Dhoda v Standard Bank of South Africa Limited and Another ; In Re: Standard Bank of South Africa Limited v Dhoda (73392/2018) [2022] ZAGPPHC 1041 (26 September 2022)


 

 

51

 

REPUBLIC OF SOUTH AFRICA

 

 

 

IN THE HIGH COURT OF SOUTH AFRICA

 

(GAUTENG DIVISION, PRETORIA)

 

 

CASE NO: 73392/2018

 

 

 

(1) REPORTABLE: NO

 

 

(2) OF INTEREST TO OTHER JUDGES: NO

 

 

………………………. ………………………..

DATE SIGNATURE

 

 

 

 

 

 

 

 

(GAUTENG

 

 

 

In the matter between: -

 

 

ROOKSANA DHODA Applicant

 

 

and

 

 

THE STANDARD BANK OF SOUTH AFRICA LIMITED First Respondent

 

THE SHERIFF, JOHANNESBURG NORTH Second Respondent

 

 

 

 

 

In Re:

 

THE STANDARD BANK OF SOUTH AFRICA LIMITED Plaintiff

 

and

 

 

ROOKSANA DHODA Defendant

 

________________________________________________________________

 

JUDGMENT

________________________________________________________________

 

 

[1] The Applicant is applying for an order rescinding the default judgment

 

granted by the above Honourable Court on the 10 December 2015 under

 

case number 64605/2015. This application is brought on the basis that the

 

default judgment was erroneously sought and granted and that the

 

applicant has good defences to the first respondent’s claims. The applicant

 

seeks a costs order against the respondent.

 

 

[2] The application is opposed on the following grounds: -

 

That the applicant is not instituted on a bona fide basis and forms part of

 

a long dilatory litigation against the first respondent. It is contended that

 

the applicant failed to establish the requirements for a rescission under

 

Rule 42 (1) (a) as it is averred by the respondent that the default

 

judgment was erroneously sought and granted. The first respondent

 

further contends that the applicant failed to make out a case for the relief

 

she seeks and the application’s purpose is to merely delay the first

 

respondent’s claims.

 

The first respondent seeks the dismissal of the application with a punitive

 

costs order.

 

 

FACTUAL BACKGROUND

 

 

[3] The applicant and the first respondent duly represented, concluded a

 

written home loan agreement on 20 December 2005. In terms of the

 

home loan agreement, the first respondent lent and advanced to the

 

applicant the sum of R2.5 million (principal debt). The express terms and

 

conditions of the home loan agreement read with the bond were inter alia

 

the following: -

 

 

a) That the principal debt would bear interest at the first respondent’s prime

 

rate of interest, which would vary from time to time;

 

b) That the applicant will effect monthly instalments amount in the sum of

 

R21 854.07;

 

c) As security for the principal debt, the applicant was required to register a

 

mortgage bond in favour of the first respondent for an amount of R2.5

 

million (the mortgage bond) over Portion 1 of Erf 793 Forest Township,

 

Registration Division I.R Province of Gauteng measuring 759 square

 

metres. (property)

 

 

 

[4] Pursuant to the conclusion of the home loan agreement, the first

 

respondent advanced the principal debt to the applicant, the applicant

 

passed the mortgage bond over the property as she was obliged to do.

 

The applicant defaulted on the home loan agreement as she failed to

 

maintain monthly instalment as agreed. At the institution of the action by

 

the first respondent in August 2010 under case number 28958/2010, the

 

applicant was in arrears in an amount of R1 121 628.16. The applicant

 

defended the action on the basis that the notice in terms of Section 129 of

 

the NCA had been sent to an incorrect address and disputed that the

 

principal debt had been advanced.

 

 

[5] During October 2010 the first respondent withdrew the action under case

 

number 28958/2010. A different firm of attorneys was instructed to

 

commence action against the applicant to avoid becoming embroiled in

 

the dispute in summary judgment relating to whether or not Section 129

 

of the NCA had been received by the applicant or not. The first

 

respondent reinstituted action against the applicant under case number

 

48627/2011 and summons was served on the applicant’s postal address

 

as the address preferred by the applicant.The action was not defended

 

and the first respondent was granted default judgment against the

 

applicant on 04 November 2011 in the sum of R3 675 205.88 plus interest

 

and an order declaring the mortgage bond executable.

 

 

[6] On 20 December 2011 the applicant applied for the rescission of the

 

default judgment under case number 48627/2011 contending that the

 

summons were not properly served as it was served on a postal address

 

thus infringing upon her right to housing. The application for rescission by

 

the applicant was opposed by the first respondent and the applicant failed

 

to file a replying affidavit to the first respondent’s answering affidavit. On

 

01 October 2012 the applicant’s application for rescission was dismissed

 

with costs whereafter the applicant applied for leave to appeal the

 

dismissal of her application. Leave to appeal was also dismissed.The

 

applicant petitioned the Constitutional Court for leave to appeal

 

contending that the service of the summons in the 2011 action was

 

defective. Before judgment for leave to appeal could be delivered by the

 

Constitutional Court, applicant and the first respondent entered into

 

discussions relating to the leave of appeal application launched at

 

the Constitutional Court. The parties herein confirmed that the first

 

respondent would simply abandon the judgment without in any way

 

abandoning its claim or right of action by providing a formal consent to

 

rescind the 2011 default judgment. Despite the applicant and the first

 

respondent agreeing to request the Constitutional Court to pend its

 

decision in respect of the applicant’s application for leave to appeal

 

pending resolution of the matter between the parties, the Constitutional

 

Court dismissed the applicant’s application for leave to appeal with costs

 

on 3 December 2014.

