National Union of Metal Workers of South Africa obo Members v Motheo Steel Engineering (J271/2014) [2014] ZALCJHB 315 (7 February 2014)
The court held that the Labour Relations Act prevails over the Companies Act in matters governed by the LRA, unless expressly amended. Section 133(1) of the Companies Act does not expressly amend the LRA and therefore does not bar the applicant from instituting proceedings. However, the business rescue partner...
Source-derived case information.
- Citation
- [2014] ZALCJHB 315
- Parties
- Applicant: National Union of Metal Workers of South Africa obo Members; Respondent: Motheo Steel Engineering
- Court
- Labour Court Johannesburg
- Jurisdiction
- South Africa
- Case Number
- J271/2014
- Procedural Posture
- Urgent Application / Postponement and Directions for Amended Notice
- Outcome
- Matter postponed with directions for amendment and service; no order as to costs.
- Judges
- R Lagrange
- Legal Topics
- Business Rescue Proceedings, Applicability of Companies Act, Priority of Lra, Urgent Interdict, Amendment of Notice of Motion
Source-derived case record
Summary, issues, holding and outcome
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Parties
National Union of Metal Workers of South Africa obo Members
Applicant
Motheo Steel Engineering
Respondent
Procedural Posture
Urgent Application / Postponement and Directions for Amended Notice
Legal Issues
- 1 Whether section 133(1)(a) of the Companies Act prevents the applicant from bringing proceedings without leave of court or business rescue partner.
- 2 Whether the Labour Relations Act prevails over the Companies Act in this context.
- 3 Whether the business rescue partner should be cited as a respondent.
Ratio Decidendi
The court held that the Labour Relations Act prevails over the Companies Act in matters governed by the LRA, unless expressly amended. Section 133(1) of the Companies Act does not expressly amend the LRA and therefore does not bar the applicant from instituting proceedings. However, the business rescue partner should be cited as a respondent. As the applicant was unaware of the respondent's business rescue status at the time of launching proceedings, the matter was postponed with directions for amendment and service.
Court Disposition
Matter postponed with directions for amendment and service; no order as to costs.
Orders
- The matter is postponed to 13 February 2014.
- The applicant must file an amended notice of motion on the respondent and the business rescue partner of the respondent, together with a copy of the application and this order on the business rescue partner.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF SOUTH AFRICA
IN THE LABOUR COURT OF SOUTH AFRICA
(HELD IN JOHANNESBURG)
JUDGMENT
OF INTEREST TO OTHER JUDGES
CASE NO: J 271/2014
In the matter between:
NATIONAL UNION OF METAL WORKERS
OF SOUTH AFRICA OBO MEMBERS APPLICANT
and
MOTHEO STEEL ENGINEERING RESPONDENT
Heard: 07 February 2014
Delivered: 07 February 2014
Summary: (urgent application-applicability of s133 (1) (a) of the Companies Act - s 189A of the LRA)
LAGRANGE, J
[1] In terms of s 210 of the Labour Relations Act, 66 of 1995 a matter dealt with in that Act prevails over the provisions of any other law save the Constitution or any Act expressly amending it. I am satisfied that s 133(1) of the Companies Act 71 of 2008 does not expressly amend the provisions of the LRA, and insofar as it might otherwise prevent legal proceedings without the leave of a court or the relevant business rescue partner, it does not prevent the applicant bringing this application.
[2] Nonetheless, the business rescue partner should be cited as a respondent.
[3] As the applicant could not have known about the status of the respondent when it launched these proceedings, the following order is made:
3.1 The matter is postponed to 13 February 2014.
3.2 The applicant must file an amended notice of motion on the respondent and the business rescue partner of the respondent, together with a copy of the application and this order on the business rescue partner.
3.3 The respondents must file any opposing affidavits by 16h00 on 11 February 2014 and the applicant must file any replying affidavit by 16h00 on 12 February 2014.
3.4 No order is made as to costs.
_______________________
R LAGRANGE, J
Judge of the Labour Court of South Africa
APPEARANCES
APPLICANT:
T. Manasoe of Numsa
FIRST RESPONDENT: R. Grundlineh instructed by Nothnagel Attorneys