Case Law[2024] ZAGPJHC 1126South Africa
Mbita Consulting Services CC and Others v Passenger Rail Agency of South Africa (Pty) Limited and Others (2023/114027) [2024] ZAGPJHC 1126 (22 October 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
22 October 2024
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Mbita Consulting Services CC and Others v Passenger Rail Agency of South Africa (Pty) Limited and Others (2023/114027) [2024] ZAGPJHC 1126 (22 October 2024)
Mbita Consulting Services CC and Others v Passenger Rail Agency of South Africa (Pty) Limited and Others (2023/114027) [2024] ZAGPJHC 1126 (22 October 2024)
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sino date 22 October 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case Numbers:
2023-114027
(1)
REPORTABLE: YES/NO
(2)
OF INTEREST TO OTHER JUDGES:
YES/NO
(3)
REVISED: YES/NO
MBITA
CONSULTING SERVICES CC
(In
business rescue)
First Applicant
SUMAIYA
KHAMMISSA N.O.
Second
Applicant
PONANI
RUSSEL MBIZA
Third Applicant
and
THE
PASSENGER RAIL AGENCY
OF
SOUTH AFRICA (PTY) LIMITED
First Respondent
NOMPUMELELO
PHASHA
Second Respondent
THATO TSAUTSE
Third Respondent
JUDGMENT
SENYATSI
J
Introduction
[1]
This
is an opposed application to make an unsigned settlement agreement an
order of this court. The application is brought on the
basis that Mr.
Mphelo, the acting chief executive officer of Passenger Rail Agency
(“Prasa”) during April 2022, agreed
to settle the various
actions between the applicant and Prasa on the basis that an amount
of R16 906 520.00 was to be payable to
the applicant. In a nutshell,
the applicant seeks a money judgment that it contends is premised on
the unsigned settlement agreement.
Prasa denies that the agreement
was concluded as alleged by the applicant and that there is no merit
in law and that the application
should be dismissed with costs.
Background
[2]
The
applicant, which is in business rescue, was a cleaning service
provider to Prasa’s stations and its MB1 stations agreement
with Prasa was terminated on 14 Novembe 2015. Prasa argued that it
was entitled to terminate the main agreement on the basis that
the
main agreement and the additional stations agreement, referred to as
MB2 additional stations agreement, was separate agreements.
The MB1
stations agreement was extended to 31 January 2016. The applicant
disputed the termination on the basis that the MB1 stations
agreement
could not be terminated separately as it was part of the main
agreement.
[3]
Various
litigations ensued culminating in the judgment of this court per
Spilg J on 23 July 2019, in favour of the First Applicant
in the
amount of R971 098.00 (relating to the MB1 stations for the month of
July 2017). Prasa has sought to appeal this judgment.
A judgment was
granted by Spilg J on 23 July 2029, in favour of the First Applicant
in the amount of R15 935 422. Prasa obtained
a rescission of this
judgment, and the dispute was referred to arbitration before Adv
Baloyi SC.
[4]
The
arbitration was determined in favour of Prasa, on the basis that the
first applicant had no contractual claim for damages against
Prasa.
In essence, the arbitrator found that Prasa’s termination of
the MB2 contract at 31 October 2015 was lawful, and the
First
Applicant had no contractual claim for its services following
termination up to and including 31 July 2017. The First Applicant
filed an application in terms of
Section 32(2)
of the
Arbitration Act
42 of 1965
calling for the remittal to the arbitrator for
reconsideration of the award. There is no record on what has
transpired about the
reconsideration application. It can, however, be
inferred that the application has not been finalized. There’s
no any other
steps on record on what other options the applicants
have considered and pursued including a possible enrichment claim
because
it is common course that the services were in fact rendered
in terms of the MB2 stations without a contract. Furthermore, it
appears
that the bulk of the claim in the R16 million referred to in
the unsigned settlement agreement may be in relation to the possible
enrichment claim.
Issue
[5]
The
controversy in this case is whether the disputed settlement agreement
can be made an order of court. Put differently, whether
in fact there
is a
lis
between
the parties from which settlement has been reached which this court
is required to make an order as sought.
