Case Law[2025] ZAGPPHC 24South Africa
Road Accident Fund v Nibe (76672/2017) [2025] ZAGPPHC 24 (16 January 2025)
High Court of South Africa (Gauteng Division, Pretoria)
16 January 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Road Accident Fund v Nibe (76672/2017) [2025] ZAGPPHC 24 (16 January 2025)
Road Accident Fund v Nibe (76672/2017) [2025] ZAGPPHC 24 (16 January 2025)
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
Number: 76672/2017
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES/NO
DATE:
16/01/25
SIGNATURE
In
the matter between:
ROAD
ACCIDENT
FUND
Applicant
and
NWABISA
NANA NIBE
Respondent
JUDGMENT
Joyini
J
INTRODUCTION
[1]
This is an application for rescission of a default judgment (“the
judgment” or “the
order”) brought by the applicant,
the Road Accident Fund (“RAF” or “the Fund”).
The judgment was
granted in favour of the respondent, Ms Nwabisa Nana
Nibe, on 2 September 2021.
[2]
The applicant seeks to have the judgment rescinded and set aside.
[3]
The applicant relies on the common law grounds for rescission.
[4]
The respondent opposes the application.
[5]
The court appreciates the insightful and engaging submissions from
both parties' legal representatives,
which greatly assisted in
adjudicating this matter
.
BACKGROUND
FACTS
[6]
The facts are largely common cause between the parties. It is common
cause that this application
originates from the main action that was
instituted by the respondent against the applicant for damages
arising from a motor vehicle
accident.
[7]
The matter was placed on the trial roll for 2 September 2021, before
Honourable Justice ADJP Molopa
(as she then was) as matter number 39
on the roll. There was no representation for the applicant. Counsel
for the respondent went
ahead to request allocation in order to
proceed with trial. The matter was subsequently allocated to
Honourable Acting Justice
Noncembu.
[8]
It is also common cause that the applicant failed to appear before
court on 2 September 2021 which
was the date of the trial. As such,
the default judgment was granted in favour of the respondent, Ms
Nwabisa Nana Nibe.
[9]
In the said court order, the applicant’s defence was struck off
and an amount of R8 533
577.00 was awarded to the respondent for loss
of earnings. As stated above, there was no appearance for the
applicant.
[10]
Counsel for the applicant contends that the respondent amended her
particulars of claim in the action proceedings
and this amendment
re-opened the pleadings. Therefore, the defence of the applicant
should not have been struck out.
APPLICATION
FOR LEAVE TO TO FILE SUPPLEMENTARY AFFIDAVIT
[11]
Counsel for the applicant, in his application for leave to file a
supplementary affidavit, submits that the
purpose of the
supplementary affidivit is to assist the court to have a full picture
of the factual matrix in
casu
. This affidavit does not change
the cause of action nor introduce a new cause of action and it reads
as follows: “
I wish to supplement as follows to the earlier
founding affidavit I had deposed to:
2.1
The application is solely aimed at the amount awarded for past and
future loss of earnings; the Applicant conceded 100% liability
and
has taken no issues with the merits. The present application is
solely aimed at rescinding the amount for damages made in favour
of
the Respondent.
2.2
The Applicant’s defence was struck out in the main action
proceedings on the 2nd of September 2021.
2.3
On the same day of the 2nd of September 2021, the Respondent filed
its amended particulars of claim and the amount claimed for
future
loss of earnings went from R2 500 000-00 (in the initial Particulars
of Claim) to R8 352 231-00 (in the amended Particulars
of Claim).
2.4
Therefore, the pleadings in the action proceedings were reopened when
the Respondent amended its particulars of claim after
the Applicant’s
defence was struck out.
2.5
This common cause fact strengthens the Applicant’s right to
re-enter the main action proceedings and amplifies the call
for the
rescission of the impugned order.
2.6
Authorities in support of this further ground of rescission shall be
cited in the Applicant’s heads of argument and referred
to
during the hearing of the matter.”
[12]
Counsel referred the court to Rule 6(5)(e) of the Uniform Rules of
Court which provides as follows:
“
[w]ithin 10 days of
the service upon the respondent of the affidavit and documents
referred to in subparagraph (ii) of paragraph
(d) of subrule (5) the
applicant may deliver a replying affidavit. The court may in its
discretion permit the filing of further
affidavits.”
[13]
Counsel also referred the court to
Garnnet-Adams
Properties (Pty) Ltd v Thomas Fanahan Kenny
,
[1]
where the court listed the following factors that should be
considered in allowing supplementary affidavit:
i.
“
The
reason the evidence was not produced timeously;
ii.
The
degree of materiality of the evidence;
iii.
The
possibility that it may have been filed to “relieve the pinch
of the shoe”;
iv.
The
balance of prejudice to the applicant if the application is refused
in relation to the prejudice to the respondent if it is
granted;
v.
The
stage of the litigation;
vi.
The
possibility of an appropriate order cost to address the late filing;
vii.
