Case Law[2022] ZAGPJHC 537South Africa
BP Southern Africa (PTY) Ltd v KTA Services Station (PTY) Ltd :In re: KTA Services Station (PTY) Ltd v BP Southern Africa (PTY) Ltd (40729/2021) [2022] ZAGPJHC 537 (10 August 2022)
High Court of South Africa (Gauteng Division, Johannesburg)
10 August 2022
Headnotes
it is essentially a question of fairness to both sides whether further sets of affidavits should be permitted.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## BP Southern Africa (PTY) Ltd v KTA Services Station (PTY) Ltd :In re: KTA Services Station (PTY) Ltd v BP Southern Africa (PTY) Ltd (40729/2021) [2022] ZAGPJHC 537 (10 August 2022)
BP Southern Africa (PTY) Ltd v KTA Services Station (PTY) Ltd :In re: KTA Services Station (PTY) Ltd v BP Southern Africa (PTY) Ltd (40729/2021) [2022] ZAGPJHC 537 (10 August 2022)
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sino date 10 August 2022
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO: 40729/2021
REPORTABLE: NO
OF INTEREST TO OTHER
JUDGES: NO
REVISED.
10/08/2022
In the matter between:
BP
SOUTHERN AFRICA (PTY) LTD
Applicant
and
KTA
SERVICES STATION (PTY) LTD
Respondent
In
re
:
KTA
SERVICES STATION (PTY) LTD
Applicant
and
BP
SOUTHERN AFRICA (PTY) LTD
Respondent
JUDGMENT
MAKUME,
J
:
[1]
In the present application the Applicant BP Southern Africa (Pty) Ltd
(BP) who are
the Respondents in the main application seek an order
granting them leave to file the affidavit by one Rita Sikhondze dated
1
st
February 2022 in the main application.
[2]
This application is opposed. The Affidavit opposing the application
is deposed to
by Mr Nathan Lindsay Hitler who describes himself as
the legal representative of KTA Services Station (Pty) Ltd (KTA).
[3]
It is common cause that the Applicant (BP) is being sued by the
Respondent KTA for
payment of the amount of R2 526 228.00
being outstanding rentals in respect of certain business premises
known asBP Kagiso.
To this extend on the 29
th
March 2021
Memela Jones Incorporated acting on behalf of KTA issued a letter of
demand addressed to BP.
[4]
Having failed to comply with the letter of demand KTA through its
attorneys instituted
motion proceedings on the 25
th
August
2021 whereupon BP filed its notice to oppose the claim on the 10
th
September 2021.
[5]
The Founding Affidavit of KTA is deposed to by Nathan Lindsay Hittler
who describes
himself as the Chief Executive Officer of Corwill
Investment Holdings (Pty) Ltd. Mr Hittler says that he is the
representative
of the Sole Shareholder of KTA being Corwill
Investment.
[6]
Hittler says that he has been duly authorised to depose to the
Founding Affidavit
by virtue of a Directors Resolution dated the 30
th
July 2021. He attaches such resolution as Annexure NH1.
[7]
The resolution is in actual fact dated the 16
th
July 2021
and it appoints Messrs Memela Jones Incorporated to prosecute its
claim against BP for payment of the amount of R2 397
014.00 (Two
Million Three Hundred and Ninety-Seven Thousand and Fourteen Rands)
[8]
On the 28
th
September 2021 BP’s attorneys filed and
served a notice in terms of Rule 7(1) disputing the authority of
Memela Jones Incorporated
to act on behalf of KTA.
[9]
Similarly on the 27
th
October 2021 KTA also filed a Rule
7(1) notice disputing the authority of Edward Nathan Sonnenberg Inc.
and Rita Sikhondze to represent
BP.
[10]
On the 3
rd
November 2021 Ms Rita Sikhondze filed and
deposed to the main Answering Affidavit and applied for condonation
for the late filing
thereof. In the Answering Affidavit it was
made clear that firstly no agreement exists between KTA and BP
because the people
who purported to act for KTA had not been
authorised thereto.