Submissions for Applicants
[6]
Mr.
Hoffman, for the applicant, submitted that the relief sought should
be granted. He referred me to an unsigned copy of the settlement
agreement which he contended that it had been negotiated and agreed
to by the parties. He contended on behalf of the applicant
that there
was no doubt that the settlement had been agreed to and that Mr.
Mphelo and Ms Tsautse, the latter, being the chief
legal officer of
Prasa, had indeed agreed that the dispute between the parties be
resolved as envisaged in the unsigned settlement
agreement. He stated
that the only issue was whether the two Prasa officials had the
necessary authority to conclude the agreement.
[7]
It
was furthermore submitted that during 2021 and 2022, the parties
engaged in discussions regarding a settlement of the matter.
Mr
Hoffman, in his heads of argument, stated furthermore that on 11 July
2021, a memorandum was sent by Sifiso Simelane (the then
acting group
executive: legal and compliance of Prasa) to Zolani Matthews the then
group CEO of Prasa). The memorandum recommended
that the MB1 claim of
R971 098.43 be settled by PRASA Cres by paying the First Respondent.
I must state at this time that I was
interested in knowing how this
internal and obviously confidential information communications came
to be in possession of the applicants
and Mr. Hoffman could not
assist as he had no idea.
[8]
The
memorandum also recommended that the MB2 claim of R15 935 422.00
not be settled “
as
it has prescribed as per the Attorneys advises(sic). This matter can
only be relooked at the time when Mbita can prove that it
has not
prescribed”.
Mr Hoffman furthermore stated that between September 2021 and April
2022, Prasa engaged in internal discussions to quantify the
extent of
the First Applicant’s claims. On 22 April 2022, a memorandum
was sent by Tsautse to Mphelo for the settlement to
be finalized.
[9]
The
memorandum summarised the history of the dispute between the parties.
In contradistinction to the first memorandum, this memorandum
recommended that Prasa settle the first applicant’s claim by
paying it the sum of R16 906 520.00, consisting of: -
(a)
R971 098.43 relating to the MB1
stations; and
(b)
R15 935 421 relating to the MB2
stations.
[10]
On
26 April 2022, Tsautse, on a Prasa letterhead, addressed a letter to
addressed to the Second Applicant (the First Applicant’s
business rescue practitioner) which letter was forwarded via e-mail
by the Second Respondent.
(a)
The
letter confirmed that PRASA Cres had “extensively investigated”
the First Applicant’s claim, and “
recommended
for approval that MBITA be settled in the amount of R16 906 520.00
”.
(b)
The
letter also confirmed that the settlement “
has
been approved by the Group Executive Officer (acting) and will be
submitted to finance for payment as soon as we reduce the
terms of
the settlement in writing”.
Mr
Hoffman contended that there is no denial that Tsautse sent this
letter on a Prasa letterhead, or that Mphelo approved the settlement.
[11]
Following
the issuing of the letter, so contended Mr. Hoffman, the parties
exchanged drafts of a written settlement agreement. By
13 May 2022,
the parties had agreed to the content of the settlement agreement,
albeit had not signed the document. On 18 May 2022,
the first
applicant signed the settlement agreement. In October 2022, the third
applicant addressed an e-mail to Hishaam Emeran,
the then acting CEO
of Prasa to enquire when payment would be made and the latter said he
would revert soon. Based on the sequence
of events, the applicants
pray that there is a proper basis the unsigned settlement agreement
to be made an order of this court.
For
the First Respondent
[12]
Ms.
Narhmuravate, on behalf of Prasa contended that the application is
res
judicata
and
stated that that the same parties and the same subject matter were
before arbitration. It furthermore averred that the arbitrator
Advocate Sesi Baloyi SC ruled as follows in Prasa’s favour:
(a)
MB2 stations were not part of
the main contract (MB1 stations);
(b)
the award of MB2 stations was
not irregular, unlawful, invalid or void;
(c)
the termination of the contract
in respect of MB2 stations, separately from the MB1 stations, is
valid;
(d)
the claim for uniforms and
equipment in the amount of R458 498.88 plus interest was
dismissed;
(e)
the claim for damages was
dismissed and
(f)
the first applicant was ordered
to pay the costs, including the costs of two counsel. Prasa
furthermore argued that the findings
of the arbitrator remain final
and are consistent with a pre-arbitration agreement.
