Case Law[2023] ZAGPJHC 752South Africa
N.L.R v M.I.R (16610/2021) [2023] ZAGPJHC 752 (30 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
30 June 2023
Headnotes
with the […]with account number: […]and branch code: […] the amount of R200 000.00, free of any deductions and bank charges, with the aforementioned amount to be available and accessible on the date and time referred to herein (as per paragraph 6.1.2 of the Rule 43 court order);
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## N.L.R v M.I.R (16610/2021) [2023] ZAGPJHC 752 (30 June 2023)
N.L.R v M.I.R (16610/2021) [2023] ZAGPJHC 752 (30 June 2023)
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sino date 30 June 2023
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA,
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number: 16610/2021
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
NOT REVISED
30.06.23
In the matter between:
R,
N L
Applicant
and
R,
M I
Respondent
JUDGMENT
Mdalana-Mayisela J
Introduction
[1] The applicant seeks
an order in terms of section 18(1) of the Superior Courts Act 10 of
2013 (“the Act”), rendering
operative and executable
certain provisions of my order granted on 26 August 2022 (“the
rescission order”), pending
the finalisation of the appeal. In
terms of that order the rescission application brought by the
respondent was dismissed, and
the respondent was found to be in
contempt of the rule 43 order granted by Fourie AJ on 3 August 2021
(“rule 43 order”).
[2] The section 18(1)
application is opposed by the respondent on various grounds,
including that the immediate execution of the
rule 43 order cannot be
authorised because there is an existing order granted by Crutchfield
J on 24 December 2021 suspending the
execution of the rule 43 order
pending the final determination of the rescission application and the
application for setting aside
writs of execution (“Crutchfield
J’s order”). Further, the respondent contends that the
immediate execution of
the contempt order cannot be authorised
because the rescission order has been suspended on 27 August 2022,
when leave to appeal
application was delivered.
Background facts
[3] The detailed
background facts are contained in the rescission judgment and I do
intend to repeat same here. The parties married
on 25 March 2006.
They are separated pending the finalisation of their divorce action.
There are three minor children born of the
marriage between the
parties.
[4] The respondent
brought an application before this court, rescinding the rule 43
order on the basis that it was obtained as a
result of fraudulent
misrepresentations made by the applicant to the court. The applicant
opposed the rescission application and
filed a counter-application
for the order declaring the respondent to be in contempt of the rule
43 order, and compelling him to
make good of his contemptuous
conduct, failing which he ought to be committed to prison for a
certain period.
[5] On 26 August 2022
this court granted the order in the following terms:
1
The
application for rescission is dismissed with costs.
2
The
applicant is declared to be in contempt of rule 43 court order
granted under the above case number by Fourie AJ on 3 August
2021.
3
The
applicant is committed to imprisonment at a correctional facility to
be designated by the court for a period not less than 60
calendar
days.
4
The
operation and execution of the order in paragraph 3 supra is
suspended for a period of 12 months from the date of this order
on
the conditions set out hereinbelow, namely that the applicant:
4.1
shall:
4.1.1
by
no later than 15 September 2022 pay into the:
4.1.1.1
trust
account of Steve Merchak Attorney, held with the […]with
account number: […]and branch code: […] the
amount of
R200 000.00
, free of any deductions and
bank charges, with the aforementioned amount to be available and
accessible on the date and time referred
to herein (as per paragraph
6.1.2 of the Rule 43 court order);
4.1.1.2
account
of the respondent, held with the […]with account number:
[…]and branch code: […]the amount of:
4.1.1.2.1.
R200 000.00
, free of any deductions and
bank charges, with the aforementioned amount to be available and
accessible on the date and time referred
to herein (as per paragraph
5.1.2A of the Rule 43 court order);
4.1.1.2.2.
R57 350.00
(being the balance due of the
monthly maintenance) free of any deductions and bank charges, with
the aforementioned amount to be
available and accessible on the date
and time referred to herein (as per paragraph 6.1.1 of the Rule 43
court order);
4.1.2
timeously pay to the:
4.1.2.1
respondent, the amount of:
4.1.2.1.1.
