Case Law[2025] ZAKZDHC 41South Africa
Voltex (Pty) Ltd v Venkatas and Others (D8229/2024) [2025] ZAKZDHC 41 (9 July 2025)
Headnotes
confidential knowledge of its customer and supplier base in a niche market and that they had admitted an intention to approach such customers following their resignation. The applicant also asserts that the mere potential for misuse of this information justifies the restraint. The respondents, for their part, deny any unlawful conduct,
Judgment
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# South Africa: Kwazulu-Natal High Court, Durban
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## Voltex (Pty) Ltd v Venkatas and Others (D8229/2024) [2025] ZAKZDHC 41 (9 July 2025)
Voltex (Pty) Ltd v Venkatas and Others (D8229/2024) [2025] ZAKZDHC 41 (9 July 2025)
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sino date 9 July 2025
IN THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL LOCAL DIVISION, DURBAN
Case
no:
D
8229/2024
In
the
matter
between:
VOLTEX
(PTY) LTD
���������������������������������������������������������������������������������������������
Applicant
and
VERNON
VENKATAS
����������������������� �������������������������������������������� First
Respondent
NITHIANADHAN
MOODLEY
������ ����� ���������������������������������� �����
Second
Respondent
MV
TRANSMISSION AND DISTRIBUTION (PTY) LTD
�����������������Third Respondent
ORDER
Having
read the papers and after hearing counsel, the following order is made:
1.
Condonation
for the late filing of the applicant�s replying affidavit is granted.
2.
The
rule
nisi issued on 22 July 2024 is discharged.
3.
The respondents
are to pay the applicant�s costs of the application including the costs of
senior and junior counsel where so employed
on scale B.
JUDGMENT
Date delivered: 9 July 2025
Masipa
J
Introduction
[1]����� This
is an application by the applicant for the confirmation of a rule nisi granted
on 22 July 2024, which sought to enforce
a restraint of trade and related
relief against the respondents, pending the outcome of final proceedings. The
application was
unopposed when initially enrolled, and the rule nisi was
granted interdicting and restraining the first and second respondents from
competing with its business, soliciting its customers, or making use of its
confidential information for a period of eight months,
ending on 31 March 2025.
[2]����� Opposition
followed some months later, but the matter was not finalised before the expiry
of the restraint period. There
is also an issue of the applicant filing it
replying affidavit out of time with a condonation application. Nothing much
turns of
this and condonation is granted.
[3������ At
the time of the present hearing, the restraint period had lapsed, and the
relief sought in respect of the merits had
become moot. Despite the period of
restraint having now lapsed, the applicant nonetheless persists in seeking
confirmation of the
rule nisi. Its position is that it remains entitled to such
confirmation for purposes of costs and the vindication of its rights.
Background
[4]����� The
first and second respondents were employed in the applicant�s transmission and distribution
division. Before resigning,
they established the third respondent together with
their spouses for the purpose of competing in the same niche industry. The applicant
brought this application on an urgent basis to protect its interests, asserting
that the respondents were in breach of restraint
and confidentiality
undertakings.
[5]����� The
applicant contends that the respondents held confidential knowledge of its
customer and supplier base in a niche market
and that they had admitted an
intention to approach such customers following their resignation. The applicant
also asserts that
the mere potential for misuse of this information justifies
the restraint. The respondents, for their part, deny any unlawful conduct,
assert that the knowledge they held was either general industry knowledge or
obtained prior to their employment with the applicant,
and describe the
application as punitive and abusive.
[6]����� It
is apparent that there are material disputes of fact regarding the nature and
extent of any confidential information,
and the protectability thereof. These
disputes would not have been capable of resolution on the papers and would have
necessitated
referral to oral evidence had the matter not become moot.
Mootness
[7]����� It
is trite that courts do not determine academic questions or grant orders where
no practical effect will result. A matter
that is moot falls outside the
jurisdiction of the court unless the interests of justice demand otherwise.
This principle has been
repeatedly affirmed, most notably in
JT Publishing
(Pty) Ltd and Another v Minister of Safety and Security and Others.
