Case Law[2025] ZAGPJHC 205South Africa
Merchant Commercial Finance 1 (PTY) Limited v Berlex 96 CC (2022/17020) [2025] ZAGPJHC 205; [2025] 2 All SA 570 (GJ) (3 March 2025)
Headnotes
HEADNOTE : KOPSTUK
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Merchant Commercial Finance 1 (PTY) Limited v Berlex 96 CC (2022/17020) [2025] ZAGPJHC 205; [2025] 2 All SA 570 (GJ) (3 March 2025)
Merchant Commercial Finance 1 (PTY) Limited v Berlex 96 CC (2022/17020) [2025] ZAGPJHC 205; [2025] 2 All SA 570 (GJ) (3 March 2025)
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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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Policy
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case
Number:
2022/17020
(1)
REPORTABLE: YES
(2) OF
INTEREST TO OTHER JUDGES: YES
(3)
REVISED: YES
3 March 2025
In the matter between:
MERCHANT
COMMERCIAL FINANCE 1
Applicant
(PTY) LIMITED
and
BERLEX
96 CC
Respondent
FLYNOTE :
SLEUTELWOORDE
Ex
parte Order
–
Judicial
authorisation for the perfecting of a general notarial bond –
fundamental principles dictate that material provisions
in an ex
parte order should be subject to a rule nisi rather than being framed
as a final order.
Court
Orders
–
Principles of
interpretation – An ex parte order that appears to confer final
relief must be interpreted in a manner consistent
with its underlying
purpose, contextual considerations, and overarching legal
principles—ensuring alignment with fundamental
rights of
fairness and due process.
Ex
parte Relief
–
Protection of
creditor interests – The law does not require that an order
authorising the perfecting of a general notarial
bond be final -
Established precedent confirms that confirmation of a rule nisi
post-liquidation does not disturb the principle
of concursus where
the creditor lawfully obtained possession of hypothecated assets
under an interim order prior to liquidation.
Urgent
ex parte applications
–
Principles
restated – Applicant to expressly make out a case that the
matter is urgent, must justify the degree of deviation
from the
normal rules of court and must in particular justify application
without notice.
Evidentiary
threshold in ex parte application for perfecting of security
- Applicant in a precarious position where
respondent is a company – Specific time of presentation of
application for liquidation
to court (when it is issued) is upon
granting of order the time of commencement of the winding-up –
voluntary winding up
commences when the special resolution for the
winding up of the company is registered by the CIPC – applicant
usually do
not have knowledge of other creditors’ intention to
launch liquidation applications, nor of the intention of the company
to go into voluntary liquidation – The usual circumstances
surrounding an application for permission to perfect a security
would
often constrain an applicant to make rather generalised allegations
about the possibility of the debtor being liquidated
– However,
an applicant cannot rely on pure conjecture or an
ipse
dixit –
Applicant must disclose
all information at its disposal relevant to the debtor’s
financial position and financial behaviour
(such as its pattern of
compliance or non-compliance with its financial obligations) –
There should at least be evidence
that the debtor is trading in
insolvent circumstances or cannot pay its debts in the normal course
of business, and that there
is a risk or reasonable apprehension of
liquidation – setting the evidentiary bar too high may result
in an applicant not
obtaining the redress it is entitled to.
Obligations
of full and frank disclosure
–
The
duty of an applicant in ex parte proceedings – courts have
reaffirmed that non-disclosure of material facts in an ex parte
application may warrant the rescission of the relief granted,
irrespective of whether the applicant was otherwise entitled to the
order sought.
Court’s
supervisory role in applications to authorise perfecting of notarial
bonds and
parate executie
-
Process is
vulnerable to the abuse of the process of court - Supervisory role of
the courts is of the utmost importance in preventing
abuses –
Court to be jealous of its role in this regard and any attempt by a
litigant to undermine the court’s effective
supervision over
this process should not be countenanced.
HEADNOTE : KOPSTUK
In this matter the
applicant applied for an ex parte order authorising it to perfect
certain notarial bonds i.e., a special notarial
bond and a general
notarial bond, both registered in 2016. The applicant also sought to
perfect two unregistered “bonds”
i.e., two documents
executed on behalf of the respondent, which would have become
notarial bonds upon registration of the bonds
by the Registrar of
Deeds. The applicant disclosed the non-registration of the bonds to
the court but contended that it was entitled
to perfect the bonds
notwithstanding non-registration. On the return date of the rule
nisi
the applicant conceded that it was not entitled to an order on
the basis of the unregistered bonds.
The applicant alleged
that the respondent was indebted to it in excess of R21 million in
terms of a deed of suretyship in respect
of the debts of another
company, who was the principal debtor. The principal debtor failed to
comply with its payment obligations
towards the applicant and went
into liquidation. This rendered the respondent liable to the
applicant and entitled the applicant
to obtain an order authorising
it to perfect its general notarial bond (the special notarial bond
already affording real security
in the form of a pledge in terms of
the Security by Means of Movables Act, 1993) by taking possession of
the respondent’s
movable assets.
The applicant obtained
such an order ex parte
.
This part of the order appeared to be
granting final relief and was not expressly made subject to a rule
nisi
. The interim order prohibited the selling of the assets
by way of
parate executie
pending confirmation of the rule
nisi
, while the rule
nisi
called upon the respondent to
show cause why the applicant should not be permitted to deal with the
assets in terms of the bonds
and why it should not be ordered to pay
the costs of the application on the agreed attorney and client scale.
The applicant alleged
that due to the failure by the respondent to pay the applicant the
amount due and payable to it, it was unable
to pay its debts in the
normal course and was allegedly trading in insolvent circumstances.
The applicant stated that
“in the light of the threats of liquidation by the respondent’s
suppliers” the liquidation
of the respondent in the very near
future was imminent, if not in progress already. Thereby it created
the impression that it was
aware of other threats of liquidation. In
response to a rule 35(12) and (14) notice to provide documentary
evidence of the threats,
the applicant gave a nonsensical answer and
discovered no documents in this regard. There was also no other
evidence of imminent
liquidation proceedings by other creditors. The
applicant also failed to deal in its founding affidavit with the
degree of urgency
of the application and provided no other
justification for bringing an ex parte application.
In its answering
affidavit the respondent initially raised certain defences against
the merits of the applicant’s claim, which
it did not persist
with on the extended return date. On the extended return date, the
respondent confined its opposition to the
confirmation to the rule
nisi
to the following issues:
·
The first issue raised was that a previous order,
granting the applicant leave to take possession of the assets in
terms of the
registered notarial bonds, was granted 8 February 2019.
The applicant executed the previous order and took possession of the
respondent’s
movable assets after that order was granted.
Consequently, so the argument ran, the applicant’s security was
perfected by
the previous order and there was no need for the order
sought in the present application. It was also argued that the matter
was
res judicata
and
the respondent attempted to demonstrate that all the requirements for
a defence of
res judicata
was
present.