The
legal principles
[13]
The
practice of making settlement agreements is well-established and has
existed for a long time in South Africa. In
Van
Schalkwyk v Van Schalkwyk
,
[1]
the Court said “
[t]he
tradition of such orders is very strong in our legal system
”.
The
authority of the court to make a settlement agreement an order of
court is
premised
on the adversarial model on which dispute resolution is based in our
law, namely, that the court's mandate or jurisdiction
is determined
by the
lis
[lawsuit]
between the parties.
[14]
If
parties
may however choose to agree to ask the court to give judgment on the
issues raised by the action in accordance with the
terms of their
settlement agreement. One of the advantages of this arrangement is
that the court retains jurisdiction over the
matter in the sense that
it has the inherent power or authority to ensure compliance with its
own orders.
[2]
This enables
the parties, in the event of a failure by any one of them to honour
the terms of the order, to return directly
to the court that made the
order, and to seek the enforcement thereof without the necessity of
commencing a new action.
[15]
In
Schierhout
v Minister of Justice,
[3]
the
Appeal Court (Kotze JA) had no difficulty in confirming the existence
of this practice as part of our law and said that:
-
“
.
.
.
if there exists no objection in the nature or terms of such
compromise or other agreement between the parties, embodied in a
consent paper, the practice of the courts is to confirm it, and make
the agreement arrived at a rule or order of court
”
[4]
[16]
An
overview of the reported decisions on the subject shows that there
are two basic requirements that are to be met when the court
considers a request to grant a judgment in accordance with the terms
of a settlement agreement. The first is that the court must
be
satisfied that the parties to the agreement have freely and
voluntarily concluded the agreement and that they are
ad
idem
with
regard to the terms thereof.
[5]
To the first requirement must accordingly be added that the court
must satisfy itself that the parties are in agreement that the
terms
of their settlement be made part of the order of the court. The
second requirement is that the order sought must be
a competent and
proper one to make in the circumstances. That is, it must relate
directly or indirectly, to an issue or
lis
between
the parties that is properly before the court, and in respect
whereof, but for the settlement agreement, it would
possess the
necessary jurisdiction to entertain.
[6]
[17]
In
Hodd
v Hodd; D’Aubrey v D’Aubrey (Hodd v Hodd
)
[7]
:
“
. . .
if
two merchants were to make an ordinary commercial agreement in
writing, and then were to join an application to Court to have
that
agreement made an order, merely on the ground that they preferred the
agreement to be in the form of a judgment or order because
in that
form it provided more expeditious or effective remedies against
possible breaches, it seems clear that the Court would
not grant the
application
”
[8]
.
In the second place, the agreement
must not be objectionable, that is, its terms must be capable, both
from a legal and a practical
point of view, of being included in a
court order. This means: - (a) that the terms must not be illegal,
contrary to public policy
or good morals or in violation of a
protected right in the Constitution
[9]
,
and (b), that it should hold some practical and legitimate
advantage.
[10]
[18]
In
Eke
v Parsons,
[11]
Madlanga
J said the following on the purpose of the settlement order in the
Constitutional Court:
“
[24] Whilst
ordinarily the purpose served by a settlement order is that, in the
event of non-compliance, the party in whose
favour it operates should
be in a position to enforce it through execution or contempt
proceedings, the efficacy of settlement
orders cannot be limited to
that. A court may choose to be innovative in ensuring adherence to
the order. Depending on the nature
of the order, it may – for
example – first issue a mandamus for compliance.
Failing compliance, it may then
consider committal for contempt. Both
the mandamus and order for committal may be sought by
merely supplementing the
papers already before court. On
the Thutha approach, the terms of the settlement agreement
not incorporated by the
court in the settlement order can only be
enforced by means of a full-blown fresh suit. The disadvantages of
this need no elaboration
.”
