Mbita Consulting Services CC and Others v Passenger Rail Agency of South Africa (Pty) Limited and Others (2023/114027) [2024] ZAGPJHC 1126 (22 October 2024)

Mbita Consulting Services CC and Others v Passenger Rail Agency of South Africa (Pty) Limited and Others (2023/114027) [2024] ZAGPJHC 1126 (22 October 2024)

The court held that it is not competent to make a disputed and unsigned settlement agreement an order of court in the absence of a pending lis between the parties. The applicants failed to identify any case pending before the court to which the settlement agreement related. The arbitration award in favour of Prasa...

Source-derived case information.

Citation
[2024] ZAGPJHC 1126
Parties
Applicant: Mbita Consulting Services CC (In business rescue); Applicant: Sumaiya Khamissa N.O.; Applicant: Ponani Russel Mbiza; Respondent: Passenger Rail Agency of South Africa (Pty) Limited; Respondent: Nompumelelo Phasha; Respondent: Thato Tsautse
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Case Number
2023/114027
Procedural Posture
Urgent Application / Opposed Application for Settlement Agreement to Be Made an Order of Court
Outcome
Application dismissed with punitive costs against the applicants.
Judges
ML Senyatsi
Legal Topics
Settlement Agreement Enforcement, Authority of Company Officials, Arbitration Award Finality, Abuse of Court Process
Civil Procedure Commercial and Corporate Settlement Agreement Enforcement Authority of Company Officials Arbitration Award Finality Abuse of Court Process

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Parties

Mbita Consulting Services CC (In business rescue)

Applicant

Sumaiya Khamissa N.O.

Applicant

Ponani Russel Mbiza

Applicant

Passenger Rail Agency of South Africa (Pty) Limited

Respondent

Nompumelelo Phasha

Respondent

Thato Tsautse

Respondent

Procedural Posture

Urgent Application / Opposed Application for Settlement Agreement to Be Made an Order of Court

  1. 1 Whether an unsigned and disputed settlement agreement can be made an order of court.
  2. 2 Whether there is a lis between the parties justifying the making of the settlement agreement an order of court.
  3. 3 Whether the officials of Prasa had authority to conclude the settlement agreement.

Ratio Decidendi

The court held that it is not competent to make a disputed and unsigned settlement agreement an order of court in the absence of a pending lis between the parties. The applicants failed to identify any case pending before the court to which the settlement agreement related. The arbitration award in favour of Prasa was final, and no further action was taken by the applicants to vindicate their alleged rights. The court found that the purported agreement was not signed by Prasa, and the authority of the officials was disputed. Reliance on section 20(7) and (8) of the Companies Act was misplaced, as it does not apply where the agreement is disputed. The application was deemed an abuse of...

Court Disposition

Application dismissed with punitive costs against the applicants.

Orders

  • The application is dismissed.
  • The applicants are ordered to pay costs on a scale as between client and attorney to Prasa and the second respondent, including the cost of counsel.