Case Law[2023] ZAGPJHC 318South Africa
Sekgala v Body Corporate of Petra Nera (08951/2017) [2023] ZAGPJHC 318 (13 April 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
13 April 2023
Judgment
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## Sekgala v Body Corporate of Petra Nera (08951/2017) [2023] ZAGPJHC 318 (13 April 2023)
Sekgala v Body Corporate of Petra Nera (08951/2017) [2023] ZAGPJHC 318 (13 April 2023)
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#### REPUBLIC
OF SOUTH AFRICA
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
LOCAL DIVISION, JOHANNESBURG)
Case
No: 08951/2017
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
REVISED
In the matter between:
RAMMUTLANA BOELIE
SEKGALA
Applicant
and
THE
BODY CORPORATE OF PETRA NERA
Respondent
In
re
THE BODY CORPORATE
OF PETRA NERA
Applicant
and
RAMMUTLANA BOELIE
SEKGALA
Respondent
JUDGMENT ON RESCISSION
ENGELBRECHT,
AJ
INTRODUCTION AND
BACKGROUND
[1]
This is an application for the rescission of a
provisional sequestration order granted by my brother Lamont J on 8
September 2020.
[2]
There is a long and somewhat convoluted history
that is relevant to the adjudication, and which deserves some
attention.
[3]
Little
over five years ago, on 13 March 2017 the Body Corporate of Petra
Nera (the Body Corporate) brought an application asking
that the
estate of Mr Rammutlana Boelie Sekgala (Mr Sekgala) be provisionally
sequestrated and that the estate be placed in the
hands of the Master
of the High Court. The Body Corporate also sought an order
“
That
the Provisional Order serves as a rule nisi returnable on such date
as this Honourable Court
deems
fit on which date the Respondent or any other interested party may
show
cause as to why the provisional sequestration order should not be
granted
”
.
[1]
[4]
In support of its application, the Body Corporate
alleged that Mr Sekgala had failed and/or refused to pay certain
levies that were
due and that his failure to satisfy a judgment debt
was deemed an act of insolvency. The Body Corporate alleged
that, at
the time of the application, Mr Sekgala had 19 judgments
against his name and that it was clear that he was “
avoiding
several creditors and is insolvent”
.
It also pointed out that “
The debt
of the Respondent is ever increasing and on a monthly basis is
credited against the Respondent’s statement”
.
[5]
After Mr Sekgala pointed out that he had obtained
rescission orders in the actions in which the Body Corporate had been
granted
default judgments, the Body Corporate filed a supplementary
affidavit in which it explained that Mr Sekgala had failed to plead
and that it had lodged default judgment applications once more.
The Body Corporate explained that the debt to it had escalated
to an
amount in excess of R600 000,00 (six hundred thousand Rand) and
that Mr Sekgala had failed to pay levies for several
years. The
Body Corporate identified fourteen judgments against Mr Sekgala in
respect of outstanding levies involving properties
he owns with six
different body corporates and totaling an amount of more than
R800 000,00 (eight hundred thousand Rand).
The Body Corporate
submitted that “
Considering the
total amount of the Respondent’s debt, it is clear that he
cannot meet his commitments and it is submitted
that he is
commercially insolvent”
.
[6]
In May 2020, the Body Corporate filed a further
supplementary affidavit indicating that the outstanding amount owed
to it alone
had grown to almost R850 000,00 (eight hundred and
fifty thousand Rand). Once more, the Body Corporate pointed out
that
several judgments had been recorded against Mr Sekgala. In
essence, the Body Corporate relied on factual and commercial
insolvency
under section 9 of the Insolvency Act.
[7]
In response Mr Sekgala basically said that the
amounts were not due and payable, without explaining why this was
so.
[8]
The
provisional sequestration application eventually came before my
brother Spilg J. On 22 June 2020 he granted an order placing
Mr
Sekgala under provisional sequestration, together with an order that
“
The
provisional order serves as a rule nisi, returnable on 25 August
2020, on which date the Respondent or any interested party
may
show
cause as the provisional sequestration order should not be
granted
”
.
