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# South Africa: South Gauteng High Court, Johannesburg
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[2025] ZAGPJHC 216
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## Liquidators (Small and Medium Enterprises Bank Limited) v Met Bank Limited (formally Metropolitan Bank of Zimbabwe) (A2023/043983)
[2025] ZAGPJHC 216 (25 February 2025)
Liquidators (Small and Medium Enterprises Bank Limited) v Met Bank Limited (formally Metropolitan Bank of Zimbabwe) (A2023/043983)
[2025] ZAGPJHC 216 (25 February 2025)
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sino date 25 February 2025
SAFLII
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Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
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SAFLII
Policy
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: A2023/043983
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
DATE:
25 February 2025
SIGNATURE:
In
the matter between:
THE
LIQUIDATORS (SMALL AND MEDIUM
Appellant
ENTERPRISES
BANK LIMITED) [S.M.E LIMITED
(IN
LIQUIDATION)]
and
MET
BANK LIMITED (FORMALLY METROPOLITAN
Respondent
BANK
OF ZIMBAMBWE)
Summary:
Appeal – Randburg Magistrate Court’s judgment setting
aside the registration of a foreign obtained judgment from the
High
Court in Namibia. Registration was made in terms of section 3(1) of
the
Enforcement of Foreign Civil Judgments Act 32
of 1988 (“Foreign Judgment Act”) on 26 November 2021 by
the Clerk of the
Court. Subsequent registration was challenged in
terms of section 5(1) of the Foreign Judgment Act as a ‘nullity’
for
lack of compliance with the requirements of the said Act. The
Magistrate read Rule 9(3)(e) of the Magistrate Courts Rules as a
cornerstone of the registration in the absence of the application for
service notice in the Foreign Judgment Act. This Court found
that
Rule 9(3)(e) cannot be applied independently of the intersection of
section 3(2) and 5(2) of the Foreign Judgment Act. Also,
the Clerk of
the Court justifiable registered the judgment as evidenced by the
stamp and the name of the Clerk of the Court. The
issue of the
certificate also found no relevance because of the commonality in
exchange rates between South Africa and Namibia.
This Court, as an
Appeal Court with limitations on non-interference with the Court
a
quo
judgment, established that the
Magistrate committed a misdirection in the interpretation of the law.
JUDGMENT
NTLAMA-MAKHANYA AJ
(NOKO J concurring)
Introduction
[1]
This application concerns an appeal against the whole judgment and
order delivered
by Magistrate Booysen of the Randburg Magistrate
Court on 7 December 2022 under case number: 28828/2021. The Appellant
is the Liquidators
(Small and Medium Enterprises Bank Limited) [S.M.E
Limited in Liquidation] and the Respondent (Met Bank Limited) is a
commercial
bank that is operating in Zimbabwe. The Respondent’s
Counsel and its Attorneys of Record withdrew from the matter. The
Respondent
was served with the notice of set down but did not appear
hence the appeal proceeded in its absence.
[2]
The crux of the appeal is the judgment of the Court
a quo
that
set aside the registration of a foreign obtained judgment from the
High Court in Namibia which was made an order of court
in terms of
section 3 of the Enforcement of Foreign Civil Judgments Act 32 of
1988 (Foreign Judgments Act). The said judgment then
became an
effective South African judgment in terms of section 4 of the Foreign
Judgment Act. In this case, the Appellant obtained
a judgment in
Namibia against the Respondent which was then registered in terms of
section 3 of Foreign Judgment Act by the Clerk
of Randburg Magistrate
Court. The registration of the said judgment was challenged by the
Respondent in terms of section 5(1) of
the said Act. The Court
a
quo
set aside the registration of the judgment after it
established that the prescripts of section 3 of the Foreign Judgment
Act relating
to registration of foreign judgments were not followed.
[3]
Pursuant to the setting aside of the registration of the said
judgment, the Appellant
filed a notice of appeal on 7 December 2022
contending that the Magistrate erred, and the order was not supposed
to have been granted.
On this basis, it is imperative that I provide
a brief background on this matter.
Background
[4]
The Appellant, having been granted an order against the Respondent by
the High Court
in Namibia under case number:
HC-MV-COV-MOT-GEN-2019/00105 on 29 October 2020 sought an order to
have the judgment registered in
South Africa in terms of section 3 of
the Foreign Judgment Act. The Namibian judgment ordered the
Respondent to,
inter alia
, pay the Appellant an amount of
N$1,028,286,906.13 (One Billion Twenty-Eight Million Two Hundred and
Eighty-Six Thousand Nine Hundred
and Six Namibian Dollars and
Thirteen Cents); together with interest and costs from July 2017. On
26 November 2021, the Appellant
successfully registered the Namibian
judgment in the Randburg Magistrates Court, as it is required to do
so in terms of section
3 of the Foreign Judgment Act. Having the
Namibian judgment so registered, it became an enforceable South
African judgment against
the Respondent in terms of section 4 of the
said Act.
