Case Law[2025] ZAGPJHC 390South Africa
Africas Best Foods Pty Ltd v CISA Specialita Alimentari S.R.L (2021/26828) [2025] ZAGPJHC 390 (10 March 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
10 March 2025
Headnotes
“[t]he rule applies to proceedings instituted by way of action and there can be no consolidation of an action and an application.” In Absa Bank Limited v Erasmus, the court, quoting Solar Basic Industries and apparently obiter, stated that “I align myself with these sentiments, action proceedings cannot be consolidated with application proceedings.” In Phalane N.O. and Another v Department of Co-operative Governance, Human Settlements and Traditional Affairs of the Limpopo Provincial Governance and Others, the court held that “[i]t is trite law that only actions can be consolidated.” The latter statement should be read in context
Judgment
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## Africas Best Foods Pty Ltd v CISA Specialita Alimentari S.R.L (2021/26828) [2025] ZAGPJHC 390 (10 March 2025)
Africas Best Foods Pty Ltd v CISA Specialita Alimentari S.R.L (2021/26828) [2025] ZAGPJHC 390 (10 March 2025)
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sino date 10 March 2025
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION,
JOHANNESBURG
CASE NO.: 2021/26828
In the matter between:
AFRICA'S BEST FOODS (PTY) LTD
Applicant
and
CISA SPECIALITA ALIMENTARI
S.R.L Respondent
JUDGMENT
Q LEECH AJ
Introduction
1.
The application before me is an interlocutory application brought in
the context
of an application for repayment of a purchase price, less
the value of the goods delivered, paid under a failed contract of
sale.
The main application was instituted in June 2021 and is ready
to be heard. The respondent in the main application is the applicant
in the interlocutory application. In the interlocutory application,
the applicant applies to refer the main application to trial
and to
consolidate the main application with an action. The applicant in the
interlocutory application is the plaintiff in the
action. The
applicant in the main application is the respondent in the
interlocutory application and the defendant in the action.
2.
The interlocutory application is the applicant’s second attempt
at consolidation.
The applicant previously attempted to consolidate
the main application with another action instituted in August 2021.
The attempt
failed and the applicant has not persisted with that
action. The applicant instead instituted the current action in August
2023
and renewed the application for consolidation. The respondent
objects to this second attempt. The respondent contends that the
actions are substantially similar and the renewed application is an
abuse of process designed to frustrate its right to expeditious
relief on motion. The actions arise out of the same dispute and the
cause of action, amount claimed and many of the allegations
are
identical. The relevance of the few differences in the actions is not
readily apparent.
3.
The interlocutory application was initially broader in scope. The
respondent
is a peregrinus and disputes both the service of the
summons and the jurisdiction of this court in the current action. The
preponderance
of the relief contained in the notice of motion was
directed at establishing certainty in respect of the service of the
summons
in the current action. The applicant did not, however,
persist in this relief at the hearing of this application. The
applicant
limited the relief to referring the main application to
trial and consolidating it with the current action.
Consolidation of actions and
applications
The premise
4.
The first issue is whether the consolidation of actions and
applications is possible
in terms of rule 11. The respondent submits
that actions and applications cannot be consolidated. There is
support for this proposition
in the commentaries on rule 11 of the
uniform rules of court which cite as authority, Solar Basic
Industries Inc v Advance
Transformer Company of South Africa
(Proprietary) Ltd and Fluorescent Corporation SA Ballast
Manufacturers (Proprietary) Ltd.
The provisions of rule 11 were
identical to the current rule at the time of the judgment in Solar
Basic Industries. Rule 11 appears
under the heading, “[c]onsolidation
of actions”, and refers only to actions. The definition for
“action"
in the rules was broader at the time but included
the current definition being “a proceeding commenced by a
summons.”
There was no definition for “application”.
However, rule 6, which sets out the procedure for applications, was
materially
similar and the subsequent inclusion in the rules of a
definition for “application” as “a proceeding
commenced
by notice of motion or other forms of applications provided
for by rule 6” does not vitiate the judgment in Solar Basic
Industries.
5.
In Solar Basic Industries, the court held that “[t]he rule
applies to proceedings
instituted by way of action and there can be
no consolidation of an action and an application.” In
Absa Bank Limited
v Erasmus, the court, quoting Solar Basic
Industries and apparently obiter, stated that “I align myself
with these
sentiments, action proceedings cannot be consolidated with
application proceedings.” In Phalane N.O. and Another v
Department
of Co-operative Governance, Human Settlements and
Traditional Affairs of the Limpopo Provincial Governance and Others,
the
court held that “[i]t is trite law that only actions can be
consolidated.” The latter statement should be read in context
and be understood to mean that only actions can be consolidated with
other actions as the provisions of rule 11 are extended to
applications by rule 6(14), and accordingly applications can be
consolidated.
6.
The absence of any discussion of rule 6(14) in the abovementioned
authorities
should not be assumed to be an omission. The provisions
of rules 11 and 6(14) have been in existence in their current form
for
decades without amendment to include any indication that actions
and applications as defined in the rules may be consolidated. Rule
6(14) currently states that the provisions of inter alia rule 11
“apply to all applications”. Prima facie rule
6(14)
merely permits the consolidation of applications and the proper
interpretation of rule 11, read with rule 6(14), may lead
to the
conclusion that the rules do not provide for the consolidation of
actions and applications. If so, the statement in Civil
Procedure in
the Superior Courts, that “[e]ven though [rule 11]
applies to the consolidation of application proceedings,
an action
and an application cannot be consolidated”, would be correct.
7.
Despite some inviting indications to the contrary in the heads of
argument, counsel
for the applicant explained that the applicant did
not contend that actions and applications can be consolidated in
terms of the
rules. The applicant instead opted for the approach
adopted in Solar Basic Industries and expressed as follows in the
dissenting
judgment in Spencer and Others v Memani and Another,
“[i]n Solar Basic Industries … it was held that an
application
and an action cannot be consolidated in terms of rule 11.
It would, however, be open for a court to refer an application to
trial
in terms of [r]ule 6(5)(g) and, having done so, to then
consolidate the respective actions under rule 11.” This route
was
attempted in Solar Basic Industries but blocked by the prescribed
procedure which required an application. The applicant in
the
current proceedings does not face a similar hurdle and, as indicated
above, the applicant in Phalane succeeded with this approach.
8.
The proposed approach is conceptually premised on the proposition
that an application
is converted into an action upon being referred
to trial or an acceptance of the proposition that some applications
are susceptible
to consolidation with actions. The former proposition
is indicated by the language used by the learned judge in Spencer
which,
along with the other authorities mentioned above, expressly
disavow the latter proposition. In Solar Basic Industries the
applicant
applied to refer an application for the revocation of a
patent to trial. The court described the application as “an
application
for conversion of the application for revocation into a
trial.” The court held that the Patents Act No. 37 of
1952,
“sets out the various forms of evidence which the
Commissioner may accept and nowhere in the section is he authorised
to
change the nature of proceedings which have been prescribed by the
Act.”
9.
I mention that the premise is necessary only because the definition
of “action"
in the rules limits its meaning to “a
proceeding commenced by summons”. As stated in Erasmus:
Superior Court Practice,
“[i]n the rules the word ‘action’
is used in its narrow sense”. The word in its broad sense
includes
any process, irrespective of its form, in which the doing of
something or the payment of a sum of money or a declaration of rights
is demanded, and accordingly, an application. The broad sense
is concerned with the substance of the proceeding and the narrow
sense, with its form. The assumption that the narrow sense definition
is the intended meaning of “actions” in rule
11 makes the
premise necessary. If the broad sense is intended in rule 11, there
is no need for the premise that an application
is converted into an
action upon being referred to trial. The broad sense interpretation
is permissible if the context indicates
that the defined meaning is
not the intended meaning. The broad sense interpretation will have
the pragmatic consequence that the
consolidation of any proceedings,
including actions and applications, could be determined mainly on the
basis of convenience and
prejudice, and the device of conversion
could be jettisoned. The broad sense interpretation appears to hold
advantages not presented
by the conversion device. The broad sense
interpretation has broader application and simplifies the application
of rule 11. In
the circumstances, I considered whether the effect of
the only amendment introduced to rule 6(14) on the ambit of rule 11,
was
to remove the hard line established by the definition between
actions and applications.
