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# South Africa: North Gauteng High Court, Pretoria
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## Kanjani Trading (Pty) Ltd v Member of the Executive Council Department of Agriculture, Rural Development Land & Environmental Affairs (Mpumalanga Province) (Appeal) (A88/23)
[2025] ZAGPPHC 420 (15 April 2025)
Kanjani Trading (Pty) Ltd v Member of the Executive Council Department of Agriculture, Rural Development Land & Environmental Affairs (Mpumalanga Province) (Appeal) (A88/23)
[2025] ZAGPPHC 420 (15 April 2025)
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sino date 15 April 2025
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case Number: A88/23
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED: NO
SIGNATURE
In the matter between:
KANJANI
TRADING (PTY) LTD
Appellant
and
THE MEMBER OF THE
EXECUTIVE COUNCIL:
DEPARTMENT OF
AGRICULTURE, RURAL
DEVELOPMENT LAND &
ENVIROMENTAL AFFAIRS
(MPUMALANGA
PROVINCE)
Respondent
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 e-mail and by uploading it to the electronic file
of this matter on Caselines. The date
and for hand-down is deemed to
be 15 April 2025.
Summary: An appeal
against an order dismissing an action for want of diligent
prosecution. Where the requirements of the dismissal
of action are
not met, a Court of appeal is entitled to interfere with the exercise
of a loose discretion. In dismissing an action
for want of
prosecution, a court does not exercise a true discretion. Considering
and entertaining a settlement of an action is
part and parcel of
litigation and the Rules purposively interpreted encourages that
entertainment and consideration. When such
a process happens and
other litigation steps are put in abeyance, there is no room for
allegations of delay in prosecution, particularly
where the other
party is unable to demonstrate serious prejudice. The Court below
erred when it concluded that (a) there was an
inordinate delay
occasioned in this litigation; (b) the demonstrated delay, if any,
was one that is inexcusable; and (c) that a
serious prejudice was
shown to have been suffered by the other party.
The Rule 39(11)
application, although granted, and the granting thereof had not been
challenged, was an unnecessary application,
which put a spoke to the
litigation. A party may not be forced by a court to amend its
pleadings. It remains the wish of a party
that can be exercised any
time before judgment. Failure to exercise a wish can never be
considered as a delay since litigation
may still proceed with or
without the amendment. The case of the appellant, as pleaded is not a
hopeless case. It remains the duty
of a court to make such a
determination after, in line with section 34 of the Constitution and
the application of the common law
rule of
audi alteram partem
,
hearing evidence for and against. The appellant’s case is a
simple one of payment for services rendered at the special instance
and request of the respondent. On the fair assessment of the
pleadings, it is common cause that the appellant performed the
services
and invoiced for that. The basis of refusal to pay is
simple, and it is that the appellant charged for services it was not
actually
contracted to perform. Such becomes a triable issue to be
resolved by evidence and not pleadings. A party is not compelled to
plead
evidence (
facta probantia
) but only facts (
facta
probanda
).
Given the draconian
nature of a dismissal of an action order, it must be granted
sparingly and only in exceptional circumstances
and where the
interests of justice so commands. This Court is empowered by section
19 of the Superior Courts Act to direct further
litigation of the
dispute. Held: (1) The appeal is upheld and the order of the Court
below is set aside and replaced with an order
dismissing the
application to dismiss the action with an appropriate order as to
costs. Held: (2) The respondent to pay the costs
of the appeal which
includes the costs of employing two counsel, to be settled or taxed
at scale C. Held: (3) The parties are ordered
to apply for judicial
case management.
JUDGMENT
CORAM MOSHOANA, J,
RETIEF J and TEFFO J (concurring)
Introduction
[1]
Litigation
is a game in which the Court is umpire
[1]
.
Like any other game, it ought to be played in accordance with the
rules of the game. Missive dialogue is not a process contemplated
in
the rules of the game of litigation. The rules instead contemplate
the exchange of pleadings (formal court documents setting
out
parties’ respective cases). The present litigation was, for a
while, marred by ferocious missive dialogue, which can
only suggest
that parties busied themselves with something not contemplated in the
game of litigation. A fervently held view by
one party to the
litigation, no matter how eloquently it is displayed in a missive
dialogue, does not suggest correctness. In this
game of litigation,
there is only one umpire, and that is the court.
[2]
That said, this is an appeal that arrives at this
Court with the leave of two judges of the Supreme Court of Appeal
after the Honourable
Mr Justice Sardiwalla refused leave to appeal.
It is directed to, but, a, part of the litigation that these parties
before us are
subsumed into. The appeal is opposed by the Member of
the Executive Council: Department of Agriculture, Rural Development,
Land
and Environmental Affairs, Mpumalanga Province (“MEC”).
Factual matrix
appertaining the present appeal
[3]
It
must be pointed out upfront that the record of this appeal runs into
some 459 pages contained in five volumes. In this Court’s
view,
the affidavits filed in support of the application to dismiss were
extremely prolix and verbose.
[2]
For instance, the founding affidavit, inclusive of the confirmatory
affidavits comprised of a solid 88 pages. The answering affidavit
inclusive of annexures thereto and confirmatory affidavits comprised
of 51 pages. The replying affidavit comprised of 29 pages.
It
suffices to mention, in passing, that motion proceedings are not
designed to deal with disputes of fact. Given the size of the
papers
in the application to dismiss, a dispute of fact was bound, as it
did, to develop.
[4]
Therefore, in this judgment, only the salient
facts would be narrated. Kanjani Trading (Pty) Ltd (“Kanjani”)
was a service
provider to the Department of Agriculture, Rural
Development, Land and Environmental Affairs, Mpumalanga Province
(“DARDLEA”).
This, after Kanjani was awarded three
contracts. The dispute between Kanjani and the DARDLEA emerged in
relation to two contracts,
in respect of Gert Sibande and Nkangala.
Since the award, Kanjani performed work and invoiced for payment in
respect of the performed
work. As at the time of the dispute, the
DARDLEA had honoured invoices to the tune of about R121,000,000.00.
[5]
Midstride the working relationship, the DARDLEA
decided to stop honouring the invoices for work performed by Kanjani.
The basis
for the refusal to honour the invoices was that there
appeared to be
invoicing irregularities
(constituted by wrong hectares charged for,
services not contracted for being charged for, and wrong rates per
hectares being charged
for). The invoices which the DARDLEA refused
to pay amounted to approximately R69,000,000.00. A total of about 452
issued invoices,
which of course evidence the work allegedly
performed by Kanjani, were disputed and not paid.
[6]
Chagrined by the refusal to pay, on or about 5
August 2014, Kanjani instituted an action against the MEC and
demanded payment of
an amount of R68, 767,767.24. The MEC entered an
appearance to defend the action. Since Kanjani held a view that the
MEC is bereft
of a
bona
fide
defence and the appearance to defend was entered
solely for the purposes of delay, it applied, in terms of the Rules
of this Court,
for a summary judgment. Of significance, when the
application for summary judgment was resisted, no mention was made
that the case
of Kanjani was hopeless. Instead, the Head of the
Department, in her capacity as an accounting officer, Ms Sindisiwe
Prudence Xulu,
testified amongst others, as follows:
“
The
Department denies that the plaintiff is entitled to be paid any
amounts as alleged in “A6”, and denies that the
plaintiff
has rendered services which entitles it to invoice the Department as
alleged in “A6”. To the contrary, certain
invoices were
approved and paid by Departmental officials, in the circumstances
where no payment ought to have been made. In certain
instances,
overpayments were made and invoices were inflated. A proper forensic
analysis which will be undertaken in due course
will reveal serious
shortcomings in the payment system which was implemented by
Departmental officials and lack of proper controls
which unduly
exposed the Department…
The Department’s
contention is that the plaintiff has overcharged it. The Department
has requested the plaintiff to provide
it with credible supporting
documentation in substantiation of the invoices that it has submitted
which the Department disputes.
