Marais and Others v Shiva Uranium (Pty) Ltd (In Business Rescue) and Others (J3049/18) [2018] ZALCJHB 346; (2019) 40 ILJ 177 (LC); [2019] 5 BLLR 472 (LC) (5 October 2018)

Marais and Others v Shiva Uranium (Pty) Ltd (In Business Rescue) and Others (J3049/18) [2018] ZALCJHB 346; (2019) 40 ILJ 177 (LC); [2019] 5 BLLR 472 (LC) (5 October 2018)

The Labour Court does not have jurisdiction to grant leave to institute proceedings against a company in business rescue under section 133(1)(b) of the Companies Act. The definition of 'court' in the Companies Act refers exclusively to the High Court or a designated judge thereof. Section 157(2) of the Labour Relations Act does not extend the Labour Court's jurisdiction to matters specifically conferred upon the High Court by other statutes. The moratorium on legal proceedings during business rescue is a carefully crafted mechanism to facilitate the rehabilitation of financially distressed companies and must be interpreted strictly. The applicants' claims for unpaid remuneration are...

Citation
[2018] ZALCJHB 346
Parties
Applicant: Izak Bosman Marais and 56 Others; Respondent: Shiva Uranium (Pty) Ltd (in business rescue); Respondent: Cloete Murray; Respondent: Cristopher Monyela; Respondent: National Union of Mineworkers; Respondent: Association of Mineworkers and Construction Union; Respondent: Industrial Development Corporation of South Africa
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
5 October 2018
Case Number
J3049/18
Procedural Posture
Urgent Application / Application to Uplift Moratorium and for Payment of Remuneration
Outcome
Application struck off the roll for lack of jurisdiction and urgency.
Judges
P Nkutha-Nkontwana
Legal Topics
Business Rescue Moratorium, Jurisdiction of Labour Court, Unpaid Remuneration, Concurrent Jurisdiction, Interpretation of Statutes
Commercial and Corporate Labour Law Business Rescue Moratorium Jurisdiction of Labour Court Unpaid Remuneration Concurrent Jurisdiction Interpretation of Statutes

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Parties

Izak Bosman Marais and 56 Others

Applicant

Shiva Uranium (Pty) Ltd (in business rescue)

Respondent

Cloete Murray

Respondent

Cristopher Monyela

Respondent

National Union of Mineworkers

Respondent

Association of Mineworkers and Construction Union

Respondent

Industrial Development Corporation of South Africa

Respondent

Procedural Posture

Urgent Application / Application to Uplift Moratorium and for Payment of Remuneration

Legal Issues

  1. 1 Does the Labour Court have jurisdiction to grant leave to institute proceedings against a company in business rescue under section 133(1)(b) of the Companies Act?
  2. 2 Is there a conflict between the Companies Act and the Labour Relations Act regarding jurisdiction?
  3. 3 Is the application urgent given the remedies available under the Companies Act?

Ratio Decidendi

The Labour Court does not have jurisdiction to grant leave to institute proceedings against a company in business rescue under section 133(1)(b) of the Companies Act. The definition of 'court' in the Companies Act refers exclusively to the High Court or a designated judge thereof. Section 157(2) of the Labour Relations Act does not extend the Labour Court's jurisdiction to matters specifically conferred upon the High Court by other statutes. The moratorium on legal proceedings during business rescue is a carefully crafted mechanism to facilitate the rehabilitation of financially distressed companies and must be interpreted strictly. The applicants' claims for unpaid remuneration are...

Court Disposition

Application struck off the roll for lack of jurisdiction and urgency.

Orders

  • The application is struck off the roll.
  • There is no order as to costs.