[2]
[9]
When the matter came before Court on 25 August
2020, it was rolled over to 26 August 2020. On 26 August 2020, the
rule
nisi
was
extended to 8 September 2020.
[10]
On 8 September 2020, the matter came before Lamont
J. Mr Sekgala was in attendance, and he made submissions in
support of
his position that a final sequestration order could not be
granted. Amongst these submissions was one on the basis that
the
order made by Spilg J did not call upon Mr Sekgala to show cause
why his estate should not be sequestrated “
finally”
.
This, on the basis of the wording reflected and underlined
hereinabove. Mr Sekgala’s position was the wording
of the
rule
nisi
was
inconsistent with the requirements of section 11(1) of the Insolvency
Act 24 of 1936 (Insolvency Act). This much is reflected
in
paragraph 20 of the founding affidavit in the rescission application,
and was also explained to me in argument.
[11]
It would appear that Lamont J accepted the
submission that a final sequestration order could not be made in the
circumstances.
In what appears to be an attempt at a practical
solution to the problem identified – that the rule
nisi
had failed properly to call on Mr
Sekgala to make submissions on why a
final
order ought not to be made – the learned
judge issued a fresh order, again recording that Mr Sekgala’s
estate
is provisionally sequestrated and placed in the hands of
the Master of the High Court and calling upon any interested party to
show cause by 10 November 2020 why Mr Sekgala’s estate should
not be sequestrated finally.
[12]
The matter was not enrolled for 10 November 2020,
apparently in consequence of an administrative error. The rule
nisi
issued
by Lamont J lapsed.
[13]
On 17 November 2020, the Body Corporate brought an
urgent application to revive the rule
nisi
.
My brother Makume J revived the rule nisi on 11 December 2020 and
extended it to 5 February 2021. On 5 February 2021
my brother
Vally J extended the rule nisi to 15 March 2021, and on that date
Makume J extended the rule nisi to 24 May 2021.
In the
meantime, Mr Sekgala brought an application for the rescission of the
revival order of 11 December 2020.
[14]
Then, on 21 May 2021, Mr Sekgala brought the
application to rescind Lamont J’s provisional order dated 8
September 2020 that
is the subject-matter of the present application.
[15]
The application for final sequestration came
before my brother Makume J on 24 May 2021. In accordance with
an issued directive,
it was to be heard together with the application
for the rescission of the revival order. On 28 May 2021, Makume
J issued
his judgment: he dismissed the rescission application in
respect of the revival order, and placed Mr Sekgala under final
sequestration.
Mr Sekgala sought leave to appeal that order and
judgment. Leave was not granted. His petition to the
Supreme Court
of Appeal was dismissed.
THE BASIS FOR THE
APPLICATION
[16]
In the founding affidavit, Mr Sekgala explained
that the basis for the rescission application is that “
the
provisional sequestration order of 08 September 2020 was erroneously
sought and/or granted in my absence within the meaning
of Uniform
Rule 42(1)(a)”
. He asked
for the rescission under Uniform Rule 42(1)(a), and on the basis that
this Court is empowered under
section 149(2)
of the
Insolvency Act to
rescind any orders granted under the statute.
[17]
Moreover, Mr Sekgala proffered reasons why the 8
September 2020 order was to be rescinded under the common law.
17.1.
He explained that he had not filed an opposing
affidavit because, prior to that date there had not been an order in
place properly
calling him to show cause why his estate should not be
sequestrated finally, as contemplated by
section 11(1)
of the
Insolvency Act and
that the matter had not been set down for 8
September 2020.
17.2.
