Case Law[2024] ZASCA 80South Africa
Motsoeneng v South African Broadcasting Corporation Soc Ltd and Others [2024] ZASCA 80; 2025 (4) SA 122 (SCA) (27 May 2024)
Headnotes
Summary: Application in terms of s 17(2)(f) of the Superior Courts Act 10 of 2013 – absence of exceptional circumstances – application dismissed.
Judgment
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## Motsoeneng v South African Broadcasting Corporation Soc Ltd and Others [2024] ZASCA 80; 2025 (4) SA 122 (SCA) (27 May 2024)
Motsoeneng v South African Broadcasting Corporation Soc Ltd and Others [2024] ZASCA 80; 2025 (4) SA 122 (SCA) (27 May 2024)
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sino date 27 May 2024
FLYNOTES:
CIVIL
PROCEDURE – Appeal –
Supreme
Court of Appeal
–
Two
judges at SCA considering and dismissing petition –
Application to President for reconsideration of refusal of
petition – Heads late by some eight days – Existence
of exceptional circumstances is jurisdictional fact that
had to
first be met – Conclusions reached by High Court and two
judges of SCA cannot be faulted – No reasonable
prospects of
success in contemplated appeal, much less special circumstances –
Application for condonation dismissed
–
Superior Courts Act
10 of 2013
,
s 17(2)(f).
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case
no: 64/2023
In the matter between:
GEORGE HLAUDI
MOTSOENENG APPELLANT
and
SOUTH AFRICAN
BROADCASTING
CORPORATION SOC
LTD
FIRST RESPONDENT
SPECIAL INVESTIGATING
UNIT SECOND
RESPONDENT
SOUTH AFRICAN
BROADCASTING
CORPORATION PENSION
FUND THIRD
RESPONDENT
Neutral
citation:
George
Hlaudi Motsoeneng v South African Broadcasting Corporation Soc Ltd
and Others
(Case no 64/2023)
[2024]
ZASCA 80
(27 May 2024)
Coram:
PONNAN, HUGHES and MEYER JJA and TLALETSI and
MBHELE AJJA
Heard
:
15 May 2024
Delivered
:
27 May 2024
Summary:
Application in terms of
s 17(2)
(f)
of the
Superior Courts Act 10 of 2013
–
absence of exceptional circumstances – application dismissed.
ORDER
On
appeal from
:
Gauteng Division of the High Court,
Johannesburg (Khan AJ, sitting as court of first instance):
(a)
The application for condonation is dismissed with costs.
(b)
The applicant for condonation is ordered to pay the costs incurred by
the respondents in
opposing the lapsed appeal.
(c)
In both instances (a) and (b) the costs shall include the costs of
two counsel.
JUDGMENT
Ponnan JA (Hughes and
Meyer JJA and Tlaletsi and Mbhele AJJA concurring):
[1]
The
appellant, George Hlaudi Motsoeneng, is the former Chief Operating
Officer of the first respondent, the national broadcaster,
the South
African Broadcasting Corporation (Soc) Ltd (SABC). By virtue of his
employment with the SABC, Mr Motsoeneng became a
member of the third
respondent, the South African Broadcasting Corporation Pension Fund
(the Fund). After the judgment of this
Court in the matter of
South
African Broadcasting Corporation Soc Ltd and Others v Democratic
Alliance and Others
[1]
(which I commend to the reader), the then SABC board came to be
reconstituted, whereupon a disciplinary enquiry against Mr Motsoeneng
was convened. Following the disciplinary enquiry, Mr Motsoeneng’s
employment was terminated on 12 June 2017, whereafter he
became
entitled to the payment of a withdrawal benefit from the Fund in
accordance with its rules.
[2]
On 24 July 2017, and shortly after the
termination of Mr Motsoeneng’s employment, the audit department
of the SABC discovered
that Mr Motsoeneng had been paid a success fee
to which he allegedly was not entitled. The payment came to be made
in the following
circumstances: On 19 August 2016, Mr James Aguma,
the former Group Chief Executive Officer, made oral representations
to the Governance
and Nominations Committee (the GNC) of the SABC
requesting their approval for the payment of a success fee to Mr
Motsoeneng, ostensibly
on the basis that he had raised an amount of
R1,19 billion for the benefit of the SABC. The GNC approved payment
and the sum of
R11 508 549.12 came to be paid in two instalments on
12 and 13 September 2016.