The plaintiff has failed to provide
any credible supporting documentation. The Department is not obliged
to pay to the plaintiff
invoices which are in dispute in respect of
which there is no credible supporting documentation to it.”
[7]
At the time the summary judgment was resisted, the
MEC was represented by the State Attorney. For reasons that are not
readily apparent
from the papers, the State Attorney withdrew as
representatives of the respondent. Another set of attorneys came on
record for
the MEC. Similarly, for reasons not readily apparent, that
set of attorneys withdrew as well. The present attorneys of record
entered
the ongoing litigation space on or about 3 April 2017. For
the entire period spanning three years, pleadings were exchanged and
various interlocutory applications were launched. The first time that
the action was enrolled for trial was on 31 July 2017. I
pause to
mention that, at that stage, the parties had reached a
litis
contestatio
(pleadings were closed).
[8]
Three weeks before the appointed trial date,
certain amendments were proposed to the counter-claim (the claim to
set aside the contracts
on the basis of legality) launched by the
MEC. Kanjani proposed a postponement of the trial. This proposal was
not met with the
approval of the MEC. Such compelled Kanjani to
launch a substantive application for a postponement of the oncoming
trial. A few
days before the commencement of the trial, the MEC
relented, as such, by agreement between the parties, the trial was
postponed.
[9]
A new trial date was applied for. A date of 11-22
February 2019 was allocated by the Deputy Judge President (“DJP”)
of this Court. Owing to the insufficiency of the allocated days for
the trial, the DJP was approached again in 2018. Resultantly,
the
action was enrolled for a six week (11 May to 19 June 2020) trial,
which was set to commence on 11 May 2020. Parties were notified
of
this date on 7 November 2018. Both parties prepared for the trial
that was upcoming for a period of about 19 months. On the
version of
the MEC, the trial preparations continued from his side. I pause to
mention that ironically, the MEC was preparing to
meet what would
later be termed a hopeless case. Howbeit, in late 2019 COVID-19
struck. On or about 26 March 2020, the country
was put on hard
lockdown.
[10]
On Kanjani’s version, the hard lockdown
impeded its trial preparation and it was unable to consult with its
witnesses inter-provincially.
Due to this impediment, Kanjani, toyed
with an idea to apply for a postponement. Such an idea was overtaken
by an application “
supposedly
”
launched in terms of Rule 39(11) of the Uniform
Rules of this Court. The Rule 39(11) application was argued on 27 May
2020. Ultimately,
on or about 8 June 2020, an order which was not
supported by any reasons was made by Sardiwalla J. The order was
substantial and
it comprised of about 5 pages. It suffices, for the
purposes of this judgment, to extract a portion of that order, which
the MEC
argued that it implied that Kanjani was compelled to amend
before the action may proceed to trial again. That portion read: -
“
The
plaintiff is precluded from leading evidence on any type of service
allegedly rendered or any type of goods allegedly delivered
or any
rate allegedly agreed upon, unless services and goods and rate have
been pleaded as constituting part of the first or second
agreement.”
[11]
I
pause to mention that this order is consistent with the known and
well established principle of procedural law that a party is
not
entitled at a trial to present an unpleaded case
[3]
.
It was the granting of the Rule 39(11) application that invited a
barrage of missive dialogue. From 22 June 2020 up to an including
April 2021, ferocious missive dialogue entered the litigation
stage
[4]
. It ought to be
remembered that since the trial did not proceed from 11 May 2020,
procedurally, the next step would have been an
application for a new
trial date. However, it must be mentioned that on or about 9 April
2020, Kanjani effected an amendment to
its particulars of claim which
saw the quantum claimed being reduced to R65,435, 454.26.
[12]
In the ferocious missive dialogue what became
apparent was that in the view of the MEC, the Rule 39(11) order
foreshadowed the need
for various amendments to the particulars of
claim. The MEC suggested that such amendments be effected on or about
30 October 2020.
Kanjani held a different view and stated that the
Rule 39(11) order did not affect all of its claims. This difference
of opinion
on the interpretation of the order continued for a while.
At some point, Kanjani toyed with the idea to amend its particulars,
but apparently settlement discussions were held, which prevented it
from making any amendments to its case. The existence of the
alleged
settlement discussions was hotly contested by the MEC. Amongst the
missives that were exchanged laid a letter to the MEC,
which was
never responded to, which recorded amongst others, the following:
“
Your
client being an organ of state which litigates with public funds and
which has a constitutional obligation to finalize disputes
expeditiously, as you record yourself, may want to reconsider the
report issued as far back as 14 April 2014 by …who recommended
that your client pays the amount in terms of the settlement signed by
the MEC and which was also recommended by your client’s
Acting
Chief Director …
Had the report been acted
upon … your client would have saved millions on interest and
legal fees which would have been put
to better use in the service of
the beneficiaries of the Department.
Our client is still
willing to accept as basis for its settlement offer, the amount
agreed to between the parties on 28 January
2014, plus interest
thereon and a contribution to our client’s legal costs as set
out as follows …
We look forward to your
client’s acceptance in compliance with its constitutional
obligation to finalize disputes expeditiously
and cost effectively.”
[13]
As mentioned, a dispute arose as to whether one Mr
Xaba carried any mandate to negotiate a settlement and that he misled
Kanjani.
However, for the purposes of this judgment, it is obsolete
to regurgitate the facts appertaining the disputed settlement
allegations.
However, it appeared to have been Kanjani’s case
that it wished to give those settlement negotiations a chance before
it
took a further step and which would result in the increase of
litigation costs. For that, Kanjani was accused of delaying the
progress
of the litigation and holding out for a better settlement
offer. What was upfront for the MEC was to see Kanjani complying with
the Rule 39(11) order and amend its particulars of claim. Ironically,
when in November of 2021, Kanjani sought to amend its particulars,
the MEC objected. That forced Kanjani to launch a Rule 28(4)
application on or about 30 November 2021.
[14]
Withal, on 6 April 2021, the MEC launched an
application to dismiss the action. It bares mentioning that as a
parting shot, the
missive of 2 October 2020 from the MEC’s
legal team was that if the proposed amendments, the MEC awaited the
whole time for,
does not arrive, the necessary steps would be
taken to bring this farcical litigation to an end as expeditiously as
possible.
I pause to mention that it was, in my view, inappropriate
for the MEC, through his legal team to have labelled the litigation
farcical.
This Court is unable to observe anything imbecilic or
buffoonish about a litigation where payment for services rendered
piggy-backed
by a legality review (counterclaim) is concerned. That
notwithstanding, the application to dismiss the action was launched
10 months
after the Rule 39(11) order. Kanjani contends that it was
taken by surprise when the application to dismiss was launched.
[15]
The application to dismiss the action hearing
proceeded on 1 December 2021 and an order, which was not accompanied
by reasons, dismissing
the action was made on 2 December 2021. That
dismissal, put a spoke on the amendment application that was launched
on 30 November
2021. This, according to Kanjani. On 14 December 2021,
Kanjani requested Sardiwalla J to provide it with reasons for the
order
of 2 December 2021. Those reasons were only availed in a
written judgment dated 22 June 2022. Kanjani launched an application
for
leave to appeal. On 8 September 2022, an order was made refusing
leave to appeal. Kanjani petitioned the Supreme Court of Appeal
for
leave to appeal. On 30 November 2022, judges of appeal, Honourable
Justices Zondi JA and Salie-Hlophe AJA granted leave to
appeal.
Applicable legal
principles regarding a dismissal of an action
[16]
With
regard to the law applicable to delay in prosecution of a claim, Lord
Denning M.R. in
Allen
v Sir Alfred McAlpine and Sons
[5]
had the following to say:
“
The
principle on which we go is clear, when delay is prolonged and
inexcusable and is such as to do grave injustice to one side
or the
other, or to both, the court may in its discretion dismiss the action
straight away, leaving the Plaintiff to his remedy
against his own
solicitor who has brought him to this plight.”