[5]
However, as alleged, the Respondent was not aware that the judgment
was registered.
Allegedly, as soon as the Respondent came to the
knowledge of its registration, an application was brought in terms of
section
5(1) of the Foreign Judgment Act to have it set aside. The
application was heard by Magistrate Booysen (“the Magistrate”)
on 7 December 2022. The Magistrate, in an
ex tempore
judgment,
rescinded the registration on the basis that the requirements set out
in section 3(1) of the Foreign Judgment Act were
not complied with.
The Appellant argued that the Court a
quo
erred in granting
the Respondent’s application on the basis that the registration
was
void
.
Before the Court a
quo
[6]
In the Court
a quo
, without reproducing the Magistrate’s
reasoning on the decision made, after an intense analysis of the
review of the registration
process, the Magistrate established that
the registration of the judgment fell ‘foul’ in not
following the requirements
of section 3(1) of the Foreign Judgment
Act as well as Rule 43(B)(2)(b) of the Rules of the Magistrates
Courts.
[7]
The Magistrate proceeded with the consideration of the merits of the
application in
this matter and gave reasons to the Respondent’s
evidence pertaining to the registration of the foreign judgment. The
first
point of departure was to read section 5(1) of the Foreign
Judgment Act into the context of Rule 43(3)(e) of the Magistrate
Courts
Rules with reference to the allegations that:
[7.1]
First, the service was not affected. The Magistrate considered the
Respondent’s contention that
the application was defective in
that it was brought outside the stipulated time frames. The Court
a
quo
considered the implications of section 5(2) of the Foreign
Judgment Act which requires an application to be brought within 21
days
after the notice of service. The Magistrate reasoned that the
Foreign Judgment Act does not have an inherent process regarding
service. As expressed by the Magistrate, this meant that when the
application was brought it was dealt with in terms of Rule 9 of
the
Magistrate Courts Rules which regulate the service process, notices
and other documents. According to the Magistrate, since
the
Respondent is a juristic person, the process of notices is regulated
by sub-rule 3(e) wherein the Sheriff’s proof of
service found
application. Further, there was no report of the unwillingness of an
employee to accept service with the consequent
result of the Sheriff
having to proceed and affix the notice to the door on the registered
business address or place, principal
place of business. The
Magistrate found difficulty in the Sheriff’s return of service
that states ‘after a diligent
search’ whereas the
Respondent was no longer at its registered place of business. As a
result, with no stipulated process
in the Foreign Judgment Act, Rule
9(3)(e) was found to be of application. In essence, drawing from the
Magistrate’s analysis
of section 5(2) of the Foreign Judgment
Act, there is no ‘legal vacuum’ relating to effecting
service in the light
of the silence of the Foreign Judgment Act as
the Rules of the Magistrates Court fill the void.
[7.2]
Secondly, another contentious issue about the signing of the judgment
by the Clerk of the Court which
was not affixed to the notice. The
Magistrate was of the view that whether the notice was signed or not
was not defective or fatal
to the application. The rationale for such
finding is because the stamp that was on the registered judgment was
reflective of the
name of the Clerk of the Court and was therefore
sufficient.
[7.3]
Thirdly, the final point considered by the Magistrate was the
certification of the local currency
which is equivalent to that of
Namibian currency by a banking institution in South Africa that was
not attached when it was registered.
[1]
The Respondent averred that they were not served with the
certification of the registered judgment in local currency or in
effect
the service was not effective. The Magistrate, having read
Rule 9(3)(e) into the record together with the provisions of Rule
43(2)(b)
of the Magistrates Court Rules and section 3(4) of the
Foreign Judgment Act, was surprised by the Appellant’s
contention
that there was no need for the certificate. Despite the
fierce argument, the Appellant deemed it necessary to file the same
later
in the name of Geraldine Ramiya, in her capacity as Executive
Manager, Corporate and Investment Banking Global Markets of the
Standard
Bank of South Africa Limited. The Magistrate was of the firm
view that the certification that confirms the unchanged or pegged
currency exchange rate does not exempt the party registering the
foreign judgment from filing a required certificate. It was the
Magistrate’s reason that a ‘foreign obtained judgment
that is made out in a foreign currency, should be accompanied
by a
certificate on registration of the judgment’. Therefore, the
Magistrate found that there was no compliance with Rule
43(2)(b) read
with section 3(4) of the Foreign Judgment Act.
