Ecenter Trading (Pty) Ltd and Others v First National Bank Ltd and Another (28904/2022) [2024] ZAGPPHC 318 (2 April 2024)

Ecenter Trading (Pty) Ltd and Others v First National Bank Ltd and Another (28904/2022) [2024] ZAGPPHC 318 (2 April 2024)

The court found that the applicants' application for a mandamus was not founded on a sustainable legal basis. The blocking orders were issued in accordance with the Exchange Control Regulations and the Currency and Exchanges Act, and remain valid for up to 36 months unless reviewed and set aside. The applicants did not pursue the appropriate review procedure and failed to demonstrate grounds for relief under the Act and Regulations. There is no right to be heard before the issue of a blocking order, and the relief sought was premature and incompetent. The application was accordingly dismissed with costs.

Citation
[2024] ZAGPPHC 318
Parties
Applicant: Ecenter Trading (Pty) Ltd; Applicant: Blackiron Trading (Pty) Ltd; Applicant: Ngenisa Konke Import & Export (Pty) Ltd; Applicant: Inter Space Import & Export (Pty) Ltd; Respondent: First National Bank Ltd; Respondent: The South African Reserve Bank
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
2 April 2024
Case Number
28904/2022
Procedural Posture
Urgent Application / Application for Mandamus and Costs Order; Opposed Motion
Outcome
Application dismissed with costs, including costs of two Counsel where so employed.
Judges
Nyathi
Legal Topics
Exchange Control Regulations, Blocking Orders, Mandamus, Administrative Action, Judicial Review, Right to Be Heard
Banking and Finance Administrative Law Exchange Control Regulations Blocking Orders Mandamus Administrative Action Judicial Review Right to Be Heard

Case Brief

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Parties

Ecenter Trading (Pty) Ltd

Applicant

Blackiron Trading (Pty) Ltd

Applicant

Ngenisa Konke Import & Export (Pty) Ltd

Applicant

Inter Space Import & Export (Pty) Ltd

Applicant

First National Bank Ltd

Respondent

The South African Reserve Bank

Respondent

Procedural Posture

Urgent Application / Application for Mandamus and Costs Order; Opposed Motion

Legal Issues

  1. 1 Whether the applicants are entitled to a mandamus compelling the respondents to release funds subject to blocking orders.
  2. 2 Whether the applicants were denied a right to be heard before the blocking orders were issued.
  3. 3 Whether the applicants should have pursued a judicial review under PAJA or the Currency and Exchanges Act.

Ratio Decidendi

The court found that the applicants' application for a mandamus was not founded on a sustainable legal basis. The blocking orders were issued in accordance with the Exchange Control Regulations and the Currency and Exchanges Act, and remain valid for up to 36 months unless reviewed and set aside. The applicants did not pursue the appropriate review procedure and failed to demonstrate grounds for relief under the Act and Regulations. There is no right to be heard before the issue of a blocking order, and the relief sought was premature and incompetent. The application was accordingly dismissed with costs.

Court Disposition

Application dismissed with costs, including costs of two Counsel where so employed.

Orders

  • The application is dismissed with costs, including costs of two Counsel where so employed.