[17]
In
Sanford
v Haley
[6]
Moosa J had the following to say:
“…
It
has an inherent jurisdiction to control its own proceedings and as
such has power to dismiss a summons or an action on account
of the
delay or want of prosecution. The Court will exercise such power
sparingly and only in exceptional circumstances because
the dismissal
of an action seriously impacts on the constitutional and common-law
right of the plaintiff to have the dispute adjudicated
in a court of
law by means of a fair trial. The Court will exercise such power in
circumstances where there has been a clear abuse
of the process of
Court
.
”
There
are three requirements to be demonstrated, for an application to
dismiss an action to be granted, namely: (a) there must be
a delay in
the prosecution of the case; (b) the delay must be inexcusable; and
(c) there must be serious prejudice to the defendant
[7]
.
However, the veritable question is whether there is behaviour which
oversteps the threshold of legitimacy
[8]
.
This Court is unable to observe such a behaviour in this particular
instance. It cannot be said that the conduct of Kanjani was
in any
manner or shape egregious. On the conspectus of the available
evidence, in the view of this Court, the MEC and his legal
team
employed tactics that derailed the present litigation and made it to
be glacial.
[18]
Diplock
LJ in
McAlpine
[9]
observed
thus:
“
It
is then a Draconian order and will not be lightly made. It should not
in any event be exercised without giving the plaintiff
an opportunity
to remedy his default, unless the court is satisfied either that the
default has been intentional and contumelious,
or that the
inexcusable delay for which the plaintiff or his lawyers have been
responsible has been such as to give rise to a substantial
risk that
a fair trial of the issues in the litigation will not be possible at
the earliest date at which, as a result of the delay,
the action
would come to trial if it were allowed to continue…”
[19]
Lord
Atkin in
Ras
Behari and Others v The King Emperor
[10]
aptly stated the following: “
Finality
is a good thing, but justice is better”
.
Dismissing the action even in the absence of grave injustice and
serious prejudice will faithfully serve finality but it shall
not
serve the interests of justice.
[20]
In
Autopax
Passenger Services (Pty) Ltd v Transnet Bargaining Council and
Others
[11]
,
the Labour Court, after placing reliance on the case of
Setsokosane
Busdiens (Edms) Bpk v Voorsitter, Nasionale Vervoer Kommisie en
Andere
[12]
,
cited with approval
[13]
what
was said in
Haley
[14]
.
The Court of Appeal for British Columbia, in
Plaza
500 Hotels Ltd v SRC Engineering Consultants Ltd
(
Plaza
)
[15]
,
felicitously stated the following, which this Court makes common
cause with: -
“
As
to dismissal for want of prosecution, SRC referred to the test set
out in Wiegert v Rogers,
2019 BCCA 334
…
The order sought by the
defendants is not readily granted. Dismissal is a “blunt tool”
to be used sparingly” in
response to procedural delay…
The remedy is a “draconian” one “only to be invoked
in the most egregious
of cases” … It is to be avoided
where it is reasonable to do so…
A dismissal order will
not usually be granted on a first application for relief arising from
procedural delay, even intentional
delay. Injustice might result from
such a course of action,
In Giacomini Consulting,
a five-member division of this Court recently revised the
long-standing test for dismissal of an action
for want of prosecution
described in Wiegert. That long-standing test required a judge to be
satisfied that there had been inordinate
and inexcusable delay in the
prosecution of the action; the delay had caused, or was likely to
cause a serious prejudice to the
defendant and it was in the interest
of justice to dismiss the action
In Kultak Financial Inc v
Grewal
2018 BCCA 94
, Justice Wilcock emphasised that the goal of an
application to dismiss for want of prosecution is to secure the
effective and efficient
administration of justice. Accordingly, it
relates to the proceeding itself, not the underlying cause of action.
For that reason,
he stated, it is an error to measure the period of
delay from the date the cause of action arose for purposes of
determining whether
it is inordinate.”
[21]
Based
on the authority of
Plaza
[16]
,
which this Court does not hesitate to follow, even if it emanates
from a foreign jurisdiction, it states a law which is consistent
with
section 34 of the Constitution of the Republic of South Africa, the
dismissal of an action must happen only if the interest
of justice
would be served thereby. Section 39(1)(c) of the Constitution
provides that when interpreting the Bill of Rights, a
court may
consider foreign law. Dismissal of an action is based on a common law
maxim
of
vigilantibus
non dormientibus jura subveniunt
(the
law assists those who are vigilant not those who sleep on their
rights). Section 39(2) of the Constitution enjoins a court,
when
developing the common law, to promote the spirit, purport and objects
of the Bill of Rights. Section 34 guarantees everyone
a right to have
any dispute that can be resolved by the application of law decided in
a fair public hearing before a Court. The
common law principle of
audi
alteram partem
guarantees
anyone before being condemned, a hearing. Dismissal of an action
before hearing the merits of the action is inconsistent
with the
audi
alteram
partem
rule
and section 34 of the Constitution.
[22]
This
Court agrees with
Plaza
[17]
when
it said: -
“
Under
this framework of analysis, the prejudice to the defendant’s
ability to defend the action remains a relevant, and indeed
important
consideration. However, prejudice to the defendant is not a
pre-requisite to an order dismissing a claim for want of
prosecution.
At the interest of justice stage, the court should look to all
relevant circumstances rather than prioritizing the
impact of delay
on trial fairness
.”
[23]
Consideration
of the interests of justice element entails consideration of (a) the
prejudice the defendant will suffer defending
the case at trial; (b)
the length of the delay; (c) the stage of the litigation; (d) the
impact of the delay on the defendant’s
professional, business
or personal interests; (e) the context in which the delay occurred,
in particular whether the plaintiff
delayed in the face of pressure
by the defendant to proceed; (f) the reasons offered for the delay;
(g) the role of counsel in
causing the delay; and (h) the public
interest in having cases that are of genuine public importance heard
on their merits
[18]
. In my
view, regard being had to any of the above considerations, the
interests of justice did not command for a Draconian order
of
dismissal of Kanjani’s claim, which undoubtedly had reached a
trial stage.
Judgment of the Court
below
[24]
It
must be stated that from paragraphs 17-19 of the judgment the erudite
Sardiwalla J, admirably and with adequate sagacity and
perspicacity
delineated the legal principles applicable to a dismissal of an
action for want of prosecution. However, in this court’s
view,
the learned Judge does not make a definitive finding as to what the
delay period is, in this litigation. The first question
to be
addressed in an application for dismissal for want of prosecution is
whether there has been an inordinate delay or not. In
Sternberg
& another v Hammond & anothe
r
[19]
,
it was confirmed that in order for an application of that nature to
succeed, the defendant must show that there is an inordinate
delay.
Most significantly, the Court remarked that it should not be too
difficult to recognise inordinate delay when it occurs.
In
Wiegert
v Rogers
[20]
,
the Court stated that inordinate delay is delay that is immoderate,
uncontrolled, and excessive and out of proportion to matters
in
question.
[25]
Regard being had to the finding set out below,
this Court must assume that the contended inordinate delay period, is
that of eleven
months:
[21] … However, to
the contrary the Respondent despite the order of 8 June 2021
blatantly disregarded this Court’s
directives when called upon
for eleven months and did not provide any explanation as to its
inability to meet the timeframes set
for the filing of the amendments
by the Applicant…”
[26]
As indicated above, it remained the duty of the
MEC to show that there is an inordinate delay. In motion proceedings,
a party makes
its case in the founding affidavit. Having scoured
through the founding affidavit deposed to by Mr Zola Majavu, the
MEC’s
attorney of record, this Court was unable to emerge with
any mention of eleven months being alleged as an inordinate delay.
Paradoxically,
before us, counsel for the MEC, submitted that the
inordinate delay was for 19 months. Regretfully, this submission is
not bolstered
up by the founding papers. Unpleasantly, the Court
below does not make mention of it.
