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# South Africa: South Gauteng High Court, Johannesburg
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[2022] ZAGPJHC 824
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## Nyama and Chips CC and Another v Naheel Investments (PTY) Ltd: In re: Naheel Investments (PTY) Ltd v Nyama and Chips CC and Another (2017/20038)
[2022] ZAGPJHC 824 (21 October 2022)
Nyama and Chips CC and Another v Naheel Investments (PTY) Ltd: In re: Naheel Investments (PTY) Ltd v Nyama and Chips CC and Another (2017/20038)
[2022] ZAGPJHC 824 (21 October 2022)
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sino date 21 October 2022
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#### REPUBLIC OF SOUTH AFRICA
REPUBLIC OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
LOCAL DIVISION, JOHANNESBURG)
Case
No:
2017/20038
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED.
21/10/2022
In
the matter between:
NYAMA
& CHIPS CC
(REGISTRATION
NUMBER: 2009/223228/23)
First applicant
MARIO
ANDREOU
(IDENTITY
NUMBER:[....])
Second applicant
and
NAHEEL
INVESTMENTS (PTY) LTD
(REGISTRATION
NUMBER: 2009/023064/07)
Respondent
In
Re:
NAHEEL
INVESTMENTS (PTY) LTD
Plaintiff
and
NYAMA
& CHIPS CC
First defendant
MARIO
ANDREOU
Second defendant
JUDGMENT
TLHOTLHALEMAJE,
AJ:
Introduction
and background:
[1]
The first
and second applicants, who are the defendants in the main action,
seek an order rescinding a default judgment granted
by Van Vuuren AJ
on 18 September 2017
[1]
in favour of the respondent.
[2]
In its combined summons resulting in the default order being sought
and granted,
the respondent as the plaintiff in the main, based its
cause of action on an alleged breach of a written agreement of lease
entered
into with the first applicant on 2 October 2015. The first
applicant is a fast food franchise, and the premises leased to it are
situated in a mall where it was to operate its restaurant. The lease
agreement was due to expire on 30 September 2020.
[3]
In accordance with the particulars provided in the lease agreement,
the first
applicant's
domicilium citandi et executandi
for all
purposes is recorded as
[....] K [....] D [....] Sandton 2l46 (P,
O. Box 652212 Benmore 2010),
or any such other address as it may
from time to time appoint in writing.
[4]
The second applicant, (Mr Andreou) Andreou, had represented the first
applicant when
the lease agreement was signed. He had also signed a
deed of suretyship on 15 September 2015, binding himself as
co-principal debtor
to that agreement. He chose
Unit [....] T
[....] A [....], M [....] L [....] P [....], Ext [....], [....]
as the
domicillum et executandi
for all purposes under the
Deed of Suretyship.
[5]
The applicants’ case is that the first applicant was due to
open for business
on 15 October 2015. It was discovered that the
respondent had not made provision for the installation of gas in the
premises to
enable it to conduct its fast food business. It appeared
that there was a dispute between the service providers in the mall as
to which entity was to operate the gas installation, which the
respondent ought to have attended to. This dispute went unresolved
between 15 October 2015 to 30 March 2017. During that period, the
first applicant was forced to purchase its own gas in 19 kg cylinders
at a costs of about R113,438.29, in order to carry on its business.
The applicants therefore held the view that the respondent
did not
perform in accordance with its obligations which required it to
provide the first applicant with a gas supply sufficient
for it to
operate its twelve-burner grill and ancillary gas appliances. It was
alleged that the respondent was in breach of the
lease agreement, and
therefore not entitled to enforce the agreement.
