D-Kon Developments CC v Nwedamutswu N.O and Another (23508/16) [2021] ZAGPPHC 754 (28 October 2021)
- Citation
- [2021] ZAGPPHC 754
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- E van der Schyff
- Case number
- 23508/16
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- E van der Schyff
- Case number
- 23508/16
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the existence of factual disputes and the prescription defence raised by the defendants justified the refusal of provisional sentence. The plaintiff conceded that disputes exist, and the defendants succeeded in demonstrating an even balance of prospects of success in the main case. The matter is therefore converted to a trial action, with the provisional summons standing as a normal summons and the defendants ordered to file a plea. Costs are ordered to be costs in the cause, as the defendants were justified in opposing the application and the issues require proper ventilation at trial.
Court disposition
Provisional sentence refused; matter converted to trial; costs in the cause.
Orders
- Provisional sentence is refused.
- The defendant is to deliver a plea to the plaintiff’s provisional sentence summons within 15 days of the date of this order.
- Costs are costs in the cause.
02
Material facts
Parties
D-Kon Developments CC
Applicant Counsel: Adv. D R du ToitM J Nwedamutswu N.O.
Respondent Counsel: Adv. P MarxT S Nwedamutswu N.O.
Respondent Counsel: Adv. P MarxAmounts and remedies
- Claim Amount: ZAR 5,152,079
03
Procedural history
Posture
Provisional Sentence Application / Provisional Sentence Application; Conversion to Trial
04
Questions and positions
Legal issues
- 01
Whether the plaintiff is entitled to provisional sentence based on payment certificates deemed to be liquid documents.
- 02
Whether the defendants' prescription defence is valid and should result in dismissal of the claim.
- 03
Whether factual disputes justify refusal of provisional sentence and conversion to trial.
Party arguments
- Applicant
- The plaintiff claims R5,152,079.00 based on payment certificates, asserting these are liquid documents entitling it to provisional sentence. At the hearing, plaintiff's counsel conceded that factual disputes exist and requested the matter proceed to trial, with the defendants directed to file a plea.
- Respondent
- The defendants argue that the claim has prescribed and that the payment certificates relied upon do not bind the Trust. They request the court to finally decide the prescription issue and dismiss the application, asserting that provisional sentence should not be granted.
05
Court’s reasoning
Legal principles
- 01
Theophilopoulos, C., Van Heerden, CM., and Boraine, A. Fundamental Principles of Civil Procedure. 3rd ed. LexisNexis, 369
Provisional sentence will be refused if the plaintiff fails to discharge the onus of proof on a balance of probabilities or if the defendant convinces the court that the probabilities of success in the principal case are against the plaintiff. The matter is then converted into a trial action, with the provisional summons standing as a normal summons and the defendant ordered to file a plea.
- 02
Twee Jonge Gezellen (Pty) Ltd v Land and Agricultural Development Bank of South Africa t/a The Land Bank 2011 (3) SA 1 (CC)
Where factual disputes and a prescription defence are raised, refusal of provisional sentence is justified and the matter should proceed to trial.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the existence of factual disputes and the prescription defence raised by the defendants justified the refusal of provisional sentence. The plaintiff conceded that disputes exist, and the defendants succeeded in demonstrating an even balance of prospects of success in the main case. The matter is therefore converted to a trial action, with the provisional summons standing as a normal summons and the defendants ordered to file a plea. Costs are ordered to be costs in the cause, as the defendants were justified in opposing the application and the issues require proper ventilation at trial.
Obiter and limits
- The court is not inclined to deal definitively with the prescription issue at this juncture, as the factual disputes require resolution at trial.
- It is in the interest of justice that all issues, including prescription, be properly ventilated in a trial process.
Court disposition
Provisional sentence refused; matter converted to trial; costs in the cause.
- Provisional sentence is refused.
- The defendant is to deliver a plea to the plaintiff’s provisional sentence summons within 15 days of the date of this order.
