Case Law[2025] ZAGPJHC 344South Africa
YAFA Holdings (Pty) Ltd ta Fuel Solutions v Merchant West (Pty) Limited and Others (2024/022707) [2025] ZAGPJHC 344 (31 March 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
31 March 2025
Headnotes
Summary
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## YAFA Holdings (Pty) Ltd ta Fuel Solutions v Merchant West (Pty) Limited and Others (2024/022707) [2025] ZAGPJHC 344 (31 March 2025)
YAFA Holdings (Pty) Ltd ta Fuel Solutions v Merchant West (Pty) Limited and Others (2024/022707) [2025] ZAGPJHC 344 (31 March 2025)
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sino date 31 March 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
No: 2024 - 022707
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
DATE SIGNATURE
In
the matter between –
YAFA
HOLDINGS (PTY) LTD t/a
APPLICANT
FUEL
SOLUTIONS
AND
MERCHANT
WEST (PTY) LIMITED
1
ST
RESPONDENT
OPTICAL
MEDIAWORX LOGISTICS (PTY) LTD
2
ND
RESPONDENT
NGONIDZASHE
FERRIS RUTSITO
3
RD
RESPONDENT
RAIN
FORESTS OF SOUTH AFRICA TRADING
4
TH
RESPONDENT
(PTY)
LTD
JUDGMENT
MOORCROFT AJ
Summary
Application
for leave to appeal – section 17(1)(a)(i) and (ii) of the
Superior Courts Act - reasonable prospect of success
or some other
compelling reason why the appeal should be heard
No exceptional
circumstances meriting leave to appeal on costs only – section
16(2)(a)(ii) and (ii) of the Superior Courts
Act
No reasonable prospect
of success identified and no compelling circumstances found to exist
Order
[1]
In this matter I make the following order:
1.
The late filing of the application
for leave to appeal is condoned;
2.
The application for leave to appeal
is dismissed;
3.
The applicant is ordered to pay the
costs of the application on scale C.
[2]
The reasons for the order follow below.
Introduction
[3]
This is an application for leave to appeal
against a decision handed down by me on 26 March 2024 in the Urgent
Court.
The application was filed late by a
few days and the applicant’s condonation application is not
opposed by the first respondent.
The late filing did not occasion any
prejudice and is condoned.
[4]
The order I made read as follows:
1.
Having read the papers, considered
the matter and heard counsel, the following order is made
:
2.
The
application by the applicant, YAFA HOLDINGS
(PTY) LTD t/a FUEL
SOLUTIONS brought under the above case number is removed from the
urgent court roll of 25 March 2024;
3.
The
applicant YAFA HOLDINGS (PTY) LTD t/a FUEL SOLUTIONS is directed to
pay the costs of the first respondent including the costs
of
appearance on 26 March 2024
[5]
Matters in the urgent court are
automatically set down and the matter appeared on the roll of the
urgent court
published on 22 March 2024.
[6]
An initial
application between
Merchant West
(Pty) Ltd and three respondents (Optical Mediaworx Logistics (Pty)
Ltd, Ngonidzashe Ferris Rutsito and Rain Forests
of South Africa
Trading (Pty) Ltd)
was
first uploaded to CaseLines on 29 February 2024. The present
applicant brought an application for leave to intervene that was
uploaded on 15 March 2024. The present first respondent’s
answering affidavit to the intervention application was uploaded
on
the same day. This judgment deals with the intervention application
only.
[7]
The applicant did not file a replying
affidavit but on 18 March 2024 it gave notice that it was withdrawing
the urgent application
for leave to intervene that was on the roll
for 26 March 2024. The first respondent replied on the 18
th
,
indicating that the notice was not accompanied by a tender for costs
and that it was awaiting such a tender.
[8]
When the matter was called on the 26
th
there was initially no appearance for the applicant. Counsel for the
first respondent appeared and advised that the application
had been
withdrawn without a tender for costs, and that the notice was filed
out of time as the matter was already on the roll.
[9]
The withdrawal of the application is
governed by rule 41. The rule provides:
“
(1)(a) A
person instituting any proceedings may at any time
before
the matter has been set down and thereafter by consent of the parties
or leave of the court
withdraw
such proceedings, in any of which events he shall deliver a notice of
withdrawal and may embody in such notice a consent
to pay costs; and
the taxing master shall tax such costs on the request of the other
party.”
[emphasis added]
…
(c) If no such
consent to pay costs is embodied in the notice of withdrawal, the
other party may apply to court on notice for
an order for costs.”
[10]
The applicant did not seek the leave of the
court and did not have the consent of the first respondent. I granted
an order removing
the matter and ordering the applicant to pay the
costs of the first respondent. The order was made in the absence of
the applicant
on whose behalf there was no appearance.
