Former Way Trade & Invest (Pty) Ltd v Bright Idea Projects 66 (Pty) Ltd

Bright Idea Projects 66 (Pty) Ltd (trading as All Fuels) owned premises in Pietermaritzburg from which Former Way Trade & Invest (Pty) Ltd operated a Caltex service station under a franchise agreement that ultimately expired on 31 December 2017. Former Way acquired the business through a cession of the existing franchise agreement, which conferred no right of renewal. After expiry, Former Way refused to vacate, alleging that a new five‑year franchise agreement with a further renewal option had been agreed, alternatively that eviction proceedings should be stayed pending arbitration under s 12B of the Petroleum Products Act 120 of 1977. The High Court rejected these contentions, granted eviction, and refused leave to appeal. Petitions for leave to appeal were also refused, leading to an application for reconsideration under s 17(2)(f) of the Superior Courts Act 10 of 2013.

The application for reconsideration was dismissed. The earlier order refusing leave to appeal was confirmed, and the applicant was ordered to pay costs, including the costs of two counsel.

The case clarifies that s 12B arbitration under the Petroleum Products Act does not suspend or oust the jurisdiction of the courts in eviction proceedings and cannot be used to fabricate contractual rights of occupation. It reinforces principles governing concluded contracts, the onus on unlawful occupiers, and the limited scope of statutory arbitration in the petroleum sector.