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South Africa Judgment

South Gauteng High Court, Johannesburg

Engen Petroleum Ltd v Nirghin (21822/2022) [2023] ZAGPJHC 1150 (4 October 2023)

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Source document

01

Holding and result

The court found that the respondent's only defence was the alleged prescription of the suretyship agreement, which was not supported by the facts or law. The indebtedness was undisputed and acknowledged by the main debtor, who had been liquidated. The respondent's conduct, including the late filing of an answering affidavit and an unsubstantiated application for postponement, was deemed to be a delay tactic. No proper evidence or application was presented to support the respondent's contentions. Accordingly, the court granted the money judgment in favour of the applicant and awarded costs on an attorney and client scale.

Court disposition

Judgment granted in favour of the applicant; costs awarded on attorney and client scale.

Orders

  • The defendant is ordered to pay the amount claimed in terms of the draft order.
  • The defendant is ordered to pay costs on the attorney and client scale.

02

Material facts

Parties

Engen Petroleum Ltd

Plaintiff

Dhewenthra Nirghin

Defendant

03

Procedural history

  1. Posture

    Civil Procedure / Final Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that the respondent is liable for payment under a suretyship agreement, as the indebtedness is undisputed and acknowledged by the main debtor, who has been liquidated. The applicant argues that the respondent's answering affidavit does not disclose any substantive defence and that the filing of the affidavit was a delay tactic. The applicant seeks costs on an attorney and client scale due to the respondent's conduct.
Respondent
The respondent argues that the suretyship agreement has prescribed and raises the possibility of a claim for reckless credit based on new documents. However, no affidavit or proper application for postponement was filed, and the respondent failed to provide evidence supporting these contentions.

05

Court’s reasoning

  1. 01

    No specific statute or case cited.

    Prescription does not apply to the suretyship agreement in the circumstances of this case.

  2. 02

    No specific statute or case cited.

    Costs may be awarded on an attorney and client scale where a party's conduct is found to be a delay tactic and no substantive defence is disclosed.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the respondent's only defence was the alleged prescription of the suretyship agreement, which was not supported by the facts or law. The indebtedness was undisputed and acknowledged by the main debtor, who had been liquidated. The respondent's conduct, including the late filing of an answering affidavit and an unsubstantiated application for postponement, was deemed to be a delay tactic. No proper evidence or application was presented to support the respondent's contentions. Accordingly, the court granted the money judgment in favour of the applicant and awarded costs on an attorney and client scale.

Obiter and limits

  • The respondent's failure to properly apply for postponement and to provide supporting evidence demonstrates a lack of bona fides.
  • Even if new documents had come to light, the respondent could have filed an affidavit setting out the grounds for postponement, but failed to do so.

Court disposition

Judgment granted in favour of the applicant; costs awarded on attorney and client scale.

  • The defendant is ordered to pay the amount claimed in terms of the draft order.
  • The defendant is ordered to pay costs on the attorney and client scale.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

South Gauteng High Court, Johannesburg

Judgment

[2023] ZAGPJHC 1150

IN THE HIGH COURT OF SOUTH

AFRICA

GAUTENG LOCAL DIVISION,

JOHANNESBURG

CASE NO: 21822/2022

DATE: 04-10-2023

In the matter between

ENGEN

PETROLEUM LTD Plaintiff And

DHEWENTHRA

NIRGHIN Defendant

J U D G M E N T

YACOOB, J:

- - - - - - - - - - - -

The applicant seeks payment from the respondent on the basis of a suretyship agreement. There is no dispute of fact regarding the indebtedness. The indebtedness has been acknowledged by the main debtor who has been liquidated. The only issue raised by the respondent in the answering affidavit is the contention that the suretyship agreement has prescribed, and the suretyship agreement clearly has not prescribed nor can it.

There is therefore, no reason not to grant the money judgment. The applicant also seeks costs on an attorney and client scale, because the last time the matter was enrolled it was enrolled on the unopposed roll in September 2022 and on the eve of the hearing the respondent filed an answering affidavit, which, as I have noted, does not disclose any substantive defence. The contention of the applicant is that the filing of the affidavit was simply a delay tactic.

This morning before the hearing at approximately nine o’clock I received heads of argument from the respondent’s counsel which intimated that an application for postponement would be made. The basis of the application was apparently that new documents had come to light which may show that there was a claim for reckless credit. However, no affidavit was filed, no proper application was made, and there is no evidence before this Court. According to submissions made from the Bar, the information on which this postponement is purportedly based must have always been known to the respondent as it included evidence of meetings which the respondent had attended.

There is therefore, absolutely no reason why the information was not previously included in the affidavit or why the application for postponement was not properly made and in good time. Even if the documents came to the legal representative’s attention at the beginning of this week, taking into account that the matter was set down for hearing from Monday, they could have filed an affidavit setting out briefly the grounds. They failed to do so. I am unable to find that there is any case made out for postponement, and I tend to agree with the applicant’s contention that this is simply yet another delay tactic.

For these reasons, I will grant costs on the attorney and client scale.

I grant an order in terms of the draft.

YACOOB, J

JUDGE OF THE HIGH COURT

DATE: 12/10/23

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