[6]
The respondent’s case was that it had no obligation under the
agreement to supply
the first applicant with gas, and that the latter
failed to comply with the terms of the lease by failing to pay rental
and other
amounts for which it was liable. It was submitted that the
first applicant had instead repudiated its obligations in terms of
the
agreement by prematurely vacating the premises in April 2017. It
was further contended that as at 1 June 2017, the applicants were
jointly and severally indebted to the respondent in the sum of R261
623.34, which represented total arrear rentals and other amounts
with
interest thereon, from 1 June 2017 to date of final payment. The
respondent further claimed damages sustained as a result
of first
applicant’s unlawful repudiation of the lease, and other costs
incurred to restore the premises to the same condition
that it was at
the commencement of the lease.
[7]
On 13 and 14 June 2017, the respondent served the combined summons
and particulars
of claim commencing action on the first applicant and
on Andreou. The service of summons in accordance with the Sheriff’s
return of service occurred by way of affixing to the principal doors
of both premises. Andreou, who had deposed to the founding
affidavit,
contends that none of the applicants were aware of the service or the
default judgment until on 16 October 2017, when
the sheriff served a
warrant of execution.
The
delay:
[8]
In opposing the application, the respondent had submitted that the
applicants had
not provided a reasonable explanation for their delay
in bringing this application. This was due to the common cause facts
that
the applicants became aware of the judgment on 16 October 2017,
and had only launched this application on 8 April 2021, some three
years and five months later.
[9]
The
applicants’ contention was that as could be gleaned from
paragraph 13 of the founding affidavit, the application was brought
in accordance with the provisions of the common law, and ‘insofar
applicable’ in accordance with rule 31(2)(b)
[2]
.
Notwithstanding this contention, it is recorded in the parties’
joint practice note that
the
application is brought in accordance with the provisions of the rule
31(5)(b) of the Uniform Rules of Court
[3]
,
insofar applicable, and in accordance with the provisions of the
common law.
Furthermore,
it is recorded that; “
Only
insofar that the provisions of rule 31(5), or any other provision of
rule 31(5) of the Uniform Rules of Court, may be of application,
an
order is sought condoning applicant's non-compliance and extending
the time period for the filing of this application.”
[10]
Rule
31(2)(b)
[4]
makes provision for time frames within which rescissions ought to be
launched, and the Court may upon good cause being shown, grant
the
rescission. Equally so, rule 31(5)(d) makes provision for similar
time frames. Be that as it may, and to the extent that the
applicants
insisted that reliance was placed on rule 31(2)(b) ‘insofar as
applicable’, it is apparent that there are
excessive delays
between the applicants’ knowledge of the default order, and the
timing of the rescission application. The
latter provisions imply
that the applicants ought to have brought the application within 20
days of having knowledge of the judgment,
or at the very least,
explained the delay in not doing so timeously.
[11]
The delay
amounts to some three and half years, which is excessive in the
extreme. Notwithstanding the fact that reliance was placed
on Rule
31(2)(b) ‘insofar as applicable’, or the fact that the
application was brought in terms of the common law,
it has long been
stated that the requirement for good cause under Rule 31(2)(b) and
for sufficient cause under the common law is
the same
[5]
.
It was brought to the applicants’ attention by the respondent
in the answering affidavit that no condonation was sought.
The
applicants however insists that no such application was required,
which on the facts is an incorrect posture. Indeed such an
application was required.
[12]
In the founding affidavit, the applicants in an attempt to explain
the excessive delay
in bringing this application merely attributed
blame on at least no less than six set of attorneys that were
instructed since 18
October 2017 to launch the application, but had
failed to do so. Andreou averred that at various stages since
knowledge of the
default order, the applicants had instructed, Goodes
& Seedat Incorporated, on 18 October 2017; Harris Incorporated,
during
September 2018; Edward Nathan Sonnenberg Attorneys, on 26
April 2019; Thomson Wilks, on 24 January 2020; June Marks Attorneys,
on 29 April 2020; and Pagel Schulenburg Incorporated on 11 February
2021, who only launched the rescission application some two
months
after their appointment, and withdrew as attorneys of record on 22
January 2022 some few days prior to the hearing of this
matter. In
these proceedings, the applicants were represented by Fairbridges
Wertheim Becker attorneys, who came on board on 24
January 2022.