[8]
The Court
a quo
found compelling reasons for the argument made
by the Respondent and rejecting that of the Appellant. The Respondent
(Met Bank)
as a company, was found to have made a proper case for the
setting aside of the registration for lack of compliance with the
Foreign
Judgment Act.
[9]
The Appellant was aggrieved by the judgment of the Court
a quo
and applied for leave to appeal which was granted. As a result, this
Court is now focusing on the merits of the grounds of appeal
relating
to the registration of the foreign obtained judgment as submitted by
parties.
Submission
by parties
[10]
Before this Court, the Appellant contended that the setting aside of
the registration of the
foreign judgment as a ‘nullity’
by the Magistrate was misplaced in that.
[10.1] the
Respondent’s application was defective because it was not
brought within the prescribed timelines as envisaged
in section 5(2)
which mandates the lodging of the application to be brought within 21
days after service of notice referred to
in section 3(2) of the
Foreign Judgment Act.
[10.2] The
Magistrate refused to admit the Appellant’s supplementary
affidavit that was meant to introduce information
which was
unavailable at the time of filing the original affidavit. In this
regard, the supplementary affidavit detailed the ambit
of information
relating to the contempt of Respondent regarding the release of funds
from the Dollar Account in breach of the South
African Court Order
and an interdict that was granted in terms of section 8 of the
Foreign Judgment Act.
[10.3] The
Appellant contends that after the order granted by the Namibian High
Court, Liquidators notified ABSA Bank Limited
(ABSA) of the South
African judgment. ABSA acted on this notification and particularly
prohibited payments from the following Met
Bank’s Dollar
account numbers:
(i)
0[...];
(ii)
0[...]2;
(iii)
0[...]3; and
(iv)
0[...]4.
The prohibition serves as
an interdict as envisaged in section 8 of the Foreign Judgment Act
wherein a notice issued in terms of
section 3(2) ‘operates
against any judgment debtor on whom the notice was served and against
any person who has such knowledge
not to remove or dispose of any
assets of the judgment debtor if such removal or disposal would
prejudice the execution of the
judgment’.
As further expressed by
the Appellant, following an enquiry into the affairs of the SME Bank
on 25 May 2022, a subpoena which was
issued by Commissioner, Ms
Eunice Baloyi, who attended and on behalf of ABSA, the Respondent’s
account was reflective of
the payments of USD 650 000 on 26 November
2021 and USD 799 703.55 on 15 December 2021. As the Appellant argued,
the prohibition
could have served as an interdict and have prevented
any monies from flowing out of, inter alia, Met Bank’s Dollar
Account.
Considering the interdict, the Liquidators are unaware how
Met Bank achieved the payment out of its account. However, the
Liquidators
are aware that the instruction for the payment of USD 799
703.55 to be effected from the Met Bank Dollar Account was given by
Met
Bank’s employee, Tendai Chaitezvi, on 8 December 2021.
On 30 November 2021, the
South African judgment was already served on Met Bank’s
registered address by the Sheriff and with
knowledge and receipt of
the said judgement, the Respondent still instructed ABSA in December
2021 to give effect to the USD 799
703.55 transaction. The amount of
the USD 650 000, as well as USD 799 703.55 – both of which were
paid out of Met Bank’s
Dollar Account after the interdict was
granted – have not been repaid into the Met Bank Dollar
Account, or at all. As a result,
Met Bank is and remains in contempt
of the interdict.
[10.4] The
Respondent also failed to justify the prayer for alternative remedy
for ‘stay in execution’ by not
demonstrating that there
is a pending appeal against the Namibian Judgment. Secondly, the
factual basis to justify the exercise
of the discretion in its favour
has not been set out.
[11]
However, the Respondent opposes the application arguing that:
[11.1]
there was neither service nor notification about the registration of
the foreign judgment obtained by the
Appellant against the Respondent
in the High Court of Namibia as required by the Foreign Judgment Act.
The Respondent was also
not served with the actual purported
registration of the said foreign judgment. The first-time the
respondent saw the purported
registration of the foreign judgment was
on the 15
th
of December 2021 when the same was emailed to
it by its attorneys from the appellant’s attorneys. This much
should be common
cause from the correspondence between the appellant
and the respondent's attorneys on 14 December 2021 and 15 December
2021.