The
general need for finality in judicial proceedings;
viii.
The
appropriateness of visiting the attorney's fault upon the head of his
client.”
[14]
Counsel argues that it is in the interest of justice that the court
determines this application with all
the relevant facts before it,
inclusive of those facts reflected in the supplementary affidavit.
Counsel submits that the issue
raised in the supplementary affidavit
is relevant to the issue of rescission, which this court is called
upon to determine.
[15]
In this regard, counsel argues that in the same judgment of
Garnnet-Adams
Properties supra:
[2]
“
As stated, the
crux of the matter turns on whether there is reason to believe that
it will be to the advantage of the creditors
of the respondent if he
is sequestrated. Material to answer that question is the issue of the
residential property and the outstanding
amount on the bond
registered over the property. The issues raised in the supplementary
affidavit speak to this and seek to address
some of the issues raised
in the Applicant’s replying affidavit. Without the benefit of
all the information on this issue,
the court cannot determine the
issue of “benefit to the creditors.”
[16]
Counsel contends that the issue on re-opening of pleadings which is
raised in the supplementary affidavit,
merely reinforces the argument
for a rescission of the impugned order. This is so because the point
raised about the re-opening
of pleadings fits neatly with the second
requirement of rescission based on common law, which is good
prospects of success. This
is because
litis contanstio
was
disturbed in the action proceedings. Should the impugned order be
rescinded, the applicant will have an opportunity to re-enter
the
fray in the action proceedings.
[17]
Counsel submits that the supplementary affidavit does not in any way
prejudice the respondent. Counsel contends
that the supplementary
affidavit was filed long time ago, the respondent had ample
opportunity to respond to it if it so wishes.
Anyway, it chose not to
do so.
[18]
With regard to this point, Counsel referred the court again to
Garnnet-Adams
Properties supr,
where
the court remarked as follows:
[3]
“
The
Respondent also did not file the supplementary affidavit on the eve
of the hearing – there was time for the Applicant
to answer and
engage with the issues raised had it wish.”
[19]
Counsel for the applicant concludes by submitting that the interest
of justice demands that the supplentary
affidavit be allowed.
[20]
Counsel for the respondent argues against granting leave to the
applicant to file the supplementary affidavit.
The argment by counsel
for the respondent does not clearly show what type of prejudice will
be suffered by the respondent if the
leave is granted.
[21] In
weighing up the prejudice of allowing the supplementary affidavit on
the respondent versus the prejudice
on the applicant, the balance
again tips in favour of the applicant.
[22]
It is my considered view that the applicant’s supplementary
affidavit does not significantly prejudice
the respondent and it will
in fact assist the court in reaching a decision. It should thus be
allowed.
ISSUES
FOR DETERMINATION
[23]
The court is also called upon to deal with this question: Has
litis
contestation
been disturbed by the amendment effected by the
repondent in the action proceedings? In other words, have the
pleadings in the
action proceedings been re-opened by such an
amendment?
[24]
The main issue for determination is whether the applicant has met all
the legal requirements in terms of
common law, for the rescission of
the default judgment. The requirements are as follows:
(a)
A reasonable and acceptable explanation for the default; and
(b)
A
bona fide
defence that carries some prospects of success.
APPLICANT’S
CONTENTION
[25]
Counsel for the applicant contends that the respondent amended her
particulars of claim in the action proceedings
and this amendment
re-opened the pleadings. Therefore, the defence of the applicant
should not have been struck out.
[26]
It is also contended that the impugned order was wrongly sought and
wrongly granted in accordance with the
provisions of Rule 42(1)(a)
and that the court should
mero motu
rescind the order.
[27]
Counsel further contends that, based on common law, the impugned
order should be rescinded as the applicant
satisfies the two
essential grounds for common law-based rescission which are as
follows:
(a)
A reasonable and
acceptable explanation for the delay; and
(b)
a bona fide defence
which carries some reasonable prospects of success.
[28]
Counsel for the applicant referred the court to
Nkala
and Others v Harmony Gold Mining Company Limited and Others:
[4]
“
[188]
The issue as to when the stage of litis contestatio is
reached in the modern day law is a complicated one. It is
reached
when pleadings are closed. But this is no simple matter. Guidance as
to when pleadings are closed can be found in Rule
29 of the Uniform
Rules of Court. It advises that pleadings are closed if all parties
to the case have joined issue and there are
no longer any new or
further pleadings, or the time period for the filing of a replication
has expired, or the parties have agreed
in writing that the pleadings
have closed and have filed their agreement with the registrar of the
court, or the court, on application,
has declared that the pleadings
are closed. At that point the pleadings are treated as being closed
and the proceedings are said
to have reached the stage of litis
contestatio. In everyday practice, they are normally closed as soon
as the period for the
filing of the replication has expired, for at
that stage
the
issues have become identified and parties are able to commence
preparation for battle. However, it is important to bear in mind
that, as annoying as it can be, the law often places a caveat to its
pronouncements. In this case it is this: pleadings, though
closed,
will be re-opened should an amendment be effected, or should the
parties agree to alter the pleadings. Amendments to pleadings
can be
brought by any party any time before judgment is delivered.”