 

 

[7] Despite the dismissal by the Constitutional Court of the application based

 

on her contention; The first respondent granted the applicant a benefit of

 

doubt regarding her alleged defective summons and instituted action

 

afresh and served the summons on the address the applicant prefers

 

notwithstanding the dismissal of her application by the Constitutional

 

Court. It was expressly stated in writing that the abandonment of the

 

judgment by the Constitutional Court dismissing applicant’s application

 

was premised on the understanding that the first respondent’s claim or

 

right of action was not abandoned. The first respondent subsequently

 

served the summons on the applicant who failed to defend the action. A

 

default judgment was granted against the applicant on the 10 December

 

2015 and a sale of the applicant’s immovable property was up for

 

execution arranged for 20 October 2016. The applicant launched another

 

application for rescission of the default judgment a day before the sale of

 

her house in execution resulting in the cancellation of the intended sale.

 

 

[8] The basis of the application for rescission of the default judgment was

 

based on the following contentions: -

 

a) That the manner in which the summons was served on the applicant’s

 

preferred address was not proper;

 

b) That the first respondent had abandoned its claim against the applicant by

 

way of notice in 2011 when the first respondent abandoned the judgment

 

by default;

 

c) That the first respondent’s claim had prescribed.

 

The contentions aforementioned raised as grounds for the application for

 

rescission of the judgment granted in 2016 were abandoned by the

 

applicant. She however disputed the quantum of the 2015 default

 

judgment pertaining to legal costs.

 

Despite the first respondent having delivered an answering affidavit to the

 

applicant’s application for rescission the applicant failed to deliver her

 

replying affidavit.

 

The applicant’s application for rescission was dismissed with a punitive

 

costs order.

 

 

[9] As the applicant’s application for rescission for judgment (2016) was

 

dismissed, the first respondent arranged for the sale of the applicant’s

 

immovable property scheduled for the 11 October 2018. Two days prior to

 

the sale in execution of the applicant’s house on the 9 October 2018, the

 

applicant launched the present rescission application.

 

 

 

Issues for determination by the first respondent

 

[10]

 

“ 3.1 Condonation for the late filing of the first respondent’s answering affidavit;

 

3.2 The bona fides of the application;

 

3.3 Whether or not the applicant’s application is competent;

 

3.4 Whether the applicant is entitled in law to rely on any aspects of her 2018

 

rescission, notwithstanding the question concerning the competence of

 

the application;

 

3.5 The consequences of the applicant’s non-compliance with Rule 35 (12).”

 

According to the applicant, issues to be determined are the following: -

 

“3.6 Condonation for the late filing of the first respondent’s answering affidavit;

 

3.7 In the event that condonation is granted the Applicant will require an

 

opportunity to deliver a Replying affidavit”

 

 

Condonation application by the first respondent

 

[11] The applicant (Rooksana Dhoda) submitted that the only crisp issue for

 

determination in the application before this court is whether to grant

 

condonation or not for the late filing of the first respondent’s answering

 

affidavit. Counsel for the applicant informed this court that her

 

instructions are to argue condonation only and further that if condonation

 

is granted, to apply for a postponement to enable the applicant to file its

 

replying affidavit to the first respondent’s answering affidavit. The first

 

respondent (Standard Bank of SA) contended that it is not common cause

 

that condonation is the only aspect to be determined in this application.

 

Counsel for first respondent is of the view that the entire application

 

including the issue of condonation is to be considered and finalized in the

 

application before this Court.

 

 

[12] The grounds for condonation are premised on the following:

 

The first respondent argued that the sole cause of the delay in delivering

 

the answering affidavit arose out of the applicant’s conduct. The

 

applicant’s conduct arises from the history of this matter. It is common

 

cause that the legal proceedings between the parties dates back to 2010

 

and to date according to first respondent, there is no finality envisaged by

 

the applicant. Gleaning from the papers before this court, the application

 

launched various rescission applications and such applications were

 

dismissed by the above Honourable Court including the Constitutional

 

Court as aforementioned. The first respondent submitted that it gave the

 

applicant the benefit of doubt by abandoning the judgment granted in

 

instances where the applicant raised issues of her domicilium address and

 

disputed the correctness thereof and even contesting that in some

 

instance denying that the Sheriff did properly serve the pleadings on

 

the applicant. The first respondent made it very clear that the

 

abandonment of judgment or consent to rescind default judgment in a

 

particular matter does not mean that the first respondent in any way

 

abandons its claim or right of action. According to the first respondent,

 

the applicant persists in raising issues in the present application which

 

were dealt with in the past applications with the sole purpose of

 

frustrating and delaying the progression of the parties matter to be

 

concluded.

 

 

[13] In applying for rescission of default judgment on the eve of the sale in

 

execution of the applicant’s house during 2018, applicant contended that

 

she has since discovered letters of the 14 April 2015 wherein she changed

 

her domicilium address and allegedly notified the first respondent and

 

hence her fresh rescission application based on her latest discovery of the

 

letters of the 14 April 2015. The first respondent based on the applicant’s

 

past conduct doubting the provenance of the 14 April 2015 letters, called

 

for the production of the 14 April 2015 letters in terms of Rule 35 (12)

 

notice during December 2018.

