THE SUPREME COURT OF APPEAL
REPUBLIC OF SOUTH AFRICA

MEDIA STATEMENT – CASE HEARING IN SUPREME COURT OF APPEAL
 
Agricultural Research Council v Bredell and Others

Supreme Court of Appeal -539/03 Hearing date: 2 November 2004
  Judgment date: 2 December 2004
Rule 17.7 of Agricultural Research Council Pension Fund - increase of gratuity by employer – obligation to pay the Fund and not the member – unauthorised payment not recoverable from member.

Media Summary of Judgment

From: The Registrar, Supreme Court of Appeal

THE AGRICULTURAL RESEARCH COUNCIL v G S BREDELL & OTHERS

Please note that the media summary is intended for the benefit of the media and does not form part of the judgment of the Supreme Court of Appeal.

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The Supreme Court of Appeal today dismissed an appeal by the Agricultural Research Council (‘ACR’) against a judgment of the Transvaal Provincial Division of the High Court.

The ACR contended that payments made by it to the Agricultural Research Council Pension Fund to increase gratuities payable by the Fund to the respondents were unauthorised, constituted payments to the respondents through the medium of the Fund, which merely acted as conduit, and were therefore recoverable from the respondents.

The High Court held that the payments had been authorised and dismissed the ARC’s claim for repayment of the amounts paid.

In dismissing the appeal the SCA, assuming in favour of the ARC that the payments had not been authorised, held that the payments were made to the Fund and that any claim the ARC might have for repayment of the amounts paid, is a claim against the Fund.