Case Law[2025] ZAWCHC 487South Africa
New Life Holdings (Pty) Ltd v Van Der Hoven and Others (25696/2024) [2025] ZAWCHC 487 (23 October 2025)
High Court of South Africa (Western Cape Division)
23 October 2025
Headnotes
Summary: Procedure- application to strike out new matter in reply – alternatively to deliver a further affidavit – no matter introduced in reply more than the clarification of the pleaded case – both applications refused with costs.
Judgment
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## New Life Holdings (Pty) Ltd v Van Der Hoven and Others (25696/2024) [2025] ZAWCHC 487 (23 October 2025)
New Life Holdings (Pty) Ltd v Van Der Hoven and Others (25696/2024) [2025] ZAWCHC 487 (23 October 2025)
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FLYNOTES:
CONTRACT
– Guarantee –
Enforceability
against guarantors –
Written
demand – Sale of shares and loan account agreement –
Guarantee defined respondents as guarantors and included
detailed
provisions for payment on demand – Created principal and
independent obligations – Enforceable upon
written demand
regardless of company’s liability – Required immediate
payment upon receiving notice even if liability
was disputed –
Liability triggered by written demand – Application
succeeds.
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Not Reportable
Case no: 25696/2024
In the matter between:
NEW LIFE HOLDINGS
(PTY) LTD
APPLICANT
And
STEFANUS VAN WYK
VAN DER HOVEN
JACOBUS REYNEKE VAN
DER HOVEN
NEIL
FRANS ROETS
FIRST RESPONDENT
SECOND RESPONDENT
THIRD
RESPONDENT
Neutral
citation:
New Life Holdings
(Pty) Ltd v Van Der Hoven and Others
(Case
no 25696/2024) [2025] ZAWCHC … (23 October 2025)
Coram:
NUKU
J
Heard
:
28 August 2025
Delivered
:
23 October 2025
Summary:
Procedure
-
application to strike out new matter in
reply – alternatively to deliver a further affidavit – no
matter introduced
in reply more than the clarification of the pleaded
case – both applications refused with costs.
Contract- interpretation
of the terms of a guarantee providing for payment on demand –
liability arising on receipt of a written
demand stating that any
amount is owed independently of the prior agreement that gave rise to
the guarantee.
ORDER
1.
The respondents are ordered to make the following
payment to the applicant, jointly and severally, with the one paying
the others
to be absolved:
(a)
The sum of R8 376 045 (Eight Million
Three Hundred and Seventy-Six Thousand and Forty-Five Rand);
(b)
Interest on the amount referred to in (a) above
calculated at the rate of 11.75% per annum, from 5 August 2024, until
the final
date of payment, both days inclusive; and
(c)
Costs of the application on an attorney-and-client
scale.
JUDGMENT
Nuku J
Introduction and
factual background
[1]
The applicant seeks payment of R8 376 045,
along with interest and costs from the respondents arising from a
guarantee
agreement concluded between the parties (“guarantee”).
[2]
The parties concluded the guarantee to secure the
performance of the obligations by Climealine (Pty) Ltd
(“Climealine”),
arising from a sale of shares and loan
account agreement (“SPA”) that Climealine had entered
into with the applicant
for the sale of the applicant’s shares
and loan account in Imalisoft (Pty) Ltd (“Imalisoft”).
[3]
The applicant pleaded the following terms of the
guarantee, which the respondents did not dispute, namely that:
(a)
The phrase ‘guaranteed obligations’
was defined as each and every of Climealine’s payment
obligations, liabilities
and duties towards and/or in respect of the
applicant under and in terms of the sale of shares and loan account
agreement, including
the obligations to timeously settle/pay the
entire purchase price, and each part thereof, and any accrued
interest owing by Climealine
to the applicant under and in terms of
the sale of shares and loan account agreement.
(b)
The word ‘guarantors’ was defined to
refer to the respondents collectively, or any of them, as context
requires.
(c)
The rights and obligations of the parties under
the guarantee were subject to and conditional upon the fulfilment of
the condition
precedent that the share sale agreement be entered into
and signed by and between the relevant parties thereto, and the same
having
become unconditional on or before 31 March 2023.
