South Africa Ruling

Northern Cape High Court, Kimberley

Augustyn v Minister of Defence (918/2011) [2017] ZANCHC 59 (6 October 2017)

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Source document

01

Holding and result

The court found that the debt in question arose from money allocated by the State for the applicant's training, subject to agreed conditions. Upon breach, the amount became due to the State, satisfying the requirements of section 11(b) of the Prescription Act. The court held that the main judgment adequately addressed the application of Holeni v Land Agricultural Development Bank of SA and the relevant statutory provisions. The applicant failed to demonstrate reasonable prospects of success on appeal, as the facts and law were correctly applied. The application for leave to appeal was therefore dismissed with costs.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs.

02

Material facts

Parties

Hein Augustyn

Applicant Counsel: Adv AD Olivier

Minister of Defence

Respondent Counsel: Adv S Motloung

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal to the Full Bench

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the facts of Holeni v Land Agricultural Development Bank of SA are distinguishable and should not apply. He argues that the debt does not arise from an advance or loan granted by the respondent, and therefore falls under section 11(d) of the Prescription Act, which prescribes after three years. He submits that the conjunction 'and' in section 11(b) requires both requirements to be met, which has not occurred. The applicant asserts that another court could reasonably reach a different conclusion and that there are reasonable prospects of success on appeal.
Respondent
The respondent maintains that the debt arises from money allocated by the State for the applicant's training, subject to conditions agreed upon by the applicant. Upon breach of those conditions, the amount becomes due and payable to the State. The respondent argues that the debt falls squarely under section 11(b) of the Prescription Act, which prescribes after fifteen years, and that the main judgment correctly applied the law and relevant precedents. The respondent submits that there are no reasonable prospects of success on appeal.

05

Court’s reasoning

  1. 01

    Superior Courts Act, 10 of 2013, s 17

    Leave to appeal may only be granted if there are reasonable prospects of success or another compelling reason, as set out in section 17 of the Superior Courts Act.

  2. 02

    S v Smith 2012 (1) SACR 567 (SCA)

    The test for reasonable prospects of success requires a sound, rational basis for concluding that an appeal could succeed, not merely that the case is arguable.

  3. 03

    Prescription Act, 68 of 1969, s 11(b)

    Debts owed to the State arising out of an advance or loan of money prescribe after fifteen years, unless otherwise provided.

  4. 04

    Prescription Act, 68 of 1969, s 11(d)

    Other debts prescribe after three years unless an Act of Parliament provides otherwise.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the debt in question arose from money allocated by the State for the applicant's training, subject to agreed conditions. Upon breach, the amount became due to the State, satisfying the requirements of section 11(b) of the Prescription Act. The court held that the main judgment adequately addressed the application of Holeni v Land Agricultural Development Bank of SA and the relevant statutory provisions. The applicant failed to demonstrate reasonable prospects of success on appeal, as the facts and law were correctly applied. The application for leave to appeal was therefore dismissed with costs.

Obiter and limits

  • The court reiterated the importance of applying the test for reasonable prospects of success scrupulously in the interests of justice, as set out in S v Smith and S v Kruger.
  • The use of the conjunction 'and' in section 11(b) of the Prescription Act requires both requirements to be met, but in this case, the facts satisfy those requirements.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal is dismissed with costs.

Source and reliance status

Northern Cape High Court, Kimberley

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Judgment reading view

Judgment text

The complete available source text.

Source document

Northern Cape High Court, Kimberley

Ruling

[2017] ZANCHC 59

IN

THE HIGH COURT OF SOUTH AFRICA

NORTHERN CAPE DIVISION, KIMBERLEY

Case No: 918/2011 Heard on: 22/09/2017

Delivered on: 06/10/ 2017

In the matter between:

HEIN

AUGUSTYN

APPLICANT

And

THE

MINISTER OF

DEFENCE

RESPONDENT

JUDGMENT:

APPLICATION FOR LEAVE TO APPEAL

MAMOSEBOJ

[1] The applicant, Hein Augustyn, seeks leave to appeal to the Full Bench of the Northern Cape Division against the whole of my judgment and order granted on 07 July 2017 in which I dismissed his special plea with costs.

