Case Law[2022] ZAGPPHC 147South Africa
Small Enterprise Finance Agency SOC Limited v Razoscan (Pty) Ltd and Another (8631/2016) [2022] ZAGPPHC 147 (4 March 2022)
High Court of South Africa (Gauteng Division, Pretoria)
9 December 2021
Headnotes
on 21 September 2021, certain admissions were sought by the plaintiff and obtained from the defendants, which formed the basis of the triable issues set down, by agreement, for hearing on 2 and 3 December 2021. No further amendments of any pleadings were then contemplated by any of the parties.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Small Enterprise Finance Agency SOC Limited v Razoscan (Pty) Ltd and Another (8631/2016) [2022] ZAGPPHC 147 (4 March 2022)
Small Enterprise Finance Agency SOC Limited v Razoscan (Pty) Ltd and Another (8631/2016) [2022] ZAGPPHC 147 (4 March 2022)
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sino date 4 March 2022
HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
(1)
REPORTABLE: NO.
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
4 MARCH 2022
CASE
NO: 48631/2016
In
the matter between:
SMALL
ENTERPRISE FINANCE
AGENCY
SOC LIMITED
Plaintiff
and
RAZOSCAN
(PTY) LTD
First
Defendant
MENDISWA
OEDIRETSE MZAMANE
Second
Defendant
J
U D G M E N T
(In
respect of the Defendant’s application for amendment)
This matter has been heard by
way of virtual hearing and disposed of in the terms of the Directives
of the Judge President of this
Division. The judgment and order
are accordingly published and distributed electronically.
DAVIS, J
[1]
Introduction
This is the judgment in respect of
the belated application by the defendants for an amendment of their
plea and the introduction of
a counterclaim.
[2]
Timing of the
amendment
The timing of the amendment and the chronological
factual and procedural history are relevant to the issues of
prescription, prejudice,
costs and the exercise of the court’s
discretion. It is therefore apposite, for purposes of this
judgment, to set out the
following relevant events:
2.1
The initial agreement
between the parties was entered into on 21 September 2015.
2.2
An amendment to the
agreement was entered into on 23 September 2015.
2.3
A collection agreement
was entered into by the plaintiff, the first defendant and First
National Bank (FNB) on 30 September 2015.
2.4
The disbursement which
forms the subject matter of the current litigation was made by the
plaintiff on 8 November 2015.
2.5
Subject to some
variables, the amount loaned and advanced by way of the disbursement
had to be repaid by 15 November 2015.
2.6
Action was instituted
for the recovery of the loan on 20 June 2016.
2.7
On 3 October 2017 the
defendants pleaded to the plaintiff’s particulars of claim.
2.8
The plaintiff has
subsequently amended its particulars of claim. This was done
without objection and the amended pages were
delivered and uploaded
on Caselines on 8 June 2021.
2.9
The defendants have not
pleaded to the amended portions of the particulars of claim, and if
they had, no amended plea has been uploaded
or furnished to the
Court. However, at a pre-trial conference before me as a case
management judge, held on 21 September 2021,
certain admissions were
sought by the plaintiff and obtained from the defendants, which
formed the basis of the triable issues set
down, by agreement, for
hearing on 2 and 3 December 2021. No further amendments of any
pleadings were then contemplated by
any of the parties.
2.10
On 2 December 2021 and,
at the instance of the defendants, the trial was postponed.
This was despite the defendants having previously
been the parties
who had insisted on an expedited hearing of the matter. Leave
was granted to the defendants (based on undertakings
made on their
behalf in open court) to serve and file, before 9 December 2021, the
following court processes:
-
An amendment to their
plea and a proposed counterclaim.
-
A rule 13 third party
notice, with leave of the court, despite pleadings having closed long
ago.
(The formal order was handed down on 9 December 2021
after receipt and consideration of written submission on behalf of
the defendants
regarding the issue of wasted costs).
2.11
A further case
management meeting was scheduled for 28 January 2022.
