Case Law[2022] ZAKZDHC 46South Africa
Elgin Brown & Hamper Proprietary Limited v Sheriff and/or Duly Appointed Deputy, of the High Court: Durban Coastal and Others (A24/2022) [2022] ZAKZDHC 46 (27 October 2022)
High Court of South Africa (KwaZulu-Natal Division, Durban)
27 October 2022
Headnotes
on 10 May 2022 under CCMA Case Number KNDB7777/2021 is declared void and invalid, and set aside. 2. It is declared that the applicant is not liable for any wasted costs which may have been incurred in respect of the said sale.
Judgment
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## Elgin Brown & Hamper Proprietary Limited v Sheriff and/or Duly Appointed Deputy, of the High Court: Durban Coastal and Others (A24/2022) [2022] ZAKZDHC 46 (27 October 2022)
Elgin Brown & Hamper Proprietary Limited v Sheriff and/or Duly Appointed Deputy, of the High Court: Durban Coastal and Others (A24/2022) [2022] ZAKZDHC 46 (27 October 2022)
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sino date 27 October 2022
IN
THE HIGH COURT OF SOUTH AFRICA
KWAZULU-NATAL
LOCAL DIVISION, DURBAN
(EXERCISING
ITS ADMIRALTY JURISDICTION)
CASE
NO: A24/2022
REPORTABLE
In
the matter between:
ELGIN
BROWN & HAMER PROPRIETARY LIMITED
APPLICANT
and
THE
SHERIFF and/or DULY APPOINTED DEPUTY,
OF
THE HIGH COURT: DURBAN COASTAL FIRST
RESPONDENT
NEETASH
BRIJLAL SECOND
RESPONDENT
FURNACE
FABRICA SA PROPRIETARY LIMITED THIRD
RESPONDENT
SANDOCK
AUSTRAL SHIPYARDS (PTY) LTD FOURTH
RESPONDENT
ORDER
The
following order is granted: -
1.
The
sale in execution of the floating crane: Imvubu held on 10 May 2022
under CCMA Case Number KNDB7777/2021 is declared void and
invalid,
and set aside.
2.
It
is declared that the applicant is not liable for any wasted costs
which may have been incurred in respect of the said sale.
3.
The
third respondent is directed forthwith to restore the said floating
crane: Imvubu to the possession of the applicant.
4.
The
costs of this application shall be paid by the second and third
respondents, jointly and severally, the one paying the other
to be
absolved.
JUDGMENT
OLSEN
J
[1]
This application comes before the court exercising its admiralty
jurisdiction because
it involves,
inter alia
, a claim to
possession of a floating crane, a “ship” as defined in
the Admiralty Jurisdiction Regulation Act, 105 of
1983. The
applicant is or was the owner of the floating crane: Imvubu which was
sold in execution on 10 May 2022. The
first respondent is the
Sheriff under whose office the sale was conducted.
[2]
The second respondent was formerly an employee of the applicant.
He obtained
a “default award” against the applicant
from the CCMA for payment of an amount of R658 862.83. The
sale in execution of the Imvubu was at the instance of the second
respondent for recovery of the amount of the award.
[3]
The third respondent bought the Imvubu at the sale. After the
sale it was removed
to the quay abutting premises leased by the
fourth respondent. The fourth respondent has taken no part in
these proceedings.
[4]
The application was launched as an urgent one. The urgent
relief was aimed principally
at preventing the release to the second
respondent of the proceeds of the sale, and preventing the first
respondent from taking
any steps to register transfer of ownership of
the Imvubu to the third respondent. Urgent relief was also
sought to interdict
the third and fourth respondents from dealing in
any way with the floating crane. I was informed from the bar
that undertakings
with regard to the interim relief had been given
pending the determination of the application.
[5]
The principal relief sought was an order setting aside the sale in
execution.
Consequential orders were also sought, that
the purchase price should be repaid to the third respondent, that the
second respondent
pay the wasted costs incurred by the first
respondent in connection with the sale, and that the vessel be
returned to the possession
of the applicant.