·
Second, the respondent relied on the principles
set out in
Schlesinger v Schlesinger
regarding the disclosure of facts by an applicant
in an ex parte application. It was argued that there was material
non-disclosure
by the applicant of facts which might have influenced
the court granting the interim order herein, and that this court
should exercise
its discretion in favour of the discharge of the
order.
·
The third issue raised was that the only
justification for bringing the application ex parte was conjecture
that the respondent
may be liquidated by its suppliers and that the
order ought not have been sought on that basis.
Held, as to the effect
of the interim order:
The substantive portion
of an interim ex parte order should in principle not be final in
effect. It should be subject to a rule
nisi
and confirmation
on the return date.
To the extent that the
interim order appeared to be final in effect, the order must be
interpreted in accordance with the principles
set out in
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012 (4) SA
593
(SCA).
On a proper
interpretation of the entire order against the purpose of the order,
the purpose being to grant interim relief, the
language of the rule
nisi
, which required the respondent to show cause why the
applicant should not be able to “deal with the assets” in
terms
of the notarial bonds should be widely interpreted to include
the initial taking of possession, as opposed to confining it to the
disposal of the assets. Such interpretation does not unduly stretch
the language used and also upholds the respondent’s
constitutional right to fairness in the adjudication of disputes.
There was also no need
for the ex parte order to be a final order (not subject to rule
nisi
)
to protect the creditor’s security in the event of a
liquidation or sequestration. It is settled law that confirmation of
rule
nisi
after liquidation or sequestration not disturbing
concursus
where the creditor lawfully took possession of
hypothecated assets in terms of the interim order prior to
liquidation or sequestration.
Consequently, it was held
that the entire substantive part of the order was interim and subject
to confirmation on the return date.
Held, as to the
granting of a previous order authorising the perfecting of the
notarial bond and execution thereof and defence of
res judicata:
On the facts before the
court, relied on by both parties on the return date, the previous
order was executed, the applicant took
possession of assets in terms
of the general notarial bond and established a pledge. However, the
parties subsequently agreed that
the assets would be returned to the
respondent for purposes of conducting its business, which agreement
was implemented. On the
common cause facts, the applicant
relinquished possession and control of the pledged assets and lost
its pledge. Under circumstances
where the respondent was once more in
possession of the assets it was a constitutional imperative for the
applicant to obtain the
court’s
imprimatur
to take
possession and dispose of the assets by way of
parate executie.
Under the circumstances
where the parties effectively jettisoned the previous order, there is
no room for a defence of
res judicata
.
Held, as to the
question of non-disclosure by the applicant in the ex parte
application:
The court restated the
relevant principles relating to non-disclosure in ex parte
applications as set out in cases such as
Schlesinger v Schlesinger
1979 (4) SA 342
(W),
National Director of Public Prosecutions
v Basson
2002 (1) SA 419
(SCA) and
Recycling and Economic
Development Initiative of South Africa NPC v Minister of
Environmental Affairs
2019 (3) SA 251
(SCA).
The failure by the
applicant to draw the court’s attention to the fact that it was
not entitled to an order based on the unregistered
bond, as conceded
on the return date, was a serious dereliction of the applicant’s
duty to the court.
The non-disclosure of the
fact that the assets were returned to the respondent by agreement
after the previous order was granted,
might have influenced the court
and caused it to question the wisdom of granting an order ex parte
.
Such non-disclosure was material.
Held, as to the
alleged lack of evidence of imminent liquidation of the respondent as
justification for ex parte application:
An applicant seeking to
perfect a general notarial bond is in a precarious position where
respondent is a company. The specific
time of presentation of
application for liquidation to court (when it is issued) is upon
granting of order the time of commencement
of the winding-up and
voluntary winding up commences when the special resolution for the
winding up of the company is registered
by the CIPC. The applicant
usually does not have knowledge of other creditors’ intention
to launch liquidation application
against respondent, nor of the
intention of the company to into voluntary liquidation. The usual
circumstances surrounding an application
for permission to perfect a
security would often constrain an applicant to make rather
generalised allegations about the possibility
of the debtor being
liquidated.
However, an applicant
cannot rely on pure conjecture or an
ipse dixit
; an applicant
must disclose all information at its disposal relevant to the
debtor’s financial position and financial behaviour
(such as
its pattern of compliance or non-compliance with its financial
obligations). There should at least be evidence that the
debtor is
trading in insolvent circumstances or cannot pay its debts in the
normal course, and that there is a risk or reasonable
apprehension of
liquidation.
Setting the evidentiary
bar too high may well result in an applicant not obtaining the
redress it is entitled to.
In
casu
, the applicant stated in its
founding affidavit that “in the light of the threats of
liquidation by the respondent’s
suppliers” the
liquidation of the respondent in the very near future was imminent,
if not in progress already. Thereby it
created the impression that it
was aware of other threats of liquidation. This allegation was,
however, an unsubstantiated
ipse dixit
.
In response to a rule
35(12) and (14) notice to provide documentary evidence of the
threats, the applicant gave a nonsensical answer
and discovered no
documents in this regard. There was also no other evidence of
imminent liquidation proceedings by other creditors.
The applicant also failed
to deal in its founding affidavit with the degree of urgency of the
application and provided no other
justification for bringing an ex
parte application.
Consequently, the
applicant was in the first place not entitled to an order on an ex
parte basis.
Held, as to the
exercise of the court’s discretion:
It is settled law that
unless there are very cogent practical reasons why an order should
not be rescinded, the court will always
frown on an order obtained ex
parte on incomplete information and will set it aside even if
relief could be obtained
on a subsequent application by the same
applicant. In exercising its discretion, the court must consider the
extent of the non-disclosure,
the question whether the judge hearing
the ex parte application might have been influenced by proper
disclosure, the reasons for
non-disclosure and the consequences
of setting the provisional order aside.
The fact that the
applicant is entitled to the main relief, does not stand in the way
of a court discharging an ex parte order due
to the failure by the
applicant to comply with its duty of disclosure.
It is settled law that
parate executie
in respect of movable assets by agreement is
in principle valid (the exception being where the terms of the
agreement are
contra bonos mores)
, subject to the court’s
imprimatur
, which is rightly described as a “constitutional
imperative”. The current state of the law is that a creditor
can obtain
an order authorising the perfecting of the security (i.e.,
taking possession) in terms of a general notarial bond (and for that
matter any other instrument of security in respect of movable
property), and an order authorising
parate executie,
without
first obtaining a judgment.
This process is
vulnerable to the abuse of the process of court. In this regard, the
supervisory role of the courts is of the utmost
importance in
preventing abuses. A court must be jealous of its role in this regard
and any attempt by a litigant to undermine
the court’s
effective supervision over this process should not be countenanced.
