Case Law[2025] ZAGPJHC 91South Africa
Kanivest 3146 CC and Another v Petatype (Pty) Ltd (Leave to Appeal) (051018/24) [2025] ZAGPJHC 91 (5 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
5 February 2025
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a Court has the discretion to grant or refuse the
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Kanivest 3146 CC and Another v Petatype (Pty) Ltd (Leave to Appeal) (051018/24) [2025] ZAGPJHC 91 (5 February 2025)
Kanivest 3146 CC and Another v Petatype (Pty) Ltd (Leave to Appeal) (051018/24) [2025] ZAGPJHC 91 (5 February 2025)
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sino date 5 February 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number:
051018/24
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED: NO
DATE: 5/2/2025
SIGNATURE
In
the matter between:
KANIVEST
3146 CC
(REGISTRATION
NO: 2000/039077/23)
First
Applicant
KOOP
DE VRIES STYGER
Second
Applicant
AND
PETATYPE
(PTY) LTD
(REGISTRATION
NO: 2021/469203/07)
Respondent
JUDGMENT – LEAVE
TO APPEAL
MAHOMED J
[1]
This is an application for leave to appeal
an order I granted for provisional liquidation. The matter was on my
unopposed roll on
3 December 2024. The Respondent applied for a
postponement of the matter, no substantive application was before me,
the application
was opposed. I dismissed the application and
granted the provisional order.
[2]
Counsel for the Applicant Advocate Louw
submitted that the matter was properly before me on the unopposed
roll, both the motion
papers and set down were served on the
Respondent and no answering papers were filed. Furthermore, counsel
contended that the claim
was for a liquidated amount, being costs
awarded to the Applicant in previous litigation, one was awarded 3
years ago. The
Respondent paid some of the costs awarded others
remain unpaid.
[3]
The evidence is that the Respondent filed a
Notice of Appeal, against a finding and leave was granted in 2021 but
it did nothing
thereafter, the appeal lapsed and in 2022 , the
Applicant in that instance was again awarded costs, about two
years ago.
In 2024 the Applicant demanded payment, they were
ignored, and in May 2024 it launched this application before me for
an order
for provisional liquidation. Advocate Louw for the
applicant confirmed that the papers were served, the Respondent filed
a notice to oppose, but no answering papers were filed. A
notice of set down was served. A further attempt to
delay
the finalisation of this matter, an no version by the respondent, for
either the applicant or this court to work with.
Mr Louw
contended that in August 2024, the respondent issued a summons and in
August filed a stay application to this matter.
[4]
Mr. Louw argued that the Respondent failed
to satisfy the requirements for a postponement. The application
for postponement
is made only days before the hearing there is no
explanation as to why the application for a postponement could not
have been filed
much earlier. It was argued that the
application for the postponement is again a tactic to buy more time
and delay
the finalisation of the matter.
[5]
The
Respondent applied for a postponement, pending the outcome of the
action proceedings. I noted that it was not a postponement
to file
its answering papers to the application before me. Moreover, I
noted in its papers it is alleged that it is not insolvent,
however,
the debt remained unpaid. In
Epstein
v Epstein
[1]
,
it was held that a Court has the discretion to grant or refuse the
order. In
Fedco
v Meyer
[2]
,
the Court held that actual proof of solvency was payment of the
debt. At the hearing of the application counsel was unable
to
provide an explanation for the Respondents failure to apply for the
postponement much earlier. It was not disputed that the
Respondent
had sufficient time from the date of service of the application,
after it filed its notice to defend, several months
ago. Mr.
Louw submitted that the Respondents have not met the first
requirement for a postponement, in addressing the time
delay.
[6]
I noted that there are no facts before this
Court which demonstrated the Respondent’s bona fides in
bringing this application
for postponement. No proper reasons
are before this Court, and given the congested court roll, if the
matter is postponed
pending the outcome of the trial, the Respondent
would have gained a further two to four years. Effectively
there is the
danger to the unsuspecting public, as it continues to
operate in insolvent circumstances.
[7]
It was not disputed that the set down of
both the application and the date on the unopposed roll was served.
The Respondent’s
counsel Advocate Du Plessis, submitted that
there was a stay application and that the matter must be postponed
pending the outcome
of that application.