 

 

[14] It is argued by the first respondent that the documents sought are central

 

to the applicant’s case and further that the said documents are key to the

 

first respondent filing its answering affidavit as it requires an opportunity

 

to inspect the original documents. The applicant failed to produce the

 

original documents as required in terms of Rule 35 (12). Ultimately the

 

first respondent did file its answering affidavit albeit late. It is the lateness

 

of the filing of the answering affidavit which is inter alia a highly

 

contentious issue in the condonation application.

 

 

[15] The first respondent averred that it compelled the applicant to comply

 

with its Rule 35 (12) notice which application to compel was opposed by

 

the applicant. The notice to compel was later on withdrawn by the first

 

respondent and filed its answering affidavit. It is alleged by the first

 

respondent that the applicant has not as yet delivered her replying

 

affidavit.

 

 

[16] The first respondent contends that it was not in wilful non-compliance by

 

not submitting its answering affidavit timeously nor did it act delinquently

 

and intentionally thus wilfully delaying the progression of this matter.

 

The applicant, in the first respondent’s view is to shoulder all the blame

 

for delaying the finalization of its claim resorting to endless and baseless

 

applications in order to stave this matter being concluded.

 

 

[17] The first respondent argued that the applicant suffers no prejudice by the

 

late filing of the answering affidavit as the applicant is the sole cause of

 

the delay as she failed to comply with Rule 35 (12). The applicant is still in

 

occupation of the bonded property and does not effect any monthly

 

instalments so argued the first respondent. According to the first

 

respondent, the prospects of success tilts in its favour as the applicant

 

failed to make out a case in this matter. The first Respondent contended

 

that applicant’s case highly depended on the alleged letters of 14 April

 

2015. The applicant’s failure to produce the originals of the alleged letters

 

of the 14 April 2015 in the first respondent’s view means that there is no

 

case before this court. The first respondent accordingly seeks for the

 

condonation to be granted with a punitive costs order.

 

 

[18] The application is opposed on the basis that the delivery of the answering

 

affidavit has been unduly delayed by the first respondent. The applicant

 

contended that the first respondent failed to provide sufficient explanation

 

for the lateness of its answering affidavit. In applicant’s view the first

 

respondent did not seek indulgence of the court in being late to deliver its

 

answering affidavit. The applicant submitted that the first Respondent’s

 

defence should be struck out due to the following reasons: -

 

i) The delay on the part of the first respondent of twenty two months in

 

delivering its answering affidavit is extremely excessive, protracted and

 

flagrant.

 

ii) It is expected of the first respondent to be fully appraised with the Rules

 

of this court and that the first respondent deliberately refrained from

 

providing a reasonable explanation for its delay.

 

iii) That the first respondent’s explanation that it was awaiting the discovery

 

of documents in terms of Rule 35 (12) is unsatisfactory.

 

iv) The failure of the first respondent to provide a reasonable, satisfactory

 

and acceptable explanation for the delay is fatal to its application.

 

[19] The applicant submitted that the first respondent flagrantly, recklessly and

 

wilfully breached the Rules of this Court and its failure to provide a

 

reasonable explanation for its delay should result in its application for

 

condonation being refused irrespective of the merits of the matter.

 

It was further contended by the applicant that the reasonable prospects of

 

success is naturally an important consideration relevant to the granting of

 

condonation, however it is not necessarily decisive in every matter and

 

cannot per se be conclusive. The applicant submitted that a bona fide

 

defence and a good prospects of success are not sufficient in the absence

 

of a reasonable explanation for the default.

 

 

[20] According to the applicant, what the first respondent tendered as an

 

explanation is merely a delay in finalising its application to compel the

 

applicant to produce documents in terms of Rule 35 (12) of the Rules of

 

court. The applicant argued that the first respondent’s failure to provide a

 

satisfactory explanation for each period of delay reveal the first

 

respondent’s lackadaisical attitude towards the requisite time limit and the

 

Rules of this Court. The applicant’s view is that the application for

 

condonation be refused and that the first respondent’s be struck out.

 

 

 

Analysis and legal principles finding application

 

 

 

[21] A court may condone non-compliance of the Rules of the Court in

 

instances where the applicant shows that a valid and justifiable reason

 

exists why non-compliance should be condoned. An applicant is to furnish

 

an explanation of his default sufficiently and fully to enable the court to

 

understand how it really came about and to assess his conduct and

 

motives. The court held in Federated Employers Fire and General

 

Insurance Co Ltd and Another .V. Mckenzie 1969 (3) SA 360 (A)

 

at 362 F-H that: -

 

“In considering petitions for condonations under Rule 13, the factors

 

usually weighed by the Court include the degree of non-compliance, the

 

explanation therefore, the importance of the case, the prospect of

 

success, the respondent’s interest in the finality of his judgment, the

 

convenience of Court and the avoidance of unnecessary delay in the

 

administration of justice…” The burden lies with the applicant to prove

 

good cause for the relief it seeks. See also Silber .V. Ozen Wholesalers

 

(Pty) Ltd 1954 (2) SA 345 (A) at 353A.

