South Africa Case Law

Engen Petroleum Limited v Slick Oil CC t/a Chelsea Village Convenience Centre (20350/2023)

Engen Petroleum Limited v Slick Oil CC t/a Chelsea Village Convenience Centre (20350/2023) [2025] ZAWCHC 64 (24 February 2025)

Court

Western Cape High Court, Cape Town

Case number

20350/2023

Judge

M J Bishop

The court found that Slick Oil CC had made a valid request to the Controller of Petroleum Products to refer the dispute to arbitration under section 12B(1) of the Petroleum Products Act. The statutory scheme provides a low threshold for referral, requiring only an allegation of unfair or unreasonable contractual practice. The court determined that there were no compelling reasons to refuse a stay of proceedings, despite the respondent's delay in making the referral request. The merits of the dispute, including the validity of the acknowledgement of debt and allegations of duress or misreprese…

Source excerpt

• Acknowledgement Of Debt
• Stay Of Proceedings
• Arbitration Under Petroleum Products Act
• Unfair Contractual Practice

Lehana's Pass Investment CC v Africa Campus Trading 300 (Pty) Ltd and Others (16138/2021)

Lehana's Pass Investment CC v Africa Campus Trading 300 (Pty) Ltd and Others (16138/2021) [2023] ZAGPJHC 111 (13 February 2023)

Court

South Gauteng High Court, Johannesburg

Case number

16138/2021

Judge

D J Wilson

The High Court granted leave to appeal against an order suspending eviction pending petroleum-product arbitration, after the Constitutional Court’s Mfoza decision changed the legal position.

• Leave To Appeal
• Eviction Order
• Suspension Of Execution
• Arbitration Under Petroleum Products Act
• Judicial Discretion
• Leave-to-appeal

KZN Oils (Pty) Ltd v Nelta (Pty) Ltd t/a Keyway Motors (184/18P)

KZN Oils (Pty) Ltd v Nelta (Pty) Ltd t/a Keyway Motors (184/18P) [2021] ZAKZPHC 12; [2021] 2 All SA 478 (KZP) (12 February 2021)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

184/18P

Judge

Henriques

The applicant is the lawful owner of the premises and the respondent's right of occupation terminated by effluxion of time. The respondent failed to establish any binding assurance or agreement entitling it to continued occupation. The referral to arbitration under section 12B of the Petroleum Products Act does not automatically stay eviction proceedings nor oust the jurisdiction of the High Court; the respondent was required to apply for a stay under section 6 of the Arbitration Act, which was not done. The arbitrator's powers are limited to correcting unfair or unreasonable contractual prac…

Source excerpt

• Eviction
• Termination Of Franchise Agreement
• Stay Of Proceedings
• Arbitration Under Petroleum Products Act
• Unfair Contractual Practice
• Constitutional Rights In Contract

Former Way Trade & Invest (Pty) Ltd v Bright Idea Projects 66 (Pty) Ltd (1341/2018)

Former Way Trade & Invest (Pty) Ltd v Bright Idea Projects 66 (Pty) Ltd (1341/2018) [2020] ZASCA 118 (1 October 2020)

Court

Supreme Court of Appeal

Case number

1341/2018

Judges

Wallis, Zondi, Mocumie, Goosen, Mabindla-Boqwana

The court found that the applicant failed to establish a right of occupation beyond the expiry of the franchise agreement, as no new binding agreement was concluded. The evidence showed that negotiations for a new franchise agreement were never finalised, and the applicant did not pay the required royalty fee or sign the necessary documents. The referral to arbitration under s 12B of the Petroleum Products Act did not oust the jurisdiction of the High Court, nor did it provide the applicant with a right to remain in occupation. The High Court correctly exercised its discretion in refusing a s…

Source excerpt

• Eviction
• Franchise Agreement
• Stay Of Proceedings
• Arbitration Under Petroleum Products Act
• Onus Of Proof
• Jurisdiction Of Court

Bright Idea Projects 66 (Pty) Ltd t/a All Fuels v Former Way Trade and Invest (Pty) Ltd t/a Premier Service Station (283/18P)

Bright Idea Projects 66 (Pty) Ltd t/a All Fuels v Former Way Trade and Invest (Pty) Ltd t/a Premier Service Station (283/18P) [2018] ZAKZPHC 29; 2018 (6) SA 86 (KZP) (10 July 2018)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

283/18P

Judge

D. Pillay

The court found that the respondent failed to prove the existence of a renewal franchise agreement, as negotiations did not result in a concluded contract and the respondent did not pay the required brand fee. The referral to arbitration under section 12B of the Petroleum Products Act did not suspend the eviction proceedings, as the terms of reference for arbitration did not include the right of occupation or renewal of the franchise. The arbitration process is parallel and does not affect the applicant's right to restoration of ownership. The respondent's reliance on the Consumer Protection…

Source excerpt

• Ejectment
• Franchise Agreement
• Arbitration Under Petroleum Products Act
• Stay Of Proceedings
• Renewal Of Contract
• Costs Award

Engen Petroleum Limited v The Business Zone 1010 CC t/a Emmarentia Convenience Centre (20513/2014)

Engen Petroleum Limited v The Business Zone 1010 CC t/a Emmarentia Convenience Centre (20513/2014) [2015] ZASCA 176 (27 November 2015)

Court

Supreme Court of Appeal

Case number

20513/2014

Judges

Ponnan, Leach, Theron, Majiedt, Swain

The Supreme Court of Appeal held that section 12B of the Petroleum Products Act confers a discretionary power on the Controller to refer disputes to arbitration only where there is an ongoing valid contract and alleged unfair or unreasonable contractual practices. The arbitrator's jurisdiction is corrective and prospective, not compensatory, and does not extend to disputes arising after contract cancellation. The High Court retains jurisdiction to determine the validity of contract cancellation, and there is no statutory ouster of its jurisdiction. The Controller and Minister correctly refuse…

Source excerpt

• Judicial Review Of Administrative Action
• Arbitration Under Petroleum Products Act
• Discretion Of Controller
• Contract Cancellation
• Jurisdictional Limits Of Arbitration