Case Law[2025] ZAGPJHC 440South Africa
Perumal v FDE Debt Collection and Another (2025/040411) [2025] ZAGPJHC 440 (6 May 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
6 May 2025
Headnotes
in contempt. In any event the order holding the first respondent in contempt may be ineffective as the company may not be committed to prison. [17] It is indeed correct that the second respondent in his personal capacity was not cited and should have been formally joined and be found to have committed contempt of court.[3] To this end the second respondent’s point in limine is sustained. Merits
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Perumal v FDE Debt Collection and Another (2025/040411) [2025] ZAGPJHC 440 (6 May 2025)
Perumal v FDE Debt Collection and Another (2025/040411) [2025] ZAGPJHC 440 (6 May 2025)
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sino date 6 May 2025
SAFLII
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Certain
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IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
DIVISION, JOHANNESBURG
Case
No:2025-040411
(1)
REPORTABLE:
YES
/ NO
(2)
OF INTEREST TO OTHER JUDGES:
YES
/NO
(3)
REVISED: NO
6
May 2025
In
the matter between:
IRVIN
PERUMAL
Applicant
and
FDE
DEBT COLLECTIONS
First Respondent
JEROME
JOOSTE
Second Respondent
## JUDGMENT
JUDGMENT
NOKO
J
Introduction
[1]
The applicant instituted an urgent application for an order declaring
the respondents to be in contempt of Court for failing
to implement
an order granted by Crutchfield J on 2 April 2025. Crutchfield J
ordered the first respondent to return a certain
motor vehicle,
to
wit
, BMW 3[…], with registration number J[…] with
VIN number W[…] (“vehicle”). The respondents are
opposing the application and have, raised a point
in limine
of
misjoinder in addition to delivery of the opposing affidavit.
Parties.
[2]
The applicant is Irvin Perumal, an adult male resident at 3[...]
E[...] Drive, B[...], Randburg.
[3]
The first respondent is FDE collections, a company (juristic person)
carrying business at 5[…] S[…] Road,
N[…],
Roodepoort.
[4]
The second respondent is Jerome Jooste, an adult male employed at
5[…] Shannon Road, N[…], Roodepoort.
Background
[5]
On 2 April 2025 the applicant applied and obtained an order in the
urgent court for the return of the motor vehicle seized
by the first
respondent. The first respondent was represented at the hearing by
the second respondent. The first respondent seized
the vehicle on 25
March 2025 from the applicant with the assistance of the member of
SAPS and sheriff armed with the order of court
granted in favour
Nedbank Ltd for the seizure and collection of the motor vehicle.
[6]
The applicant had kept the vehicle with him after it was brought for
the repairs which were effected as at the time when
the motor vehicle
was seized by the first respondent.
Urgency
[7] The applicant
avers that the first respondent was ordered to return the motor
vehicle on 4 April 2025. Further, that he
communicated with the
second respondent via whatsapp who then undertook to attend to the
matter on 7 April 2025. He subsequently
proceeded to issue the urgent
application on 10 April 2025 for the contempt of court. In any event
the court order is sacrosanct
and need to be complied with.
[8]
The respondents were aggrieved by the strictest time frames set out
by the applicant which were not in compliance with
the rules and the
court’s directives. The respondents contend that the
application is not predicated on proper grounds decreed
where one
intends to approach court on the basis of urgency. The urgency is
predicated on the contention that the vehicle is about
to be
auctioned but there is no supporting evidence for such an allegation.
Further that the applicant was made aware that the
vehicle is not
with the first respondent and is with Nedbank Limited (“Nedbank”).
The contact details of the attorneys
acting for Nedbank were availed
to the applicant who was intransigent and threatened to approach the
court.
[9]
If anything, the respondents argue that there is no urgency proved by
the applicant and if same is found to exist the
applicant created the
urgency. The application should therefore be struck from the roll.
[10]
I had
regard to submissions and noted that the respondents have correctly
argued that the allegations by the applicant that there
is pending
auction is not substantiated by any evidence from by both applicants
but find that in general terms contempt of court
applications are
urgent more particularly that the respect of the court need to be
preserved and protected. Non-compliance has
the effect of impairing
the effective administration of justice.
