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Minister Gwede Mantashe's decision on new fuel licence operators key as court orders closure. Picture: GWEDE MANTASHE/X
Minister Gwede Mantashe's decision on new fuel licence operators key as court orders closure. Picture: GWEDE MANTASHE/X

Two Shell petrol station owners have been compelled by a Western Cape High Court order to shut down their fuelling operations or face arrest. 

The court ruled that Shell Ottery owners Shiraaz Kalla and Mohammed Kalla stop their business pending a long-awaited decision from minister of mineral & petroleum resources Gwede Mantashe regarding an appeal on their new licence.

An order last April by the Supreme Court of Appeal gave the greenlight to existing fuel retail licence holders to challenge the approval of new licences. However, the new licences will be suspended until Mantashe decides on the matter.   

The minister will determine if there is a need for another competing filling station to trade close to the existing ones.

An existing station, Sasol Ottery, lodged an appeal against the new licence holders, Shell Ottery with the department of mineral & resources last August.

The Kallas lost an appeal in the Western Cape High Court on Monday and have taken the matter to the Constitutional Court, arguing the appeal court judgment was unlawful. This is their second legal blow and they face arrest should they fail to close shop.

In December, the court issued an order interdicting and restraining the Shell Ottery owners from operating pending the outcome of the internal appeal from Mantashe.

Shell Ottery, however, continued operations, having lodged an appeal against the high court order. They argued that the order was suspended while the appeal was pending.

In his ruling on Monday, judge James Lekhuleni was scathing against Shell Ottery’s counsel, criticising arguments that the previous court order was suspended pending appeal. 

“The respondents’ [Shell] application for leave to appeal filed in this court and in the Constitutional Court on December 17 2024 did not suspend the operation of the interim interdict issued by this court,” he said.

“It is a dangerous thing for a litigant to ignore an order of court wilfully. More so, it is a crime to unlawfully and intentionally disobey a court order. Court orders must be obeyed until they are set aside, or chaos may result if people are allowed to disregard them without consequences,” he said.

Lekhuleni ordered the Shell owners to close shop within 24 hours [from Monday] or face three months’ imprisonment.

“Should the respondents fail to comply with this order within a period of 24 hours, the registrar is authorised to issue the required warrants for the respondents, and the SAPS shall be authorised to arrest the respondents and hand them to the relevant prison authorities.”

Shell has already stopped supplying fuel to the station pending the legal rodeo.

“On December 11 2024, the respondents received a call from Shell advising them that Shell had received notice from the department that their petrol station had to cease trading immediately.

“Shell insisted that there was a court order obliging the respondents to close the station and that Shell was not going to proceed with the scheduled fuel deliveries.” 

It is unclear when Mantashe will announce his decision on the licences.

sinesiphos@businesslive.co.za

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