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HH477-14 - KUKURA KURERWA BUS COMPANY vs SIMBA MUKWENA and TRUST SINANI and RAYMOND CHIGWAZE and MESSENGER OF COURT, MUTARE

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Procedural Law-viz urgent chamber application re stay of execution.
Labour Law-viz labour arbitration re registration of an arbitral award iro section 98(14) of the Labour Act [Chapter 28:01].
Procedural Law-viz judicial attachment re stay of execution.
Procedural Law-viz interim interdict pendente lite.
Procedural Law-viz appeal re the principle that the noting of an appeal automatically suspends the operation of the judgment appealed against iro labour proceedings.
Procedural Law-viz appeal re the rule that the noting of an appeal automatically suspends the operation of the order appealed against iro labour proceedings.
Procedural Law-viz appeal re the principle that the noting of an appeal automatically suspends the operation of the judgment appealed against iro section 92E of the Labour Act [Chapter 28:01].
Procedural Law-viz appeal re the rule that the noting of an appeal automatically suspends the operation of the order appealed against iro section 92(E) of the Labour Act [Chapter 28:01].
Procedural Law-viz affidavits re founding affidavit iro the principle that a case stands or falls on the founding affidavit.
Procedural Law-viz affidavits re founding affidavit iro the rule that a case stands or falls on the founding affidavit.
Procedural Law-viz rules of evidence re evidence of oath iro pleadings from the Bar.
Procedural Law-viz rules of evidence re evidence on oath iro evidence from the Bar.
Procedural Law-viz rules of evidence re evidence on oath iro sworn affidavit.

Interim Interdict Pendente Lite and Stay of Execution re: Labour Proceedings

The first, second and third respondents are former employees of the applicant who were represented by their union, namely, the Transport & General Workers Union, in a labour dispute with their employer, the applicant. The dispute went to arbitration where labour arbitrator, Lester Murenje, made an arbitral award on 23 May 2014 directing the applicant to pay the three (3) respondents, along with ten (10) other employees, certain sums of money in funeral allowance reimbursements by 31 May 2014.

The applicant did not comply with the arbitral award, but, instead, noted an appeal to the Labour Court on points of law challenging the award granted by the arbitrator. That appeal is yet to be determined. The respondents then approached the Magistrates Court in Mutare and managed to register the award for enforcement purposes in terms of section 98(14) of the Labour Act [Chapter 28:01] and issued a writ of execution against property. Acting on their instruction, and in pursuance of that writ, the Messenger of Court for Mutare promptly attached, and removed, the applicant's Volvo omnibus registration number AAS 3641 on 15 August 2014.

In response to the attachment, the applicant has filed this urgent application seeking the following relief:-

TERMS OF THE INTERIM RELIEF GRANTED

1. The 3rd respondent be and is hereby ordered to release and return the following property it removed from 9B Riverside Drive, Mutare:

(i) Volvo Bus registration No AAS 3641.

TERMS OF THE FINAL ORDER SOUGHT

1. That the 1st, 2nd and 3rd respondents be and are hereby barred and restrained from executing against applicant's property at 9B Riverside Drive, Mutare until applicant (sic) appeal in case number LC/MC/66/14 is finalised.

2. The 1st, 2nd, 3rd and 4th respondents pays (sic) costs for this application on the attorney-client scale.”

Never mind that the draft order has its challenges, including the fact that it is not in Form 29C provided in the High Court Rules, but what the applicant is saying is that, because he has noted an appeal against the arbitral award, execution of the award should be stayed until the appeal has been determined by the Labour Court.

Appeal, Leave to Appeal, Leave to Execute Pending Appeal re: Suspension of Orders Pending Appeal iro Labour Proceedings

What the applicant is saying is that, because he has noted an appeal against the arbitral award, execution of the award should be stayed until the appeal has been determined by the Labour Court.

Significantly, the applicant has not sought a suspension, in the Labour Court, of the arbitral award pending the appeal.

What has to be determined, therefore, is whether the applicant is entitled to a reprieve pending an appeal noted in the Labour Court.

Section 92E(2) of the Labour Act [Chapter 28:01] is explicit in its application. It states:

An appeal in terms of subsection (1) shall not have the effect of suspending the determination or decision appealed against.”

It was upon a realisation that an appeal to the Labour Court, on its own, would not suspend the arbitral award appealed against that the law giver included section 92E(3) of the Labour Act [Chapter 28:01] which provides:

Pending the determination of an appeal, the Labour Court may make such interim determination in the matter as the justice of the case requires.”