[13]
It should
be accepted that ordinarily, when a litigant appoints attorneys to
handle matters, it is expected of the latter to execute
their mandate
with the necessary diligence, skill and care required.
It
is therefore not sufficient for an applicant to solely blame its
appointed attorneys for over a period of three years of inactivity
and/or lack of diligence. This is so in that it has long been said
that
there is a limit beyond which a litigant cannot escape the results of
lack of diligence on the part of his/her chosen representative
[6]
.
It is in the light of this approach that it is inexplicable as to how
five sets of attorneys could have been instructed to launch
the
rescission application, and yet none of them had done so over a
period of four years.
[14]
Even if it may be accepted that the facts in
Saloojee
are
distinguishable from those in
casu
, and that from the
continuous change of attorneys it cannot be said that the applicants
were supine, this does not at all demonstrate
a satisfactory example
particularly since Andreou sought to advance other unsatisfactory
explanations such as disagreements between
him and various attorneys
over a variety of issues including fees, his own lack of knowledge of
the time frames, or his busy schedule.
In the end, in the light of
the clearly excessive delay in bringing this application, the
explanation proffered in that regard,
is not satisfactory. Even
though from these conclusions this ought to bring this matter to an
end, I will for the sake of completeness
deal with the merits.
The
legal approach to rescissions and evaluation:
[15]
It is trite
under the common law that this Court is empowered to rescind its
judgments and orders obtained in default, provided
that the applicant
has demonstrated sufficient or good cause. This entails that the
applicant must provide a reasonable and satisfactory
explanation for
its default; demonstrate that the application is made
bona
fide,
and that it has a
bona
fide
defence which
prima
facie
carries some prospect of success
[7]
.
[16]
It is
further trite that a failure to demonstrate prospects of success on
the merits will not assist an applicant, irrespective
of how
reasonable and convincing the explanation for the default may be
[8]
.
Equally so, in
Zuma
[9]
,
it was reiterated that under the common law, “
an
unsatisfactory and unacceptable explanation remains so, whatever the
prospects of success on the merits”,
and that in the absence of a reasonable explanation for a default,
there was no obligation to assess the applicant’s prospects.
The
onus being on an applicant for rescission
[10]
,
the Court nonetheless enjoys a wide discretion when determining
whether sufficient or good cause exists by taking account of all
the
relevant facts and circumstances of the case.
The
explanation for default:
[17]
The main explanation proffered by Andreou for the applicants’
default was that they
were not aware of the summons or the default
judgment until on 16 October 2017 when the Sheriff served a warrant
of execution.
As can be gleaned from the Sheriff’s return of
service, the combined summons were served by affixing on the
principal doors
at
45 Morningside Villas, Murray Avenue, Sandton,
Unit [....]
(the first applicant) and
Unit [....] T [....] A
[....], M [....] L [....], P [....]
(Andreou) on 14 June 2007.
Andreou’s contention was that at the time of service of the
summons
,
the property was leased to and occupied by a Ms
Zimezonke Angela Hardy. Since the sheriff had simply served the
summons by affixing
on the main entrance of the property of the
garage door, the said Hardy is said to have not found them.
[18]
It was further Andreou’s contention that in accordance with
clause 10 of the lease
agreement, his
domicilium
was recorded
as
[....] K [....] D [....], Sandton
. The summons were however
served on him at
Unit [....] The A [....], M [....] L [....], P
[....]
. He contended that he never resided at the property in
question as it was leased to a Mr Xolo Mkhize. Andreou averred that
Mkhize
also informed him that he did not receive the summons.
[19]
In
disputing that the summons was not properly served, the respondent
relied on the provisions of rule 4(1) (a) (v) of the Uniform
Rules
[11]
to demonstrate that
proper service was effected and contended that the applicants have
not proffered a reasonable and satisfactory
explanation for their
default.