In the present matter,
the applicant effectively undermined the court’s function of
supervision by approaching the court ex
parte without making out a
case for an ex parte hearing, effectively misled the court to grant
an order based on the unregistered
bonds it was not entitled to and
failed to disclose facts which in all probability have led to a
refusal of the order on an ex
parte basis
.
Having regard to the
factors to be taken into consideration the court found no reason to
exercise its discretion in favour of the
applicant. To the contrary,
there were compelling reasons why the interim order should be
discharged in its entirety.
ORDER
(1)
The respondent’s application to strike out,
dated 8 January 2024, is dismissed, with costs.
(2)
The interim order granted on 17 May 2022 is
discharged in its entirety;
(3)
The costs reserved in the course of this matter
shall be costs in the application;
(4)
The applicant is ordered to pay 75% of the
respondent’s costs of the application on Scale B.
JUDGMENT
D MARAIS AJ
The
ex parte
order
granted on 17 May 2022
[1]
This is the extended return date of an order
granted 17 May 2022 in favour of the applicant against the
respondent, authorising
the applicant to take and retain at the
expense of the respondent possession of all or any moveable assets of
the respondent, wherever
they may be found as security for any
amounts owing to the applicant in terms of the following registered
Notarial Bonds “or
yet to be registered” with the
Registrar of Deeds, Johannesburg:
a.
Special Notarial Covering Bond Number: B[...];
b.
Special Notarial Covering Bond Protocol Number:
9[...]
c.
Notarial General Collateral Covering Bond Number
B[...]; and
d.
Notarial General Collateral Covering Bond Protocol
Number: 9[...] (collectively referred to as ‘notarial bonds’).
[2]
The applicant was ordered to hold these assets in
pledge in terms of the rights granted to the applicant in terms of
the notarial
bonds, but which rights, pending the hearing on the
return, were limited to the following extent:
a.
The applicant could not compromise the claims;
b.
Any asset attached by the applicant pursuant to
the terms of the notarial bonds could only be sold if such sale was
authorised by
the court, and on such terms and conditions as the
court, in granting such authorisation may impose, save that the
applicant may
sell any trading stock belonging to the respondent, in
the normal course of business, without obtaining the leave of the
court;
and
c.
The applicant was ordered to keep complete record
of all the transactions relating to the trading stock, and to make
such available
to the respondent on five days’ notice.
[3]
The sheriff was authorised and instructed to
assist the applicant in the execution of the order.
[4]
The respondent was ordered to direct and hand over
possession of its assets to the sheriff.
[5]
A rule
nisi
was
issued calling upon the respondent to furnish reasons, if any, on 11
August 2022, as to why an order in the following terms
should not be
made final:
a. that the
applicant be authorised to deal with the movable property in terms of
the notarial bonds; and
b. that the
respondent be ordered to pay the costs of this application on the
scale as between attorney and client.
[6]
Furthermore, orders were granted regarding the
service of the order and the respondent’s right to anticipate
the return date
or set the matter down for reconsideration was set
out.
[7]
The order purports to be final in effect with
regards to the authority granted to the applicant to perfect the
pledge by taking
possession of the hypothecated assets, and this
aspect of the ex parte order does not appear to be subject to
confirmation on the
return date of the rule
nisi
.
[8]
In terms of the order, the respondent was merely
called upon to show cause why the applicant should not be permitted
to deal with
the respondent’s movable assets in terms of the
notarial bonds and why it should not be ordered to pay the costs of
the application.
[9]
In
this regard, the formulation of the order sought by the applicant was
unfortunate. This is, because the order was granted ex
parte
,
fundamental
principles dictate that the order authorising the applicant to
take possession of the respondent’s assets
should not have been
a final order but should also have been subject to confirmation on
the return date.
[1]
[10]
To the
extent that the substantive part of the interim order appeared to be
final in effect, the order must be interpreted in accordance
with the
principles set out in, inter alia,
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2]
;
consideration must be given to the language used in the light of the
ordinary rules of grammar and syntax; the context in which
the
provision appears; the apparent purpose to which it is directed and
the material known to those responsible for its production.
Where
more than one meaning is possible each possibility must be weighed in
the light of all these factors. The process is objective,
not
subjective. A sensible meaning is to be preferred to one that leads
to insensible or unbusinesslike results or undermines the
apparent
purpose of the document.
[11]
On a
proper interpretation of the entire order against the purpose of the
order, the purpose being to grant interim relief, the
language of the
rule
nisi
,
which required the respondent to show cause why the applicant should
not be able to “deal with the assets” in terms
of the
notarial bonds, should be widely interpreted to include the initial
taking of possession, as opposed to confining it to
the disposal of
the assets. Such interpretation does not unduly stretch the language
used and also upholds the respondent’s
constitutional right to
fairness in the adjudication of disputes.
[3]
A different interpretation would result in the objectionable
conclusion that the court largely jettisoned the principle of
audi
alteram partem
,
which could never have been the intention.
[12]
In
view of the judgment of the Supreme Court of Appeal in
Contract
Forwarding (Pty) Limited v Chesterfin (Pty) Limited and Others
[4]
there
is no need to make any such final ex parte order to protect a
creditor’s security rights in the face of the possible
liquidation or sequestration of the estate of a debtor; a
confirmation of a rule
nisi
after
the liquidation or sequestration commenced, where the creditor in
terms of an interim order lawfully took possession of the
debtors
assets
before
commencement,
does not detract from the security established before commencement,
nor can it be regarded as disturbing the
concursus.
[13]
During the hearing of the extended return date
before me, the matter was approached by both parties on the basis
that the entire
order was subject to confirmation in terms of the
rule
nisi
.
I am grateful to counsel for this approach, which I am of the view
was the right and fair approach to adopt.
[14]
Consequently, I shall deal with the matter on the
basis that the entire order was provisional and subject to
confirmation.
The applicant’s
claim
[15]
The applicant’s claim against the respondent
is premised on an unlimited deed of suretyship executed by the
respondent in
favour of the applicant on 26 October 2016, securing
the indebtedness of JP Krugerrand Deals (Pty) Limited (JPKD) toward
the applicant.
The respondent bound itself as surety and co-principal
debtor in terms of this deed of suretyship. On 21 April 2022 JPKD was
indebted
to the applicant in the amount of R21 028 152.00
in terms of a loan facility. The respondent was, in turn liable to
the
applicant in this amount in terms of the deed of suretyship.
[16]
The respondent initially alleged that the person
who signed the deed of suretyship on its behalf was not authorised to
bind the
respondent as surety. However, this defence was not relied
on by the respondent during the hearing of the matter and it has to
be accepted that the respondent was indeed liable to the applicant as
alleged by the applicant.
The notarial bonds
[17]
The applicant relied on the notarial bonds
referred to above in its ex parte application. It is common cause
that a special mortgage
bond was registered by the respondent in
favour of the applicant on 17 November 2016, specially hypothecating
the movable assets
listed in an annexure to the bond as security for
the respondent’s debt owing to the applicant. On 17 November
2016, the
respondent also caused a general notarial bond to be
registered, hypothecating all its movable assets, wherever it may be
found,
to the applicant.