As regards his defence, he submitted that the
relief sought and/or granted on 8 September 2020 was “
for
a second provisional sequestration order, over and that already
granted by the court on 03 July 2020 [sic]. It is respectfully
submitted that this approach is not sanctioned by statute and
therefore incompetent, upon a proper construction of
sections 10
, 11
and 12 of the
Insolvency Act, read
together. Put differently,
the relief sought and/or granted was in breach of express statutory
provisions and was therefore
unlawful and unconstitutional”
.
Mr Sekgala also made the point that the jurisdictional factors for
the exercise of power under
section 12
of the
Insolvency Act had
not
been met and that the exercise of the power to grant such an order
was improper, because disputes relating to his indebtedness
to the
Body Corporate remained pending. Finally, he adopted the position
that the issue of the provisional sequestration order
was
res
iudicata
and therefore that no order
for provisional sequestration could competently be granted.
CENTRAL QUESTIONS
[18]
Further to the joint practice note prepared by the
parties and the submissions received on 11 April 2023, the central
questions
in this matter requiring consideration by this court are:
18.1.
whether the provisional order of Lamont J can be
rescinded now that Mr Sekgala has been finally sequestrated; and
18.2.
if so, whether the requirements for rescission
have been met; and
18.3.
if so, this is an appropriate case for this court
to exercise its discretion to rescind an earlier order.
[19]
In my view, the question whether the provisional
order of Lamont J can be rescinded at this stage and whether this is
an appropriate
case for this court to exercise its discretion to
rescind are intertwined. I propose therefore to deal with the
requirements
for rescission and, in the course of that discussion,
deal with the issue.
[20]
This judgment does not address other issues, such
as the alleged late filing of the Body Corporate’s answering
affidavit and
arguments about whether the rule
nisi
had to be extended in terms when there were
postponements or rolling over of the matter. This, in
circumstances where Mr Sekgala
indicated in oral argument that he no
longer relies on those points.
RULE 42(1)(A)
Introduction
[21] Rule 42(1) of the
Uniform Rules of Court provides:
“
The
court
may
,
in addition to any other powers it may have, mero motu or upon the
application of any party affected, rescind or vary:
(a) an order or judgment
erroneously sought or erroneously granted in the absence of any party
affected thereby”.
[22]
The
purpose of Rule 42(1)(a) is to “
to
correct expeditiously an obviously wrong judgment or order
”
,
and the court does not have a discretion to set aside an order in
terms of the sub rule where one of the jurisdictional facts
does not
exist.
[3]
[23]
An application for rescission under 42(1)(a) must
thus satisfy four requirements.
23.1.
First
, the
applicant must be a party affected by the judgment;
23.2.
Second
, the
judgment must have been granted in the absence of such a party;
23.3.
Third
, the
judgment must have been erroneously sought or granted; and
23.4.
Fourth
, if the
above three criteria are met, the applicant must also satisfy the
court that it should exercise its discretion in favour
of granting
the rescission.
The first requirement:
affected party
[24] Mr Sekgala is
obviously a party affected by the judgment. The ultimate
consequence of the granting of that order was
that the jurisdictional
prerequisite of the existence of a provisional order could be met
when Makume J considered whether Mr Sekgala’s
estate could be
sequestrated finally.
[25] Mr Du Plooy for the
Body Corporate made the submission that Mr Sekgala’s standing
to bring the application must be brought
into question, since a final
sequestration order has been made. Mr Sekgala submitted in
response that the rescission application
is not in the nature of an
application that he is precluded from bringing whilst his estate has
been finally sequestrated.
[26]
Standing
is a threshold requirement. It is “
divorced
from the substance of the case
”
and
is to “
be
decided in limine, before the merits are considered
”
.
[4]
Under
the common law, a person has legal standing to institute proceedings
if they have a “
direct
and substantial interest
”
in
the right that is the subject matter of the litigation that the
outcome of the judgment could prejudice.