10.
However, as explained by counsel, the applicant did not contend for
such an interpretation
and I cannot make such a decision in the
absence of considered submissions on the proper interpretation of
rule 11, read with rule
6(14). I cannot do so for the principal
reason that the decision in Solar Basic Industries is binding upon me
by reason of the
provisions of sections 3(1), 4(1) and 77(2), and
particularly section 82(2), of the erstwhile Patents Act No. 37 of
1952, and accordingly,
the decision requires a finding that Solar
Basic Industries is clearly wrong. The applicant did not make that
submission and I
cannot make that decision as the interpretation to
the opposite effect is at the very least tenable, if not
correct, as indicated
by the definition, the authorities mentioned
above and the commentaries.
Inherent jurisdiction
11.
In contrast, the submission by counsel for the applicant that “this
court can consolidate
an action and an application that has been
referred to trial based on the court’s inherent jurisdiction”
is premised
on the proposition that an application referred to trial
remains an application, and accordingly rules 11 and 6(14) do not
apply
and this court is required to exercise its inherent
jurisdiction in order to consolidate the proceedings. The submission
runs contrary
to the contentions in the applicant’s affidavits.
The affidavits found the application on the conversion device and the
application
of rule 11. In the replying affidavit the applicant
explains that the application is made in terms of inter alia rule
6(5)(g) and
rule 11. In the founding affidavit, the applicant
contends that “[i]n terms of the prayer for the disputes of
fact matter
2021/26828 to be referred to trial and which is an issue
for legal argument, once referred, this Court will be consolidating
two
actions.” In other words, the applicant’s case is
founded on the rules and counsel’s submission is founded on
the
absence of a provision in the rules.
12.
In my view, counsel’s submission is not available to the
applicant, as an alternative,
as it misconceives the restraints
imposed on exercising the contemplated power. As the constitutional
court firmly stated in Social
Justice Coalition and Others v Minister
of Police and Others, to which counsel for the applicant
referred, the court does
not have unlimited power to do as it
pleases. The constitutional court has repeatedly held that the
power must be exercised
sparingly and with caution. The power is
ordinarily exercised to cater for an extraordinary procedural
situation where there is
a legislative lacuna and pending the
promulgation of appropriate rules of procedure. In Mukaddam v Pioneer
Foods (Pty) Ltd and
Others, the constitutional court emphasised
that the rules of court assist in creating certainty in the procedure
to be followed.
Although courts should not be inflexible and rigid in
the application of the rules, strong grounds must be advanced to
persuade
the court to act outside the powers specifically provided
for in the rules and the power must be exercised only in clear
cases.
13.
The application in this matter is unexceptional and no grounds were
advanced to persuade
me that the consolidation of actions and
applications in general should be permitted. I am not prepared to do
so and open the door
to uncertainty and potential chaos. The power
cannot be exercised in an ordinary matter merely because the
procedural step a litigant
wishes to adopt does not fall within the
ambit of the rules. The absence of an applicable rule is not the
equivalent of a legislative
gap as the absence of a specific rule may
indicate that the procedural step is prohibited.
14.
The starting point should be an interpretation of the relevant rules
to determine whether
the rules fail to provide for the circumstances
presented or contemplate the circumstances presented and
intentionally exclude
the circumstances from their ambit. In the
latter event, the intention is to prohibit the application of the
rules in those circumstances
and it cannot be said that there is a
gap. In my view, the consolidation of actions and applications falls
into the latter category.
There are fundamental differences between
actions and applications and good reasons exist to prohibit their
consolidation, and
there is no indication in the language, context or
purpose of the relevant rules that the consolidation of actions with
other actions
and the consolidation of applications with other
applications was contemplated, but not the consolidation of actions
with applications.
The absence of a specific rule is more an
indication of an intention to preclude the application of the rules
than an indication
of a failure to recognise and provide for the
consolidation of actions and applications. Furthermore, if
applications are converted
to actions on being referred to trial, as
discussed below, the rules provide a mechanism in appropriate
circumstances to consolidate
actions and applications.
15.
In the premises, this matter does not provide a clear case for the
exercise of this court’s
inherent power. This does not mean
that a court is not permitted to deviate from this general
prohibition in appropriate circumstances
to enable it to do justice
between the parties. It means only that it would be
inappropriate and not in the interests of
justice to do so in the
current, run-of-the-mill matter.
Converting an application into an
action
16.
The second issue is whether an application referred to trial in terms
of rule 6(5)(g) remains
an application or is converted into an
action.
17.
In Solar Basic Industries, the court indicated that the application
would be converted into
an action and other more direct statements
can be found in this division. In Van der Merwe v Regenstreich,
the court referred
to “the papers in the main application,
which has now become an action”; and the matter which had been
“converted
into an action”. The court decided that “[i]t
is left to the court which determines the action into [which] the
main
application has been converted to decide …”. And
similar statements are found in other divisions. For example, in
Chetty v Govender; Govender v Chetty the court referred to the
plaintiff’s application “which had subsequently
been
converted into an action”.
18.
However, as stated above, “action” is defined as meaning
“a proceeding
commenced by a summons” and the rules do
not, expressly state that a court may convert an application into an
action. Rule
6(5)(g) affords the court a discretion to be exercised
in appropriate circumstances to refer an application to trial with
appropriate
directions as to pleadings or definition of issues, or
otherwise. The conversion construction requires the language of rule
6(5)(g)
to be read as meaning the court “may refer the matter
to trial [action]”. In Erasmus: Superior Court Practice,
a trial is described as “the judicial investigation of the
claim and defence of litigants as disclosed in the summons and
plea;
and for that purpose, the hearing of such evidence as may be brought
forward by the parties; after which the parties or their
legal
representatives (if they so desire) are heard in argument, and the
judgment of the court is given.” As the language
indicates, a
trial requires a summons and, as a proceeding commenced by a summons
is an action, the procedure is often referred
to as a trial action.
The term encapsulates the procedure and the distinction between the
narrow and broad meanings of action.
And this appears to be the
intended meaning attributed to “trial” in statements such
as “the proceedings were
converted into a trial.”
19.
The terms are not, however, synonymous and a distinction is drawn
between trials and trial
actions in the rules and authorities. For
example, rule 35(8) refers to “the trial of the action”
and rule 39(23) refers
to “the conclusion of the evidence in
trial actions”. The distinction between trials and trial
actions is evident in
statements in, for example, Mamadi v Premier,
Limpopo and Others, in which the constitutional court held
that,
“
It may be
possible to replicate these advantages in a trial action, but the
procedural route to achieve this has not been determined.
But even if
it were possible, there seems to be no compelling reason to require a
litigant to forgo the utility of rule 53, even
if a dispute of fact
is reasonably anticipated. Recourse to rule 53 will not be in vain.
What may need to be referred to evidence
or trial will become clear.
To insist on the institution of a trial action may very well prove
cumbersome and time-wasting. That
is constitutionally unacceptable.”
20.
The difference is well known and the drafters of the rule could be
expected to have used
“trial action” in rule 6(5)(g) if
that was their intention. The drafters did so in a similar context in
rule 8(8) which
expressly caters for the continuation of a
provisional sentence matter as a trial action. Rule 8(8) provides
that, “[s]hould
the court refuse provisional sentence it may
order the defendant to file a plea within a stated time and may make
such order as
to the costs of the proceedings as to it may seem just.
Thereafter the provisions of these rules as to pleading and the
further
conduct of trial actions shall mutatis mutandis apply.”
Rule 8(8) is markedly different to rule 6(5)(g). However, the orders
often made in terms of rule 6(5)(g) are similar.
21.
The resemblance to rule 8(8) is found in the orders concerning the
application of the rules
of court. In some instances, courts have
simply made an order that, “the rules relating to actions shall
apply”
or more elaborately that, “[t]he rules of
Court relating to action proceedings will apply to the action until
its conclusion”
or more comprehensively that, “[t]he
uniform rules of court relating to trial action proceedings and
pleadings will thereafter
apply to the further conduct of the matter
subsequent to the filing of the declaration by the applicants”.