2.12
On 27 January 2022 the
defendants delivered a notice of amendment of their plea and their
intention to “insert” a counter-claim.
By this time the
delivery of any notice in terms of Rule 13 had been abandoned.
2.13
At the meeting of 28
January 2022 it was agreed and directed that, after the delivery of
objections and a formal notice of application
for amendment, that
application be heard on 22 February 2022, which duly took place.
[3]
The admitted facts
at the previous trial date
Before dealing with admissions contained in the plea and
the amendment or withdrawal thereof, it is apposite to point out what
the
parties had agreed to as to the pleadings prior to the currently
proposed amendment. The following was recorded at the pre-trial
meeting of 21 September 2021:
4.1
“
AD
PARAGRAPH 3 (OF THE PLEA)
4.1.1
The
plaintiff and the first defendant (“Razoscan”) entered into a
Developmental Bridging Loan Agreement on 21 September 2015 (“Loan
Agreement”).
The
defendants admitted this
.
4.1.2
The
Loan Agreement was amended on 23 September 2015.
The
defendants admitted that the agreement was amended but disputed that
the only amendment was on 23 September 2015
.
4.1.3
The
Loan Agreement, as amended, comprises of:
4.1.3.1
The
agreement attached
to
the particulars of claim as Annexure “A1” – “A21”;
4.1.3.2
Loan
Sheet, attached to the particulars of claim as Annexure “A22” –
“A26”;
4.1.3.3
The
letter of 23 September 2015, attached as annexure “B”, to the
particulars of claim.
The
defandants admitted the above
.
4.1.3.4
The
terms of the Loan Agreement are as set out in the documents referred
to in paragraphs 4.1.3.1 – 4.1.3.3 above.
The
defendants admitted this but alleged that the agreement was
subsequently further amended regarding the independent inspections
required
.
4.2
AD
PARAGRAPH 5.1 (OF THE PLEA)
4.2.1
On
30 September 2015 and 6 October 2015, Razoscan, represented by the
first defendant (“Ms Mzamane”), provided the plaintiff and
First
National Bank (“FNB”) with a report prepared by SITCO Leading
Inspections (SITCO”) and advised that:
4.2.1.1
Razoscan
was in the process of purchasing fruits and had been allocated the
necessary pallets;
4.2.1.2
SITCO
had conducted a quality inspection of the fruits that Razoscan was in
the process of purchasing;
4.2.1.3
the
fruits which Razoscan was in the process of purchasing was of good
quality for export purposes;
4.2.1.4
Razoscan
sought funding from the plaintiff for purposes of purchasing the
fruits.
The
defandants admitted this save to deny that any of them had provided
the plaintiff or FNB with the report
.
4.3
AD
PARAGRAPH 5.2 (OF THE PLEA)
4.3.1
On
30 September 2015, Razoscan, the plaintiff and FNB entered into a
collection agreement and appointed FNB as a collection agent
for
purposes of disbursing the loan advanced in accordance with the Loan
Agreement (“the collection agreement”).
The
defendants admitted this
.
4.3.2
The
terms of the collection agreement are as set out in the collection
agreement, attached as annexure “C”, to the Particulars
of
Claim.
The
Defendants admitted this
.
4.4
AD
PARAGRAPH 5.2 (OF THE PLEA)
4.4.1
Razoscan
established an account with FNB in accordance with the Collection
Agreement.
The
defendants admitted this
.
4.4.2
The
plaintiff deposited the Loan amount into an FNB account opened on
behalf of Razoscan.
The
defendants admitted this
.
4.4.3
The
plaintiff advanced a loan amount of R3 357 496.18 to Razoscan in
terms of the Loan Agreement (“Loan amount”).
The defendants
averred that the advance was either R 3, 1 million or the lesser
amount reflected in the purchase invoice
.
