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

Rissik Street One Stop CC t/a Rissik Street Engen and Another v Engen Petroleum Ltd (CCT 196/21)

Rissik Street One Stop CC t/a Rissik Street Engen and Another v Engen Petroleum Ltd (CCT 196/21) [2023] ZACC 4; 2023 (4) BCLR 425 (CC); 2024 (4) SA 447 (CC) (1 February 2023)

Court

Constitutional Court

Case number

CCT 196/21

Judges

Zondo, Baqwa, Kollapen, Madlanga, Majiedt, Mbatha, Mhlantla, Rogers, Tshiqi

The Constitutional Court held that section 12B of the Petroleum Products Act vests wide remedial powers in an arbitrator to correct unfair or unreasonable contractual practices, including permitting continued occupation of premises after the expiry of an operating lease if necessary to effectuate the correction. The Court found that the applicants' right to sell the business was frustrated by Engen's refusal to consent to proposed purchasers without reasons, and that eviction would irreparably harm the applicants by destroying the business's goodwill. The Court rejected the Supreme Court of A…

Source excerpt

• Petroleum Products Act
• Unfair Contractual Practice
• Stay Of Eviction
• Arbitration Remedies
• Goodwill And Entrenched Value

Engen Petroleum Limited v Rissik Street One Stop CC and Another (209/2020)

Engen Petroleum Limited v Rissik Street One Stop CC and Another (209/2020) [2021] ZASCA 63 (26 May 2021)

Court

Supreme Court of Appeal

Case number

209/2020

Judges

Zondi, Mocumie, Dlodlo, Kgoele, Unterhalter

The Supreme Court of Appeal held that the High Court erred in granting a stay of eviction proceedings and an interdict pending arbitration under s 12B of the Petroleum Products Act. The lease agreement between Engen and the respondents expired by effluxion of time, and the dispute referred to arbitration did not include the termination or extension of the lease. The arbitrator's powers under s 12B are limited to correcting unfair or unreasonable contractual practices and do not extend to reinstating expired leases or granting occupation rights pending sale. The respondents' right to sell the…

Source excerpt

• Petroleum Products Act
• Lease Expiry
• Arbitration Stay
• Eviction
• Unfair Contractual Practice

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

Engen Petroleum Limited v Rissik Street One Stop CC t/a Rissik Street Engen and Another (1583/2019)

Engen Petroleum Limited v Rissik Street One Stop CC t/a Rissik Street Engen and Another (1583/2019) [2020] ZALMPPHC 2 (12 February 2020)

Court

Limpopo High Court, Polokwane

Case number

1583/2019

Judge

KGANYAGO

The court held that the referral of the dispute to the Controller of Petroleum Products for arbitration under section 12B of the Petroleum Products Act justifies a stay of the eviction proceedings. The arbitration process is designed to address contractual imbalances and may result in interim or final relief, including reinstatement of the operating lease. Evicting the respondents before the arbitration is concluded would undermine their ability to pursue remedies and finance litigation, and would defeat the purpose of section 12B. The proceedings are therefore stayed pending the outcome of t…

Source excerpt

• Petroleum Products Act
• Eviction Proceedings
• Contractual Termination
• Arbitration Stay
• Unfair Contractual Practice

Hansco Motors CC t/a Hansa Motors v BP Southern Africa (Pty) Ltd and Another (5980/2011)

Hansco Motors CC t/a Hansa Motors v BP Southern Africa (Pty) Ltd and Another (5980/2011) [2011] ZAKZPHC 48 (12 August 2011)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

5980/2011

Judge

Seegobin

The court dismissed an urgent application to stop lease termination and granted eviction relief, holding the sub-lease expired by effluxion of time.

• Lease Termination
• Rectification Of Contract
• Urgent Interdict
• Unfair Contractual Practice
• Mediation And Arbitration
• Holding Over