[6]
Under the heading “Background Information”, the founding
affidavit described
how the applicant had got into difficulty as
regards its liquidity as a result of the Covid-19 pandemic and the
consequent global
lockdown. It had found it necessary to make an
offer of compromise to creditors, the details of which were
apparently regarded
as unnecessary for the purposes of the present
application. The affidavit asserted that the second respondent
had agreed
to participate in a distribution under the terms of the
compromise. Notwithstanding this the Imvubu was attached on or
about
4 March 2022 as a result of which Mr Mthethwa, the deponent to
the applicant’s affidavits and its managing director, contacted
the second respondent to confirm that he was participating in the
compromise and would not be proceeding with the execution process
upon which he had embarked. According to Mr Mthethwa the second
respondent said that he would instruct his attorneys to withdraw
the
attachment. The second respondent denies that any such
undertaking was given by him or that his claim under the award
from
the CCMA was submitted to participate in the compromise. To the
extent that the relief sought by the applicant rests
upon these
exchanges, it cannot be granted. The disputes of fact in
connection with the issue are material and cannot be
resolved without
oral evidence.
[7]
Nevertheless, according to Mr Mthethwa it came as something of a
surprise to the applicant
to learn that a sale in execution had taken
place on 10 May 2022, and that the Imvubu had been sold for
approximately R800 000,
a price considerably below the value of
the vessel, and also below the price at which the applicant had
earlier sold the vessel
to a third party. Mr Mthethwa had not
seen any advertisement of the sale and he states that he would have
applied to interdict
the sale if he had received prior notice that it
was due to take place, upon the basis that the second respondent had
bound himself
to participate in the compromise.
[8]
In the founding affidavit it is contended that during the night of 11
May 2022 or
the early morning of 12 May 2022 “someone unknown
to the applicant came by vessel to the applicant’s premises and
towed
away the floating crane. This was done without the
applicant’s knowledge and was only established by the applicant
on 12 May 2022”. It is asserted that at the time the
applicant was in peaceful and undisturbed possession of the Imvubu
and that the applicant was entitled to spoliatory relief, in the way
of the immediate return of the vessel.
[9]
This claim to spoliatory relief is hotly contested on the papers.
There are
substantial material disputes of fact. In short the
third respondent asserts that the vessel was removed to the quay
adjacent
to the fourth respondent’s premises openly and with
the knowledge of the applicant’s employees and the authority of
the first respondent. I do not propose to furnish an account of
these factual disputes in this judgment. When the topic
of
spoliatory relief arose in argument I understood counsel for the
applicant to accept the proposition that, unfortunately
for the
applicant, success on the basis of spoliation could only be achieved
upon a resolution of the relevant factual disputes
favourable to the
applicant, something which could not be achieved on paper.
Counsel did not address me on the subject of
how it might be possible
to resolve those material disputes without going to oral evidence.
[10]
I should deal at this stage with another contention of the applicant,
raised to address the contingency
that its attack upon the validity
of the process of execution (a subject to which I must still turn) is
unsuccessful. It
is a claim which rests upon the proposition
that the third respondent cannot assert that the sale, and
consequently its right to
possession of the Imvubu, is unimpeachable
in terms of
s 70
of the
Magistrates’ Courts Act, 32 of 1944
,
until and unless the third respondent has acquired ownership of the
vessel. The Imvubu is a vessel registered in terms of the
Ship
Registration Act, 58 of 1998
. The applicant contends that
ownership of a registered vessel can only pass by following the
procedures with regard to registration
set out in the
Ship
Registration Act, something
that has not been done.
[11]
Putting aside the fact that, in the case of movable property such as
the vessel, the operation
of
s 70
turns on delivery, and not on
transfer of ownership, in my view the applicant’s reliance on
the
Ship Registration Act is
misplaced.
Section 31(7)
of that
Act is to the effect that the transfer of a share in a ship is
governed by Schedule 1 to the Act. Schedule 1 is headed
“Private Law Provisions for Registered Ships”. Item
3 of Schedule 1 is to the effect that a ship or a share in
a ship is
transferred by registration of a bill of sale made in the prescribed
form. That is what the applicant says has
not happened.
But the provisions of Item 3 are expressed to be “subject to
item 4”. Item 4(1) of the Schedule
reads as follows.