[19]
In
National
Youth Development Agency v Dual Point Consulting (Pty)
Ltd
and Another,
[12]
Van
der Linde J said the following on whether a settlement agreement
without prior litigation can be made an order of court: -
“
[7] As
indicated, I intimated when the matter was called that I was not
convinced that this court has the power to make a settlement
agreement an order of court where there was no prior litigation. In
Eke v Parsons
[13]
the Constitutional Court said that it was important for courts to
make settlement agreements orders of court, but that was not
in the
context of settlement agreements that had not been preceded by
litigation.”
[20]
Agreements
made extra-judicially are normally regulated by specific legislation.
For instance,
there
is legislation specifically designed to the availing of the
enforcement mechanisms of this court, to extra-judicial
processes.
[14]
That occurs
under and in terms of section
31 of the
Arbitration
Act.
[15]
That
Act sets out in some considerable detail the prerequisites that would
have to be followed before an award made under it would
be made an
order of court. For instance, there is required to be an arbitrator
who has to conduct him/herself in accordance with
a minimum standard.
The point made here is that the legislature has expressly
acknowledged the value of extra-judicial dispute resolution; and has
respected to a significant degree party autonomy in the parties’
running of that process. And it has, under those prescribed
conditions, aided by the machinery of the Law in other respects, for
instance the subpoenaing of witnesses, lent also the enforcement
arm
of the Law to the process. If the legislature were prepared to lend
the enforcement arm of the Law no matter what the underlying
process;
no matter how the settlement came about; no matter whether there was
a fair underlying process; one would have expected
explicit
litigation to that effect. There is no such.
[16]
Considerations
and reasons
[21]
I
now turn the papers and deal with the submissions before bearing in
mind whether it is competent for this court to make a disputed
and
unsigned settlement agreement an order of this court. It is common
course that
there
has been several applications involving the same parties and the same
subject matter. These applications were all opposed
resulting the in
the arbitral award which by agreement has brought the matter to halt.
This is so because the parties agreed in
the pre-arbitration
agreement that the decision of the arbitrator would be final.
[22]
At
the hearing of the application, Mr. Hoffman submitted that the
disputed settlement was concluded following the ongoing litigation
between the parties. He was asked specifically which case number the
settlement related to and to in fact identify it from the
founding
affidavit. He conceded that the founding affidavit did not identify
the case pending before this court which would render
it appropriate
for the settlement agreement to be made an order of this court. Based
on the volume of authorities quoted in this
judgment, the absence of
a
lis
between the parties cannot be overcome by the applicants in the
instant case.
[23]
Mr.
Hoffman also made a proposition that the order is competent because
when Mr. Mphelo and Ms. Tsautse decided to conclude the
settlement,
they had the authority to do so. He relied on section 20 (7) and (8)
which state as follows
:
-
(7) A person dealing with a company
in good faith, other than a director, prescribed officer or
shareholder of the company, is entitled
to presume that the company,
in making any decision in the exercise of its powers, has complied
with all of the formal and procedural
requirements in terms of this
Act, its Memorandum of Incorporation and any rules of the company
unless, in the circumstances, the
person knew or reasonably ought to
have known of any failure by the company to comply with any such
requirement.
(8) Subsection (7) must be
construed concurrently with, and not in substitution for, any
relevant common law principle relating
to the presumed validity of
the actions of a company in the exercise of its powers.”
Reliance
on this section is misplaced because the relief sought is beyond the
objective of the legislature in these circumstances.
It does not
cover instances where the agreement is disputed under the
circumstances as these.
[24]
If
regard is had to the fact that there was previous attempt by the
applicants to enforce earlier, another purported settlement
agreement
in court and that the proceedings were unsuccessful, I have no doubt
that this is yet another attempt. I am emboldened
by the fact that
ordinarily, it would have been appropriate to institute a new
application to deal with the fact that an agreement
had been
concluded and for the applicants to enforce the rights derived from
the agreement. In this case seeking an order where
there no pending
litigation is simply not competent. If this were allowed, our courts
would be overwhelmed with the floods of cases
where, if the parties
to commercial agreements so agree, they would simply seek the court’s
intervention without the need
to litigate in the normal ways. This is
why there is an
Arbitration Act which
as already indicated, covers
the extra-judicial agreements where a process envisaged by that Act
has been embarked upon.
