Case Law[2023] ZAGPJHC 433South Africa
Vico Mining (Pty) Ltd v Advance Industrial Solutions (Pty) Ltd (2021/20060) [2023] ZAGPJHC 433 (8 May 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
8 May 2023
Headnotes
[12] It is a well-established that an applicant for any relief in terms of Rule 27 has the burden of actually proving, as opposed to merely alleging, the good cause that is stated in Rule 27(1) as a jurisdictional prerequisite to the exercise of the Court’s discretion. The Applicant for any such relief must, at least, furnish an explanation of his default sufficiently full to enable the Court to understand how it really came about and to assess his conduct and the motives. Where there has been long delay, the Court should require the party in default to satisfy the Court the relief sought should be granted.”
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Vico Mining (Pty) Ltd v Advance Industrial Solutions (Pty) Ltd (2021/20060) [2023] ZAGPJHC 433 (8 May 2023)
Vico Mining (Pty) Ltd v Advance Industrial Solutions (Pty) Ltd (2021/20060) [2023] ZAGPJHC 433 (8 May 2023)
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sino date 8 May 2023
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO: 2021/20060
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
NOT
REVISED
In
the matter between:
VICO
MINING (PTY) LTD
(Registration
Number: […]
Applicant
And
ADVANCE
INDUSTRIAL SOLUTIONS (PTY) LTD
(Registration
Number: […]
Respondent
In
Re:
ADVANCE
INDUSTRIAL SOLUTIONS (PTY) LTD
(Registration
Number: […])
Plaintiff
And
VICO
MINING (PTY) LTD
(Registration
Number: [...])
Defendant
Neutral
citation:
ADVANCE INDUSTRIAL
SOLUTIONS (PTY) LTD v VICO MINING (PTY) LTD
(Case
No: 2021/20060) [2023] ZAPGPJHC 433 (8 May 2023)
JUDGMENT
DREYER
AJ
:
1.
The Applicant seeks an order
inter
alia
:
1.1
That condonation be granted to it for the late filing of its Plea
under the abovementioned case number.
1.2
That the Notice of Bar served on its attorneys of record on 7 June
2021 be uplifted and removed.
2.
A brief chronological background leading up to the present
application is as follows:
2.1
On 21 April 2021 the Respondent instituted action against the
Applicant seeking payment
inter alia
in the amounts of
R9 569 476.88 and R640 894.08.
2.2
The Respondent on 21 April 2021 also filed a Notice in terms of Rule
41A(2)(a) of the Uniform Rules of Court opposing the referral
of the
matter to mediation.
2.3
On 6 May 2021 the Applicant served a Notice of Intention to Defend as
well as a Notice of Irregular Step in terms of Rule 30
(“the
Applicant’s Rule 30 notice”). The Applicant’s Rule
30 notice states that the Respondent failed to
serve and file a
Notice in terms of Rule 41A(2)(a) with its Summons on the Applicant,
and further called upon the Respondent to
remove the irregular step
within ten (10) days.
2.4
In response to the Applicant’s Rule 30 notice, the Respondent
also served a Notice of Irregular Step in terms of Rule
30 on 19 May
2021 (“the Respondent’s Rule 30 notice”). The
Respondent’s Rule 30 notice states that the
Applicant’s
Rule 30 notice constitutes and irregular step in that the Sheriff
served the Respondent’s Rule 41A(2)(a)
notice on the Applicant
at its registered address on 24 April 2021, with its Combined
Summons. The Respondent’s Rule 30 notice
further afforded the
Applicant to remove the cause of complaint within ten (10) days of
delivery of the said notice by withdrawing
its Rule 30 notice.
2.5
On 21 May 2021 the Applicant’s attorney of record addressed a
letter to the Respondent’s attorney of record advising
that
their office did not have access to CaseLines, that the Applicant
only received the Summons and further requesting that the
Respondent
withdraw its Rule 30 notice and respond to the Applicant’s Rule
30 notice.
2.6
On 26 May 2021 the Respondent’s attorney of record in response
to the aforesaid letter addressed an email to the Applicant’s
attorney of record advising that they have been added to CaseLines
and should now have access to the Rule 41A(2)(a) notice “
which
was, in any event, served on your client (together with the summons)
on 24 April 2021, in accordance with the sheriff’s
return of
service.”
2.7
On 7 June 2021 the Respondent’s attorney of record served a
Notice of Bar on the Applicant’s attorneys of record,
without
serving a formal response to the Applicant’s Rule 30 notice.
2.8
The Respondent’s attorney of record proceeded on 15 June 2021
to serve a Notice of Intention to apply for Default Judgment
in terms
of Rule 31(5) (“the Default Judgment application”).
2.9
On 18 June 2021 the Applicant’s attorney of record served a
Plea.
2.10
The present application was then served on the Respondent’s
attorney of record on 22 June 2021.