[11]
On the 11
th
November 2021 Memela Jones Incorporated filed
a second Rule 7(1) notice still objecting or querying the authority
of Rita Sikhondze
to have filed an Answering Affidavit on behalf of
BP. Four days after this notice Memela Jones Incorporated withdrew as
attorneys
of record for KTA.
[12]
On the 19
th
November 2021 Mr Hittler filed a notice in
terms of Rule 16A in which he indicated that hence forth all
pleadings in this matter
had to be served on him at [....] M [....]
Street F [....] Extension 2, R [....].
THE
APPLICATION TO GRANT LEAVE TO FILE FURTHER AFFIDAVIT BY BP
[13]
On the 13
th
February 2022 BP filed a notice of application
in which they seek leave that a further affidavit by Rita Sikhondze
dated 1
st
February 2022 be admitted as evidence in the
main application. The notice of motion was served on KTA c/o Nathan
Lindsay Hittler
at [....] M [....] Street, F [....] Ext 2, R [....].
[14]
The affidavit is described as a Supplementary Answering Affidavit to
the Founding Affidavit.
It was as a result of the information
provided by Mr Hittler in the rule 35(13) application that
necessitated the filing of this
Supplementary Answering Affidavit. BP
maintain that the requested documents in the 35(13) notice were
necessary to enable BP to
deal fully with Hittler’s allegations
that Corwill is the Shareholder of KTA.
[15]
Rita Sikhondze on behalf of BP contends that the further Answering
Affidavit is relevant and
provides further ventilation of the issues
in question and it is in the best interest of justice to permit BP to
supplement the
initial Answering Affidavit.
[16]
The Applicant BP has also raised a point in
limine
that since
the withdrawal of Memela Jones Incorporated as attorneys of record
for the Respondent that the company is accordingly
not represented in
accordance with the rules.
[17]
It is common cause that BP launched an application in terms of Rule
35(13) in which it sought
the court to authorise the delivery of
certain documents set out in terms of Rule 35 (14). When BP filed its
main Answering Affidavit
it had not as yet been furnished with the
Rule 35 documents as a result in the Answering Affidavit BP made it
clear in advance
that depending on the outcome of its application in
terms of Rule 35(13) it may be necessary to supplement the Answering
Affidavit.
That time is now because BP is now satisfied that the
required documents have been furnished.
[18]
At the core of the dispute in this matter is the
locus standi
of people who purport to act on behalf of KTA both as directors or
shareholders. Hittler has been unable to provide a share transfer
form transferring KTA shares to Corwill. He has also failed to
furnish an agreement in terms of which Corwill purportedly acquired
shareholding in KTA. It is this new evidence that BP seeks leave that
it be placed before this Court for the proper ventilation
of the
issues. There is in my view a huge dispute of facts in this matter.
[19]
The general and ordinary rule in our law is that of three sets of
affidavits namely the Founding,
Answering and lastly Replying
affidavit. This rule is however, not static and does not preclude a
Court on good cause shown to
allow further affidavits. In this regard
the Appellate Division per Ogilrie JA in
James Brown and Hammer
(Pty) Ltd v Simmons
1963 (4) SA 656
(A) at 660 D –F
made
the following authoritative pronouncement:
“
It is in the
interest of the administration of Justice that the well-known and
well established general rules regarding the number
of sets and the
proper sequences of affidavits in motion proceedings should
ordinarily be observed. That is not to say that those
general rules
must always be rigidly applied, some flexibility, controlled by the
presiding judge exercising his discretion in
relation to the facts of
the case before him, must necessarily also be permitted.”
[20]
In order for KTA to succeed in its opposition to the filing of a
further affidavit it must prove
that the Applicant BP is acting
malafide
and that KTA will be prejudiced in the further
conduct of its claim.
[21]
I take the view that it is in the interest of justice to grant this
application as the Respondent
KTA has failed to demonstrate any
material prejudice in the conduct of its case. The real issue is
about the
locus standi
of the persons who say they act on
behalf of KTA.
[22]
In
Milne NO v Fabric House (Pty) Ltd
1957 (3) SA 63
(N) at 65A
it was held that it is essentially a question of fairness to both
sides whether further sets of affidavits should be permitted.
