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# South Africa: South Gauteng High Court, Johannesburg
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## Standard Bank of South Africa Limited v Maloka (19942-2021)
[2024] ZAGPJHC 360 (12 April 2024)
Standard Bank of South Africa Limited v Maloka (19942-2021)
[2024] ZAGPJHC 360 (12 April 2024)
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sino date 12 April 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO: 19942/2021
1.REPORTABLE:
Yes☐/ No ☒
2.OF
INTEREST TO OTHER JUDGES: Yes☐ / No ☒
3.REVISED:
Yes ☐ / No ☒
12
April 2024
In
the matter between:
THE
STANDARD BANK OF SOUTH AFRICA LTD
APPLICANT
And
RAKOKWANE
MALOKA
RESPONDENT
In
re:
RAKOKWANE
MALOKA
APPLICANT
And
LIBERTY
HOLDINGS
1ST
RESPONDENT
THE
STANDARD BANK OF SOUTH AFRICA
2ND
RESPONDENT
JUDGMENT
Du
Plessis AJ
# Introduction
Introduction
[1]
This matter was enrolled on the unopposed motion roll as an
application for security for costs. The draft order handed
up by the
Applicant, Standard Bank, was made an order of the court. The
Respondent, Mr Maloka, requested reasons for the order.
This judgment
thus sets out the reasons for granting the order. CaseLines records
the history of the matter in detail. For purposes
of this
application, it is necessary to give an overview of the litigation to
provide context to the application for security for
costs.
[2]
Mr Maloka was dismissed from Liberty’s employ for gross
misconduct pursuant to a disciplinary hearing held in December
2019.
Standard Bank sets out the following in its Founding Affidavit to the
application for security of costs. On 30 October 2019,
Liberty became
aware that an amount of R2 856 815,14 which Alexander
Forbes intended to pay Liberty in respect of a policy,
had been paid
into Mr Maloka’s personal bank account held at Standard Bank.
This is because Mr Maloka entered his personal
bank account details
on the ‘Recognition of Transfer’ form sent to Alexander
Forbes instead of entering Liberty’s
bank account details. Mr
Maloka does not dispute that the funds were paid into his account.
After the funds were paid into his
account, he transferred
R1 343 551,18 of the funds to various of his other personal
accounts and made purchases. When
Liberty became aware of this on 30
October 2019, they requested Standard Bank to block the account
because the funds were fraudulently
paid into Mr Maloka’s
account. On 22 November 2019, Standard Bank transferred the balance
to its suspense account out of
caution, and on 7 January 2020, it
paid the money to Liberty. Standard Bank avers that it did all this
in terms of the banking
agreement concluded between them and Mr
Maloka. In any event, in an affidavit attested to by Mr Maloka on 30
October 2019, he expressed
his shock that the monies landed in his
account and that he intends to re-imburse Standard Bank the money.
[3]
Since then, Mr Maloka has instituted various claims against various
defendants, none of which were successful. Liberty
made an
application for security for costs, and on 24 June 2022,
Maier-Frawley J ordered that Mr Maloka furnish security for costs
of
Liberty Holdings.
[4]
On 19 June 2023, Mr Maloka brought an application to join Standard
Bank to the main application, giving it five days to
deliver a notice
of intention to oppose. In his “supporting affidavit to motion
about citing and lodging civil lawsuit against
Standard Bank”,
dated 19 June 2023, claimed, amongst other things, that Standard Bank
froze his bank account without the
authority to do so and that they
must pay back the funds transferred.
[5]
Other applications and/or claims mentioned in this affidavit include
that:
i.He
approached the Equality Court on 16 October 2020 where he filed a
complaint;
ii.He
has the intention of instituting a civil lawsuit against
Maier-Frawley J for the order for security of costs that she granted;
iii.He
has the intention of instituting a civil lawsuit against Molahlehi J;
iv.He
made an application to cite the Minister of Justice and Correctional
Services for vicarious liability for contravening s20(a)
The
Prevention and Combating of Corrupt Activities Act,
[1]
amongst other things;
v.He
lodged a notice to join the instructing attorney of Liberty Holdings
and to launch a civil lawsuit for dereliction of professional
duty in
aiding and abetting unlawful activities in contravention of s20(a) of
PRECCA.
