Case Law[2025] ZASCA 175South Africa
Showroom Centre (Pty) Ltd and Others v Ronald Kagan (573/2024) [2025] ZASCA 175 (21 November 2025)
Supreme Court of Appeal of South Africa
21 November 2025
Headnotes
Summary: Civil procedure – leave to appeal – reconsideration in terms of s 17(2)(f) of the Superior Courts Act 10 of 2013 of refusal of leave to appeal – whether a grave failure of justice would otherwise result or the administration of justice may be brought into disrepute – applicants applying for a stay of action because costs of previous litigation not paid – applicants also applying for upliftment of the bar – applicants not persisting with stay application save for the costs thereof – whether applicants have prospects of successfully appealing the exercise of the high court’s discretion refusing the costs of the stay application – whether applicants required to establish bona fide defence for bar to be uplifted.
Judgment
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## Showroom Centre (Pty) Ltd and Others v Ronald Kagan (573/2024) [2025] ZASCA 175 (21 November 2025)
Showroom Centre (Pty) Ltd and Others v Ronald Kagan (573/2024) [2025] ZASCA 175 (21 November 2025)
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sino date 21 November 2025
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Not
Reportable
Case
no: 573/2024
In
the matter between:
SHOWROOM
CENTRE (PTY)
LTD
FIRST APPLICANT
SIYATHEMBANA
PROJECT MANAGEMENT &
DEVELOPMENT
(PTY) LTD
SECOND APPLICANT
STEPHEN
ZAGEY
THIRD APPLICANT
and
RONALD
KAGAN
RESPONDENT
Neutral
citation:
Showroom Centre (Pty) Ltd and Others v
Ronald Kagan
(573/2024)
[2025] ZASCA 175
(21 November 2025)
Coram:
MOCUMIE, KATHREE-SETILOANE and KOEN JJA
Heard:
7 November 2025
Delivered:
21 November 2025
Summary:
Civil procedure –
leave to appeal – reconsideration in terms of s 17(2)(
f
)
of the
Superior Courts Act 10 of 2013
of refusal of leave to appeal –
whether a grave failure of justice would otherwise result or the
administration of justice
may be brought into disrepute –
applicants applying for a stay of action because costs of previous
litigation not paid –
applicants also applying for upliftment
of the bar – applicants not persisting with stay
application save for the costs
thereof – whether applicants
have prospects of successfully appealing the exercise of the high
court’s discretion refusing
the costs of the stay application –
whether applicants required to establish bona fide defence for bar to
be uplifted.
ORDER
On
application for reconsideration:
Referred in terms of
s
17(2)
(f)
,
for oral argument in terms of
s 17(2)(
d
)
of the
Superior Courts Act
10 of 2013:
1
The application for reconsideration is granted.
2
The application for leave to appeal is dismissed with costs.
JUDGMENT
Koen
JA (Mocumie and Kathree-Setiloane JJA concurring):
Introduction
[1]
This is an application, pursuant to the
provisions of
s 17(2)
(f)
of
the Superior Courts Act 10 of 2013 (the
Superior Courts Act),
for
the order of two justices of this Court,
who refused the applicants leave to appeal, to be reconsidered and,
if necessary varied
and referring the applicant’s application
for leave to appeal to oral argument in terms of
s 17(2)(
d
)
of the Act. The application for leave to appeal which was refused by
the two justices relates to two orders of the Gauteng Division
of the
High Court (the high court). The first order dismissed the
applicants’ claim for the costs of an application to stay
an
action instituted against them. The second order dismissed their
application to uplift the bar to them continuing with the action,
after they had become
ipso facto
barred because they elected not to file their plea at that stage.
[2]
The application raises three issues for
determination. They are: whether a grave failure of justice would
result or the administration
of justice may be brought into disrepute
if the order of the two justices is not reconsidered; whether leave
to appeal should have
been granted to appeal the high court’s
order which dismissed the applicants’ claim for the costs of
the application
to stay; and whether leave to appeal should have been
granted in respect of the high court’s refusal to uplift the
bar.
