Case Law[2025] ZAGPJHC 987South Africa
Azize Equipment (Pty) Ltd v Machite Engineering CC (055795/22) [2025] ZAGPJHC 987 (7 October 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
7 October 2025
Headnotes
a defendant’s contention that it should not have to disclose documents to the plaintiff which
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Azize Equipment (Pty) Ltd v Machite Engineering CC (055795/22) [2025] ZAGPJHC 987 (7 October 2025)
Azize Equipment (Pty) Ltd v Machite Engineering CC (055795/22) [2025] ZAGPJHC 987 (7 October 2025)
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sino date 7 October 2025
REPUBLIC
OF SOUTH AFRICA
# IN
THE HIGH COURT OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
# (GAUTENG
LOCAL DIVISION, JOHANNESBURG)
(GAUTENG
LOCAL DIVISION, JOHANNESBURG)
Case
Number:
055795/22
(1)
REPORTABLE: No
(2)
OF INTEREST TO OTHER JUDGES: No
(3)
REVISED: No
07/10/2025
In
the matter between:
AZIZE
EQUIPMENT (Pty)
Ltd
Plaintiff/Respondent
and
MACHITE
ENGINEERING
CC
Defendant/Applicant
JUDGMENT
– APPLICATION FOR LEAVE TO APPEAL
MANOIM J:
Introduction
[1]
This is an application for leave to appeal an order I gave in respect
of a discovery application.
[2]
The party
seeking leave to appeal is Machite Engineering CC, the defendant in
this matter. The defendant had opposed the discovery
application. I
ordered the defendant to discover certain documents requested by
Azize Equipment (Pty) Ltd, the plaintiff.
[1]
The defendant now appeals against that order.
[3]
Although the plaintiff has brought three claims against the
defendant, only one of them- for payment of the balance of
the
purchase price - is relevant to the discovery dispute.
Nature
of the case
[4]
The plaintiff sold two drilling rigs to the defendant. The contract
was entered into in December 2019.The plaintiff alleges
the agreement
was partly written and partly oral. The nub of the dispute is over
the purchase price for the rigs. The plaintiff
alleges that it has
only been part paid and the defendant owes it the balance of the
purchase price for the equipment.
[5]
In its plea the defendant contends it has paid the full purchase
price. If the defendant is correct, then on its version
the price
agreed to was approximately 44% less than the price contended for by
the plaintiff.
[6]
Hence the plaintiff seeks discovery of documentation from the
defendant that it alleges will either show the price, or
if the not
the price, then the value of the drilling rigs, and hence may show
that the defendant’s version is implausible.
[7]
The documents sought and which I ordered to be discovered were:
·
The defendant’s fixed asset register for the period between 10
December 2019
to date:
·
All VAT returns submitted on behalf of the defendant to the South
African Revenue Services
for the period between 10 December 2019 to
28 February 2023;
·
All the defendant's insurance policies relating to the two drilling
rigs; and
·
The defendant’s financial statements for the years ending 2018
to 2023.
[8]
The defendant had opposed the discovery on the basis of relevance. I
found that the documents were relevant and hence
my order.
Grounds
of Appeal
[9]
The defendant now seeks leave to appeal. Briefly the grounds of
appeal relate to relevance and that the period for which
the
documents is sought is overbroad. In addition, in the application for
leave to appeal, the defendant argues that the documents
contain
confidential information which the defendant should not have to
discover to a rival.
Appealability
of the decision
[10]
Both parties agree that before I can consider the merits of the leave
to appeal, I have to decide whether the decision
is appealable. If
not, then the defendant does not get out of the starting blocks.
[11]
A decision
to order discovery is not a final order. In terms of the
Zweni
decision,
the locus classicus on this point, for a decision to be regarded as
final it must possess all three of the following attributes.
[2]
a.
The decision sought to be appealed must be final in effect which
meant it must not be susceptible to
alteration by the court appealed
from;
b.
It must be definitive of the rights of the parties; and
c.
It must have the effect of disposing of at least a substantial
portion of the relief claimed in the main
proceedings.
[12]
Arguably an order to discover does not have any of these three
attributes. But it is at least uncontroversial that it
does not meet
the third requirement, as it does not decide a substantial portion of
the relief claimed. This is because it is no
more than an order to
produce the named documents. In a recent decision most in point on
the matter, the Supreme Court of Appeal
had to decide whether a
regional court decision to compel discovery was appealable. The court
explained why it was not:
“
The
upshot of the above is that the regional court’s order to
compel the respondent to discover is purely interlocutory in
nature.
