TWP Projects (Pty) Ltd v Pension Funds Adjudicator and Others (67153/2015) [2016] ZAGPPHC 626 (26 April 2016)

TWP Projects (Pty) Ltd v Pension Funds Adjudicator and Others (67153/2015) [2016] ZAGPPHC 626 (26 April 2016)

The court found that the Adjudicator exceeded her jurisdiction by making a determination on issues not raised in the complaint, specifically by finding against the applicant on the basis of late payment of the April 2014 premium, which was not the subject of the complaint. The complaint focused on the provision of the reinsurance policy and did not allege that the applicant had breached its duties or provided erroneous information leading to the repudiation of the death benefit. The applicant was not afforded an opportunity to respond to the findings, violating the audi alteram partem rule and resulting in procedural unfairness. The evidence showed that the deceased had taken early...

Citation
[2016] ZAGPPHC 626
Parties
Applicant: TWP Projects (Pty) Ltd; Respondent: Pension Funds Adjudicator; Respondent: Van Coller, Cecilia Hendrina; Respondent: Corporate Selection Retirement Fund; Respondent: Liberty Group Limited
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
26 April 2016
Case Number
67153/2015
Procedural Posture
Civil Appeal / Appeal Against Pension Funds Adjudicator's Determination Under Section 30 P of the Pension Funds Act
Outcome
The determination of the Pension Funds Adjudicator is set aside. The second respondent is ordered to pay the costs of the application, including the cost of senior counsel.
Judges
C Pretorius
Legal Topics
Pension Funds Act, Audi Alteram Partem, Jurisdiction of Adjudicator, Procedural Fairness, Complaint Definition, Fiduciary Duty
Administrative Law Civil Procedure Pension Funds Act Audi Alteram Partem Jurisdiction of Adjudicator Procedural Fairness Complaint Definition Fiduciary Duty

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Parties

TWP Projects (Pty) Ltd

Applicant

Pension Funds Adjudicator

Respondent

Van Coller, Cecilia Hendrina

Respondent

Corporate Selection Retirement Fund

Respondent

Liberty Group Limited

Respondent

Procedural Posture

Civil Appeal / Appeal Against Pension Funds Adjudicator's Determination Under Section 30 P of the Pension Funds Act

Legal Issues

  1. 1 Whether the Pension Funds Adjudicator exceeded her jurisdiction by making a determination on issues not raised in the complaint.
  2. 2 Whether the audi alteram partem rule was violated in the adjudication process.
  3. 3 Whether the applicant breached its duties in terms of the rules of the fund by allegedly providing erroneous information or failing to pay the April 2014 premium.

Ratio Decidendi

The court found that the Adjudicator exceeded her jurisdiction by making a determination on issues not raised in the complaint, specifically by finding against the applicant on the basis of late payment of the April 2014 premium, which was not the subject of the complaint. The complaint focused on the provision of the reinsurance policy and did not allege that the applicant had breached its duties or provided erroneous information leading to the repudiation of the death benefit. The applicant was not afforded an opportunity to respond to the findings, violating the audi alteram partem rule and resulting in procedural unfairness. The evidence showed that the deceased had taken early...

Court Disposition

The determination of the Pension Funds Adjudicator is set aside. The second respondent is ordered to pay the costs of the application, including the cost of senior counsel.

Orders

  • The determination in terms of section 30M of the Pension Fund Act 24 of 1956 by the first respondent dated 10 July 2015 under complaint reference PFA/GP/00014167/2015/TD is set aside.
  • The second respondent to pay the costs of the application, including the cost of senior counsel.