Case Law[2025] ZAGPJHC 27South Africa
Busamed Healthcare (Pty) Ltd and Others v Mazars Corporate Finance (Pty) Ltd and Others (2021/45096) [2025] ZAGPJHC 27 (20 January 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
20 January 2025
Headnotes
what shares in what companies or close corporations and when.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Busamed Healthcare (Pty) Ltd and Others v Mazars Corporate Finance (Pty) Ltd and Others (2021/45096) [2025] ZAGPJHC 27 (20 January 2025)
Busamed Healthcare (Pty) Ltd and Others v Mazars Corporate Finance (Pty) Ltd and Others (2021/45096) [2025] ZAGPJHC 27 (20 January 2025)
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###### IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE
NO: 2021/45096
1.
Reportable: No
2.
Of interest to other judges: No
3.
Revised
20
January 2025
BUSAMED
HEALTHCARE (PTY) LTD
First
Applicant
GATEWAY
PRIVATE HOSPITAL (PTY) LTD
Second
Applicant
BUSAMED
(PTY) LTD
Third
Applicant
and
MAZARS
CORPORATE FINANCE (PTY) LTD
First
Respondent
TROPICAL
PARADISE TRADING 165 (PTY) LTD
Second
Respondent
VERAISON
(PTY) LTD
Third
Respondent
AMORICARE
(PTY) LTD
Fourth
Respondent
SIMPHIWE
DOUGLAS DINGAAN
Fifth
Respondent
EDITH
NOMAKHOSI SKWEYIYA
Sixth
Respondent
RAJINDRALILLY
HOUSTON
Seventh
Respondent
JUDGMENT
– LEAVE TO APPEAL
WRIGHT J
1.
The applicants, to whom I shall
refer as Busamed, seek leave to appeal my order of 21 November 2024.
Busamed’s main application
had been withdrawn some time before
the hearing on 21 November 2024. In the order, I postponed the
counter-application of Tropical
and Veraison sine die, reserved
costs, allowed all three participating sides to file further
affidavits and ordered that the parties
approach the Deputy Judge
President to request that he allocate the case as a special motion.
2.
The order of 21 November 2024 was
entirely interlocutory.
3.
Mazars abides my decision in this
application for leave to appeal.
4.
On 16 December 2024 I handed down
reasons under Rule 49(1)(c) for my order of 21 November 2024. This
judgment is to be read with
those reasons.
5.
So as not to require the reader to
read two documents my reasons of 16 December 2024 are set out below:
“
1.
On
21 November 2024 I started hearing the above opposed application in
open court. I shall refer to the above cited three applicants
in the
main application as Busamed. I shall refer to the above cited first
respondent in the main application as Mazars. I shall
refer to the
above cited second and third respondents in the main application as
Veraison.
2.
The main application had been
withdrawn by Busamed some time previously. Busamed did not tender
costs in its notice of withdrawal.
The costs of the withdrawn
application are sought by Veraison.
3.
The main issue before me was the
counter-application brought by Veraison. Busamed and Mazars oppose
this counter-application.
4.
The hotly contested litigation goes
back many years and in many forums. In short, Veraison wants Mazars
to value a hospital management
agreement and Veraison wants Busamed
to pay the amount determined by Mazars.
5.
To reduce the other litigation to
its bare bones, an arbitrator, Mr Van Der Nest SC made an award some
years ago. The High Court
in Pretoria, per Nkosi AJ made the award an
order of court. This court, per Keightley J ordered certain relief in
favour of Veraison
relating to enforcing Mr Van Der Nest’s
award and the Nkosi AJ award. In particular, Mazars was ordered by
Keightley J to
produce a valuation.
6.
Mazars say that they can’t
produce a proper valuation as Busamed and Veraison are at each
others’ throats and are not
giving Mazars sufficient
information. Mazars says that, only to comply with the Keightley J
order, they produced a valuation of
sorts, with incomplete
information. Veraison says that the Mazars’ valuation is
unhelpful. Veraison says that Busamed is
just delaying the evil day
when it will have to pay.
7.
Busamed says that the agreement
terminated on a specific date some years ago. Versaison says that the
agreement persists and is
evergreen.
8.
If Busamed is wrong on termination
date, at least two sets of questions arise. First, can an evergreen
agreement be valued and if
so does there not have to be a cut off
date? If there needs to be a cut off date, then what date is to be
used in the present case?
Second, the life of the agreement may
depend, at least partially, on factors like the existence of or the
end date or dates of
a certain lease or leases. Similar
considerations may apply to who held what shares in what companies or
close corporations and
when.
9.
Veraison has not sought to hold
Busamed, or Mazars, in contempt of the Nkosi AJ order or the
Keightley J order. Rather, Veraison
seeks in its counter-application
that a road map be given by the court to Mazars for determining the
value.
10.
One of the prayers sought by
Veraison is that the agreement be valued “until at least a date
after the Arbitration Award on
which it was agreed, or ordered, that
the [agreement] had been terminated or cancelled. “ I queried
Mr Whitcutt SC for Veraison
on the vague formulation of this prayer
and other prayers. He acknowledged difficulty.