[29]
The court in
Nkala
and Others v Harmony Gold Mining Company Limited and Other:
[5]
went
on to say:
[6]
“
[189]
In our law even when the defendant fails to adhere to the time
periods afforded
to him to identify his defence he is always given
the opportunity to seek condonation for his failure to adhere to
those time periods.
It follows that in our legal system it takes much
longer for the stage of litis contestatio to be reached.
Further, unlike
the old Roman legal process, which consisted of two
stages (in iureand in iudicio or apud indicem) ours is
a single
process which can be a long drawn-out affair. In the Roman
legal system the arrival of the stage of litis contestatio was
a simple and straightforward matter. As we show above, the arrival of
the stage of litis contestatio now is anything
but a simple
and straight forward matter. The procedural developments that have
taken place in our modern law have ensured that
our legal process is
significantly distinct and different from that which prevailed during
the Roman times. A difference of fundamental
significance is that in
our law pleadings can be re-opened at any stage before judgment.”
[30]
Counsel for the applicant, in support of his argument on the issue of
amending pleadings without giving notice,
referred the court to
Road
Accident Fund v Sethole,
[7]
where
the court held the following:
“
[40] In
considering the application for rescission brought by the Defendant,
it is imperative to emphasise the critical importance
of compliance
with procedural rules, particularly Rule 28(2) of the Uniform Rules
of Court. Rule 28(2) mandates that any party
wishing to amend their
pleadings must give notice of the intended amendment to the other
party, allowing them the opportunity to
object. This procedural
requirement ensures fairness and transparency in the litigation
process, allowing all parties to respond
appropriately to the claims
made against them.
[41] In the present
case, the Plaintiff's failure to comply with Rule 28(2) is a
fundamental procedural flaw that cannot be overlooked.
Plaintiff did
not provide Defendant with the requisite notice of the intended
amendment, thereby denying Defendant the opportunity
to object. This
non-compliance renders the purported amendment invalid and any
default judgment based on such an amendment must
be set aside. The
procedural integrity of the court process is paramount, and adherence
to the rules of court ensures that justice
is not only done but seen
to be done.
[42] The principle
that a judgment obtained through procedural irregularities should be
set aside is well-established in South African
jurisprudence. In
Colyn v Tiger Food Industries Ltd t/a Meadow Feed Mills Cape,
[8]
the Court held that
non-compliance with procedural rules, such as failing to provide
notice of an amendment, can result in the rescission
of a judgment.
The Court emphasised that procedural rules are in place to ensure
fairness and that non-compliance undermines the
judicial process.
[43] Moreover, the
Constitutional Court in Fose v Minister of Safety and Security,
[9]
reiterated the
importance of procedural fairness and the necessity of allowing
parties a fair opportunity to present their case.
The Court stressed
that procedural rules are designed to ensure that disputes are
resolved in a just and equitable manner, and
failure to adhere to
these rules can result in an unjust outcome.
[44] It is also
crucial to consider the implications of allowing default judgments to
stand when they are based on amounts exceeding
those stipulated in
the pleadings. The Road Accident Fund (RAF), being a public entity
funded by taxpayers' money, has a duty to
ensure that its resources
are used appropriately and justly. Allowing litigants to obtain
orders in excess of what they have pleaded
without due process not
only depletes public resources unjustly but also sets a dangerous
precedent that could encourage frivolous
or inflated claims.”
[31]
On requirements for rescission, Counsel for the applicant referred
the court to
Zuma v Secretary of Judicial Commission of Injury
into Allegations of State Capture, Corruption and Fraud in the Public
Sector Including
Organs of State and Others
2021 (11) BCLR 1263
(CC), where it was outlined that for a common law based application
for rescission to succeed, the applicant needs to establish
the
following: “
Requirements for rescission of a default
judgment are twofold. First, applicant must furnish a reasonable
and satisfactory
explanation for its default. Second, it must show
that on the merits it has a bona fide defence which prima
facie carries
some prospects of success. Proof of these
requirements is taken as showing that there is sufficient cause for
an order to
be rescinded. A failure to meet one of them may result in
the refusal of the request to rescind.”
[32]
According to the counsel for the applicant, the applicant does
satisfy the twofold requirements referred
to in this
Zuma
judgment.
[33]
On reasonable and satisfactory explanation, counsel for the applicant
explained to the court that the contracts
of the applicant’s
panel of of attorneys expired on 31 May 2020 and the Fund decided not
to renew the contracts for financial
reasons. They were too costly
and as such, not affordable. In pursuit of this noble intent, the
Fund was not represented in the
pre-trial conference and when the
oreder was granted on 2 September 2021. The applicant has since
collaborated with the State Attorney
to assist the applicant with
litigation.
