Case Law[2025] ZAWCHC 3South Africa
Ottery Service Station (Pty) Ltd t/a SASOL Ottery and Another v Cold Stone Trading and Investments (Pty) Ltd t/a Shell Ottery and Others (22689/2024) [2025] ZAWCHC 3 (13 January 2025)
High Court of South Africa (Western Cape Division)
13 January 2025
Headnotes
an internal administrative appeal lodged with the Minister against the decision of the Controller suspends the site and retail licence approved by the Controller. Based on this decision and the fact that the first and the second respondents traded in petroleum products nearby and in direct competition with the applicants, the applicants brought an urgent application for an order interdicting and restraining the first and second respondents from operating a fuel retail service station on erf 4[...] Ottery Cape Town pending the determination of the applicant's internal appeal to the Minister in terms of section 12A of the PPA.
Judgment
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## Ottery Service Station (Pty) Ltd t/a SASOL Ottery and Another v Cold Stone Trading and Investments (Pty) Ltd t/a Shell Ottery and Others (22689/2024) [2025] ZAWCHC 3 (13 January 2025)
Ottery Service Station (Pty) Ltd t/a SASOL Ottery and Another v Cold Stone Trading and Investments (Pty) Ltd t/a Shell Ottery and Others (22689/2024) [2025] ZAWCHC 3 (13 January 2025)
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
CASE
NO: 22689/2024
In
the matter between:
OTTERY
SERVICE STATION (PTY) LTD
t/a
SASOL
OTTERY
First Applicant
EAGLE
CREEK INVESTMENTS 40 (PTY) LTD
Second Applicant
And
COLD
STONE TRADING AND INVESTMENTS
(PTY)
LTD t/a SHELL
OTTERY
First Respondent
FAMPAR
TRADING (PTY)
LTD
Second Respondent
SHIRAAZ
ABOOBACKER KALLA
Third Respondent
MOHAMMED
ZAIN KALLA
Fourth Respondent
THE
MINISTER: MINERAL RESOURCES AND ENERGY
Fifth
Respondent
THE
CONTROLLER: PETROLEUM PRODUCTS
(WESTERN
CAPE PROVINCE)
Sixth Respondent
Heard:
20 December 2024
Delivered:
Electronically on 13 January 2025
JUDGMENT
LEKHULENI
J
Introduction
[1]
There are two urgent applications which served before this Court on
20 December 2024.
The first is an application by the applicants to
declare the first to the fourth respondents in contempt of this
Court's order
issued under the above case number, which order was
granted by Mthimunye AJ on 2 December 2024. The applicants seek an
order that
the third to the fourth respondents be committed to prison
for a period of two months, alternatively to such period as this
Court
may find to be just and equitable in the circumstances.
[2]
In addition, the applicants seek an order that the two months
committal order against
the third and fourth respondents be suspended
for a period of one year on condition that the third and fourth
respondents forthwith
comply with this Court's order of 2 December
2024. Furthermore, that the respondents must cease operating the fuel
retail service
station on erf 4[...] in Ottery, Cape Town, Western
Cape.
[3]
The second application involves a counterapplication by the first to
the fourth respondents.
They seek an order that the judgment and
order issued by Mthimunye AJ on 2 December 2024 be suspended under
section 18(1) of the
Superior Courts Act 10 of 2013
(“the
Superior Courts Act&rdquo
;).
This suspension would remain in
effect for the duration of any application for leave to appeal, and
any leave to appeal that may
be granted. Additionally, the
respondents seek an order that for the period in which any
application by the respondents for leave
to appeal the aforesaid
order of this Court or any appeal that may be pending therein, the
applicants’ officials are prohibited
from directly engaging
with or directly addressing any official of the Department of
Minerals and Energy or the Controller of Petroleum
Products.
The
Parties
[4]
The first applicant is Ottery Service Station (Pty) Ltd with
registration number 2005/041419/07,
a private company duly registered
in terms of the statutes of the Republic of South Africa. It trades
under the name Sasol Ottery
at the corner of Ottery and New Ottery
Roads, Ottery East, Western Cape.
[5]
The second applicant is Eagle Creek Investments 40 (Pty) Ltd, with
registration number
2003/030733/7, a private company duly registered
in terms of the statutes of the Republic of South Africa. Its main
place of business
is also situated at the corner of Ottery and new
Ottery Roads, Ottery East, Western Cape Province. The second
applicant underwent
a name change and was previously known as
Cavalier Retail Centre Ottery (Pty) Ltd. In the main application and
the judgment of
this Court, its name is still reflected as being
Cavalier Retail Centre Ottery (Pty) Ltd.
[6]
The first respondent is Cold Stone Trading and Investments (Pty) Ltd,
with registration
number 2020/705202/07, a private profit company
duly registered in terms of the statutes of the Republic of South
Africa. It trades
under the name and style of Shell Ottery at 1[...]
New Ottery Road, Ottery East, Western Cape.
[7]
The second respondent is Fampar Trading (Pty) Ltd, with registration
number 2021/391592/07,
a private profit company duly registered in
terms of the statutes of the Republic of South Africa. It owns erf
4[...] Ottery, situated
at 1[...] New Ottery Road, Ottery East,
Western Cape Province, where Shell Ottery trades.
