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South Africa Judgment

South Gauteng High Court, Johannesburg

African Oxygen Limited v MECS Contract Filling and Manufacturing Sebenza (Pty) Ltd (2020/10012) [2023] ZAGPJHC 944 (24 August 2023)

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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 Reddy

MECS Contract Filling and Manufacturing Sebenza (Pty) Ltd

Respondent Counsel: M Baloyi

Amounts 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

  1. Posture

    Urgent Application / Postponement and Costs Order

04

Questions and positions

Legal issues

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

  1. 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.

  2. 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

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Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2023] ZAGPJHC 944

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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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Practice Manual of 2018

Legislation

Legislation referenced in the available case record.

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