[27]
In
Director
of Hospital Services v Mistry
[21]
,
the Court, stated the law as follows:
“
When,
as in this case, the proceedings are launched by way of notice of
motion,
it
is to the founding affidavit which a Judge will look to determine
what the complaint is
…
and
as been said in many other cases … an applicant must stand or
fall by his petition and the facts alleged therein and
that although
sometimes it is permissible to supplement allegations contained in
the petition, still
the
main foundation of the application is the allegation of facts stated
therein, because those are the facts which the respondent
is called
upon either to affirm or deny
.”
[Own emphasis]
[28]
In
Minister
of Safety and Security v Slabbert
[22]
,
the learned Mhlantha JA, as she then was, aptly stated the following:
“
The
purpose of pleadings is to define the issues for the other party
and
the court
.
A party has a duty to allege in the pleadings the material facts upon
which it relies. It is impermissible for a plaintiff to
plead a
particular case and seek to establish a different case at trial
.
It is equally not permissible for a trial court to have recourse to
issues falling outside the pleadings when deciding the case
.”
[Own emphasis]
[29]
What this Court could observe from the founding
affidavit, under the heading “The delays are highly
prejudicial” at
paragraph 84, Mr Majavu stated the following:
“
I
have already made the point that Kanjani’s cause of action in
relation to its claims in Gert Sibanda arose 9 to 10 years
ago, and
in Nkangala it was 8 to 10 years ago.”
[30]
This allegation seems to make a case of a delay of
about 10 years. Of course, this cannot be correct. A delay cannot be
reckoned
from the date of the cause of action. Nevertheless, Mr
Majavu, stated, amongst others, as follows:
“
4.32
Sardiwalla J’s order clearly contemplated that Kanjani must
amend its pleadings before the matter can proceed
to trial again;
4.33
Although almost a year has passed since Sardiwalla J made his order,
Kanjani has still not amended (despite
me writing to Mr Van Strijp on
three separate occasions over the past year practically begging him
to finalise Kanjani’s
particulars of claim);
4.34
Kanjani continues to refuse to amend its patently deficient
pleadings, in fact it refuses to do anything
at all to advance the
litigation…
4.35 It
has become abundantly clear that Kanjani simply cannot advance the
litigation. But even if I am wrong
on this, it is clear that Kanjani
has no interest in advancing the litigation;
4.36
Kanjani is quite obviously holding out for a better settlement
offer.”
[31]
What this Court can decipher from the above
allegations, is that, the supposed inordinate delay was firstly
caused by the refusal
to amend the particulars of claim, since in Mr
Majavu’s interpretation of the court order of 8 June 2020,
Kanjani was ordered
to amend. That delay, occasioned by the failure
to amend, continued for a period of a year. Resultantly, his
conclusion, which
he acknowledged may be wrong, was that: (a) Kanjani
simply cannot advance the litigation (obviously by succumbing to his
ebulliently
held view that Kanjani was ordered to amend before the
matter can proceed to trial again); and (b) Kanjani had no interest
in advancing,
by complying with the order to amend, the particulars
of claim.
[32]
It bears mentioning that a pleading must only
contain the material facts and not evidence. Evidence is a matter for
trial, where
the pleaded material facts are substantiated. For
example in an action for payment of money for services rendered at a
special
instance and request, a party is compelled to plead that
services were rendered, but never how the services were rendered.
Such
is a matter for evidence and not pleadings. It is only in motion
proceedings that a party is permitted to plead and give evidence
symbiotically, but never in action proceedings. Pleadings define
issues and not evidence. Hence a party is not permitted to lead
evidence on an unpleaded issue. To the extent that Kanjani was
expected to plead evidence, such an expectation or compulsion for
that matter is not lawful and deserves to be rebuffed or ignored. Put
differently, evidentiary issues are triable while material
facts are
pleadable.
[33]
Although it can be said that the learned Judge was
not far off the mark, when he stated 11 months as opposed to a year,
the veritable
question is, where in the pleadings the MEC alleged
that there was an inordinate delay of 11 months. Clearly, nowhere.
Better still,
other than mentioning the 11 months, the learned Judge
did not find that the 11 months’ delay is inordinate in the
sense
of it being immoderate, uncontrolled and excessive and out of
proportion to the matter in question. This Court is acutely aware
that the parties had waited for a period of about three years for a
trial date to be allocated. The question then becomes, if waiting
for
11 months’ amounts to an inordinate delay, why the waiting for
three years was not considered an inordinate delay.
[34]
This Court agrees with a submission by counsel for
the appellant that the 10 months’ period, being reckoned from
the date
of the Rule 39(11) order to the date when the application to
dismiss was launched, does not amount to an inordinate delay. In the
absence of inordinate delay being shown,
cadit
quaesto
. The application for dismissal
could not move out of the starting blocks and ought to have been
dismissed outright.
[35]
With
considerable regret, it is noted by this Court, that the learned
Judge also suggested in his judgment that Kanjani was ordered
to
amend its particulars of claim. Regrettably, such is not apparent
from the text of the order of 8 June 2020. The SCA in
Martrade
Shipping and Transport GmbH v United Enterprise Corporation and MV
Unity
[23]
,
stated, after affirming what Trollip JA observed in
Firestone
South Africa (Pty) Ltd v Gentiruco AG
[24]
,
the following, with regard to the interpretation of a Court order: -
“
The
starting point … is to determine the manifest purpose of the
order. This was endorsed by the Constitutional Court …
This
Court in Natal Joint Municipal Pension Fund v Endumeni Municipality,
described the process of interpretation as involving
a unitary
exercise where, in the face of ambiguity, a sensible interpretation
is to be preferred to one which undermines the purpose
of the
document or order.”
[36]
Regard being had to the purpose of Rule 39(11),
which shall be discussed later in this judgment, it is perspicuous
that the purpose
of the order made in terms of it is to deal with
issues of where the onus should lie. The order correctly stated a
party is not
allowed to advance an unpleaded case. Such an order
speaks to the issue of an instance of onus contemplated in Rule
39(11). It
is not sensible to interpret paragraph 1.4 of the order to
mean that Kanjani was compelled to amend. Such an interpretation is
at odds with Rule 28 of the Uniform Rules. In terms of Rule 28(1) it
takes a desire of a party to amend a pleading. A desire is
a strong
feeling of wanting to have something or wishing for something to
happen. It is incongruent with the literal meaning of
the word desire
for a Court of law to compel a party to have a wish to amend. The
rule outlines the procedure to adopt once a desire
to amend is made.
In that part of the litigation game, pertaining to the amendment of
pleadings, a Court only enters the fray as
an umpire if there is an
objection to the desired amendment. Until then, the rules of the
litigation game do not allow a Court
to play any role. What will
ignite the involvement of a court is a Rule 28(4) application. Rule
39(11) is not designed to deal
with pre-trial stage issues after
pleadings are considered to be closed within the contemplation of
Rule 29.
[37]
It appears to be the case that the MEC conflated
the purpose of Rule 39(11) with the situations catered for in Rules
21 and 23 of
the Uniform Rules. It was contended by the MEC that the
Rules 21 and 23 processes were swallowed by the Rule 39(11)
application.
It cannot be. For instance, Rule 21(2) lucidly provides
that after the close of pleadings any party may deliver a notice
requesting
only such further particulars as are strictly necessary to
enable him to prepare for trial. It must be stated that the
strictures
of the Rule cannot be by-passed through a bastardized Rule
39(11) application. If the requested particulars are not strictly
necessary
to enable preparation, such particulars may not be
requested. Rule 21(4) provides a remedy for failure to deliver the
strictly
necessary particulars. An application for (a) order for the
delivery; (b) dismissal of the action or striking of the defence; or
(c) an order a Court deems meet, may be made.