[3]
Asserting that the GNC had no authority or
mandate to pay Mr Motsoeneng a success fee, the SABC addressed a
letter to the Chief
Executive and Principal Officer of the Fund on 20
July 2017 requesting that: (a) it withhold payment of the accumulated
pension
benefit due to Mr Motsoeneng, until such time as a judgment
issued in the civil proceedings that it contemplated instituting
against
him; and, (b) in the event of a judgment issuing against Mr
Motsoeneng, the Fund make a deduction from any benefit due to him in
satisfaction of the judgment. The Fund refused to accede to the
request, instead after first seeking and obtaining further
particularity
from the SABC, the Principal Officer of the Fund wrote
on 28 July 2017: ‘[i]n order to withhold the pension benefit
from
Mr Motsoeneng, the Fund is obliged to request that the relevant
application to interdict the Fund from paying out the benefit be
served on the Fund on or before 4 August 2017’.
[4]
This prompted the SABC to issue an urgent
application out of the Gauteng Division of the High Court,
Johannesburg on 4 August 2017.
Relief was sought in two parts. Under
Part A, the SABC sought an order restraining the Fund from paying out
any benefit due to
Mr Motsoeneng to the tune of R11 508 549.12,
pending the determination of Part B. The SABC also sought a
‘[c]onditional
declarator of unconstitutionality in respect of
section 37D of the Pension Fund Act 108 of 1996’. Why the
additional relief
was sought was far from clear. It, however,
necessitated the joinder of the Minister of Finance and the Registrar
of Pension Funds,
both of whom filed affidavits in opposition. In the
event, the SABC subsequently chose to abandon the constitutional
challenge
and tendered the costs occasioned thereby in its replying
affidavit.
[5]
In support of the relief sought, it was
stated on behalf of the SABC:
‘
10
This application is predicated on the following grounds:
10.1
the second respondent, as a former employee of the applicant was a
member of the first respondent and
had made contributions during the
tenure of his employment;
10.2
in accordance with section 37D of the Pension Fund Act 24 of 1956
(“the Pension Fund Act”)
a registered pension fund may
deduct from any benefit payable to a member (the second respondent)
to the employer (the applicant)
for damage caused to the employer by
reason of theft, dishonesty, fraud or misconduct;
10.3
in accordance with Rule 15.2 of the SABC Pension Fund Rules (“Pension
Rules”), the trustees
have the requisite power to withhold
payment of the benefit, where the employer has instituted legal
proceedings in a court of
law and/or laid a criminal charge against
the member, until the matter has been finally determined by a
competent Court of Law
or has been settled or formally withdrawn;
10.4
the applicant, through the Interim Board sanctioned an audit
investigation which has revealed that
the second respondent received
an unlawful/unauthorized payment in the sum of R11 508 549.12
(eleven million five hundred
and eight thousand five hundred and
forty nine rand and twelve cents) from the applicant which was termed
a ‘success fee’
by the applicant’s Board’s
Governance and Nominations Committee (“G & N Committee”);
10.4.1 in this
regard I annex hereto, a copy of the Final Report on the “Success
Fee” . . .;
10.5
the investigation further revealed a clear misconduct in the
procedure and approval of the award made
to the second respondent by
the said committee;
10.6
resultantly, the applicant will seek an order directing the first
respondent to withhold the payment
of that the sum of R11 508 549.12
(eleven million five hundred and eight thousand five hundred and
forty nine rand and
twelve cents) until the review court has
pronounced on the intended review application as set out in Part B of
this application.
11
The applicant also approaches this court on an urgent basis acting on
the strength
of the first respondent’s letter urging the
applicant to serve this urgent application on or before Friday, 4
August 2017.
I deal with this aspect below.
12
The applicant reasonably anticipates that should the money be paid to
the second respondent
or alternatively to another fund, it will not
be able to reclaim payment of the money unlawfully paid to him
(second respondent)
emanating from a decision of the G & N
Committee to award or approve the 2.4% of R1,19 billion.’
