Case Law[2022] ZAGPJHC 542South Africa
Transnet Limited v ERF 152927 Cape Town (PTY) Ltd : In re: ERF 152927 Cape Town (PTY) Ltd v Transnet Limited (35967/2010) [2022] ZAGPJHC 542 (29 July 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
29 July 2022
Headnotes
under case number 98/22546 that:-
Judgment
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## Transnet Limited v ERF 152927 Cape Town (PTY) Ltd : In re: ERF 152927 Cape Town (PTY) Ltd v Transnet Limited (35967/2010) [2022] ZAGPJHC 542 (29 July 2022)
Transnet Limited v ERF 152927 Cape Town (PTY) Ltd : In re: ERF 152927 Cape Town (PTY) Ltd v Transnet Limited (35967/2010) [2022] ZAGPJHC 542 (29 July 2022)
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sino date 29 July 2022
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, JOHANNESBURG)
REPUBLIC
OF SOUTH AFRICA
CASE
NO
: 35967/2010
REPORTABLE:
NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
DATE:
29 JULY 2022
In
the matter between:
TRANSNET
LIMITED
Applicant
and
ERF
152927 CAPE TOWN (PTY) LTD
Respondent
In
Re:
ERF
152927 CAPE TOWN (PTY) LTD
Plaintiff
and
TRANSNET
LIMITED
First Defendant
REGISTRAR
OF DEEDS, CAPE TOWN
Second Defendant
JUDGMENT
SENYATSI
J:
INTRODUCTION
[1]
This is an application for leave to amend the plea and file a
counter-claim in the
main case that is pending before this court. The
applicant is Transnet Limited (“Transnet”) and the
respondent is Erf
152927 Cape Town (Pty) Limited (“Erf”)
[2]
It must be mentioned that the main action was case managed and
culminated into being
certified trial ready. However, 14 (fourteen)
days before the trial date Transnet brought an application to amend
its plea and
file a counter-claim and caused the trial to be
postponed
sine die
. It is those two applications which are the
subject matter of this judgment.
[3]
In the normal scheme of things, it would not be a problem to amend
pleadings as the
amendment application may also be launched on the
date of trial. However, the background of this case, paints a
completely different
picture because effectively, the amendment
application is brought some 22 years later, well after the order
penned by Schabort
J.
[4]
In order to be able to appreciate the application for the amendment
of the plea and
the counter-claim launched by Transnet, it is
important to set out the chronological background of this matter
which started in
1998 and culminated in 2010 which by agreement
between the parties was referred to trial for oral evidence. It is
the 2010 application
which has been certified trial ready during case
management which, despite the trial date being fixed and agreed to,
had to be
postponed
sine die
owing to this application.
BACKGROUND
[5]
During 1998, Erf acquired the right to purchase Erf 152927 (“the
property”)
from Transnet by agreement and in accordance with
the specified contractual process. From that date, Transnet has
attempted to
shy away from the obligations imposed by the agreement
between the parties in so far as the exercise of option to purchase
the
property is concerned. In other words, Transnet has decided to
take a detour from the path of allowing Erf to acquire the property
as agreed.
[6]
The parties were involved in various litigatious steps including an
attempt by Transnet
to evict Erf from the property forming the
subject of this application. For the record, the eviction application
failed in the
Western Cape High Court and the appeal against that
judgment which was in favour of Erf was dismissed by the Supreme
Court of Appeal.
In 2019, Moosa AJ (as he then was) dismissed the
Exception application and found in favour of Erf and also restated
the importance
of the judgment by Schabort J (“ the Schabort
order”) in this division which was handed down during September
2019.
[7]
It is also important to note that over many years, the property was
the subject of
lease to various entities by Transnet. The rights of
the lessees on the option to purchase the property were ceded and
assigned
to those entities with the consent of Transnet. However, by
February 1998, MacPhail (Pty) Ltd (“McPhail”) was both
lessee and option holder. On 18 February 1998, MacPhail exercised the
option to purchase the property. As it was entitled to do,
MacPhail
nominated Erf as the purchaser of the property in respect of the sale
agreement resulting from the exercise of the option.
