Mpanzama v Fidelity Guards (D560/99) [2000] ZALC 91 (5 September 2000)
- Citation
- [2000] ZALC 91
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Labour Court
- Panel
- Pillay
- Case number
- D560/99
More details
- Court
- Labour Court
- Panel
- Pillay
- Case number
- D560/99
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court held that the Prescription Act applies to the enforcement of arbitration awards under the Labour Relations Act, as the latter does not prescribe a time limit nor exclude the operation of the Prescription Act. The applicant had three years from the date the arbitration award was published to bring the application. Since the application was brought more than three years after the award, the debt had become prescribed. The court rejected the applicant's argument that the cause of action was the dismissal, finding instead that the arbitration award itself was the cause of action for the present application. Equity does not favour a litigant who fails to act within the prescribed period, and the respondent did not obstruct the applicant from instituting proceedings. The application was dismissed.
Court disposition
Application dismissed with no order as to costs.
Orders
- The application to make the arbitration award an order of court is dismissed.
- No order as to costs.
02
Material facts
Parties
T W Mpanzama
Applicant Counsel: S. R. KhanyileFidelity Guards Holdings (Pty) Ltd
Respondent Counsel: S. Snyman03
Procedural history
Posture
Urgent Application / Application to Make Arbitration Award an Order of Court
04
Questions and positions
Legal issues
- 01
Whether the arbitration award can be made an order of court despite the lapse of three years since its publication.
- 02
Whether the Prescription Act applies to the enforcement of arbitration awards under the Labour Relations Act.
- 03
Whether the cause of action is the dismissal or the arbitration award.
Party arguments
- Applicant
- The applicant argued that the cause of action arose from his dismissal, not the arbitration award, and that the Prescription Act should not be applied to oust the court's jurisdiction and deny his claim. He sought to have the arbitration award made an order of court under section 158(1)(c) of the Labour Relations Act.
- Respondent
- The respondent contended that the application was prescribed, as it was brought more than three years after the arbitration award was issued. The respondent also argued that the cause of action arose before the Labour Relations Act of 1995 came into operation and that the Prescription Act applies to the proceedings.
05
Court’s reasoning
Legal principles
- 01
Section 10(1) Prescription Act 68 of 1969
A debt is extinguished by prescription after the lapse of the period prescribed by law, unless inconsistent with another Act of Parliament.
- 02
Section 11(d) Prescription Act 68 of 1969
Unless an Act of Parliament provides otherwise, the period of prescription for any other debt is three years.
- 03
Section 143 and section 158(1)(c) Labour Relations Act 66 of 1995
The Labour Relations Act does not prescribe a time limit for making an arbitration award an order of court, nor does it expressly exclude the operation of the Prescription Act.
- 04
Section 1(d)(iv) Labour Relations Act 66 of 1995
The effective and expeditious resolution of labour disputes is a core objective of the Labour Relations Act.
- 05
Cape Town Municipality v Ally NO 1981 (2) SA 1 (C)
An arbitration award constitutes a debt within the meaning of the Prescription Act, and prescription runs from the date the award is published.
06
Ratio, limits and disposition
Ratio decidendi
The court held that the Prescription Act applies to the enforcement of arbitration awards under the Labour Relations Act, as the latter does not prescribe a time limit nor exclude the operation of the Prescription Act. The applicant had three years from the date the arbitration award was published to bring the application. Since the application was brought more than three years after the award, the debt had become prescribed. The court rejected the applicant's argument that the cause of action was the dismissal, finding instead that the arbitration award itself was the cause of action for the present application. Equity does not favour a litigant who fails to act within the prescribed period, and the respondent did not obstruct the applicant from instituting proceedings. The application was dismissed.
Obiter and limits
- Equity must be applied even-handedly to both employer and employee; the applicant had ample time to prosecute his claim.
- The respondent persistently denied liability but did not obstruct the applicant from instituting proceedings.
- The dismissal was a cause of action in the arbitration, not in the present application.
Court disposition
Application dismissed with no order as to costs.
- The application to make the arbitration award an order of court is dismissed.
- No order as to costs.
Source and reliance status
Labour 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 Court
Judgment
D560/99-PR/1 5 JUDGMENT
CASE NUMBER: 560/99
DATE: 5 SEPTEMBER 2000
PARTIES: T W MPANZAMA v FIDELITY GUARDS
JUDGMENT
PILLAY J
[1] The applicant was dismissed on the 30th of December 1994. He was reinstated following an arbitration award.
[2] The arbitration award was issued on 11 December 1995.
[3] This is an application to make the award an order of Court in terms of section 158 (1)(c) of the Labour Relations Act 66 of 1995.
[4] The respondent resisted the application on the basis, firstly, of prescription and, secondly, that the cause of action arose before the operation of the Labour Relations Act of 1995.
[5] The ground of prescription was relied upon as this application was delivered on 9 June 1999, that is more than three years after the award was published.