[34]
On
bona fide
defence, counsel for the applicant submits that
the loss of earnings that was awarded to the respondent on 2
September 2021 after
an amount claimed was increased from R2 500
000-00 to R8 352 231-00 through an amendment of particulars of claim.
This was done
without giving the applicant an opportunity to contest
the amendment especially the incerased amount. Therefore, the
pleadings
in the action proceedings were re-opened when the
respondent amended the partculars of claim after the applicant’s
defence
was struck out. This common cause fact strengthens the
applicant’s right to re-enter the main action proceedings and
it also
amplifies the call for the rescission of the impugned order.
RESPONDENT’S
CONTENTION
[35]
Counsel for the respondent contends, on undue delay, that the cause
of action upon which the court granted
the order on 2 September 2021,
took place on 10 December 2016.
By
then, the contract between the applicant and the panel of attorneys
was still in existence. Counsel submits that the fact that
the
applicant was, without the assistance of the panel of attorneys, able
to settle the merits and future medical expenses proved
that the
contention that the applicant defaulted in attending pre-trial
conference due to the absence of legal representation cannot
be held
to be a reasonable explanation.
[36]
Counsel for the respondent contends that this matter was duly and
correctly set down for trial. The notice
of set down was served on 21
September 2020. Even though the applicant was served with the notice
of set down almost a year before
trial date, the applicant
established contact with the respondent only a day before trial
requesting various documents.
[37]
Counsel therefore contends that the applicant was not ready to
proceed on the trial date hence it elected
not to appear before
court.
[38]
I
t took approximately 4 years 10
months for the respondent to find justice caused by injuries
sustained in a motor vehicle accident.
[39]
The order which is the subject of this application was granted on 2
September 2021, the applicant only instituted
these proceedings
during October 2023, that is, a period of over 2 years has already
elapsed prior to bringing this application.
[40]
Counsel argues that applications for rescission, whether under common
law or Rule 42, must be brought within
a reasonable time.
[41]
Counsel further contends that amending the pleadings at the time is
by law permissible and procedurally correct
as pleadings can be
amended at any time before judgment is granted.
[42]
Counsel submits that the strike out of the applicant’s defence
had no material impact on the matter
as the matter was before trial
court and would have proceeded in any event without the strike out
order being granted. This would
have happened due to the fact that
the matter was ripe for trial and the applicant elected not to appear
before court.
[43]
Counsel for the respondent argues that this application is therefore
bad in law and therefore, bound to fail
as it does not meet the
requirements for rescission of a default judgment.
In
this regard
,
counsel
for the respondent referred the court to
Elia
Andreas Demetriou and others vs Absa Bank Ltd (A5083/2021)
[2023]
ZAGPJHC 649
(06
June 2023), where the court held:
“
[10] As
indicated earlier, the appellants contend that they are entitled to
rescission of the order in terms of either Rule
42 (1) (a) of the
Uniform Rules of Court or the Common law.
The
test for a rescission under Common law is trite, namely that good
cause must be shown.
In
order to establish good cause, an applicant must set forth a
reasonable explanation for the default and a bona
fide defence/s.
Regarding
the issue of ‘good cause shown’ in an application for
rescission, the following dictum in the matter of Chetty
v Law
Society, Transvaal
1985
(2) SA 756
(A)
1985
(2) SA 746J
to
765 C
,
is
apposite:
‘
The
Appellant’s claim for rescission of judgment confirming
the
rule
nisi
cannot
be brought under Rule 31 (2) or Rule 42 (1), but must be considered
in terms of the common law, which empowers the Court
to rescind a
judgment obtained on default of appearance, provided sufficient cause
therefore has been shown. (See De
Wet and Others v Western
Bank
1979
(2) SA 1031
(A) at
1042 and Childerly Estate Stores v Standard Bank SA Ltd
1924
OPD 163.)
The
term “sufficient cause” (or “good cause”)
defies precise or comprehensive definition, for
many and
various factors are required to be considered (See Cairn’s
Executors v Gaarn
1912
AD 181
at
186 per Innes JA),
but
it is clear that in principle and in the long-standing
practice of our courts two essential
elements
“
sufficient
cause” “for rescission of a judgment by default”
are:
(i)
that the party seeking relief must present a reasonable and acceptable explanation
for his default; and
(ii)
that
on the merits such party has a bona fide defence
which, prima facie, carries some prospect of
success (De Wet’s case supra at 1042; PE Bosman
Transport Works Committee and Others v Piet Bosman Transport
(Pty)
Ltd
1980
(4) SA 799
(A); Smith
N O v Brummer N O and Another; Smith N O v
Brummer
1954
(3)
SA
352
(O)
at 357-8).’
[11]
In
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
2021
(11) BCLR 1263
(CC)
,
the
Constitutional Court restated the two requirements for the granting
of an application for rescission that need to be satisfied
under the
common law as being the following:
‘
First,
the applicant must furnish a reasonable and satisfactory explanation
for its default. Second, it must show that it has a bona
fide defence which prima facie carries some prospect
of success on the merits. Proof of these requirements is taken
as
showing that there is sufficient cause for an order to be rescinded.