[1]
I therefore find that the application deserve audience of the urgent
court.
Points
in limine
[11]
The respondents raised several points
in limine
set out below.
Lack
of service.
[12]
The respondents contended that the applicant has failed to serve the
order on the respondents and having regard to the
nature of the
relief sought it is imperative that the order court should have been
served. In the premise, the application must
be dismissed with costs
at a punitive scale.
[13]
In retort, the applicant submitted that the respondents were in court
and made undertaking to return the car. So, they
are aware of the
court order. In addition, the second respondent was reminded of the
court order via whatsapp for which he acknowledged
receipts thereof
and made an undertaking to comply therewith.
[14]
I had
regard to the submission by both parties and note it is not the
exclusive requirement that the order should be served on a
party for
the purposes of the contempt application. Instead, it would be
sufficient if it is proved that the respondents had knowledge
of the
court order. In this instance the first respondent was represented at
court and had the required knowledge which should
be sufficient for
contempt of court application. In any event it is not disputed that
the order was relayed to the second respondent
via whatsapp/email. In
fact, the respondents stated in the answering affidavit that “The
1
st
Respondent upon receive (
sic
)
of the Order via WhatsApp informed the Bank of the Order.”
[2]
I am satisfied that the first respondent was made aware of the order
of the court, and the point
in
limine
is dismissed.
Misjoinder
of the second respondent.
[15]
The counsel for the respondents contended that the relief sought
against the second respondent is not competent since
the second
respondent was not properly joined as a party in the
lis
. In
addition, the second respondent had at all times being acting in his
capacity as the general manager of the first respondent
and not in
his personal capacity. That the application must therefore be
dismissed on this ground alone with punitive costs order.
[16]
The applicant, in retort, contended that the second respondent has
always been the party which was in the forefront of
the matter on
behalf of the first respondent. To this end, he must be the one to be
held in contempt. In any event the order holding
the first respondent
in contempt may be ineffective as the company may not be committed to
prison.
[17]
It is
indeed correct that the second respondent in his personal capacity
was not cited and should have been formally joined and
be found to
have committed contempt of court.
[3]
To this end the second respondent’s point
in
limine
is sustained.
Merits
Parties’
versions and submissions.
[18]
The applicant stated that the second respondent who was in court when
Crutchfield J made an order informed the court
that the vehicle was
with the bank and made an undertaking that the car will be returned
on 4 April 2025. The order was indeed
forwarded by email to the
second respondent and same was also followed by a whatsapp. The
second respondent replied and informed
the applicant that the
communication including the court order were given to the bank and
the latter relayed the information to
the bank’s attorneys for
further handling.
[19]
The vehicle was unlawfully taken from him and worse it was taken with
the assistance of the sheriff who had no jurisdiction
over the area
where the applicant resided. The basis to claim his right to the
common law remedy of
ius retentionis
was premised on the fact
that he expended amount in excess of R50 000.00 in the repairs
effected on the vehicle.
[20]
Counsel for the respondents outlined the involvement of the first
respondent in the repossession of the motor vehicles
from third
parties. The first respondent receives instructions from the Banks
which would normally have obtained an order of court
against its
customers for repossession. The first respondent would then trace the
motor vehicle and then make whoever is in possession
aware of the
court order. In the event the possessor refuses to hand over the
vehicle, the first respondent would summon the assistance
of the
sheriff and members of SAPS for assistance in carrying out the order
of court.
[21]
In this instance both SAPS representatives attend at the scene and
assisted in repossessing the motor vehicle. The applicant
insisted
that the repossession should be done at the police station and all of
them drove to SAPS where the vehicle was ultimately
given to the
first respondent. To this end, the first respondent contended that
the surrendering of the car was voluntary and amounted
to the waiver
of the alleged lien by the applicant. In addition, the contention by
the applicant that the vehicle was repossessed
by sheriff without
jurisdiction is unfounded since the warrant did not specify any
sheriff and as such any sheriff can assist in
the repossession of the
vehicle wherever it is located.
