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South African Law • Jurisdictional Corpus
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Michael Manzini and Samuel Chitenderano Rwambiwa v Nedbank Zimbabwe Limited (formerly Merchant Bank of Central Africa)

CitationHH 572-25, HCH 5336/24
JurisdictionZW
Area of Law
Labour LawArbitration Law
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Civil Procedure

Facts of the Case

The applicants were former employees of the respondent bank who were retrenched on 21 November 2011. They disputed the calculation of their retrenchment packages. The dispute was referred to compulsory arbitration under s 93(5)(c) of the Labour Act. An arbitrator, M.C. Kare, issued an award on 8 February 2013 finding that the respondent had committed an unfair labour practice and ordered recalculation of retrenchment packages. On 10 November 2017, the arbitrator issued a quantification award specifying amounts payable to the applicants. The respondent challenged this award through review proceedings. After protracted litigation involving the Supreme Court, the Labour Court on 20 May 2024 granted the respondent's review application and set aside the 10 November 2017 arbitral award. The applicants then approached the High Court seeking registration of the arbitral award for enforcement under s 98(14) of the Labour Act, arguing that the Labour Court lacked jurisdiction to review the award and that its order was void ab initio.

Legal Issues

  • Whether the respondent's opposition was valid in the absence of a board resolution authorizing the deponent to swear the opposing affidavit
  • Whether an arbitral award that has been set aside by the Labour Court on review can be registered for enforcement under s 98(14) of the Labour Act
  • Whether the Labour Court has jurisdiction to review an arbitral award arising from compulsory arbitration under the Labour Act
  • Whether a court order setting aside an arbitral award can be disregarded as a nullity without being formally set aside on appeal or review

Judicial Outcome

The application was dismissed with no order as to costs.

Ratio Decidendi

The binding legal principles established are: (1) Where the authority of a deponent to act on behalf of a company is challenged, proof of such authority in the form of a board resolution must be produced, and failure to do so renders the purported pleading invalid (applying Dube v Premier Service Medical Aid SC 73/19); (2) For an arbitral award to be registrable under s 98(14) of the Labour Act, it must satisfy all requirements including that it is still extant and has not been set aside on review or appeal; (3) An arbitral award that has been set aside by the Labour Court on review cannot be registered for enforcement, regardless of whether the party challenges the validity of the review order; (4) A court order remains valid and binding unless and until it is set aside by an appropriate court exercising review or appellate jurisdiction; (5) In an application for registration of an arbitral award under s 98(14), the High Court has very limited jurisdiction and cannot determine contentious questions about the Labour Court's jurisdiction to review arbitral awards - such questions must be pursued through proper review or appellate channels.

Obiter Dicta

The court made several non-binding observations: (1) The court acknowledged the principle that courts must give special consideration to self-acting litigants and accommodate procedural shortcomings that are not fatal, citing Crnkovic v Mpofu CCZ 01-24; (2) The court noted that affidavits should not plead law and that legal arguments and case citations should be reserved for heads of argument, though it considered them in this case given the applicant was self-acting and the respondent did not object; (3) The court observed that the 2013 award ordering recalculation of retrenchment packages was not registrable as it did not sound in money - only the 2017 quantification award was capable of registration; (4) The court noted that the applicant's argument regarding the Labour Court's lack of jurisdiction under s 98(2) and (9) read with article 34 of the Model Law generates a debate that requires comprehensive determination by an appropriate appellate or review court, but expressed doubt about whether those provisions support the argument that s 92EE does not apply to compulsory arbitration awards; (5) The court commented on the respondent's dilatory approach in failing to produce the board resolution over 8 months despite the issue being raised, describing it as trying to "close the stable when the horse had already bolted."

Legal Significance

This case is significant in Zimbabwean labour law for several reasons: (1) It reinforces the strict requirement that companies must produce board resolutions when a deponent's authority to act on behalf of the company is challenged, following Dube v Premier Service Medical Aid SC 73/19; (2) It clarifies the limited jurisdiction of the High Court when considering applications for registration of arbitral awards under s 98(14) of the Labour Act - the court cannot usurp the review or appellate functions and must simply be satisfied that registration requirements are met; (3) It confirms that an arbitral award that has been set aside by the Labour Court on review cannot be registered for enforcement, even if the applicant challenges the validity of the review order; (4) It emphasizes that challenges to the jurisdiction of the Labour Court to review arbitral awards must be pursued through appropriate review or appellate proceedings, not collaterally in registration applications; (5) It demonstrates the principle that court orders have the force of law and remain binding unless set aside through proper channels, and cannot simply be disregarded even if alleged to be void for lack of jurisdiction.

Cases Cited in This Judgment

  • Delta Beverages (Sorghum Operations) and The Chairperson of the Disciplinary Committee N.O (Delta Beverages – Sorghum Operation) v Everson ChirauHH 421-18, HC 1601/18
    Considers

    Cited by respondent for the proposition that the issue of authority to depose to an affidavit is a factual enquiry, not a legal one, but distinguished by the…

  • Deputy Sheriff Chinhoyi v Appointed Enterprises and NSSA and Isaac MhakaHH450-13, HC 5770/13
    Cites

    Cited as one of a number of High Court cases relying on Madzivire to determine that proof of authority is necessary in all cases.

  • Folly Cornishe (Private) Limited and John Hamphreys v Shingirayi Tapomwa N.O. and OthersJudgment No SC 26/14, Civil Appeal No SC 300/11
    Applies

    Applied for the principle that a void order is void at all times and for all purposes and nothing can depend on it.

  • Harold Crown and Portriver Investments (Private) Limited v Energy Resources Africa Consortium (Private) Limited and Energy Resources Africa (Private) LimitedJudgment No. SC 3/2017, Civil Appeal No. SC 693/15
    Cites

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Cited as one of a number of High Court cases relying on Madzivire to determine that proof of authority is necessary in all cases.

  • Jocelyn Chiwenga v Constantine Guveya ChiwengaJudgment No SC 2/14, Civil Appeal No. SC 178/13
    Cites

    Cited for the principle that an extant order of the court must be obeyed or given effect to unless it has been varied or set aside.

  • Pretorius v Trustees of Ponders End Body Corporate and Earth Zone PropertiesCSOS 7586/GP/22 (Adjudication Order, 03 June 2024)
    Appeal From

    On 20 May 2024, per MAKAMURE J, the Labour Court granted the respondent's application for review and set aside the arbitral award dated 10 November 2017. Full…

  • Regis Magauzi v Francis Jekera and Sheriff for Zimbabwe N.O.SC 54/22, Civil Appeal No. 324/20
    Applies

    Applied for the principle that an order of court has the force of law and remains binding on the parties unless reversed or set aside.

  • Tian Ze Tobacco Company (Private) Limited v Vusumuzi MuntuyedwaHH 626/15, HC 10938/14
    Cites

    Cited as one of a number of cases that held that proof of authority was not necessary in all cases, which the Dube judgment noted were oblivious to Madzivire.

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