(d)
The respondents, jointly and severally,
irrevocably and unconditionally:
i.
Guaranteed and undertook as a principal and
independent obligation in favour of the applicant, its
successors-in-title and assigns,
the due and timeous performance by
Climealine of all of the guaranteed obligations;
ii.
Bound themselves as co-principal debtors
in
solidum
with Climealine for the due and
timeous payment by Climealine of each and every amount owing by
Climealine to the applicant under
and in terms of the SPA from time
to time; and
iii.
Indemnified and undertook to hold harmless the
applicant and its successors-in-title against any and all loss,
liability, damage,
cost (including, without limitation, legal costs
on a scale as between attorney and own client) and expense which the
applicant
and/or its successor-in-title and assignee may suffer or
incur in connection with a breach of the Guaranteed Obligations; on
the
terms set out in the guarantee.
(e)
The obligations of the respondents, jointly and
severally, under the guarantee are principal and independent
obligations and remain
enforceable notwithstanding the invalidity or
unenforceability, for any reason whatsoever, of the guaranteed
obligations.
(f)
The security constituted by the guarantee
constitutes a continuing covering security for the guaranteed
obligations and remains
in force and effect until the whole of the
guaranteed obligations have been fully and unconditionally
discharged.
(g)
No alteration or variation of the share sale
agreement or any other present or future agreement (or any alteration
or variation
thereof) between the parties thereto shall in any way
release the respondents from their liability.
(h)
Upon receipt by the respondents, or any of them,
of any written notice from the applicant stating that any amount is
payable by
the respondents, or any of them, or that the respondents,
or any of them, are obliged to perform any obligation to the
applicant,
in terms of the guarantee, the respondents, jointly and
severally, will, notwithstanding that the respondents, or any of
them,
may dispute their liability to make such payment, immediately:
i.
Perform such obligation; or
ii.
Pay the amount stipulated in the notice, in cash,
without set off, withholding or deduction of any nature whatsoever,
into the bank
accounts stipulated by the applicant in writing for
this purpose; or
iii.
If requested by the applicant, provide security to
the satisfaction of the applicant in its sole and absolute discretion
for the
performance of such obligation or payment of such amount.
(i)
A certificate under the hand of a manager
and/or director of the applicant as to the existence or amount of
indebtedness of Climealine
and/or the respondents, or any of their,
indebtedness to the applicant at any time, or as to the fact that
such amount is due and
payable, the amount of interest accrued
thereon, the rate of interest applicable thereto or as to any other
fact, matter or thing
relating to the indebtedness of Climealine
and/or the respondents, or any of them, to the applicant, shall be
prima facie proof
of the contents and correctness thereof. It shall
not be necessary to prove the appointment of the person signing such
a certificate.
(j)
As part of the respondents’ liability in
terms of the guarantee, the respondents, jointly and severally, shall
pay the amount
of costs, charges and expenses of whatever nature
incurred by the applicant in securing or endeavouring to secure
fulfilment of
the guaranteed obligations as well as the respondents,
or any of their, obligations under the guarantee, including, without
limitation,
collection commission and legal costs on the scale as
between an attorney and client, insurance premiums, broking costs,
storage
charges, costs and expenses of valuation, maintenance,
advertising, realisation (including agent’s and auctioneer’s
commissions and other charges and disbursements), taxes and other
fiscal charges.
(k)
The respondents each renounced the benefits of the
following legal exceptions:
i.
No cause of debt and no value received;
ii.
Revision of accounts and errors of calculations;
and
iii.
Non numeratae pecuniae
.
(l)
The respondents waived any right they have of
first requiring the applicant (or any director, shareholder or agent
on its behalf)
to proceed against or enforce any other rights or
security, or to claim payment from any person or Climealine before
claiming from
the respondents under the guarantee. This waiver
applies irrespective of any law or provision of any agreement,
document or Guaranteed
Obligation to the contrary.
