African Oxygen Limited v MECS Contract Filling and Manufacturing Sebenza (Pty) Ltd (2020/10012) [2023] ZAGPJHC 944 (24 August 2023)
- Citation
- [2023] ZAGPJHC 944
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Moorcroft
- Case number
- 2020/10012
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- Moorcroft
- Case number
- 2020/10012
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the respondent failed to comply with the procedural requirements for seeking a postponement, specifically by not filing a substantive application for condonation. Despite this, the court exercised its discretion to grant a postponement to allow the respondent to oppose the application, given the recent change in legal representation. However, the respondent was penalized for its procedural failures by being ordered to pay the wasted costs of the postponement on the opposed scale as between attorney and own client. The court relied on the Practice Manual and general principles governing postponements and costs in civil procedure.
Court disposition
Application postponed; respondent to pay wasted costs of postponement on attorney and own client scale.
Orders
- The application is postponed to 10 October 2023.
- The respondent is ordered to file its answering affidavits before or on 5 September 2023.
- The applicant is ordered to file its replying affidavits on or before 12 September 2023.
- The parties are ordered to file heads of argument and practice notes by no later than 25 September 2023.
- The respondent is ordered to pay the wasted costs of the postponement on the opposed scale as between attorney and own client.
02
Material facts
Parties
African Oxygen Limited
Applicant Counsel: K ReddyMECS Contract Filling and Manufacturing Sebenza (Pty) Ltd
Respondent Counsel: M BaloyiAmounts and remedies
- Agreed Debt in Settlement Agreement: ZAR 1,900,000
- Monthly Instalment Amount: ZAR 100,000
- Contribution Towards Costs: ZAR 50,000
- Admitted Liability Amount: ZAR 3,276,333.67
- Interest Rate Per Annum: ZAR 10.5
03
Procedural history
Posture
Urgent Application / Postponement and Costs Order
04
Questions and positions
Legal issues
- 01
Whether the respondent is entitled to an indulgence to oppose the application despite failing to apply for condonation and postponement.
- 02
Whether the respondent should bear the wasted costs of the postponement on the attorney and own client scale.
- 03
Whether the procedural requirements of the Practice Manual were complied with.
Party arguments
- Applicant
- The applicant argued that the respondent failed to comply with the settlement agreement, having paid only the R50,000 contribution towards legal costs and none of the agreed instalments. The applicant opposed any postponement, insisting that the respondent should bring a substantive application for condonation and postponement, and that the respondent should bear the wasted costs due to its procedural failures.
- Respondent
- The respondent, through newly appointed counsel, sought an indulgence from the bar for a postponement to enable it to oppose the application. The respondent did not file a formal application for condonation or postponement and relied on the court's discretion and the circumstances of the change in legal representation.
05
Court’s reasoning
Legal principles
- 01
Practice Manual of 2018, paragraph 9.9.9.4
A party seeking a postponement must apply for condonation and provide substantive reasons for the indulgence.
- 02
General principles of costs in South African civil procedure
Where a postponement is granted due to a party's procedural default, the court may order costs on an attorney and own client scale.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the respondent failed to comply with the procedural requirements for seeking a postponement, specifically by not filing a substantive application for condonation. Despite this, the court exercised its discretion to grant a postponement to allow the respondent to oppose the application, given the recent change in legal representation. However, the respondent was penalized for its procedural failures by being ordered to pay the wasted costs of the postponement on the opposed scale as between attorney and own client. The court relied on the Practice Manual and general principles governing postponements and costs in civil procedure.
Obiter and limits
- The court noted that parties must adhere strictly to procedural requirements when seeking indulgences, especially in opposed applications.
- The judgment emphasized the importance of timely compliance with settlement agreements and the consequences of default.
Court disposition
Application postponed; respondent to pay wasted costs of postponement on attorney and own client scale.
- The application is postponed to 10 October 2023.