4.5
AD
PARAGRAPH 6 (OF THE PLEA)
4.5.1
On
7 October 2015, Razoscan, represented by Ms Mzamane, instructed the
plaintiff and FNB, to disburse the loan amount (held in the
FNB
ccount) to its supplier, Cosmo Fruit.
The
defendants denied this
.
4.5.2
On
or about 8 October 2015, FNB disbursed the loan amount to Cosmo
Fruit.
The
defendants denied this
.
4.6
AD
PARAGRAPH 9 (OF THE PLEA)
4.6.1
Ms
Mzamane has bound herself as surety and as co-principal debtor with
Razoscan in favor of SEFA, on the terms as set out in the suretyship
attached as annexure “E”, to the Particulars of Claim.
The
second defendant
admitted
this
.
[4]
Objections to the
amendment and counterclaim.
4.1
In respect of the
proposed amendment to the plea, the plaintiff objected thereto on the
grounds that:
-
it attempts to withdraw
admissions.
-
it is either vague and
embarrassing or does not disclose a cause of action/defense.
4.2
In respect of the
proposed counterclaim, the plaintiff objected thereto on the grounds
that:
-
any claim sought to be
introduced thereby has become prescribed.
-
an element of
wrongfulness is improperly pleaded.
-
the proposed
counterclaim does not disclose a cause of action.
-
the proposed
counterclaim is vague and embarrassing.
[5]
The issue of
admissions
5.1
The learned author Van
Loggerenberg states the position of our law in this regard in
Erasmus: Superior Court Practice at D1 – 337
(with reference to
case law) as follows:
“
An admission is an unequivocal
agreement by one party with a statement of fact by the other … the
effect of an admission is to render
it unnecessary for the plaintiff
to prove the admitted fact
”.
5.2
Although an admission
may be withdrawn by way of an amendment, the approach has been held
to be the following: “…
the
withdrawal of an admission is usually more difficult to achieve [than
other amendments] because (i) it involves a change of front
which
requires full explanation to convince the court of the bona fides
thereof and (ii) it is more likely to prejudice the other
party who
had by the admission been led to believe that he need not prove the
relevant fact …
”.
5.3
The learned
author continues
op
cit
“
The
court will, therefore, in the exercise of its discretion, require an
explanation of the circumstances under which the admission
was made
and the reasons for now seeking to withdraw it
”.
5.4
In the present matter,
the affidavit delivered by the defendants in support of their
proposed amendment, does not satisfy the above
requirements but I
shall deal with the relevant parts thereof in considering the
individual amendments.
5.5
Before considering the
issue of withdrawals of admissions, it is apposite to note what has
actually been admitted in the plea itself.
The most important
issue is that of the conditions precedent. These have been
defined in the admitted developmental agreement
as meaning “
all
the conditions precedent set out in clause 9.1 of this agreement and
any additional conditions precedent as indicated in the loan
sheet
”.
5.6
Clause 9.1 mentioned
above, list those conditions pleaded in paragraphs 4.6.1 to 4.6.4 pf
the plaintiff’s original particulars of
claim, all of which have
been admitted.
5.7
The “loan sheet”
referred to in said clause 9.1 contain “Additional Conditions
Precedent”. These were added to the plaintiff’s
amended
particulars of claim as paragraphs 4.6.5 and 4.6.6 thereof.
Paragraph 4.6.7 of the amended particulars thereafter reads
as
follows: “
The
plaintiff shall not be obliged to advance any monies in terms of the
provisions of the agreement unless all the conditions precedent
have
been fulfilled or waived by the plaintiff in its sole and absolution
discretion
”.
This pleading accords with the express term contained in clause 9.2
of the developmental agreement.
5.8
In respect of
fulfillment of the conditions precedent, the plaintiff had pleaded
this expressly in paragraph 5.1 of its original particulars
of claim
and this had been admitted.