‘
Where
any interest in a ship or a share in a ship is transmitted to a
person by any lawful means other than by a transfer in terms
of item
3 and the ship continues to be entitled to be registered, that person
must make a declaration of transmission in the prescribed
form and
must lodge that declaration, together with the evidence of the
transmission that may be prescribed, with the Registrar
within 14
days of that transmission taking place or within the further period
that the Registrar may allow in special circumstances.’
Item
4(2) is to the effect that subject to other considerations not
relevant hereto, the Registrar must “thereupon enter in
the
Register the name of that person as owner of the ship or share.”
[12]
The “transmission” of the vessel Imvubu to the third
respondent was, subject to the
validity of the sale in execution,
achieved by “lawful means”. If the sale was valid
the third respondent acquired
ownership of the vessel and is entitled
to secure the registration of its rights as owner. This understanding
of Schedule 1 accords
with the view expressed by G Hofmeyr, Admiralty
Jurisdiction Law and Practice in South Africa 2 ed (2012) Note 38 at
26 - 27, that
“while registration in a ship’s register
constitutes acceptable evidence of ownership, registration is not
conclusive
proof of ownership”. (See also the two judgments
referred to in that note.)
[13]
I turn then to the applicant’s attack upon the process of
execution as the basis for an
order that the sale in execution should
be set aside.
[14]
Section 143(5)
of the
Labour Relations Act, 66 of 1995
is to the
effect that
‘
an
arbitration award in terms of which a party is required to pay an
amount of money must be treated for the purpose of enforcing
or
executing that award as if it were an order of the Magistrate’s
Court.’
The
applicant’s first line of attack is that the attachment of the
vessel made on 4 March 2022 was invalid because the first
respondent
had purported to exercise the power of attachment in execution not
under the
Magistrates’ Courts Act, but
“in accordance
with the provisions of the Supreme Court Act 59 of 1959, as
amended.” The words just quoted appear
on the notice of
attachment immediately below the upper portion of the document which
identifies the parties. However in
my view the applicant takes
too narrow a view of the document, which must be considered as a
whole. In this Division we are
still accustomed to receiving
returns of service with the endorsement just quoted above.
Nothing is made of it. Speaking
for myself I disregard it on
the assumption that the Sheriffs utilise software for the production
of returns which does not permit
them to alter certain portions of
the form. Of course here the incorrect form was used as,
presumably when the Sheriffs act
under the authority of the
Magistrates’ Courts, the inserted words reflect that fact.
Nevertheless, inserted across
the top of the notice of attachment are
the words “Commission for Conciliation, Mediation and
Arbitration, KwaZulu-Natal,
Durban”. Furthermore there is
reference in the notice of attachment to a requirement that security
in terms of Rule
38 must be furnished, and that is quite obviously a
reference to the Magistrates’ Courts Rules. I conclude
accordingly
that the first respondent was indeed acting in terms of
the provisions of the
Magistrates’ Courts Act and
Rules, as
required by
s 143(5)
of the
Labour Relations Act.
[15
]
Rule 41(19)(b) of the Magistrates’ Courts Rules requires that
the execution creditor shall,
after consultation with the Sheriff,
prepare a notice of sale. Two copies of it are to be given to
the Sheriff in sufficient
time to allow of one being affixed not
later than 10 days before the sale at the appropriate place at court,
and the other at or
as near as may be to the place where the sale is
going to take place. Prior to the commencement of this
application the applicant
obtained a copy of the notice of sale,
presumably from the office of the first respondent. The notice
was to the effect that
the Imvubu would be sold in execution on
Tuesday, 10 May 2022 “at 12h00 or so soon thereafter” at
“Lower Bremen
Road, Bayhead, Durban, 4057”. The
notice refers to the
Consumer Protection Act, 68 of 2008
and
evidences some attempt at compliance with the provisions of that Act
and Regulations thereunder applicable to auction sales.
[16]
Rule 41(19)(c) of the Magistrates’ Courts Rules requires the
Sheriff, when the value of
the goods exceeds the monetary
jurisdiction of the Small Claims Court, to instruct the execution
creditor to publish the notice
of sale in a newspaper circulating in
the district “not later than 10 days before the date appointed
for the sale”.