[3]
The applicants are Showroom Centre (Pty)
Ltd, Siyathembana Project Management and Development (Pty) Ltd, and
Mr Stephen Zagey. They
are the first, second, and third defendants
respectively in the action. The respondent, Mr Ronald Kagan, is the
plaintiff in the
action. The parties are referred to, as they are
designated in the action before the high court.
Background
[4]
The action in the high court is part of an
ongoing history of litigation between the parties. This litigation
arises from the advance
of R1 million by the plaintiff to the first
defendant, alternatively, the second defendant. An amount of R220 000
has been
repaid in respect of this advance and interest accrued
thereon. It is not in dispute that R1 million was advanced and
R220 000
was repaid to the plaintiff. In the action the
plaintiff seeks to recover the balance outstanding.
[5]
The plaintiff previously, during February
2019, instituted an action (the first action) against the first,
second, and third defendants
and another. The defendants successfully
excepted to the plaintiff’s particulars of claim and the
plaintiff was ordered to
pay the costs (the exception costs). An
unsuccessful attempt by the plaintiff thereafter to amend his
particulars of claim, resulted
in a further order for costs (the
amendment costs) being awarded against him. The plaintiff then
withdrew the first action and
tendered the costs thereof (the costs
of the first action).
[6]
During March 2021, the plaintiff
launched an application for the liquidation of the first defendant,
based on the same indebtedness.
Costs were incurred in respect of an
attempt by the plaintiff to have the answering affidavit struck out
(the strike-out costs).
After the answering affidavit was filed the
plaintiff, on 9 November 2021, withdrew the liquidation proceedings.
He tendered the
strike-out costs and the costs of the liquidation
proceedings (the liquidation application costs).
[7]
The plaintiff also launched an urgent
application to prevent the defendants from executing on his property.
The urgent application
was subsequently withdrawn and the plaintiff
tendered the costs thereof (the urgent application costs).
[8]
Bills of costs were taxed, and the
allocaturs were endorsed in respect of the exception costs and the
amendment costs on 4 May 2021
and 6 September 2021, respectively. The
defendants sought to execute on these twice: the first resulted in a
partial payment of
the outstanding costs; the second yielded nothing,
the plaintiff having allegedly advised the sheriff that he had no
assets and
no money on the premises.
[9]
On 17 November 2021, the plaintiff
instituted the action which came before the high court and has given
rise to the application
before this Court. The particulars of claim
in this action have not been included in the appeal record before
this Court.
[10]
The defendants’ founding affidavit in
the reconsideration application however narrates that the plaintiff
in the action alleges
that: the payment of the
R1 million in 2016
was a loan to the second defendant; the second defendant had
undertaken to repay this amount plus interest fixed
in an
amortization table; the first defendant would be entitled to accept
the benefits under the agreement; the plaintiff would
receive 5% of
the shares in the first defendant; the first defendant accepted the
benefits under the agreement and was substituted
for the second
defendant; and the first defendant made repayments to him from 7
February 2019 until 16 January 2020, leaving a
balance owing.
[11]
In the alternative, according to the
narration, the plaintiff is said to allege that he has a claim
against the second defendant
on the basis that the first defendant
did not accept the benefits under the 2016 loan, and the second
defendant remains liable
for the loan. In the further alternative,
the plaintiff claims against the third defendant personally, based on
an alleged fraudulent,
alternatively negligent, misrepresentation by
the third defendant that the second defendant had accepted and signed
the agreement,
and that the plaintiff was required to pay the capital
amount advanced into a designated bank account.
[12]
The defendants delivered a notice to defend
the action on 1 December 2021. Their plea was due on 27 January 2022.
They failed to
file their plea within the period prescribed by the
rules. On 13 April 2022, the plaintiff served a notice to plead
calling upon
the defendants to deliver their plea within five days,
failing which they would be
ipso facto
barred. The five days expired on 22 April 2022.
