Synopsis:
Housing Consumers Protection Measures Act 95 of 1998 –
section 10(1) – requires registration of home builder to receive
consideration for work done – no infringement of unregistered
home builder’s rights to property and to access to courts
Application to have arbitration award made an order of court –
statutory prohibition precluding court from making arbitral award
an order of court – would amount to a court sanctioning an
illegality.
Application for leave to appeal against the judgment and order of the Supreme Court of Appeal. The applicant had entered into a building contract with the respondent without being registered as required by section 10(1) of the Housing Consumers Protection Measures Act 95 of 1998. A dispute arose and was arbitrated. An arbitration award was issued in favour of the applicant under the Arbitration Act 42 of 1965, which the High Court made an order of Court. The Supreme Court of Appeal reversed the order of the High Court. It held that Cool Ideas CC was required by the statute to be registered before it transacted. The Court confirmed the order of the Supreme Court of Appeal stating that the Act made it clear that Cool Ideas was prohibited from commencing building works whilst it was unregistered. It found further that it would be condoning illegality if it were to enforce the arbitration award. The court granted leave to appeal but dismissed the appeal.
Judgment: Majiedt AJ (Moseneke ACJ, Skweyiya ADCJ, Khampepe J and Madlanga J concurring)
Separate concurrence: Jafta J (Zondo J concurring)
Dissent: Froneman J (Cameron J, Dambuza AJ and Van der Westhuizen J concurring)