[6]
Ad paragraphs 8.1
and 8.2 of the proposed amended plea
6.1
The conclusion pleaded
in paragraph 8 of the (original) particulars of claim, pursuant to
the fulfillment of the conditions precedent
and the plaintiff’s
alleged fulfillment of its obligations, was pleaded as follows:
“
As of 30 April 2016, the First
Defendant was indebted to the plaintiff in the amounts of R
3 282 965, 97 together with interest
calculated at the rate
of 13,8% per annum, calculated from 1 May 2016 to date of payment,
both days inclusive. A copy of the
certificate of indebtedness
is annexed hereto and marked “C”
”.
6.2
The defendants pleaded
as follows to this paragraph: “
8.
The defendant denies the contents of this paragraph and further adds
that the certificate of annexure “C” is also a request
for
payment
”.
6.3
In the proposed
amendment, the defendants now seek to replace the above quoted
paragraph 8 of their plea with the following” “
8.1
The First Defendant denies that it breached the loan agreement
because there was no valid, enforceable and binding loan agreement
amongst the parties due to the failure by the Plaintiff to fulfill
the conditions precedent and the suspensive condition for the
agreement is void ab initio alternatively, in the event that the
court finds that it is not, which the Defendants do not concede,
it
is voidable at the instance of either party thereto
”.
6.4
The plaintiff objects
to this proposed amendment as it would amount to a withdrawal of
previously admitted facts relating to the fulfillment
of conditions
precedent, as pleaded and admitted as indicated in paragraph 5.8
above.
6.5
In an attempt to meet
the plaintiff’s objection, the second defendant, in the affidavit
delivered in support of the application,
argues that the new
paragraphs 8.1 and 8.2 do not amount to withdrawals, but are merely a
“clarification” of the previous denial
quoted in paragraph 6.2
above.
6.6
The defendants’
submission is wrong. The previous denial was based on the
conclusion quoted in paragraph 6.1 above.
It followed on the
pleading of fulfillment of conditions precedent, which have expressly
been admitted. That admission cannot,
without explanation, be
withdrawn by way of an alleged “clarification” in respect of a
pleaded conclusion.
6.7
Were the defendants
allowed to withdraw these admissions, it would constitute a whole
“change of front” and would make a mockery
of the previous case
management procedures. Had the defendants all long either
pleaded or alleged a non-fulfilment of conditions,
those disputes
could and would have been fleshed out at the pre-trial stage.
6.8
Moreover, had the
defendants not made the previous admissions and had they timeously
pleaded the alleged voidness of the agreement,
the plaintiff could
have amended its particulars of claim or replicated thereto with a
possible reliance on an enrichment claim.
Such a cause of
action had probably by now however, become prescribed and forcing the
plaintiff into that corner or into the position
of having to prove
fulfillment of conditions which it had, since the delivery of the
plea in 2017, no longer needed to prove, would
clearly cause
prejudice to the plaintiff.
6.9
On this basis, namely
that the amendment to paragraph 8 would amount to a withdrawal of an
admission, which withdrawal is sought without
explanation and which
amendment, if allowed, would prejudice the plaintiff, the amendment
should be refused.
6.10
The same goes for the
allegations contained in paragraphs 4.6.7.2, 4.6.7.4, 7.1, 7.10 and
7.11 of the proposed plea which all are
now intended to allege,
contrary to the previous admission, that the conditions precedent had
not been fulfilled and that the contract
is void and unenforceable.
[7]
Vagueness,
embarrassment and/or lack of a defence
7.1
The actual nub of the
defendants’ (new) case appears to be sourced in condition (e) of
the additional conditions precedent contained
in the loan sheet,
which provides for the independent alignment of the order with the
actual fruit as referred to in paragraph 5.7
above. The
defendants allege that the “independent alignment” documents on
which the plaintiff had relied was a falsification
and that the
plaintiff should have noticed it, alternatively was complicit in the
fraud occasioned by the production of or reliance
on a falsified
document.
7.2
Arguing that the
plaintiff should have noticed the falsification, the defendants plead
that the plaintiff was negligent in not having
done so. See,
for example paragraphs 4.6.5, 6.3 and 6.5 of the proposed plea.
