Gutsche Family Investments (Pty) Ltd v Mettle Equity Group (Pty) Ltd

The appellants and the first respondent concluded a sale agreement containing an arbitration clause incorporating the rules of the Arbitration Foundation of Southern Africa (AFSA). A dispute arose in which the appellants claimed payment of R4 803 558.89. The first respondent admitted the debt but raised a counterclaim based on alleged breaches of warranties, asserting set-off. The appellants excepted to the counterclaim. The arbitrator dismissed one exception and partially upheld another, effectively preventing a final award at that stage. The appellants sought to appeal this interlocutory ruling to an appeal arbitrator. The appeal arbitrator assumed jurisdiction, held the ruling appealable, and decided the merits in favour of the appellants. The first respondent successfully reviewed and set aside that award in the High Court, leading to this appeal to the Supreme Court of Appeal.

The appeal was dismissed with costs.

The case clarifies South African arbitration law by confirming that, unless expressly agreed otherwise, appealability in arbitration under AFSA rules mirrors appealability in civil proceedings before the SCA. It also affirms that arbitrators and appeal arbitrators cannot finally determine their own jurisdiction without clear agreement, reinforcing judicial supervision of arbitral jurisdiction.