[23]
The Applicant BP has demonstrated and shown substantial grounds why
this further affidavit by
Sikhondze should be allowed as evidence.
Holmes J in Milne (supra) summarised it as follows:
“
In my view it is
neither necessary nor desirable to say more than that the Court has a
discretion to be exercised judiciary upon
consideration of the facts
of each case and that it is basically a question of fairness to both
sides.”
[24]
On the facts of this matter there can be no suggestion of any
malafides
or culpable remissness on the part of BP. BP
indicated well in advance that depending on the receipt of documents
requested in
its Rule 35(14) notice it reserves the right to file
further Answering Affidavit. This is in my view no surprise to the
Respondent.
In any case KTA can never be prejudiced by the filing of
that affidavit. The affidavit is there to put full facts before the
court
for a proper ventilation of the issues.
[25]
The Respondent’s interest is that it be paid a certain large
amount of money based on a
notarial deed. The Applicant BP says that
money that is due is not due to the party that now purports to be the
Applicant. BP does
not want to make payment to a wrong and
non-existent entity. It is therefore only fair that the Respondents
prove their
locus Standi
. In the result I find that the
further affidavit by Rita Sikhondze should be admitted.
DOES
MR NATHAN HITTLER HAVE THE NECESSARY AUTHORITY TO REPRESENT KTA?
[26]
On the 10
th
May 2022 BP delivered supplementary heads of
argument in which they referred to an as yet unreported judgment
handed down on the
5
th
April 2022 in this division in
which judgment the eligibility of Mr Hittler to represent KTA in
certain proceedings was dealt with.
It is the case of
Corwil
Investments Holdings (Pty) Ltd & Another v Investec Securities
(Pty) Ltd Case No. 11126/2021
.
[27]
It is common cause that Mr Hittler is presently an unrehabilitated
insolvent and is thus barred
from occupying a position of a director
in any company. In the Corwill matter Manoim J ruled that the
legal position is quite
clear in that Mr Hittler who is not a legal
practitioner nor a director cannot represent Corwill in resisting the
joinder application
in that matter.
[28]
In the matter of
Manong and Associates (Pty) Ltd v Minister of
Public Works and Another
2010 (2) SA 167
(SCA)
the SCA made an
exception to the general rule that a company may not conduct
litigation except by the appearance of Counsel or
in certain
circumstances attorneys. The Court found that cases would arise where
the administration of justice might require some
relaxation of the
general rule. That their occurrence was likely to be rare and
circumstance exceptional or at least unusual. In
the final analysis
the Court found that in each instance leave to represent a company
whilst not being Counsel or attorney had
to be sought by way of a
properly motivated timeously lodged formal application showing good
cause why in the particular case the
rule prohibiting
non-professional representation should be relaxed.
[29]
In the present matter Mr Hittler has not placed before this Court a
well-motivated application
why he should be the legal mouthpiece of
KTA. He is an un- rehabilitated insolvent and lacks the necessary
locus standi
to litigate. He can only do so with the consent
of the trustee in his estate.
CONCLUSION
[30]
In the final analysis I have come to the conclusion that KTA will not
be prejudiced by the admission
into evidence of the affidavit deposed
to by Rita Sikhondze, secondly Mr Nathan Hittler has no right to
represent KTA as if he
is Counsel or attorney in this matter.
[31]
In the result I make the following order:
ORDER
1.
BP Southern Africa (Pty)
Ltd (BPSA) is hereby granted leave to file the affidavit of Rita
Sikhondze dated the 1
st
February 2022 in the main application instituted by KTA under case
number 40729/2021.
2.
KTA is ordered to pay
costs of this application on a party and party scale including the
costs of Counsel employed.
Dated at Johannesburg on
this 10
th
day of August 2022
M
A MAKUME
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, JOHANNESBURG
Appearances:
DATE OF
HEARING
: 21 JUNE 2022
DATE OF
JUDGMENT
: 10 AUGUST 2022
FOR
APPLICANT
: ADV G HERHOLDT
INSTRUCTED
BY
: MESSRS EDWARD NATHAN &
SONNENBERGS
ATTORNEYS
FOR
RESPONDENT
: MR N HITTLER
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