[8]
The third respondent is Shiraaz Aboobacker Kalla, an adult
businessman who resides
in Makhado, Limpopo Province. The Fourth
respondent is Mohammed Zain Kalla, an adult businessman who similarly
resides in Makhado,
Limpopo Province. The third respondent is the
sole director of the second respondent. The third and the fourth
respondents are
the co-directors of the first respondent.
[9]
The third and the fourth respondents are cited in this application
because they are
the representatives of the first and the second
respondents, as the first and the second respondents are juristic
persons and can
only act through natural persons being its directors.
As it will be demonstrated later in this judgment, in case the first
and
the second respondents are in contempt of court, the directors of
the first and the second respondents are also in contempt of court.
They are the persons who must serve such sanction as may be imposed
by the court.
[10]
The fifth respondent is the National Minister of Mineral Resources
and Energy
.
The applicants cited the Minister in her
representative capacity as envisaged in the Petroleum Product Act 120
of 1977
("the PPA")
and its regulations. The
Minister is the internal appeal authority envisaged in section 12A of
the PPA.
[11]
The sixth respondent is the Controller of Petroleum Products for the
Western Cape Province
("the Controller")
. The
Controller in this case is a functionary as envisaged in the PPA and
its regulations and controls the allocation of petroleum
resources in
the Western Cape Province. The Controller is the authority that
issues site and retail licenses permitting license
holders to trade
in petroleum products. The applicants seek no relief against the
Minister and the Controller in this application.
The applicants
contend that the Minister and the Controller were cited due to their
potential interest in this application. The
Minister and the
Controller did not file opposing papers in this matter.
Background
Facts
[12]
The applicants are licensed operators of a fuel service station known
as Sasol Ottery. They have
been licensed since 2007 but operated
prior to that. In August 2024, the applicants discovered that despite
their objections, the
Controller of petroleum products had issued
site licences, as envisaged in the PPA, in favour of the first and
second respondents.
Subsequent thereto, the applicants immediately
lodged an internal appeal with the Minister of Mineral Resources and
Energy in terms
of section 12A of the PPA against the Controller's
decision to do so, which appeal was subsequently supplemented. The
internal
appeal to the Minister remains pending.
[13]
The applicants relied on the judgment of the Supreme Court of Appeal
of
Gensinger
and Neave CC and Others v Minister of Mineral Resources and Energy
and Others,
[1]
(“Gensinger”)
in
which the Supreme Court of Appeal held that an internal
administrative appeal lodged with the Minister against the decision
of the Controller suspends the site and retail licence approved by
the Controller. Based on this decision and the fact that the
first
and the second respondents traded in petroleum products nearby and in
direct competition with the applicants, the applicants
brought an
urgent application for an order interdicting and restraining the
first and second respondents from operating a fuel
retail service
station on erf 4[...] Ottery Cape Town pending the determination of
the applicant's internal appeal to the Minister
in terms of section
12A of the PPA.
[14]
The applicants' interdict application was heard on 28 October 2024.
On 2 December 2024, Mthimunye
AJ delivered a written judgment. In
accord with the
Gensinger
decision, the Court issued an order
interdicting and restraining the first and second respondents from
operating a fuel retail
service on erf 4[...] Ottery pending the
outcome of the internal appeal to the Minister of Mineral Resources
and Energy. On the
same day the judgment was delivered, the first and
second respondents served upon the applicants an application for
leave to appeal.
[15]
Among others, in their application for leave to appeal, the
respondents emphasised the position
they expressed during the hearing
of the interdict application: they believe that the Supreme Court of
Appeal's decision in
Gensinger
is legally flawed. Despite the
court interdict, the first and second respondents continued their
trade in petroleum products, disregarding
the court order. To this
end, the applicants asserted that the respondents are in contempt of
the court order as they continue
to trade in petroleum products
despite the interim interdict restraining them from doing so.
[16]
The applicants stated that the first and second respondents, who are
controlled by the third
and fourth respondents, filed an application
for leave to appeal against this Court's judgment and order. This
establishes two
key facts: first, that the order against them is
valid and, second, that the first to fourth respondents were aware of
the existence
of the order. The applicants asserted that the order
granted by the court on 02 December 2024 was interim in nature and
was not
suspended by the filing of the application for leave to
appeal.
[17]
On 05 December 2024, the applicants sent a letter to the respondents
in which the first to the
fourth respondents were referred to
section
18(2)
of the
Superior Courts Act, which
stipulates that unless a
court in exceptional circumstances decides otherwise, the operation
of the interim order is not suspended
by an application for leave to
appeal or a subsequent appeal. In the letter, the order of this Court
was quoted. The letter pointed
out that this Court's order was an
interlocutory order that did not have the effect of a final judgment.
[18]
The letter also demanded that both respondents comply with the court
order and stop trading immediately.
The respondents were informed in
the letter that should they fail to adhere to the demand and fail to
confirm by close of business
on Friday, 6 December 2024, that they
will not trade pending the applicants' appeal, the applicants would
bring an urgent application
for contempt of court and that if that
becomes necessary, costs would be sought on a punitive scale.
[19]
Despite the letter being sent to the first to fourth respondents, it
was ignored. Meanwhile,
the respondents submitted representations to
the Minister regarding the applicants’ appeal against the
Controller's decision.
