Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017) [2018] ZAGPPHC 6 (12 March 2018)

Parties

Procedural Posture

Urgent Application / Interim Interdict Application Pending Final Determination of Main Dispute

Legal Issues

1. 1 Whether the court can compel the respondent bank to continue operating in South Africa against its will.
2. 2 Whether the respondent's decision to close its South African operations constitutes contempt of a previous court order.
3. 3 Whether the applicants are entitled to an interim interdict restraining the respondent from terminating banking services pending final determination of the dispute.

Ratio Decidendi

The court held that it cannot compel the respondent, Bank of Baroda, to continue its banking operations in South Africa against its will, particularly where the bank lacks the necessary infrastructure and its correspondent banking relationship has been terminated. The respondent's decision to exit the South African market was based on commercial considerations and not in contempt of the previous court order. The applicants have an alternative remedy in damages should they prove loss resulting from the respondent's actions. The balance of convenience favours the respondent, and the right to trade, protected by the Constitution, includes the freedom to cease operations. Accordingly, the...

Court Disposition

Application dismissed with costs, including costs of senior and junior counsel.

Orders

• The application is dismissed with costs.
• The applicants are ordered jointly and severally, the one paying the other to be absolved, to pay the costs, inclusive of the costs of employing senior counsel and three junior counsel.