[22]
The
respondents in retort stated that the order by Crutchfield J is not
very clear and as such is difficult to implement. It says
that a
party should take reasonable steps to ensure that the car is brought
back to the applicant and where an order is unclear
a party may be
entitled to ignore it. Counsel referred the court to the judgment in
University
of Cape Town
[4]
where, counsel said, under these circumstances the court can be
considered void.
[23]
In any event, counsel argued, the second respondent has tried all
that he could to get the vehicle back from the Bank.
Attempts were
also made to ensure that the second respondent communicates with the
applicant to directly discuss the matter with
the attorneys acting
for the bank. The applicant spurned the suggestion and stated that he
would approach the court for the necessary
relief if the vehicle was
not returned.
[24]
Counsel
further contended that, having regard to the submission aforesaid,
the applicant has failed to prove that the respondents
had the
intention to disregard the court order. Reference was made of
Fakie
NO
[5]
which
set out the requirements which must be satisfied before an order is
granted, namely, existence of the order, service or notice
of the
order, non-compliance and wilfulness and mala fides in relation to
non-compliance. Further, that the standard of proof to
establish
evidence for contempt is beyond reasonable doubts and finally that
the applicant is required to proof service and non-compliance
and
thereafter the onus shift to the respondents to proof lack of
mala
fides
or intention to disobey the order.
Issues
[25]
The issue for determination is whether the applicant has made out a
case for contempt of court.
Legal
principles
[26]
The
argument that certain court orders are a nullity was considered by
the Constitutional Court in
Ndabeni
[6]
where it was held that no one is entitled to ignore an order of
court. Further that court order remain extant and enforceable until
set aside.
[27]
It was
stated in
State
Capture
[7]
that
:
“
As set out
by
the Supreme Court of Appeal in
Fakie
,
and approved by this Court in
Pheko
II
,
it is trite that an applicant who alleges contempt of court must
establish that (a) an order was granted against the alleged
contemnor; (b) the alleged contemnor was served with an order or had
knowledge of it; and (c) the alleged contemnor failed to comply
with
the order. Once these elements are established, wilfulness and mala
fides are presumed and the respondent bears an evidentiary
burden to
establish a reasonable doubt. Should the respondent fail to discharge
this burden, contempt would have been established.”
[8]
(footnotes omitted).
Analysis
[28]
Counsel was
taken to task with the contention that the judgment which is not
clear need not be complied with. To this end counsel,
with a measure
of reluctance, persisted that the order enjoined the respondent to do
all that was reasonable and to this end he
complied with the order.
This was despite the caution from me that it may not be proper for
counsel as an officer of the court
to advise, intentionally or
otherwise, her clients not to comply with an order of court because
it was not clear to him. The first
respondent contends that in an
attempt to take reasonable steps in accordance with the order “…it
has informed the
Bank of the Order and attempted to connect the
applicant and the Bank’s attorneys to try to resolve the
despite that the
possession of the Vehicle.”
[9]
The communication of the order to the Bank cannot be construed as an
attempt (or reasonable attempt without more) to comply with
the order
or to deliver the vehicle in compliance. The first respondent should
have demanded the vehicle and if the bank refuses,
as applicant
contended, second respondent should have then approached the court to
state that he is frustrated to execute the order
and not ignore it.
[29]
Despite
having referred to authorities that the burden is on the respondents
to prove lack of intention or
mala
fides
the respondents stated that “… the applicant has failed
to establish how the respondents are in wilful default of
the
order.”
[10]
[30]v
Though counsel has further intimated the possibility of appeal such
an indication fortifies the applicant’s allegations
that the
first respondent was represented by the second respondent who had the
opportunity to address the court and he did so.
Otherwise, the
respondents could be speaking of rescission and not appeal. To this
end one can safely conclude that the attempt
to raise a dispute is
hopeless, implausible and untenable.