3.
The Notice of Bar called upon the Applicant to deliver its Plea
within five (5) of the Notice being delivered. The Applicant
therefore had to deliver its Plea on or before 14 June 2021. The
Applicant however delivered its Plea three (3) days late, as 16
June
2021 was a public holiday.
4.
Rule 27 provides for the extension or abridging of time or removal of
bar, and for condonation of non-compliance with the Rules.
5.
Good cause is a requirement for any application in terms of Rule 27.
6.
The Applicant’s application is supported by an affidavit
deposed to by its director. The reasons for the late filing of
the
Plea appears from paragraphs 6.2 to 6.5 of the Founding Affidavit as
follows:
6.1
The Applicant’s attorney of record briefed Counsel to attend to
the drafting of the Plea on 8 June 2023.
6.2
In order to follow up the instruction, the Applicant’s attorney
of record diarised the matter in an automatic and computerised
legal
system, Practice Panther. The system brings up a reminder on the
screen and also sends an email to ensure that the reminder
comes to
one’s attention.
6.3
It was only after a conversation with Counsel on 15 June 2023 that
the Applicant’s attorney of record realised that she
had typed
the date incorrectly as “06/07/2021”, being 6 July 2022,
instead of “07/06/2021”. The legal system
accordingly
automatically calculated that a reminder of the drafting of the Plea
would only be sent on 8 July 2021. I point out
that the Founding
Affidavit incorrectly refers to the date of the conversation as being
on 9 June 2021. This was however rectified
and explained in a
Confirmatory Affidavit deposed to by the Applicant’s attorney
of record, attached to the Replying Affidavit.
6.4
On realising the oversight, the Applicant’s attorney of record
immediately tried to contact the Respondent’s attorney
of
record but was unable to speak to the attorney as she was informed by
the Receptionist that all of the attorneys were in a meeting.
The
Applicant’s attorney of record requested that her call be
returned as matter of urgency.
6.5
Despite the request, the call of the Applicant’s attorney of
record was not returned. Instead, the Respondent proceeded
to serve
the Default Judgment application.
6.6
A Confirmatory Affidavit by the Applicant’s attorney of record
is attached to the Founding Affidavit.
7.
The Answering Affidavit is in response to the incorrect date of 9
June 2021 contained in the Founding Affidavit. The new evidence
contained in the Replying Affidavit, being the correct date of 15
June 2021, is not dealt with by the Respondent. Counsel for the
Respondent does however deal with it in the Respondent’s Heads
of Argument, seeking to argue that the Applicant’s attorney
seeks to do an about turn in reply and is a change of heart without
any substantiation or proof. I am not in agreement with this.
8.
In
Standard General Insurance Co Ltd
v Eversafe (Pty) Ltd and Others
2000
(3) SA 87
(W) it was held:
[12]
It is a well-established that an applicant for any relief in terms of
Rule 27 has the burden of actually proving, as
opposed to merely
alleging, the good cause that is stated in Rule 27(1) as a
jurisdictional prerequisite to the exercise of the
Court’s
discretion. The Applicant for any such relief must, at least, furnish
an explanation of his default sufficiently
full to enable the Court
to understand how it really came about and to assess his conduct and
the motives. Where there has been
long delay, the Court should
require the party in default to satisfy the Court the relief sought
should be granted.”
9.
The Constitutional Court in
Grootboom
v National Prosecuting Authority and Another
2014 (2) SA 68
(CC) held that the standard for considering an
application for condonation is the interests of justice. The concept
‘interests
of justice’ is so elastic that it is not
capable of precise definition. It includes the nature of the relief
sought, the
extent and cause of the delay, the effect of the delay on
the administration of justice and other litigants, the reasonableness
of the explanation for the delay, the importance of the issue to be
raised and the prospect of success. The particular circumstances
of
each case will determine which of these factors are relevant. It was
further held:
[23[
It is now trite that condonation cannot be had for the mere asking. A
party seeking condonation must make out a case
entitling to the
court’s indulgence. It must show sufficient cause. This
requires a party to give a full explanation for
the non-compliance
with the rules or court’s directions. Of great significance,
the explanation must be reasonable enough
to excuse the default.”
10.
In
Bertie van Zyl (Pty) Ltd and
Another v Minister for Safety and Security and Others
2010 (2) SA 181
(CC) the Constitutional Court held that in
determining whether condonation could be granted, lateness was not
the only consideration.
The test for condonation was whether it was
in the interests of justice to grant condonation.
11.
A second requirement for the favourable exercise of the Court’s
discretion is that an applicant should satisfy the Court
on oath that
he has a bona fide defence (See
Dalhouzie
v Bruwer
1970 (4) SA 566
(C);
Ingosstrakh v Global Aviation
Investments (Pty) Ltd and Others
2021 (6) SA 352
(SCA)).
12.