[5]
[27]
In
United Watch &
Diamond Co (Pty) Ltd v Disa Hotels Ltd
,
Corbett J (as he was then) set out the test for determining legal
standing in the context of a rescission application:
“
In
my opinion, an applicant for an order setting aside or varying a
judgment or order of Court must show, in order to establish
locus
standi, that he has an interest in the subject-matter of the judgment
or order sufficiently direct and substantial to have
entitled him to
intervene in the original application upon which the judgment was
given or order granted”
.
[6]
[28]
Mr Sekgala satistfies this requirement. In
any event, the objection to standing was not properly raised in the
founding affidavit.
Second requirement:
absence
[29] Mr Sekgala was not
absent from the proceedings that led to the order of 8 September
2020. Indeed, on his own version
Mr Sekgala made submissions to
Lamont J, arguing that a final order could not be granted. It
would appear that the very submissions
made by Mr Sekgala motivated
Lamont J to issue a provisional order once more, and providing for a
return date by which Mr Sekgala
was to show cause why the order was
not to be made final.
[30] The requirement of
absence was not met.
[31]
Mr
Sekgala submitted that it was. For this proposition, he relied
on the judgment in
Katritsis
v De Maecado:
[7]
“
'Moreover, not
only is he who does not attend at all on the day fixed to be
accounted a dallier and defaulter, but also, he who
does indeed
attend, but does not take in hand the business for the taking in hand
of which the day had been appointed. For instance,
a plaintiff
appears and makes no claim: or a defendant does not challenge the
plaintiff's claim when he should do so. He who though
present makes
no defence is surely reckoned in the position of one who is not
there; and he who when called upon does not plead
is deemed to have
been futile and is expressly classed as contumacious."
[32] The extract relied
upon does not assist. Mr Sekgala did present opposition.
It was his very opposition that resulted
in the order made. On
Mr Sekgala’s own version, he opposed the granting of a final
sequestration order because he had
not been called to show cause why
such an order ought not to be granted, and therefore the learned
judge granted the order that
he did. Whether the order actually
made was granted erroneously is a separate question, which is dealt
with under the third
requirement. But the one thing that Mr
Sekgala cannot say, on his own version, is that he was “
absent”
in the sense of not putting up a defence.
[33] I do not find
persuasive the argument that Mr Sekgala had not been given an
opportunity to put up a position regarding the
granting of a
provisional order and a further rule
nisi
. Lamont J
granted “
lesser”
, alternative relief so as to
ensure that the interests of justice were served. He carefully
balanced the rights and interests
of Mr Sekgala and the Body
Corporate in that he did not grant final relief, but ensured that an
opportunity was given for the proper
ventilation of the issues, in
light of the submissions that had been made to him. At worst,
the first paragraph of Lamont
J’s order was superfluous (the
order of Spilg J having already placed Mr Sekgala’s estate in
the hands of the Master).
Mr Sekgala cannot be heard to say
that he had not been given an opportunity to explain why a
provisional sequestration order was
not to be granted.
[34] I point out that,
since the requirement of absence is not met, there is no need to deal
with the remaining requirements.
I do so, however, in
circumstances where Mr Sekgala as an unrepresented applicant deserves
to understand the court’s position
on all aspects of the case.
Third requirement:
order erroneously sought and granted
[35]
The meaning of a rescindable error under rule
42(1)(a) has been explained in several judgments.
35.1.
In
Freedom
Stationery (Pty) Ltd v Hassam
,
[8]
the
Supreme Court of Appeal held that:
“
when
an affected party invokes Rule 42(1)(a), the question is whether
the party that obtained the order was procedurally entitled
thereto.
If so, the order could not be said to have been erroneously granted
in the absence of the affected party.
An applicant or plaintiff
would be procedurally entitled to an order when all affected parties
were adequately notified of the
relief that may be granted in their
absence. … [T]the failure of an affected litigant
to take steps to protect
his interests by joining the fray ought to
count against him
.”
[9]
35.2.