[18]
In obtaining the ex parte order the applicant also
relied on two unregistered bonds, a special notarial bond and a
general notarial
bond which was executed by the respondent during
2022, but which was not registered by the Registrar of Deeds.
[19]
The applicant informed the court at the hearing of
the ex parte application that, it was entitled to enforce the
unregistered bonds,
merely on the basis that they were executed by
the respondent. However, at the hearing of the of the extended return
date, the
applicant disavowed reliance on the unregistered bonds and
only sought an order based on the registered bonds.
The applicant’s
pledge in terms of the special registered notarial bond
[20]
In
terms of Section 1 of the Security by Means of Movable Property
Act
[5]
the aforesaid registered
notarial bond provided real security in the form of a pledge of the
assets listed in the bond, without
the necessity of the applicant
being in possession of the assets.
[21]
Therefore, there was no need for the applicant to
bring an application for an order authorising it to take possession
of the specially
hypothecated assets to perfect the pledge. This is
because its pledge over the specially hypothecated assets had already
been fully
established.
[22]
In its founding affidavit the applicant indicated
that its pledge in terms of the special notarial bond had already
been in place
by operation of law but stated that it was entitled to
attach and remove such assets in terms of the bond.
[23]
To foreshadow the issues dealt with hereunder, the
applicant did not make out any case that such relief should be
granted to it
on an ex parte basis
.
The applicant’s
right to perfect its pledge in terms of the registered general
notarial bond
[24]
The applicant’s registered notarial bond
merely constituted a pledge agreement whereby a right to be placed in
possession
of the respondent’s movable assets
(“verbintenisskeppende ooreenkoms”) was created, as
opposed to a real agreement
(“saaklike ooreenkoms”)
creating a real right (“saaklike reg”). Upon the
applicant taking possession of
the respondent’s movable assets,
the pledge would be perfected, and a real right of security created.
This would render the
applicant a secured creditor in respect of the
assets in its possession.
[25]
It is
trite law that for a pledge, in the sense of a real right, to be
established the creditor must be placed in possession or
control of
the hypothecated assets. The transfer of possession may be a physical
transfer of possession, or some form of constructive
transfer of
possession. However, transfer of possession by way of
constitutum
possessorium
i.e., the mere changing of intention on the part of the debtor to
hold the assets in possession on behalf of the creditor
while the
assets remain physically in the possession of the debtor is not
recognised as sufficient to establish a pledge.
[6]
[26]
Consequently, it is necessary for the holder of a
general notarial bond to obtain an order that authorises it to take
possession
of the respondent’s movable assets to perfect its
security. The order does not in itself perfect the pledge, it merely
authorises
the bondholder to take possession, and the act of taking
possession is what perfects the security.
[27]
In this regard the applicant was entitled to
approach this court for an order authorising it to take possession of
the respondent’s
movable assets for purposes of perfecting its
security and enforcing its other rights in terms of the notarial
bond, notably to
sell the assets by way of
parate
executie.
The unregistered
notarial bonds
[28]
Section
61 of the Deeds Registries Act
[7]
provides that a notarial bond must be registered within three months
from date of its execution.
[29]
The applicant conceded that the order should not
be confirmed in respect of the unregistered bonds.
The
ex parte
application
[30]
In the applicant’s ex parte application, the
applicant stated that the matter was urgent, in that it was
imperative that it
must take possession of the respondent’s
assets in terms of the general notarial bonds (including the
unregistered bond)
to perfect its pledge before the respondent was
liquidated. This was to ensure that it was rendered a secured
creditor before the
commencement of a liquidation.
[31]
In this regard the applicant submitted that the
respondent failed to comply with its obligations to the applicant by
failing to
make payments to the applicant was clearly unable to pay
this debt and was seemingly trading in insolvent circumstances.
Furthermore, the applicant made the allegation that the respondent
was failing to pay its other suppliers and that legal action
by the
said suppliers was imminent. The applicant stated that, “in the
light of the threats of liquidation by the respondent’s
suppliers”, the liquidation of the respondent in the very near
future was imminent, if not in progress already. Thus, on
that basis
the applicant submitted that an order authorising it to perfect its
security should be granted as a matter of urgency.
[32]
The applicant seemed to suggest that it was aware
of the threats made by the respondent’s other creditors to
liquidate it
but provided no detail of such threats. The manner in
which the applicant formulated this allegation, by relying on a
conclusion
without any supporting allegations and proof in support of
this conclusion must be regarded with scepticism.
[33]
In
this regard, the respondent served a notice on the applicant in terms
of Rule 35(12) and (14) of the Uniform Rules of Court.
[8]
In this notice the respondent, inter alia, sought discovery of
documentary evidence regarding the threats by other creditors to
liquidate the respondent. After the applicant had to be compelled by
an order of court to answer, the applicant responded
in a
terse and non-sensical manner by simply stating “to be
instituted”. From this it became clear that the applicant
never
had any documentary confirmation of an impending liquidation. Nor is
there any evidence of any verbal confirmation by any
supplier.
[34]
The speculative statement made by the applicant
that liquidation proceedings may have been in progress already is
rather puzzling,
as if this was the case, the applicant’s
attempted perfecting of its security would be a futile exercise. This
is due to
the deemed commencement of a winding up, as which will be
discussed fully herein below. However, this was another statement
made
by the applicant that should be doubted.
[35]
In its founding affidavit, the applicant simply
attempted to make out a case that the matter was urgent. Contrary to
established
practice, the applicant made no attempt to demonstrate
what the appropriate degree of deviation from the normal Rules of
Court
was. Importantly, no attempt was made to justify the
bringing of the application on an ex parte basis. It was simply
stated
that the matter was urgent.
The respondent’s
objections against the confirmation of the interim order
[36]
At the commencement of the hearing the court was
informed that the question whether the interim order should be
confirmed would
be limited to two issues raised by the respondent.
During the argument, the issues were expanded to include a third
issue. These
issues were the following:
a. The first issue
raised was that a previous order, granting the applicant leave to
take possession of the assets in terms
of the registered notarial
bonds, was granted by Adams J on 8 February 2019. The applicant
executed the previous order and took
possession of the respondent’s
movable assets after that order was granted. Consequently, so the
argument ran, the applicant’s
security was perfected by the
previous order and there was no need for the order sought in the
present application. It was argued
that the matter was
res
judicata
and the respondent attempted to demonstrate that all the
requirements for a defence of
res judicata
was present.
b.