[38]
Rule 23 provides a remedy for taking an exception,
which if upheld will for instance obliterate particulars that do not
disclose
a cause of action. Again, it bears mentioning that a
bastardized Rule 39(11
) application cannot be used to achieve
an exception.
[39]
It must be remembered
that the right to amend is available to a party right up to before
judgment. Rule 28(10) specifically provides
that at any stage before
judgment, a Court may grant leave to amend any pleading
[25]
.
Accordingly, it cannot be correct, as ardently submitted, that
Kanjani had lost its right to amend, nor can it be said that its
failure to make a desire to amend constitutes an inordinate delay.
The trial could have, as it did in the previous occasion, been
enrolled without any amendment being desired or made. Rule 29(2)(b)
of the Uniform Rules contemplates that any party may apply
for a
trial date. As such, once the overt manifestation to desire an
amendment does not materialise, the MEC could have applied
for a
trial date. This step could have saved the MEC from the misery of
surmising whether Kanjani has or has not lost interest.
Particularly
in a situation where its counterclaim also requires determination.
[40]
Accordingly, the conclusion this Court had reached is that the
learned Judge erred when he found that Kanjani
was compelled to
amend. Ordinarily, where a Court upholds an exception, it will only
afford a party an opportunity to amend so
as to regularise an
offending pleading. There is no way that a Court would compel a party
to amend. Any order to that effect will
definitely be a nullity since
it offends the principle of legality. A Court does not have such
powers to compel a party to amend.
Additionally, to the extent that
the learned Judge impliedly found that the period of not desiring to
amend amounts to an inordinate
delay, the Judge misdirected himself
in that regard.
[41]
Since
this Court finds that there was no inordinate delay demonstrated, it
is obsolete to deal with what the learned Judge refers
to as an
inexcusable explanation. There was simply nothing to be explained and
or excused. This Court shall in due course discuss
the issue of
settlement negotiations used to explain the delay of 10 months. For
now, this Court takes a firm view that a delay
of 10 months can never
be considered inordinate in the context of this case. An incorrect
impression was created by Mr Majavu that
there was possibly a delay
of ten years. A comment in passing is not altogether out of place. In
all the interlocutory applications,
(Rule 39(11) and the application
to dismiss the action), Mr Majavu is the main deponent. Of course,
there is nothing wrong, if
Mr Majavu had knowledge of all the facts
he deposed to. As confirmed in
Ganes
and another v Telecom Namibia Ltd
[26]
,
he requires no authority to testify. It is just peculiar, if
consideration is given to the fact that he joined the litigation
only
in 2017.
[42]
Turning to the most significant requirement of
serious prejudice. In this Court’s view, counsel for the
appellant is correct
when he submits that the MEC has failed to
demonstrate serious prejudice. At paragraph 20 of the judgment, the
learned judge correctly
held that the onus of proving what he termed
real prejudice, which is no different from serious prejudice, remains
with the defendant.
Howbeit, such prejudice must be pleaded by the
applicant for a dismissal of an action. The MEC pleaded prejudice in
the following
manner: -
“
4.37
This “never ending” litigation is causing serious
prejudice to the Department caused by it having to
carry a contingent
liability of approx. R140 million in its books (a capital of approx.
R65 million and in duplum interest of another
R65 million and costs
estimated at approx. R10 million)
[43]
Additionally, the MEC pleaded the following:
“
Summary
of the prejudice caused by the delays
90.
Kanjani is plainly dragging its heels.
91.
The undue delays animating the manner in which Kanjani is conducting
the prosecution of
this case has resulted in serious prejudice of the
type characterised in this affidavit by me as “
evidentiary
prejudice
”, but there is also the prejudice associated with
having to carry liability in accounting records, to which I have made
reference
in the attached correspondence.
92.
If the litigation is allowed to continue, the prejudice will increase
as the matter drags
on. At this stage there is no end in sight.
93.
Moreover, sound policy reasons exist to justify the court bringing
this litigation to an
end by dismissing Kanjani’s action.”
[44]
In the founding affidavit, the so-called
evidentiary prejudice was stated by way of examples and not fact, and
was stated as, memories
of witnesses fading; evidence becoming stale
and sometimes lost; and the inability to prove allegations.
Speculative evidence of
staff turnover and the death of a staff
member was also mentioned. The difficulty with this evidence is that
the deponent does
not state when this “highly prejudicial”
situation set in. Ironically, for the trial of 11 May 2020, the MEC
and the
department’s legal team prepared in earnest for the
upcoming trial; attempted to obtain agreement on some of the “big
issues”; limit the areas of dispute; and various procedural
aspects as to who bears the onus of proof and the sequence of
how
evidence in the trial would be produced. The department’s
preparation for trial was extensive. As a sign of how ready
the MEC
was for trial, he opposed a request for postponement to a point of
compelling Kanjani to launch a substantive application
for
postponement. Days leading to the trial commencement, the MEC did not
behave like a litigant who was highly prejudiced by any
delays. In
the Court’s view, this alleged evidentiary prejudice is nothing
but a facade, and an afterthought which was aimed
at
oomphing
the application to dismiss. The question remains,
why not bring the application to dismiss before 11 May 2020 and only
lurk Kanjani
by launching a Rule 39(11) application. This Court is
far from being convinced about the
bona
fides
of the MEC
in launching the application to dismiss the action. This will be
illuminated when the necessity of the Rule 39(11) application
is
considered later in this judgment.
[45]
The
biggest issue for the MEC in the litigation was to have the action of
Kanjani, in a rather truncated manner, dismissed because
it is a
hopeless one in the MEC’s ebulliently held view. Unfortunately,
for the MEC, it is a Court, as an umpire, that must
make that call,
after affording litigants an
audi
alteram partem
.
The issue that Kanjani had a hopeless case, was, as it did, bound to
create a genuine dispute of fact, which is incapable of being
resolved on the affidavits. Despite, it being pertinently raised by
Kanjani, the learned judge did not invoke the provisions of
Rule
6(5)(g) of the Uniform Rules. Neither did the learned Judge resort to
the
Plascon-Evans
Paints (TVL) Ltd v Van Riebeck Paints (Pty) Ltd
[27]
rule
to justify the order granted in the midst of genuine dispute of
facts.
[46]
Howbeit, regrettably, nowhere in the judgment, is
it apparent that the learned Judge dealt with the alleged highly
prejudicial situation.
It is unclear as to why that was the case.
Instead, the judgment only reflects the following at paragraph 25,
which regrettably
does not deal with the pleaded case: -
“…
In
my view the Respondent should have recognized what was at stake when
the order of 8 June 2021 was granted and that there was
real
prejudice to the Applicant by refusing to agree on a date for the
amended particulars of claim to be submitted. This is undisputed
as
the Applicant could adequately prepare its defence and not informing
the Applicant of the alleged settlement talks and allowing
it to
proceed to believe that it would file an amended particulars of claim
at some stage, while and holding the Applicant to its
bargaining with
the Respondent, which the Respondent cannot approve (prove) with
confirmatory affidavits or any documentary evidence
of its existence
is inexcusable. Fairness dictates that the Respondent should not have
been allowed to take advantage of the situation.”
[47]
With
considerable regret, the above finding stands paradoxical to the
pleaded prejudice. It is clear that what the learned judge
considered
to be real prejudice is the refusal to agree on a date for the
amendment of the particulars of claim. In this Court’s
view,
such is far from being considered a serious prejudice. As already
held by this Court, the trial could have proceeded without
the
amendments and the order of 8 June 2020, did not on any benign
interpretation compel Kanjani to amend its particulars of claim.
Madam Justice Dickson confirmed in
Wiegert
[28]
that
the prejudice, contemplated in an application to dismiss an action,
is one concerned with the prejudice a defendant will suffer
in
mounting and presenting a defence if the matter goes to trial. Such a
prejudice is perspicuously absent in this matter. It is
indeed so,
that in an instance where an inordinate and inexcusable delay is
established, a rebuttable prejudice is presumed.
