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South Africa Judgment

South Gauteng High Court, Johannesburg

Juvansu Trading CC v Puma Energy Procurement South Africa (Pty) Ltd and Other (2022/003038) [2024] ZAGPJHC 710 (24 July 2024)

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Source document

01

Holding and result

The court found that the Applicant's application to set aside the arbitration award had already been dismissed in the earlier judgment. The Arbitrator was found to have the necessary jurisdiction to decide the issues before him, including whether suspensive conditions had been fulfilled. As both grounds of opposition to the counterapplication were disposed of in the earlier judgment, the court held that the relief sought in the counterapplication should be granted. The arbitration award published by Advocate H Louw on 1 April 2022 was accordingly made an order of court. Costs of the counterapplication were awarded to the First and Second Respondents, limited to costs associated with the counterapplication and excluding duplication with the main application.

Court disposition

Counterapplication granted; arbitration award made an order of court; costs of counterapplication awarded to First and Second Respondents.

Orders

  • The arbitration award published by Advocate H Louw on 1 April 2022 is made an order of court.
  • The costs of the counterapplication are to be paid by the Applicant, with counsels’ costs to be taxed on scale C.

02

Material facts

Parties

Juvansu Trading CC

Applicant Counsel: H M Viljoen

Puma Energy Procurement South Africa (Pty) Ltd

Respondent Counsel: AJ Daniels SC

Puma Energy South Africa (Pty) Ltd

Respondent Counsel: CT Vetter

Hendrik Louw

Respondent

03

Procedural history

  1. Posture

    Review Application / Counterapplication Following Judgment on Main Application

04

Questions and positions

Legal issues

Party arguments

Applicant
The Applicant opposed the counterapplication on two grounds: first, that if the arbitration award is set aside, the counterapplication must fail; second, that the First and Second Respondents did not prove a valid arbitration agreement and the Arbitrator lacked jurisdiction to make the determinations in the award.
Respondent
The First and Second Respondents argued that the arbitration award should be made an order of court, as the Arbitrator had jurisdiction and the award was valid. They also sought costs of the counterapplication, contending that the Applicant's grounds of opposition were without merit.

05

Court’s reasoning

  1. 01

    Arbitration Act 42 of 1965

    An arbitration award may be made an order of court if the award is valid and the arbitrator acted within his jurisdiction.

  2. 02

    South African law of arbitration; see also Heads of Argument, para. 94-95

    Where an application to set aside an arbitration award is dismissed, the award stands and may be enforced.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the Applicant's application to set aside the arbitration award had already been dismissed in the earlier judgment. The Arbitrator was found to have the necessary jurisdiction to decide the issues before him, including whether suspensive conditions had been fulfilled. As both grounds of opposition to the counterapplication were disposed of in the earlier judgment, the court held that the relief sought in the counterapplication should be granted. The arbitration award published by Advocate H Louw on 1 April 2022 was accordingly made an order of court. Costs of the counterapplication were awarded to the First and Second Respondents, limited to costs associated with the counterapplication and excluding duplication with the main application.

Obiter and limits

  • The circumstances under which this judgment is handed down necessitated a separate costs order, but duplication of costs with the main application must be avoided.
  • Counsels’ costs will be taxed on scale C, consistent with the reasons set out in the earlier judgment.

Court disposition

Counterapplication granted; arbitration award made an order of court; costs of counterapplication awarded to First and Second Respondents.