[20]
It needs to
be said from the onset that I have difficulties in appreciating the
essence of Andreou’s explanation for the default,
when the
summons were served on applicants’ chosen addresses. It is
accepted that either party to legal proceedings must
ensure that
service should strictly be in accordance with the provisions of
“
domicilium
clauses”
as agreed to between the parties, and that this was correctly
reflected in the Sheriff’s return of service.
Once this is
demonstrated, it is accepted that the service is valid and good
[12]
.
[21]
In this case, the Court accepts that service on both the first
applicant and Andreou was
good. Andreou’s contention that
service on him at
Unit [....] T [....] A [....], M [....] L
[....], P [....]
, when he resided at
[....] K [....] D [....]
Sandton
is disingenuous. This is so in that the latter address is
as reflected in the deed of suretyship. The explanation that the
properties
were at the time occupied by tenants who had merely denied
receipt of the summons to Andreou is hardly satisfactory nor
acceptable.
This is particularly so since neither Mkhize nor Hardy
had filed any confirmatory affidavits that accompanied the founding
affidavit,
or copies of their purported lease agreements at the time,
to support their denials that the summons came to their attention.
[22]
It was only in the replying affidavit that Andreou had attached
unsigned copies of the
purported lease agreements entered with Hardy
and Mkhize. It is trite that an applicant must make out its case for
the relief it
seeks in its founding affidavit and cannot make out its
case for the relief it seeks in a replying affidavit. Even then,
copies
of unsigned leases are meaningless, and worst still, even at
that belated stage, nothing came by way of confirmatory affidavits
from these individuals who had purportedly occupied the premises.
[23]
A mere submission of unsigned lease agreements is clearly not
sufficient to demonstrate
any
bona fides
on the part of the
applicants. On the other hand, this makes their explanation even more
unsatisfactory and suspect. It therefore
ought to be concluded that
the manner of service in the light of the provisions of Rule
4(1)(a)(v) was indeed good, and the reasons
advanced for the
applicants’ default are neither reasonable nor satisfactory.
Ordinarily therefore, the court is not obliged
to consider the
applicants’ prospects of success, but will nonetheless do so
for the sake of completeness.
A
bona fide defence on the merits?
[24]
At the core of the applicants’ defence is that the respondent
breached a tacit term
of the lease agreement to provide the first
applicant with gas sufficient for it to operate a twelve-burner
grill, together with
other ancillary gas appliances at the premises.
It was submitted that there were overwhelming surrounding
circumstances from which
the tacit term could be inferred, and that
the non-variation clause contained in the lease agreement did not
prohibit the operation
of that term.
[25]
Andreou contended that inferences ought to be drawn from the nature
of the business to
be conducted by the first applicant which
specifically needed the installation and supply of gas. Reliance was
further placed on
the discussions held between Mr Van der Linde, the
centre manager representing the respondent, and a Mr Blessmore Moyo,
the operations
manager representing the first applicant regarding the
provision of gas and ‘agreements’ reached in that regard
between
the two, upon which Andreou had signed the lease agreement.
[26]
Although it was conceded that the lease agreement made no mention of
the supply or provision
of gas to the first applicant, Andreou’s
contention was that he was aware that certain terms of a contract
were evident and
did not need to be specified in such agreements,
particularly since they were material.
[27]
The respondent’s submissions in regards to the alleged tacit
term were that such
a defence was not valid given the circumstances
of the case, and that it was merely raised as a smokescreen. This was
so since
the lease agreement was framed in such a manner that it
prohibited any oral or tacit variation of its clauses unless reduced
to
writing and signed by the parties. The respondent further pointed
out that the applicants were bound by the
caveat subscriptor
principle, and that the factual position and surrounding
circumstances were contrary to any such tacit term being raised or
having
been discussed between the parties. It was submitted that if
indeed there was such a term, Andreou in particular would have raised
it as repudiation of the agreement or raised a compliant at the very
least. To this end, it was submitted that since the applicants
had
breached the agreement resulting in it being cancelled, by operation
of the law, the respondent was therefore entitled to its
judgment.