[29]
In this matter no inordinate and an inexcusable delay was
demonstrated. As held in
McAlpine
[30]
,
a grave injustice must be established. No such grave injustice has
been demonstrated on the facts of this case. Regard being had
to the
issues in this matter, this is likely to be a paper trial. For
instance, if it can be shown on an invoice that a wrong rate
has been
used; a wrong hectare has been used; a service not contracted for has
been charged for, Kanjani is bound to fail. Interpretation
of
contracts is a matter of law as opposed to evidence. On application
of the
parol
evidence
rule, the views of parties prior to the conclusion of a written
agreement, may not be admissible. On any interpretation
of a
document, a Court is bound to consider symbiotically, the text,
context and purpose
[31]
.
[48]
The
Court in
Lebelo
and 406 others v City of Johannesburg
[32]
had the following to say: -
“
[20]
The two claims presented by Lebelo and others are to a large degree
predicated on the terms of a collective
agreement. It is apparent
that this will be a paper trial as opposed to strictly viva voce
evidence, in relation to the non-payment
of the bonus, the COJ relies
on the provisions of the collective agreement to justify the
non-payment of the bonus. Similarly,
in relation to the wage
increment claim, the COJ relies on the provisions of the ‘sunset
clause’ in the collective
agreement. Regard being had to the
above, it is difficult to observe any serious prejudice, which the
interests of justice would
propel this Court to a draconian exercise
of discretion.”
[49]
Since no serious prejudice was demonstrated, the
learned judge erred in dismissing the action, which is simply one of
services rendered
at the special instance and request of the MEC. On
a fair assessment of the pleadings, the parties seem to have enlarged
the dispute
unnecessarily. Involved herein is not necessarily a
breach of contract claim. The two pleaded contracts have been
admitted. Both
parties quibble about the interpretation of clauses 7
and 8 of the agreements. This is nothing the rules of interpretation
cannot
resolve. Unless fee farming is the propelling force, there
seem to be no logical basis for weeks of trial. Nevertheless, these
are issues that may arrest the attention of the trial Court in due
course.
Was a rule 39(11)
application necessary or not?
[50]
Although a determination on this issue may not
necessarily affect the upholding or dismissal of this appeal, since
it was raised
and argued, it is incumbent for this Court to deal with
it. It becomes particularly important because counsel for the
respondent
audaciously submitted that the action was partly-heard
before Sardiwalla J. It was actually not partly-heard.
[51]
In considering this question, the best place to
start is the text of the rule and where it is located in the Rules.
The MEC had
taken a wrong view that that which could not be done
under Rules 21 and 23 could be done under this Rule. This Court
disagrees
with that view. The rule reads as follows:
“
39(11)
Either party may apply at the opening of the trial for a ruling by
the court upon the onus of adducing evidence,
and the court after
hearing argument, may give a ruling as to the party upon whom such
onus lies: Provided that such ruling may
thereafter be altered to
prevent injustice."
[52]
As a departure point, this Rule is located in the
place where trial procedures are regulated. Such must imply that its
invocation
is suitable at the stage where pleadings are closed within
the contemplation of Rule 29. It could not have been the intention of
the drafters of the Rule that re-opening of the closed pleadings must
happen at this stage. The Rule is specific as to upon what
it must
apply. The ruling to be made is also confined to what it must apply
to. This is the rule of onus and nothing else. It cannot
be
bastardized to rule on issues outside the
onus
issue. This Court is acutely aware that the order
made in terms of this Rule is not under appeal. This Court will
depart from the
premise that Kanjani harbours no intentions to impugn
the order.
[53]
This
Rule was interpreted by Claassen J and this Court agrees with that
interpretation in
Intramed
(Pty) Ltd v Standard Bank of South Africa Ltd
[33]
.
Claassen J acknowledged that interpretation of the Rule was
res
nova
at
that time and in order to decide whether the ruling sought before him
was competent. In doing so, he said:
“
Upon
mere reading of Rule 39(11) it seems abundantly clear to me that the
term ‘onus of adducing evidence’ has two meanings.
It
refers firstly to the duty to commence leading of evidence but
secondly to the incidence of onus. This construction of the subrule
follows logically from the proviso to the subrule….In my view,
the express inclusion of the proviso in subrule (11
),
indicates that the Legislature intended to opt for a more liberal
approach, such as that adopted by the Cape Provincial Courts,
i.e. to
allow a Court to rule at the commencement of the trial on both the
duty to begin as well as the initial onus of proof on
the various
issues which might arise from the pleadings as they stand at that
point…Thus the sequence in which evidence
is called is
expressly linked to the onus of proof derived from the pleaded
issues.
In my view it makes good
sense that the onus of adducing evidence should also include a ruling
regarding the incidence of the burden
of proof. Trials such as this
where enormous amounts of money are at stake, are not regarded as a
tactical game. In my view it
would be in the interest of justice that
a litigant should be entitled to apply for a ruling pursuant to the
express provisions
of Rule 39(11) regarding both the order in which
evidence is to be adduced as well as a provisional ruling regarding
the onus of
proof on various issues…
It is now necessary for
me to analyse the pleadings in order to establish the duty to begin
leading of evidence as determined by
the incidence of the onus of
proof.”
[54]
It is
beyond perspicuous that the Rule is there to deal only with (a) duty
to begin and (b) the incidence of onus as guided by the
pleadings as
they stand at that time
[34]
.
Conspicuously absent from the text of this Rule is a possible order
for a party to amend its pleaded case. A typical order that
should
arise from the application of this Rule is one along the following
lines. The plaintiff has a duty to begin and the onus
to prove this
and that issue. To my mind the rule does not contemplate a
substantive formal application, as it was, for some inexplicable
reasons, done in this case. The Rule contemplates an informal request
for a ruling intra trial proceedings, hence provision for
an
alteration of a ruling should the interests of justice demand. To my
mind, the bringing of a formal and substantive application
in this
lis
was
like killing an ant with a sledge hammer.
[55]
Turning to the question raised and debated. Did,
leading to the trial, based on the pleadings as they stood at that
time, parties
quibbled about the duty to begin and the onus issue? On
the facts of this case there was no quibble that Kanjani attracted
the
duty to begin and the onus of proof on its pleaded case. The
pleadings remained practically the same even at the first trial in
2017. The question must be, why was the Rule 39(11) application not
necessary at that time? The MEC was ready to proceed to trial,
with
the same pleaded case. When summary judgment was resisted by the MEC,
phrases like ‘
patently deficient
pleadings’; ‘hopeless case’
;
and ‘
never be able to plead a
proper cause of action to legitimise the 452 invoices’
,
had ostensibly not yet reached the vocabulary of the MEC. More
importantly, the HOD stated in no uncertain terms that it has a
bona
fide
defence. A
bona
fide
defence can
only be mounted against a claim in law. No suggestion was made by the
HOD that the combined summons was excipiable on
any basis. A hopeless
case does not call for a demonstration of a
bona
fide
defence.
Simply put, the hopeless case narrative is, in this Court’s
fervently but respectfully held view, an afterthought
and a product
of legal machinations. The case of Kanjani is not hopeless and never
was. Reaching such a conclusion without hearing
evidence is not only
a dangerous tactical manoeuvre but a reckless conclusion.
[56]
It seems quite obvious that the Rule 39(11)
application was truly not necessary. It is beyond doubt that its
launching put a spoke
on a potential six weeks trial. In order to
observe the reason why it was launched, one needs to look no further
than the missive
dialogue. Before the relevant excerpts of the
missive dialogue are set out, it is important to make reference to
the formal court
documents. In preparation of the July 2017 trial, a
revised special trial note was filed which recorded the following
important
aspect, which relates to Rule 39(11):
“
Disputed
facts in respect of first claim
7.2
On which party the duty rests to demonstrate that the work
detailed
in the invoices was performed or not, inclusive of the extent of the
hectares referred to in the invoices.”