This was the
position recognised during the protracted litigations between the
parties leading to not only the dismissal of the
eviction attempt by
Transnet but also through the exception application referred to above
in the present pending application.
[8]
Despite an attempt by Transnet to repudiate its obligations under the
option agreement,
as already stated above, Erf obtained a declaratory
order in the Johannesburg High Court on 29 October 1998, confirming
that Erf
was entitled to enforce the agreement of sale resulting from
the exercise of the option and directing Transnet to take all steps
as may be required and necessary to transfer the property to Erf. The
Court recorded that the property was at the time an unregistered
consolidated Erf. It remains such.
[9]
That order notwithstanding, Erf has still not received transfer of
the property, largely
due to delays in obtaining the necessary
regulatory approvals required to register the property as a
consolidated erf. Transnet
has since 2007 and despite the court order
which has not been assailed, adopted a stance that, on various
grounds it is not obliged
to transfer the property.
[10]
In terms of
the “Schabort Order”, the
following was held under case number
98/22546 that:-
“
2.1.
… McPhail (Pty) Ltd On 18 February 1998 on behalf of the
applicant duly exercised the option referred to in paragraph
7, 8 and 9 of the affidavit of Solomon Slom filed in
these proceedings;
2.2.
Applicant duly ratified and adopted the exercising of the option
and is entitled to enforce the resultant
agreement of sale;
2.3.
Applicant within 5 Days of the granting of this order
respondent nominates and instructs available
in terms of clause 6.3.1
of the option agreement;
2.4. In the
event of applicant not electing to withdraw the exercise of its
option in terms of clause 6.3.3 of
the option, directing
Respondent to take such steps as may be required and be necessary to
transfer the immovable property
being Erf 15297 Cape Town in
the City of Cape Town, Cape Division, Western Cape Province in
extent 5,1230 hectares
as appears more fully from diagram S.G.
no: 5082/ 1993, its being recorded that such property
is at present
an unregistered consolidated Erf, the
component Erven of which are Erf 152926 (a portion of Erf
23303)
Cape Town (“ the immovable”) to
applicant against payment of the purchase price and other transfer
costs;
2.5.
Alternatively to 2.4 and only in the event of Respondent failing
to take all the necessary and required steps
within 10 (ten) days
after having been required to do so, ordering and directing the
sheriff to take all the necessary and
required steps, and to sign all
documents on behalf of respondent in order to transfer the immovable
property to the Applicant;
2.6.
Respondent was ordered to pay the costs of this application,
including the costs of two counsel save that the costs
of the
appearance at the hearing of the matter will be on the
unopposed scale and for one Council.”
[11]
The Schabort order was never challenged. In fact the application
leading to the order, had initially
been opposed by Transnet, but
opposition was later abandoned and on Transnet’s own papers the
opposition was abandoned on
the legal advice to do so. In other
words, Transnet was fully aware of the application and took part in
the exchange of papers
until it abandoned its defence.
[12]
In the pending action Erf, seeks relief that Transnet be ordered to
comply with its obligations
to transfer an immovable property (“Erf
152927”) to Erf at the agreed price pursuant to the exercise of
an option as
agreed on 18 February 1998. This will be properly dealt
with by the trial court.
TRANSNET’S
CASE
[13]
In its application to amend its plea, Transnet seeks to insert the
following paragraph after
paragraph 5.3:
“
1.
When it concluded the second cession, McPhail did so on its own
behalf and it did not do so “as
a trustee for a company to be
formed” by it. When Transnet consented to the second cession,
it did so on the basis that it
was consenting to MacPhail being the
recipient of the option rights and the purchaser of the option
property if the option were
to be exercised.
2.