 

It was further decided in Uitenhage Transitional Council .V. SA

 

Revenue Services 2004 (1) SA 292 SCA at P 297 par 6 that:

 

“… condonation is not to had merely for the asking, a full detailed and

 

accurate account of the causes of the delay and effects must be furnished

 

so as to enable the court to understand clearly the reasons and assess the

 

responsibility. It must be obvious that, if the non-compliance is time

 

related then the date, duration an extent of any obstacle on which

 

reliance is placed must be spelled out”.

 

 

Good cause

 

[22] In considering as to what constitute good cause, the court has a wide

 

discretion and should consider the matter holistically in satisfying itself

 

that there is a full and reasonable explanation as to how non-compliance

 

came about. The court have refrained from attempting to formulate an

 

exhaustive definition of what constitute “good cause”.

 

See Cape Town City .V. Aurecon SA (Pty) Ltd 2017 (4) SA (cc) at

 

238 G-H and Du Plooy .V. Anues Motors (Edms) Bpk 1983 (4) SA

 

212 (O) at 216H-217D.

 

 

[23] The first respondent contended that non-compliance with Rule 35 (12)

 

excused the first respondent from filing any answering affidavit. The

 

purpose for requesting the discovery of the 14 April 2015 letters was to

 

allow the first respondent to check the veracity thereof. The applicant’s

 

refusal to produce the letters on the basis that they have been attached

 

on its founding affidavit is not sustainable.The question that needs an

 

answer is why if indeed the applicant is in possession of the original

 

letters of the 14 April 2015, did not produce same to allow the first

 

respondent to file its answering affidavit? When compelled to produce the

 

letters, the applicant opposes the notice to compel on the eve of

 

delivering and filing of the answering affidavit by the first respondent.

 

The respondent withdrew the notice to compel and filed its answering

 

affidavit in order to see the progression of the matter and to avoid further

 

delay in finalizing the matter. The effect of the withdrawal of the notice to

 

compel and failure to produce the letters of the 14 April 2015 by the

 

applicant meant that the applicant could not use the alleged letters in her

 

possession as the letters do not form part of the papers before the court,

 

a sanction provided by Rule 35 (12) of the Rules of the Court. The

 

subsequent withdrawal of the notice to compel and the delivery of the

 

answering affidavit had no effect on the applicant as she failed to deliver

 

her replying affidavit to date. In my view the refusal and failure to

 

produce the requested letter of the 14 April 2015 resulted in the first

 

respondent not being obliged to deliver and file its answering affidavit.

 

 

[24] The position of our law is the following: -

 

Until the original documents (letters of 14 April 2015) are presented for

 

purpose of assessment, the other party may not be heard to compel the

 

production of an answering affidavit to be delivered and the party cannot

 

be told to draft the answering affidavit in the absence of obtaining the

 

original documents and be entitled to inspect those documents because in

 

inspecting the documents, the defence of the party may come to the fore

 

and it will be a holistic position.

 

See Protea Assurance .V. Waverley 194 (3) SA 247 C at 249B

 

Unilever .V. Polargic 2001 (2) SA 329 C at 336 C-I

 

 

[25] Accordingly I hold that the first respondent has demonstrated that good

 

cause exists for the relief it seeks and has furnished an explanation of his

 

default in delivering its answering affidavit which explanation in my view,

 

is reasonable and acceptable. I find that the non-delivery and filing of the

 

answering affidavit timeously by the first respondent is neither flagrant,

 

reckless and gross to warrant the dismissal of its application for

 

condonation.

 

 

Prejudice and interest of justice

 

 

[26] It is trite law that the standard for considering an application for

 

condonation is the interest of justice. See Brummer .V. Gorfil Brother

 

Investments (Pty) Ltd and others 2000 (2) SA 837 (CC)

 

paragraph [3].

 

Grootboom .V. National Prosecuting Authority and Another 2014

 

(2) SA 68 (CC) paragraphs [22] and [23]. Whether it is in the

 

interest of justice to grant condonation depends on the facts and

 

circumstances of each case and the list of such facts are not exhaustive.

 

The first respondent contended that a reasonable and justifiable

 

explanation as to its delay in delivering its answering affidavit has been

 

fully set out warranting the granting of condonation. The first respondent

 

argued that the sole intention of the applicant in launching endless and

 

numerous applications is to frustrate and delay the finalization of the

 

matter thus causing substantial prejudice to its interests.

 

 

[27] It is submitted by the first respondent that the applicant is in no way

 

prejudiced by the late filing of the answering affidavit which is for her own

 

making. The applicant according to the first respondent, intends to delay

 

the conclusion of its claim as long as she could while enjoying the benefits

 

of her occupation of the bonded property without effecting any payments

 

thereof. The first respondent contended that the applicant’s application is

 

meritless and its prospects of success in the application are great.

 

 

[28] It is the applicant’s submission that the delivery of the answering affidavit

 

has been unduly late with a scant and unsatisfactorily explanation

 

provided and as such, the first respondent’s defence should be struck out.

 

It is the contention of the applicant that since there is a flagrant and

 

reckless failure on the part of the first respondent to deliver its answering

 

affidavit within the prescribed period, condonation can be declined

 

without considering the prospects of success.

