Case Law[2024] ZAGPJHC 1161South Africa
Dzima and Another v Company Unique Finance (Pty) Limited and Others (2019/38139) [2024] ZAGPJHC 1161 (12 November 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
12 November 2024
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Dzima and Another v Company Unique Finance (Pty) Limited and Others (2019/38139) [2024] ZAGPJHC 1161 (12 November 2024)
Dzima and Another v Company Unique Finance (Pty) Limited and Others (2019/38139) [2024] ZAGPJHC 1161 (12 November 2024)
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sino date 12 November 2024
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO:2019/38139
In
the matter between:
MONA
SOLOMON DZIMBA
First
Applicant
JANE
DZIMBA
Second
Applicant
and
COMPANY
UNIQUE FINANCE (PTY) LIMITED
First
Respondent
CUF
PROPERTY MANAGEMENT SERVICES (PTY) LIMITED
Second
Respondent
BOOYSEN,
SYDNEY REAN
Third
Respondent
HOPKINS,
THEO
Fourth
Respondent
VAN
STADEN, JACOB MOSTERT SAAYMAN
Fifth
Respondent
JACOB
STEPHANUS OPPERMAN
Sixth
Respondent
REGISTRAR
OF DEEDS : JOHANNESBURG
Seventh
Respondent
JUDGMENT
UYS
AJ
[1]
Applicants
in their notice of motion dated 28 October 2019
[1]
seek:
[1.1]
declaratory relief to the effect that:
[1.1.1]
the
deed of sale of Erf 1[…] S[…], Extension 1, also known
as 1[…] G[…] C[…], S[…], registered
under
title deed number T10845/2016
[2]
,
concluded between First and Second Respondent during 2016 be declared
void
ab
initio
,
invalid and/or unlawful and be set aside; and
[1.1.2]
the cancellation of an instalment sale
agreement between First and Second Applicants and First Respondent on
22 April 2015 be declared
null and void and/or unlawful;
[1.2]
orders directing:
[1.2.1]
the
Seventh Respondent to cancel title deed T10845/2016 in respect of the
property as well as all rights accorded to Second Respondent
by
virtue of the title deed, this in terms of Section 6(1) of the Deeds
Registries Act;
[3]
[1.2.2]
the Seventh Respondent to revive
registration of ownership of the property to First Respondent under
title deed T42904/2007 in terms
of Section 6(2) of the Deeds Act; and
[1.2.3]
directing
First Respondent to transfer ownership of the property to “
the
Applicant”
in terms of Section 17(c) of the Alienation of Land Act
[4]
;
and
[1.3]
First to Sixth Respondents to be ordered to
pay the costs of the application.
[2]
Mention
should at this early juncture in this judgment be made to the fact
that the matter was to be heard on 13 August 2024 and
when so called
on that day, Mr Mdabe appeared for the Applicants and Mr Coleman
appeared for the First to Fifth Respondents. The
matter was stood
down on that day to the 15
th
of August 2024 14:00 for argument as there had not been compliance by
Applicants with certain of my directives when allocations
were made
by me (concerning provision of a full set of applicable papers) and
furthermore I only had access as at 13 August 2024
to a duplicate
file of the matter on CaseLines which did not contain all of the
papers such as
inter
alia
Applicants’ heads of argument, practice notes, etc.
[5]
[3]
During the early evening of Wednesday, 14
August 2024, a notice of removal of the matter was caused to be
uploaded to CaseLines
on behalf of the Applicants, this not only
without consent of the Respondents but similarly without the court’s
consent.
[4]
When
the matter was ultimately called by me on Thursday, 15 August 2024,
at 14:00
[6]
there was no appearance on behalf of the Applicants and upon having
heard argument from Mr Coleman
[7]
,
I commenced handing down a default judgment herein.
[5]
At approximately 14:20 a gentleman entered
the courtroom and upon enquiries made by me as to his surname and
reason for his presence,
he indicated to be Mr Nyathi, an attorney
who was at court essentially to appear on behalf of the Applicants,
but for the purpose
of ensuring that the matter was not proceeding in
consequence of the notice of removal filed.
[6]
I enquired from Mr Nyathi as to the
whereabouts of Mr Mdabe and was advised by him that after uploading
the notice of removal, Mr
Mdabe became “
busy
with other things”
and
unavailable for appearance in this matter. Mr Nyathi also
confirmed that Mr Mdabe was neither ill nor otherwise incapacitated.
[7]
The portion of the judgment already handed
down by me at that juncture was
recalled and I invited Mr
Nyathi to address me on the validity and/or effectiveness of the
notice of removal and similarly afforded
Mr Coleman on behalf of the
Respondents an opportunity to address me thereon.
[8]
Having heard the respective representations
in respect of such purported removal, I refused removal of the matter
from the roll,
upon which Mr Nyathi requested that the matter be
postponed. Submissions were made by Mr Nyathi as well as Mr Coleman
in respect
of such application for postponement which I refused with
an
ex tempore
judgment handed down by me in that regard at that time.
[9]
Following
the aforesaid dismissal of the application for postponement, Mr
Nyathi, after having considered the various available
options
available to him, indicated that as he was in no position to argue
the matter, but having knowledge of the fact that comprehensive
heads
of argument had been filed in the matter on behalf of the
Applicants
[8]
,
he would stand by the affidavits of Applicants and the heads of
argument so filed on behalf of the Applicants and on the basis
thereof, asked for the relief sought by Applicants to be granted.