The second issue raised
was that the respondent relied on the principles set out in
Schlesinger
v
Schlesinger
[9]
regarding the disclosure
of facts by an applicant in an ex parte application. It was argued
that there was material non-disclosure
by the applicant of facts
which might have influenced the court granting the interim order
herein, and that this court should exercise
its discretion in favour
of the discharge of the order. The detail of the alleged
non-disclosure will be dealt with hereunder.
c. The third issue
that was argued was that the only justification for bringing the
application on an ex parte basis was conjecture
that the respondent
may be liquidated by its suppliers and that the order ought not to
have been sought on that basis.
The respondent
abandoned other defences raised in the answering affidavit
[37]
The respondent raised certain defences to the
merits of the application in its answering affidavit. Inter alia it
alleged that the
person who represented the respondent in executing a
deed of suretyship in favour of the applicant, had no authority to do
so.
[38]
However, in confining its opposition to the
confirmation of the rule
nisi
to
the abovementioned issues, the respondent jettisoned any other
defence it raised in its answering affidavit.
The first issue
raised by the respondent: res judicata and no need for a new order
[39]
In relation to the first issue set out above, it
was common cause that the previous order was granted by Adams J on 8
February 2019,
and that such order was executed by the applicant
having been placed in possession of the relevant movable assets.
[40]
However, in reply the applicant placed evidence
before the court that subsequent to the execution of the previous
order, the parties
agreed that possession of the assets would be
returned to the respondent, to enable the respondent to utilise the
assets in conducting
its business. The applicant’s
counter-argument was that the pledge in terms of the registered
general notarial bond was lost
when the applicant relinquished
possession. Consequently, it was argued that the applicant was
obliged to re-apply for an order
authorising it to take possession of
the respondent’s movable assets to perfect the pledge.
[41]
The respondent brought an application to strike
out this evidence in the applicant’s replying affidavit.
This was on
the basis of a contention that the applicant was
attempting to make out a case in reply. However, at the commencement
of the hearing,
the respondent indicated that it was not persisting
with such application, and that the application was withdrawn.
[42]
The application to strike out was correctly
abandoned, as the applicant’s response in reply was a
legitimate response to the
allegations made in the respondent’s
answering affidavit.
[43]
In any event, the abandonment of the application
to strike out was not made entirely with altruistic intentions, as
the respondent
in argument sought to rely on the facts set out in the
replying affidavit in arguing that those facts should have been
disclosed
in the ex parte application and that the applicant failed
to do so, contrary to its obligations.
[44]
Turning to the merits of the first issue, it is
clear on the facts before me that the pledge which was created by the
perfecting
of the general notarial bond pursuant to the previous
order became lost when the applicant returned the assets to the
respondent
by agreement.
[45]
The respondent argued that even if that was the
case, the previous order was extant and could be executed again.
Thus, it was argued
that there was no need for a second order and,
moreover, that the matter was
res
judicata
.
[46]
The issue of
res
judicata
was not sufficiently canvassed
in the papers before me. Whilst the order made by Adams J on 8
February 2019 was placed before me,
there is no information available
pertaining to the issues that were addressed in that matter, such as
what the act of default
which was relied on by the applicant. In the
present application, the applicant relied on events, such as the
liquidation of the
principal debtor as an act of default, which
occurred subsequent to the granting of the previous order by Adams J.
In the circumstances,
whilst it is clear that the parties to the two
matters are the same, it is unclear whether there is a commonality of
causes of
action in the two matters. Whilst the relief that was
sought in the two matters seems to be substantially the same, in the
circumstances
of the present matter the relief sought in this matter
is in reality not the same, especially insofar as the perfecting of
the
general notarial bond is concerned.
[47]
A court order does not exist in a vacuum,
unrelated to utility and time. It exists in the context of its
purpose at a given moment
in time. Thus, identically worded orders
granted on different times may effectively grant different relief.
[48]
The previous order, as far as the general notarial
bond is concerned, authorised the applicant to take possession of the
respondent’s
movable assets in possession of the respondent at
that given time.
[49]
In my
view there was a compelling reason why the applicant could not simply
rely on the previous order to take possession of the
respondent’s
movable assets. In
Juglal
NO and Another v Shoprite Checkers (Pty) Limited t/a Franchise
Division
[10]
the Supreme Court of Appeal upheld the validity of a notarial
covering bond which entitled the creditor, in the event of a default
on the part of the debtor to take possession of the debtor’s
business and assets as security for the debt, to sell the assets
and
to apply the proceeds in settlement of the debt.
[50]
The court
a quo
had granted the creditor an order perfecting its
security. The court
a
quo
held that the common law, insofar as stipulations for
parate
executie
are concerned, was that
stipulations, which were not so far-reaching as to be contrary to
public policy, were valid and enforceable
;
that,
as a matter of practice, creditors seeking to enforce such
stipulations take the precaution of applying for judicial sanction
before doing so; and that the debtor can avail himself of the court’s
assistance in order to protect himself against prejudice
at the hands
of the creditor.
[51]
On
appeal, Heher JA held that this exposition seemed to be a correct
summary of the state of the common law, with the one qualification
that the ‘matter of practice’ referred to by the court
a
quo
was
in fact a constitutional requirement and that creditors not in
possession are
obliged
to
apply for judicial sanction.
[11]
[52]
In the present matter, after the applicant
executed the previous order and took possession of the respondent’s
assets. The
parties agreed that the assets would be returned to the
respondent and used by the respondent in conducting its business. On
the
evidence before, and in the absence of any evidence that the
return of the movable assets was conditional in any way, or that the
applicant exerted some form of effective control over the assets
after the return thereof to the respondent. Not only did the pledge
become lost, but the parties effectively jettisoned the court order
by agreeing to reverse its effect.
[53]
The interim order granted herein authorised the
seizure of the respondent’s movable assets which were in its
possession at
that point in time (in 2022), which was approximately
three years after the previous order was granted in 2019.
[54]
Under the circumstances, I am of the view that it
would have been inappropriate and unlawful for the applicant to
simply have instructed
the sheriff to execute the previous order once
more and take possession of the respondent’s movable assets. In
my view, in
the circumstances of this case this would have been
tantamount to spoliation.
[55]
Under the circumstances, I am of the view that it
was indeed not only necessary, but a constitutional imperative for
the applicant
to approach the court afresh to obtain an order
authorising it to take possession of the respondent’s assets.
[56]
Where the parties effectively jettisoned the
previous order, there is no room for a defence of
res
judicata.
[57]
Consequently, the respondent’s first
argument is dismissed.
The respondent’s
second and third argument: non-disclosure and the allegation of
looming liquidation
[58]
The second and third issues raised by the
respondent are intertwined to an extent, thus will be dealt with
together.
[59]
In
Schlesinger
[12]
the
court referred to the exposition of the topic of disclosure in ex
parte applications in
Herbstein
and Van Winsen on The Civil Practice of the Superior Courts in
South Africa
[13]
,
where it was stated that the applicant must make full disclosure of
all material facts
,
which
might
affect
the
granting or otherwise of
an ex
parte
order.