[13]
Instead of delivering their plea, the
defendants served an application on
21 April 2022 claiming
two-fold relief. They sought a stay of the action (the stay
application) until such time as the defendants
received payment of
all the costs which the plaintiff had been ordered, or had tendered,
to pay. At the time the application was
launched, only the bills of
costs in respect of the exception costs and the amendment costs had
been taxed. The two taxed bills
had not yet been paid in full. The
defendants maintain that the plaintiff had placed them under bar
before the taxing master could
tax the costs of the first action, the
strike out costs, the liquidation costs, and the urgent application
costs. They contend
that the plaintiff’s conduct in commencing
the action without paying the previous costs was vexatious and an
abuse of process.
[14]
Apart from seeking a stay of the action,
the defendants sought an order, which they anticipated would be
required, to uplift the
bar, following their failure to deliver a
plea. They asked that the time for delivering any pleadings or
notices in terms of the
rules of court be extended, and commence
running only from the date upon which all the costs and interest,
awarded and tendered,
even if at that stage not taxed, ‘are
paid to the defendants, as if the defendants had delivered their
notice of intention
to defend on such date’.
[15]
The defendants’ applications were
both opposed. Within approximately three weeks after the launch of
the stay application,
the defendants managed to tax three more bills.
The plaintiff paid what remained due in respect of the first two
bills that had
been taxed before the stay application was brought. He
also paid the three bills taxed after the application was launched.
[16]
Although the sixth bill of costs had not
been taxed, the defendants say they felt that they had to proceed
with the matter. This
was less than a month after the launch of the
stay application. They accordingly advised the plaintiff that: they
would no longer
seek a stay of the action; he need not file answering
papers to their application; he should pay the costs of the stay
application
up to that point; and he should agree to the upliftment
of the bar, extend the time periods for the defendants to take the
next
step, and proceed with the action.
[17]
On 24 May 2022, the plaintiff communicated
his refusal to accede to the defendants’ proposal, insisting
that the defendants
were under bar and that he could apply for
default judgment unless the court ordered otherwise. The defendants
contend that they
accordingly had no choice but to proceed with the
balance of their application: that is, for the costs relating to the
claimed
stay of the action; and for an order uplifting the bar and
extending the time for delivering further pleadings and notices.
While
awaiting a date for the hearing of the stay application, the
sixth bill of costs was apparently also taxed, and the amount
determined
to be due was paid.
The proceedings in the
high court
[18]
The high court identified three issues for
determination in the defendants’ application: (a) whether the
defendants were entitled
to the legal costs of the application for a
stay; (b) whether the defendants had made out a case for uplifting
the bar; and (c)
the adjudication of the plaintiff’s
application for default judgment, based on the defendants being
barred. It concluded
that: the plaintiff was not vexatious or abusing
the court process; the plaintiff was pursuing a genuine claim, but
his legal representatives
had not properly crafted the pleadings in
the previous court processes; the defendants were seeking, as part of
the stay application,
an upliftment of the bar and an extension of
time, based essentially on rule 27 of the Uniform Rules of Court; the
defendants had
to establish good cause for such an extension of time;
and they had failed to do so.
[19]
Specifically, the high court found that the
defendants had not explained the delay in bringing the stay
application and had not
set out a bona fide defence. It dismissed the
applications for the costs of the stay application, dismissed the
application to
uplift the bar with costs, and struck the application
for default judgment from the roll.
The defendants’
contentions
[20]
The defendants maintain that a stay
application has no prescriptive time period. It could therefore be
brought at any stage, and
they need not explain any delay. As regards
good cause and a bona fide defence, they maintain that their stay
application was essentially:
first, a pursuit of the right not to
incur the costs of litigation and to advance their defences until the
previous costs orders
had been paid in full; and second, that as
there is no exhaustive definition of ‘good cause’, it
would, in the interest
of justice, not be fair or appropriate to
force a defendant to deal with its defences in a stay application,
until the costs had
been paid.