[4]
The applicant’s case is that the
conditions precedent contained in the guarantee were fulfilled on or
before 31 March 2023,
as evidenced by a document signed on behalf of
the applicant, Climealine, and Imalisoft titled ‘Fulfilment of
conditions
precedent pertaining to the sale of shares and loan
account agreement’.
[5]
Acting in accordance with clause 5.10 of the
guarantee, the applicant issued a demand to the respondents on 5
August 2024, requesting
payment within seven days of R8 376 045,
plus interest at a rate of 15,75% per annum from 1 July 2024, until
the date of payment.
The respondents failed to pay the amount
demanded. Additional demands dated 26 September 2024, and 28 October
2024, also addressed
to the respondents, did not result in payment.
[6]
On 22 August 2024 and 11 November 2024, the
applicant issued breach notices to the respondents, which elicited no
positive response
from them. That resulted in the applicant
instituting the present application seeking the enforcement of the
obligations arising
from the guarantee.
[7]
The respondents oppose the application on various
grounds. In their answering affidavit, the respondents raised two
lis
pendens alibi
points
in
limine
. These points
in
limine
relate to proceedings that are
currently pending in the Limpopo Division of the High Court.
[8]
The first of these proceedings is an action by
Climealine seeking payment of R1 500 000 (One Million Five Hundred
Thousand Rand)
from the applicant because the SPA has been cancelled
due to the applicant’s repudiation, which Climealine has
accepted (“cancellation
action”).
[9]
The second is an action instituted by Climealine,
Intuitive PDA (Pty) Ltd (“Intuitive”), and Imalisoft, as
plaintiffs,
against the applicant, DebtSafe (Pty) Ltd (“DebtSafe”),
ADCAP (Pty) Ltd (“ADCAP”), and Mr. Hendrik Christoffel
Du
Plessis (“Mr. Du Plessis”), as defendants. In this
action, Climealine seeks, as against the applicant, a declaratory
order to the effect that it is excused from making payments under the
SPA to the applicant as long as the applicant remains in
breach of
the agreement documenting the fulfilment of the conditions precedent.
For convenience, I refer to this action as the
declaratory action.
[10]
On the merits, the respondents’ case is that
they are not liable for the same reasons that Climealine is not
liable to the
applicant. This is based on their stated purpose of the
guarantee, which they say was to provide for the respondents to be
liable
for Climealine’s debts in terms of the SPA, only if
Climealine is liable to the applicant in the first place.
[11]
The applicant filed a replying affidavit stating
that the outcome of the application depends on whether the guarantee
creates independent
obligations or if the guaranteed obligations only
arise from the SPA. The replying affidavit also described the
difference between
the parties’ approaches, with the deponent
suggesting that the respondents seem to treat the guarantee as a
suretyship.
[12]
The deponent to the replying affidavit went
further to clarify the applicant’s stance, stating that the
guarantee creates
principal obligations, and that the guarantors’
liability is independent of the principal debtor (Climealine in this
case)
and entirely separate from the SPA. The deponent went further
to point out the incorrectness of a statement made in the answering
affidavit that, ‘the liability of the respondents in terms of
the guarantee depends on the anterior question as to whether
Climealine is liable to the applicants in terms of the sale
agreement’. It was also pointed out that the respondents
overlooked
the provisions of clause 5.2 of the guarantee which
provide that: ‘For avoidance of any doubt, the obligations of
the Guarantors,
jointly and severally, under this Agreement are
principal and independent obligations and are not and will remain
enforceable notwithstanding
the invalidity or unenforceability, for
any reason whatsoever, of the Guaranteed Obligations.’
[13]
The respondents applied to strike out the matter
referenced above from the applicant’s replying affidavit,
arguing that the
applicant is now attempting to present an entirely
different case from the one outlined in the founding affidavit.
[14]
It was suggested that the case made out in the
applicant’s founding affidavit is that the respondents are
liable for the same
amount that is due to the applicant by Climealine
under the SPA. It was further suggested that the applicant’s
case in the
founding affidavit was never based on the respondents’
liability being ‘wholly independent’ from the SPA and
from Climealine’s liability to the applicant. Based on these
two averments, it was contended that paragraphs 3 to 11 of the
applicant’s replying affidavit should be struck out.
