Before,
ZIYAMBI
JA:
In
chambers in terms of Rule 5 of the Supreme Court Rules.
The
applicant sought an order interdicting the respondents from levying
execution on its property pending an appeal against an order of the
High Court refusing it a stay of execution.
The
matter was brought before me as an urgent application.
The
respondents, who are former employees of the applicant, were
dismissed by the latter for misconduct. The arbitrator to whom the
dispute was referred found that the respondents had been unlawfully
dismissed and ordered their reinstatement. Following a failure by the
applicant to reinstate them, the respondents sought quantification of
the award by the arbitrator who granted them sums totalling
approximately US$308,000.
The
respondents caused the order to be registered in the High Court and
commenced the process of execution. The applicant's property was
attached and scheduled for removal and sale.
Both
the arbitral award and the quantification thereof were, at that time,
the subject of appeals before the Labour Court.
The
High Court found, firstly, that it had no jurisdiction to grant the
order sought since the matter was on appeal before the Labour Court
to which the applicant should have made an application to suspend
execution of the order. Secondly, that the applicants ought to have
exhausted their domestic remedies before approaching it.
It
was submitted on behalf of the applicants that the learned Judge
erred in declining jurisdiction and refusing to consider the merits
of the application for a stay of execution since the arbitral award
became an order of the High Court upon registration in that court and
was suspended pending the appeals which were before the Labour Court.
In the circumstances only the High Court could entertain an
application for stay of execution of the award. See Net
One
Cellular
(Pvt) Ltd v Net One Employees & Anor 2005
(1) ZLR 275 (S).
The
respondents however argued that an appeal against an arbitrator's
award is an appeal in terms of the Labour Act [Cap 28:01] (“the
Act”) and is not suspended pending appeal. They referred me to
Zimphosphate
v Matora & Ors
SC44/2005.
The
decision in the Net
One Cellular case
(supra),
they argued, was given prior to the introduction of section 92E of
the Act and in Zimbabwe
Open
University
v Gideon
Magaramombe
& Deputy
Sheriff
Harare
N.O
SC
20/12
it was decided that it was within the Labour Court's powers to
suspend the execution of an arbitral award. Accordingly, the
applicant ought to have proceeded, in terms of section 92E(3) of the
Act, to apply to the Labour Court for a stay of execution pending
appeal which it failed to do.
It
was submitted that the High Court was correct in holding that it
lacked jurisdiction to grant the order on the basis that the matter
was now before the Labour Court in terms of section 92E.
They
submitted that the application before me was not urgent, that the
applicant had been lax in safeguarding its rights, and that this
application constituted an abuse of process.
As
Mr Mpofu
submitted, there appears to be a divergence of legal authority on the
question as to whether or not, on a proper consideration of section
92E and section 98(10) of the Act, it can be concluded that appeals
on points of law from an arbitrator's decision in terms of section
98(10) would operate to suspend the execution of the judgment
appealed against. See for example Nyasha
v Dodhill
SC28/09; Net One Cellular
(supra);
Tel
One (Pvt) Ltd v Communication & Allied Services Workers' Union
of Zimbabwe 2007
(2) ZLR 262 (H).
Divergent
positions, he submitted, create uncertainty.
He
submitted that once the order was registered as an order of the High
Court, execution was suspended and leave of the High Court was
required to execute the judgment pending the determination of the
appeals. Accordingly, the execution against the applicant's
property was unlawful, having been undertaken without leave of the
High Court.
Although
by the time of the hearing of this application, the appeals before
the Labour Court had been dismissed, the applicant had applied for
leave to appeal to the Supreme Court in terms of section 92F of the
Act.
Further,
it was submitted that the sheer magnitude of the arbitrator's award
the execution of which could cause the shutdown of the University was
prima
facie
evidence of unreasonableness and it was within the power of this
Court to act in terms of section 25 of the Supreme Court Act
[Cap7:13] and review the award of the arbitrator.
A
warrant of execution had already been issued and the entire library
of the University as well as all its vehicles have been attached and
are awaiting removal for sale by the Deputy Sheriff.
The
respondents, it was submitted, would not be prejudiced by the grant
of the order sought and the balance of convenience favoured the
applicant.
I
granted the application at the end of the hearing because I was of
the view that, the award having become an order of the High Court
upon registration by that court, the court a
quo
misdirected itself in holding that it did not possess the
jurisdiction to grant the order sought. It may be that a Bench of
three Judges of the Supreme Court may come to a different conclusion
but the very fact of a divergence of positions on this issue of law
is what causes me to conclude that the applicant has established a
prima
facie
right entitling it to the order sought.
The
balance of convenience favours the applicant and a refusal to grant
the order would have rendered the appeal academic.
As
to the invitation to act in terms of section 25 of the Supreme Court
Act, as well as the submission that the arbitrator's award is prima
facie
unreasonable it was my view that this was a matter best dealt with by
the Court itself, and not by a single judge.
It
was therefore ordered as follows:
“Pending
the determination of the appeal filed under case reference SC360/12,
the following interim relief is granted:-
1.
The first, second and third respondents shall not do, allow to be
done or cause to be done anything the effect of which is to commence
or continue with the levying of execution of the judgment obtained
under case No. HC2288/12, the stay of execution of which was refused
under case no. HC12199/12 and which refusal is now the subject of
appeal before this Court”.
2.
Costs of this application shall be in the cause”.
Ziumbe
& Partners,
applicant's legal practitioners
Kadzere,
Hungwe & Mandevere,
respondents' legal practitioners