A failure to meet one of them may result in refusal of
the request to
rescind.’”
RESCISSION
OF JUDGEMENT/ORDER UNDER COMMON LAW
[44]
Rescission of judgment is a common law remedy that empowers a court
to cancel the order that was granted
against the party that was not
present in court when the order was made on a previous occasion to
allow such a party to defend/oppose
the matter. At common law, the
court could only rescind the judgment when such a party demonstrates
that there is sufficient cause
for the judgment to be rescinded.
[10]
[45]
To establish sufficient cause, the party that sought to rescind the
judgment had to first, offer the court
a reasonable and acceptable
explanation for its failure to either defend/oppose the matter or
attend in court.
[11]
[46]
Secondly, as the Constitutional Court confirmed in
Barnard
Labuschagne Incorporated v South African Revenue Service and Another,
the
party seeking rescission must also demonstrate ‘
...
that on the merits it has a bona fide defence which prima facie
carries some prospect of success’
.
[12]
In
Chetty
v Law Society, Transvaal,
the
Appellate Division (as it then was) held that the application for
rescission runs the risk of being refused if the party against
whom
the order was made fails to meet one of these requirements.
[13]
[47]
When considering whether to rescind any judgment, the court is
exercising its discretion which must certainly
be exercised
judiciously. In
Van
Heerden v Bronkhorst
,
Molemela JA (as she then was) emphasised that the ‘
court’s
discretion whether or not to grant rescission of judgment must be
influenced by considerations of justice and fairness,
having regard
to all the facts and circumstances of the particular case’
.
[14]
[48]
A party seeking rescission of judgment in terms of the common law,
bears the onus to show good cause.
This essentially entails
prove of two requirements which are (1) reasonable and satisfactory
explanation for its default and
(2) that on the merits the
party has a
bona
fide
defence which
carries some prospects or probability of success.
In
Chetty
v Law Society, Transvaal
,
[15]
Miller
J dealing with the concept of “
sufficient
cause
”
or
“
good
cause
”
stated
that, “
these
concepts defy precise or comprehensive definition, for many and
various factors require to be conside
red.”
The learned Judge stated that “it is clear that in principle
the two essential elements of “
sufficient
cause
”
for
rescission of a judgment by default are:
(i)
that the party seeking relief must present a reasonable and
acceptable explanation for his default; and (ii) that on the merits
such party has a
bona
fide
defence
which,
prima
facie
,
carries some prospect of success.
[49]
Turning to the common law in
Zuma supra
, the court reaffirmed
the long-standing two-part test for rescission. First, the applicant
must provide a reasonable and satisfactory
explanation for its
absence or default. Second, the applicant must show that it has a
bona fide
defence (or grounds for opposition) which exhibit
reasonable prospects of success in the matter. The court stated that
both requirements
must be met before an order can be rescinded. The
court found that Mr Zuma had failed to provide an acceptable
explanation for
his absence, and had also failed to show that he had
reasonable prospects of success in challenging the contempt of court
judgment.
[50]
The court concluded by relaying the following message to all
litigants: “
rescission as an avenue of legal recourse
remains open, but only to those who advance meritorious and bona fide
applications, and
who have not, at every turn of the page, sought to
abuse judicial process.”
It follows that future
litigants seeking to rescind court orders would do well to take heed
of this message by ensuring that
they have legitimate grounds for
rescission, falling within the ambit of the requirements set out in
any relevant rules or the
common law.
UNDUE
DELAY
[51]
An application
for rescission on common law grounds must be brought within a
reasonable period. For the applicant to succeed with
the application
for rescission on common law grounds, the applicant must show good
cause or sufficient cause by giving a reasonable
explanation for
delay and showing that application for rescission was
bona
fide
and
showing a
bona
fide
defence
to the claim with a
prima
facie
prospect
of success.
It
is not sufficient if only one of these two requirements is met; for
obvious reasons a party showing no prospects of success on
the merits
will fail in an application for rescission of a default judgement
against him, no matter how reasonable and convincing
the explanation
of his default.
[52]
It follows therefore that undue delay is in itself fatal to an
application for rescission of judgment, justifying
the dismissal
thereof. In such a situation the court will draw an inference that
such an applicant has acquiesced himself with
the judgment. This is
particularly so when a litigant knew all along about legal
proceedings and relief sought and judgment against
him or her but
does nothing, and only try taking steps at very late stages of the
execution processes.
[53]
In
Schmidlin v Multisound (Pty) Ltd
1991(2) SA 151 (C)
the court in dealing with the issue of undue delay held: “
Delay
is however, relevant in this case, not per se, but because that
judgment was being executed…Acquiescence in the
execution
of a judgement must surely in logic, normally bar success in an
application to rescind on the same basis as acquiescence
in the very
granting of the judgment itself would.”
