Naidoo and Another v EP Property Projects (Pty) Ltd and Others (444/2012) [2014] ZASCA 97 (31 July 2014)

Naidoo and Another v EP Property Projects (Pty) Ltd and Others (444/2012) [2014] ZASCA 97 (31 July 2014)

The Supreme Court of Appeal held that the arbitrator had jurisdiction to conduct the arbitration, as the agreement to refer the dispute to arbitration was made an order of court by mutual consent and was never set aside. The appellants participated in the arbitration without raising jurisdictional objections, thereby acquiescing to the arbitrator's authority. The grounds for review, including alleged misconduct, gross irregularity, and bias, were found to be without merit. The court confirmed that the scope for setting aside an arbitral award is narrow and limited to the grounds specified in section 33 of the Arbitration Act. Regarding costs, the court found that Naidoo, as a commercial...

Citation
[2014] ZASCA 97
Parties
Appellant: Perapanjakam Naidoo; Appellant: Reginald Tobias Marais; Respondent: EP Property Projects (Pty) Ltd; Respondent: Andries Francois Marais; Respondent: Registrar of Deeds, Cape Town; Respondent: P B Hodes, SC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 July 2014
Case Number
444/2012
Procedural Posture
Civil Appeal / Appeal From Western Cape High Court
Outcome
Appeal dismissed with costs, including costs of two counsel where employed.
Judges
Mpati, Lewis, Ponnan, Bosielo, Willis
Legal Topics
Arbitration Act 42 of 1965, Arbitrator Jurisdiction, Review of Arbitral Award, Costs Against Funder, Company Directorship, Fraudulent Transfer
Civil Procedure Commercial and Corporate Arbitration Act 42 of 1965 Arbitrator Jurisdiction Review of Arbitral Award Costs Against Funder Company Directorship Fraudulent Transfer

Case Brief

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Parties

Perapanjakam Naidoo

Appellant

Reginald Tobias Marais

Appellant

EP Property Projects (Pty) Ltd

Respondent

Andries Francois Marais

Respondent

Registrar of Deeds, Cape Town

Respondent

P B Hodes, SC

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape High Court

Legal Issues

  1. 1 Whether the arbitrator had jurisdiction to conduct the arbitration.
  2. 2 Whether the arbitration agreement and resulting court order were valid and binding.
  3. 3 Whether the arbitrator's conduct constituted reviewable misconduct or gross irregularity justifying setting aside the award.

Ratio Decidendi

The Supreme Court of Appeal held that the arbitrator had jurisdiction to conduct the arbitration, as the agreement to refer the dispute to arbitration was made an order of court by mutual consent and was never set aside. The appellants participated in the arbitration without raising jurisdictional objections, thereby acquiescing to the arbitrator's authority. The grounds for review, including alleged misconduct, gross irregularity, and bias, were found to be without merit. The court confirmed that the scope for setting aside an arbitral award is narrow and limited to the grounds specified in section 33 of the Arbitration Act. Regarding costs, the court found that Naidoo, as a commercial...

Court Disposition

Appeal dismissed with costs, including costs of two counsel where employed.

Orders

  • The appeal is dismissed with costs, such costs to include the costs consequent upon the employment of two counsel where so employed.