In this regard it has been held that the minimum that the applicant
must show is that his defence is not patently unfounded
and that it
is based upon facts which must be set out in outline, and which, if
proved, constitutes a defence (See
Du
Plooy v Anwes Motors (Edms) Bpk
1983
(4) SA 212
(O)).
13.
The Applicant set out its defence in paragraphs 7.2 to 7.11 of the
Founding Affidavit. The Applicant avers that the amounts
claimed by
the Respondent is not yet due and payable. The Applicant further
states that coal was uplifted which the Respondent
does not reflect
in its reconciliation attached to the Summons and that the quantities
uplifted by the Respondent are the subject
matter of an arbitration.
The Applicant also states that the amounts claimed to be uplifted are
less than the actual quantities
that were uplifted.
14.
It is not for this Court to determine the validity of the defence
raised by the Applicant. This will be dealt with by the Court
adjudicating upon the action.
15.
I am satisfied that the Applicant’s explanation is reasonable
enough to excuse its default and therefore that it has shown
good
cause. It was due to a bona fide oversight on the part of the
Applicant’s attorney. Immediately upon realising the oversight
on 15 June 2021, the Applicant’s attorney of record contacted
the Respondent’s attorney of record and having been informed
that all of the attorneys were busy in a meeting, requested that her
call be returned as a matter of urgency. The Respondent’s
attorney of record however did not return the call of the Applicant’s
attorney. This is not responded to in the Answering
Affidavit and
therefore remains undisputed.
16.
There was also not a long delay. The Applicant’s Plea was due
on 14 June 2021 and was served on 18 June 2021, three (3)
days late.
The present application was served on 22 June 2021, two (2) days
after the Applicant served its Plea.
17.
I am also satisfied that the Applicant has a bona fide defence which
is not patently unfounded.
18.
Having found that the Applicant has shown good cause, I now turn to
the question of prejudice. The Applicant in its Founding
Affidavit
avers that no prejudice will be suffered by the Respondent should the
relief sought be granted. Should the relief sought
however be denied,
the issues between the parties will not be canvassed. The Respondent
in its Answering Affidavit does not respond
to this averment of the
Applicant and therefor does not dispute same, and further does not
set out what prejudice it will suffer
should the relief sought be
granted. It does bear mention that a period of approximately two (2)
years has lapsed since the action
was instituted on 21 April 2021 and
the hearing of the present application on 24 April 2023. This delay
could have been avoided,
specifically by the Respondent. The
uncooperative way in which the Respondent is conducting the
litigation, as well as the uncollegial
behaviour of the Respondent’s
attorney of record have contributed to this delay.
19.
In
Smith, NO v Brummer, NO and
Another
1954 (3) SA 352
(O) the
Court held in an application for the removal of bar the Court has a
wide discretion which it will exercise in accordance
with the
circumstances of each case. The tendency of the Court is to grant
such an application where:
(a)
The applicant has given a reasonable explanation of his delay;
(b)
The application is bona fide and not made with the object of delaying
the opposite party’s claim;
(c)
There has not been a reckless or intentional disregard of the Rules
of Court;
(d)
The applicant’s action is clearly not ill-founded and
(e)
Any prejudice caused to the opposite party could be compensated for
by an appropriate order as to costs.
20.
Having regard to the circumstances of the present matter, in
consideration of the circumstances set out in
Smith,
NO v Brummer, NO
, I am of the view
that the removal of the bar should be granted.
21.
I am also of the view that it would be in the interests of justice to
grant the application.
22.
With regards to costs, the Applicant seeks an order that the costs of
the application be paid by it, save in in the event of
opposition in
which case the costs be paid by the Respondent. During the hearing of
the matter Counsel for the Applicant, Mr Van
Rensburg, submitted that
he would not be in disagreement if the Applicant is ordered to pay
costs of the application.
23.
The costs order sought by the Applicant is in accordance with the
general rule that the applicant should pay all the wasted
costs due
to the application, as the applicant seeks an indulgence. This
indulgence includes any costs of reasonable (not vexatious
or
frivolous) opposition.
24.
I therefore make the following order:
24.1
The bar is uplifted.
24.2
Condonation is granted to the Applicant for the late filing of its
Plea.
24.3
The costs of the application are to be paid by the Applicant.
E
DREYER
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
LOCAL DIVISION, JOHANNESBURG
This
judgment was handed down electronically by circulation to the
parties’ legal representatives by email and by being uploaded
to CaseLines. The date and time for hand down is deemed to be 8 May
2023.
Appearances:
Appearance
for Applicant:
Adv.
SJ Van Rensburg SC
Instructed
by:
JC
Scheepers Attorneys
C/O
Hannelie Swart Attorneys
Appearance
for Respondent:
Adv.
M Cooke
Instructed
by
Prinsloo
Inc.
Date
of hearing: 24 April 2023
Date
of Judgment: 8 May 2023
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