[54]
More specifically, the court held that because the application for
rescission has to be brought within a
reasonable time, unreasonable
or undue delay in doing so cannot be cured by an application for
condonation of such delay. The court
said the following: “
Applicant
said in his… affidavit… that his application was
brought in terms of Rule 42, which lays down no time limit
within
which rescission of judgment granted in error should be sought. There
is therefore, nothing requiring or capable of
condonation by
this court (at page 155 paragraph 1-J)
. “
The
application, which include the purported application for
condonation is dismissed (at page 156 paragraph j).”
[55]
In
First
National Bank of SA Ltd v Van Rensburg No and others
,
[16]
the court confirmed that an application for rescission of judgment
can simply be dismissed on the basis of undue delay only. Even
where
reliance is placed on the common law, it is still important that the
application for rescission be launched within a reasonable
time. In
this regard, Eloff JP continued as follows: “
I
turn to the appellant’s reliance on the common law. An
interesting argument was submitted to us on the common law, but again
the answer is that which I gave in relation to the attempt to invoke
Rule 42 (1). As was said in the Geniture case, if the
common law
is to be invoked the application should be made within a reasonable
time. [77] I am also satisfied that there was undue
delay in the
launching of this application, under circumstances where the
applicant had knowledge of all the legal proceedings
and court
processes against him. It was only at the final steps of execution
process that is towards the sale of movables by public
auction, that
this application was launched. Such delay cannot even be cured by an
application or prayer for condonation.”
ANALYSIS
[56]
Justice B R Southwood of the Pretoria High Court said: “Default
judgment proceedings are akin to
ex
parte
proceedings,
and that in effect means that there is indeed a duty of disclosure,
and that duty of disclosure requires (of counsel)
to disclose even
the adverse factors in the case, and if such material aspects of a
case have been suppressed, which material aspects
would have
influenced the decision of the court, then a breach of the duty of
disclosure has indeed occurred and if such a breach
of disclosure has
occurred, then it matters not whether the breach was wilful or mala
fide, all that matters is the fact that a
material breach has
occurred, and such a material breach would in law warrant a
rescission of judgment.
[17]
[57]
The Constitutional Court in
Grootboom
v National Prosecuting Authority
[18]
stressed the necessity of
strict adherence to procedural rules to maintain the integrity and
credibility of the judicial process.
The Court emphasized that
procedural fairness is a cornerstone of justice and that failure to
comply with procedural requirements
cannot be condoned.
[58]
On the issue of undue delay, while the RAF's delay in defending the
action and filing the rescission application
is concerning, the court
must balance this against the need to ensure procedural fairness. In
Bezuidenhout
v Patensie Citrus Beherend Bpk,
[19]
the Court highlighted the
need for swift adjudication to avoid prejudice and unnecessary delay.
Similarly, in
Mohlomi
v Minister of Defence,
[20]
the Constitutional Court
emphasised the detrimental effects of delays on the administration of
justice and the rights of the parties
involved.
[59]
I guess, it is fair to say, if the rescission is granted, the RAF
will be given an opportunity, if it so
advised, to deal the issue of
non-complince with Rule 28, which is a fundamental aspect of
procedural fairness. Granting
the rescission will rectify the
procedural irregularity that occurred due to the respondent’s
failure to comply with Rule
28(2). This will obviously cause further
delays and additional costs for the respondent, who has already
obtained a judgment in
her favour.
[60]
In the same vein, if the rescission is not granted, the RAF will
suffer significant prejudice as it was not
given the opportunity to
object to the proposed amendment, which resulted in an increased
amount claimed from R2 500 000-00 in
the initial particulars of claim
to R8 352 231-00 in the amended particulars of claim.
[61]
It is my considered view that the respondent’s non-compliance
with Rule 28(2) deprived the RAF of its
right to contest the
amendment and this led to a judgment that may not reflect the true
extent of the applicant’s liability.
Upholding such a judgment
would undermine the principles of fairness and justice, as it would
enforce an order obtained through
procedural irregularities.
[62]
The respondent’s failure to comply with Rule 28(2) is a
critical procedural flaw that cannot be overlooked.
This
non-compliance renders the purported amendment invalid, and the
default judgment with such an amendment must be rescinded.
Procedural
rules are the backbone of the judicial system, ensuring fairness and
predictability in legal proceedings. Compliance
with these rules is
not merely a formality but a substantive requirement that safeguards
the rights of all parties involved.
CONCLUSION
[63]
I am of the view that the facts set out in the applicant’s
founding and supplementary affidavits constitute
an applicant’s
commitment to satisfy the requirements for rescission of the default
judgment in terms of common law.
It may
be recalled that the applicant was deprived of an opportunity to
contest the amendment to the particulars of claim by the
respondent.
From both the parties’ arguments it is clear that there are
issues like
inter alia
the amendment of particulars of claim without notice which the
parties place in dispute and needs to be ventilated at a trail.