[10]
A multitude of authorities were referred to
and submissions made in the parties’ respective heads of
argument and during argument.
The fact of certain such authorities
and submissions not specifically being referenced herein, is not to
be regarded as an indication
that it was not considered. To the
contrary, same had been given due consideration, specifically also
mindful of the fact that
Mr Nyathi, at the hearing, indicated that he
simply stood by the extensive heads of argument filed on behalf of
Applicants herein.
[11]
The
essence of Applicants’ case is that Applicants signed and
concluded what Applicants allege to have been an instalment
sale
agreement with an entity known as Meadow Star Investment (Pty)
Limited
[9]
on 8 April 2003 which, pursuant to the voluntary liquidation of
Meadow Star in 2007, was ceded to First Respondent on 23 August
2007.
[10]
[12]
Applicants
further allege that as a result of “
my
[11]
‘purported or alleged’ breach, the agreement was
cancelled and the property was sold to CUF Property Management (Pty)
Limited (CUF) and transferred to the latter on 21 February 2016”.
[12]
[13]
Applicants
further state their case to be that the cancellation of the agreement
between itself and First Respondent was null and
void and invalid as
Applicants had paid the purchase price and was entitled to have the
property registered in “
my”
name.
[13]
[14]
Applicants
also allege that the sale agreement with Second Respondent was null
and void as “
I”
[14]
purchased the property without there having been any legal basis for
the cancellation of the agreement between “
myself”
[15]
and Meadow Star or First Respondent.
[16]
[15]
It
is common cause on Applicants’ papers that the property was
sold to Second Respondent pursuant to the cancellation of the
agreement between Applicants and First Respondent.
[17]
[16]
Later
in Applicants’ founding affidavit, Applicants allege not to
have seen the cancellation letter of 22 April 2015 by First
Respondent, but a copy thereof is attached to Applicants’
founding affidavit as Annexure “SMD11”
[18]
without an explanation (other than an oblique reference to statements
requested in 2016 by SERI) as to how Applicants came to be
in
possession of this cancellation letter.
[16.1]
With regard to this letter, Applicants
stated that the content reflected an incorrect calculation of the
account and that the amount
was in violation of the
in
duplum
rule.
[16.2]
Furthermore, Applicants allege the
agreement had already been fulfilled “
by
2015”
as the debt was allegedly
settled.
[16.3]
The
Applicants also made reference to certain statutory provisions and
furthermore alleged that there had been invalidity and unlawful
conduct in the cancellation and in the transfers as same violated
Applicant’s rights in terms of Section 26(1) of the
Constitution
of the Republic of South Africa
[19]
.
[17]
On
behalf of First to Fifth Respondents, a defence is raised that the
current relief sought by Applicants cannot be granted as Applicants,
as at August 2016, had knowledge of the fact that the subject
property, being the essence in respect of which all of the relief
is
now sought, was sold and transferred to Second Respondent, with
Applicants having been aware of the sale and the transfer of
such
subject property from First Respondent to Second Respondent and
Second Respondent’s consequential ownership thereof,
at the
latest by 11 August 2016 when an application was launched and served
on Applicants seeking the eviction of Applicants from
the
property.
[20]
[18]
In
consequence of the aforesaid allegations by First to Fifth
Respondents
[21]
,
Respondents submit that Applicants’ claims (debts sought to be
enforced) in this application have prescribed.
[22]
[19]
In
addition, it is further raised by Respondents that the essential
issue in this matter, to wit ownership of the property, is
res
judicata
following upon the judgment granted for the eviction of Applicants
from the property, so granted on 27 July 2017 with the reasons
therefor handed down on or about 11 August 2017.
[23]
[20]
The facts in this matter are alleged by
Respondents to be that :
[20.1]
a
lease agreement was entered into in respect of the property between
Meadow Star and the First Applicant which lease agreement
contained
an option to purchase the subject property;
[24]
[20.2]
on
28 November 2004, Applicants concluded an agreement of purchase and
sale of immovable property with Meadow Star in respect of
the
property;
[25]
[20.3]
the
sale agreement of 28 November 2004 novated the earlier lease
agreement concluded on 8 April 2003;
[26]
[20.4]
the
sale agreement was ceded to First Respondent during August 2007 and
as Applicants failed to make punctual payment of monthly
payments,
Applicants were placed in
mora
on 22 April 2015;
[27]
[20.5]
as
Applicants failed to remedy their breach, First Respondent cancelled
the sale agreement on 25 June 2015 and duly advised Applicants
of
such cancellation;
[28]
[20.6]
pursuant
to the cancellation of the sale agreement, First Respondent sold the
property to Second Respondent in terms of the sale
agreement attached
to the founding affidavit as Annexure “SMD13” dated 28
January 2016;
[29]
[20.7]
upon
gaining knowledge of the cancellation of the sale agreement and
should Applicants have deemed same to constitute a repudiation
of the
agreement, an election ought to have been made to either accept or
reject such repudiation, which election was never conveyed
to First
or Second Respondents and in absence thereof, there had been a waiver
of a right to challenge the cancellation.
[30]
[20.8]
The eviction application already referenced
above then followed.