(In the notice of attachment the first
respondent recorded the value of the Imvubu as R2 million.) The
rule also requires
the execution creditor to furnish the Sheriff with
a copy of the edition of the paper in which the publication
appeared not
later than the day preceding the date of sale.
[17]
When the founding papers were drawn the applicant had still not
ascertained whether and when
the sale had been advertised. The
first respondent had supplied the applicant with a copy of a page of
a newspaper published
on 5 May 2022 but the page did not reflect the
advertisement. Each of the second and third respondents, in
their respective
answering affidavits, put up copies of the newspaper
advertisement which reproduced the notice of sale. But neither
of the
copies reflected the date of publication of the
advertisement. However the date of publication was volunteered
by the deponent
to the third respondent’s answering affidavit.
It was 28 April 2022. That date is seven days before the date
appointed for the sale (10 May 2022). Compliance with Rule
41(19)(c) of the Magistrates’ Courts Rules was not achieved.
[18]
The fact that publication on 28 April 2022 breached the rules was
overlooked when the applicant’s
replying affidavit was drawn.
When I drew attention to this problem in argument I suggested to
counsel that it was not possible,
when the issue was whether the sale
had been conducted in accordance with law, simply to ignore the fact
that the rules were not
complied with as set out above, that being
perfectly obvious given the undisputed facts. That proposition
was not contradicted
by counsel and I took it to be accepted.
(See:
CUSA
v Tao Ying Metal Industries and Others
[2008] ZACC 15
;
2009 (2)
SA 204
(CC) and
Matatiele
Municipality and Others v President of the RSA and Others
2006 (5)
SA 47
(CC).
[19]
In
Sowden
v ABSA Bank Ltd and Others
1996 (3)
SA 814
(W) Heher J had to consider the effect of an advertisement for
a sale in execution under the Uniform rules being one day late.
The judgment debtor sought to have the sale set aside. The
conclusion of Heher J is succinctly stated at 819F-G.
‘
The
object of affording two clear weeks to publicise and prepare for the
sale has not been achieved and neither the execution debtor
nor the
execution creditor has received the full benefit promised to him by
the Rule. The defect is fatal to the validity
of the sale.’
[20]
In
A
H Noorbhai Investments (Pty) Ltd and Others v New Republic Bank Ltd
1998 (2)
SA 575
(W) Schwartzman J had to consider a similar default, that is
to say an advertisement one day late. The learned Judge sought
to distinguish
Sowden’s
case
upon the basis that in that case there was no application to condone
non-compliance with the rule relating to advertising.
He put it
this way at 578D-E.
‘
To
the extent that Heher J sought to lay down an immutable rule I
believe that he was clearly wrong. This is because there
is
nothing in Rule 46 or elsewhere in the Rules that excludes a High
Court’s inherent power or its power in terms of Rule
27 to
condone a non-compliance with the Rule.’
I
am not sure that this finding by Schwartzman J, if it is correct,
should not be regarded as amounting to this: that the defect
is fatal
to the validity of the sale unless the court can be persuaded to
condone it.
[21]
I am not in this case called upon to answer the question as to
whether such a default in the
timing of an advertisement can be
condoned
ex
post facto
.
Subject only to that reservation, I am in respectful agreement with
the conclusion in
Sowden’s
case.
It appears to be consistent with the endorsement of the following
passage taken from Maxwell,
Interpretation
of Statutes
,
7 ed at 316, in
Messenger
of the Magistrate’s Court, Durban v Pillay
1952 (3)
SA 678
(A) at 683E-F.
‘
Where
powers are … granted with a direction that certain
regulations, formalities or conditions shall be complied with it
seems neither unjust nor inconvenient to exact a rigorous observance
of them as essential to the acquisition of the … authority
conferred, and it is therefore probable that such was the intention
of the Legislature.’