These representations included references to a
case they had filed in the Constitutional Court to challenge the
Gensinger
case. The applicants also attached receipts of fuel
purchases on 09 December 2024 from the respondents to prove the
ongoing trade
despite the court order. The applicants applied that
the respondents be held in contempt and that the court grant the
relief sought
in the notice of motion.
[20]
On the other hand, the respondents contended in their answering
affidavit and the counterapplication
that the interdict granted by
this Court is fully and unarguably final in effect and particularly
for its duration. The respondents
further asserted that the order
granted by this Court is a final order and, at worst, an order that
is final in effect. The respondents
stated that the interim interdict
issued by the court on 2 December 2024 is final in nature and was
suspended by the lodging of
the appeal on 2 December 2024 and by
their subsequent filing of leave to appeal at the Constitutional
Court.
[21]
According to the respondents, the suspension of the order occurred
axiomatically in terms of
section 18(1)
of the
Superior Courts Act,
and
this Court's interim interdict cannot fall under section 18(2) of
the Act. Simply put, the respondents contended that the two
applications
for leave to appeal filed in this Court and in the
Constitutional Court suspended the order in terms of
section 18(1)
of
the
Superior Courts Act. Whilst
suspended, the respondents asserted
that there can be no contempt of court.
[22]
In the counterapplication, the respondents averred that the second
and third respondents have
an exclusive supply and franchising
agreement with Shell. On 11 December 2024, the respondents received a
call from Shell advising
them that Shell had received notice from the
Department that their petrol station had to cease trading
immediately. Shell did not
immediately offer the respondents a copy
of the alleged notification from the Department but insisted that
there was a court order
obliging the respondents to close the station
and that Shell was not going to proceed with the scheduled fuel
deliveries. As a
result, the forecourt was therefore compelled to
close on Thursday evening on 12 December 2024. The convenience store,
however,
remained open but without vehicular traffic. This reduced
sales to a trickle than what they were supposed to be.
[23]
The respondents expressed their objections to an email authored by
the applicants' representative,
Ms Johnson, addressed to the
Department's official, Tsholofelo Moradi. In this correspondence, it
was alleged that the respondents
were operating in violation of a
court order. Ms Moradi brought this correspondence to Shell's
attention via an email dated 12
December 2024, which prompted Shell
to stop the fuel supply to the respondents. According to the
respondents, this complaint to
Shell had the effect, if not the aim,
of subverting and defeating the ends of justice and successfully
and/or illegally sabotaging
the operation of
section 18(1)
of the
Superior Courts Act.
[24
]
To this end, in the counterapplication, the respondents seek an order
that the advice sent by email
on 12 December 2024 by Tsholofelo
Moradi to Shell advising Shell of the court order against the
respondents be declared unlawful,
and of no legal force and effect
and to be disregarded.
Principal
Submissions by the Parties
[25]
At the hearing of the application, Mr Van Den Bogert SC, the
applicants' Counsel, submitted that
the interim interdict granted by
this Court on 2 December 2024 was interim in nature and not final.
Counsel asserted that the interim
order was granted pending the
adjudication of an appeal to the Minister in terms
section 12A
of the
PPA. Pending the adjudication by the Minister on the real dispute
between the parties, that is, the question whether there
is a need
for a further competing station in the area where the applicants
operate their fuel filling station, nothing prevents
the opposing
respondents from approaching the court for a variation or an
upliftment of the interim interdict should circumstance
change.
[26]
Mr Van Den Bogert submitted that the interdict remains open to
alteration. It is not final and
definitive of the rights of the
parties. Counsel submitted that its very reading confirms that it is
merely interlocutory in nature
because it reads “
Pending the
applicants' internal appeal to the minister of mineral resources and
energy..."
Counsel submitted that once the appeal has been
finalised, the interim interdict ceases to operate.
[27]
Regarding the contempt application, Mr Van Den Bogert asserted that
it was not disputed that
the court order, being the subject of this
contempt application, was issued. Counsel further submitted that the
four opposing respondents
have notice of the court order and have
conceded that they have not complied with it. This, therefore, places
an evidential burden
on the opposing respondents to establish that
the non-compliance with the court order was not wilful and mala
fides. Counsel submitted
that the respondents are in contempt of the
court order issued on 2 December 2024. Mr Van Den Bogert implored the
court to grant
the relief sought in the notice of motion.
[28]
On the other hand, Mr Savvas submitted that the order made by
Mthimunye AJ is not merely final
in effect but clearly and
indisputably a final interdict. Counsel argued that the argument of
the applicants that the order is
interlocutory is to be dismissed as
irresponsible. This is because the court order is not part of,
attached to, or emanates from
any ongoing, pending, or envisaged
litigation. Mr Savvas submitted that the order is not interlocked
with or intervene in any proceedings
cognisable under or by the
Superior Courts Act or
the Rules of Court.
[29]
Mr Savvas explained that the interim order is not intermediatory to
any active court process
and, importantly, there is no door, window
or the slightest crack for any subsequent court or forum to relook
at, or reconsider,
review or revisit the facts which concretise the
court's order or judgment. Mr Savvas further asserted that the order
is fully
final but subject to a simple factual resolutive condition
that occurs outside the jurisdiction of a court of law and over which
a court of law has no control, say, or involvement.