[6]
While none of these applications are before me, they are listed here
as they provide context for the request for security
for costs that
was before me in the unopposed motion court.
[7]
Standard Bank filed a notice of intention to oppose on 26 June 2023.
[8]
On 3 July 2023, (before Standard Bank was joined) Mr Maloka launched
an “interim declaratory remedy with simultaneous
equitable
remedy” for freezing his bank accounts, requesting the return
of the funds.
[9]
On 17 July 2023, Standard Bank filed a notice of intention to oppose
this application and requested an extension to file
their Answering
Affidavit, which Mr Maloka agreed to, and then withdrew on 21 July
2023, stating that he does not have the required
authority to grant
the extension.
# The notice and
application for security for costs
The notice and
application for security for costs
[10]
On the same
day, 21 July 2023, Standard Bank filed a notice to compel security
for costs of R500 000 and that the proceedings
be stayed until
such security is furnished. The reasons set out in their notice
include that Mr Maloka is unemployed and has been
for several years;
that his bank account does not reflect a substantial balance capable
of paying the costs to be incurred by Standard
Bank; that Liberty
Holdings has obtained costs orders against Mr Maloka in the Equality
court which have not been paid; that Mr
Maloka instituted various
proceedings against numerous other parties in the High Court and
other courts, and has indicated his
intention of instituting more
proceedings. More importantly, they claim that Mr Maloka’s
claims brought and unilaterally
amended, are frivolous, vexatious and
unsustainable because he is not entitled to the relief, as there is
no factual basis for
granting the relief; that Standard Bank has not
acted in contravention of the legislation referred to, and that the
legislation
does not apply to Standard Bank or the facts; the
declaratory orders are not necessary to determine any rights or
obligations that
Mr Maloka might have; that the issues raised are
abstract and academic and that Mr Maloka is not entitled to general,
special or
punitive damages.
[2]
Mr Maloka did not provide security for costs within ten days as per
the notice.
[11]
On 24 July 2023, Mr Maloka delivered a “Notice of objection to
notice of demand for security of legal costs served
by Standard Bank”
in which he wrote the following:
“
I
demand that Standard Bank must withdraw its notice of Rule 47 that I
must provide security of legal costs and that I must do so
within 10
days of receipt of this notice and failing to do so I shall file a
notice to strike out in terms of Rule 30A the cause
of complaint on
the following grounds: […]”
[3]
[12]
It is then followed by various subparagraphs, such as
“
[7.1]
That I sought substitution order under oath to be granted an
exemption from furnishing security of legal costs in the proceeding
which I lodged in the High Court as provided in terms of s21(2)(g) of
the Equality Act that has not opposed by the primary respondent
to
which I shall seek substitution order in terms of the rubric of
further and alternative relief in respect of the discriminatory
and
harassment injury that I sustained directly or indirectly by action,
omission or concealments in the review proceedings which
are underway
in the High Court.”
[13]
It seems
that Mr Maloka suggests that he took an oath that he did not want to
pay legal fees for the cases he brought in the High
Court, and that
he did so under s 21(2)(g) of the Promotion of Equality and
Prevention of Unfair Discrimination Act.
[4]
This section states that the Equality Court may make an appropriate
order after holding an inquiry, including “an order to
make
specific opportunities and privileges unfairly denied in the
circumstances, available to the complainant in question”.
As
the main respondent did not object, he will ask for a substituted
order under “further and alternative relief”,
as he
regards the request as discriminatory and as harassment.
[14]
Reference
is also made to an application “in terms Rule 40(2) to be
absolved from furnishing security of costs”, and
that this has
likewise not been opposed. He states that he has likewise “sought
[a] judicial order of the Deputy Judge President
under oath to
absolve me from furnishing security of legal costs” in terms of
the rules of the court, common law and statute.
[5]
[15]
He has
further sought an order to rescind the Rule 47 order made by Justice
Maier-Frawley, where she has given an order for the
Registrar to
decide the amount of security.