R75 000.00 (as per paragraph 6.1.1 of the Rule 43 court
order);
4.1.2.1.2.
R100 000.00 (as per paragraph 5.1.2A of the Rule 43 court
order);
4.1.2.2
respondent’s attorney, into the trust account referred
to in paragraph 4.1.1.1 supra, the amount of R200 000.00 (as per
paragraph 6.1.2 of the Rule 43 court order);
4.2
is not found in
contempt of the Rule 43 court order and/or this order and/or any
other order of the court obtained against the applicant
at the
instance of the respondent, within 12 months of the granting of this
order.
5
In
the event of a breach of any one of the conditions set out in
paragraphs 4.1 and 4.2 (including the sub-paragraphs) supra, the
respondent is given leave to approach the court on the same papers,
duly supplemented, to seek that the suspension referred to
in
paragraph 4 supra be lifted and for the court to authorise a warrant
of arrest and imprisonment of the applicant forthwith in
execution of
the order in paragraph 3 supra.
6
Nothing
in this order shall detract from the continued operation and efficacy
of the Rule 43 court order and any amount payable
by the applicant in
terms thereof.
7
The
applicant shall be liable to make payment of the respondent’s
costs of the counter-application.
# [6] The respondent lodged
an application for leave to appeal the rescission judgment to the
Full Court of this Division, and it
was granted on 19 October 2022.
The applicant brought the section 18(1) application seeking an order
that the operation and execution
of paragraphs 2, 3, 4, 5 and 6 of
the rescission order are not suspended pending the outcome in the
appeal.
[6] The respondent lodged
an application for leave to appeal the rescission judgment to the
Full Court of this Division, and it
was granted on 19 October 2022.
The applicant brought the section 18(1) application seeking an order
that the operation and execution
of paragraphs 2, 3, 4, 5 and 6 of
the rescission order are not suspended pending the outcome in the
appeal.
#
# Discussion
Discussion
[7] The respondent
contends that the immediate execution of the rule 43 order cannot be
authorised, because of the existence of
Crutchfield J’s order
suspending the execution of the rule 43 order,
pending the final determination of the rescission application and the
application
for setting aside writs of execution
. Further, he
contends that the rescission application has not been finalised
because the appeal against my order is pending.
[8] The applicant
contends that Crutchfield J’s order was discharged when the
rescission judgment was delivered, and therefore,
this court may
grant the execution order.
[9] It is not correct
that Crutchfield J’s order was discharged on 26 August 2022.
The final outcome of the appeal against
my rescission order is
pending. It is common cause that the application to set aside writs
was timeously launched and is also pending.
Crutchfield J’s
order has not been set aside by a competent court with the requisite
jurisdiction. Therefore, it remains
extant until the finalisation of
the appeal and application setting aside the writs of execution of
the rule 43 order.
This court cannot disregard the
existence of this order. On this basis alone the immediate execution
of the rule 43 order pending
the final outcome of the appeal cannot
be authorised.
# [10] Section 18(1) of the
Act provides that ‘subject to subsections (2) and (3), and
unless the court under exceptional circumstances orders otherwise,
the operation and execution
of a decision which is the subject of an
application for leave to appeal or of an appeal, is suspended pending
the decision of
the application or appeal.’
[10] Section 18(1) of the
Act provides that ‘
subject to subsections (2) and (3), and
unless the court under exceptional circumstances orders otherwise,
the operation and execution
of a decision which is the subject of an
application for leave to appeal or of an appeal, is suspended pending
the decision of
the application or appeal
.’
[11] In addition to
establishing the existence of exceptional circumstances, the
applicant is required, in terms of section 18(3)
of the Act, on
balance of probabilities to prove that she will suffer irreparable
harm if the execution order is not granted; and
that the respondent
will not suffer irreparable harm if the execution order is granted.
[12] The Supreme Court of
Appeal in
Knoop NO and Another v Gupta (Execution)
2021 (3) SA 135
(SCA) para 46
, stated that the exceptional circumstances must
arise from the facts and circumstances of a particular case, and in
the context
of section 18(3) they must be
‘…
..
something that is sufficiently out of the ordinary and of an
unusual nature to warrant a departure from the ordinary rule that the
effect of an application for leave to appeal or an appeal is to
suspend the operation of the judgment appealed from
.’