[60]
The authors recorded that
the
utmost
good faith must be observed by litigants making ex
parte applications in placing material facts before the court;
so much so that if an order has been made upon an ex
parte application and it appears that material facts have been
kept back, whether wilfully and
mala
fide
or negligently,
which
might
have
influenced the decision of the court whether to make an order or not,
the court has a discretion to set the order
aside
with
costs on the ground of non-disclosure. It should, however, be noted
that the court has a discretion and is not compelled, even
if the
non-disclosure was material, to dismiss the application or to set
aside the proceedings.
[61]
After referring to this summary and analysing
certain judgments, the court came to the conclusion that unless there
are very cogent
practical reasons why an order should not be
rescinded, the court will always frown on an order obtained ex
parte on
incomplete information and will set it aside even if
relief could be obtained on a subsequent application by the same
applicant.
[62]
Schlesinger
was
followed by the Supreme Court of Appeal in National
Director
of Public Prosecutions v Basson
[14]
and
Recycling
and Economic Development Initiative of South Africa NPC v Minister of
Environmental Affairs
[15]
[63]
In the latter judgment Cachalia JA held that the
applicant must be scrupulously fair in presenting its own case.
It must also
speak for the absent party by disclosing all relevant
facts it knows or reasonably expects the absent party would want
placed before
the court.
[64]
The
applicant must disclose and deal fairly with any defences of which it
is aware or which it may reasonably anticipate. it must
disclose all
relevant adverse material that the absent respondent might have put
up in opposition to the order. It must also exercise
due care
and make such enquiries and conduct such investigations as are
reasonable in the circumstances before seeking ex parte
relief. The
applicant may not refrain from disclosing matter asserted by the
absent party because she believes it to be untrue.
And even where the
ex parte applicant has endeavoured in good faith to discharge its
duty, it will be held to have fallen
short if the court finds
that matter it regarded as irrelevant was sufficiently material to
require disclosure. The test is objective.
[16]
[65]
The
learned Judge proceeded to hold that points in favour of the absent
party should not only be drawn to the Judge's attention
but must be
done clearly: “
There
should be no thought in the mind of those preparing affidavits that
provided that somewhere in the exhibits or in the affidavit
a point
of materiality can be discerned, that is good enough.
”
'
[17]
[66]
The ex
parte
litigant
should
not be guided by any notion of doing the bare minimum. It should not
make disclosure in a
way
calculated
to deflect the Judge
'
s
attention from the force and substance of the absent respondent
'
s
known or likely stance on the matters at issue. Generally, this will
require disclosure in the body of the affidavit. The
Judge who
hears an ex parte application, particularly if urgent and voluminous,
is rarely able to study the papers at length and
cannot be expected
to trawl through annexures in order to find material favouring the
absent party.
[18]
[67]
Regarding
the exercise of the court’s discretion in the case of
non-disclosure, the court approved the dictum referred to
above in
Schlesinger
but
also referred to
NDPP
v
Phillips
[19]
where
it was held that in exercising its discretion, the court must
consider the extent of the non-disclosure, the question whether
the
Judge hearing the ex parte application might have been influenced by
proper disclosure, the reasons for non-disclosure and
the
consequences of setting the provisional order aside.
[20]
[68]
the respondent argued that although the applicant
informed the court that the unregistered bonds were not registered,
it failed
to draw the court’s attention to the fact that the
applicant was not entitled to relief based on such bonds. To the
contrary,
the applicant claimed to be entitled to relief and obtained
an order for the enforcement of the unregistered notarial bonds. This
was evidently a failure by the applicant to make the necessary
disclosure. This resulted in the order in its present form being
sought and granted erroneously. I agree with this contention.
[69]
After this issue was raised by the respondent in
its answering affidavit, the applicant in reply indicated that it
would not seek
confirmation of the rule
nisi
in respect of the two unregistered
bonds. However, having correctly made this concession, the applicant
did not have the interim
order corrected, and allowed the erroneously
sought interim order to stand until the hearing of the return date.
[70]
The respondent also submitted that the failure by
the applicant to disclose the existence of the previous order was a
material non-disclosure
which might have influenced the court in
granting the order. The argument was that the Judge considering the
matter should have
been placed in a position to decide whether the
previous order was extant, whether the matter was
res
judicata
, and whether a new order is
justified or necessary under the circumstances.
[71]
I have already found that the applicant was
obliged to bring a new application for the court’s
imprimatur
.
That did not relieve the applicant of the duty to make disclosure or
the order and the subsequent events. It was common cause
that that
the assets which was attached in terms of the court order were
voluntarily handed back to the respondent. Whilst this
should have
been disclosed to the court, I am of the view that such disclosure
would in all probability have persuaded the court
that the granting
of a new order was still necessary.
[72]
This non-disclosure may, however, be relevant on a
different level. In this regard a distinction must be made between
the special
and general notarial bond. There was no need for the
applicant to bring an application for authority to perfect the
special bond;
its pledge was already fully established in respect of
the specially hypothecated assets. It needed to take possession of
the assets,
not for purposes of preserving the assets or preventing
its dissipation, but for purposes of eventually selling the assets by
way
of
parate executie
.
The interim order prohibited the disposal of the assets pending
confirmation of the rule
nisi
.
Consequently, there was no need for the applicant to seek an order to
take possession of the specially hypothecated assets by
way of an ex
parte application. It was already pointed out that the applicant
failed to make any allegation that the respondent
was secreting or
disposing of assets which could have justified an ex parte
application. In my mind a disclosure of the level of
co-operation
between the parties in shifting control over the assets would have
influenced the court against granting an order
on an ex parte basis
in respect of the special bond.
[73]
The general notarial bond is on a different
footing. The purpose of the ex parte application was to obtain
authority to take possession
of the respondent’s assets to
perfect its pledge, under circumstances where the general notarial
bond did not provide real
security.
[74]
This is intertwined with the respondent’s
criticism of the applicant’s assertion that due to possible
liquidation proceedings
against the respondent, the matter was
urgent.
[75]
I am
of the view that a court should be mindful of the fact that an
applicant in the position of the applicant
in
casu
(in
relation to the general notarial bond) is in a most precarious
situation. The winding-up of a company commences at the exact
time
when the application for winding-up was presented to the court (i.e.,
to the registrar when it was issued).
[21]
A voluntary winding-up commences when the special resolution for the
winding up of the company is registered by the CIPC.
[22]
[76]
A creditor in the position of the applicant
usually has no knowledge of the actions of other creditors of the
debtor and of intended
liquidation applications. The same applies to
voluntary liquidations. The result is that an applicant who gives
notice of an application
for an order authorizing the perfecting of a
notarial bond runs the risk that another unsecured creditor, upon
learning of such
application, may present a liquidation application
before the hearing, and regardless of when the liquidation order is
granted,
effectively prevent the applicant from perfecting its
security before the commencement of the winding up. The same applies
to a
voluntary winding-up.