[6]
[16]
Lastly, he states that if Standard Bank wants security of legal
costs, it must file its answering affidavit before the
next day. The
reason for this, he states:
“
as
the reality is that additional application of Rule 47 that the court
had already considered is in contrary to the doctrine of
issue of
estoppel and resultantly it would be deemed vexatious application by
the court as it goes against the principle of finality”.
[17]
This answering affidavit is required in response to the
“
interdict
application in which I sought return of liquidated funds arising from
liquidated document in the form of release of the
withheld funds and
return of dispossessed funds with relevant interest pending the
outcome of civil proceedings against the SBSA
and criminal complaint
that has been reported by Liberty as the reality is that I will lose
right to claim security of legal costs
as such claim will be vested
with the applicant as provided in terms of Rule 32(3) which provides
that [quoting Rule 32(2)]”
[7]
.
[18]
He further references an application against Standard Bank for
breaching the financial sector laws.
[19]
He ends the notice by stating that should he not receive an answering
affidavit to his application, he will enrol the
matter for
adjudication.
[20]
On the same day, Mr Maloka delivered a “Declaration to sustain
interim remedy against Standard Bank”, asking
for the release
of funds.
[21]
On 28 July 2023, Mr Maloka filed a notice to remind Standard Bank to
file their Answering Affidavit, to which he granted
an extension.
[22]
On 10 August 2023, Mr Maloka filed a “declaration to sustain
and quantify legal remedy that I seek to be awarded
against Standard
Bank in several and joint liability”, setting out how he
calculated the “legal remedy” that
he asks for against
various parties, including Standard Bank.
[23]
On 17 August 2023, Mr Maloka filed a “Notice of withdrawal by
default to Standard Bank’s Rule 47(1) notice
of demand for
security”, deeming the Rule 47(1) notice to be withdrawn.
[24]
On 23 August 2023, Mr Maloka filed a “Final notice of bar
against Standard Bank in respect of merits of interim
interdict with
incidental application for summary judgment”.
[25]
On 25 August 2023, Mr Maloka filed a “Final notice of bar
against Standard Bank pertaining to statutory interim
remedy in terms
of s21(2)(a) of Equality Act with concurrent application for summary
judgment by substitution order in the review
application proceeding”.
[26]
On 01 September 2024, Mr Maloka applied for default judgment against
Standard Bank “in respect of interim remedy”,
requesting
that the funds that were taken from his account be repaid. On 11
September 2023, he filed a “Notice of intention
to bring
application for default judgment in respect of the civil lawsuit
against Standard Bank”.
[27]
On 26 September 2023 Mr Maloka filed a “Notice of intention to
enrol joinder application against Standard Bank
on unopposed basis”.
[28]
He also filed a “Notice of motion in terms of Rule 30A to
strike out Standard Bank’s rule 47(1) notice”.
To this,
he attached a founding affidavit citing his reliance on Rule 47(3)
(read with Rule 23(1)). Mr Maloka interprets Standard
Bank’s
failure to file an application in terms of Rule 47(3) as providing
him with the remedy of striking out. This is even
more so, he avers,
since Standard Bank has not filed an answering affidavit to the main
application, nor has Standard Bank opposed
his Rule 40 application or
the application that he made to the Deputy Judge President in terms
of the common law to be exempted
from furnishing legal costs. He also
states that Standard Bank has not opposed the recission application
against the judgment of
Maier-Frawley J in the R47(3) order in favour
of Liberty. In short, the argument is that “if Standard Bank
had intention
to demand security of costs against the applicant in
terms of Rule 47(1), it would have filed notice of opposition with
answering
affidavit as opposed to filing a parallel notice of demand
for security for costs in the same material issue that had already
been
decided by the court and which is now subject of recission and
variation application and it renders the relevant Rule 47(1) notice
misguided as its execution will offend doctrine of issue estoppel”.
[29]
On 20 October 2023 Mr Maloka filed a “Further declaration to
sustain and quantify legal remedy that I seek to be
awarded against
Standard Bank in several and joint liability”.