[6]
Somewhat surprisingly, the Fund filed
several affidavits in opposition to the application. It also raised,
in addition to the opposition
on the merits, a range of preliminary
procedural complaints. This, in circumstances where it was open to it
to simply abide the
decision of the court. Mr Motsoeneng chose not to
file an affidavit in opposition to the relief sought under Part A.
Instead, he
contented himself with a notice under rule 6(5)(
d
)(
iii
)
that he would be raising various questions of law at the hearing of
the matter. Part A came before Maier-Frawley AJ on 6 December
2018.
On 18 January 2018, she issued an interim interdict restraining the
Fund from paying out the pension fund benefit standing
to the credit
of Mr Motsoeneng, pending the finalisation of the matter.
[7]
In reaching that conclusion, Maier-Frawley
AJ held:
‘
22.
. . . The factual allegations which underpin the SABC’s claims
remain largely if not wholly
undisputed on the papers. Motsoeneng
elected not to engage with the substantive allegations made by the
SABC in its papers. Nor
did he put up any version to the contrary.
. . .
47.
The factual allegations in the founding papers
prima facie
demonstrate that Motsoeneng had accepted and retained payment of
an unlawful, unauthorised and unwarranted success fee in the amount
of R11 508 549.12, this, in circumstances where: (i) an
investigation conducted by the SABC’s audit department
revealed
that the requisite Board approval had not been sought or obtained in
relation to such payment, (which fact would support
an inference that
it had deliberately not been disclosed by any members of the SABC’s
Governance and Nominations Committee
(‘GNC’) to the
Board); (ii) payment of the amount of R11 508 549.12 had
been made in full by way of lump
sum payments on 12 and 13 September
2016 in circumstances where, to the knowledge of the GNC, the SABC’s
financial circumstances
did not allow for a lump sum payment thereof
and where the GNC had in fact resolved that payment would be made by
way of instalments
over a period of three years; (iii) transcripts of
the GNC deliberations that preceded the taking of the decision to
award Motsoeneng
a success fee, evidenced that GNC members were aware
that the payment to Motsoeneng was irregular; (iv) the terms of
reference
of the GNC included, amongst others, to ‘[p]revent
any Human Capital practices that will result in unauthorised,
irregular,
fruitless and wasteful expenditure. . .’; (v) a
paper audit trail in relation to the payment had been deliberately
concealed,
in conflict with established norms and values that demand
open transparency in the exercise of public power; (vi) neither
Motsoeneng’s
service agreement nor the SABC’s governing
policy documents made provision for payment to him of a success fee;
(vii) the
duties of Executive Directors (of which Motsoeneng was one)
included, amongst others, the giving of advice on governance related
matters; and (viii) the SABC had expressly relied on the provisions
of section 57 of the Public Finance Management Act 1 of 1999
(‘PFMA’), the Public Protector’s report, and the
final audit report (relating to the outcome of the audit
investigation
conducted by the SABC’s internal audit
department) in support of its case.
. . .
88.
The allegations made in the SABC’s affidavits appear to
prima
facie
point to the fact that Motsoeneng unlawfully received
payment of a success fee in the amount of R11 508 549.12 in
circumstances
where (a) he allegedly knew or ought to have known (in
his role as Chief Operating Officer and in any event, as executive
member
of the GNC) of the irregularity by which the payment of such
amount to him was tainted and to which he was therefore not legally
entitled, but which he nonetheless accepted and retained, exacerbated
by his failure to disclose same (until uncovered by an audit
investigation) and (b) in contravention of his undisputed duties in
terms of s 57 of the PFMA to ensure that the system of financial
management and internal controls established for the SABC are carried
out and to take effective and appropriate steps to prevent
any
irregular or fruitless and wasteful expenditure within his area of
responsibility. His dishonesty is said to lie in knowingly
and
intentionally accepting a payment that was on the face of it
irregular and invalid, without disclosing same (which served to
unjustly enrich him) and then appropriating it to himself, thereby
acting in his own self-interest and in breach of his fiduciary
duty
of good faith owed to the SABC under s 76(2)(
a
) of the
Companies Act.
89.