[30]
It was Counsel's further submission that the order in question is not
interlocutory to anything,
and therefore, the interdict ordered by
Mthimunye AJ became suspended when the application for leave to
appeal was launched on
2 December 2024. In addition, Counsel asserted
that the order became doubly suspended when leave to appeal was
lodged with the
Constitutional Court. Mr Savvas implored the court to
dismiss the applicants' contempt application with a punitive costs
order.
[31]
As far as the counterapplication is concerned, Mr Savvas impugned the
applicants' complaint in
an email dated 12 December 2024 addressed by
Ms Johnson, the director of the first applicant to the Department of
Mineral Resources
and Energy, that the first and second respondents
were trading despite the interim interdict restraining them from
doing so. According
to Mr Savvas, this led to the Department sending
an email to Shell's head office informing them to close the
respondents' sites.
On 12 December 2024, Shell’s headquarters
confronted the respondents, demanding they shut down the filling
station.
[32]
Mr Savvas submitted that it was unlawful for the applicants to
address a complaint to the Department,
which subsequently requested
Shell to stop trading at the respondents' site. In Mr Savvas' view,
granting the counterapplication
would ensure that no one improperly
influences officials in the Department without the respondents being
notified in advance. Counsel
prayed that the court dismiss the
applicants’ contempt application and grant the
counterapplication.
Issues
to be decided
[33]
There are three critical questions for consideration in these two
applications. The first principal
question that this Court is
enjoined to consider is whether the order granted by Mthimunye AJ on
02 December 2024 is an interim
order as envisaged in
section 18(2)
of
the
Superior Courts Act or
is it a final interdict envisaged in
section 18(1) of the Act. Secondly, if the Court finds that the
interim order is interim as
envisaged in
section 18(2)
of the
Superior Courts Act, in
that case, this Court must determine whether
the respondents are in contempt of court for acting in defiance of
the order.
[34]
Thirdly, this Court is called upon to determine whether a declaratory
order sought in the counterapplication
prohibiting the applicants
from directly engaging with or directly addressing any official of
the Department of Minerals and Energy
or the Controller of petroleum
products should be granted pending the respondents’ application
for leave to appeal.
Relevant
Legal Principles and Discussion
[35]
This case focuses on the application of
sections 18(1)
and
18
(2) of
the
Superior Courts Act regarding
the interim order granted on 2
December 2024. The critical question is whether the order given by
Mthimunye AJ on 2 December 2024
is an interim order as envisaged in
section 18(2)
or a final order as contemplated in
section 18(1)
of
the
Superior Courts Act. Before
I can consider this order's import
and effect, I find it appropriate to present the exact wording of the
contested order dated
2 December 2024, along with the relevant
statutory provisions of the
Superior Courts Act. The
pertinent part
of the order states as follows:
“
Pending the
Applicants’ internal appeal to the Minister of Mineral
Resources and Energy in terms of
section 12A
of the
Petroleum
Products Act 120 of 1977
, the first and second respondents are
interdicted and restrained from operating a fuel retail service
station on erf 4576, Ottery,
Cape Town, Western Cape, situated at
1[...] New Ottery, Western Cape until the final determination by the
Minister.”
[36]
The relevant part of
section 18
of the
Superior Courts Act provides
as follows:
“
Suspension of
decision pending appeal
(1) Subject to
subsections (2) and (3), and unless the court under exceptional
circumstances orders otherwise, the operation and
execution of a
decision which is the
subject of an
application for leave to appeal or of an appeal, is suspended pending
the decision of the application or appeal.
(2) Subject to subsection
(3), unless the court under exceptional circumstances orders
otherwise, the operation and execution of
a decision that is an
interlocutory order not having the effect of a final judgment, which
is the subject of an application for
leave to appeal or of an appeal,
is not suspended pending the decision of the application or appeal.
(3) A court may only
order otherwise as contemplated in subsection (1) or (2), if the
party who applied to the court to order otherwise,
in addition proves
on a balance of probabilities that he or she will suffer irreparable
harm if the court does not so order and
that the other party will not
suffer irreparable harm if the court so orders.”
[37]
As discussed above, at the hearing of this application, the
applicant's Counsel, Mr Van Den Bogert,
submitted that the order
quoted above is an interim order in terms of
section 18(2).
Mr Van
Den Bogert submitted that the order in the main judgment makes it
clear that it is interim in nature. On the other hand,
Mr Savvas
submitted that an interim interdict, which is not granted pending
another court application, is final in effect.
[38]
The argument of Mr Savvas seems to be that where a court will
probably not reconsider the interim
interdict, it is final in effect.
The respondents' argument also proposes that it must be the court
that finally decides the dispute
between the parties, and it cannot
be the Minister, as in this case. The respondents' argument further
suggests that if the determination
of the right of the parties is
contingent on an administrative functionary, the interdict granted
pending such determination is
final in effect.
[39]
Against this backdrop, I turn to consider the first primary question,
whether the order quoted
above is final or interim in nature and
thereafter the other disputed issues raised above.
Is
the order dated 2 December 2024, interim or final in effect?
[40]
Central to this matter is the interpretation of the court order
issued by Mthimunye AJ on 02
December 2024. Specifically, the
question at hand is whether the order is final in effect or interim,
as envisaged in
sections 18(1)
and
18
(2), respectively, of the
Superior Courts Act. In
Firestone
South Africa (Pty) Ltd v Enticer AG,
[2]
Trollip JA, observed that the basic principles applicable to
construing documents also apply to the construction of a court's
judgment or order: the court's intention is to be ascertained
primarily from the language of the judgment or order as construed
according to the usual, well-known rules. Thus, as in the case of a
document, the judgment or order and the court’s reasons
for
giving it must be read as a whole to ascertain its intention.