[57]
In preparation of the 11 May 2020 trial, another
note was prepared by the MEC’s legal team on or about 11 March
2020. That
note recorded, amongst other things, the following
relevant aspects: -
“
Main
issues between the parties
18 What is the contract?
18.1
The plaintiff bears the onus.
19 What work had to be
done under the contract?
19.1
The plaintiff bears the onus
19.2
The plaintiff will need to establish that it actually did the work
that it invoiced for and that such work
was done in accordance with
the contract.”
[58]
Regard being had to the above, the issue of onus,
which encapsulates the duty to begin contemplated in Rule 39(11),
would have been
resolved and an application for a ruling was obviated
thereby. However, in the self-same note, the following intimation was
made:
-
“
Interlocutory
application if any
21 There are no
interlocutory applications at this stage. To this we add only that
for approximately 5 years since the summons was
first served, the
defendant has been telling the plaintiff that its invoices are
incorrect inter alia because they do not conform
to the tariff in the
contract. The plaintiff has steadfastly denied it and refused to
revisit its invoices. Then, as the attached
letters make plain, three
months before the trial the plaintiff conceded that its invoices are
incorrect in as much as they do
not conform to the tariff. Now, with
only two months to go to the trial, we see no application from the
plaintiff to amend its
self-confessed incorrect claim based on
incorrect invoices. This, despite its stated intention to do so. We
raise this point because,
without an amendment, we simply cannot
understand how the trial can proceed. However, we do not know whether
or when the plaintiff
will eventually bring this much needed
amendment and how the trial will be affected by it.”
[59]
It is crystal clear that the MEC held a view that
the invoices were incorrect. The MEC also held a view that the only
permissible
manner to resolve that conundrum is to effect an
amendment. In its ebulliently held view, a trial was incapable of
proceeding without
an amendment being effected. Just to digress a
bit, procedurally, if a party holds a view that a pleading is vague
and embarrassing
or does not disclose a cause of action, a Rule 23
procedure becomes available for use. Should the other party accept
the alleged
deficiency in an impugned pleading, it may resort to a
Rule 28 procedure to regularise the offending pleading. With
considerable
regret, I find myself being unable to share the
ebulliently held view that a continuation of a trial would be
handicapped in any
manner whatsoever.
[60]
That said, I now turn to the missive dialogue. On
28 January 2020, a letter was directed to Kanjani’s legal team.
Pertinently,
a view was expressed that Kanjani relies on invoices
where it claims for items that are seemingly not covered by the
agreements
pleaded by it. Owing to that view, Kanjani was asked how
it plans to prove the invoices. Regard being had to the view held and
the question raised, the MEC took a view that the trial should be
removed from the roll to enable Kanjani to deal with the view
and the
question, which the MEC labelled “
shortcomings”
.
[61]
On 30 January 2020, Kanjani’s legal team
responded to the view and the question posed. Of significance, the
following was
recorded:
“
14.1
We hold the view that the matter should proceed since it is ripe for
trial.
14.2
We do not view any of the alleged shortcomings raised in your letter
to exist
or to justify the removal of the matter from the roll.
14.3
There is no obligation on our client to indicate how it intends
utilising the
allotted court time or which witnesses it intends
calling. At this stage all issues that are in dispute on the
pleadings will unfortunately
have to proceed to trial. Our client is
again under no obligation to explain why all these issues should
proceed to trial…”
[35]
[62]
In the correspondence of 14 April 2020, the legal
team of the MEC pinned their colours to the mast in so far as the
necessity of
the Rule 39(11) application is concerned. The following
was stated:
“
4
… We believe this is an important issue that the parties
should resolve, if possible, before the trial commences.
If the
plaintiff is not at first to deal with why the invoices are correct
and why the defendant should pay same, when will it
do so?
5 The
problem is compounded by your refusal to explain how you intend to
prove the invoices, the sequence of and
which witnesses you will
call, as well as the topics of their evidence. This is recorded in
your letter of 30 January 2020. We
need this information to prepare.
If we cannot immediately commence with cross-examination, the matter
might have to stand down.
Furthermore, we want our forensic auditor
to be in court when witnesses testify about the invoices, so that he
can provide us with
his input. We request that you reconsider your
stance in this regard.”
[63]
On 16 April 2020, the legal team of Kanjani
responded. The following, which is apt in my view, was stated: -
“
7
Furthermore, the request in paragraph 5 of your letter is quite
remarkable, for the following reasons:
7.1
As you should no doubt be aware, your client is not entitled
to the
information, be it for preparation or otherwise;
7.2
Our client’s stance in this regard has been clear throughout
and our client is in any event entitled to conduct the trial in the
manner it wishes to do. Your client is not entitled beforehand
to be
availed of each and every step our client intends taking nor the
witnesses it intends calling. “
[64]
It was shortly after the above response that the
MEC launched the rule 39(11) application on 25 April 2020. For
reasons outlined
above, this Court takes a firm view that the rule
39(11) was unnecessary and it was used to effectively harass Kanjani,
since it
did not share the views expressed by the MEC and refused to
reconsider its stance. The issue of onus, both as who bears the onus
and as to who is to begin, was long resolved, at the time when the
application was launched. It is also apparent to this Court
that the
MEC was attempting to strong-arm Kanjani into an amendment. This
Court has already indicated that an amendment is something
a party
may not be forced to do. In a litigation game, the views of the one
party, eloquently or ineloquently expressed,
do not constitute
the gospel truth. The final arbiter is the Court of law. Section 165
of the Constitution makes it plain,
the judicial authority lies
with the Courts. A Court of law exercises that judicial authority
with due regard to section 34 of
the Constitution.
Did Sardiwalla J
exercise a true discretion when he dismissed the action?
[65]
Counsel
for the MEC passionately argued before us that when the action was
dismissed, the Court below exercised a true discretion,
as such the
interference on appeal is limited. With considerable regret, this
Court disagrees with that argument. In a true discretion
situation,
any one of a number of permissible courses is open to the lower
Court. In
Government
Printing Works v Public Service Association and another
(
Government
Printing
)
[36]
,
the learned Govindjee AJA, writing for the majority, with sufficient
perspicacity stated the law as follows:
“…
Firstly,
a discretion in the ‘
true’
sense
is such that any one of a number of equally permissible courses is
open to the lower court. That court makes an election,
for an example
in respect of whether to grant a postponement or costs, and whichever
option is selected is entirely permissible
and can never be said to
be
wrong
.
Secondly, a ‘
loose
’
discretion,
for an example whether or not to grant an interim interdict, does not
necessarily involve a choice between equally permissible
options. The
court is simply at liberty to have regard to a number of ‘
disparate
and incommensurable features
’
in
coming to its decision.
…
Where
the lower court’s discretion is ‘
loose
’
,
interference is permissible on a broader basis, whenever the
appellate court decides its own outcome is more appropriate based
on
the various factors it has considered. This is typically because the
appellate court is in equally good position as the court
of first
instance to assess the matter.”
[66]
In order to grant a dismissal of an action,
incommensurably, the three requirements discussed above must be
present. A Court below
has no luxury to ignore them and still emerge
with an unimpugnable decision. Therefore, the discretion to be
exercised is a loose
one and does not involve an option to select
equally permissible options. Dismissing an action where the delay is
not inordinate;
is excusable and does not inflict serious prejudice,
is impermissible in law.
[67]
For all the above reasons, this Court concludes
that Sardiwalla J had exercised a loose discretion and this Court is
entitled, on
a broader basis, to interfere and reach its own
conclusion as to whether there was (a) an inordinate delay; (b) it
was inexcusable;
(c) it caused a serious prejudice, which the
interests of justice demands a draconian action of dismissal.
Delay and the
settlement issue
[68]
A
finding has already been made that there is no inordinate delay. It
has already been stated what an inordinate delay entails.