[13] The applicant states
that her case is exceptional for the following reasons:
[13.1] The degree of the
respondent’s contempt of rule 43 order, in that save for
partial compliance by him with the rule
43 order in August 2021, and
certain payments towards the educational, medical, and extra-mural
expenses of the minor children,
he has refused, since the granting of
the rule 43 order to discharge any of the rule 43 financial
obligations, leaving the applicant
and minor children vulnerable and
financially destitute, with the applicant owing millions which she
has borrowed to maintain herself
and the minor children;
[13.2] The respondent’s
litigious campaign implemented to prevent enforcement of the rule 43
order, in that he instituted
the rescission application, and has in
bad faith, relied on the institution thereof as a reason for his
refusal to comply with
rule 43 order despite the fact that a
rescission application does not stay the rule 43 order, and him being
repeatedly advised
of his obligation to comply with the rule 43
order. After the rescission application argument, he filed
supplementary affidavits
to delay the determination of the rescission
application in the result that the papers filed therein totalled over
1000 pages.
On 13 December 2021, he launched an application seeking
suspension of the execution of the rule 43 order, pending final
determination
of the rescission application and application setting
aside writs of execution. On 17 January 2022, he launched an
application
for review and the setting aside of the writs, and has
taken no further steps in the setting aside application for a period
of
approximately 10 months;
[13.3] The quantum of the
amounts owed by the respondent in terms of the rule 43 order, in that
the respondent at the time the applicant’s
heads of argument
were filed was indebted to the applicant in excess of R2,5 million;
and
[13.4] The effect of the
respondent’s contempt of rule 43 order upon the applicant and
minor children, in that it directly
and imminently threatens the
financial, physical, emotional, and psychological security and
wellbeing of the applicant and minor
children. If the execution order
is not granted, the applicant and minor children will have no funds
with which to provide for
their food, clothing, housing and
transport.
[14] In response to the
stated exceptional circumstances, the respondent contends that he
cannot be in contempt of an order that
is
ipso jure
void, but,
even if this was legally possible, then his bona fide belief that he
is not bound by the order discharges the duty upon
him to show that
it is a reasonable possibility that he did not wilfully and mala fide
defy the rule 43 order. The allegation of
obstructive litigious
campaign is without substance. He has not improperly resorted to
litigation. It is his constitutional right
to have disputes resolved
by a court of law. The rescission application was necessitated by the
applicant’s fraud that she
committed upon the court. The
further affidavits filed after the rescission application argument
disclosed the evidence that the
applicant had hidden from the court,
and demonstrated her fraud. The application to review and set aside
the writs was brought
to stop the applicant from executing writs she
had issued on the strength of the fraudulently obtained rule 43
order. The leave
to appeal has been granted against the refusal of
the rescission and contempt orders. In respect of the quantum of the
amounts
owed by the respondent, he contends that this cannot
constitute a proven fact, since the indebtedness is in dispute. He
disputes
that the effect of his contempt on the applicant and minor
children is an exceptional circumstance. He states that it is not
seriously
disputed that the applicant lives in a home she pays
R45 000 per month, and she drives a new BMW car. He submits that
this
is hardly indicative of any adverse effects upon the applicant
and minor children.
[15] I have considered
the stated exceptional circumstances and the respondent’s
contentions. In my view the degree of the
respondent’s contempt
of rule 43 order as described in paragraph 13.1 above, and the
effects of his contempt on the applicant
and the minor children as
described in paragraph 13.4 above do not without more constitute
exceptional circumstances in the context
of section 18(1) and 18(3)
of the Act. This is because the very question of whether this court
was correct in finding the respondent
to be in contempt of the rule
43 order is the subject of an appeal to the full court, and this
court granted the respondent leave
to appeal on the grounds that the
appeal has reasonable prospects of success. Also, the alleged
litigious campaign that the applicant
contends the respondent
embarked on and the quantum of the amounts owed by the respondent do
not constitute exceptional circumstances.