[8]
Mr. Louw argued that this was another
tactic brought late in the proceedings to obstruct the Applicants, he
submitted that there
was no nexus between the action and the
liquidation application. Mr. Louw reminded me that the dispute
between the parties commenced
back in 2014 regarding the ownership of
certain parking bays in a complex development.
JUDGMENT
[9]
I
was satisfied that the matter was properly before me on the unopposed
roll, I dismissed the application for a postponement, there
was no
substantive application before me. The practise is established
and known that there must be a substantive application
for
postponement of a matter. Counsel for the Respondent, proffered
that he was instructed only to apply for a postponement
of the
application for provisional liquidation, on grounds that there was a
stay application pending, he could not take the matter
further.
I noted Mr. Louw’s submissions that the there is no nexus
between the action proceedings, for constitutional
damages and the
application before me. In
London
Estates (Pty) Ltd v Nair
[3]
the court stated that in provisional liquidation there needs to be
only a prima facie proof of facts. I noted Mr. Louw’s
submission that where a claim is based on a liquid debt, there is a
presumption of insolvency in this instance. The claim
is for
payment of costs awarded in earlier litigation and as taxed by the
taxing master.
[10]
The Respondent in its grounds of appeal
stated that the order I granted was invalid in that I addressed the
stay application, which
is pending and that it was not before me.
Furthermore, it was submitted that I overlooked the fact that the
Applicant’s
security was stale, it was paid after the dies
permitted in the Companies Act, and this itself precluded the
Court from granting
this order for provisional liquidation.
Another ground for appeal was that the Respondent was denied its
constitutional
right to a fair hearing. The Respondent’s
failure to raise those defences earlier, all within its knowledge
begs the
question, why it failed to file answering papers timeously,
or at all, where it could have presented the several defences it now
raises in this leave application.
[11]
I gained the impression that the
application for a postponement was an attempt to buy more time, there
was nothing of substance
before this Court to grant the application.
[12]
Based
on the facts before me, I am not persuaded that the Applicant’s
leave to appeal satisfies the requirements for a leave
to appeal as
set out in s17(1)(a)
[4]
, where
an Applicant must demonstrate it has probabilities of success to a
certainty, not just some chance. In
MEC
for Health, Eastern Cape v Mkhitha and Another
[5]
,
it was held:
“
Once
again it is necessary to say that leave to appeal, especially to this
court, must not be granted unless there are reasonable
prospects of
success. Section 17(1)(a) of the Superior Courts Act 10 0f 103
makes it clear that leave to appeal may only
be given where the Judge
concerned is of the opinion that the appeal
would have a reasonable prospect of
success, or there is some compelling reason why it should be heard
.”
“
An
Applicant for leave to appeal must convince a Court on proper grounds
that there is a reasonable prospect or realistic chance
of success on
appeal. A mere possibility of success, an arguable case, or one
that is not hopeless is not good enough. There
must be sound rational
basis to conclude that there is a reasonable prospect of success on
appeal.”
[13]
The debt was due and payable years ago, it
is a liquid debt, there is no chance of any further debate on
liability. Mr. Louw’s
submissions that there was no nexus
between the action proceedings and the application for provisional
liquidation remained unchallenged.
The stay application is in
my view having considered the history and behaviour of the
respondents another attempt to delay the
finalisation of the matter.
Advocate du Plessis’s submissions that the court is denying the
Respondent its constitutional
right to a hearing, is rejected, blame
must lie at the door of the Respondent or its legal representatives.
[14]
I am of the view that the points/grounds
raised in the notice of appeal were known and could have been raised
in opposing papers,
or in a substantive application for a
postponement. There is no other compelling reason for the
appeal to be heard.
Order
[15]
Accordingly, the application for leave to
appeal is refused. I found no reason to deviate from the
general rule that costs
must follow the successful party.
MAHOMED J
JUDGE OF THE HIGH
COURT
JOHANNESBURG
For
the Applicant:
Mr. M. Louw
instructed
by
Jaco Roos Inc Attorneys
For
the Respondent: Mr. J. C. Viljoen
Instructed
by
Jacques Classen Inc Attorneys
Date of hearing: 24
January 2025
Date
of Judgment: 4 February 2025
[1]
1987 (4) DS 606 ( C )
[2]
1988 (4) SA 207
ECD at 212 F-H
[3]
1957 (3) SA 591
N at 593
[4]
Act 10 of 2013
[5]
[2016]ZASCA 176 (25 November 2016)
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