COURT ORDERS GALP TO RESTORE FUEL SUPPLY

MBABANE – The court has ordered Galp Eswatini (PTY) Limited to forthwith restore supply of fuel and fuel products to Big Tree Filling Station.

The order was issued by Principal Judge Qinisile Mabuza yesterday.

Principal Judge Mabuza further dismissed a counter-application which had been filed by Galp, where it was seeking an order to evict Big Tree Filing Station. 

The court said Galp Eswatini was at liberty to invoke the arbitration clause in the franchise agreement in respect thereof.

The order by the court comes after Big Tree Filling Station filed an urgent application at the High Court where it was praying for an order directing Galp Eswatini (PTY) Limited to restore forthwith the supply of petroleum products to its fuel station situated at Big Tree Complex, Matsapha Industrial Site. 

In his founding affidavit, Managing Director of the filling station, Issufomia Calu, informed the court that applicant’s (Big Tree Filling Station) was a franchise which sold petroleum products supplied by Galp and other products approved by it. He highlighted that as a franchise, the business could not sell any other products except those approved by Galp. 

He narrated to the court that on September 30, 2020, the applicant placed an order for the supply of fuel.  

“The process by which orders for the supply of fuel is that the applicant places an order and Galp would give a reference number over the phone. Galp would then deliver the fuel the next day subject to the payment for the fuel made up front,” submitted Calu.

He told the court that the applicant had prepaid for the supply of fuel and had allegedly made an advance payment of approximately E3 600 308.75, which was about seven loads of fuel.

“Despite having placed the orders, Galp did not deliver the fuel orders. I later learnt from the applicant’s employees that Galp informed them that it will no longer deliver fuel with effect from October 1, 2020,” contended the managing director of the filling station.

Order

Calu averred that he sent an email to Galp on October 1, 2020, enquiring about the non-delivery of the fuel order but the email was not responded to.

According to Calu, on October 2, 2020, Galp responded, advising that it would no longer be supplying the applicant with fuel unless it agreed to sign a new franchise.

 “Galp has not supplied the fuel and the applicant no longer has fuel and in-turn it cannot supply its customers. The applicant’s business operations have come to a halt given that the sale of fuel and fuel products is its main business,” contended Calu.

According to Calu, the applicant possessed the right to be supplied with petroleum products so long as it operated the filling stations and paid for the products.

He further pointed out that the applicant owned the filling stations’ business under the Galp franchise and its ownership extended to the right to be supplied with the petroleum products.  The right to receive supply, according to Calu, was an integral part of the applicant’s ownership of the business and could not be dispossessed of without due process. 

“I respectfully submit that the right to supply of fuel is a proprietary right that inheres to the operator of the filling station. It is a proprietary right that the applicant possesses by virtue of its ownership of the filling station business,” he argued.

He stated that on October 2, 2020, Galp allegedly advised the applicant that it would no longer supply the latter with petroleum products.  Calu contended that the effect of this was that the applicant’s business had grounded to a halt. “Galp has effectively stopped the applicant from operating its business without due legal process. Galp took the law into its own hands and has no right to do so,” averred the managing director.

Appearing for the applicant are lawyers Mangaliso Magagula and Zweli Hlophe of Magagula Hlophe Attorneys while appearing for Galp Eswatini is Kenneth Motsa of Robinson Bertram.

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