[11.2] The
Appellant, on 29 July 2022 served and filed their supplementary
affidavit which was meant to introduce a
completely new cause of
action that was not covered in the previous hearings of the matter.
This was done without the leave of
the Court
a quo
, thus
prejudicing the Respondent. The filing was dismissed by the Court a
quo and the matter proceeded with the cause in the main
action being
granted in favour of the Respondent. The Appellant, thereafter, filed
this application with grounds that are less
persuasive for this Court
arguing that:
[11.2.1]
the Appellant seems not to be challenging the ground that the
Respondent relied on in their founding papers in the Court
a quo
that the notice of the registration was not served on the respondent
and only learned about the purported registration of the judgment
from the third party.
[11.2.2]
the supplementary affidavits that the Appellants were seeking
to slip
into the court file without the leave of the court, firstly,
introduced a completely new cause of action that was not foreshadowed
or covered in any of the previous hearings of this matter and
secondly without the leave of Court
a quo
thus prejudicing the
Respondent. The Appellants did not make a formal application in terms
of Rules 55(1)(a) of the Magistrates
Court Rules which states that:
“
Every
application shall be brought on notice of motion supported by an
affidavit as to the facts upon which the applicant relies
for
relief”.
[11.2.3]
the non-filling of the certificate in terms of Magistrates Court
Rule
43B results in registered judgment being a nullity, thus rendering
the purported notice
ex-facie
invalid, and this honorable
court must not give effect to it. In fact, the Appellant did not ask
the court a quo to condone the
late filing of the certificate.
[11.2.4]
the amounts stated in the notice are both in Namibian dollars.
However, there is no certificate issued by a bank registered in South
Africa stating the rate of exchange prevailing at the date
of the
judgment. There is also no averment made by Ms Pearson’s on her
affidavit when the registration was made to the effect
that the
certificate is attached as per Rule 43B of the Magistrates Court
Rules.
[11.2.5]
the Respondents reiterate the fact that they were not served
with the
actual purported registration of the application by the Appellant in
terms of the Foreign Judgment Act and the Rules.
The first-time the
Respondent saw the purported registration of the foreign judgment was
on the 15th of December 2021 when the
same was emailed by the
Respondent’s attorneys. This much should be a common cause from
the correspondence between the Appellant
and the Respondent's
attorneys on 14 December 2021 and 15 December 2021. Even so, by the
admission of the Appellants, the said
purported application which was
served on or about 15 December 2021 did not comply with the provision
of the Act and/or alternatively
incomplete as the certificate of the
registered Bank of South Africa was only filed with the Court
a
quo
on or about 22 December 2021. Therefore, when the Respondents
filed their application to set aside the registration of the Foreign
Judgment on or about 24 December 2021 with the Court a
quo
,
where within the 21 days period that is stated by the Act.
[11.2.6]
the Appeal of the Judgment of the High Court of Namibia is pending
and is still before the Supreme Court of Appeal. The matter was
before the Supreme Court of Appeal on or about 27 March 2023. It
is
void of the truth that the matter has lapsed. Even though the Act
stipulates that the registration remains effective irrespective
of
whether the appeal is still pending, the Respondent submits that the
failure of the court to consider the fact that this matter
is before
the highest court in the land in Namibia will be very prejudicial to
the Respondent.
[11.2.7]
there is also no merit on the contempt ground of appeal because
of
the difficulty to comprehend why the Appellant has not gone after
ABSA to recover what it paid itself after advising the Respondent
that it cannot transact on the account based on the registration of
the foreign judgment. The Respondent is therefore the victim
of
ABSA’s conduct hence it brought the application in December
2021 because of the bias in giving effect to the judgment.
[12]
The centrality of the argument as submitted by both parties was the
rationality of the Magistrate’s
judgment and its order relating
to the registration of the foreign obtained judgment which was
declared a ‘nullity’.
Drawing from the afore-grounds of
appeal and as presented during oral argument, Counsel for the
Appellant narrowed the focus to
the:
(i)
registration of the foreign judgment;
(ii)
Service not being effected;
(iii)
Judgment not signed by the Clerk of Court;
(iv)
requirements of and for the issuing of the
Certificate by a banking institution when the judgment was
registered; and
(v)
rules of exchange rate.
