Case Law[2025] ZAGPJHC 240South Africa
Gamede v Sani Fleet Management (Pty) Ltd (2021/4135) [2025] ZAGPJHC 240 (27 June 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
9 March 2023
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## Gamede v Sani Fleet Management (Pty) Ltd (2021/4135) [2025] ZAGPJHC 240 (27 June 2025)
Gamede v Sani Fleet Management (Pty) Ltd (2021/4135) [2025] ZAGPJHC 240 (27 June 2025)
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sino date 27 June 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NUMBER:
2021/4135
1.REPORTABLE:
NO
2.OF
INTEREST TO OTHER JUDGES: NO
3.REVISED:
NO
In
the matter between:
MUZI O MUHLE
GAMEDE
APPLICANT
and
SANI
FLEET MANAGEMENT (PTY) LTD
RESPONDENT
JUDGMENT
Delivered:
This judgment was handed down electronically by circulation to
the parties’ legal representatives by e-mail and uploading it
onto the electronic platform. The date and time for hand-down is
deemed to be 10h00 on the 27th of JUNE 2025.
DIPPENAAR
J
:
[1]
The applicant, the second defendant in the
main action proceedings, seeks the rescission of a default judgment
granted by the registrar
of this court pursuant to r 31(5)(a) on 3
May 2022, pursuant to an application for default judgment dated 1
June 2021. In terms
of the order, default judgment was granted
against the applicant and an entity styled M Telecoms Africa (Pty)
Ltd t/a Motheo Telecoms
(the first defendant) in an amount of
R2 427 393.20, together with interest and costs.
[2]
The applicant and the first defendant had
entered an intention to defend but failed to deliver a plea after a
notice of bar was
served. Writs of execution had been executed
against the first and second defendants during May 2022 and September
2022 respectively.
Thereafter, sequestration proceedings were
launched against the applicant based on a
nulla
bona
return issued pursuant to the
aforesaid writ of attachment against him. The applicant opposed
the application and in his
answering affidavit, delivered on 9 March
2023, intimated that he may launch a rescission application. In the
sequestration application
the applicant stated that the default
judgment had been obtained against him based on an invalid suretyship
agreement and he was
not actually indebted to the applicant. The
rescission application was launched on 19 January 2024, shortly
before the sequestration
application was due to be heard on 24
January 2022. The sequestration application was postponed and remains
pending.
[3]
In its particulars of claim underpinning
the default judgment, the respondent relied on an acknowledgement of
debt in relation to
the first defendant and a deed of suretyship
signed by the applicant, in relation to the claim against him. It was
common cause
that the deed of suretyship reflected the principal
debtor as being ‘Sani Fleet Rental’. In paragraph 20 of
the particulars
of claim, it is averred:
‘
When
completing the Suretyship Agreement, which was attached to the
Plaintiff’s credit Application, the Second Defendant
incorrectly inserted the Plaintiff’s name as the principal
debtor and not that of the First Defendant ‘.
[4]
It was common cause that the deed of
suretyship did not state the amount of the indebtedness of the
surety. It provided for ‘
repayment
on demand of all sums of money which the Debtor may now or from time
to time hereafter owe to the creditor…arising
from any cause
of indebtedness whatsoever and whether now existent or which may come
into existence in the future’.
In
relevant part, the suretyship further provided: ‘
2
A statement of the indebtedness of the Debtor purporting to have been
certified correct by the auditors of the creditor shall
be prima
facie proof of my indebtedness hereunder’
.
[5]
It was further common cause that the
respondent did not plead, seek or obtain rectification of the deed of
suretyship to reflect
the second defendant as debtor on the deed of
the suretyship and that the reference to Sani Fleet Rental was an
error in the deed
of suretyship.
[6]
The rescission application was based on r
42(1)(a), alternatively the common law. At the hearing, counsel for
the applicant disavowed
reliance on the common law. The case made out
by the applicant in the founding affidavit was that the deed of
suretyship failed
to comply with s 6 of the General Law Amendment Act
50 of 1956 and was thus invalid. It was averred in the founding
affidavit that
the applicant did not stand surety on behalf of the
first defendant, Motheo Telecoms, in favour of the respondent, but on
behalf
of Sani Fleet Rental in favour of the respondent. It was
submitted that the suretyship was invalid as it failed to describe
the
nature and amount of the principal debt, was for an unlimited
number of causes and for an unlimited amount of liability. The
applicant
further contended that the respondent misrepresented that
the suretyship was valid in the default judgment application. In the
particulars of claim it was averred that ‘
[the
applicant] signed a suretyship agreement in terms of which [the
applicant] bound himself jointly and severally as surety and
co-principal debtor in favour of the respondent…’.