The Plaintiff did not become entitled to the benefits of the second
cession and of the option
agreement and did not become the purchaser
of the option property.
3.
The only basis on which McPhail could exercise the option rights as a
trustee for a company to be formed
was if it concluded the second
cession as a trustee for a company to be formed and if there had been
compliance with the provisions
of section 35 of the Companies Act 61
of 1973 (“the 1973 Act”) when the Plaintiff was
incorporated and after its incorporation.
4.
There was no compliance with the provisions of section 35 of the 1973
Act when the Plaintiff
was incorporated and could not have been valid
compliance therewith after its incorporation as a result of which the
second cession
was not validly rectified and adopted.
5.
In the premises:
5.1.
the second cession is no a pre-incorporation contract as contemplated
in the
1973 Act;
5.2.
the second cession was not validly rectified;
5.3.
the second cession is invalid and unenforceable against the first
Defendant;
5.4.
there was no valid exercise of the option in so far as the second
cession is invalid.
6.
The second cession is accordingly invalid and unenforceable against
the First Defendant.
2.
By inserting the following paragraphs after paragraph 6.5.3.
1.
The Schabort order was based on false evidence which the First
Defendant did not know was false at the time when it was granted.
2.
The evidence placed before Justice Schabort and on the basis
of which
the order was granted diverged from the truth to such an extent that
Justice Schabort would not have granted the order
if he knew that the
evidence was false.
3.
In support of its application to obtain the Schabort order,
the
Plaintiff alleged that there was compliance with section 35 of the
1973 Act as far as the second cession is concerned when
in fact and
in truth there was not compliance therewith
4.
When making the aforesaid allegations, the Plaintiff knew that
they
were false and made them in order to induce Justice Schabort to grant
the Schabort order. The Schabort order was granted on
the basis that
there was compliance with section 35 of the 1973 Act when infact and
in truth there was no such compliance.
5.
In the premises:
5.1.
the Schabort order ought to be set aside;
5.2.
the First Defendant is entitled to an order declaring that the option
was not validly and lawfully
exercised;
5.3.
the Schabort order is not enforceable against the First Defendant.
3.
By inserting the first defendant’s counter-claim at the
end of the plea, a copy of which was attached to the
application
[14]
In support of its application Transnet now avers that the market
value of the property far exceeds
the option price. This in my
respective view should not be permissible, for reasons that will
follow later on in this judgment.
It cannot be denied of course that
the value of the property may well be in excess of what it was in
terms of the option price
given that so many years have passed since
that agreement was concluded.
[15]
The issue for determination is whether or not the application for
amendment of the plea and insertion
of the counter-claim can be
permitted under the circumstances.
LEGAL FRAMEWORK
[16]
The Amendment of pleadings is regulated by Rule 28
of the Uniform Rules of Court. Rule
28(10) of the
Rules grants a court discretion to grant leave to amend any
pleadings or documents at any stage before
judgment on such other
terms as to costs or other matters as the court deems it fit.
[17]
It is trite that the primary object of allowing an
amendment is to obtain a proper ventilation of the dispute
between
the parties, to determine the real and triable issues between
them, so that justice may be done.
[1]
[18]
The basic requisite is that an amendment will not
be allowed in
circumstances
(
my
own emphasis
) which
will cause the other party such prejudice as cannot be cured by an
order for costs and where appropriate a postponement.
[2]
[19]
The
applicable principles provide that amendment will always be allowed
unless the application to amend is mala fide or unless the
amendment
would cause an injustice to the other side which cannot be
compensated by costs.
[3]
[20]
The power of courts to allow material amendments is, therefore
limited by considerations of prejudice
or injustice to the
opponent.
[4]
[21]
An amendment would cause prejudice to the other side which could not
be compensate by costs
if the parties cannot be put back or the
purpose of justice in the same position as they were when the
pleading it is sought to
amend was filed.