[13]
At the risk of repetition, these grounds were a determinant of
compliance for registration of
the foreign obtained judgment. They
also serve as a catalyst against which to determine the rationality
of the Magistrate’s
decision in the setting aside of the
registration of the Namibian Judgment. For this Court to ventilate
properly the issues raised,
it is also essential to set the tone by
reviewing the framework in place relating to the registration of
foreign judgments and
the impact it would have in determining the
outcome of this matter.
Legal framework
[14]
The gist of this case is laid on the status of the Foreign Judgment
Act in regulating the registration
of foreign judgments in South
Africa. The said registration is preceded by the application of the
Foreign Judgment Act itself.
This appeal touches on the core content
of the application of the Foreign Judgment Act itself as entailed in
section 2(1) that
deals with the application of the Act which
provides that:
(1)
This Act shall apply in respect of judgments given
in any country outside the Republic which the Minister has for the
purposes of
this Act designated by notice in the Gazette.
[15]
This is a guide to the registration and enforcement of foreign
judgments wherein the first determinant
is for the court to establish
whether the Foreign Judgment Act is applicable in respect of an
application for the registration
of judgment that emanates from a
particular jurisdiction. The determinant is not taken in a ‘vacuum’
but considers
the broad legal and constitutional framework of the
Republic that seek to ensure that South African courts are to guard
against
compromising the country’s laws.
[16]
The application of the Foreign Judgment Act sets a pathway for the
registration of the foreign
judgment and is of direct link to section
3 which provides that:
(1)
Whenever a certified copy of a judgment given
against any person by any court in a designated country is lodged
with a clerk of
the court in the Republic, such clerk of the court
shall register such judgment in the prescribed manner in respect of:
(a)
the balance of the amount payable thereunder,
including the taxed costs awarded by the court of the designated
country;
(b)
the interest, if any, which by the law or by order
of the court of the designated country concerned is due on the amount
payable
thereunder up to the time of such registration;
(c)
the reasonable costs of and incidental to such
registration, including the costs of obtaining a certified copy of
the judgment.
[17]
Having complied with the pre-screening process relating to the
applicability of the Foreign Judgment
Act and the rationality of the
registration process, the foreign judgment acquires the status of a
South African judgment as provided
for in section 4 which reads as
follows:
(1)
Whenever a judgment
has been registered in terms of section 3, such' judgment shall have
the same effect as a civil judgment of
the court at which the
judgment has been registered.
(2)
Notwithstanding anything to
the contrary in this section contained, a judgment registered in
terms of section 3 shall not be executed
before the expiration of 21
days after service of the notice referred to in section 3 (2), or
until an application in terms of
section 5 has been finally disposed
of.
The internal limitation
relating to the acquired status of waiting for the expiry of the 21
days’ notice illustrates the importance
of the
post-registration screening process of the foreign judgment.
[18]
It is my considered view that the foundations of the Foreign Judgment
Act in these provisions
mean that it is impossible for a foreign
judgment to be registered let alone the prospects of enforcement
without compliance with
the stated requirements. The content of these
provisions extend authority to the South African courts on good cause
shown and in
compliance with the requirements to register and enable
the enforcement of a foreign judgment domestically.
[19]
In
casu
, the requirements of section 3 of the Foreign Judgment
Act are indicative of the merited assurance of the local court in
ensuring
an intense scrutiny on compliance with the laws that
regulate the domestication of foreign judgments. The application for
recognition
and the consequent result for enforcement of a foreign
obtained judgment gives credence to an analysis of the cause of
action that
has been undertaken by the foreign court. It further
entails the domestication of such a judgment through the lens of the
basic
principles and laws of the Republic.
[20]
I am now satisfied that the non-exhaustive legal framework is
designed to eliminate any potential
of any party avoiding the
jurisdiction of the courts particularly in taking responsibility for
their conducts that have been intensively
analysed by that court of
foreign origin. It is this motivation that persuades me to unlock at
the subject of the appeal in this
matter. In essence, the main issue
before the Appeal Court was to determine whether the registered
foreign obtained judgment was
a ‘nullity’?
Discussion
[21]
In this matter, it is imperative that this Court moves from a premise
of an acknowledgement of
guarding against interference with the
decision of the Court a
quo
that has been intensely analysed
in giving effect to the legal question raised. This entails the
limitation of the role of the
Appeal Court to be ‘slow to
interfere’ with the judgment of the Court a
quo
unless
otherwise is proved. This carries the test endorsed by Jafta J in
Mokate v Vodacom (Pty) Ltd
2016 (6) BCLR 709
(CC), when the
Judge held:
“
Ordinarily
appeal courts in our law are reluctant to interfere with factual
findings made by trial courts, more particularly if
the factual
findings depended upon the credibility of the witnesses who testified
at the trial, [and] the cold record placed before
the appeal court
does not capture all that occurred at the trial court. The
disadvantage is that the appeal court is denied the
opportunity of
observing witnesses testify and drawing its own inferences from their
demeanour and body language. On the contrary,
this is the advantage
enjoyed by every trial court”, (
paras
37-38
).