[41]
In
Finishing
Touch 163 (Pty) Ltd v BHP Billiton Energy Coal South Africa Limited
and others
,
[3]
it was held that the starting point is to determine the manifest
purpose of the order. While in
Natal
Joint Municipal Pension Fund v Endmen Municipality,
[4]
Wallis JA, described the process of interpretation as involving a
unitary exercise of considering language, context and purpose.
It is
an objective 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.
[42]
Section 18
of the
Superior Courts Act regulates
the suspension of
decisions pending appeal proceedings. In terms of
section 18(1)
, the
execution of a judgment having a final effect is automatically
suspended upon the noting of an appeal, with the result that,
pending
the appeal, the judgment cannot be carried out and no effect can be
given thereto, except with the leave of the Court in
terms of
section
18(3)
, which granted the judgment.
[5]
However, if the order granted is an interim order as envisaged in
section 18(2)
, there would be no automatic suspension of the order
pending an appeal.
[6]
[43]
The purpose of this rule as to the suspension of a judgment on the
noting of an appeal is to
prevent irreparable damage from being done
to the intending appellant, either by levy under a writ of execution
or by execution
of the judgment in any other manner appropriate to
the nature of the judgment appealed from.
[7]
In determining whether the order is final, it is essential to bear in
mind that not merely the form of the order must be considered
but
also, and predominantly, its effect.
[8]
The filing of an application for leave to appeal would suspend the
order if it were a
section 18(1)
type order, that is, if it is a
final order or an interim order which is final in effect.
[44]
In
South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd,
[9]
the Court observed that in a wide and general sense, the term
'interlocutory' refers to all orders pronounced by the Court upon
matters incidental to the main dispute, preparatory to, or during the
progress of the litigation. However, orders of this kind
are divided
into two classes: (I) those which have a final and definitive effect
on the main action; and (ii) those known as 'simple
(or purely)
interlocutory orders' or 'interlocutory orders proper', which do not.
[45]
The Court held that statutes relating to the appealability of
judgments or orders that use the
word 'interlocutory' or other words
of similar import refer to simple interlocutory orders. In other
words, it is only in the case
of simple interlocutory orders that the
statute is read as prohibiting an appeal or, making it subject to the
limitation of requiring
leave. Final orders, including interlocutory
orders having a final and definitive effect, are regarded as falling
outside the purview
of the prohibition or limitation.
[46]
Reverting to the present matter, it is common cause that the order
made on 2 December 2024 was
granted pending the determination of an
appeal to the Minister in terms of
section 12A
of the PPA. The
interdict, in my view, remains open to alterations. There is no
dispute between the parties that the interim interdict
granted by the
court on 2 December 2024 will only operate pending a decision to be
made by the Minister of Mineral Resources and
Energy in respect of
the appeal that the applicants lodged in terms of the provisions of
the PPA. The appeal can be decided at
any time by the Minister. In
that appeal, the Minister will determine whether there is a need for
another competing filling station
to trade in proximity to the
applicants' filling station.
[47]
Once the appeal has been adjudicated upon, whether it is for or
against the applicants, the interdict
will come to an end and will
have no further effect anymore. Therefore, the interdict has the
nature of an interim order, and the
submission by the respondents
that it has the effect of a final judgment is mistaken and cannot be
correct. Notably, the judgment
and the reasons in the interdict
application confirms the interim nature of the order sought and
granted. As previously stated,
the order is self-evidently of an
interim nature. The wording and effect of the order do not have the
effect of a final order in
its reading. Nor did the court, in its
judgment, state that the order is final. As such, it is an
interlocutory order and falls
squarely within the purview of
section
18(2)
of the
Superior Courts Act.
[48
]
Finally, on this point, the respondents' Counsel endeavoured to argue
that where a court will not
reconsider the interim interdict as it
depends upon an administrative functionary's decision, such an order
is final in effect.
Mr Savvas posited that an interim interdict,
which is not granted pending another court action, is final in
effect. Counsel suggested
that it must be the court that finally
resolves the dispute between the parties; it cannot be the Minister,
as in this case. This
argument, in my view, is erroneous and misses
the point. In a wide and general sense, the term "interlocutory"
refers
to all orders pronounced by the Court, upon matters incidental
to the main dispute, preparatory to, or during the progress of, the
litigation.
[10]
The pending
appeal before the Minister concerns the central dispute between the
parties. The interdict in this case is intended
to preserve the
status
quo
while
awaiting the Minister's decision.
[49]
Significantly, I find the decision of the full Court in
Helen
Suzman Foundation and Another v Minister of Home Affairs
,
[11]
particularly pertinent and on point to the disputed issues in this
matter. In that case, the court considered an application by
the
Helen Suzman Foundation and the Consortium for Refugees and Migrants
in South Africa in which they sought a declarator that
an interim
order that the court earlier granted was interim in nature as
contemplated in
section 18(2)
of the
Superior Courts Act.
