TSANGA
J:
On
21 July 2015, I registered an arbitral award in favour of the
applicant which was in the following terms:
“It
is ordered that;
1.
The arbitration award attached hereto and granted in favour of the
applicant on the 29th of October 2014 be and is hereby registered as
an order of this Honourable court.
2.
The respondent be and is hereby ordered to pay the applicant
$11,448.88 plus interest of 5% per annum from the date of the
arbitral award up to the date of full payment.
3.
Respondent shall pay costs of this application at a higher scale if
it opposes the application but if it does not oppose the application
each party to bear its own costs.”
The
respondent has appealed against the registration of the award and has
asked for my written reasons for registration.
A
summary of the case is in order.
The
applicant obtained an arbitral award in his favour for unfair
dismissal. He was dismissed for tarnishing the image of ZIMDEF by
failing to pay his personal debts and drawing public attention by
being pursued by the Messenger of Court at his workplace.
His
conduct was deemed by the employer to be inconsistent with the
conditions of his employment.
He
disputed being guilty of misconduct on the basis that these were
private debts and the charges stretched too far and were unfair.
The
Messenger of Court had threatened to attach the employer's property
and had disrupted business.
The
arbitrator's finding was that the failure to repay debts did not
justify disciplinary proceedings. The arbitrators view was that
allowing the charges to stand would set a bad precedent for labour
relations.
The
arbitrator who did the calculations of what was due to the applicant,
who was different from the original arbitrator, ordered that he be
paid $11,448.88 plus interest at 5% per annum from the date of the
arbitral ward to the date of full payment.
The
applicant sought registration of the award in order to compel the
respondent to comply with the award.
The
respondent had opposed the registration in the initial instance, on
the grounds that there was a pending application for interim relief
in the Labour Court and that the Labour Court should be given an
opportunity to make a ruling on the application for interim relief
pending before it. It was argued that registration would render
Labour Court application nugatory.
It
was also argued by the respondents that a litigant who has taken
advantage of the procedure to seek interim relief would suffer the
very harm from he had sought protection.
In
addition the respondent also highlighted in its application that it
had a general appeal pending on the matter in the Labour Court
besides its interim application.
At
the hearing of this opposed application on 21 July 2015, the
applicant drew attention to the fact that the pending application for
stay of execution pending appeal, upon which the respondent had
resisted registration on the basis that it would be rendered
nugatory, had since been heard and dismissed on 17 April 2015 under
LC/H/349/14. As such, it was the applicant's argument that there
was no basis upon which to refuse to grant registration.
The
applicant further argued that the respondent's standpoint that to
register the award would be against public policy also lacked merit.
The
respondent, on the other hand, acknowledged dismissal of the
application for interim relief but emphasised that it had filed an
application for leave to appeal the dismissal of its application for
interim relief. As a result of this pending application for leave to
appeal, it was argued that I should not register the award.
Furthermore,
it was the respondent's argument that the main appeal on the award
had yet to be heard.
In
addition, it was maintained that to register the award would be
against public policy on the basis that the manner in which the
calculation of the award had been done would result in tax avoidance.
At
the same time the respondent was adamant that the process that had
been initiated in the Labour Court in terms of the challenge to the
arbitral award, should certainly not be ignored.
The
applicant, however, resisted the respondent's argument that
registering the award would be against public policy on the basis
that as this was a labour matter, Art 34 and 36 of the Uncitral Model
Law set out in the Schedule to the Arbitration Act [Chapter 7:15] was
not applicable.
This
was said to be because the Arbitration Act and its provisions apply
to matters referred to compulsory arbitration in terms of section
98(2) of the Labour Act. Reliance for this viewpoint was placed on
the case of Samudzimu v Dairibord 2010 (1) ZLR 357 (H).
More
significantly the respondent put forward the argument that gone are
the days when this court could argue that it cannot not interfere
with a labour matter as it has now been constitutionally as a court
of original jurisdiction.
It
was emphasised that this court therefore had jurisdiction to
determine a labour matter.
Authority
for this standpoint was placed on the case of Confederation of
Zimbabwe Industries v Rita Marque HH125/15 whereby Mathonsi J held
that section 171(1)(a) of the Constitution of Zimbabwe had reinstated
the jurisdiction of the High Court in labour matters which had been
ousted by section 89(6) of the Labour Act [Chapter 28:01].
Section
89(6) essentially provides that no court other than the Labour Court
shall have jurisdiction to hear and determine labour matters which
include applications and appeals.
Section
171(1)(a) of the Constitution which is argued to have altered this
position provides that “the High Court has original jurisdiction
over all civil and criminal matters throughout Zimbabwe”.
Jurisdiction
of a court essentially refers to the authority that a court has to
hear and determine a dispute that is brought before it. This is in
distinction to the court's “inherent power” to do something as
dealt with by section 176 of our Constitution.
In
terms of this section, the Constitutional Court, the Supreme Court
and the High Court all have inherent powers “to protect and
regulate their own process and to develop the common law or customary
taking into account the interests of justice and the provisions of
this Constitution”. Such inherent powers can thus be inherent
procedural powers or inherent substantive powers and are exercised on
the premise that the court in question already has jurisdiction in
the first place. Thus regulation of process as exhorted by section
176 would be largely an exercise of inherent procedural powers while
development of common law and customary law as per section 176 would
be largely an exercise of inherent substantive powers.
Respondent's
argument was founded on the jurisdictional authority of the High
Court in terms of section 171(a) to hear and determine a civil
matter, in this instance a labour dispute.
It
was against the backdrop of the jurisdictional argument that I
formulated the decision to grant the order of registration.
I
took into consideration the argument advanced by the respondent this
court is now fully empowered to hear such labour matters as a court
of original jurisdiction.