[21]
They contend that a claim for staying the
action and not dealing with their defences until the costs were paid
should be flexible
enough to handle their circumstances in this case.
A court should be able, in retrospect, to review a stay application
and, insofar
as the defendants have made out a case for it, reverse
some, or all, of the steps taken against them, insofar as it is
appropriate
to do so.
Discussion
The application for
reconsideration
[22]
The application for leave to appeal against
the orders of the high court was placed before the two justices for
decision. The application
was decided in the absence of a replying
affidavit from defendants. The replying affidavit was, at that stage,
not yet due –
a fact not drawn to their attention. Deciding the
application for leave to appeal in the absence of the replying
affidavit may
result in a grave failure of justice or the
administration of justice brought into disrepute, where the replying
affidavit could
have resulted in the application for leave to appeal
being granted. Accordingly, the refusal of leave to appeal falls to
be reconsidered.
The issue for determination is whether, now that all
the affidavits relating to the application for leave to appeal to
this Court
have been placed before it, leave to appeal the orders of
the high court should be granted.
The stay
application
[23]
The
defendants’ appeal in respect of the stay lies solely against
the refusal by the high court to award the defendants the
costs of
that application. Apart from that, the appeal has no practical effect
or result, as the defendants did not persist with
the substantive
relief of seeking a stay of the action. In terms of s 16(2)
[1]
of
the
Superior Courts Act, when
, at the hearing of an appeal, the
issues are of such a nature that the decision sought will have no
practical effect or result,
the appeal may be dismissed on this
ground alone. Whether an appeal will have any practical effect or
result is to be determined
without reference to any consideration of
costs. The only issue, if leave to appeal was to be granted, would
relate to the costs
of the stay application. The proposed appeal
will, as contemplated by
s 16(2)
, have no practical effect.
[24]
But,
in any event, regardless of the provisions of
s 16(2)
, the defendants
have not established reasonable prospects of success on appeal. A
costs order is always within the discretion of
a court. It is a
narrow discretion, which is to be exercised judicially. It can only
be challenged on appeal on very narrow grounds,
such as that it was
exercised arbitrarily or capriciously, was influenced by wrong
principles, was affected by a misdirection on
the facts, or could not
reasonably have been reached by a court properly directing itself to
the relevant facts and principles.
[2]
An
appellate court will not interfere with the exercise of that
discretion unless there was a material misdirection by the lower
court.
[3]
The
defendants have not demonstrated that the high court’s
discretion suffered from any such shortcomings, or that another
court
will impugn the high court’s exercise of its discretion.
[25]
The
high court’s refusal of the costs cannot, in any event, be
faulted as the stay application lacked merit. Stay applications
are
not regulated by the Uniform Rules of Court. A stay of proceedings is
normally sought either as a remedy at common law or,
where
applicable, in terms of the provisions of the Vexatious Proceedings
Act 3 of 1956.
[4]
The
mere launching of a stay application does not automatically stay
proceedings. Proceedings are stayed only when ordered by a
court.
Whether proceedings should be stayed lies within the discretion of
the court.
[26]
In
Smit
v Venter
,
[5]
it
was
held
that the principles which underpin the intervention of the courts
where the costs of previous proceedings have remained unpaid,
are the
court’s inherent power to prevent vexatious litigation and to
prevent an abuse of the process of the court. The judgment
emphasized
that a court has a discretion, whether to stay proceedings because of
unpaid costs. The discretion, in the context of
that case, was
informed by: whether the party has been ordered to pay costs incurred
because of some abuse of the process of the
court; whether the party
has either deliberately or through carelessness occasioned
unnecessary costs; and whether that party has
contumaciously refused
to pay the costs awarded against him or is efficaciously withholding
payment.
[6]
This list is not
exhaustive.