[21]
It
is to be specifically stated that from the reasons issued pertaining
to the eviction order granted
[31]
it follows that consequent upon the granting of an
ex
parte
order pertaining to service of the eviction application (so brought
in terms of Section 4(2) of the Prevention of Illegal Eviction
From
and Unlawful Occupation of Land Act
[32]
),
such application was enrolled on the 30
th
of September 2016, with First Applicant at that juncture having
appeared personally whereafter the matter was postponed to November
2016 to afford Applicant an opportunity to procure legal
representation.
[33]
[22]
From the above, it follows that at the
latest 30 September 2016 (when First Applicant appeared personally in
court), First Applicant
so appeared as a result of the eviction
application so served on at least First Applicant and Applicants
having had knowledge of
those proceedings.
[23]
The eviction application and the founding
affidavit in respect thereof formed part of the annexures to
Respondents’ answering
affidavit and from the founding
affidavit in the eviction proceedings it follows that, at the very
least, the following information
was within the knowledge of
Applicant by, at the very latest, 30 September 2016, to wit that:
[23.1]
Second Respondent (herein) was stated to be
the “
lawful registered owner”
of the property;
[23.2]
the
ownership of Second Respondent (herein) of such property was
evidenced by a WinDeed property search obtained from the Deeds
Office
and the title deed T10845/2016, both attached as annexures to that
affidavit;
[34]
[23.3]
First
Applicant (herein) was stated to reside at the property, but refuses
to vacate the property;
[35]
[23.4]
First
Applicant (herein) was alleged to be in unlawful occupation of the
property, alleged to occupy the property without the express
or tacit
consent of the lawful owner, having no other right to occupy the
property and not entitled in law to remain in occupation
of the
property;
[36]
[23.5]
the
property was purchased by Second Respondent (herein) from Company
Unique Finance (Pty) Limited (First Respondent herein) on
28 January
2016;
[37]
[23.6]
pursuant
to the property being sold to Second Respondent (herein) and the
subsequent transfer of the property
inter
alia
First Applicant (herein) was still in occupation of the property;
[38]
[23.7]
there
existed no lease agreement or other right to occupation between the
Applicants (herein) and the Second Respondents (herein)
entitling the
Applicants (herein) to remain in occupation of the property and that
as far as Second Respondent (herein) was aware
no lease agreement
existed between the previous owner (First Respondent herein) and the
Applicants (herein);
[39]
[23.8]
First
and Second Applicants (herein)
[40]
were the owners of the property until it was repossessed by First
Respondent (herein).
[41]
[24]
With
their replying affidavit, the Applicants filed a “
notice
of motion”
seeking that Sections 10(1) and 10(2) and 11(a) to (d) of the
Prescription Act
[42]
be found constitutionally invalid insofar as it prevents the Section
11(d) creditors from claiming a debt after 3 years of a claim
becoming due, because the provisions are in violation of such
creditor’s right in terms of Sections 9(1), 10, 25(5) and (6),
26(1) and (2) and 34 of the Constitution as well as for condonation
of the late filing of Applicants’ replying affidavit.
[43]
Condonation of such late filing of the replying affidavit was not
raised as an issue, but is granted to the extent necessary.
[25]
In
the said “
notice
of motion”
it is stated that the affidavit of First Applicant with the annexures
thereto will be used in support of the application
[44]
and it is presumed that it is the replying affidavit filed in the
proceedings upon which Applicants seek to rely for such relief
sought
in what it calls a “
notice
of motion”
.
[26]
On
or about 27 February 2020, Applicants, with the filing of their
replying affidavit, also caused a notice in terms of Rule 16A
to be
issued pertaining to the alleged unconstitutionality of the aforesaid
sections of the Prescription Act.
[45]
It does not follow from the papers herein that the said notice was
duly displayed by the registrar of this court as required, but
for
purposes hereof, it is assumed that it had so been done.
[27]
Applicants in their replying affidavit
inter alia
allege that:
[27.1]
the
allegations contained in Respondents’ answering affidavit are
“
...
partly false, incomplete at some point and do not give a true
reflection of the actual position.”
[46]
;
and
[27.2]
during
the time of the eviction proceedings and specifically when the SERI
report was being compiled and filed, Applicants had not
been provided
with the agreement of sale and statements of account in that First
Applicant “
...
was advised by Chance Nthombeni, Portia, Sibiya and Theo Hopkins, who
are, or were at the employment of the Second Respondent,
that the
agreements were burnt in a fire.”
[47]
These
allegations were not contained in Applicants’ founding
affidavit, but were raised in Applicants’ replying affidavit.
[28]
Applicants
do, however, admit remembering “
...
signing both the 2003 and later, the 2004 agreement ...”
[48]
.
Applicants continue and then allege in this regard that “
he”
was only now seeing the 2004 agreement for the first time after
having signed it and then reiterates the earlier allegation (which
is
nowhere to be found in the founding affidavit which is also the case
with remembering the signing of an agreement in 2003 and
2004) of
same having been deliberately concealed from him and with him having
been misled with it stated that it was burnt in a
fire.
[49]
[29]
Pertaining
to the prescription issue raised, Applicants
inter
alia
allege that the filing of a notice of appeal in the eviction
proceedings as early as 31 August 2017, constituted a process “
...
of securing his debt”.
[50]
In their replying affidavit, the Applicants in addition state the
following: “
Given
that the eviction proceedings are under an appeal, the matter is sub
judice, prescription was interrupted the moment we defended
the
eviction proceedings.”