>
[50]
Amongst others, the interim order in that case provided that pending
the conclusion of a fair
process and the Minister of Home Affair’s
further decision within 12 months, it was directed that the existing
Zimbabwean
Exemption Permit shall be deemed to remain valid for the
next 12 months and that no holder of the exemption would be arrested,
ordered to depart, or be detained for purposes of deportation in
terms of section 34 of the Immigration Act and for reasons related
to
him or her not having a valid exemption certificate in his or her
passport.
[51]
The Minister’s opposition to the application for a declaratory
order was on the basis that
although the order was couched as an
interim order, its effect was that of a final order as envisaged in
section 18(1). The Minister
contended that the order was final in
nature and that the Minister was entitled to appeal it.
[52]
The full court was required to consider whether the temporary order
was interlocutory in nature
as contemplated in
Section 8(2)
of the
Superior Courts Act and
, if so, whether the court should issue a
declarator that should provide certainty as to the legal position.
The court considered
the matter and stated as follows:
“
[25]
It is not correct that the requisites for a final
order apply in respect of this court's interim order. The
judgment
made it clear that the order
that
is being granted is aimed at preserving the
status quo.
The
requisites for a final order as stated in
the
Zweni
judgment
do not apply to the judgment and order given by this Court. The
rights of the ZEP holders as stated in the order are
not definitive,
firstly, in that they are subject to the determination by the
Minister and may be altered when the Minister
has conducted a
fair hearing as contemplated in the interim order; secondly, the
existing ZEPs shall be deemed to remain valid
for the next (12)
twelve months pending the conclusion of a fair process; thirdly, the
Minister's decision has been set aside temporarily
until he
concludes a fair process within 12 months;
and fourthly, the Minister's powers to act in terms
of section
31(2)(b) of the Immigration Act
have
not been usurped.
[26] For these reasons,
it is found that the Minister's contention that the interim
order has the effect of a final judgment
is rejected. We consider
below whether a declarator compelling the Minister to comply with the
interim order pending any appeals
contemplated by the Minister
should anyway be granted.
[27]
The order is self-evidently of an interim nature.
The wording of the order is
not having an effect
of a final judgment in its reading. Nor did the court in its
judgment state that the order is final.
The Court deemed a period of
12 months sufficient for the Minister to complete a fair process.”
(footnotes omitted)
[53]
Similarly, in this case, the Minister will determine the dispute
between the parties. Mthimunye
AJ’s judgment indicated that the
order is of an interim nature. The reasons articulated for the order,
along with the order
itself, clearly indicate that it is of an
interim nature. It does not dispose of all the issues between the
parties. As such, it
is an interlocutory order and falls squarely
within the purview of
section 18(2)
of the
Superior Courts Act. The
contention that this order has the effect of the final judgment is
untenable and falls to be rejected. The respondents' application
for
leave to appeal filed in this Court on 2 December 2024 and in the
Constitutional Court on 17 December 2024 did not suspend
the
operation of the interim interdict issued by this Court. I now turn
to considering the second disputed issue.
Are
the respondents in contempt?
[54]
It is not in dispute that the court order, being the subject matter
of this contempt application,
was issued. It is also not in dispute
that the four respondents have received notice of the court order and
have not complied with
it. The respondents defied the court order.
Notwithstanding the court interdict, they continued to trade in
petroleum products.
More so, I agree with the views expressed by the
applicants' legal representative that the fact that the first and the
second respondents,
who are controlled by the third and fourth
respondents, launched an application for leave to appeal against the
judgment and order
of this court, establishes two facts, namely, that
the order exists and that the first to the fourth respondents knew
about the
existence of the order.
[55]
The defence raised by the respondents for non-compliance with the
court order is that their counsel
advised them that there is no case
of contempt in this matter and that the interdict granted by this
court is fully and unarguably
final in effect. Furthermore, the
respondents asserted that the two applications for leave to appeal
that have been filed suspended
the order in terms of
section 18(1)
of
the
Superior Courts Act. Whilst
suspended, the respondent contended
that there can be no contempt.
[56]
I must stress that the approach and stance adopted by the respondents
and their Counsel to ignore
the order of this court is very worrying
and disturbing to say the least. The advice of Counsel cannot
supersede or prevail over
a court order. It is a dangerous thing for
a litigant to ignore an order of court wilfully.
[12]
More so, it is a crime to unlawfully and intentionally disobey a
court order. Court orders must be obeyed until they are set aside,
or
chaos may result if people are allowed to disregard them without
consequences.
[13]
[57]
Section 165(5) of the Constitution makes orders of court binding on
all persons (including the
respondents) to whom and organs of state
to which it applies.
[14]
These
obligations must be fulfilled. It is crucial to uphold the integrity
of the judicial system and ensure that contempt of a
court order is
not tolerated, as such conduct not only threatens the rule of law but
also erodes public trust in the judiciary.
Discernibly, continual
non-compliance with court orders imperils judicial authority.
[15]
Disregarding judicial authority should be unequivocally condemned and
denounced in the strongest terms possible.
[58]
In my opinion, if the respondents held a steadfast belief that the
order issued by the court
was definitive in its effect, they should
have pursued a declaratory order from this court to affirm that
understanding. I am of
the firm view that it was not open for the
respondents to flagrantly disregard the court order pursuant to the
view they held that
it was final in effect. This outright repulsive
position is simply unacceptable. Contempt of court is inimical to the
rule of law
and strikes at the heart of the constitutional state.