The evidence put up by the SABC is sufficient to
prima facie
point
to Motsoeneng’s intentional misappropriation of public funds –
the SABC’s allegations support the inference
that Motsoeneng
knowingly acted in his own self-interest in appropriating to himself,
for his own use, public funds entrusted to
his care as public
functionary, to which he was not legally entitled, which caused the
SABC to suffer loss. Bearing in mind that
the SABC is a major public
entity in terms of Schedule 2 of the PFMA and that it is funded
through the public purse, it is enjoined
to recover the losses it
suffered from Motsoeneng as a result of his unlawful conduct. It is
also constitutionally enjoined to
do so. And it is in the interests
of the public and for the SABC to do so.’
[8]
On
29 June 2020, and after the grant of the interim interdict, the
second respondent, the Special Investigating Unit (the SIU),
sought
and obtained leave to intervene in the application.
[2]
The involvement of the SIU arose as a result of investigations
conducted by it into the affairs of the SABC. This, following a
referral on 1 September 2017 by the President of the Republic of
South Africa of allegations of impropriety in connection with
the
affairs of the SABC to the SIU for investigation in accordance with
the terms of reference set out in Proclamation No. R29
of 2017.
[3]
According to the SIU, after having conducted the authorised
investigations, it was satisfied that it had sufficient grounds to
institute proceedings against Mr Motsoeneng, as it was empowered to
do by virtue of ss 4(1)(
c
)
and 5(5) of the
Special
Investigating Unit and Special Tribunals Act 74 of 1996. It thus
joined in the application and made common cause with the
SABC’s
self-review.
[9]
Ms Mariette Amanda Dreyer, a Chief Forensic Investigator at the SIU,
who deposed to
the supporting affidavit on its behalf, had this to
say:
‘
18
At the outset, I refer to the affidavit deposed to by Mr Vusumuzi
Goodman Moses Mavuso (“Mavuso”)
. . . Mavuso was a
Non-Executive Director at the SABC from 25 September 2013 to 13
October 2016. During his tenure at the Board
of the SABC, he also
served as a member of various Board Committees including Human
Resource and Remunerations Committee specifically
during 2016.
19
Mavuso confirms in his affidavit and with specific reference to
section 14.3 of the
Board Charter dated 26 April 2010 . . . and Table
15 of the Delegation of Authority Framework of 26 April 2016 . . .
that there
was no approved commission and/or success fee policy
applicable to Executive Directors such as Motsoeneng during his
(Mavuso) tenure
at the SABC. He confirms that any new policy would
have had to be approved by the Board but that in this case, no such
policy was
ever approved by the Board during his tenure.
20
What is fatal to any opposition to this application is what Mavuso
states in paragraphs
21.1 to 21.7 of his affidavit. He states that in
the Board meeting of 19 August 2016, a proposal was made by Professor
Tshidzumba
to reward SABC employees for doing their job such as
negotiating contracts. Mavuso objected to this, contending that the
SABC performance
management systems were sufficient to reward staff.
This objection was upheld by the Board, meaning the proposal by
Tshidzumba
was not approved. He attaches the attendance register, the
Board minutes and the Board meeting transcript of 19 August 2016 as
annexures . . . There are three factors to be distilled from his
affidavit and these annexures.
First
, these annexures show
that the members of the GNC who had earlier on the same day took a
resolution approving the Commission Policy
of the SABC to include
success fee to Executive Directors and specifically to pay Motsoeneng
success fee were present in that meeting
but did not disclose their
resolution or their intention to pay Motsoeneng success fee to the
Board. They had a fiduciary duty
to disclose to the Board.
Second
,
even after rejection of Tshidzumba’s proposal in this meeting,
the GNC members failed to halt the payment of the success
fee to
Motsoeneng.
21
Third,
Motsoeneng himself was part of this Board meeting. He
was aware that the GNC had earlier discussed payment of the success
fee to
him but did not disclose this to the Board when he had a
fiduciary duty as an Executive Director to do so. Not only did he not
disclose but went on to receive payment of the success fee when he
ought to have rejected this payment. His conduct and/or omissions
in
this regard was clearly fraudulent or at the very least dishonest.
22
Motsoeneng’s contract of employment is attached to Mavuso’s
affidavit .