[22]
This is the basis for caution for the Appeal Court to thread
carefully and not interfere in a
terrain that is within the
competence of the Court a
quo.
On the other hand, the Appeal
Court may interfere if it ‘emerged from the record that the
trial court misdirected itself on
the facts or that it came to a
wrong conclusion, the appellate court is duty-bound to overrule
factual findings of the trial court
so as to do justice to the case’,
(
Makate
,
para 40)
. I do not intend to go overboard
about the limited role of the Appeal Court other than applying the
‘needle-eye’ into
the legal dispute of this matter.
[23]
In foregrounding the substance of this case, it is limited to the
registration only because it
is the gist of this application, and all
other issues are the consequent results that emanate from it. It is
also settled law that
the registration of a foreign obtained judgment
is limited to the procedural safeguards of the registering country
and not the
merits of the case that have been adjudicated elsewhere
about the dispute between the parties and found to have been beyond
reproach.
[24]
In this regard, there are various grounds of appeal raised by the
Appellant, thus, for purposes
of coherence, it is my view that I
present the narrowed focal points as argued during oral argument as
noted above and not deal
with the individual grounds as listed in the
notice of appeal.
[25]
The grounds of appeal are interdependent, and their core content is
on the registration of the
foreign obtained judgment itself. This
means that the point of departure in this application was the
registration process itself
in terms of the Foreign Judgment Act and
with no other reliance for this process. It is now settled, and I am
persuaded by Corbett
J in
Jones
v Kork
[1994] ZASCA 177
;
1995
(1) SA 677
(A) that a foreign judgment and its consideration in South
Africa must meet certain requirements that will be the basis for its
enforcement and legal standing. In that case, Corbett J stated that a
foreign judgment although not directly enforceable it will
be
enforced by our courts unless:
(i)
that the court which pronounced the judgment had
jurisdiction to entertain the case according to the principles
recognised by our
law with reference to the jurisdiction of foreign
courts (sometimes referred to as 'international jurisdiction or
competence');
(ii)
that the judgment is final and conclusive in its
effect and has not become superannuated.
(iii)
that the recognition and enforcement of the
judgment by our Courts would not be contrary to public policy;
(iv)
that the judgment was not obtained by fraudulent
means;
(v)
that the judgment does not involve the enforcement
of a penal or revenue law of the foreign State; and
(vi)
that enforcement of the judgment is not precluded
by the provisions of the Protection of Businesses Act 99 of 1978, as
amended....
Apart from this, our Courts will not go into the merits
of the case adjudicated upon by the foreign court and will not
attempt
to review or set aside its finding of fact or law,"
(
page 10
;
Olsen J in
Elan Boulevard (Pty) Limited
v T Mahomed
Case No: 12451/2014).
[26]
Followed by these requirements which entailed the cause of
adjudicative action for recognition,
Corbett J contextualised the
substance of the judgment in that it is characterised by:
(i)
Finality and is not susceptible to alteration by
the Court of first instance.
(ii)
Definitive rights of the parties;
(iii)
The effect of disposing at least a substantial
portion of the relief claimed, (
page 11
and all footnotes omitted).
[27]
For the Appellant, considering these requirements, the Foreign
Judgment Act has found application
in terms of section 2(1) and the
registration as envisaged in section 3(1). In this instance, the
registration by the Clerk of
the Court after having the copy of the
judgment carries the substance of compliance with the Foreign
Judgment Act. The Namibian
Judgment delivered on 29 October 2020
under case number: HC-MD-CIV-MOTGEN-2019/00105 was registered on 26
November 2021 against
the Respondent by the Clerk of the Court. This
was indicated in the Court’s stamp date and is a clear
indication of the signature
and certification of the judgment as in
compliance with section 3 of the Foreign Judgment Act. This
contention is concretised by
the substance of Rule43B(1) of the
Magistrates Court Rules which provides that ‘… registrar
or clerk of the court
shall register that judgment by numbering it
with a consecutive number for the year during which it is filed and
by noting the
particulars in respect of the judgment referred to …on
the case cover’. ‘
[28]
It is my express conviction that the intersection of section 3(1) of
the Foreign Judgment Act
and Rule43B(1) of the Magistrates Court
Rules illustrates the adherence to the regulatory framework on
registering a foreign obtained
judgment that is not clouded by
irregularities. Particularly in this case, the Foreign Judgment Act
determines where the registration
is to be effected. Herein, it was
done at the Randburg Magistrate’s Court by the Clerk of the
Court on 26 November 2021.