[30]
On 31 October 2023, Standard Bank served an application for security
for costs, to compel him to furnish security of
costs in terms of
Rule 47, which is the case before me. The founding affidavit avers
that Mr Maloka is a vexatious litigant with
a history of instituting
various legal proceedings against multiple parties stemming from the
same factual matrix in different
courts. He has been unsuccessful in
all of the litigation against Liberty.
[31]
After not being successful with Liberty, he started litigating
against other parties, including Standard Bank. Standard
Bank avers
these claims are without merit and also fatally defective in
procedural respects. Standard Bank avers that Mr Maloka
does not have
regard to the rules of court and litigates in a frantic manner. It is
often difficult to understand and make sense
of the interlocutory
applications and the rules and procedures he invents. All this while
he represents himself and does not incur
legal costs for his
services. On the other hand, Standard Bank is incurring substantial
legal costs in opposing the proceedings
brought against them.
[32]
The concern of Standard Bank is that Mr Maloka does not have the
means to satisfy a court order which might be granted
against him, as
he is unemployed and does not have much in his bank account. On top
of that, Liberty has obtained costs orders
against him in proceedings
before the Equality Court and the High Court.
[33]
They repeat, as per their notice, that there is no factual basis for
granting the relief, that Standard Bank has not
acted in
contravention of any of the legislation mentioned, that the
legislation is not applicable, that the declaratory orders
are not
necessary to determine the rights and obligations of Mr Maloka, that
the issues are abstract and academic and that Mr Maloka
is not
entitled to general, special or punitive damages as he seeks.
[34]
As this is a request for security for costs and not an adjudication
of the substantive matters, I will not traverse the
issues in detail
other than to say that Standard Bank questions the legal basis for
all the notices and avers that since there
is a dispute of fact,
motion proceedings are not suitable. Ultimately, they also dispute
that Mr Maloka must hold the funds pending
the outcome of the
proceedings he launched, as Standard Bank would be able to satisfy a
money judgment should Mr Maloka succeed.
In any case, the funds were
transferred to Liberty after Mr Maloka admitted that the money had
been paid over erroneously to his
account.
[35]
On the same day, Mr Maloka again filed a “notice of objection
in terms of Rule 30A to Standard Bank’s Rule
47(3) application
for security of costs”. Since what was before me was an
application for security for costs, I will provide
reasons for
granting Standard Bank’s application and deal with the
objections raised by Mr Maloka only.
[36]
Again, in this notice, he states in the notice that he objects
because Standard Bank did not ask for condonation of the
late filing
of their answering affidavit in the main application; that he filed
an objection for Standard Bank to withdraw the
Rule 47(1) notice or
file its Rule 47(3) application and it failed to do so within ten
days, which requires them to ask for condonation
first. He further
argued that a request for security for costs infringes his rights of
access to court as set out in s 34 of the
Constitution, as well as
his right to equality (presumably for being unable to litigate).
Furthermore, since he is also litigating
in the public interest, the
Biowatch
principle applies, and Standard Bank does not have a
right to demand security for costs. He also repeats that Standard
Bank did
not oppose or intervene in the other application against
other litigants.
[37]
The application was enrolled before Senyatsi J on 15 November 2023.
Senyatsi J gave an order removing the application
from the roll,
giving Mr Maloka 15 days to file an answering affidavit and Standard
Bank 10 days to file a replying affidavit.
Heads of argument,
practice notes, chronology and a list of authorities were to be
delivered per the practice manual. Notably,
the order stated that the
main application, the application for interim relief, and any other
proceedings brought by Mr Maloka
against Standard Bank be stayed
pending the outcome of the application to compel security for costs.
[38]
Disregarding this order, Mr Maloka, on the same date, filed a “notice
of partial withdrawal for relief against
the Standard Bank of South
Africa Ltd”, where he withdrew the spoliation relief and the
various claims for the restoration
of the funds.
[39]
In the meantime, Wepener J, the case management judge, made an order
on 20 November 2023 that joined Standard Bank as
second respondent
and directed all proceedings against Standard Bank to be stayed
pending the finalisation of the security for
costs application
brought by Standard Bank. Mr Maloka did not comply with this order.
