Case Law[2025] ZAGPJHC 615South Africa
Merchant Commercial Finance 1 (Pty) Ltd t/a Merchant Factors v Hlantini Management and Finance (Pty) Ltd and Others (2025/061204) [2025] ZAGPJHC 615 (18 June 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
18 June 2025
Headnotes
responsible for an oversight in the office of the applicant’s attorneys.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Merchant Commercial Finance 1 (Pty) Ltd t/a Merchant Factors v Hlantini Management and Finance (Pty) Ltd and Others (2025/061204) [2025] ZAGPJHC 615 (18 June 2025)
Merchant Commercial Finance 1 (Pty) Ltd t/a Merchant Factors v Hlantini Management and Finance (Pty) Ltd and Others (2025/061204) [2025] ZAGPJHC 615 (18 June 2025)
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sino date 18 June 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 2025-061204
Appeal
Case Number: A2023-063349
Consolidated
Case Number: 2816/2017
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED: YES/NO
In
the matter between:
MERCHANT
COMMERCIAL FINANCE 1 (PTY) LTD t/a MERCHANT
FACTORS
Plaintiff
and
HLANTINI
MANAGEMENT AND FINANCE (PTY) LTD
First
Defendant
BLUE
CLOUD INVESTMENTS 79 (PTY) LTD
Second Defendant
CROSS
ATLANTIC PROPERTIES 136 (PTY) LTD
Third Defendant
DALHOUSIE
FORESTS CC
Fourth Defendant
GRANT
HUGH RAMSAY
Fifth Defendant
HIGH
LANDS SECURITIES (PTY) LTD
Sixth Defendant
HLATINI
FARMING (PTY) LTD
Seventh Defendant
HLATINI
FINANCE CORPORATION (PTY) LTD
Eighth Defendant
HLATINI
INVESTMENT HOLDINGS LIMITED
Ninth Defendant
HLATINI
MANAGEMENT AND FINANCE (PTY) LTD
Tenth Defendant
LAGOON
HOMES (PTY) LTD
Eleventh Defendant
MOGWALA
TRADING 154 (PTY) LTD
Twelfth Defendant
NCY
TADE & INVEST (PTY) LTD
Thirteenth Defendant
STAND
827 MARLBORO PARK (PTY) LTD
Fourteenth Defendant
RST
TRADE & INVEST (PTY) LTD
Fifteenth Defendant
TRIBAL
PROPERTIES (PTY) LTD
Sixteenth Defendant
HORIZION
INVESTMENT TRADING (PTY) LTD
Seventeenth Defendant
AND
Case
Number: 2816/2017
In
the matter between:
TRIBAL
PROPERTIES (PTY) LTD
First Applicant
CROSS
ATLANTIC PROPERTIES (PTY) LTD
Second Applicant
LAGOON
HOMES (PTY) LTD
Third Applicant
STAND
827 MALBORO PARK (PTY) LTD
Fourth Applicant
HORIZION
INVESTMENT TRADING (PTY) LTD
Fifth Applicant
and
MERCHANT
COMMERCIAL FINANCE (PTY) LTD
First Respondent
GRANT
HUGH RAMSAY
Second Respondent
HLATINI
MANAGEMENT AND FINANCE (PTY) LTD
Third Respondent
BONATLA
PROPERTIES (PTY) LTD
Fourth Respondent
NIKITAS
GHIKAS VONTOS
Fifth Respondent
THE
REGISTAR OF DEEDS
Sixth Respondent
THE
CIPC
Seventh Respondent
AND
Case
No: 34887/2016
In
the matter between:
MERCHANT
COMMERCIAL FINANCE 1 (PTY) LTD t/a MERCHANT
FACTORS
Applicant
and
THE
BEVTEC PARTNERSHIP
Respondent
JUDGMENT
CRUTCHFIELD J
[1]
The applicants are the joint liquidators of
Horizon Investment Trading PTY (Ltd) (in liquidation), seek urgent
relief interdicting
the respondent, Merchant Commercial Finance 1
(PTY) Ltd t/a Merchant Factors, from alienating, hypothecating,
encumbering, executing
and otherwise dealing with various identified
immovable properties
(“the
properties”).