[59]
Most significantly, in
Minister
of Home Affairs and Others v Somali Association of South Africa and
Another,
[16]
the Supreme Court of Appeal emphasised that there is an unqualified
obligation on every person against, or in respect of, whom
an order
is made by a court of competent jurisdiction to obey it unless and
until that order is discharged. The court observed
that
it
cannot be left to the litigants to themselves
judge
whether or not an order
of court should be obeyed. There is a constitutional requirement for
complying with court orders, and judgments
of the courts cannot be
any more explicit on that score.
[60]
Generally, an applicant seeking an order for contempt of court must
prove that (
a
)
an order was granted against the alleged contemnor, (
b
)
that the alleged contemnor was served with the order or had knowledge
of it, (
c
)
that the contemnor had failed to comply with the order, and
(d)
the
non-compliance must be wilful and mala fide.
[17]
Once these elements are established, wilfulness and mala fides are
presumed against the respondents, who then attracts an evidentiary
burden to negate these presumptions.
[18]
Should the respondents fail to discharge this burden, contempt will
have been established.
[61]
In relation to onus, a distinction is drawn between applications
where the respondent’s
incarceration is sought and coercive
contempt applications.
[19]
Where sanction for committal to prison is sought, the standard of
proof must be beyond a reasonable doubt.
[20]
However, in civil mechanisms designed to induce compliance short of
committal to prison, such as is the case here, proof on
a
balance of probabilities is sufficient.
[21]
[62]
Evidently, the existence of the order, the respondents' knowledge
thereof, and non-compliance
is essentially undisputed in this matter.
The respondents bore the duty to show that their default was not mala
fide. The respondents
rely solely on their Counsel's advice that the
interim interdict is final in effect and that the filing of the leave
to appeal
suspended the order.
[63]
As correctly pointed out by Mr Van Den Bogert, what is conspicuously
absent from the answering
affidavit of the opposing respondents is
any version of the respondents' own interpretation of this court's
order. The third and
fourth respondents are directors of the first
and second respondents. They are astute businessmen. Indeed, they
understood the
import of the interim order, hence they appealed
against it. Based on a simple reading, this order is interlocutory
and will only
operate for an interim period. Its interpretation
requires no rocket science. It is plain, and it is clear.
[64]
It is not excusable for the respondents to rely on Counsel's advice
to ignore a court order,
particularly where the advice is not
reasonably sustainable. From the totality of the evidence placed
before this Court, I am satisfied
that the respondents are in
contempt of the court order issued on 2 December 2024.
[65]
I am mindful that the first and the second respondents are juristic
persons. However, a director
of a company who, with full knowledge of
an order of court against the company, causes the company to disobey
the order is himself
guilty of contempt of court. By his act or
omission, such a director aids and abets the company to be in breach
of the court order
against the company.
[22]
Thus, the third and fourth respondents are guilty of contempt of
court.
[66]
Even if I am wrong in my interpretation of the order that it was
interim in nature, based on
the
Gensinger
judgment, I am of
the view that the retail license issued by the Controller to the
respondents was suspended when the applicants
lodged an appeal
against the decision of the Controller to issue that license. The
respondents' disagreement with the decision
in
Gensinger
does
not grant them the right to ignore the court order and continue
trading. It is important to note that
Gensinger
was decided by
the Supreme Court of Appeal, which is the highest court of appeal in
matters other than constitutional issues. Accordingly,
that court’s
decision must be respected.
[67]
Pursuant to the
Gensinger
case, while the applicants’
appeal is pending before the Minister, the decision to grant the
licence to the respondents cannot
be executed, and no effect can be
given to it. Simply put, the suspension of the order by the lodgement
of appeal means that the
respondents cannot trade until the Minister
makes a final determination.
[68]
The argument Mr Savvas presented during the hearing of this
application—that the Supreme
Court of Appeal erred in its
judgment in
Gensinger
by allowing third parties, such as the
applicants, to appeal against a decision made by the Controller—is
fundamentally flawed.
Section 12A(1) of the PPA provides that 'any
person
directly affected
by a decision of the Controller of
petroleum products may, notwithstanding any other rights that such a
person may have, appeal
to the Minister against such decision.'
[69]
Evidently, the Controller's decision to issue a retail licence to the
respondents will directly
affect the commercial rights or interests
of the applicants as contemplated in section 12A of the PPA. Simply
put, the sale of
petroleum products at the applicants' outlets will
be negatively affected.
Should
the respondents’ Counterapplication be granted?
[70]
Pursuant to the finding made hereinabove, I deem it unnecessary to
deal with the counterapplication
in detail. In my view, the finding
above disposes the counterapplication. In any event, I hold the view
that the counterapplication
was bound to fail as the respondents
sought declaratory orders and an interdict without dealing with the
trite requirements of
an interdict.
Costs
[71]
The applicants' legal representative has requested that the court
order the respondents to pay
costs on an attorney-and-client scale to
express its displeasure with the respondents' contemptuous conduct.
It is a trite that
a court considering an order of costs exercises a
discretion which must be exercised judicially.
[23]
In my view, the respondents flagrantly disregarded a court order
which was very clear and easy to understand. The respondents also
disregarded the
Gensinger
case which informed the
granting of the interim interdict. Such conduct must be denounced.
[72]
A deliberate failure to comply with a court order issued in civil
proceedings is deemed contempt
and constitutes a criminal offense.