- The respondent is ordered to file its answering affidavits before or on 5 September 2023.
- The applicant is ordered to file its replying affidavits on or before 12 September 2023.
- The parties are ordered to file heads of argument and practice notes by no later than 25 September 2023.
- The respondent is ordered to pay the wasted costs of the postponement on the opposed scale as between attorney and own client.
Source and reliance status
South Gauteng High Court, Johannesburg
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
South Gauteng High Court, Johannesburg
Judgment
IN THE HIGH COURT OF SOUTH AFRICA,
GAUTENG DIVISION,
JOHANNESBURG
CASE NO: 2020/10012
NOT REPORTABLE
NOT OF INTEREST TO
OTHER JUDGES
In the application by
AFRICAN
OXYGEN LIMITED Applicant and
MECS CONTRACT FILLING AND MANUFACTURING SEBENZA (PTY) LTD Respondent
JUDGMENT
MOORCROFT AJ:
Summary
Respondent seeks the indulgence to oppose application – application postponed – Respondent to pay opposed costs on attorney and own client scale
Order
[1] In this matter I make the following order:
1. The application is postponed to 10 October 2023;
2. The respondent is ordered to file its answering affidavits before or on 5 September 2023;
3. The applicant is ordered to file its replying affidavits on or before 12 September 2023;
4. The parties are ordered to file heads of argument and practice notes by no later than 25 September 2023;
5. The respondent is ordered to pay the wasted costs of the postponement on the opposed scale as between attorney and own client.
[2] The reasons for the order follow below.
Introduction
[3] The parties entered into a signed settlement agreement of a trial action on 3 November 2022. In terms of the agreement the respondent
undertook to make payment of monthly instalments of R100,000 from 30 November 2022 onwards towards payment of an agreed debt of R1,900,000 together with interest at 10.5% per annum and a contribution towards costs of R50,000 payable by 17 November 2022 . In the event of non-payment the full amount sued for in the summons would become payable and the respondent admitted liability for R 3,276,333.67, and further interest at a rate 5% above the prime rate of First National Bank from 22 November 2022 until date of payment.
[4] The applicant alleges in the founding affidavit that only the R50,000 contribution towards legal costs was paid. No other payments have been made by the respondent.
[5] The present the application was served on the respondent’s attorneys of record on 1 June 2023. The application was not opposed
and on 17 July 2022 the applicant’s attorneys served the notice of set-down on the respondent’s attorneys. The set down date was 22 August 2023. On 25 July 2023 the respondent’s attorneys withdrew as attorneys of record. On 18 August 2023 the respondent’s new attorneys came on record and gave notice of an intention to oppose the application. Correspondence ensued between the attorneys and the applicant’s attorneys refused to agree to a postponement of the matter and insisted that the respondent’s attorneys bring a substantive application for condonation and a postponement on 22 August 2023.
[6] Mr Baloyi was briefed to apply from the bar for the indulgence of a postponement.
[7] The respondent failed to apply for condonation and for a postponement.
[8] Having considered the matter and having regard to paragraph 9.9.9.4 of the Practice Manual of 2018 I make the order set out in paragraph one above.
J MOORCROFT
ACTING JUDGE OF THE
HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION
JOHANNESBURG
Electronically submitted
Delivered: This judgement was prepared and authored by the Acting Judge whose name is reflected and is handed down electronically by circulation to the Parties / their legal representatives by email and by uploading it to the electronic file of this matter on CaseLines. The date of the judgment is deemed to be 24 AUGUST 2023.
COUNSEL FOR THE APPLICANT:
K REDDY
INSTRUCTED BY:
SIVUYILE MAQUNGO INC
COUNSEL FOR THE RESPONDENT:
M BALOYI
INSTRUCTED BY: MASHABANE &
ASSOCIATES
DATE OF ARGUMENT: 22 AUGUST 2023
DATE OF JUDGMENT: 24 AUGUST 2023
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