[27]
The
court held further that the requisites for a stay of proceedings, on
the basis of non-payment of previously incurred costs,
requires that
the further proceedings cover substantially the same grounds as the
former proceedings, must be brought truthfully
and honestly, and that
there be a previous judgment in the applicant’s favour.
Moreover, the costs must have been taxed and
demanded, and the
non-payment must result from a wilful refusal by the debtor to make
such payment. This is necessary, as a stay
would impede a litigant’s
access to a court, guaranteed by s 34 of the Constitution.
[7]
There must be a balancing of rights. Although it is prima facie (on
the first impression) vexatious to bring defendants before
a court a
second time on the same or substantially the same causes of action,
without paying the costs of the prior litigation,
[8]
ultimately, whether a stay would be appropriate will depend on the
facts of each case.
[28]
A stay was never ordered in this case. The
defendants, in order to succeed with their claim for the costs of the
stay application,
would have to establish that they would probably
have succeeded in obtaining a stay order on the basis that proceeding
with the
action, solely while the costs quantified by the first two
taxed bills only had not yet been paid, was vexatious or that the
plaintiff
had otherwise abused the process. The further bills in
respect of the tendered costs that were not yet taxed, could not be
relied
upon by the defendants for a stay, because the extent of the
plaintiff’s liability, in respect of those bills, had not yet
been quantified when the stay application was launched.
[29]
The defendants have proceeded from the
premise that as long as any portion of the taxed costs remained
unpaid, that,
per se
(in itself), entitled them to a stay of the action. That approach
proceeds from a conceptually flawed premise. Unpaid costs, in
respect
of similar proceedings, only prima facie points to proceedings being
vexatious. The costs of previous proceedings, even
if substantially
similar, might remain unpaid for a variety of reasons. The fact that
the costs have remained unpaid, will not
inevitably result in a stay
of proceedings.
[30]
The application for a stay should
reasonably be preceded by a demand that if the unpaid costs that are
due are not paid, an application
for a stay of the proceedings shall
follow. No such demand was made. Insofar as it was contended that the
application for the stay
itself constituted such a demand, it is
significant that once the stay application was brought, the
outstanding costs were paid
in full within a reasonable period
thereafter. Constituting the stay application as the demand, is to
introduce an unnecessary
process and costs, which should not be
recoverable, as a letter of demand would have sufficed.
[31]
But, even if the plaintiff had properly
been placed in mora with regard to payment of the outstanding balance
of the taxed costs,
that also does not mean that the action was
vexatious or would have been stayed. The argument that the action was
vexatious because
it was simply a repeat of the first action, cannot
be determined with certainty. The particulars of claim in the action
have not
been included in the record placed before this Court. A
comparison of the causes of action pleaded in the two actions
therefore
cannot be undertaken. It was the responsibility of the
applicants to place before this Court whatever documents were
required to
persuade this Court that the stay application would have
been successful. They have not done so.
[32]
But, even assuming in favour of the
defendants that the proceedings were substantially similar, the
plaintiff explained his reasons
for withdrawing the first action, in
respect of which the taxed costs remained outstanding when the stay
application was launched.
He states that his previous attorneys and
counsel, who had prepared the pleadings in the first action, had not
done so properly.
On consideration of the particulars of claim
in the first action, that conclusion is not misplaced.
[33]
Due to the exception taken and the
resistance to the pleadings in the first action and the liquidation
application, the plaintiff
decided to start afresh with a new legal
team, at considerable expense. That was, in the circumstances, a
prudent and reasonable
course of conduct. He has paid all the
costs related thereto.
[34]
The
defendants also suggest that the plaintiff was deliberately
obstructive and sought to avoid payment of the outstanding costs,
by
untruthfully advising the sheriff that he had no money and no assets
on the property. This is disputed by the plaintiff. Being
the
respondent in the stay application, his version, in the event of a
material dispute, must prevail.
[9]
The
defendants’ accusation is not warranted.
