Netelek (Pty) Ltd v Amat (Pty) Ltd and Another (3431/2018) [2019] ZAECPEHC 29 (14 May 2019)

Netelek (Pty) Ltd v Amat (Pty) Ltd and Another (3431/2018) [2019] ZAECPEHC 29 (14 May 2019)

The court found that the arbitration award was validly made in accordance with the agreement and the Afsa Rules, and that the arbitrator was properly appointed after the First Respondent failed to respond to procedural steps. The award was delivered within the time prescribed by the applicable rules, and any delay was caused by the First Respondent's lack of cooperation. The First Respondent had ample opportunity to participate in the arbitration but failed to do so, and its complaints of procedural irregularity, non-joinder, and lack of natural justice were without merit. The challenge to the amount awarded and the alleged counterclaim were matters for the arbitration and could not be...

Citation
[2019] ZAECPEHC 29
Parties
Applicant: Netelek (Pty) Ltd; Respondent: Amat (Pty) Ltd; Respondent: Nceba Christopher Faku
Court
Eastern Cape High Court, Port Elizabeth
Jurisdiction
South Africa
Judgment Date
14 May 2019
Case Number
3431/2018
Procedural Posture
Urgent Application / Application to Make Arbitration Award an Order of Court; Claim for Payment Against Second Respondent
Outcome
Application granted in part. Arbitration award made an order of court. Claim against Second Respondent dismissed with costs reserved.
Judges
N.J. Mullins
Legal Topics
Arbitration Act Section 31, Arbitration Foundation of Southern Africa Rules, Condonation of Late Filing, Non Joinder, Natural Justice, Enforcement of Arbitral Award
Civil Procedure Commercial and Corporate Arbitration Act Section 31 Arbitration Foundation of Southern Africa Rules Condonation of Late Filing Non Joinder Natural Justice Enforcement of Arbitral Award

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 6 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Netelek (Pty) Ltd

Applicant

Amat (Pty) Ltd

Respondent

Nceba Christopher Faku

Respondent

Procedural Posture

Urgent Application / Application to Make Arbitration Award an Order of Court; Claim for Payment Against Second Respondent

Legal Issues

  1. 1 Whether the arbitration award should be made an order of court under section 31(1) of the Arbitration Act.
  2. 2 Whether the appointment of the arbitrator was procedurally valid under the agreement and applicable rules.
  3. 3 Whether there was a failure of natural justice or breach of constitutional rights in the arbitration proceedings.

Ratio Decidendi

The court found that the arbitration award was validly made in accordance with the agreement and the Afsa Rules, and that the arbitrator was properly appointed after the First Respondent failed to respond to procedural steps. The award was delivered within the time prescribed by the applicable rules, and any delay was caused by the First Respondent's lack of cooperation. The First Respondent had ample opportunity to participate in the arbitration but failed to do so, and its complaints of procedural irregularity, non-joinder, and lack of natural justice were without merit. The challenge to the amount awarded and the alleged counterclaim were matters for the arbitration and could not be...

Court Disposition

Application granted in part. Arbitration award made an order of court. Claim against Second Respondent dismissed with costs reserved.

Orders

  • Leave is granted for the Second Respondent to represent the First Respondent in these proceedings.
  • The claim against the Second Respondent is dismissed. Costs reserved for determination at trial; if no action is instituted within 20 days, Applicant to pay Second Respondent's costs, if any.