. . I ask that its contents be incorporated herein. It
regulated Motsoeneng’s terms of employment. Clause 9 records
the duties
of the Executive. Clause 12.2 makes provision for
performance bonuses. Clause 12.2.1 provides that annual performance
bonuses are
not guaranteed and may be granted at the sole and
absolute discretion of the Board which will take into account,
without limitation,
the performance of the SABC and that of the COO
measured against the key performance indicators and/or areas set out
in the performance
agreement. Mavuso confirms that no Performance
Agreement was concluded between the SABC and Motsoeneng. Other than
this bonus,
the contract does not make any other provision for other
rewards such as a success fee.’
[10]
Part B of the relief sought came before Khan AJ on 26 May 2021. On 15
December 2021, the learned
judge issued the following order:
‘
1.
The decision by the SABC on 19 August 2016, through its Governance
and Nominations
Committee, to award Motsoeneng a success fee and
paying him
R11 508 549.12,
is declared invalid and set aside.
2.
Motsoeneng is ordered to repay to the SABC, the amount of
R11 508 549.12
paid to him as a success fee with interest
[
a tempore morae
] per annum calculated from 13 September 2016
to date of payment, within 7 (seven) days from the date of service of
this order.
3.
The Pension Fund is to pay to the SABC an amount of R11 508 549.12
from the pension proceeds that have accumulated to the benefit of Mr
H R Motsoeneng, in favour of the SABC, alternatively to pay
the full
pension proceeds of Mr H R Motsoeneng, in the event that they do not
equal R11 508 549.12, in the event that
the Second
Respondent fails to pay within 7 (seven) days from date of service of
this order.
4.
Ordering the Second Respondent to pay the costs of this application,
which costs
will include the reserved costs in respect of Part A and
the costs of 2 Counsel where employed.
5.
Ordering the First and Second Applicants to pay the Respondents costs
in respect
of the costs of the abandonment of the wasteful and
irregular expenditure claim.’
[11]
On 15 July 2022, Khan AJ dismissed Mr Motsoeneng’s application
for leave to appeal. He
thereafter petitioned this Court for leave to
appeal on 15 August 2022. The two judges who considered the petition
dismissed it
on 19 January 2023. Like Khan AJ, they also took the
view that the envisaged appeal lacked reasonable prospects of success
and
that there was no other compelling reason why the appeal should
be heard, as contemplated by s 17(1) of the Superior Courts Act
10 of
2013 (the Act). Mr Motsoeneng then applied in terms of s 17(2)(
f
)
of the Act to the President of this Court for the reconsideration of
the refusal of his petition. Petse AP referred the decision
dismissing Mr Motsoeneng’s application for leave to appeal to
the Court for reconsideration and directed the parties to be
prepared, if called upon to do so, to address the court on the merits
of the appeal.
[12]
After the record had been filed in the matter, the appeal lapsed for
failure on the part of Mr
Motsoeneng to prosecute it by timeously
filing his heads of argument. Thus, the initial question that is
before us is whether the
default by him should be condoned and the
appeal revived. Factors which usually weigh with this Court in
considering an application
for condonation include the degree of
non-compliance, the explanation therefor, the importance of the case,
a respondent’s
interest in the finality of the judgment of the
court below, the convenience of this Court and the avoidance of
unnecessary delay
in the administration of justice.
[4]
Here, the delay is not excessive – the heads were late by some
eight days as a result of a miscalculation of the
dies
on the
part of Mr Motsoeneng’s attorney. The application for
condonation was filed within a week of the attorney becoming
aware of
the necessity for one. I am also willing to assume in Motsoeneng’s
favour that the matter is of substantial importance
to him and accept
in his favour that there has been no or minimal inconvenience to the
Court. However, on the merits, which must
be weighed against the
other factors and to which I presently turn, one cannot be as
charitable to Mr Motsoeneng. On that score,
the scales are tipped
firmly against condoning the default and reviving the appeal, thereby
entitling us to refuse the indulgence
of condonation.
[13]
Section 17(2) of the Act provides:
‘
(a)
Leave
to appeal may be granted by the judge or judges against whose
decision an appeal is to be made or, if not readily available,
by any
other judge or judges of the same court or Division.