Further,
in
Van
Heerden v Bronkhorst
,
[10]
the
Supreme Court of Appeal held
that
the error must be unknown to the judge:
“
Generally,
a judgment is erroneously granted if there existed at the time of its
issue a fact of which the court was unaware, which
would have
precluded the granting of the judgment and which would have induced
the court, if aware of it, not to grant the judgment
.”
[11]
35.3.
And in
Zuma
v Secretary of the Judicial Commission of Inquiry into Allegations of
State Capture
,
[12]
the
Constitutional Court confirmed that an applicant seeking to
demonstrate that an order was erroneously sought or granted must:
“
show
that the judgment against which they seek a rescission was
erroneously granted because ‘there existed at the time of
its
issue a fact of which the Judge was unaware, which would have
precluded the granting of the judgment and which would have induced
the Judge, if aware of it, not to grant the judgment
”
.
[13]
[36]
In the circumstances, there are four elements to a
rescindable error:
36.1.
First
, the error
must be procedural in nature;
36.2.
Second,
the court
must have been unaware of the procedural error at the time judgment
was granted (in other words, an applicant for rescission
may not rely
on a fact known to the presiding officer);
36.3.
Third
, the error
must be such that had the court been aware of the error, the court
would not have the granted the judgment; and
36.4.
Fourth
, even
if there is a procedural error, the court must consider whether the
applicant for rescission took adequate steps to protect
its
interests, notwithstanding the error.
[37]
Mr
Sekgala submits that the order was erroneously granted, because it
was not legally competent for the court to have made it.
[14]
In essence, this submission turns on the interpretation Mr Sekgala
affords to
section 11(1)
of the
Insolvency Act. It
provides
that:
“
If the court
sequestrates the estate of a debtor provisionally it must
simultaneously grant a rule nisi calling upon the debtor
upon a day
mentioned in the rule to appear and to show cause why his or her
estate should not be sequestrated finally.”
[38] Simply put, Mr
Sekgala says that the order of Spilg J already sequestrated his
estate, but called upon him to show why a provisional
order of
sequestration could not be made. For that reason, he submits,
when the matter came before Lamont J he was not in
a position to make
an order that could competently be made under
section 11(1).
[39]
Mr
Sekgala’s submissions place form over substance. In
accordance with the trite principles set out in
Natal
Joint Municipal Pension Fund v
Endumeni
Municipality
:
[15]
“
Interpretation
is
the process of attributing meaning to the words used in a document,
be it legislation, some other statutory instrument, or contract,
having regard to the context provided by reading the particular
provision or provisions
in
the light of the document as a whole and the circumstances attendant
upon its coming into existence
.
Whatever the nature of the document, consideration must be given to
the language used in the light of the ordinary rules of grammar
and
syntax; the context in which the provision appears;
the
apparent purpose to which it is directed and the material known to
those responsible for its production
.
Where more than one meaning is possible each possibility must be
weighed in the light of all these factors. The process is objective,
not subjective. A sensible meaning is to be preferred to one that
leads to insensible or business-like results or undermines the
apparent purpose of the document. Judges must be alert to, and guard
against, the temptation to substitute what they regard as
reasonable,
sensible or business-like for the words actually used. To do so in
regard to a statute or statutory instrument is to
cross the divide
between interpretation and legislation; in a contractual context it
is to make a contract for the parties other
than the one they in fact
made. The “inevitable point of departure is the language of the
provision itself”,
read
in context and having regard to the purpose of the provision and the
background to the preparation and production of the document
.
”
[16]
[40] The apparent purpose
of
section 11(1)
is to provide an opportunity to a respondent to make
submissions why a final sequestration order is not to be made.
The order
of Spilg J was intended to provide Mr Sekgala with that
opportunity, although the error in the framing of the notice of
motion
carried forward into the order made. When Lamont J made
his order, he corrected the obvious error, this time providing for
an
opportunity to show cause why a final order could not be made.
It would be untenable to allow Mr Sekgala to cast Lamont
J’s
effort to ensure compliance with the purpose of
section 11(1)
of the
Insolvency Act to
suggest that the order made was not competent.