Nevertheless, the delay of 10 or 11 months, although in this Court’s
view is not inordinate, it has been explained. Settlement
of
litigation is a process anticipated in the rules of the game of
litigation. Generally, when the litigating parties explore it,
it
cannot be said that a delay is occasioned thereby. Rule 34 of the
Uniform Rules encourages such to happen. In
Gollach
& Gomperts (1967) (Pty) Ltd v Universal Mills of Produce Co (Pty)
Ltd and others
(
Gollach
)
[37]
,
it was confirmed that it is practice, which practice is encouraged,
for parties to settle their dispute out of Court where possible.
[38]
Rule 29(6)(c) provides that every party claiming relief has requested
such party’s opponent to make a settlement proposal
and that
such opponent has reacted thereto. This must mean that in the course
of litigation, parties must explore settlement of
the dispute. Rule
37A(11)(a) encourages a management Judge to explore settlement on all
or some of the issues. Accordingly, this
Court takes a view that
exploring a settlement is part and parcel of the litigation game. Its
exploration cannot be equated to
a delay in prosecution. Put
differently, settlement is inextricably interwoven into a game of
litigation to a point that its exploration
undoubtedly equates
prosecution of an action.
[69]
Settlement indeed avoids accumulation of
litigation costs. Inasmuch as the MEC disputes any settlement
discussions, regard being
had to the letter from Kanjani’s
legal team proposing a settlement, it cannot be found to be
improbable that Kanjani attempted
to settle the matter for a certain
period during the litigation stage. The fact that it may have been
misled in the process does
not detract from the fact that Kanjani
hoped for settlement of the dispute. Kanjani has been criticised by
the Court below for
holding out for a better settlement offer. This
Court fails to understand the criticism. There is nothing wrong for
Kanjani to
hold out for a better settlement. It is an everyday
occurrence in the game of litigation. In this Court’s view the
criticism
is, with respect, ill-founded. Had Kanjani managed to
obtain a better settlement offer, litigation costs would have been
obviated.
[70]
Before
this Court reaches its conclusions, it must deal with the belated
argument, by all accounts, of unclean hands, by placing
reliance on
the judgment of the Constitutional Court in
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH
(
Villa
)
[39]
.
The issue of unclean hands was not raised before Sardiwalla J. As a
Court of appeal, this Court is not empowered to deal with
an issue
that was never raised at the Court below
[40]
.
It was impermissible for this argument to have been raised. In this
Court’s view this issue ought to have been pleaded and
was
not
[41]
.
Conclusions
[71]
In summary, this Court concludes that in
dismissing the action of Kanjani, the Court below exercised a loose
discretion. This Court
is entitled to interfere with that exercise of
discretion. The requirements for the dismissal of an action has not
been demonstrated.
As such, the action of Kanjani ought not to have
been dismissed. Accordingly, the appeal must be upheld. This Court
takes a view
that section 19 of the Superior Court Act empowers it to
render any decision which the circumstances may require. The
litigation
in this matter has not been altogether smooth. It is
apparent that the legal team of both parties were involved, perhaps
unconsciously,
in a charade of attempting to demonstrate superior
knowledge to each other. Such a charade did not serve the best
interests of
this litigation. In such circumstances, this Court must
order judicial case management of this litigation within the
contemplation
of Rule 37A of the Uniform Rules. Such will effectively
manage issues like strict time lines for certain actions which will
ensure
finality of the dispute.
[72]
On account of all the above reasons, I propose to
make the following order:
Order
1.
The appeal is upheld.
2.
The order of the Court below is set aside and it
is replaced with the following orders:
2.1
The application to dismiss the action is dismissed
with costs on a party and party scale, which costs include the costs
of employing
two counsel to be settled or taxed at scale C
2.2
The respondent must pay the costs of this appeal
on a party and party scale, which costs include the costs of
employing two counsel
to be settled or taxed at scale C.
3.
The parties are directed to forthwith apply for
judicial case management in terms of Rule 37A(1) of the Uniform Rules
in respect
of this litigation.
GN MOSHOANA
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
L RETIEF
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
M J TEFFO
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
(I agree and it is so
ordered)
APPEARANCES:
For the Appellant:
Mr
JH Dreyer SC and
Mr JW Schabort
Instructed by:
Noltes Attorneys, Ermelo
For the
Respondent:
Mr HC Van Eden SC and Mr K Hopkins
Instructed by:
Majavu Inc, Johannesburg
Date of the hearing:
19
March 2025
Date of judgment:
15
April 2025
[1]
Sir
Frederick Pollock, a British jurist and a legal scholar 1845-1937.
[2]
The poor trees died in
vain.
[3]
DHB v CSB
2024 (8) BCLR 1080 (CC).
[4]
No less than 20 missives
were exchanged since January 2020 up to and including May 2020. It
appeared that the attorneys were now
litigating through
correspondence.
[5]
[1968] 1 All E.R 543
[6]
2004 (3) SA 296 (C).
[7]
Cassimjee v Minister
of Finance
2014
(3) SA 198 (SCA)
[8]
See
Molala
v Minister of Law and order and Another
1993
(1) SA 673 (W)
[9]
Supra
fn
5
[10]
[1993] 102 LJ (PC).
[11]
[2007] 1 BLLR 39 (LC).
[12]
1986 (2) SA 57 (A).
[13]
See
Van
Niekerk v Shelfine 139 (Pty) Ltd
(JR1477/11)
dated 26 November 2014 as well as
Lebelo
and 406 Others v City of Johannesburg
(J2055/15)
[2022] ZALCJHB 81 (22 March 2022 at paras [17]-[18] where it was
emphasised that grave injustice is the only factor
which will propel
a Court to exercise its discretionary powers to dismiss a claim.
[14]
Supra
fn
6.
[15]
2024 BCCA 288
(CanLII)
at paras 17, 53, 58, 66, 71.
[16]
Ibid.
[17]
Ibid
fn
13, at para 72
[18]
See
International
Capital Corporation v Robinson Twigg & Ketilson
2010 SKCA 48
at para 45.
[19]
[1968]
1 All ER 543 (CA)
[20]
2019
BCCA 334.
[21]
1979 (1) SA 626
(A) at
635H-636B
[22]
[
2010]
2 All SA 474
(SCA) at para 11.
[23]
[2020] ZASCA 120
at para
3.
[24]
1977 (4) SA 298
(A) at
304.
[25]
See for general
discussion of the principles
JMS
v MMAN in re MMAN v JMS
(40230/2020)
Gauteng Division, Pretoria High Court dated 21 June 2023, per Retief
J.
[26]
2004 (3) SA 615 (SCA).
[27]
1984 (3) SA 620 (A).
[28]
[28]
Supra
fn
20.
[29]
Busse v Chertkow
1999 BCCA 313.
[30]
Supra
fn
5.
[31]
See
University
of Johannesburg v Auckland Park Theological Seminary and Another
2021 (8) BCLR 607 (CC).
[32]
(J2055/14)
[2022]
ZALCJHB 81 at para 20.
[33]
2004 (6) 252 (W)
[34]
See
Merryweather
v Scholtz and another
2020
(3) SA 230
(WCC) at 255 G-H
[35]
It must be mentioned
these views are pitch-perfectly correct. Pleadings define the issues
for the parties and for the Court.
[36]
[2025] 2 BLLR 112
(LAC)
at paras 15-16.
[37]
1978 (1) SA 914
(A) at
921D and 922B.
[38]
See
Maswanganyi
v Road Accident Fund
(HCAA02/2016)
19 May 2017 at para 4.
[39]
2024 (1) SA 331 (CC).
[40]
See
Tau
Roller Meule (Pty) Ltd v Marcus M Farming CC
(A191/2023)
[2024]
ZAGPPHC 154 (21 February 2024) at para 14
[41]
See
Allcopy
Publishers (Pty) Ltd and others v Phillips
(00001/24)
[2025]
ZAGPPHC 209 (7 March 2025) at para 14.
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