At the date of the hearing, he also did not
furnish security for
costs.
[40]
Instead of complying with the court orders, Mr Maloka brought another
application to strike out Standard Bank’s
application to compel
security for costs dated 23 November 2023. A notice of intention to
oppose was filed on 7 December 2023,
which prompted Mr Maloka to
again file a “notice of reminder to Standard Bank in terms of
Rule 30A”, stating that Standard
Bank must file an answering
affidavit in the main application. Mr Maloka, on 18 December 2023,
filed a “notice of set down
for hearing in the unopposed
interlocutory motions court”, mainly asking that the Rule 47
notices be struck, but also asking
for a spoliation order and an
order in terms of Rule 30, followed by all the notices served on
Standard Bank so far.
[41]
Standard Bank served a notice of set down for 29 January 2024 on Mr
Maloka, who replied with a “notice of objection
to Standard
Bank’s notice of set down” on 12 January 2024 as he
already secured a date in the unopposed court (in contravention
of
the court orders) where he sought an “interim equitable remedy”
to absolve him from furnishing security for costs,
to strike out the
Rule 47(1) notice and declare the Rule 47(3) application moot, as
well as several other orders relating to the
main application.
[42]
Working through the labyrinth of what seems to be more than 6000
pages, the crux of the matter before me was an application
for
security for costs from Standard Bank, that Standard Bank set down on
the unopposed motion roll because Mr Maloka failed to
adhere to
Senyati J’s order to file an answering affidavit, which
rendered the matter unopposed.
[43]
Mr Maloka was not competent to put his application to absolve him
from paying security for costs on the unopposed roll,
not only
because it was done improperly, but primarily because of Senyasti J
and Wepener J’s orders that stayed all proceedings
against
Standard Bank until the security of costs application was finalised.
I thus only considered the issue of security for costs.
# Section 34 of the
Constitution
Section 34 of the
Constitution
[44]
S 34 of the Constitution is affected by any decision regarding the
security for costs. It provides that everyone has
the right to have a
dispute that can be resolved by the application of law, decided by a
court. It is an important right and not
one that the court interferes
with lightly.
[45]
For courts
to function, however, they must have rules to regulate the
proceedings. These include that parties take specific steps
or risk
being prevented from proceeding with a claim or a defence. For
instance, a notice of bar calls on a defendant to file a
plea within
a specific time or lose the right to raise a defence. Likewise, time
limits are placed on litigants for the filing
of affidavits or
pleadings and by failing to comply with such time limits, they may be
prevented from pursuing a claim or defence.
All these rules must be
understood and interpreted in light of s 34 of the Constitution. As
set out above, a limitation on the
right of access to courts must be
justifiable.
[8]
One way of
justifying such a right is to have stringent legal requirements for
when such a right may be limited, as is the case
with the law on
security for costs and Rule 47. In other words, a court can only
restrict the right to litigate if it is based
on sound legal
principles.
# The law on security of
costs
The law on security of
costs
[46]
Rule 47
does not set out the grounds upon which a party may demand security
for costs and instead deals with the procedural aspects
thereof. The
common law and specific statutory provisions deal with the grounds
upon which a party may demand security for costs.
[9]
In this case, only the common law is applicable.
[47]
While
historically security for costs could only be granted against a
perigrinus
,
caselaw clarifies that this is no longer the case. The power to grant
security for costs is based on the residual discretion of
courts
arising from their inherent jurisdiction to regulate their
proceedings. One way of doing so is to require a party to pay
security for costs. While the court has that discretion, it must be
exercised sparingly, only in exceptional circumstances
[10]
and with due regard to section 34 of the Constitution.
[48]
Boost
Sports Africa (Pty) Ltd v South African Breweries (Pty) Ltd
[11]
clarified
that the mere inability of a resident (
incola
)
to satisfy a potential costs order is not sufficient (in terms of the
common law), to justify a security for costs order. What
is also
required is that the court must be satisfied that the contemplated
main application is vexatious or reckless and amounts
to an abuse of
its process. Since it does not lead to the end of the litigation but
merely places a limit on it, the requirements
are not as stringent as
those applicable for declaring someone a vexatious litigant.