This Court must indeed display its displeasure with the contemptuous
conduct of the respondents.
In my view, a cost order on an attorney
and client scale is fitting in this matter.
[73]
Finally, I have noted with deep concern the unsavoury diction used by
the respondents against
the applicants in their answering affidavit
and in their Counsel's heads of argument. In my opinion, the
unpleasant diction in
these documents is extremely unfortunate and
has no place in court documents.
Order
[74]
In the result, the following order is granted:
74.1
The application is heard on an urgent basis, and the applicants’
noncompliance with the Rules of Court
insofar as it pertains to the
time periods and methods of service is condoned as envisaged in Rule
6(12) of the Uniform Rules of
Court.
74.2 It
is declared that the first, second, third and fourth respondents are
in contempt of this Court's order
issued under the above case number
granted by Mthimunye AJ on 02 December 2024.
74.3
The third and fourth respondents are committed to prison for a period
of (03) three months.
74.4. The
order in 74.3 above, is suspended for a period of one year on
condition that:
74.4.1 The first and the
second respondents forthwith comply with this court's judgment and
order of 2 December 2024, and
74.4.2 The first and the
second respondents immediately cease to trade and desist from
operating fuel retail services station on
erf 4[...] Ottery, Cape
Town, Western Cape Province, situated at 1[...] New Ottery Road,
Ottery East, Western Cape Province.
74.5
Should the first and the second respondents fail to comply with this
order within a period of 24 (twenty-four)
hours from the time of the
granting of this order, the Registrar of this Court is authorised to
issue the required warrants for
the arrest of the third and fourth
respondents, and the members of the South African Police Services
shall be authorised to arrest
the third and fourth respondents and
hand them to the relevant prison authorities of the Department of
Correctional Services, who
shall detain them in prison to serve their
sentence as envisaged in order 74.3 above.
74.6
The first to fourth respondents shall pay the cost of this
application and the counterapplication jointly
and severally, one
paying the other to be absolved on an attorney and client scale.
LEKHULENI
JD
JUDGE
OF THE HIGH COURT
APPEARANCES
For
the Applicants: Advocate Van Den Bogert
Instructed
by: Duvenhage Attorneys - Pretoria
For
the first, second, third and fourth Respondents: Advocate Savvas
Instructed
by: Murray Kotze & Associates
[1]
(223/2023)
[2024] ZASCA 49
(15 April 2024).
[2]
1977 (4) SA 298
(A) at 304D.
[3]
Finishing
Touch 163 (Pty) Ltd v BHP Billiton Energy Coal South Africa Limited
and Others
2013
(2) SA 204
(SCA) para 13.
[4]
2012 (4) SA 593
(SCA) para 18.
[5]
South
African Motor Industry Employers’ Association v South African
Bank of Athens Ltd
1980
(3) SA 91
(A) at 96H.
[6]
Cash
Crusaders Franchising (Pty) Ltd v Cash Crusaders Franchisees
2024 (4) SA 141
(WCC) at
para 42.
[7]
South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd (supra)
at
542D and 545A.
[8]
South
African Motor Industry Employers’ Association v South African
Bank of Athens Ltd
(supra)
at
96H.
[9]
1977 (3) SA 534
(AD) at 549F– 551H.
[10]
South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd (supra)
at
549F.
[11]
2023 JDR 4339 (GP).
[12]
In
Bezuidenhout
v Patinise Sitrus Beherend Bpk
2001
(2) SA 224
(E) at 228F-230A, Froneman J stated that an order of a
court of law stands and must be obeyed until set aside by a court of
competent
jurisdiction.
[13]
Culverwell
v Beira
1992
(4) SA 490
(W) at 494A-E.
[14]
Pheko
and Others v Ekurhuleni City
2015
(5) SA 600
(CC) at para 26.
[15]
Matjhabeng
Local Municipality v Eskom Holdings Ltd and Others
2018 (1) SA 1
(CC) at
para 48.
[16]
2015 (3) SA 545
(SCA) para 48;
S
v Mamabolo (E TV and Others Intervening)
(2001
(1) SACR 686
(CC) at para 24.
[17]
Matjhabeng
Local Municipality v Eskom Holdings Ltd and Others
(supra)
at
para 73;
Fakie
N.O v CCII Systems (Pty) Ltd
2006
(4) SA 326 (SCA).
[18]
Snowy
Owl Properties 284 (Pty) Ltd v Celliers and Another
(1295/2021)
[2023] ZASCA
37
(31 March 2023) para 22.
[19]
Matjhabeng
Local Municipality v Eskom Holdings Ltd and Others
(supra)
para 67.
[20]
Pheko
and Others v Ekurhuleni City
2015
(5) SA 600
(CC) at paras 35 – 36.
[21]
Fakie
NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006
(4) SA 326
(SCA) at para 17.
[22]
Minister
of Water Affairs and Forestry v Scillonian Gold Mine Co Ltd
2006 (5) SA 333
(W) at
para 16.8.
[23]
F
erreira
v Levin NO and Others; Vreyenhoek and Others v Powell NO and Others
[1996] ZACC 27
;
1996
(2) SA 621
(CC);
Motaung
v Makubela and Another, NNO; Motaung v Mothiba NO
1975
(1) SA 618
(O) at 631A.
sino noindex
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