[77]
This
does not mean that all is lost; the holder of a general notarial bond
still has some preference in the liquidation,
[23]
but it would not be a secured creditor.
[78]
The usual circumstances surrounding an application
for permission to perfecting a security would often constrain an
applicant to
make rather generalised allegations about the
possibility of the debtor being liquidated. Hardly ever would such an
applicant have
any concrete evidence of a looming liquidation
application by another creditor. The best it can usually do is to set
out the financial
position of the debtor as far as it is known to it,
and if the information points to the debtor being unable to pay its
debts in
the normal course of business, hypothesise that the debtor’s
liquidation or sequestration is imminent.
[79]
In
this regard it is of importance that a company which continues to
trade and incur debt whilst unable to pay its debts in the
normal
course of business may well be carrying on its business recklessly
with the result that anyone who took part in the management
of the
company in his fashion may be held personally liable.
[24]
Under such circumstances the company may well be obliged to place
itself in liquidation on an urgent basis.
[80]
An applicant can obviously not rely on pure
conjecture or an
ipse dixit.
A
creditor perfecting its security, must disclose all information at
its disposal relevant to the debtor’s financial position
and
financial behaviour (such as its pattern of compliance or
non-compliance with its financial obligations). There should at least
be evidence that the debtor is trading in insolvent circumstances or
cannot pay its debts in the normal course, and that there
is a risk
or reasonable apprehension of liquidation. However, setting the
evidentiary bar too high may well result in an applicant
not
obtaining the redress it is entitled to.
[81]
A
respondent against whom an order is granted ex parte is not entirely
deprived of the benefit of
audi
alteram partem
.
Audi
alteram partem
can
be attained in ways different ways than prior notice of an
application. In
National
Director of Public Prosecutions and Another v Mohamed NO and
Others
[25]
the
Constitutional Court held that the common law has recognised both the
great importance of the
audi
rule as
well as the need for flexibility, in circumstances where a rigid
application of the rule would defeat the very rights
sought to be
enforced or protected. In such circumstances, the court issues a
rule
nisi
calling
on the interested parties to appear in court on a certain fixed date
to advance reasons why the rule should not be made
final, and at
the same time orders that the rule
nisi
should
operate immediately as a temporary order, pending the return
date.
[26]
The
court also held that the flexibility and utility of the
rule
nisi
acting
at the same time as an interim order, has been recognised by
the courts and it has been applied to modern problems in
commercial suits.
[27]
[82]
Additionally, the respondent against whom an order
has been granted ex parte has the right under Rule 6 of the Unform
Rules of Court
to set the matter down for reconsideration and/or
anticipate the return date with 24 hours’ notice to the
applicant.
[83]
In the present matter the applicant demonstrated
that the respondent is indebted to it in the amount of approximately
R21 million,
which the respondent failed to pay despite demand. As
such it was justified in alleging that the respondent unable to pay
its debts.
[84]
However, despite it being clear that the
respondent was unable to pay its debts to the applicant the
applicant, for obvious reasons,
did not intend liquidating the
respondent at that time. It wanted to perfect its security instead.
[85]
As already referred to above, the applicant made
the highly dubious, and unsubstantiated, assertion that the other
creditors intended
to liquidate the respondent. The respondent
submitted that the fact that it has not been liquidated, despite a
number of years
having lapsed since the granting of the interim
order, confirms the lack of veracity of these allegations made by the
applicant.
If there were sufficient evidence substantiating a risk of
liquidation, this fact would not necessarily detract from the
existence
of the risk at the relevant time. However, in the present
matter, the applicant has made dubious and unsubstantiated
allegations
that liquidation was imminent.
[86]
In this regard, I hold that the applicant’s
allegation of an imminent liquidation was a completely
unsubstantiated
ipse dixit
.
It was also misleading, in that the applicant attempted to create the
impression that it was relying on known information, whilst
there is
no evidence that it actually had such information.
[87]
Consequently, while the applicant was generally
entitled to an order authorising it to deal with the specially
hypothecated property
in terms of the special notarial bind bond, it
was not entitled to such an order on an ex parte basis.
[88]
I also hold that in respect of the general bond
the applicant did not meet the threshold for demonstrating that its
right may be
irreparably frustrated by an imminent liquidation of the
respondent, which would justify the granting of an ex parte order.
[89]
Furthermore, I hold that the applicant’s
non-disclosures were of such a material nature that it might have
influenced the
court not to grant an order on an ex parte basis.
Discretion
[90]
The above conclusions present the obvious problem
as to the correct outcome and order to be granted by me, in the
exercise of a
judicial discretion.
[91]
The fact that the applicant is in principle
entitled to the relief it is seeking is an obvious source of concern.
However, it is
trite law that the fact that the applicant is entitled
to the main relief, does not stand in the way of a court discharging
an
ex parte order due to the failure by the applicant to comply with
its duty of disclosure.
[92]
A factor which I regard as fundamentally important
is that the applicant was not in the first place entitled to an order
on an ex
parte basis, based on the case it presented.
[93]
The failure by the applicant to draw the court’s
attention to the provisions of the Deeds Registries Act and by
incorrectly
asserting that it was entitled to enforce the
unregistered notarial bonds was a serious deviation from the expected
standard of
disclosure. As stated by Cachalia JA in the authority
referred to above, there was indeed a positive duty on the applicant
to draw
the court’s attention to the fact that the respondent
had a defence in respect of these bonds.
[94]
The failure to disclose the fact that the parties
previously came to an arrangement regarding the assets and that the
applicant
returned the assets to the respondent after the previous
order was granted was a serious non-disclosure which would have
raised
considerable doubt as to the wisdom of making an ex parte
order, to such an extent that it is probable that the order would
have
been refused, and the applicant would have been compelled to
bring its application on notice.
[95]
I take into consideration that the applicant’s
security in terms of the special notarial bond is extant in terms of
the Security
by Means of Movables Act, 1993, regardless of the
existence of any order herein. Furthermore, in respect of the general
bond, the
applicant enjoys the preference it has in terms of section
102 of the Insolvency Act, also regardless of any order.
[96]
Our
law does not permit
parate
executie
in
respect of immovable property. A judgment must first be obtained and
then executed, subject to all the safeguards contained in
the Rules
of Court. On the other hand, it is settled law that
parate
executie
in
respect of movable assets by agreement is in principle valid (the
exception being where the terms of the agreement are
contra
bonos mores)
,
subject to the court’s
imprimatur
,
which is rightly described as a “constitutional
imperative”.
[28]
The
current state of the law is that a creditor can obtain an order
authorising the perfecting of the security (i.e. taking possession)
in terms of a general notarial bond (and for that matter any other
instrument of security in respect of movable property), and
an order
authorising
parate
executie,
without
first obtaining a judgment.
[97]
This process is vulnerable to the abuse of the
process of court. In this regard, the supervisory role of the courts
is of the utmost
importance in preventing abuses. A court must be
jealous of its role in this regard and any attempt by a litigant to
undermine
the court’s effective supervision over this process
should not be countenanced.