[49]
But when is
an application vexatious in the context of security for costs? The
court in
African
Farms and Townships Ltd v Cape Town Municipality
[12]
stated it is when the application is obviously unsustainable. This
does not require the court to go into the merits of the pending
matter in detail, but merely that on a preponderance of probability,
it must appear unsustainable.
[13]
[50]
Thus, in
considering the prospects of Mr Maloka’s case, I do not need to
conduct an in-depth analysis and make a final determination
on the
merits. This would frustrate the purpose of the request for security
for costs.
[14]
[51]
Numerous
examples in the main application of Mr Maloka indicate that the
application is unsustainable on a preponderance of probabilities.
For
one, the claim for defamation and damages was brought by motion,
which in itself is problematic.
[15]
Even more so, it is clear from the papers that there is a dispute of
fact, which makes the motion proceedings all the more unsuitable.
Moreover, in South African law as things stand presently, there is no
such thing as punitive damages.
[16]
[52]
Mr Maloka also does not follow the rules of court, follows them
haphazardly and incomprehensibly, and does not adhere
to the
requirements of the law of evidence. For instance, Mr Maloka sets out
his version in what purports to be a founding affidavit
but attaches
no supporting documents to substantiate his claim. While it is
possible for the court to exercise its discretion when
it comes to
procedural irregularities based on the facts before it, the court
cannot simply ignore evidentiary rules or the substantive
law because
it might have sympathy for a self-represented litigant’s lack
of knowledge of legal processes or the alienated
feeling, they might
presumably harbour because of the courtroom setup. In other words,
the court considered that Mr Maloka is self-represented
and it has a
measure of sympathy for the fact that this can be overwhelming and
intimidating and that Mr Maloka might not always
have knowledge of
processes. Still, given that he made a similar argument in other
fora, which was dismissed and explained to him
in various judgments,
Mr Maloka also persists down the same road in this case.
[53]
Even more
so, Mr Maloka persists in filing notice upon notice (disregarding two
court orders – which might well be construed
as being
contemptuous), which forces Standard Bank to respond. Each response
incurs legal costs, which it may not be able to recoup
once an order
is made in its favour.
[17]
The
sheer volume of sometimes difficult-to-comprehend notices filed
indicates carelessness and disregard for the legal processes
and the
rights of the opposing litigants, which indicates a degree of
vexatiousness.
[54]
Abuse of
process has been described in our law as “the process employed
for some purpose other than the attainment of the
claim in the
action”.
[18]
It is often
employed where the litigant has a clear ulterior motive in
litigating.
[19]
The courts are
entitled to protect themselves and others against abuse of their
processes.
[20]
However, what
“abuse of process” is, is not precisely defined. So, how
must a court be guided in determining whether
there was “an
abuse of process”?
[55]
The starting point is that the legal system is properly employed when
it is employed to defend rights or uphold just
claims, and it is
misused when it diverts away from its intended function and is used
for extortion, oppression, or applying pressure
on another party to
accomplish an improper end. Still, using a particular judicial
procedure for a different purpose than the one
for which it was
designed is not a conclusive sign of
mala fides
. Something
more is required, such as that an improper outcome was intended. Such
a purpose or motivation — however malicious
— in turn, on
its own, does not indicate that something is unlawful or invalid. It
is just another factor to consider in
assessing whether the facts
demonstrate an abuse of its process.
[56]
For
instance, it is an abuse of process if a litigant has no valid claim
but uses litigation to injure the other party financially
or in some
other way. When considering whether a litigant's actions amounts to
an abuse of process, courts must be mindful that
everyone can access
courts of law, and only in exceptional circumstances can a court
restrict such a right to secure a right of
access to litigants with
bona fide disputes.