 

 

[29] As alluded above the non-compliance of delivering the answering affidavit

 

within the required time frame cannot be attributed to the first

 

respondent. The first respondent was not obliged to deliver its answering

 

affidavit until the applicant produced the alleged original letters of the 14

 

April 2015 in terms of Rule 35 (12). I have already found that the first

 

respondent’s explanation as to the default is reasonable and acceptable

 

and the contention that its defence be struck out for lack of a satisfactory

 

explanation for the delay is rejected.

 

 

[30] Having assessed and evaluated the facts of this matter, the importance of

 

the case, the first respondent’s interest in the finality of this application

 

and the avoidance of further delays in the administration of justice and

 

prospect of success, I hold the view that condonation be granted.

 

I find that the first respondent will suffer great and substantial prejudice if

 

condonation is not granted whereas the applicant will experience no

 

prejudice. It is in the interest of both parties and more particularly in the

 

interest of justice that the condonation be granted and the application be

 

finalized.

 

 

 

 

 

 

[31] A case for condonation is appropriate under the circumstances and the

 

relief sought by the first respondent is granted.

 

 

I make the following order: -

 

1) The application for condonation is hereby granted.

 

 

 

Application for a postponement

 

 

[32] The applicant’s counsel informed the court that she has only been

 

instructed to argue the issue of condonation and if condonation is

 

granted, the applicant be granted an opportunity to file her replying

 

affidavit as it is in the interest of justice to allow for a replying affidavit at

 

a later stage. The first respondent contended that the applicant failed to

 

bring a proper application for a postponement and counsel for the

 

applicant moved such an application from the bar. An application for the

 

dismissal for a postponement was made on behalf of the first respondent.

 

 

[33] I find that there is no reasons or basis whatsoever for the application for a

 

postponement and therefore I am inclined to dismiss the application for a

 

postponement. The following order is made: -

 

 

 

1) The application for a postponement is dismissed.

 

 

 

 

Rescission application

 

[34] The applicant avers that the default judgment was erroneously sought as

 

she has good defences to the first respondent’s claim. Counsel for the

 

applicant despite having informed the court that she does not have

 

instructions to argue the rescission application before court, made a

 

submission from the bar that the application is brought in terms of the

 

common law. The applicant consequently seeks relief to rescind the

 

default judgment granted on the 10 December 2015.

 

 

Applicable legal principles

 

 

[35] Rule 42 (1) provides as follows: -

 

“The court may in addition to any other powers it may have, mero motu

 

or upon 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;

 

(b) An order or judgment in which there is an ambiguity or a patent error or

 

omission but only to the effect of such ambiguity, error or omission;

 

(c) An order or judgment granted as a result of a mistake common to the

 

parties.”

 

In Monama and Another .V. Nedbank Limited 41092/16 [2020]

 

ZAGPPHC 70 at 18 and 19 the Court referred to Rule 42 (1) (a) as follows:

 

 

“Generally speaking 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. An order is

 

also erroneously granted if there was an irregularity in the proceedings or

 

if it was not legally competent for the court to have made such order.”

 

See also Bakoven Ltd .V. GJ Howes (Pty) Ltd 1992 (2) SA 466

 

(ECD) at 471 E-1.

 

 

In terms of Rule 42 (1) the applicant needs not show good cause. It is

 

expected of the applicant to show that the order or judgment was

 

erroneously sought or erroneously granted to persuade the court to vary

 

or rescind the particular order.

 

 

Common law

 

The application for rescission of judgment in terms of the common law

 

may be brought on the following grounds: -

 

(1) Fraud;

 

(2) iustus error;

 

(3) discovery of new documents only in exceptional circumstances;

 

(4) in the instance where default judgment was granted by default.

 

 

All what the applicant has to show for the judgment or order to be set aside

 

is that: -

 

(1) There must be a reasonable explanation for the default;

 

(2) The applicant must show that the application was made bona fide; and

 

(3) The applicant must show that he has a bona fide defence which prima

 

facie has some prospect of success. See Chetty .V. Law Society

 

Transvaal 1985 (2) SA 756 at 764 – 765E.

 

 

 

Applicant’s contention

 

 

[36] The applicant submitted that the first respondent has instituted at least

 

four actions relating to the same cause of action against her. The fourth

 

claim is the one presently before this court. The first respondent withdrew

 

the first and second actions under cases numbers 257/2008 and

 

28968/2010 respectively. An action instituted by the first respondent

 

under case number 4867/2011 was unopposed by the applicant. A default

 

judgment was granted. The first respondent subsequenty abandoned the

 

said judgment as it was alleged that the summons were not properly

 

served and it was served on an incorrect domicilium. The summons

 

(4867/2011) were ultimately served at the preferred address of the

 

applicant during August 2015. As the applicant failed to defend the said

 

action, a default judgment was granted against the applicant. The

 

applicant launched a rescission application during 2016 to

 

rescind the default judgment. The basis of her opposition were that inter

 

alia a repeat of the grounds raised in her 2011 rescission application

 

which she subsequently abandoned in 2011 application.