[64]
In this regard, the applicant has therefore shown good cause in the
form of a potential or possible triable
case with
prima facie
prospects of success in the main action. The applicant has
therefore advanced a satisfactory explanation why it needs to come
onboard,
notwithstanding the respondent’s contention that good
cause is absent to justify the rescission.
[65]
The applicant has shown good cause for the rescission of the
judgment. Good cause means that the applicant:
i) has a reasonable
explanation for its default; ii) that the application is
bona fide
and not with the intention to delay the respondent`s claim; iii)
can show that it has a
bona
fide, prima
facie
defence
to the respondent’s claim and that it has a
bona fide
intention to raise the defence if the application is granted.
[66]
As a matter of balancing the potential prejudice, the court must
consider the importance of procedural compliance
and the right of an
applicant to a fair trial. While the respondent faces the
inconvenience of additional litigation, the RAF’s
right to
defend itself against a significantly increased amount claimed, which
it was not given a fair chance to consider or contest,
is paramount.
Therefore, ensuring procedural fairness and adherence to court rules
justifies granting the rescission, despite the
resultant delay and
inconvenience to the respondent.
[67]
I am persuaded by the argument that the respondent’s
non-compliance with Rule 28(2) and the subsequent
granting of the
default judgment necessitates the rescission of the judgment. I am of
the view that the applicant has demonstrated
that the judgment was
granted owing to procedural irregularities, which if known to the
court at the time, would have precluded
the granting of the judgment.
[68]
In terms of the common law, a court is entitled to rescind a judgment
obtained in default of appearance if
good cause can be shown. What
constitutes good cause is that the applicant can explain that it has
a reasonable and acceptable
explanation for the default and that on
the merits, it has a
bona fide
defence.
[69]
The second stage of the inquiry is whether the applicant has raised
a
bona
fide
defence
to the respondent’s claim against it.
It
is the applicants’ case that it has a
bona
fide
defence
with a reasonable prospect of success.
It
is trite that an applicant for rescission must demonstrate an
existence of a substantial defence and not necessarily a probability
of success. It is sufficient that in his evidence it shows a
prima
facie
case
which raises triable issues. The applicant in this matter has fully
and sufficiently explained its defences. The defences raised
by the
applicants in my view raise triable issues.
[70]
The court is still required to determine whether the applicant has
raised a
bone fide
defence or not. I need to stress that
insofar as this is concerned, it is not for this court to determine
whether or not a trial
court will make a finding in favour of the
applicant in respect of any of the defences it has raised.
[71]
That is a determination to be made by the trial court. It is
sufficient at this stage that the defences set
out averments which,
if they are established at a trial, could lead to a court holding in
favour of the applicant. In other words,
it is sufficient if the
applicant makes out a
prima facie
defence, that raises an
issue which is triable.
[72]
It is obvious that whether such issue is triable or not will depend
on the nature of the defence that has
been raised and each situation
will have to be judged according to its own merits.
[73]
It follows from what transpired that the applicant has succeeded in
showing that the defences that it has
raised may lead to a different
result to the default judgment that has been granted.
[74]
Taking into account the totality of the evidentiary material,
arguments and submissions by parties’
counsel, I am of the view
that the applicant has managed to provide a reasonable and
satisfactory explanation and as such,
I am satisfied that the
applicant has shown good cause for the rescission of the judgment.
COSTS
[75]
One of the fundamental principles of costs is to indemnify a
successful litigant for the expense put through in unjustly
having to
initiate or defend litigation. The successful party should be awarded
costs.
[21]
The last thing that
our already congested court rolls require is further congestion by an
unwarranted proliferation of litigation.
[22]
[76]
It is so that when awarding costs, a court has a discretion, which it
must exercise after a due consideration of the
salient facts of each
case at that moment. The decision a court takes is a matter of
fairness to both sides. The court is expected
to take into
consideration the peculiar circumstances of each case, carefully
weighing the issues in each case, the conduct of
the parties as well
as any other circumstances which may have a bearing on the issue of
costs and then make such order as to costs
as would be fair in the
discretion of the court.
[77]
No hard and fast rules have been set for compliance and conformity by
the court unless there are special circumstances.
[23]
Costs follow the event in that the successful party should be awarded
costs.
[24]
However, I have a
wide discretion in making costs orders, and I am entitled to depart
from the general rule in appropriate circumstances.
I am mindful of
the fact that this rule should be departed from only where good
grounds for doing so exist.
[25]
[78]
In this matter, the court acknowledges the RAF's delay in bringing
this rescission application. While the delay is a
factor to be
considered, the Court finds that both parties have contributed to the
procedural complications and delays in this
matter.
[79]
Given these circumstances, the Court deems it equitable and just that
each party should bear their own costs in this
rescission
application. This approach aligns with the principle of fairness, as
it avoids penalising either party excessively for
their respective
roles in the procedural issues that have arisen.