[35]
The sheriff’s return purported to be
a
nulla bona
return. Such a return is dependent on whether the execution debtor
owns sufficient disposable property. Disposable property does
not
include bonded immovable property. The plaintiff’s version is
that not all the immovable property was owned by him only,
that the
property was mortgaged and therefore not disposable, and further,
that his bank accounts had been frozen. The defendants
have not, on
the accepted test, established that there was willfulness, consistent
only with the plaintiff proceeding vexatiously,
in instituting and
pursuing the action.
[36]
The stay application would not have
succeeded. The plaintiff’s conduct in paying the outstanding
taxed costs was not a capitulation
and concession that the stay
application was correctly brought. The defendants have not
established reasonable prospects of success
in appealing the high
court’s refusal of the costs of the stay application.
The application to
uplift the bar
[37]
Barring
a litigant from pleading is a unique remedy provided in terms of
rule 26 of the Uniform Rules of Court.
[10]
Lifting
a bar and extending the time periods for the filing of further
pleadings and notices, is regulated by rule 27. The defendants
rightly accepted that they would be required to apply for the bar to
be lifted, even if their stay application succeeded. They
would
otherwise not have asked for that relief.
[38]
Rule 27(1) provides:
‘
In
the absence of agreement between the parties, the court may upon
application on notice and on
good cause
shown, make an order extending or abridging any time prescribed by
these rules or by an order of court or fixed by an order extending
or
abridging any time for doing any act or taking any step in connection
with any proceedings of any nature whatsoever upon such
terms as to
it seems meet.’ (Emphasis added)
Good
cause requires a reasonable and acceptable explanation for the
default and that on the merits, the defendants have a bona fide
defence which prima facie carries some prospect of success.
[11]
[39]
As
regards an explanation for the delay in delivering their plea, the
high court referred to the following paragraph in
Ingosstrakh
v Global Aviation Investments (Pty) Ltd and Others
:
[12]
‘
With
regard to the explanation for the default, there are two periods of
default which Ingosstrakh must explain for its failure
to deliver its
plea. The first is before the notice of bar was served on it, and the
second relates to the period after the bar
was served . . .’
[40]
The high court correctly concluded that the
defendants had failed to proffer any explanation for not delivering
their plea during
the period ending 27 January 2022, when the plea
was due, until 13 April 2022, when the plea still had not been
delivered and the
notice of bar was served. During that period, the
defendants were not under bar, although a notice of bar could have
been filed
at any stage after 27 January 2022. Once the notice of bar
was filed and the defendants had not responded and became
ipso
facto
barred, they had to explain why
they had become barred and advance good cause to uplift the bar and
extend the time limits for
filing a plea. Central to that enquiry is
whether they have a bona fide defence.
[41]
The
defendants’ belief regarding the effect their stay application
might achieve, and the basis on which it might be achieved,
is not a
defence to the plaintiff’s action. It might explain why they
did not plead before they were barred, but by following
the strategy
they did, once they were barred, they had to satisfy the requirements
for the lifting of the bar, including establishing
that they have a
bona fide defence to the plaintiff’s claim. Litigation is often
about making difficult choices.
[13]
[42]
The defendants’ motivation for not
setting out a bona fide defence is encapsulated in the following: If
a defendant is entitled
to a stay of the proceedings, a plaintiff
should not be able to capitalize on the steps taken to compel the
defendant to act before
the stay application is heard, as this will
undermine the purpose of the stay application itself. If entitled to
a stay of proceedings,
a defendant should also benefit from the
extended time periods, which would only begin to run after the
plaintiff has paid the
previous costs. Where a plaintiff capitulates
in response to a stay application, the defendant should not be put in
a worse position.
Therefore, where this happens, it will only be fair
and appropriate for a court to uplift any bar that the plaintiff has
put in
place in the interim, and to extend the defendant’s time
periods to run from the date when the plaintiff paid the previous
costs orders.