 

 

[37] The applicant alleged that she has recently discovered two letters dated

 

14 April 2015 wherein she alerted the first respondent that she has

 

changed her domicilium address. She argued that summons in the 2015

 

action was not served by the Sheriff as alleged. Consequently according to

 

the applicant, the default judgment ought not to have been granted. The

 

applicant launched rescission application contending that the first

 

respondent has waived its rights to claim against her when it abandoned

 

the 2011 judgment and secondly that the claim has prescribed. The

 

applicant contended that the first respondent failed to comply with the

 

NCA as it served its Section 129 notice at a wrong domicilium as she has

 

changed her address as per the letters of 14 April 2015 addressed to the

 

first respondent. It is the applicant’s submission that her application for

 

rescission should succeed as she has raised good defences to the first

 

respondent’s claim.

 

 

Respondent’s argument

 

 

[38] Counsel for first respondent contends that the applicant failed to make out

 

a case for rescission. It is argued that the applicant’s evidence as per her

 

affidavits made under oath, shows lack of bona fides on her part and

 

serious challenges on applicant’s credibility. The first respondent

 

submitted that the applicant in her rescission application during 2011

 

contended the summons was not properly served as it was served at an

 

address which was not her domicilium. Her application to rescind the 2011

 

judgment was dimissed as well as her application for leave to appeal. She

 

attached a copy of a letter which purported that she had changed her

 

address to 10A Torwood Road, Forest Town Johannesburg. The

 

Constitutional Court dismissed her application.

 

 

[39] In an attempt to curtail further delays and be involved in further rescission

 

applications, the first respondent and the applicant agreed that summons

 

be served at the new address being 10A Torwood Road, Forest Town,

 

Johannesburg. The applicant raised no objections relating to the

 

domicilium address. As mentioned above in the 2016 rescission application

 

thus confirming its correctness.

 

 

[40] It was argued on behalf of the first respondent that despite the applicant

 

having confirmed her domucilium address, she changed her tune in this

 

application and alleges that she actually changed her address as per the

 

letters of 14 April 2015 to 49 Crown Road Fordsburg Johannesburg. It is

 

submitted by the first respondent that the applicant’s conduct is the abuse

 

of the court’s process and demonstrates the applicant’s lack of bona fides

 

and her credibility. Despite the applicant having abandoned her defences

 

for waiver of a right to claim and prescription, she again raised the same

 

defences in her present rescission application. It is submitted by the first

 

respondent that the aforementioned conduct is an indictment aganst the

 

applicant’s bona fides and her lack of credibility. The first respondent

 

contended that the defences raised by the applicant lack merit and are

 

not sustainable.

 

 

[41] According to the first respondent the launching of this application and

 

pursuit of further applications by the applicant in instances where the

 

court has already made a determination, the principle of res jiducata bars

 

the applicant from endlessly bringing applications on issues already

 

decided by the Court. The first respondent argued that apart from

 

applicant’s failure to discover the letters under Rule 35 (12) the applicant

 

is prohibited from raising new defence by the once and for all rule. The

 

contention of the applicant that her new evidence (letters of 14 April

 

2015) entitles her to bring this application is unfounded in law. It is the

 

first respondent’s contention that the applicant’s application for rescission

 

is not made in good faith and that it is bad in law. Accordingoly the first

 

respondent prays for the dismissal of the application with costs.

 

 

 

Analysis

 

 

[42] It is common cause that the applicant’s attempts to rescind the default

 

judgments granted against her relating to the claim by the first

 

respondent were dismissed on three occassions including the ruling

 

against her by the Constitutional Court. Basically the defences raised by

 

the applicant in this application are issues already dealt with and

 

conceded by the applicant in previous applications. The only exception to

 

those issues are the applicant’s new defence emanating from the letters

 

dated 14 April 2015 allegedly, she luckily found in her personal file,

 

contends thereof confirming a change of her domicilium address. At a pain

 

of repetition the defences referred above pertains to the first respondent

 

having abandoned its right to claim prescription and the summons having

 

improperly served at a wrong address.

 

 

[43] The applicant having formally abandoned her defences of waiver of the

 

first respondent’s right to claim, prescription, res judicata ad having

 

provided a preferred address for service of summons, laid such defences

 

to rest and in my view cannot be resucitated in this application. It should

 

be mentioned that when abandoning the 2011 default judgment the first

 

respondent specifically made it clear that it is in no way abandoning its

 

claim or right of action. For the applicant to simly persist on this defence

 

speaks volumes of her mala fides. The applicant’s conduct in my view, is

 

nothing else but an abuse of court process which hinders the

 

administration of justice and has to be discouraged.I am of the opinion

 

that the only defence that needs to be considered is that of the newly

 

discovered letters of 14 April 2015. The applicant’s contention that by

 

sheer luck while perusing her file, the two letters reffered to were

 

discovered is at most questionable.

 

 

[44] It is to be noted that the parties agreed that the first respondent is to

 

institute a new claim which was to be served at the applicant’s address as

 

contained in an affidavit delivered at the Constitutional Court. Accordingly

 

and in line with the parties’ agreement the summons was issued during

 

August 2015 and served at the given address by the applicant. For the

 

applicant to now disavow what is contained in her affidavit to the

 

Constitutional Court relating to her domicilium address, surely goes to the

 

heart of her credibility and bona fides in this application. The court takes

 

a dim view of the applicant’s conduct and the said conduct cannot

 

therefore be condoned.

