Fast Track Contracting Africa (Pty) Ltd and Others v Group Five Construction (Pty) Ltd and Another (34068/2019) [2023] ZAGPJHC 1450 (12 December 2023)

Fast Track Contracting Africa (Pty) Ltd and Others v Group Five Construction (Pty) Ltd and Another (34068/2019) [2023] ZAGPJHC 1450 (12 December 2023)

The court found that the applicants failed to demonstrate reasonable prospects of success or compelling reasons for leave to appeal. The validity of the composite payment certificate was addressed in the original judgment, and the court reaffirmed its acceptance of the certificate as valid. The indemnity and...

Source-derived case information.

Citation
[2023] ZAGPJHC 1450
Parties
Applicant: Fast Track Contracting Africa (Pty) Ltd; Applicant: Bridgenun Mohanlall; Respondent: Group Five Construction (Pty) Ltd (In Business Rescue); Respondent: Constantia Insurance Company Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
12 December 2023
Case Number
34068/2019
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment on Payment and Indemnity Orders
Outcome
Application for leave to appeal dismissed with costs, including costs of senior counsel.
Judges
M A Makume
Legal Topics
Leave to Appeal Test, Guarantee Liability, Indemnity and Suretyship, Composite Payment Certificate
Civil Procedure Commercial and Corporate Leave to Appeal Test Guarantee Liability Indemnity and Suretyship Composite Payment Certificate

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Parties

Fast Track Contracting Africa (Pty) Ltd

Applicant

Bridgenun Mohanlall

Applicant

Group Five Construction (Pty) Ltd (In Business Rescue)

Respondent

Constantia Insurance Company Ltd

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Judgment on Payment and Indemnity Orders

Legal Issues

  1. 1 Whether the court erred in accepting the validity of a composite payment certificate instead of requiring separate certificates for each guarantee.
  2. 2 Whether the court erred in relying on previous judgments regarding the guarantees.
  3. 3 Whether Group Five made a valid and lawful demand under the guarantees.

Ratio Decidendi

The court found that the applicants failed to demonstrate reasonable prospects of success or compelling reasons for leave to appeal. The validity of the composite payment certificate was addressed in the original judgment, and the court reaffirmed its acceptance of the certificate as valid. The indemnity and suretyship agreements create a stand-alone liability for the applicants, independent of the validity or alleged fraud of the demand. The applicants did not provide substantive arguments against the enforcement of the indemnity and suretyship. There is no precedent prohibiting composite payment certificates from triggering payment obligations. Accordingly, the application for leave to...

Court Disposition

Application for leave to appeal dismissed with costs, including costs of senior counsel.

Orders

  • The application for leave to appeal is dismissed.
  • The applicants, Fast Track Contracting Africa (Pty) Ltd and Bridgenun Mohanlall, are ordered to pay the taxed party and party costs of the respondents, Group Five Construction (Pty) Ltd and Constantia Insurance Company Ltd, including costs of senior counsel.