Seletje Construction & Management CC v City of Ekurhuleni Metropolitan Municipality (2020/44579) [2025] ZAGPJHC 1179 (20 November 2025)

Case Note

Seletje Construction & Management v City of Ekurhuleni Metropolitan Municipality (2020-44579) [2025] ZAGPJHC --- (20 November 2025)

Reportability

This case is reportable due to its significance regarding the application of section 17(1)(a) of the Superior Courts Act 10 of 2013, which outlines the standards for granting leave to appeal in South African law. The judgment addresses the heightened threshold required for leave to appeal and clarifies the factual and legal bases necessary for demonstrating reasonable prospects of success. Moreover, the decision's implications extend to the contractual obligations, arbitration awards, and public policy considerations within the South African legal framework, marking it as a pivotal ruling that could affect future arbitration and contractual disputes.

Cases Cited

• Ramakatsa and Others v African National Congress and Another (724/2019) [2021] ZASCA 31 (31 March 2021)
• S v Smith 2012 (1) SACR 567 (SCA), [2011] ZASCA 15
• Mont Chevaux Trust v Tina Goosen, LCC 14R/2014 (unreported)
• Notshokovu v S, case no: 157/2015 [2016] ZASCA 112 (7 September 2016)
• Acting National Director of Public Prosecutions and Others v Democratic Alliance In Re: Democratic Alliance v Acting National Director of Public Prosecutions and Others (19577/09) [2016] ZAGPPHC 489 (24 June 2016)
• Telcordia Technologies Inc v Telkom SA Limited 2007 (3) SA 266 (SCA)

Legislation Cited

• Superior Courts Act 10 of 2013
• Arbitration Act 42 of 1965

Rules of Court Cited

No specific rules of court were cited in this judgment.

HEADNOTE

Summary

The case revolves around an application for leave to appeal following a previous decision in favor of the applicant, Seletje Construction & Management CC, concerning an arbitration award. The respondent, City of Ekurhuleni Metropolitan Municipality, contested the decision, asserting errors in the interpretation of the contract and the expiration thereof. Ultimately, the court granted the respondent leave to appeal based on the assessment that there exists a reasonable prospect of success in the anticipated appeal.

Key Issues

The key legal issues addressed in this case include the applicable standard for granting leave to appeal under section 17 of the Superior Courts Act, the determination of whether the arbitration award should become an order of the court, and considerations around the nature and status of the contractual agreement between the parties, particularly its expiration.

Held

The court held that the respondent met the requirements for granting leave to appeal, indicating that another court could potentially arrive at different factual findings or legal conclusions regarding the issues raised. The court recognized the evolving interpretation of reasonable prospects of success under the Superior Courts Act, thereby granting the leave to appeal.

THE FACTS

Seletje Construction & Management CC and the City of Ekurhuleni Metropolitan Municipality entered into a contract on 4 April 2019, which was subsequently subjected to arbitration due to disputes that arose between the parties. An arbitration award was handed down by Mr. P F Rossouw SC on 3 July 2021, which was published on 1 September 2021. The respondent's application for leave to appeal is rooted in a judgment delivered on 17 September 2025, which dismissed their counter-application that contended that the agreement had expired due to effluxion of time.

The respondent contested the finding by the presiding judge that allowed the applicant to continue with the contract, claiming there was no merit in the arguments presented. The respondent alleged various errors made by the court concerning the interpretation of contractual obligations and public policy considerations.

THE ISSUES

The legal questions the court had to decide included whether the applicant had demonstrated grounds for the court to grant leave to appeal and if the criteria established by section 17 of the Superior Courts Act had been satisfied. Furthermore, the court needed to evaluate the validity of the respondent's claims regarding the past arbitration award and its implications on the ongoing contractual obligations of both parties.

ANALYSIS

In its analysis, the court carefully assessed the grounds for leave to appeal as posited by the respondent, highlighting the necessity for a clear showing of reasonable prospects of success. The court remarked on the appropriateness of deferring to prior judgments for guidance on what constitutes reasonable possibilities of differing conclusions by appellate courts. This effectively raised the bar for demonstrating grounds for leave under the new legislative framework instituted by the Superior Courts Act.

The court further elucidated upon the nature of the arbitration award and its implications for the contractual relationship between the parties. It addressed the respondent's claims concerning the expiration of the contract and the perceived obstruction in dispute resolution by the applicant. Ultimately, the court concluded that despite previous findings, the issues raised warranted a more thorough examination by a higher court.

REMEDY

The court ordered that the respondent's application for leave to appeal was successful. It granted the respondent leave to appeal to the Full Court of the Gauteng Division and specified that the costs of the leave to appeal application would be resolved in line with the outcome of the appeal itself.

LEGAL PRINCIPLES

The case establishes important legal principles regarding the standards for granting leave to appeal in South African law, particularly the necessity of demonstrating reasonable prospects of success that are not merely theoretical. The ruling also reinforces the application of arbitration awards in disputes, underscoring the enforcement of such decisions against public policy and contractual compliance considerations. The clarification of these procedural standards enhances the predictability of outcomes within the legal landscape involving contractual and arbitration matters.