The import of that provision is to allow a party to approach the Labour Court, pending appeal, to seek a suspension of the arbitral award where the justice of the case requires.

These provisions of the Labour Act, contained in Part XI of the Act, were inserted, initially, by section 29 of Act 17 of 2002 while section 92E was introduced by section 32 of Act 7 of 2005. The authority relied upon by the applicant, namely, Phiri & Ors v Industrial Steel and Pipe (Pvt) Ltd 1996 (1) ZLR 45 (S) that an appeal to the then Labour Relations Tribunal suspended the execution of the judgment was decided on the basis of the common law - before section 92E(2) of the Labour Act [Chapter 28:01] was promulgated.

It does not help the applicant.

I have to re-state the point I made in Chaire & Ors v Mt Darwin Bazaar HH121-13…, that:-

Registration, or is it recognition or enforcement, of an arbitral award, can only be refused where an application for a stay of execution or suspension of the award is made in terms of s92E(3) of the Act or upon the person against whom it is invoked satisfying the court of the existence of grounds of refusal set out in Article 36 of the Model Law in the Arbitration Act [Cap 7:15]. See Tapera & Ors v Field-spart Investments (Pvt) Ltd HH103/13 at p 2.”

See also Greenland v Zichire HH93-13…,.

A litigant who has challenged an arbitral award by way of an appeal or review to the Labour Court must then approach that court, not the High Court, in terms of section 92E(3) of the Labour Act [Chapter 28:01] for interim relief. He cannot, when execution is levied, rush to this court, on a certificate of urgency, seeking the release of goods placed under attachment on the basis of the appeal. This is because the legislature has seen it fit to provide that such appeal does not suspend the award in section 92E(2) of the Labour Act [Chapter 28:01]….,.

Clearly, therefore, the applicant has taken a wrong turn. It should have approached the Labour Court, in terms of section 92E(3) of the Labour Act, for interim relief in the form of a suspension or stay of the arbitral award. Having failed to do so, but, instead, taken what is purely a labour dispute to this court, the applicant must live with the consequences.

The application, being without merit, it is accordingly dismissed with costs.

Evidence of Oath, Evidence Derived from Previous, Concurrent or Criminal Litigation, Perjury & Submissions from the Bar

Counsel for the applicant, having burnt his fingers on the effect of an appeal on an arbitral award, submitted, in trying to save the application, that the award was not properly registered by the Magistrates Court in that the applicant was not served with the application for registration.

It is trite that an application stands and falls on the founding affidavit and that evidence cannot be led from the bar.

In the founding affidavit, the closest the applicant comes to alluding to that is where the applicant says the award was clandestinely registered. The submissions made by counsel for the applicant, that the award was not registered, are not only at variance with the evidence, that is the founding affidavit, they amount to evidence being led from the Bar which the applicant is not entitled to do.

In that regard I reject counsel for the applicant's submissions as being improperly made.

Cause of Action and Draft Orders re: Approach, Timing, Framing and Legal Basis for Invoking Jurisdiction of the Court

The draft order has its challenges including the fact that it is not in Form 29C provided in the High Court Rules…,.

Arbitration re: Approach, Proceedings Before an Arbitrator and Registration and Execution of Arbitral Awards

I have to re-state the point I made in Chaire & Ors v Mt Darwin Bazaar HH121-13…, that:-

Registration, or is it recognition or enforcement, of an arbitral award, can only be refused where an application for a stay of execution or suspension of the award is made in terms of s92E(3) of the Act or upon the person against whom it is invoked satisfying the court of the existence of grounds of refusal set out in Article 36 of the Model Law in the Arbitration Act [Cap 7:15]. See Tapera & Ors v Field-spart Investments (Pvt) Ltd HH102-13 at p 2.”

See also Greenland v Zichire HH93-13…,.

Founding, Opposing, Supporting, Answering Affidavits re: Approach & Rule that a Case Stands or Falls on Founding Affidavit

It is trite that an application stands and falls on the founding affidavit and that evidence cannot be led from the Bar.


Urgent Chamber Application

MATHONSI J: The first, second and third respondents are former employees of the applicant who were represented by their union namely the Transport & General Workers Union in a labour dispute with their employer, the applicant. The dispute went to arbitration where labour arbitrator Lester Murenje made an arbitral award on 23 May 2014 directing the applicant to pay the 3 respondents, along with 10 other employees, certain sums of money in funeral allowance reimbursements by 31 May 2014.