7.3
Negligence can only
arise in circumstances where a duty or obligation to act in a certain
manner exists and that duty or obligation
was breached or the
complained of conduct fell short of that expected from a reasonable
person. The defendants intend to plead
that the plaintiff had
failed to ensure that the letter confirming that the goods supplied
aligned with the order was true or authentic.
There is no such
obligation contained in the contract and the defendants have not
pleaded facts which would have established a duty
on the plaintiff to
conduct authentication procedures. Accordingly, the paragraphs
proposing to plead such a “defence”
cannot be allowed in their
current formulation. I shall deal with the issue of fraud
hereinlater.
[8]
Reciprocity
8.1
In paragraph 7.12 of
the proposed plea, the defendants propose relying on reciprocity of
obligations on the following basis: “
The
loan agreement and the collection agreement provide for reciprocal
performance of the parties and the exceptio adimpleti contractus
defence has application. The defendants have not waived
reliance thereof
”.
8.2
The above contention,
reliant on the alleged applicability of a legal principle, is based
on the submission contained in the proposed
paragraph 7.10, which
reads as follows: “
The
defendants submit that, had the conditions precedent been fulfilled
by the plaintiff acting reasonably in dealing with an obviously
forged document, resulting in compliance with clause 3.2.2 of the
collection agreement, only then would the duty on the part of the
first defendant to repay the loan arise
”.
Clause 3.2.2 of the collection agreement provides for FNB disbursing
funds from the collection account to the supplier
“
upon
receipt of an independent confirmation (by Cosmo Fruit (Pty) Ltd)
confirming that the purchase order is consistent with the goods
supplied by it in terms of variety, quantity and quality
”.
8.3
Apart from the fact
that reasonableness is not a contractual obligation and, insofar as
it refers to acting “unreasonable” or
contrary to how a
reasonable person would have acted, such a plea would be dependent on
the existence of a duty or obligation for
it to become an actionable
cause or defence. This aspect has been dealt with in paragraph
7 above, where it has been pointed
out that the defendants have not
pleaded the necessary facts to establish such duty.
8.4
In addition to the
above, any reliance on alleged duties on the plaintiff in respect of
the conditions precedent, do not disclose
defences in view of the
fact that the parties have agreed that the conditions were for the
benefit of the plaintiff and that they
could be waived by the
plaintiff in its sole discretion. In addition, it had been
agreed that the first defendant had the onus
to provide correct and
accurate information. The waiver and the first defendant’s
onus are provided for in clauses 9.2, 9.3
and 11.4 of the
developmental agreement.
8.5
The paragraphs by which
the defendants intend to rely on reciprocity in the manner pleaded
therefore do not disclose a defence and
should not be allowed.
[9]
Fraud
9.1
It is trite that the
amendment of pleadings should not be disallowed if such amendment
would lead to the true facts being disclosed
and the disputes between
the parties being ventilated.
9.2
Whilst the defendants
should not be allowed to willy nilly withdraw admissions or to effect
amendments which are either bad in law
or inadequately pleaded, the
adage “fraud unravels all” might final application.
9.3
In paragraph 5.2 of its
original particulars of claim, which became paragraph 7.2 of its
amended particulars, the plaintiff pleaded
that it had complied with
all its obligations in terms of the agreements. These
allegations have always been denied by the
defendants.
9.4
In addition to this
denial, the defendants now plead that the plaintiff had been
complicit in a fraud perpetrated (it seems) by the
supplier of the
goods or the person(s) who supplied the alignment letter(s).
9.5
Allegations of fraud
should neither be made nor be taken lightly. Whilst the
allegations of fraud have been pleaded in a somewhat
opaque fashion,
I am inclined, in the exercise of my discretion, to allow the
ventilation thereof rather than prevent its ventilation
as a result
of poor pleading. The issue seems sufficiently limited that the
plaintiff would not suffer prejudice thereby.