[7]
The respondent opposed the application on
various grounds. First, that there was no procedural irregularity as
envisaged by r 42(1)(a)
and the applicant had not alleged any error
in procedure. It submitted that the ostensible error complained of
strikes at the merits
of the matter and that r 42(1)(a) found no
application.
[8]
Second, that the applicant was not absent
as envisaged by r 42(1)(a) because the inference could be drawn that
he was in wilful
default. It was submitted that the applicant failed
to demonstrate that he was not in wilful default or that his
application is
bona fide.
It
was submitted that the applicant delivered a notice of intention to
defend but no plea, despite being placed under bar and provided
no
justification for his default.
[9]
Third, that there was an excessive and
unexplained delay of some 14 months on the part of the applicant in
launching the application
which was not launched within a reasonable
time, given that a period of 20 months had expired since the
respondent gained knowledge
of the judgment against him. The
respondent submitted that no condonation was sought and that the
explanation proffered made a
mockery of the court rules, which was
fatal to the relief sought. The respondent submitted that the
rescission was better suited
to r 31, but that it would be fatally
defective. It was further pointed out that the applicant demonstrated
a lack of diligence
in pursuing the application, and that his actions
highlighted his willfulness and lack of seriousness in pursuing the
application.
A punitive costs order was sought on these grounds.
[10]
The respondent contended in its answering
affidavit that when completing the suretyship agreement, the
applicant erroneously incorrectly
inserted the respondent’s
name as the principal debtor and not that of the first defendant,
which was a patent error.
[11]
The parties defined the issues to be
determined as follows: (i) whether the error complained of is a
procedural error as contemplated
by r 42(1)(a), which would preclude
the respondent from being entitled to the default judgment order
granted on 3 May 2022; (ii)
whether the order was granted in the
applicant’s absence; (iii) whether the rescission application
was launched within a
reasonable time and, if not, whether
condonation should be granted to the applicant; (iv) whether the
applicant demonstrated that
he was not in wilful default resulting in
the default judgment order; and (v) whether the applicant set out a
bona fide
defence to the merits.
[12]
Rule 42(1)(a) provides: ‘
The
court may, in addition to any other powers it may have, mero motu or
upon the application of any party affected, rescind or
vary: (a) An
order or judgment erroneously sought or erroneously granted in the
absence of any party affected thereby…
’
[13]
It
is well established that the rule caters for a mistake in the
proceedings. An applicant for rescission is not required to show,
over and above the error, that there is good cause for the rescission
as contemplated in s 31(2)(b). The error may arise either
in the
process of seeking the judgment on the part of the applicant for
default judgment or in the process of granting default
judgment on
the part of the court.
[1]
[14]
As
stated in
Colyn
:
[2]
‘
The
rule caters for mistake. Rescission or variation does not follow
automatically upon proof of a mistake. The rule gives the courts
a
discretion or order it, which must be exercised judicially’.
Because
it is a rule of court its ambit is entirely procedural.
[3]
[15]
The mistake in the current proceedings
relied upon by the applicant is that rectification of the suretyship
was not sought prior
to judgment being granted. That appears from the
record of the proceedings and is common cause between the parties.
[16]
It
is so that rule 42(1)(a) does not cover all orders wrongly granted,
as held in
De
Beer
[4]
and submitted by the respondent. It covers orders which were
erroneously sought or erroneously granted.
De
Beer
must be considered in the context of appealability. It concerned a
rescission application of a summary judgment order granted in
the
absence of the applicant’s legal representatives, in
circumstances where an opposing affidavit had been delivered and
considered before summary judgment was granted. In dismissing the
rescission application, the Full Court held that the summary
judgment
was appealable and did not fall within the ambit of r42(1)(a).
The present facts are different. What must be determined
is whether
there was a procedural error in the seeking or the granting of the
order.