[51]
[30]
It
essentially does not require stating, but for purpose of clarity, it
is legally untenable to seek to argue that either opposing
an
eviction application or noting an appeal against an eviction order
could have interrupted prescription in accordance with the
Prescription Act
[52]
in respect of Applicants’ relief sought in this current
application.
[31]
The
debts essentially claimed by Applicants in their current notice of
motion have not been claimed through either opposing (unsuccessfully
so) the eviction proceedings nor by applying for leave to appeal such
eviction order. Opposition to and/or application for leave
to appeal
in the eviction proceedings did not amount to “
service
on the debtor of any process whereby the creditor claims payment of
the debt”
[53]
[32]
It
has been alleged by Applicants that the application for leave to
appeal against such judgment is still pending which, given the
lapse
of 8 years since so granted, remained unexplained in Applicants’
affidavits other than allegations to the effect that
after the
application for leave to appeal was struck off the roll due to the
failure of Mr Mdabe to have appeared
[54]
an application was served and filed on 9 May 2018 for same to be
reinstated.
[55]
This some two years later.
[33]
No indication is provided as to what
occurred in respect of that reinstatement application over the past 6
years.
[34]
Despite
the plethora of denials contained in Applicants’ replying
affidavit, it is to be noted that Applicants have admitted
that they
concluded an agreement of purchase of sale of the property on 28
November 2004, that a true copy of that agreement was
attached to
Respondents’ answering affidavit as Annexure “H”
and that such agreement novated the lease agreement
that was
concluded on 8 April 2003.
[56]
[35]
Applicants
deny cession of the sale agreement to First Respondent, that their
payments made were sporadic, that they were placed
in
mora
,
that Applicants failed to remedy their breach and that a copy of the
cancellation letter was forwarded to it pursuant to First
Respondent’s cancellation of the sale agreement.
[57]
[36]
From the aforesaid, it follows that
numerous disputes of fact exist on the papers, particularly
pertaining to the factual background
detailed in Respondents’
answering affidavit when read with the facts stipulated in
Applicants’ replying affidavit.
[37]
There
was no request by Applicants, mindful of these factual disputes, for
the matter to be referred to oral evidence or to trial.
In the
result, the so-called
Plascon-Evans
rule
[58]
finds application which was aptly summarised as follows in
National
Director of Public Prosecutions v Zuma
[59]
:
“
Motion
proceedings, unless concerned with interim relief, are all about the
resolution of legal issues based on common cause facts.
Unless the
circumstances are special they cannot be used to resolve factual
issues because they are not designed to determine probabilities.
It
is well established under the Plascon-Evans rule that where in motion
proceedings disputes of fact arise on the affidavits,
a final order
can be granted only if the facts averred in the applicant’s ...
affidavits, which have been admitted by the
respondent ..., together
with the facts alleged by the latter, justify such order. It may be
different if the respondent's version
consists of bald or
uncreditworthy denials, raises fictitious disputes of fact, is
palpably implausible, far-fetched or so clearly
untenable that the
court is justified in rejecting them merely on the papers.”
[60]
[38]
It cannot be said that Respondents’
version consists of bald or uncreditworthy denials, that it raises
fictitious disputes
of fact or is palpably implausible, far-fetched
or that it is clearly untenable to the extent that the court is
justified in rejecting
them merely on the papers.
[39]
Given the aforesaid, the relief sought as
set out in Applicants’ notice of motion can only be granted if
the facts averred
in Applicants’ affidavits which had been
admitted by the Respondents, read with the facts alleged by the
Respondents, justify
the granting thereof.
[40]
Respondents, apart from their opposition
pertaining to the merits of Applicants’ claim and denial of
Applicants’ entitlement
thereto, raised two additional issues,
to wit
res judicata
and that the relief now sought by Applicants, thus such debts, have
become prescribed.
[41]
With
regard to the question of res judicata, it has been held that for a
defence of res judicata to be successfully raised, it is
not an
immutable requirement that the same thing must be claimed.
[61]
[42]
In
Smith
v Porritt and Others
[62]
the
law pertaining to
res
judicata
was summarised and it was
inter
alia
held that:
“
Where
the circumstances justify the relaxation of these requirements those
that remain are that the parties must be the same (idem
actor) and
that the same issue (eadem quaestio) must arise. Broadly stated, the
latter involves an inquiry whether an issue of
fact or law was an
essential element of the judgment on which reliance is placed.”
[43]
I am in agreement with Mr Coleman who
appeared on behalf of the Respondents that in granting the eviction
order, at the very least
by necessary inference, a finding of
ownership of the property (being that of Second Respondent herein) or
conversely the non-entitlement
of Applicants to have occupied the
property resulting from their non-ownership of the property followed.
[44]
The
relief that is currently sought by Applicants herein is, however, now
an attack on that very ownership of the property and specifically
the
lawfulness thereof, which includes a prayer for the cancellation of
the title deed under which Second Respondent holds such
property.
Careful perusal of the reasons handed down on 11 August 2017 in the
eviction proceedings
[63]
,
is in my view indicative thereof that it cannot in this instance be
held that it is the same issue
(eadem
quaestio)
of lawful ownership that is now to be determined herein and which was
essentially inferred in the eviction proceedings.