[15]
Alternatively, if the strikeout application is
refused, the respondents sought the leave of the Court to file a
further affidavit
to address what they argued was a new matter
introduced in the reply.
[16]
In the further affidavit sought to be filed by the
respondents, they, however, repeated their position as stated in
their answering
affidavit, namely that their liability under the
guarantee is and can only be for the same amount that may be due to
the applicant
by Climealine in terms of the SPA, and that they are
not liable for the same reasons that Climealine is not liable.
[17]
The only difference this time was that they cited
some of the clauses of the guarantee to support their position. In
particular,
they referenced clauses 2.2, 3.1.1.6, 4.2, 5.1.1-3, 6-8,
12.2, which are not necessary to list since most of them had been
explicitly
pleaded by the applicant as outlined in paragraph 3 above.
The affidavit concluded by stating that it will be argued at the
hearing
that, when properly interpreted, the respondents’
liability to the applicant can only be for Climealine’s
liability
to the applicant under the SPA, and if that is not the
correct interpretation of the guarantee, then, at best for the
applicant,
the guarantee contains such fundamentally contradictory
and mutually destructive provisions that it must be void for
vagueness.
[18]
The applicant opposed the application to strike
out because the replying affidavit did not present any new evidence.
It also opposed
the application to file a fourth affidavit because
the respondents, (a) have not shown exceptional circumstances, (b)
have not
demonstrated any prejudice, and (c) intend to cure avoidable
defects in their answering affidavit.
Issues for
determination
[19]
The issues for determination in this application,
in light of the above factual background, are the following:
(a)
The merits of the respondents’ strike-out
application and application for leave to file the fourth affidavit;
and
(b)
The interpretation of the terms of the guarantee
and the availability of the
lis pendens
alibi
defences to the respondents.
The respondents’
strike-out application and application for leave to file the fourth
affidavit
[20]
The respondents argue that the case the applicant
sought to make out in the founding affidavit is that their liability
under the
guarantee relates to the same debt owed by Climealine under
the SPA. This is because the applicant, in the founding affidavit,
not only referenced the conclusion of the SPA and the alleged breach
by Climealine but also included demand letters sent to Climealine
for
the same amount the applicant is seeking from the respondents in this
application.
[21]
In the replying affidavit, as the argument goes,
the applicant now attempts to make a different case, claiming that
the respondents’
liability is not related to Climealine or the
SPA but is entirely independent of both.
[22]
The applicant argued that a careful reading of the
founding affidavit clearly shows that, from the beginning, the
applicant has
always aimed to enforce the guarantee without
referencing the SPA, as paragraph 9 of the affidavit states: '[t]he
applicant seeks
to enforce a guarantee agreement concluded between it
and the respondents. By seeking payment from the respondents, the
applicant
is effectively seeking specific performance of the
guarantee.’
[23]
The argument further suggests that since the
outcome of the application depends on the interpretation of the
guarantee, as the respondents
must accept, no new evidence has been
introduced in the replying affidavit. Additionally, the respondents
complain of any prejudice
because the interpretation of the guarantee
is based on legal argument, which the respondents remain entitled to
present.
[24]
Finally, it was argued that what the replying
affidavit did was simply clarify what was already pleaded, namely
that the application
concerns the enforcement of a guarantee made
between the applicant and the respondents.
[25]
The arguments presented by the applicant have
merit, and paragraph 9 of the founding affidavit mentioned above
clearly indicates
the applicant’s cause of action. The fact
that the applicant chose to detail how the guarantee originated does
not change
the fact that the applicant’s cause of action has
always been based on enforcing the guarantee. This also applies to
the
reference made to the demands made to Climealine because the
respondents' liability is a matter that must be determined by
interpreting
the guarantee, and the evidence relating to the demands
made to Climealine has no role to play in that interpretative
process.