[43]
The basic difficulty with this proposition
is that the plaintiff did not capitulate on the stay application. He
paid the costs on
which the defendants based their stay application
in the belief, whether erroneous or otherwise, that this was
necessary for his
action to continue or to avoid further delay, which
he wished to avoid. That is not consistent only with a concession
that the
stay application was well founded in the first place.
[44]
Furthermore,
as concluded above regarding the costs of the stay application, the
stay application was unlikely to succeed. In the
light of that
conclusion, the defendants’ election not to deliver a plea was
not justified and placed them at the mercy of
the requirements of
rule 27. By not pleading any bona fide defence they may have to the
action, the defendants did not satisfy
the requirement of good cause.
In the absence of a bona fide defence to the plaintiff’s claim,
there would be no purpose
in lifting the bar.
[14]
It
would simply result in the continuation of a contested action where
there is no valid defence to the plaintiff’s claim.
That is why
the defendants had to satisfy the court that they had a bona fide
defence to the plaintiff’s claim.
[45]
In the alternative, the defendants
submitted that it was unnecessary for them to deal with their
defences in the founding affidavit,
as the plaintiff, in his
answering affidavit, had alluded to them. These defences, they say,
should be considered in context, as
they were previously raised and
were successful in defeating an application for summary judgment and
the liquidation application.
[46]
I disagree. It is not required of a court
to have to trawl through documents and annexures in other proceedings
to discern the facts
supporting a requirement which a party to the
litigation was required to establish. In any event, what the
plaintiff alluded to
were conflicting ‘defences’
previously advanced in the affidavit opposing summary judgment in the
first action and
the answering affidavit in the liquidation
application. The affidavit opposing summary judgment contained an
admission of liability.
The affidavit opposing the liquidation of the
first defendant sought to retract the admission in the summary
judgment opposing
affidavit and advance other grounds in defence,
some of which were peculiar to liquidation proceedings. That does not
satisfy the
requirement of setting out a bona fide defence which, if
established, will constitute a defence to the plaintiff’s
claim.
[47]
Ultimately, it is not in dispute that the
plaintiff advanced R1 million to the first or second defendant,
represented by the third
defendant. The plaintiff received a 5%
shareholding in the first defendant, as he was entitled to in terms
of their agreement,
confirming the implementation of their agreement.
He also received various repayments in respect of capital and
interest from the
first defendant as partial repayment of the amount
advanced. He seeks to recover the balance owing from the defendants
jointly,
alternatively separately, or in the alternative, on a number
of bases. The defendants were required, having allowed themselves to
become barred with full knowledge and acceptance that they would have
to apply to uplift the bar, to disclose their bona fide defence.
[48]
The high court cannot be faulted for
concluding that the defendants had failed to make out a case for
lifting the bar and an extension
of time to file a plea. The
defendants remained barred from taking any further steps in
opposition to the plaintiff’s claim,
as formulated.
The default
judgment
[49]
There is no cross appeal in respect of the
order of the high court striking the application for default judgment
from the roll.
It is accordingly not considered.
Order
[50]
Having
reconsidered the issue whether leave to appeal the order of the high
court should have been granted, it is clear that the
defendants have
not established grounds for such leave to be granted, as they do not
have reasonable prospects of success. Nor
is there any other
compelling reason why leave to appeal should be granted.
[15]
The
following order should therefore follow:
1
The application for reconsideration is granted.
2
The application for leave to appeal is dismissed with costs.
P
A KOEN
JUDGE
OF APPEAL
Appearances
For
the appellants:
W
Strobl
Instructed
by:
Andrew
Garratt Incorporated, Johannesburg
Willers
Attorneys, Bloemfontein
For
the respondent:
M C
Scheepers
Instructed
by:
Edelstein Farber Grobler Incorporated,
Johannesburg
MM Hattingh Attorneys Incorporated,
Bloemfontein.
[1]
Section
16(2)
of the
Superior Courts Act 10 of 2013
provides:
‘
(a)
(i)
When at the hearing of an appeal the issues are of such a nature
that the decision sought will have no practical effect or
result,
the appeal may be dismissed on this ground alone.