I agree with the respondent
that it is his constitutional right to have disputes resolved by a
court of law and this court has
not found the respondent to be a
vexatious litigant. Accordingly, the applicant has failed to
establish the existence of exceptional
circumstances warranting a
departure from the default position.
[16] In relation to
whether the applicant will suffer irreparable harm if the execution
order is not granted, she states that she
and the minor children will
be destitute as they will be deprived of accommodation and basic
necessities such as food, clothing
and medical care. She will not be
in a position to continue to afford litigating against the respondent
in the result she will
be compelled to represent herself in such
litigation. If she is unable to accommodate the minor children, the
respondent will no
doubt insist on assuming their primary care which
will be contrary to the recommendations of Dr Robyn Fasser, who
recommended that
the minor children should reside primarily with the
applicant. It is not in dispute that the respondent has continued to
provide
for some of the basic necessities of the minor children,
despite his contestation of the rule 43 order. In my view, the harm
alleged
by the applicant is not irreparable,
[17] The immediate
execution of an order such as the one in issue when the appeal is
pending, and with a probable different outcome
on appeal, has the
potential to cause enormous harm to the party that is ultimately
successful (
Knoop and Another NNO supra para 1
). Section 18(3)
requires the applicant to establish that the respondent will not
suffer irreparable harm if the execution order
is granted. If the
applicant cannot show that the respondent will not suffer irreparable
harm by the grant of the execution order,
the court has no discretion
to grant an execution order (Knoop an
d Another NNO supra para 48
).
[18] The applicant states
that if the respondent is successful in the appeal he will not suffer
irreparable harm because the rule
43 order may only be rescinded in
part, and any claim for reimbursement of amounts disbursed in terms
of rule 43 order will be
limited. He would retain a claim for damages
against the applicant should same be factually and legally
sustainable. Any damages
payable by the applicant will be discharged
through her future income, and set off any proprietary award to which
the applicant
may be entitled in the divorce action. This submission
by the applicant misses the point. One of the orders the applicant
wants
to be put into operation pending the appeal is the contempt of
court order and incarceration of the respondent. An order which
infringes on the freedom and security of a person such as
imprisonment of a person cannot be put into operation pending the
appeal
because of the manifest harm and prejudice that would be
suffered.
[19] I therefore agree
with the respondent’s contention that the operation of the
order would entail possible incarceration
of the respondent for 60
days, and that the minor children would suffer irreparable harm if he
is sent to jail. The respondent
further submitted that his committal
to jail would be an infringement of his constitutional rights to
freedom and security of his
person, human dignity, privacy, freedom
of movement and residence, freedom of association, freedom of
expression, and freedom of
trade, occupation and profession. None of
these harms can be compensated.
[20] The applicant has
not dealt with the harm to be suffered by the respondent and the
children if the immediate execution of the
contempt order is
authorised. This is fatal. If the immediate execution of the contempt
order is authorised, and the respondent
is incarcerated before the
finalisation of the appeal, his success on appeal will be academic.
It is common cause that the respondent
makes some financial
contribution towards the minor children’s needs, and spends
significant time with them. I agree with
the respondent that if the
immediate execution of the contempt order is granted he and the minor
children will suffer irreparable
harm. I find that the applicant has
failed to show on balance of probabilities that the respondent will
not suffer irreparable
harm if the execution order is granted.
[21] The applicant has
failed to make out a case for the relief sought. I find no reason why
I should deviate from the general rule
that the costs follow the
event.
[22] In the premises the
following order is made:
Order
1. The application is
dismissed with costs.
MMP
Mdalana-Mayisela
Judge
of the High Court
Gauteng
Division
(Electronically
submitted by uploading on Caselines and emailing to parties)
Date of judgment:
30 June 2023
Appearances
Counsel
for the Applicant:
Adv
AA De Wet SC
Instructed
by:
Steve
Merchak Attorneys
Counsel
for the respondent:
Adv
A Bishop
Instructed
by:
Nowitz
Attorneys
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