[45]
In the result I find that Respondents’
defence of
res judicata
must fail.
[46]
Prior to dealing with the issue of
prescription, the application for declaration of unconstitutionality
of Sections 10(1) and 10(2)
and 11(a) to (d) of the Prescription Act,
alternatively declaring it constitutionally invalid to the extent
that it prevents Section
11(d) creditors from claiming a debt after 3
years of the claim becoming due resulting from the provisions alleged
to be in violation
of such creditor’s right in terms of Section
9(1), 10, 25(5) and (6), 26(1) and (2) and 34 of the Constitution
needs to be
briefly addressed.
[47]
The Constitutional Court has on numerous
occasions considered, upheld and applied the provisions contained in
the Prescription Act,
the time periods detailed therein and confirmed
the consequences arising therefrom.
[48]
In
Road
Accident Fund and Another v Mdeyide
[64]
it was reiterated that under the rule of law, the fundamental right
of access to courts is essential for constitutional democracy
and it
is for this very reason that the right of access to courts is
protected in the Constitution.
[65]
[49]
The court in
Mdeyide,
notwithstanding the above
,
continued and held that:
“
[2]
In the interests of social certainty and the quality of adjudication,
it is important, though, that
legal disputes be finalised timeously.
The realities of time and human fallibility require that disputes be
brought before a court
as soon as reasonably possible. Claims thus
lapse, or prescribe, after a certain period of time. If a claim is
not instituted within
a fixed time, a litigant may be barred from
having a dispute decided by a court. This has been recognised in our
legal system —
and others — for centuries.”
[66]
[50]
In
Mdeyide
the court also stipulated that it (the Constitutional Court):
“
...has
repeatedly emphasised the vital role time limits play in bringing
certainty and stability to social and legal affairs, and
maintaining
the quality of adjudication. Without prescription periods, legal
disputes would have the potential to be drawn out
for indefinite
periods of time, bringing about prolonged uncertainty to the parties
to the dispute. The quality of adjudication
by courts is likely to
suffer as time passes, because evidence may have become lost,
witnesses may no longer be available to testify,
or their
recollection of events may have faded. The quality of adjudication is
central to the rule of law. For the law to be respected,
decisions of courts must be given as soon as possible after the
events giving rise to disputes, and must follow from sound reasoning,
based on the best available evidence.”
[67]
[51]
No proper grounds have been raised by
Applicants that can sustain a finding that Sections 10(1) and (2) and
11(a) to (d) of the
Prescription Act are constitutionally invalid
insofar as it prevents the Section 11(d) creditors from claiming a
debt after 3 years
of the claim becoming due because the provisions
are allegedly in violation of such creditor’s rights in terms
of Sections
9(1), 10, 25(5) and (6), 26(1) and (2), and 34 of the
Constitution.
[52]
There is also another reason why such
relief sought by the Applicants pertaining to the unconstitutionality
or constitutional invalidity
of certain sections of the Prescription
Act, cannot be entertained herein. That flows from the provisions
contained under Rule
10A of the Uniform Rules of this court which
provides that:
“
10A.
(1) If in any proceedings before the court, the validity
of a law is challenged, whether in whole or in part and
whether on
constitutional grounds or otherwise, the party challenging the
validity of the law must join the provincial or national
executive
authorities responsible for the administration of the law in the
proceedings.”
[53]
The
Applicants have failed to comply with the provisions of Rule 10A in
this regard.
[68]
[54]
Applicants’ application filed through
its later “
notice of motion”
(to the extent that it has any validity at all) and its defence
against the prescription raised, founded upon the alleged
constitutional
invalidity and/or those particular sections, to wit
Sections 10(1) and (2) and 11(a) to (d), being unconstitutional to
the extent
that it prevents Section 11(d) creditors from claiming a
debt after 3 years of the claim becoming due as those provisions are
alleged
to be in violation of such creditor’s right in terms of
Sections 9(1), 10, 25(5) and (6) and 26(1) and (2), and 34 of the
Constitution, cannot be upheld and is notwithstanding non-compliance
with the provisions of Rule 10A of the Uniform Rules of Court
found
to be without merit and dismissed.
[55]
A further issue raised by the Respondents
as a defence is that the claims (debts as per the relief sought) of
Applicants have prescribed
in accordance with the provisions of the
Prescription Act under circumstances where:
[55.1]
the
purchase agreement that forms the basis of Applicants’
application (so Respondents allege) was cancelled on 22 April
2015
[69]
;
[55.2]
Applicants
were aware or should have been aware since 11 August 2016 that the
property was transferred into the name of Second Respondent
[70]
;
and
[55.3]
it
being alleged to have been common cause that Applicant was in arrears
and did not pay in terms of the agreement.
[71]
[56]
I
am in agreement with Respondents that to a large degree and
pertaining to the second agreement, which Applicants, as aforesaid,
admitted to have signed, Applicants sought to make out a case in its
replying affidavit which is not permissible and not to be
entertained.
[72]
Such reliance by Applicants has, however, even if it were to be
considered, no real effect or import herein given what is stipulated
below.
[57]
The
bare minimum information that Applicants knew at the very latest as
at 30 September 2016 has already been stated above.
[73]
[58]
It
has been held by the Supreme Court of Appeal that the transfer of
land constitutes a debt falling within the ambit of Section
11(d) of
the Prescription Act and in respect whereof a 3 year prescriptive
period finds application.