Any possible
prejudice might be mitigated by allowing the plaintiff to lead
evidence on the issues on which it had at the pre-trial
conference
accepted the onus (together with the duty to begin) and thereafter to
have the defendants lead evidence on the issue on
which they bear the
onus, which will be the allegations of fraud, whereafter the
plaintiff can lead rebuttal evidence thereon.
9.6
The proposed amendments
dealing with the issue of the alleged fraud will therefore be
allowed. I do so mindful of the possible
contradictions between
reliance on an alignment letter for purposes of satisfying a
condition precedent which could be waived and
the argument that the
letter was forged and that the plaintiff was part thereof and could
therefore not validly had relied thereon.
I am of the view that
the issue of fraud is sufficiently distinguishable from mere
contractual compliance to allow it to be ventilated
despite
ostensible contradictions occurring as a result thereof
[10]
Suretyship
10.1
The second defendant
had never denied the existence of the suretyship and had confirmed
same at the pre-trial conference of 21 September
2021. These
admissions cannot now be withdrawn, particularly as no basis for such
withdrawal has been made.
10.2
What must still remain
in place though, is the fact that the suretyship obligation, even
though it bound the second defendant as co-principal
debtor to the
first defendant, remains an accessory obligation, dependent on the
existence of the principal obligation. The
second defendant is
equally entitled to rely on the defenses raised by the principal
debtor, being the first defendant,
[11]
The counterclaim
11.1
The chronology
regarding the advancement of the loan by the plaintiff have been set
out on paragraphs 2.1 to 2.4 above.
11.2
As basis for the cause
of action for the proposed counterclaim, the defendants pleaded that:
“
on or around 8
October 2015 the plaintiff requested FNB under clause 3.2.2. of the
collection agreement, as conceded in the plaintiff’s
amended
particulars of claim, to pay the money out of the CTF collection
amounted to Cosmo but was negligent in doing so because
it relied on
an obviously fraudulent letter purportedly received by it from Cosmo
(SITCO appointed by Cosmo as globally renowned
inspection and
verification company for fruit, on behalf of Cosmo)
”.
11.3
Hereafter the
allegations contained in paragraphs 7.4, 7.5 and 7.6 of the proposed
amended plea are incorporated, which paragraphs
contain
facta
probantia
regarding
the disbursement.
11.4
Reliant hereon, the
first defendant proposes to claim a loss of profit of R63 million, by
way of the amendment.
11.5
Apart from the fact
that the loss of profit, constituting the first defendant’s alleged
damages, has not been pleaded properly in
accordance with Rule 18 and
apart from the fact that the defendants again attempt to rely on
improperly pleaded allegations of negligence
and wrongfull conduct,
the plaintiff objects to the proposed counterclaim, on the basis
that, even if it were based on allegations
of fraud, it has become
prescribed.
11.6
By 8 October 2015 the
defendants were aware or ought to have been aware of the facts giving
rise to its alleged counterclaim.
The notice to institute the
counterclaim was only served on the plaintiff on 27 January 2022.
11.7
In terms of
section 11
(d) of the
Prescription Act 68 of 1969
, the period of prescription
for a “debt” such as the counterclaim, is three years.
11.8
In terms of
section
15(1)
of the said Act, the running of the aforesaid three year period
of prescription, which started on 8 October 2015, shall (unless the
plaintiff had acknowledge liability as provided for in
section 15(2)
,
which it had not), “
be
interrupted by service on the debtor of any process whereby the
creditor claims payment of the debt
”.
Clearly, by the time of the delivery of the notice of amendment, the
three year period had elapsed.
11.9
The best that the
defendants could do in this regard, was to refer to a letter by the
defendants erstwhile attorneys on 11 January
2021. Apart from
the fact that the letter does not constitute a “process”, it was
also dated long after the expiry of the
three year period. The
affidavit in support of the application for amendment mentions no
other fact in respect of the issue
of extinctive prescription.