[6] Chapter 3 of the Prescription Act 68 of 1969 applies to any debt arising after the commencement of that Act provided that it is not inconsistent with the provisions of any Act of Parliament which prescribes a specified period within which a claim is to be made or an action is to be instituted in respect of a debt. (Section 16 of the Prescription Act.) [7 ] Neither section 143 nor section 158 (1)(c) prescribes any time limits for instituting proceedings to make an award an order of Court. [8] Given that the Labour Relations Act does not expressly exclude the operation of the Prescription Act, it will therefore not be inconsistent to apply the provisions of the Prescription Act to section 143 read with section 158 (1)(c) of the Labour Relations Act. [9 ] Whatever the rationale may be for the doctrine of prescription or the limitation of actions, the Labour Relations Act compels the effective resolution of disputes. (Section 1(d)(iv) of the Labour Relations Act.) [10] This implies that labour disputes must be resolved or finalised expeditiously. For this reason too, it would not be inconsistent to apply the Prescription Act to sections 143 and 158 (1)(c) of the Labour Relations Act.
[6] Chapter 3 of the Prescription Act 68 of 1969 applies to any debt arising after the commencement of that Act provided that it is not inconsistent with the provisions of any Act of Parliament which prescribes a specified period within which a claim is to be made or an action is to be instituted in respect of a debt. (Section 16 of the Prescription Act.)
[8] Given that the Labour Relations Act does not expressly exclude the operation of the Prescription Act, it will therefore not be inconsistent to apply the provisions of the Prescription Act to section 143 read with section 158 (1)(c) of the Labour Relations Act.
[12] It has also been applied in an application to make an award an order of Court in terms of section 31(1) of the Arbitration No Act 42 of 1965. (Cape Town Municipality v Ally NO 1981 (2) SALR page 1.)
[13] It was submitted that as a Court of equity, the Prescription Act should not be applied to oust the jurisdiction of the court and thereby deny the applicant's claim.
[14] Equity must be applied even-handedly to both employer and employees. The employee had three years in which to prosecute his claim. The Respondent had persistently denied liability for the debt. The respondent did not obstruct the applicant in instituting
proceedings.
[15] In the circumstances, the Court cannot come to the assistance of a sloppy litigant. It would be inequitable to the respondent if the applicant is allowed to profit from his own inaction.
[16] In finding that the applicant had three years to institute proceedings, I refer to section 10(1) and 11(d) of the Prescription Act. Section 10 (1) reads as follows:
"Subject to the provisions of this chapter and chapter 4, a debt shall be extinguished by prescription after the lapse of a period which in terms of the relevant law applies in respect of the prescription of such debt." [17] Section 11(d) provides: “The periods of prescription of debt shall be the following: . . . . . . . . (d) Save where an Act of Parliament provides otherwise, three years in respect of any other debt." [18] It was not disputed in these proceedings that the award was a debt within the meaning of the Prescription Act. The debt arose when the award was published and not before. (Cape Town Municipality v Ally NO above.) [19] In the circumstances, the debt has become prescribed. [20] The applicant's contention that the cause of action was the dismissal and not the arbitration award is incorrect. [21] The dismissal was a cause of action in the arbitration.
"Subject to the provisions of this chapter and chapter 4, a debt shall be extinguished by prescription after the lapse of a period which in terms of the relevant law applies in respect of the prescription of such debt."
[17] Section 11(d) provides:
“The periods of prescription of debt shall be the following:
. . . . . . . .
(d) Save where an Act of Parliament provides otherwise, three years in respect of any other debt."
[18] It was not disputed in these proceedings that the award was a debt within the meaning of the Prescription Act. The debt arose when the award was published and not before. (Cape Town Municipality v Ally NO above.)
[19] In the circumstances, the debt has become prescribed.
[20] The applicant's contention that the cause of action was the dismissal and not the arbitration award is incorrect.
[21] The dismissal was a cause of action in the arbitration.
[22] In this application the award of that arbitration is the cause of action. [23] Further, as the date of dismissal preceded the arbitration and the application of the Labour Relations Act, the submission does not help the applicant's cause. [24] In the circumstances the application is dismissed with no order as to costs. _____
JUDGE D. PILLAY Judge - Labour Court of South Africa Date of Hearing 04 September 2000 Date of Judgment 05 September 2000 For the Applicant Mr. S. R. Khanyile Instructed By Mathe & Zondo For the Respondent Mr. S. Snyman Instructed By Snyman Van der Heever Heyns
[22] In this application the award of that arbitration is the cause of action.
[23] Further, as the date of dismissal preceded the arbitration and the application of the Labour Relations Act, the submission does not help the applicant's cause.
[24] In the circumstances the application is dismissed with no order as to costs.
_____
JUDGE D. PILLAY
Judge - Labour Court of South Africa
Date of Hearing 04 September 2000
Date of Judgment 05 September 2000
For the Applicant Mr. S. R. Khanyile
Instructed By Mathe & Zondo
For the Respondent Mr. S. Snyman
Instructed By Snyman Van der Heever Heyns
REPORTABLE
IN
THE LABOUR COURT OF SOUTH AFRICA
SITTING
IN DURBAN
CASE NO D 560/99
DATE 2000/09/05
In the matter between:
T W MPANZAMA Applicant
and
FIDELITY GUARDS HOLDINGS (Pty) Ltd Respondent
JUDGMENT DELIVERED BY THE HONOURABLE
MS JUSTICE PILLAY
TRANSCRIBER
SNELLER RECORDINGS
5
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