[5]
[22]
There may be cases where no terms would overcome
the prejudice which the amendment would cause to the other
party,
such as for example, where the amendment is applied for
at such a late stage in the proceedings and not timelessly
raised to
enable proper investigation and response thereto.
[6]
[23]
The onus is on the party seeking the amendment to show that the other
party will not be prejudiced
by it.
[7]
[24]
If a new grounds for defence comes to the defendant's knowledge for
the first time after it has
filed its plea, it will be allowed to
amend its plea, and provided the application is
bona
fide
(my
own emphasis)
and not prejudicial to the opponent such amendment will be
allowed.
[8]
[25]
An
admission is unequivocal agreement by one party with a statement of
fact by the other party.
[9]
The effect of an admission is to render it unnecessary for the
plaintiff to prove the admitted fact.
[10]
[26]
Although the test for an amendment is the same in the
case of the withdrawal of an admission, the withdrawal
of an
admission is usually more difficult to obtain:
[11]
(a)
It involves a change of plan which requires a
full explanation to convince the court of the
bona
fides
thereof; and
(b)
it is more likely to prejudice the other party, who had, by reason of
admission, been led to believe
that it need not prove the relevant
fact and right and, for that reason, have omitted to gather the
necessary evidence.
[27]
The court will therefore, in exercise of its
discretion, require an explanation of the circumstances under
which
the admission was made and the reasons for now seeking to withdraw
it.
[12]
[28]
A litigant who seeks to add new grounds of relief at the eleventh
hour does not claim such an amendment
as a matter of right but rather
seeks an indulgence.
[13]
[29]
The applicant seeking an amendment must prove that
it did not delay the application after it became
aware of the
material upon which it proposes to rely. It must further
explain the reason for the amendment and show
prima facie
that
it has something deserving of consideration; that is a triable issue.
A
tribal issue is:
[14]
(a)
a
dispute, which, if it is proved on the basis of the evidence
foreshadowed by the applicant in its application, will
be
viable or relevant; or
(b)
dispute, which
will probably be established by the evidence thus foreshadowed.
[30]
The greater the disruption caused by the
amendment, the greater the indulgence sought and the burden
upon
the applicant for amendment to convince the court to accommodate
it.
[15]
REASONS FOR THE
JUDGMENT
[31]
According to Transnet the Schabort order was granted on
an unopposed basis and in its absence.
This cannot be
correct because Transnet was involved in the litigation and withdrew
its defence on the advice of its legal representative.
Consequently, the Schabort order is a final judgement to
which the exception
rei judicata
rule applies. The
res judicata
principle provides that the litigant is precluded
from bringing to court for adjudication the same matter based on the
same facts
that have already been adjudicated by another court. If
the amendment were to be allowed, it will revisit what the other
courts
and in particular what the Schabort order has already made a
determination on.
[32]
Mr
Tsatsawane SC
,
on behalf of Transnet, referred this court to
Pitelli
v Everton Gardens Project (
CC) where
the court said the following:
[16]
“
[27]
An order is
not final for the purposes of an appeal merely
because it takes
effect, unless it is set aside. It is final when the
proceedings of the Court of first instance are complete
and that
court is not capable of revisiting that order. that leads one
inevitably to the conclusion that an order that is taken
in the
absence of a party is ordinarily not appealable… it is not
appealable because such an order is capable of being
rescinded by the
court that granted it and it is thus not final in its
effect.”
[33]
Whilst I take note of the conclusion by the court
in the
Pitelli
case, the
facts in that case are distinguishable to the present case.
In
Pitelli
judgment
was obtained by default for amounts claimed and the
counter-claim was dismissed. Leave to appeal as well
as the
rescission application were heard by the court of first instance
simultaneously and both were refused by that Court
and taken on
appeal to the Supreme Court of Appeal.
[34]
In the present case, Transnet was involved in the
litigation before the Schabort order was obtained.