[25]
More
importantly, in the instant case, the settlement agreement has not
been signed by Prasa and the disputed lack of authority
of Mr. Mphelo
and Ms. Tsautse, is of no moment is as far as this court is
concerned. Even if the agreement was not disputed and
if it was
signed by Prasa, it would still be incompetent for it to be made an
order of court without the preceding
lis
.
Even if I were to start making an enquiry into the exchange of emails
and letters between the first applicant and Ms. Tsautse,
the position
would still remain that no agreement had been reached in the sense
that until the settlement agreement was signed,
there cannot been any
agreement under the circumstances that would entitle the applicants
to seek judgment by the mere existence
of the alleged settlement
agreement.
[26]
This
is true given the previous unsuccessful attempts through the various
applications before the court to somewhat vindicate the
first
applicant’s rights. It has done so by even as in this case,
obtaining the evidence from Prasa based on documents that
in my view,
were supposed to be confidential. I say so because making use of the
internal memoranda by the applicants in this case,
shows that Mr.
Mbita of the first applicant, had “moles” within Prasa
that were sharing internal confidential information
with him for the
benefit of the first applicant. I will not venture more than I have
said in this
dictum.
[27]
I
have also had regard to the unreported case of
Growthpoint
Properties Ltd v Makhonya Technologies (Pty) Ltd and Others,
[17]
where
the court considered an application similar to the one before me.
However, what makes that application distinguishable was
that the
settlement agreement sought to be made an order of court was not
disputed. The parties in the matter had a dispute relating
to the
arrear rental. They concluded an Acknowledgment of Debt agreement and
agreed that the respondent would make monthly payments
towards the
liquidation of arrear rental. They agreed furthermore that in the
event of default, the agreement would be made an
order of court
through an application. The court held that its inherent jurisdiction
could not be ousted by lack of the pending
lis
and made an order. I do not agree with this judgment for the
stare
dicidis
has to be
Elke
v
Parsons
already quoted above as it is the decision of our highest court in
the land.
[28]
The
applicant’s contention that the letter sent to its attorneys by
Ms. Tsautse and the email from its attorney that the draft
is
acceptable with mir alteration is an indication of an agreement is of
no moment. In my view, it is an indication that the discussions
were
ongoing. However, there is no doubt that the agreement was disputed
because the communications indicate how determined were
Ms Tsautse
and Mr Mphelo to pay the first applicants. I say this because of the
sharing of confidential information including the
legal advice
provided to Prasa which the Mr. Mbita of the first applicant knew
about. It is not difficult to surmise how else Mr.
Mbita would have
been privy to such information given the protracted genesis of the
various litigations.
[29]
Even
if I were to accept that there was an agreement in place, which is
not so in the instant case, the fact there were communications
about
what had been recommended by Ms. Tsautse to the acting chief
executive officer, Mr. Mphelo is of no consequence. This is
because
ordinarily, until an approval is secured and the contract is signed,
there can be no agreement. Although I have not been
able to discern
from the papers what the internal delegation matrix devolved by the
board of Prasa to its acting chief executive,
I take a judicial
notice that such an approval would either have been formally
submitted to an Executive Committee of Prasa to
note and approve the
settlement. In such circumstances, the settlement agreement would
have been signed and of course payment would
have followed without
the need to litigate.
[30]
However,
this did not happen and from the papers, it is evident that Ms.
Tsautse and presumably Mr Mphelo were suspended from Prasa.
Furthermore, Ms. Tsautse denied in her opposing affidavit that she
never told Mr. Mbita that the settlement agreement had been
approved.