(b)
If leave to appeal in terms of paragraph (
a
)
is refused, it may be granted by the Supreme Court of Appeal on
application filed with the registrar of that court within one
month
after such refusal, or such longer period as may on good cause be
allowed, and the Supreme Court of Appeal may vary any order
as to
costs made by the judge or judges concerned in refusing leave.
(c)
An application referred to in paragraph (
b
)
must be considered by two judges of the Supreme Court of Appeal
designated by the President of the Supreme Court of Appeal and,
in
the case of a difference of opinion, also by the President of the
Supreme Court of Appeal or any other judge of the Supreme
Court of
Appeal likewise designated.
(d)
The judges considering an application referred to
in paragraph (
b
)
may dispose of the application without the hearing of oral argument,
but may, if they are of the opinion that the circumstances
so
require, order that it be argued before them at a time and place
appointed, and may, whether or not they have so ordered, grant
or
refuse the application or refer it to the court for consideration.
(e)
Where an application has been referred to the
court in terms of paragraph (
d
),
the court may thereupon grant or refuse it.
(f)
The decision of the majority of the judges
considering an application referred to in paragraph (b), or the
decision of the court,
as the case may be, to grant or refuse the
application shall be final: Provided that the President of the
Supreme Court of Appeal
may in exceptional circumstances, whether of
his or her own accord or on application filed within one month of the
decision, refer
the decision to the court for reconsideration and, if
necessary, variation.’
[14]
It is important to distinguish between an application for leave to
appeal and an application
under subsection (2)
(f)
.
The latter is an application to the President for the referral to the
Court for reconsideration of the considered decision of
the two
judges refusing leave to appeal. The necessary prerequisite for the
exercise of the President’s discretion is the
existence of
‘exceptional circumstances’. If the circumstances are not
truly exceptional, that is the end of the matter.
The application
under subsection 2
(f)
must
fail and falls to be dismissed. If, however, exceptional
circumstances are found to be present, it would not follow, without
more, that the decision refusing leave to appeal must be referred to
the court for reconsideration. The President may, in the exercise
of
her discretion, nonetheless decline to do so.
If
the President refers the decision of the two judges for
reconsideration, the court effectively steps into the shoes of the
two
judges. Upon reconsideration, it may grant or refuse the
application and, if the former, vary the order of the two judges
dismissing
the application to one granting leave either to this Court
or the relevant high court.
[5]
[15]
In this regard, it is important to recognise that we are concerned
with a proviso, the purpose
of which is ordinarily to take out of the
purview of the provision something that would otherwise be a part of
it. This was emphasised
in
National Director of Public
Prosecutions, KwaZulu-Natal v Ramdass
in these terms:
‘
Furthermore,
it is a basic rule of interpretation of statutes that a proviso must
be read and considered in relation to the principal
matter to which
it is a proviso. It is not a separate and independent enactment and
the words of the proviso are dependent on the
principal enacting
words, to which they are attached as a proviso. The words of the
proviso cannot be read as divorced from their
context. In
Mphosi
v Central Board for Co-operative Insurance Ltd
1974
(4) SA 633
(A)
at 645B-F, the following was stated:
‘
This
argument altogether overlooks the true function and effect of a
proviso. According to Craies,
Statute
Law
,
7th ed., at p. 218 –
"the
effect of an excepting or qualifying proviso, according to the
ordinary rules of construction, is to except out of the
preceding
portion of the enactment, or to qualify something enacted therein,
which but for the proviso would be within it; and
such proviso cannot
be construed as enlarging the scope of an enactment when it can be
fairly and properly construed without attributing
to it that
effect”.’
[6]
[16]
In its consideration of s 17(2)
(f)
, the Constitutional Court
pointed out in
Liesching and Others v S
(
Liesching II)
:
‘
As
with section
18(1), section
17(2)(f)
prescribes
a departure from the ordinary course of an appeal process. Under
section
17
, in the ordinary course, the decision of two or more Judges
refusing leave to appeal is final. However, section
17(2)(f)
allows
for a litigant to depart from this normal course, in exceptional
circumstances only, and apply to the President for reconsideration
of
the refusal of leave to appeal.
