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South Africa Judgment

South Gauteng High Court, Johannesburg

Strategic Partners Group Concessions (Pty) Ltd v Bombela Operating Company (Pty) Ltd and Others (2021/30068) [2023] ZAGPJHC 646 (6 June 2023)

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Source document

01

Holding and result

The Court found that the applicant failed to demonstrate a reasonable possibility that another court would reach a different conclusion regarding the review of the arbitration award. The Court held that the Arbitrator did consider and apply the tacit or implied term pleaded by the applicant, and that the applicant's arguments did not constitute valid grounds for review under the Arbitration Act. The Court concluded that there was no room for another interpretation of the award and dismissed the application for leave to appeal.

Court disposition

Application for leave to appeal dismissed with costs, including costs of two Counsel.

Orders

  • The application for leave to appeal is dismissed.
  • The applicant is to pay the costs of the application, including the costs of two Counsel.

02

Material facts

Parties

Strategic Partners Group Concessions (Pty) Ltd

Applicant Counsel: A Subel SC (with JL Kaplan)

Bombela Operating Company (Pty) Ltd

Respondent Counsel: NJ Graves SC (with KD Iles)

RATP Development SA

Respondent

Retired Justice N V Hurt

Respondent

The Arbitration Foundation of South Africa

Respondent

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Dismissal of Review Application

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that both the Arbitrator and the Court conflated the interpretation of the tacit or implied term with the interpretation of the agreements, documents, and the award. The applicant further argues that the Arbitrator failed to specifically mention or deal with the tacit or implied term in his award, and that this omission should constitute grounds for review. The applicant submits that these errors justify leave to appeal.
Respondent
The first respondent argues that the applicant is advancing arguments on the merits rather than valid grounds for review. The respondent submits that the grounds for review are unfounded in law and fact, that the applicant's interpretative approach to the award is legally flawed, and that the applicant loses sight of the issues actually before the Arbitrator. The respondent maintains that the Arbitrator did consider and apply the tacit or implied term as pleaded, and that the Court's finding should not be disturbed on appeal.

05

Court’s reasoning

  1. 01

    Superior Courts Act 10 of 2013, s 17(1)(a)(i)

    Leave to appeal may only be granted if there is a reasonable possibility that another court would come to a different finding.

  2. 02

    Arbitration Act 42 of 1965, s 33(1)(b)

    A review of an arbitration award under the Arbitration Act requires demonstration of a reviewable irregularity or error in law or fact.

06

Ratio, limits and disposition

Ratio decidendi

The Court found that the applicant failed to demonstrate a reasonable possibility that another court would reach a different conclusion regarding the review of the arbitration award. The Court held that the Arbitrator did consider and apply the tacit or implied term pleaded by the applicant, and that the applicant's arguments did not constitute valid grounds for review under the Arbitration Act. The Court concluded that there was no room for another interpretation of the award and dismissed the application for leave to appeal.

Obiter and limits

  • The Court noted that it does not deliver lengthy judgments in applications for leave to appeal, but this does not mean the arguments were not considered.
  • The Court was greatly assisted by the heads of argument and oral submissions from both parties.

Court disposition

Application for leave to appeal dismissed with costs, including costs of two Counsel.

  • The application for leave to appeal is dismissed.
  • The applicant is to pay the costs of the application, including the costs of two Counsel.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2023] ZAGPJHC 646

REPUBLIC OF SOUTH AFRICA

IN THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, JOHANNESBURG

CASE NUMBER: 2021/30068

NOT REPORTABLE

NOT OF INTEREST TO OTHER JUDGES

REVISED

06.06.23

In the matter between:

STRATEGIC PARTNERS GROUP CONCESSIONS (PTY) LTD Applicant And

BOMBELA OPERATING COMPANY (PTY) LTD First Respondent

RATP

DEVELOPMENT SA Second Respondent

RETIRED

JUSTICE N V HURT Third Respondent

THE

ARBITRATION FOUNDATION OF SOUTH AFRICA Fourth Respondent

Neutral Citation: Strategic Partners Group Concessions (Pty) Ltd v Bombela Operating Company (Pty) Ltd and Others (Case No: 2021/30068) [2023] ZAGPJHC 646 (06 June 2023).