The denial of an obligation to pay and a reference to a breach of
contract raised obliquely in
the defendants’ original plea of 3
October 2017 also do not constitute a process whereby the
counterclaim was (then) instituted.
11.10
In argument, counsel
for the defendants sought to rely on
section 13(2)
of the
prescription Act. This provides that “
a
debt which arises from a contract and which would, but for the
provisions of this subsection, become prescribed before a reciprocal
debt which arises from the same contract becomes prescribed, shall
not become prescribed before the reciprocal debt becomes prescribed
”.
11.11
On the issue of
reciprocal contractual obligations, Corbett, J (as he then was) has
concluded in
Ese
Financial Services (Pty) Ltd v Cramer
1973 (2) SA 805
(C) at 809 D as follows: “
for
reciprocity to exist there must be such a relationship between the
obligation to be performed by the one party and due by the
other
party as to indicate that one was undertaken in exchange for the
performance of the other …
”.
See also
Union
Finance Holdings Ltd v Bonugli and Another NNO
2013 (2) SA 449
GSJ, applying those principles to the application of
section 13(2)
of the
Prescription Act.
11.12
A
consequential damages
claim is clearly not an obligation reciprocally undertaken in the
contracts which form the subject matter of
this action. It is a
separate cause of action to be pursued pursuant to a successful
establishment of a ground for such a claim.
The exception to
the completion of the running of prescription as provided for in
section 13(2)
is therefore not applicable to the proposed
counterclaim. The facts in unreported judgment of
Ferriera
v Rademeyer
[2021]
ZAHCECPE (1256/15) on which the defendants sought to rely are clearly
distinguishable and the judgment does not assist the
defendants.
11.13
The proposed
counterclaim has therefore become prescribed and the proposed
“insertion” thereof by way of the belated amendment,
is
impermissible.
[12]
Costs
12.1
A party seeking leave
to amend its papers is in effect seeking an indulgence and should be
liable for the costs occasioned thereby.
Having regard to the
extent of the proposed amendments which are to be disallowed as well
as the unsuccessful attempt at resurrecting
a prescribed
counterclaim, I find that the objections to the proposed amendments
were reasonable and that the plaintiff was substantially
successful
in this regard. Costs should follow this event. As a mark
of displeasure at the unjustified lateness of the
amendment and the
failure to adhere to undertakings and a court order, I determine, in
the exercise of my discretion, that the scale
of costs shall be as
between attorney and client.
[13]
Order
1.
The following
paragraphs (or portions thereof) of the defendants’ proposed
amendment (with reference to the proposed paragraph numbers)
dated 27
January 2022 are disallowed: 4.6; 4.6.7.2; 6.3; 7.1; 7.2; 7.3; 7.8;
7.10; 7.11; 7.12; 8.1; 8.2; 10 and 10.1 and the contents
of
paragraphs 4.6.5; 4.6.7.1; 4.6.7.3; 6.5 and 7.9 insofar as they refer
to or rely on any form of alleged negligence.
2.
The proposed
introduction of a counter-claim by the defendants is disallowed on
the basis that it had become prescribed, which shall
include the
disallowing of paragraphs 4.6.7.2; 4.6.7.3 and 4.6.7.4 of the
proposed amended plea.
3.
The defendants are
ordered to pay the costs occasioned by their proposed amendment,
including the opposed hearing in respect thereof,
on the scale as
between attorney and client.
N
DAVIS
Judge
of the High Court
Gauteng Division, Pretoria
Date
of Hearing: 22 February 2022
Judgment
delivered: 4 March 2022
APPEARANCES:
For
the Plaintiff:
Adv L Kutumela
Attorney
for the Plaintiff:
Werksmans Attorney, Johannesburg
c/o Mabuela
Attorney, Pretoria
For
the Defendant:
Adv M Mlisana
Attorneys for the
Defendant:
N Gawala Incorporated,
Pretoria
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