 

 

[45] The first respondent called for the discovery of the two letters of 14 April

 

2015 in terms of Rule 35 (12) and the applicant refused to comply with

 

her obligations under the Rules of Court to do so. I have to date struggle

 

to find a congent reason from the applicant why she cannot simply

 

provide the originals of the said letters. As alluded above, the first

 

respondent then became excused from delivering its answering affidavit.

 

However even when the first respondent was not obliged to do so, the

 

answering affidavit was delivered which to date was met with no response

 

from the applicant. The question to be asked is whether under the

 

circumstances of this application, is the applicant entitled to raise her new

 

defence.

 

 

[46] In my view, it is impermissible to allow the applicant to introduce new

 

evidence in this application as she is barred by the once and for all rule

 

principle.

 

The court held in Henderson .V. Henderson (1843) Hare 100 at

 

page 115 that

 

“In trying this question I believe that I state the rule of Court correctly

 

when I say that where given matter becomes the subject matter of

 

litigation in, and of adjudication by, a Court of competent jurisdiction, the

 

Court requires the parties to that litigation to bring forward their whole

 

case, and will not (except under special circumstances) permit the same

 

parties to open the same subject of litigation in respect of matter which

 

might have been brought forward as part of the subject in contest, but

 

which was not brought forward as part of the subject in contest, but

 

which was not brought forward, only because they have from negligence,

 

inadvertence or even accident omitted part of their case.”

 

Our courts have accordingly adopted the once and for all principle

 

aforementioned in the following cases: -

 

 

Bafokeng Tribe .V. Impala Platinum Ltd and others 1999 (3) SA

 

517 at 562 G-J.

 

Consol Ltd t/a Glass .V.Twee Jonge Gezellen (Pty) Ltd and

 

Another (2) 2005 (6) SA (c).

 

 

[47] The applicant having raised identical issues and having made

 

concession in her previous rescission application is prohibited from

 

embarking ad infinitum on such issues raised lest she flouts the res

 

judicata principle. The principle of res judicata dictates that in instances

 

where the issues raised by the parties in a contest between them were

 

judicially considered by a competent court and a determination made a

 

party is not allowed to proceed against the other party on the same issue

 

and cause of action already determined.

 

The purpose of the principle is to provide finality to litigation and

 

continued litigation on the same merits already decided upon should be

 

discouraged.

 

 

 

 

It was held in Mbatha .V. University of Zululand (2013) ZACC 43

 

2014 (2) BCLR 123 (CC) at paragraphs 193-197 that a subsequent

 

attempt by one party to persistently proceed against the other party on

 

the same cause of action on identical issues should be discouraged.

 

 

[48] It is settled law that the doctrine of res judicata has to be carefully

 

considered in order to avoid actual injustice to the other party and may in

 

appropriate circumstances be adapted and expanded to avoid

 

unacceptable alternative that the courts cling to old doctrines with literal

 

formalism.

 

i. See Kommissaris Van Binnelandse Inkomste .V. Absa Bank

 

BPK 1995 (1) SA 653 A t 669 F-H;

 

ii. Bafokeng Tribe .V. Impala Platinum Ltd and

 

others 1999 (3) SA 517(B) at 556 E-F.

 

I find that in this application there are no exceptional and special

 

circumstances to deviate from Henderson and res judicata principles, in

 

the contrary, I find that the first respondent will suffer actual injustice and

 

further hardship as the applicant has been occupying the property under

 

dispute without effecting any payments whatsoever. I am of the view that

 

it is time that the dispute between the parties that span over a decade

 

and half had to come to a finality.

 

 

[49] The applicant (Rooksana Dhoda) premised her application in terms of Rule

 

42 (1) (i.e the default judgment was erroneously sought and granted).

 

She further contended that she actually have good defences to the claim

 

against her. It is upon the applicant to establish her bona fide defences

 

which must be sufficiently disclosed including their nature of grounds.

 

Where the applicant relies on Rule 42 (1) and / or common law, such

 

applicant must satisfy the requirements thereof.

 

 

[50] The defences relied upon by the applicant (abandonment of the claim by

 

the first respondent, prescription ad that the summons were not properly

 

served at her domicilium address) were abandoned by the applicant

 

herself. A new and fresh defence of discovery of new evidence, (letters of

 

the 14 April 2015) could not be considered by the Court as the applicant

 

refused and failed to take this Court into its confidence in producing the

 

said letters when required to do so. In terms of Rule 35 (12) effectively

 

the alleged original letters of the 14 April 2015 are not before this Court.

 

My earlier finding that the first respondent was not and is not obliged and

 

cannot be compelled to deliver its answering affidavit according to me

 

sounded a death knell to the applicant’s defence based on late delivery of

 

the answering affidavit.

 

 

[51] An unavoidable question is under the circumstances, which defence(s) are

 

to be considered by this Court as raised by the applicant?

 

It goes without saying that the brutal truth in my view, is that there are

 

no longer defences raised by the applicant calling for determination. I find

 

that the applicant has failed to establish any bona fide defences to the

 

claim against her worthy to be ventilated which are competent in law.

 

 

[52] The contrary versions contained in the applicant’s sworn affidavits and her

 

insistence of rehashing defences already dismissed and finalized by a

 

competent Court, leads in my opinion to only one thing, that is, the

 

applicant had not been candid and her application falls short in showing

 

that the application is made bona fide. See Naidoo and Another .V.

 

Matlala NO and others 2012 (1) SA 145 GNP at 152 H-I.