In other
instances, courts have ordered that “[t]he Uniform
Rules of Court dealing with further pleadings, discovery and conduct
of
trials shall thereafter apply” or “[t]he normal
rules of court relating to trial and discovery process will be
applicable to the further conduct of the proceedings”.
The aforementioned variations may serve to limit the application
of
the rules to those mentioned but that does not appear to have been
the intention, or preclude the understanding that the matters
should
proceed as trial actions. (Cf. Van Niekerk v Stone, in which
the intention to do so was made clear by reference to
specific
rules.)
22.
The variations referred to above serve to remove any possible doubt
that the matter is to
proceed according to the trial action
procedure. However, in many cases, the order is merely that the
uniform rules of court shall
govern or apply to the proceedings. In
Rosenberg v Nuco Chrome Bophuthatswana (Pty) Ltd, for example,
the supreme court of
appeal ordered that “[t]hereafter the
proceedings shall be governed by the Uniform Rules of Court”
and in Botha v Coetzee
that “after which the usual
Uniform High Court rules will apply.” In others, the matter is
merely referred to trial
without any reference to the rules. An
example of this is found in Thomas v Henry and Another. The
same orders are found
in this division in, for example, Bapela supra,
Applied Coating Technologies SA (Pty) Ltd v Wilford, and Young
v Curtis.
It was not necessary for these courts to express the
obvious implication that such matters have to proceed according to an
established
procedure and read in context and purposively, that they
should do so in accordance with the rules applicable to actions. An
express
statement that the matter proceeds as an action is
nevertheless found in Muhanga Mines (Pty) Ltd v Phumela Mining (Pty)
Ltd
in which the court ordered that “[t]he applicant's
founding affidavit is to stand as the plaintiff's simple summons in
the
action.” And in Standard Bank of SA Ltd v Neugarten and
Others, the court stated that in referring an application to
trial the court “orders that the litigation be undertaken by
action procedure.”
23.
The order in its simplest form implements rule 6(5)(g) which requires
a referral to trial
with appropriate directions as to pleadings or
definition of issues. In addition an order is made that the notice of
motion stands
as a simple summons. In my view, the sole purpose of
this aspect of the order is to convert the application into an
action. As
stated above, the distinction between an action and an
application is found in the initiating process. In order to
constitute an
action, the proceeding is required to be commenced by
summons. An application that is referred for the hearing of oral
evidence
without more would remain an application because it was
commenced by notice of motion or another form contemplated rule 6.
The
order that the notice of motion stands as a simple summons brings
the proceeding within the ambit of the definition by changing
the
form of the initiating process and the proceeding is thereafter
a proceeding “commenced by a summons.” I
need not
consider whether this occurs from the outset (ex tunc) or from then
on (ex nunc). A further order is occasionally included
that the
answering affidavit stands as the notice of intention to defend,
despite the presence of notice of intention to oppose,
which can only
serve to fix the conversion.
24.
The directions concerning the pleadings ordinarily prescribe a
declaration to be delivered
within a specified period of time or a
determinable time. Rule 6(5)(g) does not require any further
directions and often
no order is made. The commencement of pleadings
is considered adequate indication that the rules applicable to trial
actions shall
apply.
25.
The application generally takes on the form of an action. The matter
has a summons, pleadings,
rules applicable to actions and proceeds to
trial, and as the definition of action is concerned with form, not
substance, an application
referred to trial under these and similar
orders is converted into and becomes an action. The authorities
indicate this to be the
general understanding of our courts and
counsel for the respondent appeared to accept the proposition that
the word “trial”
in rule 6(5)(g) effectively means “trial
action”. To hold otherwise, merely because the initiating
document was not
a summons would be to place indefensible store in
formalism.
26.
Although recently in Molatjane v Joffe and Others, the court
stated that a “rule
6(5)(g) application is essentially an
interlocutory application which asks this court to keep the main
application alive by referring
it to trial”, the court did not,
in my view, mean that the proceeding is preserved in the form of an
application. The court
did not consider the issue of conversion. (The
statement applies in respect of applications referred for the hearing
of oral evidence.
)
Separate prevenient applications in
terms of rule 6(5)(g)
27.
The third issue is whether a separate prevenient application to refer
the application to
trial is appropriate. The respondent effectively
contends that the request to refer the matter to trial must be made
to and heard
by the the court hearing the application. Counsel for
the respondent was forthright in argument that no authority could be
found
for the proposition. The applicant submits in the replying
affidavit that there is no authority that only the court hearing the
main application can make such a referral and that “[o]ur case
law is replete with examples of interlocutory applications
being
brought to courts simply for the underlying main application to be
referral to trial or oral evidence.”
28.
Rule 6(5)(g) affords the court the power to “make such order as
it deems fit with
a view to ensuring a just and expeditious decision”
and in doing so it may refer the matter to trial. The exercising of
the
power mero motu is rare and undesirable, and accordingly
the court should be approached for an order. The request usually
takes the form of a motivated submission that the matter cannot
properly be decided on the papers for the reasons set out therein
and
the court should exercise the rule 6(5)(g) discretion in favour of
referring the matter to trial. The request is an application
because the word ‘application’ has a wide meaning and
includes any form of request to a judge or court in legal
proceedings
and ‘motion’ has an identical meaning.
29.
As a general rule, an application for referral to trial must be made
in limine (on the threshold)
or in initio (in the beginning).
As the language indicates, the request is generally made at the
hearing of the application
prior to argument on the merits. This rule
is described as salutary but not inflexible or without exception.
The flexibility
of the rule permitted litigants to apply in the
alternative for the matter to be referred if the main argument in
support of the
relief should fail. This practice required the general
rule to be restated in De Reszke v Maras and Others, because,
in the
opinion of the court, “the pendulum has swung too far
the other way. Some younger counsel, in particular, seem to take it
half for granted that a court will hear argument notwithstanding
disputes of fact and, failing success on such argument, will refer
such disputes, or some of them, for oral evidence.” The court
reminded practitioners that there was a time “when in
practice
an application to refer for oral evidence had invariably to be made
at the commencement of argument. Counsel in effect
had to elect at
that stage and could not save a reference for oral evidence as an
alternative.” And held that, “the
general rule of
practice remains”. This admonition and the subsequent approval
it received in the supreme court of appeal
in Mogami served to reset
the pendulum’s equilibrium for a period. I sense, however, that
recently the pendulum has been
nudged in the opposite direction.
There is nascent development which threatens to become a practice in
terms of which applications
for referral to trial are commenced by
notice of motion, and replete with affidavits are set down for
hearing before a court other
than the court that will hear the main
application. On being presented with a few hundred pages of papers in
a matter listed on
my roll as an ‘interlocutory’, I
naturally questioned the legitimacy and desirability of such a
development.
The form of the application
30.
In Molatjane, the court stated that the application in terms of
rule 6(5)(g) was defective
because it was not brought on notice of
motion supported by a founding affidavit. The statement appears to be
obiter as the court
determined whether there was a genuine dispute of
fact and finding none, dismissed the application. And in All
Occupiers of 1 Willow
Place, Kelvin, Sandton v K2016498847 SA (Pty)
Ltd, the court indicated that an application in terms of rule
6(5)(g) was not
considered because it was not brought on notice of
motion. I do not understand these authorities to be referencing a
general rule
that an application for referral must be brought on
notice of motion, supported by a founding affidavit. The rules and
authorities
are clear and to the contrary. The adequacy of the notice
and whether a supporting affidavit is required depends on the
circumstances.
31.
An application for referral is interlocutory. In terms of rule
6(11), interlocutory
applications may be brought on notice supported
by such affidavits as the case may require. The difference between an
application
brought on notice and an application brought on notice of
motion is well established. As stated in Yorkshire Insurance Co
Ltd v Reuben, “interlocutory and other applications
incidental to pending proceedings were not intended to be brought
by
way of formal notice of motion”, and, “[i]t follows,
therefore, that the applicant unnecessarily adopted the procedure
applicable to notices of motion when initiating the application”.