- Costs are costs in the cause.
Source and reliance status
North Gauteng High Court, Pretoria
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.
North Gauteng High Court, Pretoria
Judgment
REPUBLIC OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
(1) REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3) REVISED: NO
Date: 28 October 2021
CASE NO: 23508/16
In the matter between:
D-KON DEVELOPMENT CC
PLAINTIFF / APPLICANT
and
M J NWEDAMUTSWU N.O.
1ST DEFENDANT/ RESPONDENT
T S NWEDAMUTSWU N.O.
2ND DEFENDANT/
RESPONDENT
JUDGMENT
[1] The plaintiff issued a provisional sentence summons claiming an amount of R5 152 079.00 from the defendants. The claim is based on payments certificates which are deemed to be liquid documents.
[2] The defendants filed an answering affidavit as provided for in terms of Rule 8 of the Uniform Rules of Court. The defendants raised two points in limine, but persisted only with the first, namely that it claims that the claim prescribed. The defendants in addition aver that the ‘apparent liquid documents relied upon by the plaintiff did not bind the Trust’ and that provisional
sentence should not be granted.
[3] At the hearing, counsel for the plaintiff conceded that a number of factual disputes arise from the defendants’ answering affidavit and submitted that the matter should proceed to trial and that the defendants be directed to file a plea. Counsel for the defendants submitted that this court should finally decide the prescription issue, and dismiss the application because the claim has prescribed.
[4] The factual disputes, and the prescription defence raised by the defendant justify the refusal of provisional sentence. The defendants succeeded in convincing me of an even balance of prospects of success in the main case.[1] I am not at this juncture inclined to deal with the matter definitively. Theophilopoulos et al.,[2] explains with reference to applicable case law:
‘20.4 The further process when provisional sentence is refused Provisional sentence will be refused when the plaintiff fails to discharge his or her onus of proof on a balance of probabilities or when the defendant succeeds in discharging the onus of convincing the court that the probabilities of success in the principal case are against the plaintiff. The matter is converted into a trial action, and the rules of pleading and conduct of a trial action will apply mutatis mutandis. The matter proceeds to trial in the usual way, with the court ordering the provisional summons to stand as a normal summons and the defendant to file a plea in the stated time. … During this conversion process the court has the discretion to award an order of costs as it may deem just.’ (Footnotes omitted).
[5] As far as costs are concerned, the plaintiff submitted that the defendants should be held liable for the costs of the day since the plaintiff has indicated its view that the matter proceed to trial in correspondence to the defendants. In light of the existence of the factual disputes which were not denied by the plaintiff, and ought to have been foreseen, I am of the view that the defendants were justified to oppose the application. I am also of the view that it is in the interest of justice that the issues between the parties, including the prescription defence, be properly ventilated. In these circumstances, it is justified to order that costs be costs in the cause.
ORDER
In the result, the following order is made:
1. Provisional sentence is refused;
2. The defendant is to deliver a plea to the plaintiff’s provisional sentence summons within 15 days of the date of this order;
3. Costs are costs in the cause.
E van der Schyff
Judge of the High Court
Delivered: This judgement is handed down electronically by uploading it to the electronic file of this matter on CaseLines. As a courtesy gesture, it will be sent to the parties/their legal representatives by email. The date for hand-down is deemed to be 28 October 2021.
Counsel for the plaintiff:
Adv. D R du Toit
Instructed by:
Rudman & Associates Inc.
Counsel for the defendants:
Adv. P Marx
Instructed by:
Tracy Sischy Attorneys
Date of the hearing:
26 October 2021
Date of judgment:
28 October 2021
[1] Twee Jonge Gezellen (Pty) ltd v Land and Agricultural Development Bank of South Africa t/a The Land Bank 2011 (3) SA 1 (CC).
[2] Theophilopoulos, C., Van Heerden, CM., and Boraine, A. Fundamental Principles of Civil Procedure. 3rd ed. LexisNexis, 369
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