Atakas Ticaret Ve Nakliyat AS v Glencore International AG

Atakas Ticaret Ve Nakliyat AS, a Turkish company, purchased a consignment of coal from Glencore International AG. The coal was loaded at the Richards Bay Coal Terminal onto the MV Cecilia B, which Atakas had chartered. Shortly after loading, an explosion occurred in one of the cargo holds, allegedly caused by heated coal that ignited after loading. The voyage was abandoned and the cargo discharged. Atakas instituted a delictual admiralty action against the terminal operator, RBCT. RBCT raised a special plea contending that Atakas’ remedies lay in contract against the seller, Glencore. As a result, Atakas applied in terms of s 5(1) of the Admiralty Jurisdiction Regulation Act 105 of 1983 (AJRA) to join Glencore as a third defendant. Glencore opposed the joinder, relying primarily on an arbitration clause in the sale contract and the International Arbitration Act 15 of 2017. The High Court refused the joinder, holding that arbitration made joinder futile, prompting this appeal.

The appeal was upheld with costs. The High Court order was set aside and replaced with an order joining Glencore International AG as the third defendant under s 5(1) of the AJRA, granting Atakas leave to supplement its particulars of claim, and directing Glencore to pay the costs of opposing the joinder application, including the costs of two counsel.

The case clarifies the relationship between the Admiralty Jurisdiction Regulation Act and the International Arbitration Act, confirming that international arbitration agreements do not automatically override the wide discretionary powers of South African admiralty courts. It reaffirms the breadth of s 5(1) of the AJRA and the importance of avoiding fragmented and parallel proceedings in maritime disputes, which are frequently subject to arbitration clauses.