It
withdrew its opposition to the declaratory order which found in
favour of Erf. There is no doubt that this was not an
order
obtained by default. I therefore disagree with the submission made on
behalf of Transnet in that this court is bound
to follow what
the court said in
Pitelli
.
[35]
Furthermore,
in the present
case, when the Schabort order was obtained despite being aware
of the facts, Transnet failed to file opposition
to the relief
sought. Transnet declined to file an answer and this has
led to undue delay in giving effect to that order
for a period
running into 22 years.
[36]
I am of the considered view that the application
for an amendment and counter-claim have been filed in bad
faith as
an attempt to revisit Transnet’s failure to raise a defence in
the Schabort order granted more than 22
years ago. The attempt
by Transnet to explain that it came across new information as a
result of the discovery process is not persuasive.
I say this based
on the fact that Erf was incorporated many years ago and its records
are of public record and were obtainable
during the marathons of
legal action between the parties. Processes such as approval letters
of the cessions and assignments as
well as the steps to get the
property subdivided were all done by Transnet as it was required to
do in terms of the option agreement.
The attempt to now explain the
reason for the inordinate delay in filing the leave for amendment of
plea and counter-claim is done
to revisit what has already been
decided by the courts of the Republic and should be impermissible.It
follows in my respectful
view that Transnet has failed to discharge
the onus to show it acted bona fide in bringing an application to
amend at this late
stage since 2010, when the action was initiated by
Erf. Its failure to do so timeously can only be ascribed to its
concerted efforts
to frustrate Erf and to not give effect to the
Schabort order.
[37]
Transnet’s
further
submission
that the
President's commission report to place moratorium on the
transfer of Transnet’s property should not
be
permissible as this will clearly undermine the judicial authority and
respect to an existing court order.
[38]
I have also considered the fact that, when Transnet sought
to evict Erf from the property, the
Supreme Court of
Appeal found in favour of Erf
[17]
by dismissing the appeal against refusal of the eviction on the
subject property, by the Western Cape High Court. Van Heerden JA
made
the following observation when handing down the judgement
“
[10]
The rights of the lessee and the option holder were over the years
ceded and assigned to various entities. However
by February
1998, Mc Phail (Pty) Ltd (McPhail) was both the lessee
and the option holder. On 18 February 1998,
McPhail exercised the option to purchase the property. As it was
entitled to do (own emphasis). McPhail nominated the
first
respondent as the purchaser of the property in respect of the
sale agreement resulting from the exercise of the option.”
[39]
It is evident from the passage quoted above that the courts of the
Republic have pronounced on
the validity of the exercise of the
option. It follows therefore that to allow Transnet to amend the
plea as proposed and
to permit the issuing of a counter- claim
would amount to trying to unscramble the proverbial egg on which
legal pronouncements
have been made. This will go against the
exception
rei judicata
principles already alluded to above.
The argument raised by Transnet on this point stands to be rejected.
[40]
It should be remembered that the action proceedings were scheduled to
be heard in February 2020
after being certified trial ready, but the
matter was not ripe for hearing. This was occasioned by the belated
filing of the proposed
amendment to the plea and the attempt to
introduce counter-claim by Transnet.
[41]
In its founding affidavit Transnet contends that it was only alerted
to the possible defence,
22 years after the Schabort Order due to the
insight into the Commission Report which it alleges was only
available to it by Erf
through the discovery process in December
2020. This contention cannot succeed
as
the option exercised is unaffected by the Commission’s Report.
In my respectful view, the report has no bearing whatsoever
to the
option exercised by Erf.
[42]
Transnet also contends that there is no prejudice
to
Erf in it seeking
to
rescind the Schabort Order 22 years later. I do not agree with
this submission. The perusal of the papers clearly
shows that
Erf will be prejudiced. The attorney who represented
Erf in relation to obtaining the Schabort
Order and
all matters pertaining to that application is deceased. The
assistant to that attorney is also deceased.