[17]
Reliance
was placed on
Lodhi
2 Property Investments CC and Another v Bondev Developments (Pty) Ltd
[5]
by the respondent in contending that the phrase ‘erroneously
granted’ relates to the procedure followed to obtain the
judgment in the absence of the other party and not the existence of a
defence. A judgment to which a plaintiff was procedurally
entitled in
the absence of the defendant cannot be said to have been granted
erroneously in the light of a subsequently disclosed
defence. That is
the legal position.
[18]
The respondent contended that the
applicant’s challenge to the validity of the deed of suretyship
was a subsequently disclosed
defence which cannot mean that the
judgment was erroneously granted under r 42(1)(a).
[19]
In the present instance, the deficiencies
in the suretyship and its invalidity were apparent from the
particulars of claim. The
default judgment was not granted by a
court, but by the registrar. According to the applicant, the
respondent deliberately misrepresented
the facts by pleading that the
applicant signed a suretyship agreement in terms of which he bound
himself jointly and severally
as surety and co-principal debtor in
favour of the respondent for the repayment on demand of all sums of
money which Matheo Telecoms
may at the time of signing of the
suretyship or from time to time thereafter owe to the respondent.
Ex
facie
the suretyship, the applicant
bound himself with Sani Fleet Rental as debtor and no case for
rectification of the suretyship agreement
was made out. The
particulars of claim thus misstated the position reflected in the
deed of suretyship itself. It is not necessary
to consider whether
that was done deliberately or not.
[20]
I
agree with the applicant that rectification was necessary before a
court could entertain evidence running counter to the written
words unless all parties affected by the alleged error agreed extra
judicially to remedy the situation.
[6]
There was no evidence placed before the court that the parties agreed
to rectify or amend the suretyship in any way. There was
thus a
procedural mistake in the proceedings in that the registrar granted
an order based on a suretyship agreement that did not
support the
relief sought against the applicant in the particulars of claim. The
agreement was not rectified before the order was
granted. The order
was granted without any a legal foundation.
[7]
[21]
Applying the principles in
Lodhi
2,
if it is shown that at the time the
judgment was granted there was a fact of which the judge (here the
registrar) was unaware,
which would have precluded the granting of
the judgment and which would have induced the judge, if aware of it,
not to grant the
judgment. This has been established. I do not agree
with the respondent that the invalidity of the suretyship is purely a
defence
on the merits which does not avail the applicant as it is a
subsequently disclosed defence.
Ex facie
the terms of the suretyship, it is
invalid and does not sustain the judgment granted. The particulars of
claim and the suretyship
upon which reliance was placed are thus in
conflict and the judgment was granted without a legal basis.
[22]
The applicant submitted that a judgment can
be deemed to be erroneously sought and granted if the facts were
deliberately misrepresented
to the court or if it was not legally
competent for the court to grant the order. There is merit in that
submission. As the respondent
had not pleaded rectification of the
suretyship to reflect the correct principal debtor, and had not
sought or obtained rectification
of the suretyship, the defects in
the suretyship remain.
[23]
I
agree with the applicant that in its current form, the deed of
suretyship does not comply with the mandatory requirements of s
6 of the General Law Amendment Act 50 of 1956 and is invalid.
[8]
Under those circumstances, the respondent should not have obtained
the default judgment in its favour. This issue lies at the heart
of
the matter. Had this fact been brought to the attention of the
registrar who had granted the default judgment, it would not
have
been granted.
[9]
It was not as a
result of a subsequently disclosed defence, as contended by the
respondent, that the judgment is procedurally wrong.
It was, simply
put, legally incompetent for judgment to have been granted.
[24]
The respondent’s legal
representatives must reasonably have been aware of the consequences
of the incorrect debtor being referred
to in the suretyship. The
averment in paragraph 20 of the particulars of claim did not properly
address the issue and does not
avail the respondent.
[25]
The
respondent further relied on
Freedom
Stationery (Pty) Ltd v Hassim and Others
[10]
in contending that a party, such as the applicant, who is aware of
the proceedings and the relief sought, who did not oppose or
participate in the proceedings would not be entitled to relief under
r 42(1)(a). I am not persuaded that
Freedom
Stationery
avails the respondent. It was held:
’…
the
question is whether the party that obtained the order was
procedurally entitled thereto. If so, the order could not be said
to
have been erroneously granted in the absence of the affected party.
An applicant ot plaintiff would be procedurally entitled
to an order
when all affected parties were adequately notified of the relief that
may be granted in their absence. The relief need
not necessarily be
expressly stated. In my view, it suffices that the relief granted can
be anticipated in the light of the nature
of the proceedings, the
relevant disputed issues and the facts of the matter.