The Court’s stamp date is without
doubt, demonstrates the registration of the judgment.
[29]
The registration also prescribes the number of calendar days for the
judgment debtor to be served
with the notice of registration. In this
case, as is required by the Foreign Judgment Act, the 21 calendar
days which are counted
from the date of the order cannot be discarded
in lieu of Rule 9(3)(e) of the Magistrate Court Rules. The
intersection of sections
3(2) and 5(2) of the Foreign Judgment Act
was relegated to the sphere of irrelevance as not constituting a
framework for ‘service
notice’. The Magistrate
exclusively relied on Rule 9(3)(e) of the Magistrate Courts Rules
with the intersection of the Foreign
Judgment Act’s provisions
finding no application because of the misplaced view that the Foreign
Judgment Act does not provide
for a coherent process of service. It
is my view that the Rule 9(3)(e) could not be applied and interpreted
independently of the
provisions of the Foreign Judgment Act in
determining adherence to the quality of the needed notice of service.
I further consider
that although the date of receipt and lodging of
the application is not excessive, the delay could not be detached
from the basic
principle envisaged in the Foreign Judgment Act. The
reliance on the common law principle of ‘condonation’
which require
the ‘good cause’ to be shown for the delay
whilst the application is entirely focused on the content of the
registration
of the Foreign Judgment Act will render the latter Act
not having ‘legal clutches’ to ensure advancement of its
principles.
I am not persuaded that the few days are justified in the
circumstances because the basis of the application was not purely on
registration of the judgment but an indirect avoidance to pay the
debt due. It touched on taking accountability for the merited
responsibility found by that court of foreign origin.
[30]
The fulfilment of the said requirements serves as a means for a just
and equitable order in granting
the registration of the foreign
judgment. The setting aside of the recognition of a foreign judgment
entailed a ‘sledgehammer
approach’ and missed an
opportunity to interrogate the implications of sections 3(1) and 5(1)
of the Foreign Judgment Act
in the dispute. These provisions present
an opportunity to guard against the avoidance of accountability by
the Respondent through
the ‘technical eye’ of
registration whilst an independent court of a designated country,
found the merits of the claim
giving legitimacy to the legal question
raised in the dispute. It is not for the Magistrate to adopt ‘a
good-person approach’
in the light of the impact of section
5(1) of the Foreign Judgment Act in the general overhaul of legal
regulation in South Africa.
[31]
Secondly, the issuing of the certificate was another misplaced quest
for the setting aside of
the Namibian Judgment. In this instance,
Rule43B(2)(b) of the Magistrate’s Court Rules lays the
framework for a proof of
exchange rates between countries to be
stated as a foundational requirement that would legitimise the
registration of the judgment.
This also means the proper calculations
of the exchange rates to be correctly inscribed in the issued
certificate. In this matter,
it is evident that the calculated amount
to service the debt was not in dispute. Besides, to be further
elaborated in the latter
ground, there is monetary commonality
between the two countries and therefore, the certificate issue finds
no relevance. The Respondent
adopts a ‘delaying tactic’
in servicing the debt which undermines the general principles of the
interests of justice
on the finality and implementation of the
registration and enforcement of the judgment. As a critical legal and
professional body
for the well-being of the adjudicative process, the
delaying tactics undermines the merited analysis of the facts of the
case in
the granting of the order by the foreign court. In the
context of the common exchange rates between South Africa and
Namibia, the
filing of the certificate later by the Appellant does
not render the registration a ‘nullity’. Therefore, in
fact and
in law, the certificate has no place in the adjudicative
process of this matter.
[32]
Thirdly, the argument about the exchange rates between South Africa
and Namibia does not have
a bearing in this case because of the
commonality between the two countries. Section 1 of the Bank of
Namibia Act 1 of 2020 defines
the area of commonality in this regard
as follows:
“
common
monetary area” means the area in which exchange and monetary
arrangements are co-ordinated in accordance with the Multilateral
Monetary Agreement concluded on 6 February 1992 between Namibia, the
Kingdom of Lesotho, the Republic of South Africa and the Kingdom
of
Swaziland.