It is clear, in my
view, that all the documents relating to that application are
unlikely to be available. In any event, records
are
casually
kept for 5 years and
memories in fact fade over time.
A
period of 22 years for the purposes that Transnet is trying to
justify its attack on the Schabort Order is a life time and only
Erf
will clearly be prejudiced. It is the view of this court
that
the prejudice should be avoided at all costs. Transnet therefore has
failed to persuade me to exercise discretion to allow
for the
amendment of the plea as Erf will clearly suffer a significant
prejudice.
[43]
Transnet now contends that it is acting in the
public interest in refusing to comply with its contractual
obligations. This is not a plausible explanation. Transnet is a
public body, but the windfall gain that it seeks to achieve in
averting its obligations to transfer the property to Erf are
reflected in its own financial statements and not
those
of the public coffers. It can only be concluded that Transnet is
acting out of self-interest and not in the public interest.
As an
Organ of State, Transnet is obligated to honour its obligations and
not breach them.
[44]
The attempt by Transnet to introduce a counter-claim is done in bad
faith, it amounts to attempt
to revisit its failure to raise a
defence and counter-claim 22 years after the fact and should not be
permitted. On the facts,
Transnet does not show that it had a valid
defence to the Schabort order let alone the counter-claim in that
motion proceeding.
It is for that reason that the introduction of a
counter-claim should not be allowed by this Court
[45]
It should be stated that the pending action was referred to trial by
consent between the parties.
This is an action that started in 2010.
It should be further noted that in that action,
inter alia
, it
plead prescription and which will be dealt with at trial in the
pending application.
[46]
In addition, the defence and counter-claim that Transnet seeks to
introduce did not feature in
its opposing affidavit to the 2010
application. There was also no attempt, as already stated in this
judgment, made to rescind
the Schabort Order on the basis now
proposed and Transnet is in my view acting in bad faith.
[47]
To give a proper context to the repudiation of obligations by
Transnet, it should be stated that
clause 5 of the option agreement
obliged Transnet to ensure that all subdivision conditions necessary
to effect transfer would,
by the date of any exercise of the option,
be fulfilled. Transnet’s obligations under clause 5 of the
option commenced upon
conclusion of the option agreement in October
1987.
[48]
After the purchase price had been finalised between the parties, Erf
expected that transfer of
the property would be effected within a
reasonable period as a result Erf was content that Transnet would
comply with its obligations
in terms of clause 5 of the option
agreement. However, Transnet did not comply with its obligations.
[49]
It is evident from the papers that the subdivision of the property
had not been done. In fact
Transnet failed to inform Erf that it had
obtained the approval from the Cape Town City Planner for the
subdivision of the property
granted in terms of section 25(1) of the
Land Use Planning Ordinance No15:15 of 1985.
[50]
Transnet failed to disclose the March 1993 approval to Erf and
also failed to disclose the
fact that it had allowed the approval to
lapse. It should be remembered that the property was
an
unregistered Erf. Clause 5 of the option provided that
anticipation of the exercise of this option, shall be incumbent
on Transport Services (which later became Transnet)
to
procure the subdivision, including the survey, preparation and
approval of sub divisional diagrams as may be necessary in order
to
enable the transaction to be implemented forthwith upon exercise
thereof.
[51]
Erf knew about the March 1993 approval when a copy was obtained only
much later in 2001 by Mr
Rory Mill who had been instructed by Mr
Lombard on behalf of Erf to attend to all town planning and legal
requirements to be complied
with by Transnet so that transfer of the
property could be registered in favour of Erf.
[52]
The March 1993 approval had approved the subdivisions, the City
Planner had imposed Transnet
an obligation to advise the intending
buyers of portion A and B (being what would be Erf 152927) in writing
of the need to apply
to the City to have the portions rezoned to an
appropriate land use subsequent to transfer thereof. Transnet failed
to provide
Erf with such notification for land use requirement.
[53]
Transnet was and still is in breach of its obligations as it has not
done all that was necessary
to complete the subdivision conditions.