In Viljoen v Federated Trust Ltd, the court
held that an
interlocutory application “can be initiated by way of an
ordinary notice. Such a notice need not be in accordance
with Form
2(a) of the First Schedule at all and can be much more concise and to
the point.” In some instances, our courts
have firmly stated
that a notice of motion procedure is not to be used. In Swartz
v Van der Walt t/ a Sentraten, the
court pointed out that rule
6(11) is an exclusionary provision and in SA Metropolitan
Lewensversekeringsmaatskappy Bpk v Louw NO,
that despite the
permissive terms, the rule did not contemplate an election to use
either a notice of motion as contemplated in
rule 6(1) and 6(5) or a
notice, as in rule 6(11).
32.
The applicant is simply required to give proper notice. In
Yorkshire Insurance, the
court held that “all that is required
in terms of Rule 6(11) is a notice advising the other party that an
application will
be brought on a date assigned by the Registrar.”
There is no prescribed form for notices. However, the use of a notice
similar to form 2 in the first schedule to the uniform rules of court
was approved in Viljoen. I point out that the heading of
the approved
form indicated that it was a motion. The current practice is to use
form 2 modified for the circumstances. The template
is prescribed for
use with applications brought ex parte and accordingly bears the
heading, notice of motion. Although technically
the form should be
modified to reflect its nature as a notice and ground the application
squarely within the provisions of rule
6(11), the mere retention of
the heading cannot be criticised. However, in combination with other
indications of a long form notice
of motion, the retention of the
heading may cause confusion.
33.
The issue is not about the heading. The issue is whether the
applicant initiated proceedings
in terms of rule 6(1) and 6(5) or
rule 6(11). The use of a notice of motion similar to form 2(a) is an
indication that the application
is in terms of rule 6(1) and 6(5). In
SA Metropolitan Lewensversekeringsmaatskappy, the learned judge
expressed,
“
doubts about
the correctness of plaintiff's contention that the notice of motion
despite being a replica of Form 2(a) should not
be interpreted as a
‘notice of motion’ but as a ‘notice’ in terms
of Rule 6(11) with an addition about
notice of objection and the
filing of affidavits so that both parties know where they stand in
regard to such matters. There appears
to be distinct procedures and
the form of the application makes it recognisably an attempt to move
within Rule 6(1) and 6(5).”
34.
The institution of a separate application in terms of rule 6(1) and
6(5) would be irregular
and impermissible for the reason stated in
Transnet Soc Ltd and Another v CRRC E-Loco Supply (Pty) Ltd and
Others. The aforementioned
case concerned a separate
application to dismiss a review based on delay and in that context
the court stated that “it is
not open to a respondent or
defendant to outflank an applicant or plaintiff by initiating a
wholly separate application aimed at
exploding the 'main case'. The
counter-assault must engage with the adversary within the 'main
case’.” The opposing
party would have reason to complain
in the event that it was prejudiced and could do so in terms of rule
30.
35.
Although the use of a short form notice of motion is permissible, the
notice is not invariably
required to be in a form as near as may be
in accordance with form 2. The notice must be adequate in the
circumstances and “ensure
that the respondent is neither taken
by surprise nor deprived of the opportunity to prepare his case.”
The parties
should not lose sight of the fact that the court should
be notified and this is usually done by delivering a notice. However,
the
notice required for the purposes of rule 6(5)(g) need not be
written provided these requirements are satisfied. As indicated by
the authorities, applications for referral made orally from the bar
are not uncommon. In appeals, applications for referral made
for the
first time during argument have been entertained and, although mostly
unsuccessful, were not dismissed because the notice
was inadequate.
The reason for this tolerance by the parties and courts concerned is
to be found in the requirements for
the notice, affidavits and the
practice.
36.
As expressly stated in rule 6(11), an application brought on notice
does not require a supporting
affidavit unless the particular
circumstances so require. In my experience, there is a
reluctance to institute interlocutory
proceedings without a
supporting affidavit because the risks associated with not filing an
affidavit where the circumstances require
one are greater than those
associated with doing so. However, practitioners should be
reminded that affidavits are not the
proper place for argument and
proceeding on notice without an affidavit “not only facilitates
the work of the Courts but
also enables litigants to resolve their
differences as speedily and inexpensively as possible”.
The general rule on
applications for referral to trial has similar
objectives - to avoid unnecessary costs and delay, and is convenient
to the court.
These objectives are countered by delivering
affidavits in matters in which they are not required.
37.
A supporting affidavit should not be required in applications for
referral to trial because
the affidavits filed in the application
must set out the grounds for the request and communicate the
intention to apply for an
order. A court faced with an
affidavit in support of an application for referral to trial should
be circumspect and guard
against unwittingly permitting the delivery
of a further set of affidavits. The applicant for referral should not
be permitted
to supplement its case in the main application without
leave by delivering a supporting affidavit containing matter that
should
be contained in the affidavits in the main application. The
circumstances would have to be extraordinary before a supporting
affidavit
was required in an application for referral to trial.
38.
In practice, the intention to apply for an order on the grounds set
out in the affidavits
in the application is often reaffirmed in the
heads of argument, and in this division in the practice note, the
pre-hearing conference,
joint practice note and a draft order. The
order made in referring applications to trial is elementary and this
form of notice
should serve as adequate notice in all but the most
extraordinary cases. A concise notice would, however, place the issue
beyond
any reasonable debate and is, for that reason, advisable but
not required in all instances.
39.
I should not be understood to mean that precision can be abandoned.
The consequences of
imprecision are evident in Santino Publishers CC
v Waylite Marketing CC, in which the applicant stated in the
replying affidavit
that “[s]hould this honourable court require
the viva voce evidence of Mr Santino Cianfanelli for the purposes of
this affidavit,
an order will be sought to compel Mr Santino
Cianfanelli to be subpoenaed to give oral evidence at the hearing of
this application.
The court stated that “[t]he sole purpose for
obtaining the proposed order (which was not persisted with at the
hearing)
was to present the oral evidence of Cianfanelli on a
specified issue. It was clearly not intended nor can it in any way be
construed
as an application for the referral of the matter as a whole
to the hearing of oral evidence.” In 4 Africa Exchange (Pty)
Ltd v Financial Sector Conduct Authority and Others, the
applicant stated in a supplementary affidavit that a draft order
would in due course accompany its heads of argument. The draft order
was attached to the applicant’s heads of argument and
the
interlocutory application was heard in limine. The respondent
nevertheless submitted that the application was irregular in
that the
applicant “did not file a notice of application indicating the
relief to be sought in the interlocutory application”.
However,
the complaint of greater substance was that the relief sought in the
draft order was materially different to the relief
foreshadowed in
the supplementary affidavit. In the circumstances, the court held
that the applicant had failed to give proper
notice to the
respondent.
40.
In my view, a judicial approach which is too tolerant of
interlocutory applications brought
in a form better suited to
initiating proceedings, supported by unnecessary affidavits and
permitting periods for the filing of
papers risks needless
interruption and inordinate delay to application proceedings.
Our courts have sought to counter these
disruptive consequences by
requiring an explanation for the delay in bringing applications for
referral. In Mercantile Bank v Ross,
the respondent launched an
application on notice of motion supported by a founding affidavit a
week before the hearing. In the
founding affidavit, the applicant
dealt with matters he contended amounted to disputed issues but
failed to define the issues to
be referred to oral evidence. The
court dismissed the application because inter alia there was no
explanation for the delay in
launching the application in terms of
Rule 6(5)(g). In True North Holdings (Pty) Ltd and others v Sky Gecko
Software Lab (Pty)
Limited and another, the referral
application was delivered on the morning of the hearing. The
application was on notice
supported by a short affidavit. The
applicant claimed the application was urgent and requested
condonation for the non-compliance
with the rules relating to service
and time periods. There was no prior mention of any dispute which
precluded the court deciding
the matter in either the applicant’s
replying affidavit or the heads of argument in the main application.
The court was critical
of the delay and dismissed the application. In
both matters, the applicants appear to have allowed inadequate time
for the papers
to be finalised and the application heard at the
hearing, and were attempting to supplement their papers without
leave.
41.