[26]
The respondents' misinterpretation of the
reference to the origins of the guarantee, along with the alleged
breaches by Climealine
and the subsequent demands, cannot change the
fact that the applicant’s claim is solely based on enforcing
the guarantee.
In other words, the respondents cannot use their own
misreading of the pleadings to suggest that the applicant has either
altered
its cause of action or introduced new evidence in reply.
[27]
The affidavit supporting the strike-out
application does not mention any prejudice that the respondents would
suffer if the application
is refused. This is not surprising because,
as the respondents state in the same affidavit, their liability
depends on the interpretation
of the guarantee. Given that, as the
applicant argued, the respondents are entitled to present legal
arguments on that matter,
the issue of prejudice to the respondents
does not arise. In fact, the affidavit that the respondents seek to
have admitted merely
introduces legal arguments which they are, in
any case, entitled to present during oral argument.
[28]
The respondents have not established a case for
striking out the new matter, which they claimed was introduced in the
replying affidavit.
This is because no new matter was introduced in
the replying affidavit. Since no new matter was introduced in reply,
there is no
basis for granting the respondents leave to file a fourth
set of papers, which simply raises a legal argument that the
respondents
are, in any event, entitled to present. Both the
application for striking out and the application for leave to file a
fourth set
of papers are refused with costs.
The interpretation of
the terms of the guarantee and the availability of the
lis pendens
alibi
defences to the respondents.
[29]
The applicant argued that the terms of the
guarantee clearly show that the respondents' liability under the
guarantee is separate
from Climealine's liability under the SPA.
Specific reference was made to clause 5.1.1, which states that the
respondents undertook
‘as a principal and independent
obligation in favour of the applicant, … the due and timeous
performance by Climealine
of all the Guaranteed Obligations.’
Further reference was made to clause 5.2, which reinforced the
independent nature of
the respondents’ obligations under the
guarantee, and it was submitted that textually, there is only one
plausible interpretation,
namely that the respondents’
liability under the guarantee is separate from that of Climealine.
[30]
Turning to purpose, reference was made to clause
2.2 which recorded that the applicant requires a guarantee and
security for the
due and punctual performance and discharge by
Climealine of all the Guaranteed obligations, and it was submitted
that the applicant
could have required a suretyship but deliberately
chose to require a guarantee.
[31]
As to what triggers the respondents’
liability under the guarantee, reference was made to clause 5.10
which states that:
‘
Upon
receipt by the Guarantors[respondents], or any of them, of any
written notice from the Seller [applicant] stating that any
amount is
payable by the Guarantors[respondents], or any of them, or that the
Guarantors, or any of them, are obligated to perform
any obligation
to the Seller, in terms of this Guarantee, the Guarantors, jointly
and severally, shall, notwithstanding that the
Guarantors, or any of
them, may dispute that liability to make such payment immediately
perform such obligation or pay the amount
stipulated in the notice…
’
[32]
Clause 5.10, it was argued, clearly shows that the
respondents’ obligation to pay comes from the written notice by
the applicant
demanding payment, and that the respondents cannot
withhold payment due to their dispute over liability. Once they
receive a written
notice from the applicant demanding payment, all
the respondents can do is pay.
[33]
Based on the argument that the guarantee creates
independent obligations, it was argued that the
lis
pendens alibi
defences relied upon by
the respondents are not available to them. It was further asserted
that the cause of action in the cancellation
and declaratory actions
is different because they are based on the SPA, whereas the cause of
action in the current application
is solely based on the guarantee.
It was also argued that there is no commonality of parties involved
between this application
and the cancellation and declaratory
actions, as the respondents are not parties to the latter
proceedings.
[34]
Finally, based on all the above, it was argued
that the respondents’ liability has been established based on
their failure
to pay despite receipt of a notice contemplated in
clause 5.10 of the guarantee.
[35]
The respondents started their argument by
referencing the disputes between Climealine and the applicant
concerning the SPA and the
fact that Climealine has cancelled the
SPA. The argument then continued that the cancellation of the SPA by
Climealine has extinguished
the Guaranteed Obligations as defined in
the guarantee, which means the respondents' liability does not arise.