This is evident even from the only letter on Prasa’s letterhead
that the settlement agreement draft had been recommended
for
approval. Absent confirmation that the settlement agreement had been
approved, there cannot be a proposition that the parties
had in fact
reached an agreement. Mr. Mbita knew that he was not dealing with a
private company, but a State-owned entity and the
expectation was the
approval would need to be formalized. To shield behind sections 20(7)
and (8) of the
Companies
Act
,
2008 under those circumstances is not appropriate.
[31]
Courts
should not be used force parties to conclude agreements. Equally, our
courts should not be used as a mechanism to collect
debts on behalf
of the creditors. Given the long history of this matter, it is
evident that the applicants have repeatedly subjected
Prasa to
litigation to recover what they claim Prasa owes the first applicant.
[32]
It
would have served the first applicant well to have considered its
options and institute action in relation to the services which
it
rendered in terms of the MB2 stations which agreement came to an end
in 2016. In any event, the first applicant has failed to
institute a
claim to recover the debt it alleges is owed by Prasa since July 2017
when the arbitration was finalised. There is
no reason proffered in
the papers why this did not happen. From the genesis of the
litigation, it is evident that the previous
attempts to litigate,
lost significant time on the real issue, which was the vindication of
the first applicant’s rights
based on the MB2 stations. I have
not been called upon to decide that aspect and therefore will not
comment further.
[33]
That
said, I am not persuaded that the applicants have made out a case in
their founding application. Consequently, the application
stands to
be dismissed.
Costs
[34]
Ms.
Nharmuravate, submitted on behalf of Prasa that if this Court is with
Prasa, then a punitive cost order would be appropriate.
Based on the
litany of applications previously made regarding the matters before
me and because in fact in one of those unsuccessful
applications
involved making a disputed application an order of this court, I tend
to agree with the submission.
[35]
The
applicants are, in my view, engaged in the abuse of the court
process. This is so given that it never did anything about the
arbitral award. To force Prasa to come to court in circumstances
where such order if granted, would amount to a judgment, is simply
not acceptable. I am fortified in this view by the fact that
previously, a similar attempt was made to obtain as similar relief
and the attempts came to naught.
[36]
The
test on whether an appropriate punitive cost order should be imposed
lies in the discretion of the court, which discretion must
be
exercised judicially. The abuse of the court process is something
this Court has inherent power to guard against.
[18]
[37]
In
the instant case, because of the history of litigation between the
parties which culminated in the arbitral award by Advocate
Baloyi SC
and the fact that no action was taken by the applicants to vindicate
the first applicant’s rights relating to the
services rendered
in terms of MB2 stations, the present application is nothing but
contrived to circumvent having to deal with
the possible prescription
defence when the action is instituted. The present application which
is designed to have the effect of
a judgment through the
pronouncement that the disputed settlement agreement, is simply an
abuse of the court process which as already
stated, should be visited
upon with an appropriate punitive cost order.
[38]
I
now deal with the submission on behalf of the third respondent by Mr.
Panda that she is entitled to an appropriate cost order.
This was
premised on the fact that there was no justification for her to be
cited in her personal capacity and even seek a cost
order against her
on a punitive scale. This is so because the third respondent never
acted in her personal capacity but was discharging
her duties as an
official of Prasa.
[39]
Mr
Hoffman submitted that the cost order was not proceeded with against
the third respondent and this was made clear when the heads
of
arguments were prepared and filed on behalf of the applicants. He
argued that the third respondent was not entitled to the costs,
more
particularly because she filed the practice note late on the doorstep
of the court. The submission by Mr. Hoffman loses sight
of the fact
that the notice to oppose was filed during November 2023 and the
opposing affidavit by the third respondent was signed
on the 7
th
December 2023.
[40]
It
is correct that the heads of arguments from the third respondent were
served late and this is the reason condonation for the
late filing
thereof was sought at the hearing. Mr. Panda submitted on behalf of
the third respondent that the late filing of the
heads of arguments
was a result of the non-notification of the notice of set down to the
third respondent’s attorneys of
record. This submission is not
persuasive because firstly, it is not based on any formal application
and secondly it is not supported
by the affidavit from anyone from
the third respondent’s attorneys. Consequently, the costs
related to the late filing of
the heads of arguments by the third
respondent will not be allowed. Having said that, I am of the view
that all costs related to
the opposition but excluding the costs of
preparation of the heads should be allowed. This is so because the
applicants never formally
tendered the costs when they decided not to
pursue the cost order against the third respondent.