As
stated, when a court has original jurisdiction this refers to its
standing and right to hear a case as the first court of first
instance.
Constitutionally,
the High Court has indeed been conferred with unfettered power to
exercise original jurisdiction in all civil and criminal matters as
argued by the respondent. Such original jurisdiction is exercisable
even in matters regulated by statute.
However,
whilst section 171(1)(a) does confer upon the High Court original
jurisdiction over all civil and criminal matters throughout Zimbabwe,
this overall authority also has to take into account other applicable
constitutional provisions as well as legislation force that in
reality places some breaks or limits on its exercise of original
jurisdiction in specific instances.
Thus,
section 172(2) of the Constitution gives the Labour Court
“jurisdiction over labour matters as conferred by an Act of
Parliament”.
The
applicable Act of Parliament in labour matters is the Labour Act
[Chapter 28:01].
As
stated, its section 89(6) clearly confers on the Labour Court
jurisdiction in the first instance jurisdiction to hear and determine
any applications, appeals or other matters stipulated in that Act.
The
Labour Act is thus a delegated piece of legislation in labour matters
in terms of which it is empowered to determine all labour matters as
a court of first instance and as also as a court of appeal.
It
can be said that at least in labour matters there is express
legislative exclusion by an Act of Parliament of the High Court's
original jurisdiction that is envisaged by section 171.
In
the face of what is tantamount to legislative exclusion of the High
Court's original jurisdiction in labour matters, there would have
to be a powerful “need” for upsetting the implied exclusion of
the High Court's original jurisdiction in labour matters.
It
is not the intention of in granting the High Court original
jurisdiction to create unwarranted conflict with legislation in
force.
Ordinarily,
existing legislative mechanisms that are in place would logically
need to be followed unless there exist strong reasons for
intervention or unless a reading of any specific provision suggests
otherwise in terms of the jurisdiction question. (See for instance
Mapini v Omni Africa (Pvt) Ltd HH494/13 and also the discussion in
Derdale Investments (Pvt) Ltd v Econet Wireless (Private) Ltd &
Ors HH656/14).
Generally
it would also be amiss to lose sight of a major reason behind the
creation of the Labour Court, which was that it would be a specialist
court on labour issues.
More
significantly, in casu, the Labour Court had already been approached
as a court of original jurisdiction in terms of the appeal and
interim relief sought, in keeping with legislative intention.
The
approach to the High Court was registration related because when it
comes to registration of labour awards, the Labour Court clearly
lacks jurisdiction as the legislature gives this power to
Magistrates' Courts and the High Court depending on the value of
the award.
Registration
of awards in terms of section 98(14) is therefore an area of labour
law where the statute endows the Magistrate Court and the High Court
with registration jurisdiction. (See Trust Me Security Org v Mararike
& Ors HH325-14).
Also
Art 34 and 36 of the Uncitral Model Law empower the High Court as the
forum to set it aside an award on specified grounds.
For
the court to intervene on the basis of public policy however, the
infringement of public policy would have to be palpably outrageous.
The approach is to construe public policy restrictively. (See
Zimbabwe Posts (Pvt) Ltd v Communications & Allied Services
Workers Union HH60-14; Makonye v Ramodimoosi & Ors HH52 /14; Wei
Properties (Pvt) Ltd v S & T Export & Import (Pvt) Ltd
HH336/13).
The
Respondent's reasons in this case were that an alternative claim
for damages in lieu of reinstatement had not been made.
The
principle is indeed where reinstatement has been ordered that damages
be stated as an alternative to reinstatement.
This
argument was put forward against the backdrop of an outstanding
appeal in which the basis of the appeal is that the dismissal of the
applicant was warranted. As such the appeal should be heard since
dismissal of applicant is the real gist of its grievance.
The
Appeal Court will needless to say, address the way forward on damages
such as by ordering remittal for this issue to be addressed by the
arbitrator if deemed necessary.
Appeals
should not be heard through the back door.
Another
grievance said to justify non registration was that the computation
of tax should have been done on the whole figure instead of piece
meal as the piece method employed amounted to tax evasion.
In
my view this was an issue which if the respondent felt strongly
about, should have raised with the arbitrator within 30 days of
receipt of the award.
I
say this because Art 33(1)(a) of the Uncitral Model Law permits a
party, on notice to the other party, to request the arbitral tribunal
to correct any error in computation among other errors.
The
respondent's argument lacked merit and was simply one of
convenience and avoidance.
In
any event this court lacked the necessarily details to engage
effectively with this assertion. I was therefore of the view that
overall this was not a case of compelling need that justified
intervention.
Furthermore,
in allowing registration, I took into account that with interim
relief having been denied, Applicant also stood on firmer ground than
the respondent.
In
terms of section 92E(2) of the Labour Act, the general legal position
is that an appeal does not suspend the decision appealed against.
Also
in terms of section 92E(3), pending such determination, the Labour
Court may make such interim determination as the justice of the case
demands. (See Giya v Ribi Tiger Trading HH 57-14).
In
this case the Labour Court had already decided at the time I heard
the application for registration that interim relief did not meet the
justice of the case.
The
Respondents heads of argument had been very clear that the
application for interim relief which was pending at the time it filed
its case was central to its opposing registration.
What
was therefore instructive in registering the award was the fact that
the application for stay of execution had been dismissed. It remained
extant since it had not been stayed or suspended. (See Greenland v
Zimbabwe Community Health Intervention Research Project HH93/13).
Accordingly,
the above were my reasons for registering applicant's arbitral
award.
Messrs
Chambati Mataka & Makonese, applicant's legal practitioners
Matsikidze
& Mucheche Commercial Law Chambers, respondent's legal
practitioners