[36]
The follow-up argument was that it would be
plainly absurd for the applicant to be entitled to recover the amount
claimed in this
application on one side, while simultaneously
possessing the shares and the loan account on the other. If this were
the case, the
respondents argued that such an interpretation would
imply that the applicant has the right to demand the fulfilment of
guaranteed
obligations that no longer exist.
[37]
The respondents criticised the interpretation
advanced by the applicant as one that is limited to the text of
selected passages
without considering the purpose of the guarantee as
stated in the answering affidavit, which is that, ‘The purpose
of the
guarantee is obviously to provide for the respondents to be
liable for Climealine’s debts in terms of the share sale
agreement,
only if, of course, Climealine is liable in the first
place.’
[38]
It was further argued that the interpretation
advanced by the applicant fails to take into account the
interconnected nature of
the SPA and the guarantee, which is so
fundamental that the conclusion of the one is a condition precedent
to the enforceability
of the other, and the fact that Climealine is
also a party to the guarantee.
[39]
Reference was also made to the recital in clause 2
of the guarantee (particularly subclauses 2.1, 2.2, and 2.3), as well
as clauses
5.1.2 and 5.1.3, to support the argument that; (a) the
purpose and reason for the existence of the guarantee are outlined in
clause
2, (b) the respondents committed themselves as co-principal
debtors
in
solidum
with Climealine for the timely and full payment of
any amount Climealine owes to the applicant under the SPA (5.1.2),
and (c) the
fact that the respondents are liable for any loss or
expense that the applicant ‘may suffer or incur with a breach
of the
Guaranteed Obligations (5.1.2).’
[40]
The respondents’ response to the applicant’s
interpretation of clause 5.2 was that there is a difference between
the
invalidity or unenforceability of the Guaranteed Obligations and
the fact that the guaranteed obligations have ceased to exist.
In
this case, it was contended that the guaranteed obligations have
ceased to exist, and therefore, the respondents’ liability
cannot arise.
[41]
Regarding the applicant’s interpretation of
clauses 5.1.1 and 5.1.2 that these clauses create independent
obligations, it
was submitted that these clauses are not reconcilable
with instances where the respondents’ obligation in the
guarantee is
described as that of co-principal debtors.
[42]
Reliance was also placed in clause 5.4 of the
guarantee in support of the argument that the guarantee has become
unenforceable upon
the unconditional discharge of the guaranteed
obligations.
[43]
As an alternative argument, it was claimed that
the guarantee is invalid for being vague because co-principal debtors
are responsible
for the same debt. In this case, this means the
respondents would be responsible for Climealine’s debts. The
argument is
that the guarantee, on one hand, refers to independent
obligations, and on the other hand, mentions co-principal debtors,
and that
these two are incompatible.
[44]
The
principles for interpreting documents are well-known and need not be
restated. ‘It is the process of attributing meaning
to words
used in a … contract, having regard to the context provided by
reading the particular provision or provisions in
the light of the
document as a whole … giving consideration to the language
used … the context in which the provision
appears and the
apparent purpose to which it is directed.’
[1]
[45]
Since this application concerns the respondents'
liability under the guarantee, I find it useful to start with the
analysis of clause
5.10, which was identified as the trigger for the
respondents’ liability. This clause requires the respondents to
pay ‘upon
receipt of any written notice from the applicant
stating that any amount is payable.’ It also states that the
respondents’
liability to pay shall be joint and several, and
that the obligation to pay shall be ‘notwithstanding that the
respondents
… may dispute their liability to make such payment
immediately.’
[46]
The text clearly indicates that the respondents’
obligation to pay is triggered when the applicant provides written
notice
demanding payment of any amount the applicant claims is owed.
The fact that the respondents are now disputing their liability is
also addressed by clause 5.10, which states that the respondents’
obligation to pay remains despite any dispute over their
liability to
do so.