[74]
[59]
The
word “
debt”
has not been defined in the Prescription Act, but it has been held
that the word “
debt”
does not refer to the narrower concept of a cause of action, but
rather to the broader concept of right of action or what has come
to
be known as the creditor’s “
claim”
.
[75]
[60]
In
Minister
of Finance v Gore
[76]
the
court reiterated that:
“
This
Court has, in a series of decisions, emphasised that time begins to
run against the creditor when it has the
minimum
facts
that are necessary to institute action. The running of prescription
is not postponed until a creditor becomes aware of the full
extent of
its legal rights, nor until the creditor has evidence that would
enable it to prove a case 'comfortably'.”
[77]
(own
emphasis)
[61]
Pertaining to a claim flowing from a breach
of contract, it follows that prescription starts running as from the
date of breach
(or repudiation) of contract, irrespective of the
election made by the assumed innocent party to such contract.
[62]
On
a proper characterisation of the relief sought by Applicants, it
follows that such relief falls within the definition of a debt,
in
its slightly broader sense, but furthermore within the ambit of
Section 11(d) of the Prescription Act and in respect of which
a 3
year prescription period finds application.
[78]
[63]
In its replying affidavit, Applicants
sought to rely on the provisions of Sections 12(2) and 12(3) of the
Prescription Act and which
provides as follows:
“
(2)
If the debtor wilfully prevents the creditor from
coming to know of the existence of the debt, prescription
shall not
commence to run until the creditor becomes aware of the existence of
the debt.
(3)
A debt shall not be deemed to be due until the creditor has knowledge
of the identity of the debtor
and of the facts from which the debt
arises: Provided that a creditor shall be deemed to have such
knowledge if he could have acquired
it by exercising reasonable
care.”
[64]
The
high water mark of Applicants’ evidence upon which Applicants’
reliance on Sections 12(2) and 12(3) of the Prescription
Act is
founded, are that despite it being admitted that seemingly at least
First Applicant remembered signing both the 2003 and
2004 agreements,
Applicants only saw same for the first time as attachment to
Respondents’ answering affidavits.
[79]
[65]
Applicants
allege that the sale agreements existed : “
...
and were deliberately concealed from me, because they misled me and
said it was burnt in a fire.”
[80]
[66]
It is not insignificant to note that
nowhere in Applicants’ founding affidavit itself was mention
made that, upon request
for provision of statements and/or
agreements, Applicants were advised of same having been burnt in a
fire or more importantly
that the existence of any agreements or
statements had been deliberately concealed from Applicants.
[67]
Applicants
clearly, at the very latest as at 30 September 2016 had knowledge of
at least the “
...
minimum facts that
[were]
necessary
to institute action”
,
to wit the identity of the current registered owner of the property
(as same was not only alleged in the founding affidavit within
the
eviction application
[81]
,
but in fact the title deed was attached to those papers
[82]
)
the identity of not only the then owner of the property, being Second
Respondent herein, but also the seller of the property,
being First
Respondent herein, that Applicants were alleged to have been in
unlawful occupation of the property as well as Applicants’
own
knowledge of the agreements concluded in respect of the property and
payments made by Applicants.
[68]
Given the aforesaid, Applicants’
reliance on Sections 12(2) and 12(3) as to the commencement of
prescription having been delayed,
is without merit, mindful of the
information available to Applicants at that juncture. Applicants have
not provided any indication
of any further steps taken immediately
upon receipt of the eviction application to obtain further
documentation and/or information
other than that stipulated above,
which has already been found wanting.
[69]
The current application was launched on 29
October 2019, thus more than 3 years after Applicants had sufficient
knowledge of their
right of action (or claim) yet they failed to
launch the application timeously. I thus find that Applicants’
right of action
(claims) in respect of the relief sought in their
notice of motion has prescribed.
[70]
In the result I grant the following orders:
1.
Applicants’ application dated 28
October 2019 is dismissed with costs, such costs to include costs of
counsel on scale C.
2.
Applicants’ application dated 27
February 2020 (filed with its replying affidavit) is, save for
paragraph 2 thereof, dismissed
with costs, such costs to include
costs of counsel on scale C.
J
C UYS SC
Acting
Judge of the High Court
Gauteng
Division, Johannesburg
Heard
:
Judgment
:
15
August 2024
12
November 2024
Appearances
For
Applicants:
On
instructions:
Mr
Nyathi
For
First to Fifth Respondents
:
On
instructions:
Adv
E Coleman
Michelle
Neethling Attorneys
[1]
CaseLines
pages 001-3 to 001-7
[2]
referred
to herein as “
the
property”
[3]
Act
47 of 1937, referred to herein as the “
Deeds
Act”
[4]
Act
68 of 1981, referred to herein as the “
Alienation
of Land Act”
[5]
All
of this was rectified later that day (13 August 2024)
[6]
such date and time agreed with the parties’ respective
representatives, inclusive of
Mr
Mdabe
on Tuesday, 13 August 2024
[7]
who
confirmed that he tried contacting Mr Mdabe telephonically without
success
[8]
heads
of argument of approximately 40 pages compiled and submitted herein
by Mr Thulani Nkosi instructed by Mdabe Hlongwa Attorneys,
CaseLines
pages 005-17 to 005-57
[9]
referred
to herein as “
Meadow
Star”
[10]
founding
affidavit, paragraph 1, CaseLines pages 002-9
[11]
in
paragraph 4 of the founding affidavit it is stated that “
I
am the Applicant in this matter, I concluded and signed ...”