Furthermore, Transnet failed to take steps to ensure that the
conditions to the consent
first given by the City in terms of the
March 1993 approval to the creation of erf 152927 were fulfilled.
This led to the lapse
of the March 1993 approval which now requires a
fresh application. Transnet’s attempts to amend its plea and
the request
for leave to file a counter-claim are clearly designated
to frustrate efforts to give effect to the option agreement as
confirmed
by the Schabort order.
[54]
It is clear to me that the pending action was launched by Erf as a
result of Transnet’s
failure to comply with its obligations to
take the necessary steps to transfer the property.
The
submission made on behalf of Transnet that the pending action was a
demonstration that the Schabort Order was not final and
has no
factual support and legal basis. I hold this view on the basis that
the courts of this Republic have pronounced on the validity
of the
option and the exercise thereof.
[55]
Transnet has raised in the pending action, various defenses and these
defenses as that stand,
ought to be dealt with at trial. I have also
given consideration to the judgment on exception in assessing whether
this court can
exercise its discretion by allowing the amendment and
the filing of the counter-claim. When the exception was dismissed
with costs
on 31 October 2019,
[18]
the court held as follows:
“
[12]
It is common cause that Transnet did not act in accordance with the
Schabort order and neither did it lodge an appeal nor seek
rescission
of such order. In the circumstances, the Schabort order stands,
unassailed, and no contention contrary to its terms
or inconsistent
with its reasoning is tenable or permissible…
[28]
Having carefully considered the respective arguments, as well as the
contents of the Schabort order, I am inclined to agree
with [Erf]
that the so-called Henderson principle which is incorporated in the
exception rei judicata, precludes Transnet from
now seeking to open
the same subject litigation in respect of matters which might have
been brought forward as part of the subject
in contest before
Schabort J.”
[56]
I turn to paragraph 1 of the Schabort order which reads as follows:
‘
Declaring
that McPhail (Pty) Ltd on 18 February 1998 on behalf of the [Erf]
duly exercised the option (‘the option’)
referred to in
paragraph 7, 8 and 9 of the affidavit of Solomon Slom filed in these
proceedings.’
Further,
in terms of paragraph 2 of the aforementioned order, it was declared,
that (Erf) duly ratified and adopted the exercising
of the option and
is entitled to enforce the resultant agreement of sale.’
[57]
I am of the view that such finding could not have been legitimately
and ordinarily pronounced
by Schabort J if he had not determined that
Coalcor
as trustee of a company to be formed by it ceded and assigned the
rights of that company to be formed by it to McPhail and Transnet
had
consented thereto. To this end, (Erf) argued that Transnet is
therefore precluded in terms of the exception
res
judicata
from placing this in issue. As already indicated, the exception
rei
judicata
raised by Erf is correct in law and the facts of this application.
[58]
In the circumstances, I am not convinced that the application for
amendment of plea by Transnet
raised new triable issues and should be
refused.
[59]
It should be remembered that after the exception was dismissed,
Transnet delivered a special
plea and plea on the merits. It is
evident that Transnet is persisting with most of the grounds it
raised in its exception, notwithstanding
that they are inconsistent
with the Schabort Order and the exception judgment.
[60]
Having considered the papers, the written heads of argument and the
oral submissions made on
behalf of both parties, I am not persuaded
that under these circumstances, that the court should exercise its
discretion by allowing
the proposed amendments as well as leave to
file the counter-claim by Transnet. In my view, the application for
leave to amend
the plea and file a counter-claim cannot succeed and
must be refused.
ORDER
[61]
The following order is made:
(a)
The application for leave to amend the plea and file a counter-claim
is refused with costs on the scale as
between client and attorney.
ML.
SENYATSI
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Date
of Hearing
:
29 November 2021
Date
of Judgment
:
29 July 2022
APPEARANCES
Counsel
for the applicant:
Adv. K
Tsatsawane SC
Instructed
by:
Cliffe
Dekker Hofmeyr Inc
Counsel
for the respondents:
Advocate
S Symon SC
Adv.