[28]
A tacit
term is an unexpressed provision in a contract deriving from the
common intention of the parties that can be inferred from
the express
terms and conditions of the contract, the subsequent conduct of the
parties and the surrounding circumstances thereof
[13]
.
The test in determining the existence of a tacit term or condition
was recently reiterated by the Supreme Court of Appeal in
City
of Tshwane Metropolitan Municipality v Brooklyn Edge (Pty) Ltd and
Another
[14]
as
follows;
‘
A tacit term is an
unexpressed provision of a contract. It is inferred primarily from
the express terms and the admissible context
of the contract. A court
will not readily infer a tacit term, because it may not make a
contract for the parties. The inference
must be a necessary one,
namely that the parties necessarily must have or would have agreed to
the suggested term. A relevant factor
in this regard is whether the
contract is efficacious and complete or whether, on the other hand,
the proposed tacit term is essential
to lend business efficacy to the
contract. The ‘celebrated’ bystander test constitutes a
practical tool for the determination
of a tacit term. To satisfy the
test the inference must be that each of the parties would inevitably
have provided the same unequivocal
answer to the bystander’s
hypothetical question. Even if the inference is that one of the
parties might have required time
to consider the matter, the tacit
term would not be established…’
[15]
[29]
Applying the above principles to the facts of this case, it is indeed
correct that under
clause 49 of the lease agreement, provision is
made for non-variation and no relaxation or indulgence clauses. At
clause 13.1,
it is provided that the property was leased
‘
voetstoets’
. The respondent further relied on the
provisions of clause 21 of the ‘
Offer to Lease’
,
which was signed by Andreou on 17 August 2015, at which it is
provided as part of the ‘Special Conditions’, that the
shop or premises will be handed over to the lessee as a white painted
shell. The agreement as correctly conceded by the applicants
does not
make any mention of any obligations to provide gas to the first
applicant.
[30]
A
non-variation clause in contracts is in principle valid and binding,
and courts are not at liberty to ignore such clauses in favour
other
factors not initially agreed to in the contract. This principle is
nonetheless not immutable since the general principles
of the law of
contract will still apply, which may release a party from the strict
wording of the terms of an agreement
[16]
.
[31]
The common cause facts as correctly pointed out on behalf of the
respondent were that the
first applicant was in breach of the lease
agreement as it failed to pay rental, and had absconded from the
premises. It has been
the respondent’s contention throughout
the institution of this application that it had no obligation to
supply gas to the
first applicant since this was the responsibility
of the tenant. It was contended that the first applicant occupied the
premises
for a period of 18 months during which the issue was not
raised, whilst other tenants operating restaurants such as Mike’s
Kitchen had installed their own gas supply, since the centre did not
provide such services to all the tenants.
[32]
It is significant to note that the applicants further relied on a
variety of emails exchanged
between Van der Linde and gas suppliers
dating between 4 November 2015 and 15 February 2016, that
demonstrates the respondent’s
obligations and endeavours to
supply gas to the first respondent, and from which further inferences
could be drawn in support of
a tacit term. From February 2016 when
Van der Linde allegedly ‘withdrew from the scene’ and
until March 2017, the applicants
alleged that during that period,
they had made use of their own gas supply at their expense. It was on
this basis that it was alleged
that the respondent was in breach of
the agreement.
[33]
There are clear hurdles faced by the applicants in relation to a
claim of a tacit term,
even if the respondent could not solely rely
on the non-variation clause or any other clauses relied upon by the
respondent. The
first is that first applicant had occupied the
premises between October 2015 until April 2917, and had during that
period, incurred
costs by sourcing its own gas. Other than relying on
an exchange of emails between Van der Linde and a host of other
individuals
in regards to the provision of gas, after occupation,
there appears nothing further of substance that the applicants had
done,
to assert the alleged tacit term.
