Case Law[2025] ZAGPPHC 860South Africa
Caterpillar Financial Services South Africa (Pty) Ltd v Elephan-te Trading (Pty) Ltd (081166/2023) [2025] ZAGPPHC 860 (11 August 2025)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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## Caterpillar Financial Services South Africa (Pty) Ltd v Elephan-te Trading (Pty) Ltd (081166/2023) [2025] ZAGPPHC 860 (11 August 2025)
Caterpillar Financial Services South Africa (Pty) Ltd v Elephan-te Trading (Pty) Ltd (081166/2023) [2025] ZAGPPHC 860 (11 August 2025)
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sino date 11 August 2025
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO:081166/2023
DOH:
26 June 2025
DECIDED:
11 August 2025
1)
REPORTABLE: NO
2)
OF INTEREST TO OTHER JUDGES: NO
3)
REVISED.
DATE 11 August 2025
SIGNATURE
In
the matter between:
CATERPILLAR
FINANCIAL SERVICES
Applicant
SOUTH
AFRICA (PTY)
LTD
And
ELEPHAN-TE
TRADING (PTY) LTD
Respondent
ORDER
Order
1.
The application for leave to appeal is
refused.
2.
The respondent must pay the applicant’s
costs on a scale between attorney and client.
JUDGMENT
Bam
J
1.
This is an application for leave to appeal
the judgment and order of this court of 27 December 2024. For
convenience, I refer to
the parties as they were in the original
application. In this regard, the applicant refers to Caterpillar FSSA
and the respondent,
to Elephan-te Trading (Pty) Ltd. The applicant
opposes the application on various grounds. These include the
respondent’s
failure to identify the test it has to meet for
leave to appeal and consequently, the failure to meet the test.
2.
The respondent’s grounds of appeal
are set out in its application for leave to appeal and may be
summarised thus:
(i)
The court erred in identifying the issue in
dispute.
(ii)
The issue in dispute was whether the
applicant is entitled to the return of the goods, (identified as
machines in the judgment)
under the
rei
vindicatio
principle, and the
interpretation of the instalment sale agreement, specifically clauses
10(b) to 10 (k).
(iii)
The Court erred in disregarding that the
applicant had pleaded a valid defence of contractual
lien
and that such right had to be protected. This ground is repeated in
ground 10.
(iv)
The court erred in disregarding the amounts
paid by the respondents towards the instalment sale agreements. This
ground is set out
as two grounds as it raises the same point in
respect of the two instalment sale agreements.
(v)
The court erred in finding that there are
no formalities provided for termination of the contract when clause
(k) of the contract
makes provision as follows:
‘
Should
any breach of our obligations and rights under clause 10(b) to 10(k)
we will approach the court of law and obtain a court
order to permit
us to exercise our rights.
(vi)
The court erred in finding that the
cancellation or termination of a contract is not harmful and does not
amount to self help. This
ground is repeated 3 times.
The respondent concludes
that it is in the interests of justice that the appeal be allowed as
contemplated in Section 17(1) (a)
and (ii) of the Act.
Relevant legal
principles
3.
Legislative
provision for applications for leave to appeal appears in the Section
17 (1) (a) and (i) and (ii) of the Superior Courts
Act
[1]
.
Our senior courts have also pronounced on the issue such that the
legal principles governing applications for leave to appeal
have
become trite. Those principles may be summarised thus: An applicant
for leave must satisfy the court that the appeal would
have a
reasonable prospect of success or that there is some other compelling
reason why the appeal should be heard
[2]
.
In the event the court is unpersuaded that there are prospects of
success, it must still enquire into whether there is a compelling
reason to entertain the appeal. Here too the merits remain vitally
important and are often decisive
[3]
.
Respondent’s
grounds
4.
I now deal with the respondent’s
grounds in turn.
(i)
The court erred in identifying the
issue in dispute.
(ii)
The issue in dispute was whether the
applicant is entitled to the return of the goods, (identified as
machines in the judgment)
under the rei vindicatio principle, and the
interpretation of the instalment sale agreement, specifically clauses
10(b) to 10 (k).
5.
I start with the first ground dealing with
the court’s failure to identify the issue between the parties.
The respondent contends
that the issue was not whether the applicant
is entitled to cancel the contract without first obtaining a court
order. The point
has no merit. That this was indeed the issue is
apparent from the respondent’s answering affidavit, in
paragraphs 18 and
23. Other than this only issue, the answering
affidavit contained no defence against the applicant’s case of
rei vindicatio
.
There is no need to repeat what is set out in the judgment on this
issue. There is no prospect that another court would come to
a
different conclusion.
6.
As to the second point which suggests that
the issue was whether the applicant is entitled to the return of the
goods relying on
the
rei vindicatio
and
the interpretation of the Master Agreement, in particular clauses 10
(b) and 10 (k). The judgment deals with this point and
it concludes
that the applicant is entitled to the return of the machines.
It would be supererogatory to go over that discussion
and the court’s
finding. There is no merit to this ground and no prospect that
another court would come to a different conclusion.
(iii) the court erred
in disregarding the defence of a lien;
(iv) The Court erred
in disregarding that the amounts paid by the respondents towards the
instalment sale agreements.
(v) The court erred in
finding that there are no formalities provided for termination of the
contract
7.
As to the court having disregarded
the defence of a lien, this was never the applicant’s case.
Nothing further need be said
about a lien.
8.
As to the court having disregarded the
amounts paid by the respondent towards the instalment agreements, it
is not in dispute that
the agreement requires the respondent to pay
all, and not some of the instalments, which the respondent on its own
version failed
to do. In any event, the fact of having paid some
instalments is not a defence against the applicant’s claim of
rei vindicatio
.
The judgment deals with what is required of an applicant to succeed
on a claim based on the
rei vindicatio
and it concludes that the applicant in this case had met those
requirements. The point lacks merit and there is no prospect that
another court would come to a different conclusion.
9.
On the question of formalities and the
allegation that the court erred in finding that there are no
formalities, this was never
an issue between the parties. The issue
had always been whether the applicant required a court order to
cancel the agreement. That
question has been answered in the
judgment. The respondent cannot re-litigate its case. The point has
no merit and there is no
prospect that another court would come to a
different conclusion.
Conclusion
10.
Based on all the reasoning set out in this
judgment, leave to appeal must be refused.
Order
1.
The application for leave to appeal is
refused.
2.
The respondent must pay the applicant’s
costs on a scale between attorney and client.
N.N
BAM (Ms)
JUDGE
OF THE HIGH COURT,
GAUTENG DIVISION,
PRETORIA
Date
of Hearing:
26 June 2025
Date
of Judgment:
11 August 2025
Appearances:
Counsel
for the Applicant:
Adv
N.J Horn
Instructed
by:
Werksmans
Attorneys
c/o
Serfontein, Viljoen & Swart Attorneys
Brooklyn,
Pretoria
Counsel
for the Respondent:
Adv
M Mapila
Instructed
by:
T
Radzilani Attorneys
Edenvale,
Johannesburg
[1]
Act
10 of 2013.
[2]
Caratco
(Pty) Ltd v Independent Advisory (Pty) Ltd
(982/18)
[2020] ZASCA 17
;
2020 (5) SA 35
(SCA) (25 March 2020),
paragraph 2.
[3]
Ramakatsa
and Others v African National Congress and Another
(Case No. 724/2019)
[2021] ZASCA 31
(31 March 2021).
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