Time Projects wins P8 million against Gabz FM

Staff Writer | Thursday November 9, 2017 08:42

The issue before Justice Leburu was whether the adjudication award rendered on January 26, 2017 by an adjudicator, Brian Davey should be made an order of the court.

Time Projects and Your Friend had entered into a development agreement on August 31, 2011 under which the applicant would develop two buildings on Media Property’s plot.

The area is currently occupied by the first respondent, Gabz FM and has another building on the property, which was sold by sectional title.

“A dispute arose when the applicant sought to be paid the contract price, which was payable in terms of Clause 2 of the development agreement,” Leburu said.

“After attempts to have the respondents agree to have the dispute resolved by adjudication, as envisaged in the development agreement, the applicant launched an application to this court, on notice of motion, for an order declaring that the dispute between the applicant and the respondents be referred to adjudication, in accordance with the development agreement.”

The respondents argued that the adjudication award should not be made an order of the court because the first respondent assigned all its rights and duties under the development agreement to the second respondent and thereby ceased to be party to the said development agreement.

Leburu said in his view, the argument held no merit in that the two respondents in their answering affidavit filed on February 19, 2016 said they had no issues with both being joined and cited.

“Not only that, the two respondents unequivocally expressed their substantial interest in the matter.

On that basis, the adjudicator had jurisdiction over the two respondents.”

In conclusion, the respondents failed to thwart the present enforcement application.

Then the judge ordered that: “the adjudication award between the applicant and the respondents dated the 26th January 2017 is hereby made an order of court.

“Judgment is entered into in favour of the applicant in the sum of P8,274,049.00”.

The respondents were also ordered to pay interest on the outstanding amount at 10% per annum from November 26, 2015.

They were also ordered to pay costs of suit, on ordinary scale. Attorney Sipho Ziga represented Time Projects while Advocate Mpho Garebatho and Lone Morapedi appeared for the respondents.