[34]
As correctly pointed out on behalf of the respondent, various options
were available to
Andreou and Moyo who are supposed to be astute
business people and well-experienced in such commercial matters. The
options available
included instituting a claim for specific
performance, a claim for damages in respect of costs incurred for the
gas, or even placing
the respondent on terms prior to simply not
complying with the terms of the lease agreement by not paying rental
and vacating the
premises. Aligned to these factors is that as
correctly pointed out on behalf of the respondent, the terms of the
order granted
in default are not disputed. This was despite the
applicants having claimed a breach of the agreement on the basis of
the alleged
tacit term, which was the only defence raised in this
rescission application.
[35]
It is significant to note that despite it being impermissible, some
two days prior to the
hearing of this matter, the applicants had
filed supplementary heads of argument, in which they sought to
dispute the amounts claimed
and granted in paragraphs 1 and 2 of the
default order. The court need not say more on this issue since new
issues cannot be raised
in heads of arguments. This dispute was never
raised in the founding affidavit. Equally so, and to the extent that
the applicants
sought to raise disputes in regards to paragraph 4 of
that order, it was common cause that such a dispute is still pending
before
this Court. I will not say more on these new disputes raised.
[36]
In summary therefore, the applicants failed to provide a reasonable
and acceptable explanation
for the excessive delay in bringing this
application, and their default. They also did not show that this
application is
bona fide
and not merely a ruse aimed at
frustrating the default judgment and its consequences, particularly
through their inexcusable delays.
Furthermore, they did not establish
the existence of a
bona fide
defence on the merits of the
matter. This is so in that on the contrary, the express terms of the
agreement, the conduct of the
parties before and after occupation of
the leased premises, and the evidence relied on by the applicants as
a whole, do not demonstrate
a basis upon which any inference can be
drawn that would permit the importation of the alleged tacit term.
[37]
In
the end, from the material before the Court,
there
were no circumstances that prevented the applicants from complying
with their obligations in terms of the lease agreement
[17]
,
and thereafter invoke the remedies at their disposal. The only
inference to be drawn from the facts is that the applicants simply
neglected to comply with the terms of the agreement. It follows that
w
hether
this application was considered in accordance with the common law or
the Uniform Rules, it did not disclose any basis to
justify
interference with the default judgment. The rescission application
therefore ought to fail with costs.
Order:
1.
The first and second applicants’ rescission application is
dismissed.
2.
The first and second applicants are ordered to pay the costs of this
application,
jointly and severally the one paying the other to be
absolved.
Edwin
Tlhotlhalemaje
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
Parties/their legal representatives by email and by uploading it to
the electronic file of this matter on CaseLines. The
date for
hand-down is deemed to be
on 21
October
2022.
Appearances:
For
the Applicants:
Adv. C. Acker with Adv L.
Acker,
instructed by Fairbridges
Wertheim
Becker attorneys
For
the Respondent:
Adv. K Gouden, instructed by Venns Attorneys
Date
of Judgement:
21 October 2022
Date
of hearing:
07 February 2022
[1]
The
Order provided:
‘
The
cancellation of the lease agreement between the Plaintiff and the
First Defendant dated 2 October 2015 more particularly in
respect of
Shop 17, Larnbton Court, Corner Doak, Webber 8 Beacon Roads, situate
on Erf 178, Klippoortjie Agricultural Lots, Germiston,
in extent
approximately 124 square metres, is confirmed.
AS AGAINST THE FIRST
DEFENDANT AND SECOND DEFENDANT JOINTLY AND SEVERALLY, THE ONE PAYING
THE OTHER TO BE ABSOLVED FOR,'
1.
Payment of the sum of R261 623.34.
2.
Payment of interest on the sum of R261
623.34 at the rate of 10.5% per annum from 1 June 2017 to date of
payment.
3.
The Plaintiff is granted leave to re-enrol
this matter at a later stage for judgment in respect of the
Plaintiffs damages once
quantified.
4.
