Case Law[2025] ZAGPJHC 326South Africa
ENRC Mozambique Limitada v Riverland Holdings Limited (42562/2015) [2025] ZAGPJHC 326 (27 March 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
27 March 2025
Headnotes
it is established that the way to challenge the authority of anyone acting on behalf of a litigant is to use the procedures envisioned by Rule 7(1) of the Unform Rules of Court. As ENRC had not done so, its arguments about authority, which included the eventual attack on the authenticity of the resolution, could not succeed. I also found that the facts show Mr Gomes to
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## ENRC Mozambique Limitada v Riverland Holdings Limited (42562/2015) [2025] ZAGPJHC 326 (27 March 2025)
ENRC Mozambique Limitada v Riverland Holdings Limited (42562/2015) [2025] ZAGPJHC 326 (27 March 2025)
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sino date 27 March 2025
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
Case no: 42562/2015
In
the matter between:
ENRC
MOZAMBIQUE LIMITADA
Applicant
and
RIVERLAND
HOLDINGS LIMITED
Respondent
This
judgment was delivered by uploading it to the court online digital
database of the Gauteng Division of the High Court of South
Africa,
Johannesburg, and by email to the attorneys of record of the parties
on 27 March 2025.
JUDGMENT
VAN
DER WALT AJ
# Introduction
Introduction
[1]
I have before me two applications. The one is an
application for leave to appeal. The other is an application in
terms
of Rule 42 of the Uniform Rules of Court to vary an order of
this court. Both applications relate to a judgment I gave on
10
November 2024.
Factual background
[2]
Very briefly, the matter is about specific performance in
terms of an oral agreement concluded in 2011. Riverland sought
to
enforce the oral agreement and payment for the performance of its
obligations in terms of it. Riverland attached to its founding
affidavit invoices, schedules and accounts that show the outstanding
amount due to it for labourers provided to ENRC. Among
the
affidavits it filed, were affidavits by the two persons involved in
the conclusion of the oral agreement. They made common
cause
about its terms.
[3]
ENRC answered with its own version of the oral agreement, but
did not lead evidence of anyone within earshot when it was
concluded.
Notwithstanding not calling into question the
credibility of the two persons involved in the conclusion of the oral
agreement,
it sought to put into evidence documents which the
deponents to its affidavits interpreted as indicative of its terms.
Most
importantly, it sought to show that the agreement related to
more than the provision of labourers (or manpower).
[4]
ENRC made two arguments that remain relevant to the
application for leave to appeal. The first is about the
authorisation
of the main application. The second is about
disputes of fact on the papers.
The argument about
authorisation
[5]
ENRC disputed Mr Gomes’ authorisation to have had the
main application issued in its answering affidavit. In reply,
Mr Gomes attached a resolution he said was that of Riverland.
ENRC did not rely on Rule 7 of the Uniform Rules of Court and
over
the course of 9 years of litigation it did not assert its rights in
terms of the Rule. The attack on the authorisation
of the main
application changed over the course of the proceedings. In its
heads of argument in the main application, ENRC
sought to attack the
authenticity of the resolution. At the hearing of the main
application, the attack on the authenticity
of the resolution was
maintained, while ENRC also made arguments about the content (or
efficacy) of the resolution.
[6]
I held that it is established that the way to challenge the
authority of anyone acting on behalf of a litigant is to use the
procedures
envisioned by Rule 7(1) of the Unform Rules of Court.
As ENRC had not done so, its arguments about authority, which
included
the eventual attack on the authenticity of the resolution,
could not succeed. I also found that the facts show Mr Gomes to
have been properly authorised to represent Riverland. The
resolution itself constitutes proof of the authorisation and all
the
facts before the court showed that Mr Gomes at all relevant times had
been properly authorised to represent Riverland in its
dealings with
ENRC.
[7]
In its heads of argument filed in the application for leave to
appeal, ENRC submits that it “is established that the way to
challenge the authority of anyone acting on behalf of a litigant, is
to use Rule 7.” In doing so it refers to the same
Supreme
Court of Appeal authority I referenced in the judgment in the main
application. I would have thought that is the
end of the
argument. Surprisingly, it isn’t. Instead, ENRC
referred to a judgment of the Northen Cape Division,
Kimberley.
According to ENRC it renders the use of Rule 7 optional.
This is a striking submission in the face of clear
Supreme Court of
Appeal ratio to the contrary. The submission cannot be
sustained. The Kimberley judgment was not relied
upon in the
main hearing, was decided prior to the relevant judgment by the
Supreme Court of Appeal, is most probably wrong and
is in any event
not binding on this court.
[8]
Little, if anything, remains of the arguments in respect of
Rules 7 and 63. All the relevant evidence before the court was
produced by Riverland. ENRC was therefore reduced to a
factually entirely unsubstantiated denial of the application’s
authorisation and the authenticity of the signature on the
resolution, a self-serving interpretation of the resolution that
ignored
the context in which it was made and, at worst, a submission
that what was said in the replying affidavit somehow determined the
ambit of the authority bestowed by the resolution itself. These
arguments have no prospects of success on appeal.
The argument about
disputes of fact
[9]
In considering its arguments in respect of this court’s
reasoning about the purported disputes of fact, ENRC submits that the
court “effectively determined the matter on the
probabilities”. That is wrong. This court found
that ENRC
filed affidavits by deponents who had no knowledge of the
facts they purported to speak to. ENRC’s arguments, which
ignore that finding, have no prospects of success on appeal.
The application for a
variation of the order
[10]
Both parties filed applications in terms of Rule 42 to vary
the court’s order made on 10 November 2024. Riverland
asked
that the order reflect the bank account into which moneys due
are to be paid. ENRC asked for a variation that would in effect
confirm that the in duplum rule applies to the order. Riverland
did not persist in its application. ENRC persisted
in its
application on the basis that it sought certainty about the matter.
[11]
The order is obviously subject to the in duplum rule.
Much the same as all orders of court are subject to the rules that
must
be abided to ensure that they are lawfully executed. In
addition, Riverland did not take issue with the calculations in
respect
of interest ENRC assert are to be made. In fact, during
the hearing counsel for Riverland freely submitted that they reflect
the law. I therefore fail to see how the variation of the order
can lead to any further certainty in the matter.
[12]
Rule 42 isn’t a gateway through which parties can obtain
the guidance of the court as to the lawful execution of an order
where no uncertainty in that regard exists. It carefully crafts
out exceptions to the important general rule that once a court
has
pronounced on a matter, it itself has no authority to correct, alter
or supplement it. The relevant exceptions are, firstly,
that
there must be a “patent error or omission” in the order
and, secondly, that it was granted because of a “mistake”
common to the parties. The 10 November 2024 order does not
contain a “patent error or omission” and was not granted
because of a mistake common to the parties.
[13]
In the event,
I make
the
following order:
The
applications are dismissed with costs on scale C, including the costs
of two counsel.
_________________________________
Nico van der Walt
Acting Judge, Gauteng
Division, Johannesburg.
Heard:
26 March
2025
Judgment:
27 March 2025
Appearances:
For the applicant
Adv A. Eyles SC
Instructed by Eric van
den Berg Attorneys Inc
For the respondent
Adv H.J. Smith SC
with him A. Myers
Instructed by Myers Inc.
Attorneys
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