[2]
The applicant seeks interim relief pending
finalisation of an application in terms of rule 49(6) together with
the applicant’s
appeal.
[3]
The respondent opposes the application on
both urgency and the merits of the application.
[4]
In order to find success in the
application, the applicant must meet the peremptory requirements of
rule 6(12). I deal with the
alleged urgency of the application.
[5]
The applicant alleges that on 9 April
2025, the applicant received correspondence from the respondent’s
attorneys informing
the applicant’s attorneys that the appeal
had lapsed and that the respondent intended disposing of the
properties.
[6]
In terms of the procedures necessary to
procure a date for the hearing of an appeal, the applicant was
obliged to apply for such
a date on or before 6 September 2023.
The applicant failed to do so resulting in the alleged lapse of the
appeal and the necessity
for the applicant to launch an application
for reinstatement of the appeal in terms of rule 49(6).
[7]
Prior to 6 September 2023, the Supreme
Court of Appeal granted the applicant leave to appeal on 16 May 2023,
after which the applicant
delivered its notice of appeal and heads of
argument timeously.
[8]
Thereafter, for some 20 months, the
applicant did nothing to prosecute the appeal.
[9]
The applicant’s attorneys refer to an
“oversight” in its offices, alleging that a succession of
different staff
members dealing with the matter overlooked the
necessity to apply for a hearing date. Thus, as at 9 April 2025,
the applicant
had not yet applied for a date for the hearing of the
appeal. The applicant’s attorneys contend that the applicant
should
not be held responsible for an oversight in the office of the
applicant’s attorneys.
[10]
The
alleged oversight relates to an absence of steps taken by the
attorneys for a period of approximately 20 months including, by
way
of example, a failure to consider the file, contact the Appeals
Registrar’s office, enquire at the court and update the
client.
An absence of any steps taken over a period of approximately 20
months does not amount to a mere oversight or an error.
Similarly to
the matter of
Colyn
v Tiger Food industries Ltd t/a Meadow Feed Mills (Cape)
[1]
,
it is not a simple matter of an error or an oversight when nothing
happens on a matter for approximately 20 months. The explanation
by
the applicant’s attorneys for their failure is lacking
substantially.
[11]
On 14 April 2025, the applicant
launched an application for condonation and reinstatement of the
lapsed appeal. The respondent’s
attorneys refused a request to
for an undertaking that the respondent not dispose of the properties
in the interim, pending the
finalisation of the application in terms
of the rule 46(9) and the appeal.
[12]
Given the applicant’s attorney’s
failure to take steps to procure a date for the hearing of the appeal
for approximately
20 months, the respondent’s attorneys
refused the requested undertaking.
[13]
The applicant’s notice of motion is
dated 30 April 2025 and the applicant delivered the application
to the respondent’s
attorneys by email on Wednesday, 30 April
2025, at 18h13. The application was set down for hearing before me on
20 May
2025.
[14]
The
respondent referred to the requirements in respect of an explanation
in condonation proceedings as set out in
Van
Wyk v Unitas Hospital and Another.
[2]
The applicant’s explanation for its failure to apply for
a date for the hearing falls far short of the requirements
of a
request for condonation.
[15]
By way of example, there is no explanation
whatsoever as to why the applicant’s attorneys failed to
enquire from the Appeals
Registrar as to whether a date had been
allocated or why a date had not yet been allocated or when the matter
would be heard. The
applicant’s attorneys were content to sit
supine for approximately 20 months and do nothing in respect of
the appeal.