Payment of costs of suit on the attorney
and client scale.’
[2]
Paragraph
13 of the Founding Affidavit reads:
‘
This
application for rescission is brought in accordance with the
provisions of rule 31(2)(b) of the Uniform Rules of Court, insofar
applicable, and in accordance with the provisions of the common
law.’
Rule
31(2) provides that;
(a)
…
(b)
A defendant may within 20 days after acquiring knowledge of
such judgment apply to court upon notice to the plaintiff to set
aside
such judgment and the court may, upon good cause shown, set
aside the default judgment on such terms as it deems fit.
[3]
Rule
31
(5) provides;
(a)
Whenever a defendant is in default of delivery of notice of
intention to defend
or of a plea, the plaintiff, who wishes to
obtain judgment by default, shall where each of the claims is for a
debt or liquidated
demand, file with the registrar a written
application for judgment against such defendant: Provided that when
a defendant is
in default of delivery of a plea, the plaintiff shall
give such defendant not less than five days’ notice of the
intention
to apply for default judgment.
(b)
The registrar may—
(i)
grant judgment as requested;
(ii)
grant judgment for part of the claim only or on amended terms;
(iii)
refuse judgment wholly or in part;
(iv)
postpone the application for judgment on such terms as may be
considered just;
(v)
request or receive oral or written submissions;
(vi)
require that the matter be set down for hearing in open court:
Provided
that if the application is for an order declaring residential
property specially executable, the registrar must refer
such
application to the court.
(c)
The registrar shall record any judgment
granted or direction given.
(d)
Any party dissatisfied with a judgment granted or direction given by
the registrar may, within
20 days after such party has acquired
knowledge of such judgment or direction, set the matter down for
reconsideration by the
court.
[4]
Rule
31.
Judgment on confession and by default and rescission of judgments
(2) provides:
(a)
Whenever in an action the claim or, if there is more than one claim,
any of the
claims is not for a debt or liquidated demand and a
defendant is in default of delivery of notice of intention to defend
or of
a plea, the plaintiff may set the action down as provided in
subrule (4) for default judgment and the court may, after hearing
evidence, grant judgment against the defendant or make such order as
it deems fit.
(b)
A defendant may within 20 days after acquiring knowledge of such
judgment apply
to court upon notice to the plaintiff to set aside
such judgment and the court may, upon good cause shown, set aside
the default
judgment on such terms as it deems fit.
[5]
Chetty
v Law Society, Transvaal 1985(2) 756 (A)
at
para 765A
[6]
Saloojee
and Another NNO v Minister of Community Development
1965
(2) SA 135
(A)
at
page 140H-141B-E, where it was held;
‘
I
should point out, however, that it has not at any time been held
that condonation will not in any circumstances be withheld
if the
blame lies with the attorney. There is a limit beyond which a
litigant cannot escape the results of his attorney's lack
of
diligence or the insufficiency of the explanation tendered. To hold
otherwise might have a disastrous effect upon the observance
of the
Rules of this Court. Considerations
ad misericordiam
should
not be allowed to become an invitation to laxity. In fact this Court
has lately been burdened with an undue and increasing
number of
applications for condonation in which the failure to comply with the
Rules of this Court was due to neglect on the
part of the attorney.
The attorney, after all, is the representative whom the litigant has
chosen for himself, and there is little
reason why, in regard to
condonation of a failure to comply with a Rule of Court, the
litigant should be absolved from the normal
consequences of such a
relationship, no matter what the circumstances of the failure are.’