In this regard it would be useful to enquire whether the relief could
have been granted without amendment of the process in question.
If
so, the failure of an affected litigant to take steps to protect his
interests by joining the fray, ought to count against him
…’
[emphasis
added]
[26]
It is at this hurdle that the respondent’s
argument loses force. Relief could and should not have been granted
without amendment
of the process in question, given the absence of a
rectification claim and the deficiencies pertaining to the suretyship
already
referred to.
[27]
Lastly,
reliance was placed on
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture, Corruption and Fraud in the Public Sector
Including
Organs of State
[11]
. . The respondent argued
that to fall within the purview of r 42(1)(a), the applicant could
not rely on being absent from the proceedings
as his absence was
wilful and he had failed to show that he was for some reason
precluded from participating, physically or otherwise.
It was
submitted that he would not be entitled to a rescission in the event
that an error was committed.
[28]
The respondent argued that the applicant
was aware of the proceedings and elected not to participate therein.
It was submitted that
the inescapable conclusion is that he was aware
of the proceedings, and of his own accord, elected not to participate
therein,
thus rendering the matter on all fours with
Zuma.
[29]
As
held by the Constitutional Court in
Zuma
:
‘…
.if
everything turned on actual presence it would be entirely too easy
for litigants to render void every judgment and order ever
to be
granted by mere absentia’
[12]
….’ Our jurisprudence is clear: where a litigant, given
notice of the case against them and given sufficient opportunities
to
participate, elects to be absent, the absence does not fall within
the scope of the requirements of Rule 42(1)(a). And, it certainly
cannot have the effect of turning the order granted in absentia into
one erroneously granted
[13]
’.
[30]
The factual matrix in
Zuma
is however entirely distinguishable
from the present facts as Mr Zuma had knowledge of the proceedings. I
am not persuaded that
it avails the respondent. In the present
instance, the applicant and the first defendant were barred from
delivering a plea. The
record reflects no notification to the first
defendant and the applicant that default judgment was being sought
against them from
the registrar nor was the application served on the
applicant. An inference that the applicant deliberately and willfully
elected
to be absent, can only be drawn if such inference is
reasonable in the circumstances, based on primary facts. I am not
persuaded
that this threshold has been met by the respondent. The
necessary facts to do so do not appear from the respondent’s
affidavit.
It is a stretch to conclude on the present facts that the
applicant was willfully absent, not having knowledge that default
judgment
was being sought against him or had been granted by the
registrar.
[31]
Given the present facts, I conclude that
the applicant was absent as envisaged in r 42(1)(a). For the reasons
provided, I am persuaded
that the provisions of r 42(1)(a) do apply.
I am further persuaded that the default judgment was erroneously
sought and erroneously
granted in the circumstances as envisaged by
r42(1)(a).
[32]
Rule 42(1)(a) does not provide for a
specific period within which a rescission application must be
launched. The general principle
is that it must be done within a
reasonable time, which is dependent on the facts of the case. The
applicant sought to explain
his delay in launching the application in
his founding affidavit in support of the contention that the
application was launched
within a reasonable time.
[33]
The applicant’s explanation for the
extensive delay in launching the rescission application is dealt with
in terse terms in
his founding affidavit. The high water mark of his
explanation is that as the respondent did nothing to pursue the
judgment for
a period of some 4.5 months, and thereafter proceeded to
attach a third party’s assets, he did not believe it would be
necessary
to bring a rescission application as the ‘respondent
clearly did not seem serious to pursue the alleged judgment debt’.
He informed the respondent of his intention to launch rescission
proceedings so in March 2023 but did not want to incur unnecessary
costs in launching the application as the respondent would itself
realise it would not succeed with the sequestration application
brought against him in January 2023.
[34]
The
respondent placed great emphasis on the lack of a proper explanation
for the long delay in launching the present application.
There is
merit in its contention that the applicant’s explanation is
inadequate. As held in
Van
Wyk v Unitas Hospital and Another (Democratic Advice Centre as Amicus
curiae)
[14]
the inordinate delay in launching the application induced a
reasonable belief that the order had become unassailable. To grant
condonation after an inordinate delay and in the absence of a
reasonable explanation would undermine the principle of finality
and
could not be in the interests of justice. However,
Van
Wyk
is distinguishable on the facts. There, leave to appeal was sought
against a judgment of the Supreme Court at a belated stage.