It is not obvious by any means that Lamont J was not empowered to
grant a
further opportunity to Mr Sekgala to state his case by
re-affirming the provisional sequestration and offering an
opportunity to
Mr Sekgala to show cause as contemplated in the
order. Importantly, Mr Sekgala appears to have overlooked the
fact that,
in terms of
section 9(5)
of the
Insolvency Act, the
court
hearing an application for sequestration of an estate may “
make
such other order in the matter as in the circumstances appear to be
just”
.
[41] In any event, Mr
Sekgala cannot make out a case that Lamont J would not have made the
order had he been aware of some fact
unknown to him when in fact he
did. Quite the opposite: the “
facts”
on
which Mr Sekgala relies were made in submission to Lamont J.
[42] The requirement that
the order had been erroneously sought and granted is therefore
equally not met. The application
based in Uniform
Rule 42(1)(a)
falls to be dismissed on this basis, in addition to the fact that the
order had not been granted in the absence of Mr Sekgala.
Fourth requirement:
discretion to be exercised
[43]
Rule
42(1)(a)
postulates that a court “
may
”
—
i.e.,
not “
must
”
—
rescind
or vary an order if the applicant meets the other requirements.
The Constitutional Court has explained that
Rule 42(1)(a)
is merely
an empowering provision that affords the court a discretion.
[17]
It
does not compel the court to grant the rescission if all the
jurisdictional requirements are met. The same observations
apply in respect of
section 149(2)
of the
Insolvency Act.
[44
]
In the absence of compliance with the requirements
of absence and an order erroneously sought or granted, this court is
not in a
position under Uniform
Rule 42(1)(a)
to exercise a
discretion in favour of granting the order for rescission.
[45]
Moreover, even if I am wrong in my assessment on
both the questions of absence and whether the order was erroneously
sought or granted,
it would appear to me that the facts in this case
would in any event not have provided a basis for the exercise of my
discretion.
[46]
In
Chetty
,
[18]
it was
held that the discretion is “
influenced
by considerations of fairness and justice, having regard to all the
facts and circumstances of the particular case
”
.
[19]
[47]
The issue is this: the order sought to be
rescinded was already issued on 8 September 2020. It took Mr
Sekgala more than eight
months to issue this application, in
circumstances where he was well aware of it. Indeed, in
submission before me, he asserted
that he received the order via
e-mail and that he “
immediately”
formed the view that the order ought not to have
been granted. He did nothing at the time.
[48]
And it gets worse for Mr Sekgala, because the
order that he seeks to rescind in fact lapsed in November 2020.
That required
of the Body Corporate to bring an application to revive
the lapsed order. For that order to be revived, Makume J had to
consider
whether it was appropriate for it to be revived. He
did so consider, and formed the conclusion that the order was to be
revived.
That order was also sought to be rescinded, and once
more the issue was considered. Finally, when the final
sequestration
order was granted, the issue was considered once more:
Makume J had to satisfy himself that a provisional order had been
made as
a jurisdictional prerequisite for the granting of the final
order. He had to do so once more when he considered the application
for leave to appeal, which was dismissed. The upshot of all of this
is that the question of the propriety of Lamont J’s order
has
been considered several times – implicitly at the very least.
[49]
Mr Sekgala’s estate has been finally
sequestrated. What he seeks to achieve through this rescission
application is to
obtain a finding that a provisional sequestration
order had not validly been granted and to rely on that as a basis to
contend
that the final order is a nullity. Even if he could
satisfy the requirements of Uniform
Rule 42(1)(a)
– which he
did not – I would be loath to exercise my discretion in favour
of the granting of an order for rescission.
The papers
available to me paint a picture of someone who has, at every turn,
taken technical points and who has shunned the opportunity
properly
and in substance to show why he is not indebted to the Body Corporate
and others who have come to explain Mr Sekgala’s
indebtedness
to them. That approach has marked the proceedings before this
court and in the Magistrate’s Court.