It has no final effect, is not a definitive proceeding, and does not
have the effect of disposing of at least a substantial
portion of the
relief claimed in the pending divorce action between the parties.
Neither does it affect the rights of the parties
whatsoever. The
parties are still entitled to prosecute their case and are still at
liberty to direct the court to any evidence
and to advance any
argument that they wish.
[3]
[13]
The
defendant then was faced with the problem of navigating around both
Zweni
and
HJ
v PJ.
Counsel
argued that recent Constitutional Court decisions have made it clear
that the
Zweni
test is not the final word on appealability.
[4]
Instead, in appropriate cases, courts should apply an ‘interests
of justice’ test. It is based on the latter test that
the
defendant suggests the decision is appealable. Granted courts have
grappled with the open ended nature of this test. But it
can at least
be accepted that where a case fails the
Zweni
test but passes an ‘interests of justice’ test, the facts
must be exceptional.
[5]
[14]
Here the defendant argues that the information
sought is commercially sensitive. It also contends that the plaintiff
is its competitor.
Thus, if the plaintiff were to have sight of this
information it would irreparably damage the defendant. In this sense
argued the
defendant, the disclosure is final in effect as the
sensitive information once revealed cannot be “unseen.”
[15]
There are two problems with this argument.
First it was never made out before me when the matter was heard and
so the factual premise
for this argument is not made out on the
papers. For instance, it is alleged the two firms are competitors.
This is not in the
papers. On the facts before me they appear to be
supplier and customer, not competitors.
[16]
But even if they are competitors this has not
been recognised as a basis to deny discovery. Every day in commercial
disputes firms
are required to discover information that is otherwise
private and may be viewed by a party they would rather did not have
sight
of it. Patent disputes, passing off, and unfair competition are
just some examples.
[17]
Then the
defendant sought to rely on a judgment of Margo J in
Continental
Ore Construction v Highveld Steel & Vanadium Corporation Ltd
as a basis for the commercial secrecy exception.
[6]
In that matter Margo J upheld a defendant’s contention that it
should not have to disclose documents to the plaintiff which
contained information which related to price because the plaintiff
was a competitor. But this does not support the defendant in
this
case. In the latter case Margo J noted that the main issue was
whether an agreement had been concluded and only then, if the
issue
was decided in favour of the plaintiff, would the defendant become
obliged to disclose the prices during the relevant
period. In
other words the decision was that the discovery request was
premature. It does not decide that such disclosure is not
generally
discoverable. In the present case the conclusion of the contract is
not in dispute, but the price of the goods is. Hence
it is presently
relevant.
[18]
Nor is there any rationale for an interests of justice argument to
protect commercially sensitive documents from discovery.
If anything
creating a carve out for commercially sensitive documents would be
contrary to the interest of justice. They would
prolong litigation,
incentivise opportunistic delays and lead to great uncertainty.
[19]
I find that no case is made out for finality in terms of
Zweni
and
that no exception in the interests of justice is made out not to
apply that case to the present facts. The result is that the
decision
is not appealable and leave to appeal must be denied.
ORDER
I
make the following order:
1. The application
for leave to appeal is dismissed.
2. The Applicant is
ordered to pay the costs of the application.
MANOIM J
JUDGE OF THE HIGH
COURT
JOHANNESBURG
APPEARANCES:
For
the Plaintiff:
B
van der Merwe
Instructed
by:
Malherbe
Rigg & Ranwell Inc.
For
the Defendan:
L
Molete
Instructed
by:
Maphoso
Mokoena Attorneys
Date
of hearing:
26
September 2025
Date
of Judgement:
07
October 2025
[1]
I will refer to the parties from now on as plaintiff and defendant
in the interests of clarity.
[2]
Zweni v
Minister of Law and Order
1993 (1) SA 523
(A) at 536 A to C.
[3]
H.J
v P.J
(285/2023)
[2024] ZASCA 55
(19 April 2024) paragraph 16.
[4]
See for instance
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
2012 (4) SA 618
(CC) at paragraph 53, where the Court held that the
Zweni
requirements were never without qualification.
[5]
See for instance
TWK
Agriculture Holdings (Pty) Ltd v Hoogveld Boerderybeleggings (Pty)
Ltd and Others
2023
(5) SA 163
(SCA) at paragraph 30.
[6]
Continental
Ore Construction v Highveld Steel & Vanadium Corporation Ltd
1971
(4)SA 589 W.
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