It
was also pointed out by Van Den Heever, JA that if the provisions of
the rule are regarded as peremptory, that is in harmony
with the
common law which regards advertisement as the “primary
formality in sales in execution”. (See 684E)
[22]
The applicant’s principal complaint concerning the manner in
which the sale was conducted
arises from the fact that the auction
did not take place at the advertised location. The applicant’s
premises are situated
at the waterside in a road called Bremen Road
which is accessed from the main arterial road in that area of the
harbour known as
Bayhead Road. The advertisement and the notice
of sale records the address of the proposed sale as at “Lower
Bremen
Road”. There is no such road. However the
applicant’s premises are at the end of Bremen Road (ie where it
stops before the water), and one supposes that in ordinary language
it might be regarded as the lower end of Bremen Road.
It seems
to me that this problem can be overlooked.
[23]
Mr Clement Chetty, the project manager of the third respondent who
attested to the latter’s
answering affidavit, described what
happened. He says that together with between three and five
other bidders and the first
respondent’s team he attended at
the advertised place for the conduct of the auction to discover that
the crane was no longer
there. It was found to have been moved
to a place which he described as between Eldock and Dormac dock at
the harbour.
He says that everyone then relocated to the
dockside where the floating crane was moored because the bidders
wished to inspect
the crane before the auction was held. He
described how some bidders went to the advertised site and had to
contact the first
respondent (presumably by telephone) who directed
them to where the floating crane was moored adjacent to Eldock.
The sale
was delayed to give time for these bidders to get to the
site.
[24]
The first respondent delivered a notice to abide. However when all
the other papers were in,
the first respondent decided to deliver
what he called an “explanatory affidavit” in which,
relying on the confirmatory
affidavit of a Ms Diane Naicker of his
office, he asserted that the auction had taken place in “neighbouring
premises”
“also at “Lower Bremen Road as
advertised”.
[25]
In replying to these two affidavits, which, especially in the case of
the first respondent, sought
to downplay the impact of the change of
venue, Mr Mthethwa (speaking for the applicant) produced an aerial
photograph of the area
taken from Google, showing the respective
positions of Bremen Road (and the advertised site for the auction)
and Eldock, together
with the different and unnamed road which gives
access to Eldock. This latter road is also accessed from
Bayhead Road.
Eldock is not a neighbour of the applicant’s
premises. There are three or four other premises or enterprises
between
the applicant’s premises and Eldock. Mr Mthethwa
stated that it would take some 20 minutes to walk from the
applicant’s
premises to Eldock.
[26]
It would have been open to any respondent who disputed Mr Mthethwa’s
analysis of the position
to put in an affidavit to deal with or
question the impact of the aerial photograph to which I have
referred. That was not
done. The aerial photograph
illustrates clearly that what Mr Mthethwa says about the respective
positions of the advertised
site for the auction, and the site at
which the auction took place, is correct.
[27]
In my view a change of venue of a sale in execution from the
advertised one is a gross violation
of the rules governing the
conduct of such a sale. It is implicit in Rule 41(19) that the
place at which the auction is to
be conducted must be reflected in
the notice of sale, and consequently in the advertisement for the
sale. It is expressly
stated in Regulation 20(1)(b)(ii) of the
regulations under the
Consumer Protection Act (applicable
in terms of
s 45
of that Act to sales in execution) that an advertisement should
provide sufficient information for a reasonable consumer to “be
able to find the place where the auction is to be held”. In my
view the change of venue would on its own justify an order
setting
aside the sale in execution as invalid.
[28]
The answer to this, according to the second and third respondents,
lies in
s 70
of the
Magistrates’ Courts Act. It
reads as
follows.
‘
A
sale in execution by the messenger shall not, in the case of movable
property after delivery thereof or in the case of immovable
property
after registration of transfer, be liable to be impeached as against
a purchaser in good faith and without notice of any
defect.’
[29]
In his argument counsel for the third respondent has referred to his
client as “an innocent
third party” and as an “arm’s
length purchaser” who purchased the crane in good faith and is
entitled to
the protection of
s 70.
There does not appear to be
anything in the papers which would contradict the proposition that
the third respondent was an
arm’s length purchaser. It
may safely be assumed, judging from Mr Chetty’s affidavit
delivered on behalf of the
third respondent, that the third
respondent had sight of the advertisement prior to the auction.
It is Mr Chetty who disclosed
when the advertisement was published,
and he said that he went to the advertised site in order to bid at
the sale. In my view the
answer to the third respondent’s
reliance on
s 70
of the
Magistrates’ Courts Act is
that we are
not dealing with a purchaser “without notice of any defect”.