[7]
See
Colyn v
Tiger Food Industries Ltd t/a Meadow Feed Mills (Cape)
2003 6 SA 1
(SCA) at 9 C – F;
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State and Others
(CCT 52/21)
[2021] ZACC 28
;
2021 (11) BCLR 1263
(CC) at para 72;
Chetty
at
764J, where it was held;
‘
I
t
is not sufficient if only one of these two requirements is met; for
obvious reasons a party showing no prospect of success on
the merits
will fail in an application for rescission of a default judgment
against him, no matter how reasonable and convincing
the explanation
of his default. And ordered judicial process would be negated if, on
the other hand, a party who could offer
no explanation of his
default other than his disdain of the rules was nevertheless
permitted to have a judgment against him rescinded
on the ground
that he had reasonable prospects of success on the merits…
[8]
At
para 71
[9]
At
para 76
[10]
De Wet
v Western Bank Ltd
1979(2) SA 1031 (A) at 1042H
[11]
Which provides;
‘
4.
Service
(1)
(a)
Service of any process of the court directed to the
sheriff and subject to the provisions of paragraph (aA) any
document
initiating application proceedings shall be effected by the sheriff
in one or other of the following manners-
…
…
…
(v) in the
case of a corporation or company, by delivering a copy to a
responsible employee thereof at its registered
office or its
principal place of business within the court’s jurisdiction,
or if there be no such employee willing to accept
service, by
affixing a copy to the main door of such office or place of
business, or in any manner provided by law;
[12]
See
Amcoal
Colliers Ltd v Truter
(128/88)
[1989] ZASCA 99
;
[1990] 1 All SA 248
(A) (7 September
1989), where it was held from para 14 that;
‘…
It
is a matter of frequent occurrence that a
domicilium
citandi et executandi
is chosen in a
contract by one or more of the parties to it. Translated, this
expression means a home for the purpose of serving
summons and
levying execution. (If a man chooses
domicilium
citandi
the
domicilium
he chooses is taken to be his place of abode: see
Pretoria
Hypotheck Maatschappy v Groenewald
1915 TPD 170
).
It is a well-established practice (which is recognized
by
rule 4(1)(a)(iv) of the Uniform Rules of Court) that if a defendant
has chosen a
domicilium citandi
, service of process at such
place will be good, even though it be a vacant piece of ground, or
the defendant is known to be resident
abroad, or has abandoned the
property, or cannot be found (Herbstein & Van Winsen,
The
Civil Practice of the Superior Courts of South Africa
3rd ed., p
210. See
Muller v Mulbarton Gardens (Pty) Ltd.
1972(1) SA 328
(W) at 331 H-333 A,
Loryan (Pty) Ltd v Solarsh Tea & Coffee
(Pty) Ltd 1984 (3)SA 834 (
W) at 847 D-F.) It is generally
accepted in our practice that the choice without more of a
domicilium citandi
is applicable only to the service of
process in legal proceedings. (
Ficksburg Transport (Edms) Bpk v
Rautenbach & h Ander
(
supra
) 333 C-D). Parties to a
contract may, however, choose an address for the service of notices
under the contract. The consequences
of such a choice must in
principle be the same as the choice of a
domicilium citandi et
executandi
(Cf the
Ficksburg Transport
case
ubi cit
.),
namely that service at the address chosen is good service, whether
or not the addressee is present at the time…’
[13]
Alfred
McAlpine and Son (Pty) Ltd v Transvaal Provincial Administration
1974
(3) SA 506 (A).
[14]
(928/2020)
[2022] ZASCA 23; [2022] 2 All SA 334 (SCA)
[15]
At
para 16
[16]
Telcordia
Technologies Inc v Telkom SA Ltd
(26/05)
[2006] ZASCA 112
; [2006] 139 SCA (RSA)
[2006] ZASCA 112
; ;
2007 (3) SA 266
(SCA);
[2007] 2 All SA 243
(SCA);
2007 (5) BCLR 503
(SCA) at para
12;
Ocean
Echo Properties 327 CC and Another v Old Mutual Life Assurance
Company (South Africa) Limited
(288/2017)
[2018] ZASCA 9;
2018 (3) SA 405 (SCA)
[17]
See
Tudor
Hotel Brasserie & Bar Pt Ltd v Hencetrade 15 Pt Ltd
(793/2016)
[2017] ZASCA 111
(20 September 2017)
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