The Supreme Court of
Appeal and the Constitutional Court have, in different contexts,
warned against parties employing a “
Stalingrad”
approach. I cannot tolerate such an approach
in this court, even if the remaining requirements were met.
[50] In this context, I
record that Mr Sekgala made reference to the constitutional right to
access to court. Section 34 of
the Constitution of the Republic
of South Africa Act 108 of 1996 (Constitution) provides in the
relevant part that “
Everyone has the right to have any
dispute that can be resolved by the application of law decided in a
fair public hearing before
a court”
. With that right
comes the responsibility to accept the authority of the courts, and
to make use of the opportunity afforded
to put up a proper defence.
The right encompasses the responsibility not to abuse the court
process by taking several technical
points and to continue to clog
the already overburdened court system with a myriad of rescission
applications and applications
for leave to appeal on grounds that
simply cannot be sustained. In the present matter, countless
court hours have been taken
up to advance the application launched in
2017 to finality. Now Mr Sekgala wants another bite at the
cherry, and to unravel
the consequence of various orders and
judgments. It would be inimical to the section 34 right to
allow him to do so, for
it would lead to yet further litigation that,
given the facts available to this court, would probably result in the
same outcome.
To put it simply: it is not Mr Sekgala alone that
enjoys the section 34 right; the Body Corporate is also the
beneficiary of that
right. The dispute it has raised has been
resolved by the application of law decided in the course of a process
where Mr
Sekgala had been given various opportunities to state his
case. There would be no basis for this court to rescind the
Lamont
J order, and thereby undo all of that.
[51]
That said, I also consider the matter under the
common law, in circumstances where Mr Sekgala placed reliance on the
common law
in addition to his reliance on Uniform Rule 42(1)(a).
THE COMMON LAW
[52]
In
terms of the common law, a court may rescind an order when judgment
is granted by default if good cause is shown. The court’s
discretion must be exercised after proper consideration of all
relevant circumstances. This generally entails that the
applicant
must (i) provide a reasonable and acceptable explanation
for default which must show the absence of willful or negligent
default;
(ii) show that the application is
bona
fide
and
not merely to frustrate the party on the other side; and (iii) shows
that on the merits he has a
bona
fide
defence
which
prima
facie
carries
prospects of success.
[20]
[53]
The
Constitutional Court has recently held that the first and third
requirements must be met before a court may grant rescission
under
the common law.
[21]
[54] In the present case,
as discussed, there was not default: Mr Sekgala was present in court
and he made submissions. This
indicates that the common law
cannot be relied on to make out a case for rescission.
Moreover, it is hard to come to the
conclusion that the present
application is
bona fide
. Mr Sekgala knew of the order
for a long time and did nothing about it; only when all other efforts
in pursuit of his Stalingrad
approach to the litigation had come to
nought did he approach this court for the rescission of Lamont J’s
order. By
then several horses had bolted. If Mr Sekgala’s
motives were
bona fide
, he would have acted sooner and not
shown an apathetic attitude. The facts suggest that Mr Sekgala
is simply intent on frustrating
the efforts of the Body Corporate and
other creditors to obtain their fair share of Mr Sekgala’s
estate.
[55]
The
real issue is that there is not a
bone
fide
defence
that is raised. The facts showed a great level of indebtedness
on the part of Mr Sekgala, one that was ever-growing
as he pursued
his efforts to avoid provisional and final sequestration of his
estate. The high-water mark of his defence
was that he did not
owe levies. But why did he not owe levies? Did he pay them, on
his version? Or was he somehow excused
from paying them? If
so, on what basis? Mr Sekgala never took the opportunity to put
up a defence that made sense.