The difficulty is not the notice period per se but the notice period
coupled with the form
adopted for the application for referral. The
root cause is the institution of applications for referral on notice
of motion with
supporting affidavits that require an answer in close
proximity to the hearing. The applications brought in that form have
the
potential to interrupt and delay the main application. An
applicant who opts for that form must allow an adequate period
between
delivering an application for referral and the hearing.
In most instances, this means that the notice will have to be concise
and the supporting affidavit uncontentious. The risk of not doing so
is on the applicant. If the papers required to be delivered
cannot be finalised in time for the application to be heard at the
hearing of the main application, the applicant must apply for
a
postponement and in that context an explanation for any delay in
instituting the application is required. An applicant faced
with
insufficient time has an election to either apply for referral on
notice without a supporting affidavit and request that the
application be heard in limine or apply for a postponement in order
to finalise the papers. The former approach is the preferable
approach for the reasons stated above and should be encouraged. In
the absence of a supporting affidavit, there should be no need
for
any further affidavits and the respondent would be pressed to explain
why the case required an affidavit. However, the approach
which is
all too often adopted is to deliver an application for referral on
notice of motion supported by a prolix affidavit. The
assumption is
that the risk of doing so entails nothing more than a determination
that the application for referral is not ‘ripe
for hearing’
and will be removed from the roll, directions given for the filing of
papers and a hearing, and the main application
suspended pending its
resolution with or without a costs order. This assumption
should be dispelled. The legal representatives
who are reluctant to
facilitate the work of the courts and to resolve differences speedily
and inexpensively as possible, should
not be allowed to deflect the
focus of a postponement application and immunise their clients
against the risks and consequences
of an unsuccessful application.
42.
In my view, a separate application on notice of motion supported by a
founding affidavit
is generally unnecessary and the authorities do
not provide any reason to encourage such a practice. An application
on adequate
notice without affidavits should be appropriate and
required in all but the most exceptional of cases. The issue should
be whether
the application for referral to trial is available to the
party making the request on the affidavits in the main application.
If
the affidavits are properly drawn, I would expect any counsel or
attorney appearing in such a matter to be ready to address an
application for referral to trial in argument without complaint. The
genuine complaints about surprise and claims to an opportunity
to
prepare should be rare.
The hearing of the application
43.
The issue is whether hearing the matter prior to the main application
is permissible and
appropriate. The hearing of applications for
referral to trial independently of the main application is rare.
Although I disagree
with applicant’s counsel that “[o]ur
case law is replete with examples”, I accept that it can be
done. The question
is whether it should be done other than in
exceptional circumstances. In my view, there are a number of
considerations which favour
the hearing of applications for referral
at the hearing of the main application.
44.
The discussion should commence from the appreciation that applicant
for referral does not
have “the right to choose the method of
approaching and placing a dispute before a particular court. The
determination of
the process to be followed when litigants approach
courts is left in the hands of the courts.” The uniform
rules of
courts confer procedural rights on litigants and assist in
creating certainty in the procedures to be followed but the rules of
court must be applied flexibly and contesting rights must be
balanced. A litigant has a procedural right to “secure relief
by motion proceedings in appropriate cases”, and the
right to “the more expeditious and less expensive method
of
enforcing a claim by motion” should not be delayed merely
because an opposing party institutes an application for referral
to
trial.
45.
Rule 6(11) permits an interlocutory application to be set down at a
time assigned by the
registrar or as directed by a judge but the
decision to do so is administrative. The registrar performs an
administrative function.
The purpose of the rule is “to enable
the Registrar to perform the administrative function of placing the
matter on the roll
in the appropriate Division of the Court.”
The registrar “does not adjudicate upon matters before the
court.”
I understand that in exercising this power the
registrar accepts the applicant’s statement that the
application is interlocutory
and should be set down as such. The
registrar does not consider whether application is incidental to
pending proceedings, whether
the notice is adequate, whether the
periods for the filing of affidavits is reasonable or whether it is
appropriate for a court
other than the court hearing the main
application to hear the interlocutory application. A judge exercising
this power probably
does so but that decision nevertheless remains
administrative and is provisional. In assigning a date and time for
the hearing,
the judge does not adjudicate upon these issues. The
parties are entitled to be heard and the appropriate court to hear
the parties
is the court hearing the application. The court, after
hearing the parties, is entitled to adopt a different view. In
Premier Fmcg
(Pty) Ltd v Baker, the applicant conceded the
understanding that the court was not bound by the direction of the
deputy judge
president.
46.
In a wide and general sense, an interlocutory application is an
“incidental application
for an order at an intermediate stage
in the course of litigation, aimed at settling or giving directions
with regard to some preliminary
or procedural question”,
and required to be “subordinate or accessory to while at the
same time being distinct
from the main proceeding”. An
application to refer a matter to trial strains every aspect of this
description. In my
view, prevenient interlocutory applications should
be concerned with inter alia procedural issues in the narrow sense,
and although
procedural in a broad sense, evidential issues should be
raised as points in limine. A request for an application to be
referred
to trial is essentially an objection to the matter being
decided on the evidence contained in the affidavits before the court
without
the benefits of a trial action. The appropriate court to hear
the request, assess the affidavits, determine whether the application
“cannot properly be decided on affidavit” and, if so, the
procedure to be adopted, is the court hearing the main application.
There is certainly something to be said for the contention by the
respondent that the requirement to determine whether an application
“cannot properly be decided on affidavit”, implies some
attempt to decide the application on the papers and accordingly
indicates that “the court” referred to in rule 6(5)(g) is
the court hearing the main application.
47.
The current practice directive in this court permits matters that are
“strictly interlocutory
in nature” to be enrolled in the
special interlocutory court. The practice directive requires
interlocutory matters of a
substantive nature, matters that do not
concern “procedural delinquency”, to be enrolled in the
general motion court.
The practice directive provides a useful
example to assist litigants in determining the difference between
those categories. As
indicated above, this application falls into the
substantive interlocutory category. I do not, however, understand the
practice
directive to mean that pragmatism must be abandoned.
48.
The delay and convenience in hearing a prevenient application for
referral to trial must
be considered by the court hearing the
application. As stated in National Union of Mineworkers v Optimum
Coal Terminal (Pty) Limited
and another, in regard to urgent
applications, “[c]onvenience to the court and the judges
presiding is an important
consideration when deciding to launch
urgent litigation of this nature. The failure to do so, in my view,
is tantamount to an abuse
of the court process.” In Transnet
Soc Ltd and Another v CRRC E-Loco Supply (Pty) Ltd and Others,
the court held that
even “the deliberation on a genuinely
discrete issue must be a 'convenient' way of litigating the case, a
factor requiring
a fact-specific assessment of the given case in the
context of its own circumstances.”
49.
Although an application for referral is required, as a rule, to be
brought in limine, there
are exceptions and, as stated in Abaany
Property Investments Ltd v Fatima Ayob & Sons Ltd, “the
Court retains a
discretion to consider whether counsel should be put
to an election or not depending upon the circumstances of each case.
Broadly
speaking, it is convenient and salutary that an election in
appropriate circumstances should be made. But the Court is entitled
to consider alternative remedies where the circumstances justify such
a step.” The court hearing the application at the main
application also retains the power to direct whether any point raised
in limine should be argued first or “argued first and
separately from the remainder of the application or not” and to
this end should afford the parties “proper opportunity
to
debate this issue.” The power to order a separation
should be exercised with circumspection and the separation
of a
request for referral would be generally inappropriate and probably
deprecated. The development of a practice which permits
separate applications for referral to be brought as a matter of
course prior to the hearing of the main application would effectively
remove this discretion and place this power in the hands of the
parties, and deprive any opposing party of the opportunity to be
heard on the issue. A separate application for referral would
effectively impose the election and separation on the court and other
parties.
50.
As a general principle, piecemeal litigation is not to be
encouraged, and particularly
in application proceedings in
which the desirable course “is for all the affidavits to be
delivered and the entire application
to be disposed of in a single
hearing.” Although a successful application for referral
does not dispose of the relief
sought in the main application and is
not final and definitive in effect, I am unaware of any reversal of
the decision to refer
an application to trial. The decision
effectively disposes of the application as a legal proceeding by
converting it into a trial
action and all issues which have that
potential should be heard at the same hearing.