The third respondent had notice of the
defect in the advertisement,
that it was published too late. In the case of that defect in
the proceedings it may be argued
that whilst Mr Chetty had knowledge
of the date of the advertisement, not being familiar with the rules
of court, he did not have
knowledge of the fact that the date in
question revealed non-compliance with the rules of court.
However the situation is
clearer in the case of the change of venue.
He, like any other bidder, having gone to the appointed place, and
then relocated
with the first respondent to the site at which the
auction was actually held, would not only have known that this change
undermined
the advertisement, but also that the change had the
potential to reduce competition if an intending bidder arrived at the
site
to find it unattended, and therefore assumed that the sale had
been cancelled. The third respondent might have argued
otherwise
if Mr Chetty was able to report that the first respondent
had left someone at the advertised site to redirect bidders, but that
was not done.
[30]
On that basis I conclude that the applicant is entitled to an order
setting aside the sale in
execution. In my view the outcome
would have been the same if I had not concluded that the third
respondent had notice of
the defects. Given the basis upon which I
decide the issue of notice of defects, I do not propose to deal with
the alternative
approach in detail. It concerns the proper
construction of
s 70
of the
Magistrates’ Courts Act, given
the
judgments delivered in the Supreme Court of Appeal in
Menqa
and Another v Markom and Others
2008 (2)
SA 120
(SCA). That case concerned a warrant of execution for
the attachment of a home (and a sale in execution following that)
issued
out of a magistrates’ court prior to the judgment of the
Constitutional Court in
Jaftha
v Schoeman and Others
;
Van
Rooyen v Stoltz and Others
[2004] ZACC 25
;
2005 (2)
SA 140
(CC). The court in
Menqa
held
that the order made in
Jaftha
for
the “reading-in” of words in
s 66(1)(a)
was
retrospective. The writ issued by the magistrates’ court
for the attachment of the home of the respondent in the
appeal was
issued without judicial oversight and was accordingly invalid.
It was argued on behalf of the appellant,
Menqa
,
that s 70 of the Act protected him, there being no suggestion that he
acted in bad faith or was aware of any defect at the time
of the sale
in execution. Van Heerden JA (with whom three of the other
Judges joined) was satisfied that the court
a
quo
was
correct in holding that “if one were to hold that the
provisions of s 70 of the Act rendered such a sale in execution
unimpeachable, this would indeed ‘defeat the whole purpose of
the Constitutional Court ruling in the
Jaftha
case’.”
(See para 21) The conclusion was accordingly that the sale in
execution could not be saved by s
70 of the Act.
[31]
Cloete JA wrote a concurring minority judgment, and was joined in
that by Scott JA who concurred
in both judgments. Cloete JA
agreed with the conclusion that
s 70
of the
Magistrates’ Courts
Act could
not be interpreted so as to negate the
Jaftha
decision.
However, he took the view that it was “desirable to analyse the
meaning of the section and provide a rational
basis for its
interpretation.” (Para 28) This he proceeded to do in
paragraphs 30 to 47 of the judgment.
[32]
As regards the common law, after a thorough analysis of it and after
dealing with the earlier
judgments on the impact and meaning of
s 70
of the
Magistrates’ Courts Act, the
learned Judge concluded at
paragraph 46 that
‘…
at
common law a sale in execution was void for want of compliance with
an essential formality, but that non-compliance with non-essential
formalities did not have this result; and that
s 70
should be
interpreted as being to the same effect, save that a sale in
execution in a magistrates’ court can be impugned
even for want
of non-essential formalities where the purchaser did not act in good
faith or had notice of the non-compliance.’
[33]
Cloete JA points out that there is no equivalent to
s 70
of the
Magistrates’ Courts Act to
be found in the High Court. (See
paragraph 42). I am satisfied that the defaults which I have
identified in the present case
are defaults concerning “essential
formalities”, and that they would in the High Court justify the
conclusion that
the sale in question here was invalid and void.