[33]
On a plain reading of the provision it entails the shared aims, and
the Clerk of the Court was
abreast of this requirement and needed not
to go any further to enquire about the exchange rates in-between
these countries. The
commonality is traceable to the Multilateral
Monetary Agreement that was entered on 6 February 1992 that pegged
the rate at 1:1.
This then meant this Court, as the Counsel for the
Appellant argued, is to draw lessons as prescribed by 1(1) and 1(2)
of the Law
of Evidence Act 45 of 1988 (“the Evidence Act”),
and take judicial notice of the Multilateral Monetary Agreement as
a
reliable source in endorsing that the two countries do not have
different pegged exchange rates. I am therefore persuaded by
the
Appellant’s argument that the quest for a certificate of the
exchange rate was disingenuous.
[34]
This application gives due regard to the cross-border multi-lateral
adjudicative processes wherein
the foreign court deals with the
merits and substance of the dispute and make an order in that regard.
On the other hand, the local
court is limited to consider the
satisfaction of the requirements for the registration as prescribed
in domestic laws, in this
instance, the Foreign Judgment Act.
Therefore, the cross-border process is an acknowledgment of the scope
of functioning of each
of the judiciaries.
[35]
Therefore, I am satisfied in this case that a reasonable care and
diligence was applied by the
Clerk of the Court in the registration
of the Namibian Judgment. The language of the Foreign Judgment Act as
applied in this case
is also to be infused in the framework of the
Magistrate Courts Rules. The interdependence of the rules governing
the regulatory
process is designed to serve a common goal in
eliminating irregularities in the registration of foreign obtained
judgments. It
is my view that no prescriptive regulatory framework
should take precedence over the other as the Magistrate did in this
case by
the heavy reliance on the Magistrate Court Rules with Foreign
Judgment Act provisions being considered as of no application.
[36]
As noted above, it is settled law that the Appeal Court is generally
constrained to interfere
with the judgments and orders of the Court
a
quo
. However, this rule may be relaxed where there is a glaring
misdirection when interference by the Appeal Court can be justified.
In this case the Magistrate committed a misdirection because of the
invalidation of the registration of the judgment due to the
exclusive
use and consideration of the legal principles that are applicable in
resolving the service notice of the dispute. In
addition, the
Magistrate misapplied the interpretation of the common exchange laws
between South Africa and Namibia. This then
rendered the principles
of accountability finding no relevance regarding the registration of
the Namibian Judgment which is the
substance of the dispute between
the parties.
[37]
It is also of significance that I consider the issue of costs in this
application. It is my understanding
that, ordinarily, the costs will
follow the results which may be determined at the discretion to be
exercised by the court. The
Respondent having filed records in
opposing the application and turned around not to attend court to
argue the case, has undermined
the due processes of this Court. With
the scant resources and the constraints upon which not only this
Court functions it is inexcusable
that with readiness to proceed the
whole process could have collapsed by non-appearance. I am of the
view that the Respondent should
bear the costs of this application as
to be endorsed below.
[38]
Accordingly, the following order is made:
[38.1] The appeal
is upheld.
[38.2] The order
granted by Magistrate Booysen on 7 December 2022 under case number
28828/2021 is set aside and is replaced
with an order in the
following terms:
“
The
application is dismissed with costs, such costs to include the costs
of two counsel where so employed
.”
[38.3] The
Respondent is to pay the costs of the appeal, including the costs of
two counsel, on scale B of Uniform Rule 67.
N NTLAMA-MAKHANYA
ACTING JUDGE OF THE
HIGH COURT
JOHANNESBURG
I AGREE
MV NOKO
JUDGE OF HIGH COURT:
JOHANNESBURG
Delivery:
This judgment is issued by the Judge whose name
appears herein and is submitted electronically to the parties /legal
representatives
by email. It is also uploaded on CaseLines, and its
date of delivery is deemed 25 February 2025
.
Date
of Hearing:
28 January 2025
Date
Delivered
:
25 February 2025
Appearances:
Counsel
for Appellant
:
Adv R Heacote Sc
Instructing
Attorneys
:
Bowman Gilfillan Inc
Respondent:
Met Bank Limited
[1]
See
Rule 43B(2)(b) of the Magistrate Court Rules which provides that:
A judgment creditor
shall, together with the certified copy of a judgment referred to in
subrule (1):
if any amount payable
under the judgment is expressed in a currency other than the
currency of the Republic, file a certificate
issued by a banking
institution registered in terms of section 4 of the Banks Act, 1965
(Act 23 of 1965), stating the rate of
exchange prevailing at the
date of the judgment.
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