The applicant did not comply with the arbitral award but instead noted an appeal to the Labour Court on points of law challenging the award granted by the arbitrator. That appeal is yet to be determined. The respondents then approached the Magistrates Court in Mutare and managed to register the award for enforcement purposes in terms of s98(14) of the Labour Act [Cap 28:01] and issued a writ of execution against property. Acting on their instruction and in pursuance of that writ, the Messenger of Court for Mutare promptly attached, and removed the applicant's Volvo omnibus registration number AAS 3641 on 15 August 2014.

In response to the attachment, the applicant has filed this urgent application seeking the following relief:-

TERMS OF THE INTERIM RELIEF GRANTED

1. The 3rd respondent be and is hereby ordered to release and return the following property it removed from 9B Riverside Drive Mutare:

(i) Volvo Bus registration No AAS 3641.

TERMS OF THE FINAL ORDER SOUGHT

1. That the 1st, 2nd and 3rd respondents be and are hereby barred and restrained from executing against applicant's property at 9B Riverside Drive, Mutare until applicant (sic) appeal in case number LC/MC/66/14 is finalised.

2. The 1st, 2nd, 3rd and 4th respondents pays (sic) costs for this application on the attorney-client scale”.

Never mind that the draft order has its challenges including the fact that it is not in Form 29C provided in the High Court Rules, but what the applicant is saying is that, because he has noted an appeal against the arbitral award, execution of the award should be stayed until the appeal has been determined by the Labour Court.

Significantly, the applicant has not sought a suspension in the Labour Court, of the arbitral award pending the appeal.

What has to be determined therefore is whether the applicant is entitled to a reprieve pending an appeal noted in the Labour Court.

Section 92E(2) of the Labour Act is explicit in its application. It states:

An appeal in terms of subsection (1) shall not have the effect of suspending the determination or decision appealed against.”

It was upon a realisation that an appeal to the Labour Court on its own would not suspend the arbitral award appealed against that the law giver included s 92E(3) of the Act which provides:

Pending the determination of an appeal the Labour Court may make such interim determination in the matter as the justice of the case requires”.

The import of that provision is to allow a party to approach the Labour Court, pending appeal, to seek a suspension of the arbitral award where the justice of the case requires. These provisions of the Labour Act contained in Part XI of the Act were inserted initially by s29 of Act 17 of 2002 while s92E was introduced by s32 of Act 7 of 2005. The authority relied upon by the applicant namely Phiri & Ors v Industrial Steel and Pipe (Pvt) Ltd 1996 (1) ZLR 45 (S) that an appeal to the then Labour Relations Tribunal suspended the execution of the judgment was decided on the basis of the common law before s92E(2) was promulgated. It does not help the applicant.

I have to restate the point I made in Chaire & Ors v Mt Darwin Bazaar HH121/13 at p 2 that:-

Registration, or is it recognition or enforcement of an arbitral award can only be refused where an application for a stay of execution or suspension of the award is made in terms of s92E(3) of the Act or upon the person against whom it is invoked satisfying the court of the existence of grounds of refusal set out in Article 36 of the model law in the Arbitration Act [Cap 7:15].

See Tapera & Ors v Field-spart Investments (Pvt) Ltd HH103/13 at p 2”.

See also Greenland v Zichire HH 93/13 at p 3.

A litigant who has challenged an arbitral award by way of an appeal or review to the Labour Court must then approach that court, not the High Court, in terms of s92E(3) for interim relief. He cannot, when execution is levied, rush to this court on a certificate of urgency seeking the release of goods placed under attachment on the basis of the appeal. This is because the legislature has seen it fit to provide that such appeal does not suspend the award in s 92E(2) of the Act.

Mr Deme for the applicant, having burnt his fingers on the effect of an appeal on an arbitral award, submitted, in trying to save the application, that the award was not properly registered by the Magistrates Court in that the applicant was not served with the application for registration.

It is trite that an application stands and falls on the founding affidavit and that evidence cannot be led from the bar.

In the founding affidavit, the closest the applicant comes to alluding to that is where the applicant says the award was clandestinely registered. The submissions made by Mr Deme that the award was not registered are not only at variance with the evidence, that is the founding affidavit, they amount to evidence being led from the bar which the applicant is not entitled to do. In that regard I reject Mr Deme's submissions as being improperly made.

Clearly therefore the applicant has taken a wrong turn. It should have approached the Labour Court in terms of s92E(3) of the Act for interim relief in the form of a suspension or stay of the arbitral award. Having failed to do so, but instead taken what is purely a labour dispute, to this court, the applicant must leave with the consequences.

The application being without merit, it is accordingly dismissed with costs.

Chibune & Associates, applicant's legal practitioners

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