51.
As stated above, the grounds for the request are embedded in the
affidavits in the main
application. In deciding the application for
referral, the court is required to locate and examine the basis for
the request in
the main application. The request is usually but not
invariably founded on the presence of a dispute of fact and in such
instances
the court is required to examine the allegations to
determine whether a genuine dispute exists that cannot be
satisfactorily determined
without the aid of oral evidence. In doing
so, the court is required to consider whether the respondent
seriously and unambiguously
engaged with the issues sought to be
placed in dispute. The court is required to asses whether there
are reasonable grounds
for doubting the correctness of the
allegations and to carefully scrutinise allegations peculiarly within
the knowledge of an applicant
that cannot be directly contradicted or
refuted. The court is not required to accept any allegation at
face value.
This process naturally extends to contextual
allegations that may not be in dispute because “factual
averments seldom stand
apart from a broader matrix of circumstances
all of which needs to be borne in mind when arriving at a decision.”
The
court “should be guided to a large extent by the prospects
of viva voce evidence tipping the balance [of probabilities] in
favour of the applicant.” The court “should be
astute to prevent an abuse of its process by an unscrupulous litigant
intent only on delay or a litigant intent on a fishing expedition to
ascertain whether there might be a defence without there being
any
credible reason to believe that there is one.” The
process is rigorous and exacting, and serves the indirect purpose
of
supplementing the court’s understanding of the merits. A court
that performs this task is ideally placed to hear the merits
of the
main application if the request is refused and almost without
exception proceeds to do so.
52.
A referral to trial is one of three specifically mentioned options in
the rule. These options
do not restrict the discretion. The options
available to the court are limited only by the demand in the rule to
ensure a just
and expeditious decision. The court is required to
“select the most suitable method of employing viva voce
evidence for the
determination of the dispute.” The
selection flows naturally from the examination of the allegations. As
stated in
Repas v Repas,
“
A court has
to have regard to a number of disparate and incommensurable features
in coming to an appropriate decision in terms of
rule 6(5)(g): (i)
the foreseeability of the dispute, (ii) the degree of
blameworthiness, if any, in the circumstances of the given
case of
the applicant having proceeded in the face of a foreseeable dispute,
(iii) the nature and ambit of the dispute in question,
(iv) its
amenability to convenient determination by a reference to oral
evidence on defined issues, as distinct from in action
proceedings to
be commenced de novo, (v) the probabilities as they appear on the
papers (if those are against the applicant, the
court will be less
inclined to send the dispute for oral evidence) (vi) the interests of
justice, and (vii) the effect of any other
feature that might be
relevant in the circumstances of the given case.”
And,
"It seems to me, on the face of
matters, that the decision that a court has to make under rule
6(5)(g) involves what EM Grosskkopf
JA referred to in Media Workers
Association as 'a determination . . . [to be] made by the court in
the light of all relevant considerations'.
The appropriate decision
has to be informed by those considerations. Despite the sub rule
affording a choice of courses to follow,
the court's decision on
which to adopt has to be informed by those considerations.”
53.
The court hearing the submission that the main application cannot
properly be decided on
affidavit should not be constrained to the
granting or refusal of one of the options. The court should be
entitled to proceed to
consider all available options and the relief
sought in the main application if the application for referral fails.
If the parties
are permitted to approach the court in a separate
prevenient application, the parties could immunise themselves against
relief
other than that sought in the application and request the
exercising of the discretion on one of the unlimited options
available.
The parties could do so at any stage in the course of the
litigation and do so sequentially. The parties would be constrained
by
only their ingenuity and the process would be rendered susceptible
to abuse. In my view, the party who seeks relief under rule 6(5)(g)
should be placed at the risk of any other available relief being
granted. In Transnet Soc Ltd and Another v CRRC E-Loco Supply
(Pty)
Ltd and Others, the court stated “[t]here is no room for
a risk-free tactic in our civil procedure. Nor, in my
view is there,
on policy grounds, any reason to suppose that any unfairness is
inadvertently caused by such a stricture.”
54.
The refusal of an application for referral in separate proceedings
would result in delay
and would not advance the proceedings as the
decision would not be binding on the court hearing the main
application. The application
for referral would serve as a litmus
test for the presence of dispute of fact and an unsuccessful
applicant may renew the application
for referral at the hearing of
the main application after seeking to shore up the allegations in its
papers. As a result, the judicial
resources applied in assessing the
allegations may be wasted, the risk of conflicting decisions on the
same issue would arise and
the parties would be exposed to the costs
of repetitive hearings, none of which is desirable or convenient.
55.
In my view, the following statement in the context of a striking out
application in Elher
(Pty) Ltd v Silver is apposite:
“
I think that
the application to strike out is premature. Such an application must,
in my opinion, be made to the Court that tries
the application at the
time the application is before the Court for a decision on the
merits. The course now taken of objecting
in a preliminary
application to strike out would lead to the very greatest
inconvenience and difficulty.’
‘
After all,
what is the real nature of the objection? This is not an objection to
a pleading, it is an objection to evidence which
is proposed to be
tendered to the Court that hears the application. How can a Court
which is not hearing the application disallow
evidence which it is
proposed to tender later on as irrelevant to the merits of the
dispute? The Court which ultimately decides
the application may have
quite a different view as regards the relevancy of some of the
passages when all the evidence is presented
to it and the matter has
been fully argued.’
‘
A great
waste of time, energy and expense is involved in the procedure which
Mr. Miller has followed. First of all, there must be
a full-dress
argument or, at any rate, very considerable argument on the merits in
order to enable the Court to decide whether
the passages objected to
are or are not relevant. Then a decision as regards the relevancy of
various passages must be given. Then
more evidence is to be filed by
the petitioner, and finally the merits must be argued again before
that Court which hears the application.”
56.
And in Premier Fmcg (Pty) Ltd v Baker,
“
In my view,
common sense and the authority of Elher, Theron and Louis Pasteur are
in favour of the proposition that an interlocutory
application to
strike out material in affidavits in application proceedings on the
basis of inadmissibility should very rarely
(if ever) be granted —
such relief should be restricted to the very clearest cases of
inadmissibility, where there is no
possibility of the court in the
main application arriving at a different conclusion (and, of course,
if the case is so clear, then
there seems no good reason why that
clear decision shouldn't be left for the court in the main
application).”
57.
In my view, the appropriate court to hear the request and to
determine the approach that
should be adopted is the court hearing
the main application. An applicant seeking a referral to trial in a
separate prevenient
interlocutory application must demonstrate that
the hearing of the application for referral is both convenient and
will not disrupt
the hearing of the main application, failing which
the application for referral should be heard by the court hearing the
main application.
58.
I should not be understood to mean that there are no circumstances
that would justify a
separate prevenient application. In Lekup Prop
Co No 4 (Pty) Ltd v Wright, the applicant instituted motion
proceedings against
the respondent and after the respondent delivered
an answering affidavit, the matter was, by consent, referred to
trial.
And, as indicated above, I was referred to Phalane N.O.
and Another v Department of Co-operative Governance, Human
Settlements
and Traditional Affairs of the Limpopo Provincial
Governance and Others, in which the court heard the application
without
demur.
59.
In Mamadi, the constitutional court was concerned with the contention
that a review application
should be dismissed because of the presence
of foreseeable disputes of fact. The irresoluble disputes of fact
were noted by the
court a quo during argument and the applicants
filed supplementary written submissions on the appropriate remedy in
which it was
submitted that the matter should be referred for the
hearing of oral evidence. The court a quo dismissed the main
application.
The constitutional court decided that “a court
does not have a discretion under rule 6(5)(g) to dismiss an
application brought
in terms of rule 53 on the basis that reasonably
anticipated disputes of fact arise on the papers.” In
this context
the court held that,
“
This does
not mean that an applicant in a rule 53 application is entitled, as
of right, to have a matter referred to oral evidence
or trial.
General principles governing the referral of a matter to oral
evidence or trial remain applicable. Litigants should,
as a general
rule, apply for a referral to oral evidence or trial, where
warranted, as soon as the affidavits have been exchanged.”