[2] The grounds upon which the applicant relies are that I erred in finding:

2.1 That the matter of Holeni v Land Agricultural development Bank of SA[1] finds application in casu while the facts are distinguishable;

2.2 That the claim arose from an advance or loan granted by the

respondent to the applicant;

2.3 That the debt does not fall under s I 1(d)[2] which prescribes after a period of three years;

2.4 That the respondent has made out a case that his debt is covered under s 1 I (b) of the Act.

[3] The contention by the applicant is that another Court could reasonably arrive at a different conclusion than that which I have

reached. The test to be applied in determining whether an application for leave to appeal

should be granted or not is governed by s 17[3] which stipulates:

"(1) Leave to appeal may only be given where the judge or judges concerned are of the opinion that -

(a) (i)the appeal would have reasonable prospects of success; or (ii)there is some other compelling reason why the appeal should be heard, including conflicting judgments on the matter under consideration;

(b) The decision sought on appeal does not fall within the ambit of s 16(2)(a),· and

(c) Where the decision sought to be appealed does not dispose of all issues in the case, the appeal would lead to a just and prompt resolution of the real issues between the parties. "

[4] In S v Smith[4] Plasket AJA stressed:

''[7] What the test of reasonable prospects of success postulates is a dispassionate decision, based on the facts and the law, that a court of appeal could reasonably arrive at a conclusion different to that of the trial court. In order to succeed, therefore, the appellant must convince this court on proper grounds that he has prospects of success on appeal and that those prospects are not remote but have a realistic chance of succeeding. More is required to be established than that there is a mere possibility of success, that the case is arguable on appeal or that the case cannot be categorised as hopeless. There must, in other words, be a sound, rational basis for the conclusion that there are prospects of success on appeal. "

As reiterated by Leach JA in S v Kruger[5] the Courts should follow the aforementioned test scrupulously in the interests of justice.

[5] Following the submissions by counsel the crux of the dispute in this matter is whether this claim falls under s 11(b) or (d) of the Prescription Act[6] Adv Olivier, for the applicant, reiterated the common cause in as far as the respondent being the State and therefore meeting the first leg of the requirement in 11(b). Counsel's further submission was that the use of the conjunction "and" between the first leg of the requirement and the second leg, that is, "and arising out of an advance or loan of money", makes it imperative for the second requirement to also be met, which has not been met and therefore the dispute must fail. I do not agree for the reasons that follow.

[6] It is common cause that the respondent is the state. This means that a determinable amount of money came from the fiscus or budget of the state to pay for the training of the applicant in return for his services for a determined period. The condition attached was that should he leave before the expiry of that period he will have to repay, not to an individual but the state, the apportioned amount of what was due and owing to the state. The applicant sought to convince me that this second leg of the requirement was not met because there was no advance or loan awarded to the applicant. This argument misses the mark. What is not in contention is that an amount of money was allocated for his training on terms and conditions he agreed to and which amount is now due and payable because he breached them.

[7] Having regard to the above guidance by the Supreme Court of Appeal

and having dispassionately considered the application I am of the view that the main judgment has adequately dealt with the aspect that the period of prescription is indeed 15 years under s 11(b) of the Prescription Act. The main judgment demonstrates adequately how I followed the Holeni judgment and requires no repetition. I am satisfied that the applicant has no reasonable prospects of success on appeal and his application stands to fail. I am not swayed that a court of appeal could reasonably arrive at a conclusion different to the one that I have reached.

[8] In the result the following order is made:

The application for leave to appeal is dismissed with costs.

_____

MAMOSEBO

J

NORTHERN

CAPE HIGH COURT

For the applicant:

Adv AD Olivier

Instructed by:

Haarhoffs Inc

For the respondent: Adv S Motloung

Instructed by:

The State Attorney

[1] [2009] 3 All SA 22 (SCA)

[2] Of the Prescription Act, 68 of 1969

[3] Of the Superior Courts Act, 10 of2013

[4] 2012 ( 1 ) SACR 567 (SCA) para 7

[5] 2014 ( 1) SACR 647 (SCA) at 649d (para3)

[6] Sec 11 of the Prescription Act, 68 of 1969, deals with the periods of prescription of debts and stipulates that: "The periods of prescription of debts shall be the following: (b) Fifteen years in respect of any debt owed to the State and arising out of an advance or loan of money or a sale or lease of land by the State to the debtor, unless a longer period applies in respect of the debt in question in terms of paragraph (a); (c) - (d) Save where an Act of Parliament provides otherwise, three years in respect of any other debt".

[6] Sec 11 of the Prescription Act, 68 of 1969, deals with the periods of prescription of debts and stipulates that: "The periods of prescription of debts shall be the following:

(b) Fifteen years in respect of any debt owed to the State and arising out of an advance or loan of money or a sale or lease of land by the State to the debtor, unless a longer period applies in respect of the debt in question in terms of paragraph (a);

(c) -

(d) Save where an Act of Parliament provides otherwise, three years in respect of any other debt".

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Authorities

Authorities used by the court

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

Holeni v Land Agricultural Development Bank of SA [2009] 3 All SA 22 (SCA)

Case cited

S v Smith 2012 (1) SACR 567 (SCA)

Case cited

S v Kruger 2014 (1) SACR 647 (SCA)

Case cited

Prescription Act, 68 of 1969

Legislation

Legislation referenced in the available case record.

Superior Courts Act, 10 of 2013

Legislation

Legislation referenced in the available case record.

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