JUDGMENT

(LEAVE TO APPEAL)

WANLESS AJ

Introduction

[1] This is an application by the Applicant (“SPGC”) for leave to appeal against the judgment of this Court delivered on the 17th of January 2023. In that judgment this Court dismissed SPGC’s application for a review to set aside an award made by the Third Respondent (“the Arbitrator”) in terms of subsection 33(1)(b) of the Arbitration Act 42 of 1965. The First Respondent (“BOC”) opposes the application for leave to appeal.

[2] The application for leave to appeal either to the Supreme Court of Appeal (“the SCA”), alternatively, to the Full Bench of this Court, is based squarely upon the provisions of subsection 17(1)(a)(i) and not subsection 17(1)(a)(ii) of the Superior Courts Act 10 of 2013, since it is not suggested by SPGC that this is a matter where there are compelling reasons why leave to appeal should be granted. In the premises, the test as to whether this Court should grant leave to appeal is trite and this brief judgment will not be burdened with dealing in any detail therewith. Suffice it to say, the Applicant must show that there is a reasonable possibility that another Court would come to a different finding for this Court to grant it leave to appeal.

The merits

[3] This Court was greatly assisted in this matter by the Heads of Argument filed by both parties prior to the hearing of this application and the well prepared argument of Senior Counsel presented at the hearing itself. It is not the practice of this Court to deliver lengthy judgments in applications of this nature. In the premises, this Court does not intend to deal with either the written or oral arguments placed before it in any great detail. Of course, that does not mean that this Court has failed to take cognisance thereof.

[4] In essence, SPGC’s complaint (if understood correctly) seems to be that this Court has essentially committed the same “error” as that of the Arbitrator by conflating the interpretation of the tacit or implied term relied upon by SPGC with the interpretation of the various agreements and/or documents and/or the award. In addition, remains the important fact (from SPGC’s perspective) that the Arbitrator fails to mention and/or deal with the tacit or implied term specifically in his award and this Court has not held that this is good grounds for review. This, of course, is just a very brief summary of the argument put forward on behalf of SPGC for leave to appeal.

[5] On the other hand, it is contended by BOC that (a) SPGC advances arguments on the merits and not grounds for review; (b) the grounds advanced by SPGC for review are bad in law and fact; (c) SPGC’s interpretative approach to the award is legally flawed and (d) SPGC’s argument loses sight of what was before the Arbitrator. All of these points raised by BOC at the hearing of this present application once again support a holistic approach to the interpretation of the award and that the Arbitrator, in coming to the decision that he did, clearly considered and applied the tacit or implied term as pleaded by SPGC. This was the finding of this Court which would not be disturbed by another Court on appeal.

Conclusion

[6] Having carefully considered all of the arguments presented before this Court and having had regard to the authorities referred to therein, this Court is not satisfied that there is a reasonable possibility that another court would come to a different finding. In the opinion of this Court there is simply no room for another interpretation of the award other than that given to it by this Court and the finding that the Arbitrator did indeed consider and apply the tacit or implied term in question. In the premises, the application for leave to appeal must be dismissed.

Order

[7] This Court makes the following order:

1. The application for leave to appeal is dismissed.

2. The Applicant is to pay the costs of the application, such to include the costs of two Counsel.

B.C. WANLESS

Acting Judge of the High Court

Gauteng Division, Johannesburg

Heard: 30 May 2023

Judgment: 06 June 2023

Appearances

For Applicant: A Subel SC (with JL Kaplan) Instructed by: Ian Levitt Attorneys For First Respondent: NJ Graves SC (with KD Iles) Instructed by: Pinsent Masons South Africa Inc.

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Authorities

Authorities used by the court

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

Superior Courts Act 10 of 2013

Legislation

Legislation referenced in the available case record.

Arbitration Act 42 of 1965

Legislation

Legislation referenced in the available case record.

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