60.
The statement in Mamadi indicates an earlier point in the proceedings
to that stated in
Di Meo v Capri Restaurant,
“
When an
opposed motion, or opposed action for provisional sentence, reaches
the stage that it is ready to be argued, there is available
to both
parties all the information and affidavits which are to be before the
Court. In my view, it is at that stage that a party
should make an
application for leave to lead viva voce evidence to resolve any
conflict which, it appears from the papers, is incapable
of being
decided without it. In the present instance, the matter was not even
mentioned until after the plaintiff's counsel had
completed his
argument and until near the end of the argument for the defendant.”
61.
The statement in Di Meo found support in this division before being
recognised as and subsequently
restated as the salutary but not
inflexible general rule. In the opinion of the court in De
Reszke, these subsequent
judgments ushered in an undesirable
practice which required correction. The judgment in De Reszke was
confirmed on appeal without
comment on this issue but cited with
approval in Mogami. The courts in De Reszke and Mogami were
addressing the practice and tightening
up on the flexibility of the
rule. The courts were emphasising that the rule is a generally
applicable rule with true exceptions.
The judgments of these courts
do not evidence an intention to jettison the development of the
general rule that the application
is made in limine. In Mogami, the
court held that,
“
An
application for the hearing of oral evidence must, as a rule, be made
in limine and not once it becomes clear that the applicant
is failing
to convince the court on the papers or on appeal. The circumstances
must be exceptional before a court will permit an
applicant to apply
in the alternative for the matter to be referred to evidence should
the main argument fail”.
62.
The passage in Mamadi, is similar in effect. The constitutional court
proceeded as follows
after the abovementioned statement,
“
Where
timeous application is not made, courts are, in general, entitled to
proceed on the basis that the applicant has accepted
that factual
disputes will be resolved by application of Plascon-Evans. Likewise,
where an applicant relies on Plascon-Evans, but
fails to convince a
court that its application can prevail by application of the rule, a
court might justifiably refuse a belated
application for referral to
oral evidence. A court should, however, proceed in a rule 53
application with caution. An applicant
might institute proceedings in
good faith in terms of rule 53, in order to secure the advantages of
the rule and on the basis that
the application can properly be
decided by application of Plascon-Evans, only for the respondent to
later show that this is not
so. In these circumstances, provided the
dispute of fact which emerges is genuine and far-reaching and the
probabilities are sufficiently
evenly balanced, referral to oral
evidence or trial, as the case may be, will generally be
appropriate.”
63.
I accept that if the implementation of the general rule is to have
any prospect of avoiding
unnecessary costs and delay, notice of
the application for referral to trial should be given at the earliest
opportunity.
I do not, however, understand the judgment in Mamadi to
sanction, much less require, the application to be set down for
hearing
separately and prior to the main application irrespective of
the disruption and inconvenience, and additional costs. In Mamadi,
the constitutional court cited the abovementioned passage in Mogami.
The Mamadi judgment is consistent with the general rule and
contemplates and addresses the approach to applications for referral
made during the hearing. The general rule as developed in
our courts
sits uncomfortably with an interpretation that demands a separate
application at some earlier stage in the proceedings.
In Mamadi, the
application for referral was heard at the hearing of the main
application in the court a quo. The constitutional
court upheld the
appeal against the dismissal and referred the main application to
trial. This too indicates that the constitutional
court did not
intend to usher in a new practice. I find confirmation for this in
Repas v Repas, in which the point, founded
on Mamadi, was taken
that the appellant ought to have applied for a referral to oral
evidence as soon as a dispute was evident
on the papers. The court
recognised that the earliest opportunity was in the affidavits in the
main application and the appellant
had foreshadowed the application
in the replying affidavit. There was no criticism of the fact that
the application was heard during
the hearing of the main application.
The appeal against the dismissal was upheld and the application
referred for the hearing of
oral evidence.
The application for referral in this
matter
64.
As indicated in SA Metropolitan Lewensversekeringsmaatskappy,
the documents must be
interpreted to determine whether the
application for referral is a separate application in terms of rule
6(1) and 6(5). In this
instance, the applicant has made use of
curious combination of form 2 and 2(a). The notice bears the heading
notice of motion,
indicates an address at which it “will accept
notice and service of all processes in these proceedings”,
requires the
respondent to do the same and provide notice of its
intention to oppose and deliver an answering affidavit within the
periods specified
in rule 6(5)(b) and (d), and informs the respondent
that application will be made on an unspecified date in the event
that no notice
of intention to oppose is given. However, the notice
was served on the respondent’s attorneys at the address
specified in
the main application, seeks relief which is
predominantly interlocutory and requests the registrar to place the
matter on the roll.
The application was set down as an interlocutory.
The application was understood by the respondent to be an
interlocutory and there
was no complaint in terms of rule 30. In the
absence of a complaint, I assume for the purposes of this judgment
that the application
is made in terms of rule 6(11).
65.
The disruption and inconvenience caused by a too tolerant approach to
separate prevenient
applications for referral is evident in this
matter. In this matter, the applicant served the application for
referral eight court
days prior to the hearing of main application.
The referral application was part of a broader application to
consolidate the application
with the action. The applicant afforded
the respondent the time periods specified for a long form notice of
motion, and presumably
intended to take the full period provided in
rule 6(5)(e) to deliver a replying affidavit. The applicant made no
attempt to finalise
the papers prior to the hearing of the main
application and applied for a postponement for the interlocutory
application to be
heard. The postponement was granted.
66.
The finalised papers are voluminous. The applicant has annexed inter
alia all four of the
affidavits (without annexures), and various
documents in the main and other proceedings between the parties to
the founding affidavit.
The founding papers alone are nearly 350
pages and the reply another 125 pages with the answer taking up about
80 pages in between.
However, nearly nothing is said in the
applicant’s papers about the basis for the application for
referral. The material
is almost entirely in support of the other
relief. The applicant then exploited the practice in this division
which requires interlocutory
applications relating to matters other
than in respect of procedural delinquency to be enrolled in the
ordinary opposed motion
court. The result of these steps is an
inordinate delay to the main application.
67.
I have difficulty with the approach adopted by the applicant. The
main application could
not be consolidated with the action unless it
was referred to trial and an interlocutory application to consolidate
the main application
and the action prior to an order converting the
main application into an action would be premature. The applicant had
previously
attempted to consolidate the main application with another
markedly similar action. The previous application for consolidation
had failed and both the court a quo and the supreme court of appeal
had refused leave to appeal against the dismissal of the application.
Furthermore, the applicant had argued for the referral in both
applications for leave to appeal. Despite the absence of reasons
indicating the views of those courts on this issue, their decisions
must have signalled to the applicant that its prospects of
success
were uncertain and the third attempt at the same argument did not
warrant the cost and delay occasioned by this application.
In my
view, the application for referral could and should have been brought
on notice without a supporting affidavit and made in
limine at the
hearing of the main application.
68.
The founding affidavit filed in support of the application for
referral contains only a
couple of paragraphs which address the
disputes in the main application. These paragraphs include a short,
partial list of disputes
allegedly extracted from the affidavits in
the main application which the applicant contends cannot be decided
in the respondent’s
favour on affidavit. The applicant
effectively maintains that the Plascon-Evans rule precludes final
relief in the main application
but unexpectedly proceeds to contend
that “[w]hen these material disputes of fact and issues are
viewed within the larger
context of the litigation between the
parties, they are to be resolved at a trial (rather than through mere
oral evidence aimed
at each specific issue) … .” The
contention is materially different to the approach proposed in the
answering affidavit
in the main application.
69.
The answering affidavit in the main application contains a list of
similar disputes. However,
the applicant maintains that the
application should be dismissed because these disputes were
foreseeable. In a further affidavit
in response to the replying
affidavit in the main application, the applicant maintains that
“[t]he [respondent] has not delivered
any formal application
for the amendment of its notice of motion nor for the matter to be
referred to oral evidence.” And,
“the [respondent] has
not set out any exceptional circumstances that would warrant the
matter to be referred to oral evidence.”