MTA Costa
Instructed
by:
Fluxmans Inc
[1]
See
Ergo Mining (Pty) Ltd v Ekurhuleni Metropolitan Municipality
[2020]
3 All SA 445
(GJ) at para 8; Blaawberg Meat Wholesalers CC v Anglo
Dutch Meats (Exports) Ltd
[2004] 1 All SA 129
(SCA) at 133H-I;
Trans-Drakensburg Bank Ltd v Combined Engineering (Pty) Ltd
1967 (3)
SA 632
(D) at 638 A.
[2]
Ergo
Mining (Pty) Ltd v Ekurhuleni Metropolitan Municipality (supra) at
para 8; Trans- Drakensburg Bank Ltd v Combines Engineering
(Pty) Ltd
(supra) at 638H – 639C.
[3]
See
Moolman v Estate Moolman 1927 CPD at 29
[4]
See
Devonia Shipping Ltd v MV Luis (Yeoman Shipping (Co Ltd intervening)
1994 (2) SA 363
(C) AT 369G; Rosner v Lydia Swanepoel Trust
1998 (2)
SA 123
(W) at 127 D –G
[5]
See
Moolman v Estate Moolman (supra) at 29; South British Insurance Co
Ltd v Glisson
1963 (1) SA 289
(D) at 295H
[6]
See
Tengwa v Metrorail 2002 (1) SA
[7]
See
Trans-Drakensburg Bank Ltd v Combined Engineering (Pty) Ltd (supra)
at 640H
[8]
See
Coppermoon Trading 13 (Pty) Ltd v Government, Eastern Cape Province
2020 (3) SA 391
(ECB) at paras 16 and 17; Frenkel, Wise & Co Ltd
v Cuthberth
1947 (4) SA 715
(C); Flemmer v Ainsworth 1910 TPD 81
[9]
See
Botha v Van Niekerk
1947 (1) SA 696
(T) at 703
[10]
See
Bellairs v Hodnett
1978 (1) SA 1109
(A) at 1150D; AA Mutual
Insurance Association Ltd v Biddulph
1976 (1) SA 725
(A) at 735;
section 15 of the Civil Proceedings Amendment Act 25 of 1965
[11]
See
JR Jamisch (Pty) Ltd v WM Spilhaus & Co (WP) (Pty) Ltd
1992 (1)
SA 167
(C) at 170 C-G; President Versekerings maatskappy Bpk v
Moodley
1964 (4) SA 109
(T) at 110H – 111A
[12]
See
Bellairs v Hodnett (supra) at 1150 F-H; JR Jamisch (Pty) Ltd v WM
Spilnanse & Co (WP) (Pty) Ltd (supra) at 170G; Swartz
v Van der
Walt t/a Sentraten
1998 (1) SA 53
(W) at 57 C; South British
Insurance Co Ltd v Glisson 1983 (1) SA 289 (D)
[13]
See
Goelach & Gomperts 1967 (Pty) Ltd v Universal Mills &
Produce Co (Pty) Ltd
1978 (1) SA 914
(A) at 9281
[14]
See
Consol Ltd t/a Consol Glass v Twee Jonge Gesellen (Pty) Ltd
2005 (6)
SA 23
(C) at 36I-J
[15]
See
Ciba-Geigly (Pty) Ltd v Sushol Farms (Pty) Ltd
2002 (2) SA 447
(A)
at 462J-463B; 463E & 464E-H
[16]
2010
(5) SA 171
(SCA) at 176
[17]
See
Transnet Ltd v Erf 152927 Cape Town (Pty) Ltd and Others (798/2010)
[2011] ZASCA 148
[18]
Erf
152927 Cape Town (Pty) Ltd v Transnet (case no 35967/2010) Gauteng
Local Division (unreported)
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