Here, I
have concluded that the default judgment should not have been
granted. The finality of litigation must in these circumstances
yield.
[35]
Despite the weakness of the explanation
tendered by the applicant, the applicant has established that the
judgment was erroneously
sought and granted, given the invalidity of
the deed of suretyship and the fact that the suretyship did not
support the relief
sought against the applicant. In those
circumstances, I am not persuaded that the delay of itself is fatal
to the application for
rescission, although it stretches the
boundaries of what can be considered reasonable in the circumstances.
[36]
I conclude that the rescission application
must succeed. Having come to this conclusion, it is not necessary to
deal with the other
issues raised in the papers.
[37]
In accordance with the general principle
that costs follow the result, each of the parties sought costs
against the other on scale
B. In the alternative, the respondent
argued that even if rescission were to be granted, the applicant
should be held liable for
the costs, considering his dilatory conduct
in relation to the matter. In response, the applicant submitted that
persistence with
opposition to the application was vexatious and
frivolous and that the respondent should thus be held liable for
costs, if the
application was successful.
[38]
I am not persuaded that the respondent’s
opposition to the application was frivolous or vexatious. The conduct
of the applicant
in relation to the rescission application leaves
much to be desired and the submission that he was utilising delaying
tactics has
merit. Considering all the facts and the respondent’s
conduct, it would be just to direct the applicant to pay the costs of
the application, despite his ultimate success and to deprive him of
his costs.
[39]
In the result, the following order is
granted:
[1] The order granted
against the applicant as second defendant in the action proceedings
under case number 2021-4135 on 3 May 2022,
is rescinded and set
aside;
[2] The writ of execution
issued pursuant to the order referred to in 1 above is set aside;
[3] The applicant is
directed to pay the costs of the rescission application on scale B.
EF
DIPPENAAR
JUDGE
OF THE HIGH COURT JOHANNESBURG
HEARING
DATE
OF HEARING
:
22 APRIL 2025
DATE
OF JUDGMENT
:
27 JUNE 2025
APPEARANCES
APPLICANT’S
COUNSEL
:
Adv S. Nel
APPLICANT’S
ATTORNEYS
:
Mashitisho Attorneys Inc.
RESPONDENT’S
COUNSEL
:
Adv. T. Lipshitz
RESPONDENT’S
ATTORNEYS
:
Raess Chotia Attorneys
[1]
Kgomo v
Standard Bank of South Africa
2016 (2) SA 184
(GP), with reference to
Lodhi
2 Properties Investments CC and Another v Bondev Developments (Pty)
Ltd
2007 (6) SA 87
(SCA)
(Lodhi)
and
Colyn
v Tiger Food Industries Ltd t/a Meadow Feed Mills (Cape)
2003
(6) SA 1
SCA (Colyn).
[2]
Para 5.
[3]
Ibid para 6.
[4]
The full court decision in
De
Beer v Absa Bank Ltd
[2016] ZAGPPHC 325, para 15, with reference to
Seale
v Van Rooyen and others; Provincial Government, North West Province
v Van Rooyen NO and Others
2008
(4) SA 43
(SCA) para 18.
[5]
Lodhi
supra;
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State
2021
(5) SA 327 (CC).
[6]
Schroeder
v Vakansiburo (Edms) Bpk
1970
(3) SA 240
(T) at 242H.
[7]
Marais
v Standard Credit Corporation Ltd
2002 (4) SA 892 (W).
[8]
Nedbank
Ltd v Wizard Holdings (Pty) Ltd
2010
(5) SA 523
(GSJ) at 528D-F;
Sapirstein
and Others v Anglo African Shipping Co (SA) Ltd
1978
(4) SA 1 (A).
[9]
Lodhi 2
para 17
[10]
Freedom
Stationery (Pty) Ltd v Hassim and Others
2019
(4) SA 459
(SCA) para 25.
[11]
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations
of State Capture, Corruption and Fraud in the Public Sector
Including Organs of State
2021
(5) SA 327
(CC) para 60.
[12]
Ibid para 60.
[13]
Ibid para 61.
[14]
Van
Wyk v Unitas Hospital and Another (Democratic Advice Centre as
Amicus curiae)
[2007] ZACC 24
;
2008
(2) SA 472
(CC) para 31.
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