The applicant persists
in this approach in the heads of argument in the main application and
only in the alternative contends that
there should be a referral to
oral evidence. The heads of argument conclude with the submission
that “[c]onsequently, by
applying the long-established legal
consequences in such circumstances, the application ought to be
dismissed, with costs, failing
which, the application ought to be
referred for the hearing of oral evidence.” The respondent
contends that there are no
relevant, genuine disputes of fact which
preclude the relief. The respondent only contemplates the possibility
of one dispute being
referred to oral evidence and proposes that
“[s]hould this court find that there is a dispute as to the
correct amount of
the invoice, the [respondent] will seek an order
for payment of €130 130 with only the question of the correct
value of the
goods delivered in terms of the disputed invoice to be
referred to oral evidence.” The respondent does not, however,
seek
an order to this effect in any of its papers.
70.
In the premises, both parties intimate an intention to first attempt
to persuade the court
on the merits and only if unsuccessful to seek
a referral to oral evidence, not trial. The adequacy of the notice is
to be determined
by the court hearing the main application and
the parties should be aware of the general rule against doing so and
the risk
that the court may not entertain that approach. The parties
have not abandoned these applications. If this application for
referral
is dismissed, the court hearing the main application is
bound to be faced with more than one application in terms of rule
6(5)(g).
71.
A court should cautiously approach an application for referral to
trial brought by a respondent
who contends that a genuine dispute of
fact is raised in its affidavits as the main application can be
properly decided on affidavit
through the application of the
Plascon-Evans rule which requires the applicant to accept the
respondent’s version of the
facts. An applicant may have good
reasons to accept the risks of the application of the Plascon-Evans
rule and to avoid a trial.
As stated in Joh-Air (Pty) Ltd v Rudman,
an applicant “may not want to be involved in the cost thereof;
his prospects
of success, after studying the answering affidavits,
may be slender; it may possibly lead to an undesired protracted
hearing; the
amount involved may be small; the respondent may be a
man of straw or on account of any of the other usual considerations”.
72.
A respondent would usually apply only if the denials or allegations
do not raise a genuine
dispute of fact or the court would be
justified in rejecting them on paper, or where the respondent
is unable to produce
an affidavit. (The respondent who could have
made the necessary averments but fails to do so should not be
permitted to supplement
the allegations through a referral to trial.)
In the latter case, the respondent does not dispute the facts alleged
by applicant
but seeks an opportunity to prove allegations that would
constitute a defence. As stated in Minister of Land Affairs and
Agriculture
and Others v D & F Wevell Trust and Others,
“
In the
former case the respondent in effect says: given the opportunity, I
propose showing that the applicant will not be able to
establish the
facts which it must establish in order to obtain the relief it seeks;
and in the latter the respondent in effect
says: given the
opportunity, I propose showing that even if the facts alleged by the
applicant are true, I can prove a defence.
(It is no answer to say
that motion proceedings must be decided on the version of the
respondent even when the onus of proving
that version rests upon the
respondent, because ex hypothesi the respondent is unable to produce
evidence in affidavit form in
support of its version.) It would be
essential in the situation postulated for the deponent to the
respondent's answering affidavit
to set out the import of the
evidence which the respondent proposes to elicit (by way of
cross-examination of the applicants' deponents
or other persons he
proposes to subpoena) and explain why the evidence is not available.
Most importantly, and this requirement
deserves particular emphasis,
the deponent would have to satisfy the court that there are
reasonable grounds for believing that
the defence would be
established. Such cases will be rare, and a court should be astute to
prevent an abuse of its process by an
unscrupulous litigant intent
only on delay or a litigant intent on a fishing expedition to
ascertain whether there might be a defence
without there being any
credible reason to believe that there is one. But there will be cases
where such a course is necessary
to prevent an injustice being done
to the respondent.”
73.
As indicated above, the alleged irresolubale disputes of fact are
described in the founding
affidavit in the application for referral
to trial, without reference to any of the affidavits in the main
application. In argument,
counsel for the applicant could not direct
my attention to the passages in the affidavits in the main
application that contained
the alleged disputes. The court cannot be
expected to search for the passages containing the relevant
allegations and evidence
and on locating them, perform the functions
described above without assistance. However, on a reading of the
answering affidavit,
the applicant appears to be able to address the
allegations made by the respondent and has done so. The applicant
does not allege
that it is unable to produce evidence in affidavit
form in support of its version or explain why such evidence is
unavailable.
The applicant certainly does not satisfy the
requirements set out in D & F Wevell Trust.
74.
The inability of the applicant to adequately indicate the disputes
that justify a referral
to trial at the instance of a respondent is,
in my view, a symptom of the purpose of the application for referral
which presents
as an afterthought. The applicant did not contend at
the time the answering affidavit and further affidavit were prepared
that
the main application cannot properly be decided on affidavit in
its favour through the application of the Plascon-Evans rule and
a
referral to trial is not sought in any of the affidavits in the main
application. The necessity for referral to trial similarly
escaped
the attention of the counsel responsible for the heads of argument in
the main application who sought to introduce therein
a referral to
oral evidence, not trial. The contention was first made in the
applications for leave to appeal and only after the
applicant had
failed in its first attempt to consolidate this application with
another action. The only discernible purpose of
the application is to
render feasible the consolidation of the main application with the
action.
75.
In the circumstances of this matter, the mere presence of some
disputes of fact is insufficient
for a referral to trial at the
instance of the applicant. The applicant has not explained and I
cannot detect any convenience to
either the court or the parties in
hearing only this application separately and prior to the hearing of
the main application. In
the premises, the application for referral
to trial is to be dismissed. As the consolidation is dependent on the
main application
being referred to trial that too must be dismissed.
Costs
76.
The parties submitted that costs should follow the result and scale C
should apply. In my
view, scale C is the correct scale. The main
reasons being the connection between this interlocutory application
and the main application
and action, rendered it sufficiently complex
to warrant the aforementioned scale, as did the consequences for the
main application
and the action, and therefore the importance of the
relief for the parties.
77.
The respondent sought punitive costs. The respondent principally did
so on the basis that
the purpose of the application for referral was
to frustrate the right to expeditious relief on motion. In other
words, the application
for referral was vexatious. The supreme court
of appeal has endorsed the extended meaning of ‘vexatious’
to include
conduct which puts the other side to unnecessary trouble
and expense which it ought not to bear in the particular
circumstances
of the matter. However, in doing so, the supreme
court of appeal cited with approval Johannesburg City Council v
Television
& Electrical Distributors (Pty) Ltd and Another,
in which the appellate division cautioned against “censuring a
party by way of a special costs order when with the benefit of
hindsight a course of action taken by a litigant turns out to have
been a lost cause”. The constitutional court has repeatedly
stated that a punitive costs order is warranted in circumstances
where it would be unfair to expect a party to bear any of the costs
occasioned by the litigation.
78.
In my view, the application for referral to trial should have been
brought on notice without
an affidavit at the hearing of the main
application. If the applicant had done so, presumably the respondent
would have raised
the points of opposition mentioned in the answering
affidavit and the heads of argument at the hearing. The costs may
have been
less but would nevertheless have been substantially
incurred. I cannot speculate as to the course of action the court
seized with
the main application would have adopted if faced with an
opposed application for referral. The court was presented with a
postponement
application and granted the postponement in order for
this application to be resolved and, as indicated above, the approach
is
not entirely without support in the authorities. In such
circumstances, the conduct of applicant cannot be described as clear
and
indubitably vexatious or reprehensible. In the premises, I
decline the request for punitive costs.
Order
79.
In the premises, I make the following order:
1.
The application is dismissed.
2.
The applicant shall pay the costs of the application on scale C.
Q LEECH
Acting Judge of High Court
Gauteng Local Division,
Johannesburg
APPEARANCES
For the Applicant:
A. Pillay
Instructed by C&O
Inc.
For the Respondent: M.
Nieuwoudt
Instructed by
WerthSchröder Inc.
Heard on: 20 November 2024
Delivered on: 10 March 2025
This judgment was handed down
electronically by circulation to the parties’ representatives
by email, by being uploaded to
Case Lines and by release to SAFLII.
The date and time for hand-down is deemed to be 10 March 2025.
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