[80]
This decision is supported by case law, which recognises that in
certain circumstances where both parties have contributed
to
procedural errors or delays, a court may exercise its discretion to
order that each party bear their own costs.
[26]
[81]
In light of these considerations and both parties’ argument
relating to the costs of this application, I am accordingly
inclined
to grant costs wherein parties shall bear their own costs.
ORDER
[82]
In the circumstances, I make the following order:
[82.1]
The applicant is hereby granted leave to file its supplementary
affidavit supplementing its founding affidavit.
[82.2]
The order that was granted on 2 September 2021 by this court under
case number 76672/17 is hereby rescinded and set aside.
[82.3]
The parties shall bear their own costs.
T
E JOYINI
JUDGE OF THE HIGH
COURT, PRETORIA
APPEARANCES:
For
the applicant
:
Adv
A Bleki
Instructed
by
:
State
Attorney
Email
:
mohlatlegos@raf.co.za
/ ableki@rsabar.com
For
the respondent
:
Adv
A Masombuka
Instructed
by
:
Kotlolo
Attorneys
Email:
kotloloattorneys@gmail.com
/ legal6@kotloloattorneys.co.za
Date
of Hearing:
14
November 2024
Date
of Judgment:
16
January 2025
This
Judgment has been delivered by uploading it to the Court online
digital data base of the Gauteng Division, Pretoria and by
e-mail to
the Attorneys of record of the parties. The deemed date and time for
the delivery is 16 January 2025 at 10h00.
[1]
Garnnet-Adams
Properties (Pty) Ltd v Thomas Fanahan Kenny, para 17.
[2]
Garnnet-Adams
Properties (Pty) Ltd v Thomas Fanahan Kenny, para 18.
[3]
Garnnet-Adams
Properties (Pty) Ltd v Thomas Fanahan Kenny,
para
20.
## [4](48226/12,
31324/12, 31326/12, 31327/12, 48226/12, 08108/13) [2016] ZAGPJHC 97;
[2016] 3 All SA 233 (GJ); 2016 (7) BCLR 881 (GJ);
2016 (5) SA 240
(GJ) (13 May 2016).
[4]
(48226/12,
31324/12, 31326/12, 31327/12, 48226/12, 08108/13) [2016] ZAGPJHC 97;
[2016] 3 All SA 233 (GJ); 2016 (7) BCLR 881 (GJ);
2016 (5) SA 240
(GJ) (13 May 2016).
## [5](48226/12,
31324/12, 31326/12, 31327/12, 48226/12, 08108/13) [2016] ZAGPJHC 97;
[2016] 3 All SA 233 (GJ); 2016 (7) BCLR 881 (GJ);
2016 (5) SA 240
(GJ) (13 May 2016).
[5]
(48226/12,
31324/12, 31326/12, 31327/12, 48226/12, 08108/13) [2016] ZAGPJHC 97;
[2016] 3 All SA 233 (GJ); 2016 (7) BCLR 881 (GJ);
2016 (5) SA 240
(GJ) (13 May 2016).
[6]
At
para 189.
[7]
(3714/2022)
[2024] ZALMPPHC 62 (18 June 2024).
[8]
2003
(6) SA 1 (SCA).
[9]
1997
(3) SA 786 (CC).
[10]
De
Wet and others v Western Bank Ltd
1979
(2) SA 1031
(A) 1042……………….…………………………………
[11]
Chetty
v Law Society, Transvaal
1985
(2) SA 756 (A) 765.
[12]
2022
(5) SA 1
(CC);
2022 (10) BCLR 1185
(CC) para 46. See also
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
2021
(5) SA 327
(CC);
2021 (11) BCLR 1263
(CC) para 71.
[13]
1985
(2) SA 756 (A) 765.
[14]
[2020]
JOL 48938
(SCA) para 50.
[15]
1985
(2) SA 756 (A).
[16]
1994
(1) SA 677
(TPD).
[17]
Hyundai Motor Distributors (Pty) Ltd v The Honourable Mr Justice J M
C Smit 2000 (1) All SA 259 (T).
[18]
2014 (2) SA 68 (CC).
[19]
2001
(2) SA 224 (SCA.
[20]
1997 (1) SA 124 (CC).
[21]
Union
Government v Gass 1959 4 SA 401 (A) 413.
[22]
Socratous
v Grindstone Investments (149/10)
[2011] ZASCA 8
(10 March 2011) at
[16].
[23]
Fripp
v Gibbon & Co
1913 AD 354
at 364.
[24]
Union
Government v Gass
1959 4 SA 401
(A) 413.
[25]
Gamlan
Investments (Pty) Ltd v Trilion Cape (Pty) Ltd 1996 3 SA 692 (C).
[26]
Steyn v Ronald Bobroff & Partners Incorporated|
[2013] ZASCA
51:.
See also Durascaff CC v Essilfie-Appiah(3330/2019) [2022]
ZAECMHC 43, and Van Zyl NO v Nedbank Ltd(20832/2019)
[2023] ZAWCHC
120.
sino noindex
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