11.
It became clear during debate with
counsel for Busamed, Versaison and Mazars that the gist of the real
point had not been canvassed
fully in the affidavits or the heads of
argument.
12.
As Mr Tsatsawane SC for Busamed said
“This is the very first time that this issue is receiving the
attention of the court,
because this is the central case in this
whole dispute. The dispute has always been up until what date do you
do the valuation
? “ Sound recording
2024-11-21_10.59.40.140 at 00:01:16 to 00:01:42 and onwards.
13.
Later, Mr Tsatsawane said, “
This is the very first time that this case is having this kind of
analysis. “ Sound
recording 24-11-21_11.59.33.515 at
00:00:57.
14.
It occurred to me that perhaps,
given the long history of the matter, coupled with the fact that
none of affidavits or heads
of argument dealt fully with what might
be an important point in the case if not the pivotal point, justice
would be served if
all sides were given an opportunity to file
further affidavits on the point. Sound recording
2024-11-21_11.53.33.375 at 00:02:22
and onwards.
15.
It seemed that it would possibly not
be in the interests of justice for the case to be decided otherwise
than on facts established
in evidence and after full argument on
important issues from all sides.
16.
I asked Mr Tsatsawane if he had any
serious objection to further affidavits being filed. Not
unreasonably, he submitted that his
clients had been raising these
points since 2019 and that Veraison should stand or fall by its
affidavits as filed. Sound recording
24-11-21_11.56.33.437 at
00:00:05 to 00:00:50.
17.
Mr Whitcutt was in favour of my
suggestion.
18.
On balance, having weighed Mr
Tsatsawane’s argument I concluded that the interests of justice
required the filing of further
affidavits.
19.
The matter was discussed further in
court and dates were agreed for the filing of further affidavits. I
suggested that costs should
be reserved and that the Deputy Judge
President be asked to allocate the matter as a special motion to be
heard over two days.
It was wholly inappropriate for this case to be
set down as one of a number of matters on the ordinary opposed motion
roll.
20.
I requested counsel to prepare a
typed draft order and that they then approach me in chambers. They
later did and I made the draft
an order. By then, I was under the
impression that all three sides were in agreement on all aspects of
the order. In fairness to
Mr Tsatsawane, he had earlier expressly
argued against the filing of further affidavits.
21.
On 12 December 2024, I received an
email from my clerk, Ms Vukeya which contained an application by
Busamed for leave to appeal
my order of 21 November 2024. I
immediately went to the caselines file and saw that Busamed’s
attorney had filed a document
under Rule 49(1)(c) asking me for
reasons for my order. I do not know why this document had not been
brought to my attention. This
is an ongoing, intractable problem.
22.
I called for the sound recording and
then prepared this document.
23.
The application for leave to appeal
will be heard as soon as is reasonably possible.”
6.
In particular, an important point,
possibly decisive of the main application, had not been fully
addressed in the affidavits or
in the heads of argument. It would
have been unwise to attempt to decide this point in the dark. The
interests of justice favour
an opportunity for all concerned to file
further affidavits. Counsel for all sides concerned were given a full
opportunity to say
why I should not make the order I thereafter made.
7.
In due course, it follows that
further heads of argument by all participating sides may be filed
after the further affidavits have
been filed.
8.
No party could be prejudiced by my
order. On the contrary, the interests of justice called for the
order.
9.
Busamed, as part of its opposition
to the counter-application, takes the point that the
counter-application is late and therefore
can’t be granted for
that reason alone. Mr Tstatsawane SC, for Busamed argues that in
making my order of 21 November 2024
I effectively decided that the
lateness argument is bad and that the counter-application is properly
before the court. This is
not so. My order of 21 November 2024
decided nothing. The order has the effect only that the matter as a
whole, including Busamed’s
point about lateness, can be
decided in the light rather than in the dark.
10.
The applicants for leave to appeal
have no reasonable prospect on appeal and there is no compelling
reason to grant leave.
11.
On the question of costs in this
application for leave to appeal, scale A suffices.
ORDER
1.
The application for leave to appeal
is dismissed with costs including those of two counsel where so
employed and including those
of senior counsel where so employed.
Scale A applies.
____________________
GC Wright
Judge of the High Court
Gauteng Division, Johannesburg
HEARD
: 20 January 2025
DELIVERED
: 20 January 2025
APPEARANCES
:
Tropical
and Veraison
Adv
Christopher Whitcutt SC
082 881 5688
whitcutt@mweb.co.za
Adv V Mabuza
072 950 2307
adv@vincentmabuza.com
Instructed
by Edward Nathan
Sonnenbergs Inc
073 339 5833 / 071 350
4730
dmolope@ensafrica.com
hhugo@ensafrica.com
Busamed
and Gateway
Adv Kennedy
Tsatsawane SC
083 326 2711
Ken@law.co.za
Instructed
by Cliffe Dekker
Hofmeyer Inc
Nomlayo Mabhena-Mlilo
073 877 4774
Mazars
No appearance
Instructed by
Webber Wentzel
Kim Rew
021 431 7354 / 7275
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