Telkom SA SOC Ltd v Mashaba (J 3734/18) [2018] ZALCJHB 392; (2019) 40 ILJ 629 (LC) (29 November 2018)

Telkom SA SOC Ltd v Mashaba (J 3734/18) [2018] ZALCJHB 392; (2019) 40 ILJ 629 (LC) (29 November 2018)

The court held that interest on the judgment debt is payable only from the date of judgment, not from the backdated reinstatement date. The calculation of interest on interest accrued monthly is not supported by section 75 of the BCEA or the Prescribed Rate of Interest Act. The correct approach is to calculate simple interest per annum at the prescribed rate on the capital amount. The warrant of execution for R27,337,355.00 was based on a fundamentally flawed and legally unsupported calculation. The respondent's attorneys acted negligently and unreasonably by persisting with their interpretation and calculation, warranting a costs order de bonis propriis against them.

Citation
[2018] ZALCJHB 392
Parties
Applicant: Telkom SA SOC Ltd; Respondent: Ezekiel Mashaba
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
29 November 2018
Case Number
J 3734/18
Procedural Posture
Urgent Application / Application to Set Aside Warrant of Execution
Outcome
Application granted; warrant of execution set aside; costs de bonis propriis awarded against Ramphele Attorneys.
Judges
Prinsloo
Legal Topics
Automatically Unfair Dismissal, Reinstatement, Interest on Judgment Debt, Costs De Bonis Propriis, Prescribed Rate of Interest, Warrant of Execution
Labour Law Civil Procedure Automatically Unfair Dismissal Reinstatement Interest on Judgment Debt Costs De Bonis Propriis Prescribed Rate of Interest Warrant of Execution

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Parties

Telkom SA SOC Ltd

Applicant

Ezekiel Mashaba

Respondent

Procedural Posture

Urgent Application / Application to Set Aside Warrant of Execution

Legal Issues

  1. 1 From what date is interest payable on the judgment debt.
  2. 2 How should interest on the judgment debt be calculated.
  3. 3 Whether the warrant of execution for R27,337,355.00 was lawfully issued.

Ratio Decidendi

The court held that interest on the judgment debt is payable only from the date of judgment, not from the backdated reinstatement date. The calculation of interest on interest accrued monthly is not supported by section 75 of the BCEA or the Prescribed Rate of Interest Act. The correct approach is to calculate simple interest per annum at the prescribed rate on the capital amount. The warrant of execution for R27,337,355.00 was based on a fundamentally flawed and legally unsupported calculation. The respondent's attorneys acted negligently and unreasonably by persisting with their interpretation and calculation, warranting a costs order de bonis propriis against them.

Court Disposition

Application granted; warrant of execution set aside; costs de bonis propriis awarded against Ramphele Attorneys.

Orders

  • The warrant of execution issued by Ramphele Attorneys is set aside.
  • Ramphele Attorneys are ordered to pay the applicant's costs de bonis propriis.