[47]
The respondents, however, have avoided addressing
this provision, which is crucial to resolving this matter. What is
more, clause
5.10 aligns with clause 5.2 which makes it clear that
the respondents’ obligations under the guarantee are principal
and
independent obligations. The process of interpretation requires
meaning to be given to all the words used in a document and to
interpret the guarantee as not imposing independent obligations would
offend against that principle.
[48]
The purpose of the guarantee, as stated by the
respondents, is not supported by the text and, if anything, it
contradicts the plain
meaning of the words used in the guarantee. The
guarantee nowhere makes the respondents’ obligation conditional
on Climealine’s
obligations, except for one instance—fulfilment
of conditions precedent. Once the conditions precedent are fulfilled,
and
it is undisputed between the parties that they were fulfilled,
all that is needed to establish the respondents’ liability
is a
written notice stating that any amount is owed.
[49]
To the extent that the respondents argued that
their obligations have been unconditionally discharged as
contemplated in 5.4 of
the guarantee, that is merely disputing their
liability, which they cannot use to avoid liability under clause
5.10.
[50]
To the extent that the respondents argued that the
use of the term co-principal debtor in one or some of the clauses
indicates an
intention to make the respondents’ liability
subject to Climealine’s liability, it was submitted on behalf
of the applicant
that the use of the phrase co-principal debtors and
liability
in solidum
adds
nothing and does not in itself, in the context of suretyships, make
them co-principal debtors.
[51]
Reference
was made to an extract from Caney’s The Law of Surety
[2]
,
where the author states that ‘the undertaking of the obligation
expressly in those terms adds nothing and does not in itself
make the
sureties co-principal debtors; if this is intended, appropriate
additional wording must be used. The argument then was
that, given
the absence of the additional words used, it does not follow that the
intention was to make the respondents liable
for the same obligations
as Climealine.
[52]
There is merit in this argument. The reference to
the respondents as paras 5.1.2 as binding themselves as co-principal
debtors
in solidum
with
Climealine, cannot without more, result in the respondents’
obligations being the same as those of Climealine.
[53]
The respondent's defences regarding the dispute
over Climealine’s liability are unhelpful. This also includes
the
lis pendens alibi
defences. In the absence of fraud, the respondents
cannot avoid payment once the applicant serves them with a written
demand stating
that any amount is owed. This, the applicant has done,
and it follows that the applicant is entitled to judgment.
[54]
The applicant has been successful and is entitled
to costs. The guarantee provides for costs to be payable on the scale
between
attorney and client, and that scale shall be applied
accordingly.
Conclusion
[55]
The application to strike out is baseless because
no new matter was introduced in reply. The same applies to the
request for an
additional set of papers. Both are accordingly
refused.
[56]
The guarantee creates independent obligations
based on the respondents’ liability, which arises from a
written demand by the
applicant stating that the respondents owe an
amount. The dispute related to the SPA cannot serve as a defence to
the applicant’s
claim based on the written demand. This
includes the pending cancellation and declaratory actions. The
application therefore succeeds
with costs.
Order
[57]
As a result, the following order shall issue:
(a)
The respondents are ordered to make the following
payment to the applicant, jointly and severally, with the one paying
the others
to be absolved:
i.
The sum of R8 376 045 (Eight Million
Three Hundred and Seventy-Six Thousand and Forty-Five Rand);
ii.
Interest on the amount referred to in 1 above
calculated at the rate of 11.75% per annum, from 5 August 2024, until
the final date
of payment, both days inclusive; and
iii.
Costs of the application on an attorney-and-client
scale, including costs of two counsel where so employed.
LG NUKU
JUDGE
OF THE HIGH COURT
Appearances
For applicant:
J Vorster SC with WJ Botha
Instructed by:
Herman Vermaak Attorneys, Pretoria
C/O:
Hayes
Inc, Cape Town
For respondents: HA Van
Der Merwe
Instructed by:
Senekal, Simmonds Inc, Bedfordview
C/O:
State
Attorney, Cape Town.
[1]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012
(4) SA 593
(SCA) at para 18.
[2]
Forsyth
CF and Pretorius JT
Caney’s
The Law of Surety
6
ed (2010) at 57.
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