[16]
As regards he applicant’s attempt to
find fault with the respondent’s attorneys for not having
applied for a date, the
rules provide that the respondent “may”
apply for a date but there is no obligation on the respondent to do
so. The
respondent is not
dominus litis
and is free to sit back and wait for the appeal to lapse, in the
event that the applicant allows it to do so.
[17]
In respect of the averment that the
applicant should not be held responsible for the failure on the part
of the applicant’s
attorneys to take the appropriate steps to
prosecute the appeal, it is striking that in the approximately 20
month-period at issue
before me, there is no mention of even a single
enquiry from the applicant to their attorneys enquiring about the
appeal.
[18]
Whilst I accept that the applicant, prior
to September 2023, intended to prosecute the appeal and took the
necessary steps to do
so, subsequently, the applicant’s
attorneys took no steps in respect of prosecuting the appeal. The
applicant and the applicant’s
attorneys did nothing in respect
of the appeal for a significant duration.
[19]
Furthermore, the applicant does not
articulate why it will not achieve substantial redress in respect of
this application, at a
hearing in due course. Given recent changes to
the setting down of matters on the opposed motion roll, dates on that
roll are more
easily and expeditiously available than they were
previously. This factor must be considered together with the time
necessary for
the sale and transfer of immovable property to be
effected, a notoriously lengthy procedure. The applicant does not set
out why
this application cannot be dealt with and the applicant
receive substantial redress at a hearing on the opposed motion roll
in
the ordinary course.
[20]
Furthermore, the orders of Fischer J
in respect of which the applicant appeals relevant to this
application, are the dismissal
of the application for a postponement
and the order entitling the respondent to execute against the
properties. Fischer J
granted the latter order, permitting the
respondent to execute against the properties, by default of
appearance of the applicant,
counsel for the applicant having
withdrawn subsequent to the dismissal of the postponement
application.
[21]
Accordingly,
the respondent argued before me that the Supreme Court of Appeal’s
grant of leave to appeal could only relate
to Fischer J’s
refusal to grant the request for a postponement and not to the order
for execution against the properties,
granted by default of
appearance. An application for leave to appeal is not competent
against an order granted by way of default
as such an order is
capable of being revisited by the court
a
quo
and may sustain an application for rescission. Thus, the order for
execution against the properties granted by way of default is
not a
final order and cannot sustain an appeal.
[3]
[22]
In
Pitelli
,
the SCA found that orders that are susceptible to rescission are not
appealable.
[4]
[23]
Moreover, I find that the applicant failed
to meet the requirement in terms of rule 6(12)(b), being that it does
not demonstrate
that it cannot obtain substantial redress at a
hearing in the ordinary course. This requirement is peremptory and
absent the applicant
meeting this requirement, the matter does not
qualify to be enrolled and determined as a matter of urgency.
[24]
In the circumstances the application stands
to be struck from the roll for the absence of urgency.
[25]
There is no reason why the costs of the
application should not follow the order on the merits including the
costs of counsel on
scale C.
[26]
By virtue of the abovementioned, I grant
the following order:
1.
The application is struck from the roll for
a lack of urgency.
2.
The applicant is ordered to pay the costs
of the application including the costs of counsel on scale C.
CRUTCHFIELD J
JUDGE OF THE HIGH
COURT
JOHANNESBURG
For
the Applicant: Adv M Nowitz instructed by Hirschowitz Flionis
Attorneys.
For
the Respondent: Adv S McTurk instructed by Brink, De Beer &
Potgieter Attorneys.
Date
of the hearing: 22 May 2025.
Date
of the judgment: 18 June 2025.
[1]
Colyn v
Tiger Food industries Ltd t/a Meadow Feed Mills (Cape)
2003 (6) SA 1
(SCA) at [9].
[2]
Van Wyk
v Unitas Hospital and Another
[2007] ZACC 24
;
2008 (2) SA 472
(CC).
[3]
Franceso
Pitelli v Everton Gardens Project CC
[2010]
ZASCA 35
(29 March 2010) (“Pitelli”).
[4]
Pitelli
id
[36].
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