[21]
[57]
While it is not clear what motivates the filing of various notices on
various parties, based on the same factual matrix,
a degree of
mala
fides
can be inferred from the fact that despite Maier-Frawley J
explaining to Mr Maloka in her judgement, including the leave to
appeal
judgment, why his claim is not sustainable, he instituted
various other applications against a new respondent on virtually the
same grounds. That, despite two court orders that prohibit him from
initiating any more proceedings pending the outcome of this
application. He wilfully disregarded the orders and instituted
the same applications as before,
and
set them down on the
unopposed motion roll for adjudication. Thus, I am satisfied that in
terms of the legal principles, Standard
Bank’s application
should succeed. The next question then is whether Standard Bank
followed the correct procedures.
[58]
As
mentioned above, Rule 47 deals with the procedural aspects of
security for costs. Firstly, it requires a party to file a notice
“as
soon as practicable”. There is no specific time period for such
an application to be made other than it must be
“after the
commencement of the proceedings” – in other words, with
proceedings pending before the final judgment.
[22]
The filing of this notice is not “a further step in the
proceedings” falling under Rule 30(1) – it is a
peripheral
matter falling outside of that rule.
[23]
This was explained to Mr Maloka in the judgment of Maier-Frawley J,
in which she explained in detail the workings of Rule 30 and
its
interaction with Rule 47. She explained that “[i]t is trite
that a notice to furnish security does not constitute an
irregular or
improper step or proceeding for purposes of rule 30(1)”.
[24]
I agree.
[59]
Rule 47(3) states:
If
the party from whom security is demanded contests his liability to
give security or if he fails or refuses to furnish security
in the
amount demanded or the amount fixed by the registrar within ten days
of the demand or the registrar’s decision, the
other party may
apply to court on notice for an order that such security be given and
that the proceedings be stayed until such
order is complied with.
[60]
In other
words, if Mr Maloka contests his liability to give security or fails
or refuses to do so within ten days of the demand,
Standard Bank may
apply to the court on notice for an order that such security be given
and that the proceedings be stayed until
such order is complied with.
In other words, the rule does not prescribe ten days within which
Standard Bank must demand security
or approach the court. Standard
Bank is entitled to deliver a notice and set out the grounds and the
amount demanded as soon as
practicable after the commencement of
proceedings. Then, at least ten days must pass before Standard Bank
can, under Rule 47(3),
approach the court to ask for an order to
furnish security and to stay proceedings until security is paid. This
was also explained
to Mr Maloka in
Liberty
Holdings v Maloka
.
[25]
[61]
Standard Bank followed the procedure as set out in Rule 47. After the
Senyatsi J order, Mr Maloka did not file an answering
affidavit to
the application. Instead, he filed his own notices in a haphazard,
often in an incomprehensible manner. I gave a generous
interpretation
to these notices and considered them as contesting his liability to
pay security for costs. Furthermore, when Mr
Maloka entered
appearance on the day, I gave him an opportunity to address the court
as to why the order should not be granted.
Instead, he persisted with
his own applications, including requesting a spoliation order.
[62]
After
listening to both parties, I was not convinced that that the order
should not be granted. Since the amount was not placed
in dispute, I
also need not have referred the matter to the registrar.
[26]
Considering that the proceeding of this matter rests on the
finalisation of this application, I exercised my my discretion to
give finality to this issue.
[63]
Lastly, Mr
Maloka’s reliance on the Biowatch principle as set out in
Biowatch
Trust v Registrar Genetic Resources
[27]
is misplaced. Biowatch established the broad premise that in
litigation between the State and private parties attempting to assert
a basic right, the private party should not pay the costs if such
party is unsuccessful. It is not applicable in litigation against
non-state parties. But, in any event, it is a principle which
ordinarily comes into play when a court considers a costs order not
in circumstances currently under consideration, although these are
conceivably factors which could and should play a roll.
[64]
Thus, on the facts of this matter as set out in this judgment, I was
persuaded that Standard Bank established its entitlement
to security
for costs on the basis that the main application is unsustainable and
that the proceedings are vexatious and an abuse
of process, applying
the less stringent test for such a finding applicable for purposes of
security for costs.
[65]
These then the reasons for the order I made on 29 January 2024.
# Order
Order
[66]
I, therefore, made the following order:
1.