this despite there being two Applicants in the matter
[12]
founding
affidavit, paragraph 1, CaseLines page 002-10
[13]
founding
affidavit, paragraph 11.1, CaseLines page 002-13. It is assumed that
the intended reference was to both Applicants
[14]
seemingly
an intended reference to Applicants
[15]
it
is assumed to be and intended as a reference to Applicants
[16]
founding
affidavit, paragraph 11.2, CaseLines page 002-14
[17]
founding
affidavit, paragraph 13, CaseLines page 002-14; reference in that
paragraph made of the agreement between “
myself
and Company Unique Finance”
,
however, for purposes hereof and mindful of the relief sought by
Applicants, it is assumed that the agreement was so entered
into
between Applicants and First Respondent
[18]
CaseLines
002-134
[19]
1996,
referred to herein as the “
Constitution”
.
See paragraph 50.3 of Applicants’ founding affidavit,
CaseLines page 002-34 seemingly to be read with paragraph 41 at
CaseLines 001-25 to 001-26 as well as paragraphs 42, 44 and 45 at
CaseLines 002-26 to 002-27
[20]
answering
affidavit, paragraphs 11 and 12, CaseLines page 003-8
[21]
for
ease of reference simply herein referred to as the “
Respondents”
with the understanding that same excludes Sixth Respondent who has
passed away as well as Seventh Respondent
[22]
answering
affidavit, paragraph 13, CaseLines page 003-8
[23]
Annexure
“E” to Respondents’ answering affidavit, CaseLines
page 003-30 to 003-40
[24]
answering
affidavit, paragraph 17.2, CaseLines page 003-10
[25]
answering
affidavit, paragraph 17.3, CaseLines page 003-10 read with Annexure
“H”, CaseLines page 003-116 to 003-124
[26]
answering
affidavit, paragraph 17.3, CaseLines page 003-10
[27]
answering
affidavit, paragraph 17.4, CaseLines page 003-11; see also Annexure
“I”, CaseLines page 003-128 which is
to be read with
Annexure “SMD11”, CaseLines page 002-134
[28]
answering
affidavit, paragraph 17.5, CaseLines page 003-11 read with Annexure
“J”, CaseLines page 003-131 to 132
[29]
answering
affidavit, paragraph 17.6, CaseLines page 003-11 read with Annexure
“SMD13” to Applicants’ founding
affidavit
commencing at CaseLines page 002-137
[30]
paragraph
17.7 of Respondents’ answering affidavit, CaseLines page
003-12
[31]
Annexure
“E”, CaseLines page 003-30 to 003-40
[32]
19
of 1998, referred to herein as the “
PIE
Act”
[33]
paragraph
5 of the said reasons, see footnote 31 above
[34]
paragraph
431 with sub-paragraphs thereto of the founding affidavit in the
eviction application, CaseLines page 003-47; The details
of both the
seller and purchaser appear in the Deed of Transfer T10845/2016 that
formed an attachment to the founding affidavit
in the eviction
proceedings; CaseLines pages 003-61 to 005-64
[35]
paragraphs
5, 5.1 and 5.2 of the founding affidavit, CaseLines page 003-47
[36]
paragraph
11 with sub-paragraphs thereto, CaseLines pages 003-48 to 003-49
[37]
founding
affidavit in the eviction application, paragraph 13, CaseLines page
003-49
[38]
founding
affidavit in the eviction application, paragraph 15, CaseLines page
003-50
[39]
paragraph 16 of the
founding
affidavit in the eviction application, CaseLines page 003-50
[40]
seemingly
a reference to First and Second Applicants in the application
currently to be adjudicated upon by me
[41]
paragraph 18 of the
founding
affidavit in the eviction application, CaseLines page 003-50
[42]
68
of 59, referred to herein as the “
Prescription
Act”
[43]
CaseLines
pages 004-3 to 004-4
[44]
CaseLines
page 004-4; The status of such “
notice
of motion”
pertaining
to the relief other than condonation is uncertain, but it will be
adjudicated upon nonetheless, subject to what is
stated below in
respect of a new case sought to be made out in reply to which
Respondents had not had the opportunity to respond
[45]
CaseLines
pages 020-1 to 020-4
[46]
Applicants’
replying affidavit, paragraph 3, CaseLines page 004-8
[47]
Applicants’
replying affidavit, paragraph 7, CaseLines page 004-10
[48]
Applicants’
replying affidavit, paragraph 11, CaseLines page 004-11 to 004-12
[49]
Applicants’
replying affidavit, paragraph 12, CaseLines page 004-12 read with
paragraph 14, CaseLines 004-12
[50]
Applicants’
replying affidavit, paragraph 65, CaseLines page 004-31
[51]
Applicants’
replying affidavit, paragraph 66, CaseLines page 004-32
[52]
see
Section 15 of the Prescription Act which provides:
“
(1)
The running of prescription shall, subject to the provisions of
subsection (2), be interrupted by the service on the debtor
of any
process whereby the creditor claims payment of the debt.”