In
Ntlemeza
,
the requirement of exceptional circumstances is viewed as a
“controlling measure”. In terms of section
17(2)(f),
the President has a discretion to deviate from the
normal course of appeal proceedings – such discretion can only
be exercised
in exceptional circumstances. The requirement of the
existence of exceptional circumstances before the President can
exercise her
discretion is a jurisdictional fact which may operate as
a controlling or limiting factor.’
[7]
[17]
It has long been accepted that it is ‘undesirable to attempt to
lay down any general rule’
in respect of ‘exceptional
circumstances’ and that each case must be considered upon its
own facts.
[8]
In
MV
Ais Mamas Seatrans Maritime v Owners, MV Ais Mamas and another
,
Thring J summarised the approach to be followed. He said that ‘what
is ordinarily contemplated by the words “exceptional
circumstances” is something out of the ordinary and of an
unusual nature; something which is excepted in the sense that the
general rule does not apply to it; something uncommon, rare or
different’.
[9]
[18]
In
Avnit v First Rand Trading
,
Mpati P stated that ‘the overall interests of justice will be
the determinative feature’ for the exercise of the President’s
discretion under
s 17(2)
(f)
,
adding:
‘
In
the context of s 17(2)
(f)
the
President will need to be satisfied that the circumstances are truly
exceptional before referring the considered view of two
judges of
this court to the court for reconsideration. I emphasise that the
section is not intended to afford disappointed litigants
a further
attempt to procure relief that has already been refused. It is
intended to enable the President of this Court to deal
with a
situation where otherwise injustice might result. An application that
merely rehearses the arguments that have already been
made,
considered and rejected will not succeed, unless it is strongly
arguable that justice will be denied unless the possibility
of an
appeal can be pursued. A case such as
Van
der Walt
[10]
may,
but not necessarily will, warrant the exercise of the power. In such
a case the President may hold the view that the grant
of leave to
appeal in the other case was inappropriate.
A
useful guide is provided by the established jurisprudence of this
court in regard to the grant of special leave to appeal. Prospects
of
success alone do not constitute exceptional circumstances. The
case must truly raise a substantial point of law, or be
of great
public importance or demonstrate that without leave a grave injustice
might result. Such cases will be likely to be few
and far between
because the judges who deal with the original application will
readily identify cases of the ilk. But the power
under section
17(2)
(f)
is one
that can be exercised even when special leave has been refused, so
‘exceptional circumstances’ must involve more
than
satisfying the requirements for special leave to appeal. The power is
likely to be exercised only when the President believes
that some
matter of importance has possibly been overlooked or a grave
injustice will otherwise result.’
[11]
[19]
Regrettably,
the
parties misconceived the true nature of the enquiry. In the heads of
argument filed on behalf of both, the sole focus was wrongly
on the
correctness of the judgment of Khan AJ, and whether or not there were
reasonable prospects of success in the contemplated
appeal against
that judgment. Counsel appeared not to appreciate that the
requirement of the existence of exceptional circumstances
is a
jurisdictional fact that had to first be met, and that absent
exceptional circumstances, the s 17(2)(
f
)
application was not out of the starting stalls. At the Bar, counsel
sought to rehash the arguments that had already been advanced
before
the high court and before the two judges of this Court, who dismissed
the application for leave to appeal. But those contentions
had been
considered and found to be wanting in a detailed judgment of the high
court. In dismissing the petition, the two judges
of this Court had
self-evidently taken the view that there were no reasonable prospects
of an appeal against that judgment succeeding.
As Innes ACJ made
plain in
Norwich Union Life Insurance
Society v Dobbs
:
‘
.
. . when a statute directs that a fixed rule shall only be departed
from under exceptional circumstances, the Court, one would
think,
will best give effect to the intention of the Legislature by taking a
strict rather than a liberal view of applications
for exemption, and
by carefully examining any special circumstances relied upon.’