[41]
I
equally satisfied that, for the reasons advanced in this judgment
that Prasa is entitled to costs on a punitive scale basis.
Order
[42]
The
following order is made: -
(a)
The
application is dismissed.
(b)
The
applicants are ordered to pay costs on a scale as between client and
attorney to Prasa and the second respondent including the
cost of
counsel and
(c)
The
applicants are ordered to pay the costs on a scale as between client
and attorney to the third respondent including the cost
of counsel
but excluding the cost of heads of arguments and the practice note.
ML SENYATSI
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, JOHANNESBURG
Delivered:
This Judgment was handed down electronically by circulation to the
parties/ their legal representatives by email and
by uploading to the
electronic file on Case Lines. The date for hand-down is deemed to be
22 October 2024.
Appearances:
For
the Applicant: Adv JM Hoffman
Instructed
by Leslie Sedibe Inc.
For the first and second respondents:
Adv N Nharmuravate
Instructed
by Mncedisi Ndlovu Sedumedi Attorneys
For the third respondents: Adv T Panda
Instructed
by Thomson Wilks Incorporated
Date
judgment reserved: 14 October 2024
Date
of Judgment: 22 October 2024
[1]
1947(4) SA86 at
95
[2]
Ex parte Le
Grange and Another; Le Grange v Le Grange
[2013] ZAECGHC
75;
[2013] 4 All SA 41
(ECG) at para 10.
[3]
1925
AD 417
at para 95.
[4]
Supra at 432.
[5]
Caney The
Law of Novation
at
page 57.
[6]
Schierhout
v Minister of Justice
1925
AD 417
at
423;
Ex
Parte Venter and Spain NNO; Fordom Factoring Ltd & Others
intervening
;
Venter
and Spain v Povey and Others
1982(2)
SA 94 (D) at 101;
Hodd
v Hodd; D’ Aubrey v D’ Aubrey
1942
NPD 198
at
204 to 205 and
Van
Schalkwyk v Van Schalkwyk
1947(4)
SA 86 (O) at 98.
[7]
1942
NPD 198
at
204 to 205.
[8]
Above 7 at 204
[9]
See
generally Christie The Law of Contract in South Africa
5
th
ed
at page 343 to 349;
Schierhout
v Minister of Justice
supra
and
Schutte
v Schutte
1986(1)
SA 872 (A) (an attempt to oust the jurisdiction of the
courts);
Swadif
(Pty) Ltd v Dyke NO
1978(1)
SA 928 (A) at 945A - B (the order cannot seek to bind or place
obligations on third persons who are not parties to the
settlement
agreement);
Benefeld
v West
2011
(2) SA 379
(GSJ);
Shields
v
Shields
1946
CPD 242
;
Kotze
v Kotze
2003(3)
SA 628 (T).
[10]
Hodd
v Hodd; D’ Aubrey v D’ Aubrey
supra
at 207;
Van
Schalkwyk v Van Schalkwyk
supra
at 96, 98;
Mansell
v Mansell
1953(3)
SA 716 (N) at 721H and
Claassens
v Claassens
1981(1)
SA 360 (N) at 364C – D.
[11]
[2015]
ZACC 30; 2015 (11) BCLR 1319 (CC); 2016 (3) SA 37 (CC)
[12]
[2016] ZAGPJHC
114 at para 7.
[13]
Above foot note
11.
[14]
Above para 12.
[15]
42 of 1965.
[16]
Above at para 15.
[17]
[2013]
ZAGPPHC 43
[18]
Nzuza and
Others v National Director of Public Prosecutions and Others
[2024] ZAGPPHC 335 at para 44;
Maughan
v Zuma and Others
[2023] ZAKZPHC 59;
[2023] 3 All SA 484
(KZP);
2023 (5) SA 467
(KZP);
2023 (2) SACR 435
(KZP) at para 72.
sino noindex
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