[53]
See
footnote 52 above
[54]
Applicants’
replying affidavit, paragraph 19, CaseLines page 004-14
[55]
Applicants’
replying affidavit, paragraph 21, CaseLines page 004-14
[56]
Answering
affidavit, paragraph 17.3, CaseLines page 003-10 read with replying
affidavit, paragraph 68, CaseLines page 004-33
[57]
Answering
affidavit, paragraphs 17.4 and 17.5, CaseLines page 003-11 read with
replying affidavit, paragraphs 69 and 70, CaseLines
pages 004-33 and
004-34
[58]
Plascon-Evans
Paints Transvaal Limited v Van Riebeeck Paints (Pty) Limited
1984 (3) 623 (AD) at 634E to 635C
[59]
[2009] ZASCA 1
;
2009
(2) SA 277
(SCA) at paragraph
[26]
[60]
see
also
Wightman
t/a JW Construction v Headfour (Pty) Limited and Another
[2008] ZASCA 6
;
2008
(3) SA 371
(SCA) at paragraph
[13]
[61]
Janse
van Rensburg and Others NNO v Steenkamp and Another, Janse van
Rensburg and Others NNO v Myburgh and Others
2010 (1) SA 649
(SCA) at paragraph [20]
[62]
2008
(6) SA 303
(SCA) at paragraph [10]
[63]
CaseLines
pages 003-30 to 003-40
[64]
2011
(2) SA 26
(CC) (herein referred to as “
Mdeyide”
[65]
Mdeyide
at paragraph [1]
[66]
The
court in
Mdeyide
confirmed
that “
prescription
is provided for by the Prescription Act ...”
[67]
see
also
Le
Roux and Another v Johannes G Coetzee & Seuns and Another
2024 (4) SA 1
(CC) at paragraphs [29] to [34];
Mtokonya
v Minister of Police
2018
(5) SA 22
(CC) at paragraphs [46], [48], [50], [63] and [84]
[68]
In
Van
der Merwe v Road Accident Fund (Women’s Legal Centre Trust as
amicus curiae)
[2006] ZACC 4
;
2006
(4) SA 230
(CC) at 241 E-G, the Constitutional Court explained the
reasoning as follows:
“
On
a number of occasions this Court has emphasised that when the
constitutional validity of an Act of Parliament is impugned the
Minister responsible for its administration must be a party to the
proceedings inasmuch as his or her views and evidence tendered
ought
to be heard and considered. Rudimentary fairness in litigation
dictates so. There is another important reason. When the
constitutional validity of legislation is in issue, considerations
of public interest and of separation of powers surface. Ordinarily
courts should not pronounce on the validity of impugned legislation
without the benefit of hearing the State organ concerned
on the
purpose pursued by the legislation, its legitimacy, the factual
context, the impact of its application, and the justification,
if
any, for limiting an entrenched right. The views of the State organ
concerned are also important when considering whether,
and on what
conditions, to suspend any declaration of invalidity.”
[69]
Respondents’
heads of argument, paragraph 2.2; Respondents’ answering
affidavit, paragraph 17.4 at CaseLines page
003-11
[70]
Respondents’
heads of argument, paragraph 2.2.2
[71]
Respondents’
heads of argument, paragraph 2.2.3. It is not stipulated by
Respondents on what basis it is stated to be common
cause that
Applicants were in arrears and did not pay in terms of the agreement
[72]
Titty’s
Bar and Bottle Store v ABS Bottle Garage (Pty) Limited and Others
1974
(4) SA 362
(T) at 368 H;
York
Timbers
(Pty) Limited v National Director of Public Prosecutions
2015
(3) SA 122
(GP) and
Dladla
and Others v City of Johannesburg and Another
2014
(6) SA 516
(GJ) at paragraph [12]
[73]
see paragraph [23] above with sub-paragraphs thereto
[74]
Desai
NO v Desai
[1995] ZASCA 113
;
1996
(1) SA 141
(A) at 146 H to 147 I
[75]
Duvenhage
v Eerste Nasionale Bank van SA Beperk
[2005]
4 All SA 46
(N) at 57 and
Apalamah
v Santam Insurance Co Limited
1975
(2) SA 229
(D) at 232 E-F
[76]
2007
(1) SA 111
(SCA) at 119 J – 120 A
[77]
This
passage was again quoted with approval in
WK
Construction (Pty) Limited v Moores Rowland
[2022]
ZASCA 44
(SCA) at paragraph
[33]
[78]
See
ABSA
Bank Limited v Keet
2015 (4) SA 474
(SCA) at paragraph [12];
Tsie
v Brenner and Others
2024 JDR 1130 GJ at paragraph [32] where the court held:
“
The fact that
the right concerns an incorporeal movable that finds expression in
the members interest of a close corporation does
not alter the fact
that the contractual obligation to effect transfer, assuming for a
moment the applicant is correct in his
interpretation, constitutes a
‘debt’ within the meaning of the Prescription Act.”
[79]
replying
affidavit, paragraphs 11 and 14, CaseLines pages 004-11 to 12
[80]
replying
affidavit, paragraph 12, CaseLines pages 004-12 read with paragraph
7, CaseLines page 004-10 and paragraph 10, CaseLines
page 004-11
[81]
see
paragraph 4.3 of the founding affidavit in the eviction application,
CaseLines page 003-46
[82]
see
Annexure “C” to the founding affidavit in the eviction
application at CaseLines page 003-60 to 64
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