[12]
[20]
An independent perusal of the record reveals that neither the
conclusion reached by Khan AJ,
nor that of the two judges of this
Court, can be faulted. As Lewis JA, in dealing with the test for the
grant of special leave
to appeal, observed in
Stu
Davidson v Eastern Cape Motors
:
‘
There
is no legal question to be determined. There is no factual dispute
that requires reconsideration. There is no reason why an
appellate
court should determine any matter arising from the first appeal
further. Again, it is trite that where there has been
no manifest
denial of justice, no important issue of law to be determined, and
the matter is not of special significance to the
parties, and
certainly not of any importance to the public generally, special
leave should not be granted.’
[13]
That holds true for this
matter as well. Given that there are no reasonable prospects of
success in the contemplated appeal, much
less special circumstances,
the application hardly meets the higher ‘exceptional
circumstances’ threshold set by
s 17(2)
(f)
. It must
accordingly fail.
[21]
In the result:
(a) The application for
condonation is dismissed with costs.
(b) The applicant for
condonation is ordered to pay the costs incurred by the respondents
in opposing the lapsed appeal.
(c) In both instances (a)
and (b) the costs shall include the costs of two counsel.
________________
V M PONNAN
JUDGE OF APPEAL
Appearances
For the appellant:
T Masuku SC, K Mathipa and T Ngubeni
Instructed by:
Bokwa Law Inc., Pretoria
Bokwa Attorneys,
Bloemfontein
For the first &
second respondents: J Motepe SC and B Lukhele
Instructed by:
Werksmans Attorneys, Johannesburg
Honey Attorneys,
Bloemfontein
## [1]South
African Broadcasting Corporation Soc Ltd and Others v Democratic
Alliance and Others[2015]
ZASCA 156; [2015] 4 All SA 719 (SCA); 2016 (2) SA 522 (SCA).
[1]
South
African Broadcasting Corporation Soc Ltd and Others v Democratic
Alliance and Others
[2015]
ZASCA 156; [2015] 4 All SA 719 (SCA); 2016 (2) SA 522 (SCA).
[2]
The
Special Investigating Unit is an Organ of State established by
Proclamation No. R.118 of 2001 (Government Gazette No 22531
dated 31
July 2001) issued pursuant to the provisions of s 2(1)(a) of the
Special Investigating Unit and Special Tribunals Act
74 of 1996.
[3]
Proclamation
No. R.29 of 2017 published in Government Gazette No 41086, 1
September 2017.
[4]
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development Company
Ltd and Others
[2013]
ZASCA 5
;
[2013] 2 All SA 251
(SCA) para 11.
[5]
See
by way of example
Ntlanyeni
v S
[2016]
ZASCA 3
;
2016 (1) SACR 581
(SCA) and
Mathekola
v State
[2017]
ZASCA 100.
[6]
Director of Public
Prosecutions, KwaZulu-Natal v Ramdass
[2019]
ZASCA 23
,
2019 (2) SACR 1
(SCA) para 14.
[7]
Liesching
and Others v S
[2018]
ZACC 25
;
2018 (11) BCLR 1349
(CC);
2019 (1) SACR 178
(CC);
2019 (4)
SA 219
(CC) paras 136-137.
[8]
Norwich
Union Life Insurance Society v Dobbs
1912
AD 395
at 399.
[9]
MV
Ais Mamas Seatrans Maritime v Owners, MV Ais Mamas, and another
2002
(6) SA 150
(C) at 156H-J.
[10]
Where
two Judges of the Supreme Court of Appeal dismissed Mr Van der
Walt’s application for leave to appeal. A day later
two other
Judges granted an application in an identical matter brought by Mr
Kgatle. Subsequent events showed that the error
lay in the grant of
leave to appeal to Mr Kgatle. (See
Van
der Walt v Metcash Trading
Ltd
[2002]
ZACC 4
;
2002
([2002]
ZACC 4
[2002] ZACC 4
; ;
4)
SA 317
(CC);
2002
(5) BCLR 454
(CC)
and
Kgatle
v Metcash Trading Ltd
2004
(6) SA 410
(T).
[11]
Avnit
v First Rand Bank Ltd
(20233/14)
[2014]
ZASCA 132
(23
September 2014)
paras
6-7.
[12]
Norwich
fn 7
above at 399.
[13]
Stu
Davidson and Sons (Pty) Ltd v Eastern Cape Motors (Pty) Ltd
[2018]
ZASCA 26
para 19.
sino noindex
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