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HH134-10 - HERBERT SAURAMBA and 113 OTHERS vs MITCHELLS BAKERY MUTARE

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Labour Law-viz arbitration re arbitral award.

Labour Law-viz labour arbitration re registration of arbitral award.
Labour Law-viz conciliation re certificate of settlement.
Labour Law-viz labour arbitration re registration of arbitral award iro section 98(14) of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re registration of labour arbitral award iro section 98(14) of the Labour Act [Chapter 28:01].
Procedural Law-viz final orders re doctrine of effectiveness.
Procedural Law-viz final orders re doctrine of effectiveness iro brutum fulmen judgment.
Procedural Law-viz rules of court re High Court Rules iro Rule 322.
Procedural Law-viz rules of court re High Court Rules iro Rule 323.
Procedural Law-viz writ of execution re Rule 322.
Procedural Law-viz writ of ejectment re Rule 323.
Procedural Law-viz audi alteram partem rule.
Labour Law-viz quantification of damages re audi alteram partem rule.

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

In this matter, the applicants, all employees of the respondent company, had a grievance concerning non-payment of wages. The parties went for arbitration and an award was made in favour of the applicants on 14 November 2010.

The applicants now seek to register the award with this court.

The arbitral award reads as follows-

“6. Award

Wherefore, after hearing this case, I make the following order.

1. That the employer had partially fulfilled what was arrived and agreed at the conciliation stage at the Ministry of Labour which culminated in a Certificate of Settlement.

2. The respondent pays all outstanding salaries by end of February 2010; in the event that respondent fails to pay by that date that it pays with interest at the prevailing bank rates.

3. That both parties share the cost of this arbitration.”

This application is made in terms of section 98(14) of the Labour Act [Chapter 28:01] which provides as follows-

“Any party to whom an arbitral award relates may submit for registration the copy of it furnished to him in terms of subsection (13) to the court of any magistrate which would have had jurisdiction to make an order corresponding to the award had the matter been determined by it, or, if the arbitral award exceeds the jurisdiction of any magistrates court, the High Court.”

Final Orders re: Doctrine of Effectiveness, Brutum Fulmen Orders, Fait Accompli, Academic Judgments & Doctrine of Mootness

I am inclined to decline the application for the reason that the award sought to be registered does not sound in money.

I am referred to the judgement of my learned sister MAKARAU JP..., in Thandiwe Mandiringa v National Social Security Authority and five other similar applications dealt with together for purposes of convenience HH98-05.

I am in entire agreement with the reasoning in that judgement.

As correctly observed in that judgement; the purpose of registering arbitral awards is to enable the applicant to execute upon the awards by the issue of writs out of the Magistrate Court or the High Court.  In terms of Rule 322 and Rule 323 of the High Court Rules, 1971, a writ may be issued in execution of a judgement in terms of which an order in respect of the payment of money, the delivery up of goods or premises, or for ejectment.

It follows that any order or judgement falling outside the above categories cannot be executed upon the issuance of a writ.

Audi Alteram Partem Rule re: Approach, Orders Granted Without a Hearing and the Doctrine of Notice

It has been argued that the award under present consideration is that kind of award which, although not sounding in money itself, by its terms and wording, gives rise to a formula by which its monetary value can be calculated.

Indeed, the applicants have calculated what is due to them in terms of their contracts of employment. However, that calculation was not part of the award itself.

The resultant figure has been captured by one party to the dispute and has not been subjected to the determination of an impartial arbitrator, nor has it been shown to have been agreed to by the respondents.

The figure, to all intents and purposes, remains a mere claim until such time it has been adjudicated upon and made part of the arbitral award.

For these reasons, the application is dismissed with costs.

CHIWESHE JP:  In this matter the applicants all employees of the respondent company had a grievance concerning non payment of wages.  The parties went for arbitration and an award was made in favour of the applicants on 14 November 2010.

            The applicants now seek to register the award with this court.  The arbitral award reads as follows:-

“6.  Award

Wherefore after hearing this case I make the following order.

1.      That the employer had partially fulfilled what was arrived, and agreed at the conciliation stage at the Ministry of Labour, which culminated in a certificate of settlement.

2.      That respondent pays all outstanding salaries by end of February 2010, in the event that respondent fails to pay by that date, that it pays with interest at the prevailing bank rates.

 

That both parties share the cost of this arbitration.”

 

            This application is made in terms of s 98 (14) of the Labour Act [Cap 28:01] which

provides as follows:

“Any party to whom an arbitral award relates may submit for registration the copy of it furnished to him in terms of subsection (13) to the court of any magistrate which would have had jurisdiction to make an order corresponding to the award had the matter been determined by it, or, if the arbitral award exceeds the jurisdiction of any magistrates court, the High Court.”

           

I am inclined to decline the application for the reason that the award sought to be registered does not sound in money. I am referred to the judgment of my learned sister MAKARAU JP (as she then was) in Thandiwe Mandiringa vs National Social Security Authority and five other similar applications dealt with together for purposes of convenience - HH 98-2005.

            I am in entire agreement with the reasoning in that judgment.  As correctly observed in that judgment, the purpose of registering arbitral awards is to enable the applicant to execute upon the awards by the issue of writs out of the magistrate court or the High Court.  In terms of Rules 322 and 323 of the High Court Rules 1971, a writ may be issued in execution of a judgment in terms of which an order in respect of the payment of money, the delivery up of goods or premises or for ejectment.  It follows that any order or judgment falling outside the above categories cannot be executed upon by the issuance of a writ.  It has been argued that the award under present consideration is that kind of award which although not sounding in money itself, by its terms and wording gives rise to a formula by which its monetary value can be calculated.  Indeed the applicants have calculated what is due to them in terms of their contracts of employment.  However, that calculation was not part of the award itself.

            The resultant figure has been computed by one party to the dispute and has not been subjected to the determination of an impartial arbitrator, nor has it been shown to have been agreed to by the respondents.  The figure to all intents and purposes remains a mere claim until such time as it has been adjudicated upon and made part of the arbitral award.

            For these reasons the application is dismissed with costs.

 

 

 

 

 

 

 

 

 

Maunga Maanda & Associates, applicants' legal practitioners

Bvekwa Legal Practice, respondent's legal practitioners
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