Mr Rakokwane Maloka (“Maloka”) shall furnish Standard
Bank with security for costs in the amount of R500 000
(Five
Hundred Thousand Rand), in respect of all the applications brough by
Maloka against Standard Bank under the aforesaid case
number;
2.
The security to be furnished shall be by way of guarantee provided by
a reputable South African banking institution;
3.
All of the proceedings brought by Maloka against Standard Bank under
the aforesaid case number are forthwith stayed until
such time as
Maloka furnishes the security as directed herein;
4.
Maloka is hereby ordered to pay the costs of this application.
WJ
Du Plessis
Acting
Judge of the High Court
Delivered:
This judgement is handed down electronically by uploading it to the
electronic file of this matter on CaseLines
and sent to the
parties/their legal representatives by email.
Counsel
for the applicant:
Thabo Thobela
Instructed
by:
Jason Michael Smith Inc
Counsel
the for respondent:
Rokowane Eislen Maloka
Date
of the hearing and granting the order: 29
January 2024
Date
of giving reasons:
12 April 2024
[1]
12 of 2004.
[2]
CaseLines 001A-16.
[3]
Paragraph 7 of the “notice of demand”.
[4]
4
of 2000.
[5]
Paragraph 7.3.
[6]
Paragraph 7.4.
[7]
Paragraph 8.
[8]
Giddey
NO v JC Barnard and Partners
[2006] ZACC 13
par 16.
[9]
Boost
Sports Africa (Pty) Limited v South Africa Breweries (Pty) Limited
[2015] ZASCA 93
;
2015 (5) SA 38
(SCA) para 5.
[10]
Ecker
v Dean
1938 AD 102
at 111.
[11]
2015
(5) SA 38 (SCA).
[12]
1963
(2) SA 555
(A) at 565 D-E.
[13]
Liberty
Holdings v Maloka
[2022] ZAGPJHC 423 para 18;
Zietsman
v Electronic Media Network
Ltd
2008 (4) SA 1
(SCA) para 21.
[14]
Zietsman
v Electronic Media Network Ltd and Others
[2008] ZASCA 4.
[15]
Liberty
Holdings v Maloka
[2022] ZAGPJHC 423 para 20, citing
Malema
v Rawula
[2021] ZASCA 88
paras 27 and 29.
[16]
Dikoko
v Mokhatla
2006 6 SA 235 (CC) 263.
[17]
Johannesburg
City Council v Television & Electrical Distributors (Pty) Ltd
1997 (1) SA 157
(A) at 177 D – E.
[18]
Phillips
v Botha
[1998] ZASCA 105
;
1999 (2) SA 555
(SCA) at 565-E-F.
[19]
See for instance
Mineral
Sands Resources (Pty) Ltd v Reddell
[2022] ZACC 37
;
2023 (2) SA 68
(CC) and the authorities discussed
there.
[20]
Western
Assurance Co v Caldwell’s Trustee
1918 AD 262
at 271;
Corderoy
v Union Government (Minister of Finance)
1918
AD 512
at 517;
Hudson
v Hudson
1927
AD 259
at 268;
Beinash
v Wixley
[1997] ZASCA 32
;
1997 (3) SA 721
(A) at 734D;
Brummer
v Gorfil Brothers Investments (Pty)
Ltd
1999 (3) SA 389
(SCA) at 412C-D.
[21]
Price
Waterhouse Coopers Inc v National Potato Co-operative Ltd
[2004] ZASCA 64
para 50.
[22]
H
R Holfeld (Africa) Ltd v Karl Walter & Co GmbH
(2)
1987 (4) SA 861 (W).
[23]
Market
Dynamics (Pty) Ltd t/a Brian Ferris v Grögor
1984 (1) SA 152 (W).
[24]
In para 14.
[25]
[2022] ZAGPJHC 423 in para 32.
[26]
Ramsamy
NO v Maarman NO
2002 (6) SA 159
(C) 169 170 and
Paradigm
Capital Holdings Ltd v Pap Computer Services CC
2000 (4) SA 1070
(W) at 1075H.
[27]
2009
(6) SA 232
(CC).
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