(ii)
Save under exceptional circumstances, the question whether the
decision would have practical effect or result
is to
be determined without reference to any consideration of costs.’
[2]
Public
Protector v South African Reserve Bank
[2019] ZACC 29
;
2019 (6) SA 253
(CC) para 107.
[3]
Zuma v
Office of the Public Protector and Others
(1447/2018)
[2020] ZASCA 138
(30 October 2020) para 19.
[4]
See
Beinash
and Another v Ernst and Young and Others
1999
(2) SA 116
(CC);
1999 (2) BCLR 125
para 16 which confirmed that a
stay in terms of
s 2(1)
(b)
of that Act would limit the right of access to court protected by s
34 of the Constitution. The defendants did not base their
application on the provisions of the Vexatious Proceedings Act.
[5]
Smit
v Venter
(2080/2009)
[2014] ZANWHC 8
(20 February 2014) para 8.
[6]
The
court referred to
Argus
Printing & Publishing Co Ltd v Rutland
1953 (3) SA 446
(C) at 449E.
[7]
Trevor
Giddey NO v J C Barnard and Partners
[2006] ZACC 13
;
2007
(5) SA 525
(CC);
2007 (2) BCLR 125
(CC)
paras
15 and 16;
President
of the Republic of South Africa and Another v Modderklip Boerdery
(Pty) Ltd (Agri SA and Others as Amici Curiae)
[2005] ZACC 5
;
2005 (5) SA 3
(CC);
2005 (8) BCLR 786
(CC) para 40.
[8]
Western
Cape Housing Development Board and Another v Parker and Another
2003
(3) SA 168
(C) para 11.
[9]
Plascon-Evans
Paints (TVL) Ltd. v Van Riebeck Paints (Pty) Ltd
[1984] ZASCA 51
;
[1984]
2 All SA 366
(A);
1984 (3) SA 623
;
1984 (3) SA 620
at 638D.
[10]
Rule 26 provides:
‘
Any
party who fails to deliver a replication or subsequent pleading
within the time stated in rule 25 shall be ipso facto barred.
If any
party fails to deliver any other pleading within the time laid down
in these Rules or within any extended time allowed
in terms thereof,
any other party may by notice served upon him require him to deliver
such pleading within five days after the
day upon which the notice
is delivered. Any party failing to deliver the pleading referred to
in the notice within the time therein
required or within such
further period as may be agreed between the parties, shall be in
default of filing such pleading, and
ipso facto barred: Provided
that for the purposes of this rule the days between 16 December and
15 January, both inclusive shall
not be counted in the time allowed
for the delivery of any pleading.’
[11]
Chetty
v Law Society, Transvaal
1985 (2) SA 756
(A) at 764I-765D;
Colyn
v Tiger Foods Industries Limited t/a Meadow Feed Mills (Cape)
2003
(2) All SA 113
(SCA);
2003 (6) SA 1
(SCA) para 11.
[12]
Ingosstrakh
v Global Aviation Investments (Pty) Ltd and Others
[2021] ZASCA 69
;
2021
(6) SA 353
(SCA);
[2021]
3 All SA 316
(SCA) para 22.
[13]
S v
Dlamini, S v Dladla and Others; S v Joubert; S v Schietekat
[1999] ZACC 8
;
1999 (4) SA 623
;
1999 (7) BCLR 771
para 94.
[14]
In
Madinda
v Minister of Safety and Security, Republic of South Africa
[2008] ZASCA 34
;
2008 (4) SA 312
(SCA);
[2008] 3 All SA 143
(SCA)
para 12 this Court, in a slightly different context rhetorically
asked: ‘what can be achieved by putting the court
to the task
of exercising a discretion to condone if there is no prospect of
success?’
[15]
Section
17
of the
Superior Courts Act.
The
Mont Chevaux Trust
(IT
2012/28) & Tina Goosen and 18 others
(LCC14R/2014)
para
6.
sino noindex
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