 

 

[53] As far as the requirements of Rule 42 (1) are concerned, are conspicuous

 

by their absence in the applicant’s papers. It is not sufficient for the

 

applicant to merely allege that the default judgment was sought and

 

granted erroneously.

 

The applicant has among others, show that at the time of the granting of

 

the judgment the court was not aware of a fact that existed which would

 

precluded the granting of the judgment or if an irregularity existed in the

 

proceedings or if it was not legally competent for the Court to do so.

 

See Monama and Another .V. Nedbank cited above.

 

 

[54] Regarding the application for rescission of judgment in terms of the

 

common law, the Court in Naidoo .V. Matlala NO 2021 (1) SATS 143

 

at 152 H-I stated that in order for the default judgment to be set aside

 

the applicant has to satisfy the common law elements and must show that

 

sufficient cause for rescission exists.

 

The onus rest on the applicant to give a reasonable explanation which is

 

acceptable for his default, he must show that her application is made

 

bona fide and then on the merits he has a bona fide defence which prima

 

facie has some prospect of success. The averment that the judgment was

 

erroneously sought and granted is not supported by any evidence.

 

 

[55] Having found that there are no bona fide defences and the applicant also

 

having abandoned her defences, the logical conclusion in my view is that

 

there is in fact no case before this Court presented by the applicant.

 

I am of the view that the numerous and endless rescission application by

 

the applicant are nothing else but an abuse of the Court process with its

 

sole purpose being to frustrate, delay and drag this matter unnecessarily

 

and to greatly prejudice the interest of both the first respondent and

 

administration of justice.

 

As the adage goes, justice delayed is justice denied. In the premises I

 

hold that the first respondent did not erroneously grant the order and that

 

there are no bona fide defences to the first respondent’s claims.

 

 

 

 

Costs

 

[56] The first respondent seeks a punitive costs order against the applicant.

 

It is contended by the first respondent that the sole cause of the delay in

 

this matter lies with the applicant. The conduct of the applicant is not only

 

fraudulent but also an abuse of the court process so argued the first

 

respondent.

 

It is argued on behalf of the first respondent that the applicant’s

 

application is not only mala fide but it is also bad in law.

 

 

[57] On the other hand the applicant submitted that in the event the Court

 

granting condonation, the applicant be given an opportunity to deliver its

 

replying affidavit and tendered costs thereof. Should the condonation

 

application be dismissed the first respondent’s defence contained in its

 

answering be struck out with costs.

 

It is generally accepted that costs follow the results. A successful party is

 

therefore entitled to his / her costs unless ordered otherwise by the Court.

 

In Ferreira .V. Levin NO and Others 1996 (2) SA 621 (cc) at 624

 

B-C par [3] the Court held that the award of costs unless otherwise

 

enacted, is the discretion of Court. The facts of each and every case are

 

to be considered by the Court when exercising its discretion and has to be

 

fair and just to all the parties.

 

 

 

[58] Costs on a punitive scale will only be awarded in appropriate and

exceptional circumstances. A punitive costs order may be awarded in the

 

event inter alia, that a litigant has been dishonest, reckless, vexatious

 

frivolous and fraudulent.

 

 

[59] Considering the facts of this matter and the conduct of the applicant as

 

described aforementioned, forces this Court to discourage this flagrant,

 

dishonest and fraudulent conduct by the applicant. To simply disregard

 

averments made under oath and contradict this with mala fides and

 

untruths deserve the sanction of such behaviour by the court. This court

 

takes a dim view of the conduct which is unacceptable as displayed by the

 

applicant in her application. It has with respect in my view to be

 

discouraged.

 

 

[60] After considering the facts of this matter I find that the Court and the first

 

respondent should not have been put through the full process of this

 

application. The rescission applications on identified issues by the

 

applicant despite the courts having dismissed them are abuse of the

 

court’s processes clouded with mala fides and dishonesty. The purpose

 

thereof being to delay the finalization of this matter to the detriment of

 

the first respondent with no adverse consequence to the applicant as she

 

to date occupies and enjoys the benefits of the property at no costs

 

contrary to the parties’ loan agreement.

 

A punitive costs is therefore warranted.

ORDER

 

I therefore make the following order: -

 

1. The application for condonation for the late filing of the answering

 

affidavit is granted;

 

2. The application for rescission of the default judgment is dismissed;

 

3. The applicant to pay costs on attorney and client’s scale.

 

 

__________________________

S S MADIBA

 

ACTING JUDGE OF THE HIGH COURT

 

GAUTENG DIVISION PRETORIA

 

 

APPEARANCES:

 

FOR THE APPLICANT: NASEERA ALI

 

INSTRUCTED BY: VALLY CHAGAN & ASSOCIATES

25 OWEL STREET

AUCKLAND PARK JHB

TEL: 011 834 2233

E MAIL: admin@vallychagan.co.za

 

 

FOR THE FIRST RESPONDENT: N KONSTANTINIDES SC

 

INSTRUCTED BY: VAN HULSTEYNS ATTORNEYS

114 WEST STREET

SANDOWN, SANDTON

TEL: 011 523 5300

E MAIL: daniel@vhlaw.co.za

 

DATE OF HEARING: 08 MARCH 2022

 

DATE OF JUDGMENT: 26 SEPTEMBER 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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