[31]
In this
case the applicant was able to demonstrate that the first respondent
has knowledge of the court order more so that it was
made in their
presence and same being sent by WhatsApp and acknowledged by the
second respondent. The respondents had the onus
to displace
possibility of intention or mala fides on their part. The only thing
which in any event fell short of attempt to execute
the order was
just to notify the bank of the Order and not demand the motor
vehicle, whilst the respondents thought of challenging
the order (by
appealing same) decided not to do so even through a counter
application, if appropriate. The respondents argued that
the judgment
in
University
of Cape Town
[11]
entitle them to ignore the order. Further, that there are several
interpretations to be attached to the order. Counsel referred
this
Court to the passage in
University
of Cape Town
[12]
where it was stated that:
“
Turning
to
the applicants second ground, that the conditions are void
uncertainty, the question is whether conditions, properly
interpreted,
bear a reasonably precise meaning sufficiently to inform
the Universities what is required of them. In other words, is it
reasonably
ascertainable what action will constitute compliance and
what omission will constitute non-compliance? If the answer to those
questions
are in the negative, the conditions are bad in law and
therefore void.”
[32]
University
of Cape Town
judgment is distinguishable as it related to conditions in the
University Act 61 of 1955. The case serving before me relates to
court orders. It is settled law that court orders are valid and
enforceable until set aside by a court. It was stated by the
Constitutional
Court in
Ndabeni
[13]
that
“
Trite, but
necessary it is to emphasise this Court repeated
exhortation that constitutional rights and court orders must be
respected. .
.. no
one should be left with
the impression that court orders - including flawed court orders -
are not binding, or that they can be
flouted with impunity.”
This Court in
State
Capture
reaffirmed that irrespective of their validity, under
section 165 (5) of the Constitution, court orders are binding until
set aside.
Similarly,
Tasima
held that wrongly issued judicial
orders are not nullities. They are not void or nothingness but exist
in fact with possible legal
consequences. (Footnotes omitted)
[33]
The applicant submitted the second respondent stated in court that he
will ensure that the motor vehicle is returned
on 4 April 2025. In
return the court ordered that all that is necessary should be done to
ensure that the vehicle is returned.
There is nothing unclear about
this order. The applicant has correctly stated that if for any reason
the respondents is being frustrated
to execute the order the
respondents should have approached the court to obtain an order
against whomsoever is frustrating the
implementation of the order
alternatively approach the court to vary the order if so advised.
[34]
Instead,
the respondents just notified the bank about the order and conveyed
the contacts of the Bank’s attorney to the applicant.
This
cannot be construed as action from a party attempting to give effect
to the order. The defence that the order is unclear is
unsustainable
as it is not ambiguous that do all to ensure the vehicle is returned.
Even if it could be argued that it is unenforceable
the respondents
are not entitled to take a supine posture and consider same to be a
nullity but should approach court for clarity
or even appeal the
order as it was intimated during argument.
[14]
Taking a conscious decision that nothing is going to be done is a
deliberate conduct on the part of the respondent which the respondent
failed to dispel.
[35]
It is noted
that some of the exculpatory stance could be where a party can
demonstrate that there was reasonable mistake
[15]
or demonstrated his own bona fides
[16]
.
It is further noted from
Scalabrini
Centre
[17]
that
the “Courts ought not to compel the impossible”.
[18]
The court held in
Scalabrini
Centre
that “Moreover, litigants who are required to comply with court
orders, at the risk otherwise of being in contempt if they
do not,
must know with clarity what is required of them.”
[19]
In the premises I find that the applicant has proved his case against
the first respondent.
Appropriate
sanction
[36]
Once a
court has returned a decision that contempt of court has been
committed, an appropriate sanction should be imposed and this
could
either be a coercive or punitive order. A coercive order would accord
a contemnor an opportunity to purge the contempt and
comply with the
order granted and avoid the sentence of paying a fine or
imprisonment. The amount payable is generally discretionary
and Court
may have regard to seriousness and extend of defiance, purpose of the
fine being to encourage compliance, prevalence
of the infraction and
comparative orders. The contemnor was ordered to pay R40 000.00
in
T.M.B
[20]
.
[37]
The
respondents should be sentenced to a fine of R50 000.00 which is
suspended for a period of 30 days to enable the respondents
to purge
the contempt, failing which the aforesaid fine must be paid to the
Department of Justice. The applicant’s wish was
that the fine
should be paid to himself and this argument fail to appreciate that
the offence of contempt of court is an affront
to the court and not
the applicant.
[21]
Costs
[38]
There applicant was not represented and therefore no costs order
would be made in his favour. There will be no costs
order granted in
respect of the points
in limine
raised by the respondents.