As Makume J recorded in the
judgment in the application for leave to appeal against the order
finally sequestrating Mr Sekgala’s
estate: “
The
Applicant has failed to deal with the averments placed before court
as regards his indebtedness to the Respondent, Nedbank,
Wilbar Woods,
Body Corporate, King fisher Close Body Corporate as well as Chelsea
Body Corporate. The total debts amounts
to more than R8
million”
and
“
The
fact that he has managed to have the default judgments granted
against him rescinded did not wipe out the debts”.
[22]
[56] In all of these
circumstances, I find that there is no basis for rescission made out
under the common law.
COSTS
[57] This brings me to
the question of costs. It is not an easy one to deal with: I
indicated that Mr Sekgala apparently enjoyed
the necessary standing
to bring the application. However, since his estate has been
finally sequestrated, it could create
undesirable consequences to
make a costs order against Mr Sekgala. I accept the submissions
made on behalf of the Body Corporate
that it would be prudent to
order that the costs be costs in the sequestration.
ORDER
[58]
In the circumstances, I make the following order:
58.1.
The application for the rescission of the order of
Lamont J of 8 September 2020 under case number 8951/2017 is
dismissed.
58.2.
The costs of the application shall be costs in the
sequestration.
M Engelbrecht
ACTING JUDGE OF THE
HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically
by circulation to the
Parties/their legal representatives by email and by uploading it to
the electronic file of this matter on
CaseLines. The date for
hand-down is deemed to be
on 13
April
2023.
Heard
on : 11 April 2023
Delivered:
13 April 2023
Appearances:
For
the Applicant:
In
person
For
the Respondent:
A
Du Ploy
instructed
by
Richards
Attorneys
[1]
Emphasis
supplied.
[2]
Emphasis
supplied.
[3]
Van der
Merwe v Bonaero Park (Edms) Bpk
1998
(1) SA 697
(T) at 702H.
[4]
Giant
Concerts CC v Rinaldo Investments
2013
(3) BCLR 251
(CC) para 32.
[5]
Four
Wheel Drive Accessory Distributors CC v Ratton NO
2019
(3) SA 451
(SCA) para 7;
United
Watch and Diamon Co (Pty) Ltd v Disa Hotels Ltd
1972
(4) SA 409
(C) at 415B to 415-H.
[6]
1972 (4) SA 409
(C) at 415A-B.
[7]
1966
(1) SA 613
(A) at 618D-E.
[8]
2019 (4) SA 459 (SCA).
[9]
Ibid para 25.
[10]
[2020] ZASCA 147
para 10.
[11]
See also
Daniel
v President of the Republic of South Africa
2013
(11) BCLR 1241
(CC) para 6:
“
The
applicant is required to show that, but for the error he relies on,
this Court could not have granted the impugned order.
In other
words, the error must be something this Court was not aware of at
the time the order was made and which would have precluded
the
granting of the order in question, had the Court been aware of it.”
[12]
2021 JDR 2069 (CC).
[13]
Zuma
,
supra, para 62, citing with approval
Nyingwa
v Moolman NO
1993
(2) SA 508
(Tk) at 510D-G.
[14]
Reliance
is placed on
Athmaram
v Singh
1989
(3) SA 953
(D) at 956D and 956I and
Promedia
Drukkers & Uitgewers (Edms) Bpk v Kaimowitz & Others
1996
(4) SA 411
(C) at 417G-H.
[15]
2012
(4) SA 593 (SCA).
[16]
At
para 18. Emphasis supplied.
[17]
Zuma
,
supra, para 53.
[18]
Chetty
v Law Society, Transvaal
1985
(2) SA 756 (A).
[19]
Ibid at 761D-E.
[20]
Colyn v
Tiger Food Industries Ltd
2003
(6) SA 1
(SCA) para 11;
Chetty
v Law Society, Transvaal
1985
(2) SA 756
(A) at 765A-E.
[21]
Zuma
,
supra, para 71;
Government
of the Republic of Zimbabwe v Fick
2013
(5) SA 325
(CC) para 85.
[22]
At
paras 14 and 15.
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