[11]
Subsequently the counsel for the applicant
appeared and I recalled the first order. Counsel presented argument
on the question of
costs and after hearing argument I made the order
set out above.
[12]
Section
17(1)(a)(i)
and (ii) of the
Superior Courts Act 10 of 2013
provides
that leave to appeal may only be given where the judge or judges
concerned are of the opinion that the appeal would have
a reasonable
prospect of success or there is some other compelling reason why the
appeal should be heard. The requirement that
leave must be obtained
serves the purpose of a gatekeeper and ensures that valuable judicial
resources are not wasted.
[1]
[13]
An
appeal lies against the decision
[2]
of the court and not against the reasons for the decision.
[3]
[14]
In
Ramakatsa
and
others v African National Congress and another
[4]
Dlodlo
JA summarised the authorities as follows:
“
[10]
.. The test of reasonable prospects of success postulates a
dispassionate decision based on the facts and the law that a court
of
appeal could reasonably arrive at a conclusion different to that of
the trial court. In other words, the appellants in this
matter need
to convince this Court on proper grounds that they have prospects of
success on appeal. Those prospects of success
must not be remote, but
there must exist a reasonable chance of succeeding. A sound rational
basis for the conclusion that there
are prospects of success must be
shown to exist.”
[15]
Section 16
(2) of the
Superior Courts Act
provides
that an appeal may be dismissed on the ground that the
issues are of such a nature that the decision sought will have no
practical
effect or result.
Save
under exceptional circumstances, the question whether the decision
would have no practical effect or result is to be determined
without
reference to any consideration of costs.
[16]
Mr Mhango on behalf of the applicant
submitted that leave to appeal to the Full Court should be granted,
with an order that the
costs be reserved. He argued that there are
reasonable prospects of success on appeal, and that there are
exceptional circumstances
that merit the granting of leave even
though the appeal is only against a cost order. He submitted that the
conduct of the first
respondent was to blame for the state of
affairs, and that the proper course to follow on 26 March 2024 would
have been to remove
the matter from the roll and to require the first
respondent to set it down in terms of
rule 41(1)(c).
[17]
Rule 41(1)(c)
does not preclude a party
from appearing to argue the costs in an application withdrawn shortly
before the allocated hearing date.
The Court dealing with the matter
is in a position to hear argument on costs and to grant an order.
[18]
In my view requiring the first respondent
to accept the withdrawal and to then set the cost argument down for
another day would
require a second Judge to read the papers, and the
parties to come to Court on another day to argue the matter, thus
unnecessarily
burdening the court system and incurring extra costs
for all parties.
[19]
I conclude that there are no reasonable
prospects of success on appeal, and that there are no exceptional
circumstances meriting
leave on a question of costs only.
[20]
Mr Venter who appeared for the first
respondent argued that the application be dismissed with costs on
scale C as the matter was
of sufficient importance and complexity to
merit costs on the higher scale. Mr Mhango on the other hand
submitted that if the application
were to be dismissed, the costs
should be on the lower scale.
[21]
In my view a costs order on scale C is
justified firstly because of the complexity of the application and
secondly because the application
should never have been brought under
circumstances were only a cost order was sought to be appealed in the
absence of identifiable
exceptional circumstances.
[22]
I therefore make the order in paragraph 1
above.
MOORCROFT AJ
ACTING JUDGE OF THE
HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION
JOHANNESBURG
Electronically
submitted
Delivered:
This judgement was prepared and authored by the Acting Judge whose
name is reflected and is handed down electronically
by circulation to
the Parties / their legal representatives by email and by uploading
it to the electronic file of this matter
on CaseLines. The date of
the judgment is deemed to be
31 March
2025
ATTORNEY
FOR THE APPLICANT:
MD
MHANGO
INSTRUCTED
BY:
BAZUKA
& CO INC
COUNSEL
FOR THE FIRST RESPONDENT:
AJ
VENTER
INSTRUCTED
BY:
UMS
ATTORNEYS
DATE
OF ARGUMENT:
28
MARCH 2025
DATE
OF JUDGMENT:
31
MARCH 2025
[1]
Dexgroup
(Pty) Ltd v Trustco Group International (Pty) Ltd
2013 (6) SA 520
SCA para 24.
[2]
Section
16
(1) (a) of the
Superior Courts Act.
[3
]
Medox
v Commissioner, South African Revenue Service
2015 (6) SA 310
(SCA) para 10 and
Tecmed
Africa (Pty) Ltd v Minister of Health and Another
[2012] All SA 149
(SCA) para 17.
[4]
Ramakatsa
and
others v African National Congress and another
[2021] JOL 49993
(SCA), also reported as
Ramakatsa
v ANC
2021 ZASCA 31.
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