Order
[39]
In the result, I make the following order:
1. The Applicant’s
non-compliance with the rules and /or practice directives relating to
service and time periods is
condoned and the application is allowed
to be heard in accordance with Rule 6(12) of the Uniform Rules of
Court.
2. The Respondents’
point
in limine
of misjoinder is upheld.
3. The Respondents’
point
in limine
of lack of service is dismissed.
4. It is declared
that the First Respondent is found to be in contempt of the order of
Court dated 2 April 2025.
5. The First
Respondent is ordered to comply with the order of the Court dated 2
April 2025 within 15 days of handing down
of this order, failing the
First Respondent is sentenced to pay a fine of R50 000.00
payable to the Department of Justice
with 7 days thereafter.
6. No order as to
costs.
MV NOKO
JUDGE OF THE HIGH
COURT
JOHANNESBURG
This
judgement was prepared and authored by Noko J 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
6 May 2024.
Date
of hearing:
14 April 2025
Date
of judgment:
6 May 2025
Appearances
For
the Applicant:
In person
For
the Respondents:
FA Darby
Instructed
by
UMS Attorneys.
[1]
Matjhabeng
Local Municipality v Eskom Holdings Ltd & Others
2018
(1) SA 1
CC.
[2]
See
para 38 of the Respondents’ Answering Affidavit at CL 02-73.
The respondents disputed that service by Whatsapp is not
correct,
and stated at para 68 that “Sending the Order via WhatsApp to
me is insufficient and not in compliance with service
of a court
order, particularly where contempt of same would attract criminal
sanctions”. CL02-78.
[3]
It was, however, stated that where a director assist the company in
avoiding compliance such a director may be found to be in
contempt.
It was held in
Twentieth
Century Fox Film Corporation
[3]
that:
“
a
director of the company who, with knowledge of an order of court
against the company, causes the company to disobey the order
is
himself guilty of contempt of court. By his act or omission such a
director aids and abets the company to be in breach of
the order of
Court against the company. If it were not so, a Court would have
difficulty in ensuring that an order
ad
factum
against a companies enforced by
a positive order.”
[3]
[4]
University
of Cape Town
v
Minister of Education and Culture (House of Assembly and House of
Representatives) and Others
1988 (3) SA 203 (C).
[5]
Fakie
NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA).
[6]
Municipal
Manager O.R Tambo District Municipality and Another v Ndabeni
2023 (4) SA 421 (CC).
[7]
Secretary
of
the Judicial Commission of Inquiry into Allegations of State
Capture, Corruption and Fraud in the Public Sector, including
Organs
of State v Zuma and Others
[2021]
ZACC 18.
[8]
Id
at
para 37.
[9]
See
Respondents’ Heads of Argument, CL 19-10, at para 41.
[10]
Id
at
para 39.
[11]
Footnote 3 above.
[12]
University
of Cape Town
at
213A.
[13]
Municipal
Manager O.R Tambo District Municipality and Another v Ndabeni
at para 23-24.
[14]
It
was held in
S
v S
1998 (4) SA 714
(W) at 726E that “… in general, all
orders of court, whether correct or incorrectly granted have to be
obeyed until
they are properly set aside. If it were otherwise
respondents will be able to defy the court orders with impunity,
contending
that they believed such orders to be wrong”.
[15]
Consolidated
Fish Distributors v Zive
1968
(2) SA 517.
[16]
Noel
Lancaster Sands EDMS BPK v Theron
and
Wickee
v Wicke
1929 WLD 145.
[17]
Minister
of Home Affairs v Scalabrini Centre, Cape Town
2013 (6) SA 421 (SCA),
[18]
Id
at
para 76.
[19]
Id
at
para 77.
[20]
T.M.B v
M.C.R and Others
[2024] ZAGPPHC 1062 (30 October 2024).
[21]
See
State
Capture
at para [61] where it was stated that “…
contempt
of court is not an issue
inter
partes
[between the parties]; it is an issue between the court and the
party who has not complied with a mandatory order of court”…
the overall damage caused to society by conduct that poses the
risk of rendering the Judiciary ineffective an eventually
powerless
is the very heart of why our law forbids such conduct.”
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