Given the pre-constitutional cases in which
s 70
has been treated as
near sacrosanct, of more importance in the current situation is the
proper construction of the provision in
the constitutional era. In
paragraph 47 of the judgment in
Menqa
Cloete
JA highlighted the principle flowing from s 39(2) of the
Constitution, that where a legislative provision can be interpreted
in a way which “places it within constitutional bounds”,
that is the meaning that should be ascribed to it. Cloete
JA
continued as follows.
‘
Following
this approach, s 70 should be interpreted as not protecting a “sale”
which is void for to do so would put
it in conflict with the basic
principle of legality (which requires public power to be properly
exercised in terms of a valid law
that authorises it) and s 25(1) of
the Constitution which provides that “no law may permit
arbitrary deprivation of property”.’
I
have not found any judgment which would bind me to a conclusion that
I cannot decide this case following the analysis of the correct
meaning of
s 70
of the
Magistrates’ Courts Act set
out by
Cloete JA in
Menqa
and
derived from the provisions of the Constitution to which the learned
Judge referred.
[34]
Turning to the relief sought, it strikes me that two elements of it
are questionable.
(a)
The
first of these is the prayer for an order that the first respondent’s
wasted costs associated with the sale in execution
should be paid by
the second respondent. In my view the order goes too far, as
the most the applicant is entitled to ask
for is an order declaring
that it is not responsible for the wasted costs in question. I
propose to grant that order.
The question as to whether the
first respondent has any claim against the second respondent for the
wasted costs is a matter between
those parties. I would merely
make the observation that as I understand Rule 41(19)(c) of the
Magistrates’ Courts Rules
the first respondent ought not to
have proceeded with the sale without first seeing a copy of the
edition of the newspaper in which
the advertisement was placed; and
by implication, should not have proceeded with the sale if he had
noted, as he ought to have
done, that the advertisement was not in
compliance with the rules.
(b)
The
applicant also asked for an order that the money paid by the third
respondent to the first respondent should be refunded.
A claim
for such a refund flows naturally from the order that the sale in
execution be set aside. I cannot conceive
of how the
first respondent could resist such a claim. But, nevertheless,
the claim lies with the third respondent.
If it is not paid,
the applicant would not have
locus
standi
to
sue for the enforcement of the claim.
Neither
the first respondent nor the third respondent has asked the court to
make any order with regard to any claims they have,
or may have, in
the event of the sale being set aside.
I
MAKE THE FOLLOWING ORDER.
1.
The
sale in execution of the floating crane: Imvubu held on 10 May 2022
under CCMA Case Number KNDB7777/2021 is declared void and
invalid,
and set aside.
2.
It
is declared that the applicant is not liable for any wasted costs
which may have been incurred in respect of the said sale.
3.
The
third respondent is directed forthwith to restore the said floating
crane: Imvubu to the possession of the applicant.
4.
The
costs of this application shall be paid by the second and third
respondents, jointly and severally, the one paying the other
to be
absolved.
OLSEN
J
APPEARANCES
Date
of Hearing:
Wednesday, 10 August 2022
Date
of Judgment :
Thursday, 27 October
2022
Applicant’s
Counsel:
Mr MB Pitman SC
Instructed
by:
Shepstone & Wylie
Applicant’s
Attorneys
24
Richefond Circle
Ridgeside
Office Park
Umhlanga
Rocks
Durban
(Ref:
JMVK/ELG127082.3)
(Tel:
031 – 575 7000)
(Email:
vonklemperer@wylie.co.za
)
For
Second Respondentl:
Mr
R
Maniklal
of:
Ravindra Maniklall & Co.
Second
Respondent’s Attorneys
Palm
Boulevard
Umhlanga
Ridge
Umhlanga
Rocks
Durban
(Ref.:
Mr Maniklall)
(Tel:
082 – 491 8843)
(Email:
rmcattorneys@gmail.com
)
Third
Respondent’s Counsel:
Mr
WN Shapiro SC
Instructed
by:
Maraj Inc.
Third
Respondent’s Attorneys
Suite
134, 1
st
Floor
Ridgeton
Towers
6
Aurora Drive
Umhlanga
Durban
(Ref.:
Mr Maharaj)
(Tel:
031 – 566 3850)
(Email:
law@marajinc.co.za
)
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