commission to accept a complaint before it attains legal status. The Tribunal does not have jurisdiction to declare the Rules ultra vires; only the High Court may do so. Accordingly, the application for interim relief was launched prematurely, as the complaint had not yet been accepted at the time of application. The applicants therefore lacked standing, and...

Court Disposition

Application for interim relief dismissed for lack of locus standi.

Orders

  • The respondents who were parties to the dismissal application (first, second, third, fourth, sixth, ninth, twelfth, thirteenth, and fourteenth) are awarded costs of that application as specified.
  • In the case of the sixth respondent, costs of one attorney are awarded.