[1]
In applications of
this nature, mootness does not deprive the court of jurisdiction, but it may
affect the justiciability of the
matter. Accordingly, an application that will
have no practical effect or result, may be dismissed on that ground alone.
[8]����� In
President of the Republic of South Africa v Democratic Alliance and Others
[2]
and
reiterated in
Women in Capital Growth (Pty) Ltd and Another v Scott and
Others
,
[3]
the courts affirmed that moot matters should only be determined where the
interests of justice so require, including where a judgment
will have a
precedential effect or address a recurring legal issue. In this matter, no
declaratory relief is sought, and the applicant
did not argue that a live
controversy persists. The order sought was linked directly to a time-bound
restraint period which has
since expired. The confirmation of the rule nisi
would therefore serve no enforceable purpose. Accordingly, the merits of the matter
are no longer justiciable. A
lthough the merits have fallen away, the
issue of who should bear the costs of the urgent application remains a live
controversy.
Costs
[9]����� The
crux of this judgment lies in the appropriate treatment of costs in motion
proceedings. Thus, the discretion to determine
costs must be exercised afresh by
this court, applying the usual principles applicable to motion proceedings
where no order on
the merits is granted.
[10]��� The
general rule is that costs follow the result. However, where the application
becomes moot before final determination,
the court must consider the parties�
conduct, the reasonableness of the litigation, and whether the applicant acted
oppressively
or the respondents unreasonably withheld consent.
[11]��� The
applicant launched the proceedings in this matter and obtained interim relief.
It thereafter persisted with the matter
even when it became apparent that the
restraint period would expire before the hearing. It made overtures to the respondents�
attorneys
offering to resolve the issue of costs. These were declined. There is
evidence that the applicant delayed in filing its replying
affidavit, which may
have contributed to the lapse of the relief. However, the respondents� stance asserting
that they were free
to approach the applicant�s clients and denying any
enforceable confidentiality demonstrates a serious dispute which would have
required adjudication, but for the effluxion of time.
[12]��� It is not in dispute that the applicant
was entitled to the interim relief at the time that it was granted. The respondents
conduct therefore necessitated the application and the incurring of costs by
the applicant. The fact that the matter was rendered
moot by the respondents�
subsequent compliance does not entitle the respondents to escape the costs
consequences of their earlier
conduct.
[13]��� The
respondents�
allegation that the application was motivated by malice and intended to
suppress competition is not supported by the
evidence on record. They argue
that, given the expiry of the restraint period, the applicant ought to have
withdrawn the application
and sought recovery of costs in terms of Uniform Rule
41. In my view, this was unnecessary. The matter was already pending before
the
court, and all the relevant facts required for a determination on costs were
properly before it.
[14]��� Importantly,
the main relief became moot through the passage of time and procedural delay,
not because the relief was abandoned
or withdrawn. The applicant had on the
face of it, a legitimate basis for seeking protection of its commercial
interests, and it
was not unreasonable for it to institute the application.
However, by the time the matter was heard, there was no longer a practical
or
legal basis for granting the relief save for the determination of costs which
remained a live issue.
Order
[15]��� In
the result, I make the following order:
1.
Condonation
for the late filing of the applicant�s replying affidavit is granted.
2.
The
rule
nisi issued on 22 July 2024 is discharged. �
3.
The
respondents are to pay the applicant�s costs of the application including the
costs of senior and junior counsel where so employed
on scale B.
Masipa J
DETAILS OF THE HEARING
Matter
heard on:������������������������� 11 June 2025� ��������������������������� �
Judgment Date:������������������������� 9
July 2025
Appearance Details:
For the applicant: ���������������������� Mr
E Misrachi
Instructed by: ���������������������������� Orelowitz
Inc Attorneys
For the respondents: ����������������� Mr�
N Riley
Instructed by: ���������������������������� S
T Attorneys
[1]
JT Publishing (Pty) Ltd and Another v Minister of Safety
and Security and Others
1997
(3) SA 514 (CC).
[2]
President of the Republic of South Africa v Democratic Alliance
and Others
2020 (1) SA 428 (CC).
[3]
Women in Capital Growth (Pty) Ltd and Another v Scott and
Others
[2020] ZASCA 95.
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