[98]
In the present matter, the applicant effectively
undermined the court’s function of supervision by approaching
the court ex
parte without making out a case for an ex parte hearing,
effectively misled the court to grant an order based on the
unregistered
bonds it was not entitled to and failed to disclose
facts which in all probability have led to a refusal of the order on
an ex
parte basis
.
[99]
Having regard to the factors to be taken into
consideration in the exercise of my discretion as set out in
Phillips,
referred
to above, if find no reason to exercise my discretion in favour of
the applicant. To the contrary, there are compelling
reasons why the
interim order should be discharged in its entirety.
The application to
strike out
[100]
The respondent abandoned the application to strike
out at the hearing of the matter. Consequently, it ought to be
dismissed with
costs.
Costs
[101]
Due to the applicant’s conduct in this
matter and the fact that the interim order will be discharged, the
applicant is in
principle liable for the costs of this application.
However, the costs for which applicant will be liable ought to be
limited to
an extent.
[102]
The respondent raised certain defences in its
answering affidavit which evidently did not have merit and was
abandoned. This lead
to unnecessary costs being incurred in replying
thereto in the replying affidavit and preparation for argument
thereon. In this
regard, in the exercise of my discretion regarding
costs, 25% of the respondent’s costs shall be disallowed.
[103]
Costs were reserved on a number of occasions in
the course of this matter. Such costs shall be costs in the
application.
Order
In the circumstances the
following order is granted:
(5)
The respondent’s application to strike out,
dated 8 January 2024, is dismissed, with costs.
(6)
The interim order granted on 17 May 2022 is
discharged in its entirety;
(7)
The costs reserved in the course of this matter
shall be costs in the application;
(8)
The applicant is ordered to pay 75% of the
respondent’s costs of the application on Scale B.
DAWID MARAIS
ACTING JUDGE OF THE
HIGH COURT
JOHANNESBURG
For the Applicant: Adv AJ
Reyneke instructed by BDP Attorneys
For the Respondent: Adv
AL Roeloffze instructed by Couzyns Incorporated
Date
of Hearing: 27 November 2024
Date
of Judgment: 03 March 2025
[1]
The
same question arose in
Industrial
Development Corporation of South Africa Limited v Bokone
Group of Companies
2023
JDR 2707 (GJ) in which Korf AJ resorted to an interpretation of the
relevant part of the order as interim, subject to confirmation
on
the return date.
[2]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]
ZASCA13;
2012 (4) SA 593
(SCA).
[3]
Section
34 of the Constitution of the Republic of South
Africa, 1996.
[4]
Contract
Forwarding (Pty) Ltd v Chesterfin (Pty) Ltd and Others
[2002]
ZASCA 143; 2003 (2) SA 253 (SCA).
[5]
Section
1 of
Security
by Means of Movable Property Act 57 of 1993 provides:
“
(1)
if a notarial bond hypothecating corporeal movable property
specified and described in the bond in a manner which renders
it
readily recognizable, is registered after the commencement of
this Act, in accordance with the Deeds Registries Act
1937 (Act No.
47 of 1937), such property shall–
(a)
Subject to any encumbrance resting upon it on the
date of registration of the bond; and
(b)
Notwithstanding the fact that it has not been
delivered to the mortgagee, be deemed to have been pledged to the
mortgagee as effectually
as if it had expressly been pledged and
delivered to the mortgagee.”
[6]
Contract
Forwarding (Pty) Ltd
above
n 3
.
[7]
Section
61(1)
of the
Deeds Registries Act 47 of 1937
provides:
“
Every
notarial bond executed before or after the commencement of this Act
shall be registered in a deeds registry
within the
period of three months after the date of its execution
or within such extended period as the court on
application allow.
”
[8]
Rules
35(12) and (14) of the Uniform Rules of Court provide:
“
(12)
Any party to any proceeding may at any time before the hearing
thereof deliver a notice as near as may be in
accordance with
Form 15 in the First Schedule to any other party in whose pleading
or affidavits reference is made to
any document or tape recording to
produce such document or tape recording for his inspection
and to permit him to make
a copy or transcription thereof.
Any party failing to comply with such notice shall not, save with
leave of the court,
use such document or tape recording in
such proceeding provided that any other party may use such
document or tape
recording.
(13) ….
(14) After
appearance to defend has been entered, any party to any action may,
for purposes of pleading, require
any other party to
make available for inspection within five days a clearly
specified document or tape recording
in his possession which is
relevant to a reasonably anticipated issue in the
action and to allow a copy or transcription
to be made thereof.”
[9]
Schlesinger
v Schlesinger
1979
(4) SA 342
(W) at 348E – 350B
[10]
Juglal
NO and Another v Shoprite Checkers (Pty) Ltd t/a OK Franchise
Division
[2004]
ZASCA 33; 2004 (5) SA 248 (SCA).
[11]
See also:
SA
Bank of Athens Ltd v Van Zyl
[2006]
ZASCA 2; 2005 (5) SA 93 (SCA).
[12]
Schlesinger
above
n 8.
[13]
Dendy
and Loots et al: Herbstein and Van Winsen on
The
Civil Practice of the Superior Courts in South Africa
2ed
at 94.
[14]
National
Director of Public Prosecutions v Basson
[2001]
ZASCA 111
;
2002 (1) SA 419
(SCA) para 21.
[15]
Recycling
and Economic Development Initiative of South Africa v Minister of
Environmental Affairs
;
Kusaga
Taka Consulting (Pty) Ltd v Minister of Environmental Affairs
[2019]
ZASCA 1; 2019 (3) SA 251 (SCA).
[16]
Ibid
para
47.
[17]
Ibid para 48.
[18]
Ibid
para
49.
[19]
Phillips
and Others v National Director of Public Prosecutions
[2005]
ZACC 15
;
2003 (6) SA 447
(SCA)
2003 (2) SACR 41.
[20]
Ibid
p
ara
52.
[21]
Section
348 of the Companies Act No 61 of 1973 provides:
“
348
Commencement of winding-up by Court
“
A
winding-up of a company by the Court shall be deemed to commence at
the time of the presentation to the Court of the application
of for
the winding-up,”; See also
Development
Bank of Southern Africa Ltd v Van Rensburg and Others NNO
2002
(5) SA 425 (SCA)
[22]
Section 352 of the
Companies Act, note 21 above.
[23]
Section 102
of the
Insolvency Act 24 of 1936
.
[24]
Section 424 of the
Companies Act above n 21.
[25]
National
Director of Public Prosecutions and Another v Mohamed NO and Others
[2003]
ZACC 4
; BCLR 476 (4) SA 1 (CC).
[26]
National
Director of Public Prosecutions
above
n 25 at para
28.
[27]
Id at
para
29.
[28]
See the authorities
referred to above.
sino noindex
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