  • The arbitration award published by Advocate H Louw on 1 April 2022 is made an order of court.
  • The costs of the counterapplication are to be paid by the Applicant, with counsels’ costs to be taxed on scale C.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2024] ZAGPJHC 710

IN THE HIGH COURT OF

SOUTH AFRICA

GAUTENG LOCAL DIVISION, JOHANNESBURG

CASE NO: 2022-003038

(1) REPORTABLE: NO (2) OF INTEREST TO OTHER JUDGES: NO (3) REVISED: NO

____ ______

DATE

SIGNATURE

In the matter between:

JUVANSU

TRADING CC Plaintiff / Applicant / Appellant And

PUMA

ENERGY PROCUREMENT

SOUTH AFRICA (PTY) LTD First Defendant / Respondent

PUMA

ENERGY SOUTH AFRICA (PTY) LTD Second Defendant / Respondent

HENDRIK

LOUW Third Defendant / Respondent

Heard: 17 April 2024

Delivered: This Judgment was handed down electronically by circulation to the parties’ legal representatives by email and by uploading to Caselines. The date and time for hand down is deemed to be 10:00 am on 24 July 2024.

JUDGEMENT

GREEN, AJ

[1] On 9 July 2024 I handed down a judgement in this matter. That judgement deals with the Applicant’s claim for the setting aside of an arbitration award published by the third respondent.

[2] On 18 July 2024, the First and Second Respondents’ attorneys directed an email to me in which they pointed out that the Respondents’ counter application was not dealt with in the judgement which I had handed down. In response to that email, I asked the attorneys for the Applicant and the First and Second Respondents to confirm whether they agreed that the First and Second Respondents’ counterapplication had served before me. Both parties have responded that they agree that the Respondents’ counterapplication served before me. This judgement accordingly deals with the counter application and must be read together with the judgment I handed down on 9 July 2024.

[3] In the counterapplication the First and Second Respondents seek an order that the award published by the Arbitrator on 1 April 2022 be made an order of court. The First and Second Respondents also ask for costs of the counter application. The affidavit to support the counter application is contained within the First and Second Respondents’ answering affidavit and is answered in the replying affidavit.

[4] In opposing the counter application, the heads of argument filed on behalf of the Applicant articulated the grounds of opposition as:

[4.1] where the Award falls to be set aside the counter application must fail;[1] and

[4.2] the First and Second Respondents did not prove a valid arbitration agreement, and the Arbitrator did not have jurisdiction to make the determinations that he did.[2]

[5] In the judgement that I handed down on 9 July 2024:

[5.1] I dismissed the application seeking to set aside the Arbitrator’s award. That finding is dispositive of the first ground of opposition raised by the Applicant to the counter application.

[5.2] I found that the Arbitrator was vested with the necessary jurisdiction to decide whether the suspensive conditions had been

fulfilled, and I found that in granting the Award he did not go beyond the bounds of his jurisdiction, or the issues that were before him. That finding is dispositive of the second ground on which the counter application is opposed.

[6] Given that I have found that the Arbitrator’s award ought not to be set aside, and that the grounds of opposition to the counterapplication articulated by the Applicant cannot be upheld, it follows that the relief sought in the counter application should be granted.

[7] The First and Second Respondents have asked for costs of the counter application. If I had granted the order contained within this judgement when I handed down my judgement on 9 July 2024 I would have dismissed the main application, granted the counter application and granted a single costs order. The circumstances under which this judgment is handed down have resulted in me having to grant a separate costs order. Notwithstanding that this is a separate costs order, when this costs order is taxed no part of the costs associated with the main application are to be included in this costs order, and it is limited only to the costs associated with the counter application having due regard to avoid any duplication of costs in respect of the main application. Counsels’ costs will be taxed on scale C, for the same reasons reflected in my judgement of 9 July 2024.

[8] For the reasons set out above, I make the following order:

1. “The arbitration award published by Advocate H Louw on 1 April 2022 is made an order of court.

2. The costs of the counterapplication are to be paid by the Applicant with counsels’ costs to be taxed on scale C.”

I

GREEN

Acting Judge of the High Court

Gauteng Division, Johannesburg

Appearances

For the Applicant: H M Viljoen instructed by Hay and Scott

For the First and Second Respondent: AJ Daniels SC and CT Vetter instructed Webber Wentzel

Date of hearing: 17 April 2024

Date of judgment: 23 July 2024

[1] Heads of Argument, para. 94.

[2] Heads of Argument, para. 95.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Arbitration Act 42 of 1965

Legislation

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