South Africa Judgment

South Gauteng High Court, Johannesburg

Firstrand Bank Limited v Schmidt and Another (2019/21148) [2021] ZAGPJHC 599 (25 October 2021)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court found that the respondents failed to set out any grounds indicating where the court erred in confirming the rule nisi for provisional sequestration. The application for leave to appeal did not address the requirements of section 17(1) of the Superior Courts Act, nor did it demonstrate reasonable prospects of success or any compelling reason for the appeal to be heard. The constitutional issues raised were not substantiated or linked to the merits of the appeal. Accordingly, there was no basis for granting leave to appeal.

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

Firstrand Bank Limited

Applicant Counsel: Adv P Louw

Denise Bonita Schmidt

Respondent Counsel: Ms Schmidt

Denise Bonita Schmidt (in her capacity as executor in the Estate Late Samuel Tshisimogo Motsumi)

Respondent Counsel: Ms Schmidt

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Against Confirmation of Provisional Sequestration Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the respondents' application for leave to appeal was procedurally defective, amounted to an abuse of the court's process, and had no prospects of success. The applicant submitted that the respondents merely revisited arguments on the merits and raised irrelevant matters. The applicant further contended that the respondents failed to take any steps after filing the application and did not request reasons for the order sought to be appealed. Overall, the applicant maintained that the respondents failed to make out a case for leave to appeal.
Respondent
Ms Schmidt, representing herself and the estate, argued that the estate was entitled to have its dispute with the estate of the late Mr GM Negota decided by a court in terms of section 34 of the Constitution. She further submitted that refusal of leave to appeal would result in her losing her right to housing under section 26 of the Constitution and her right to work as a Property Practitioner. These grounds were raised under the heading 'Constitutional Issues' in the application for leave to appeal.

05

Court’s reasoning

  1. 01

    Superior Courts Act, section 17(1)

    Leave to appeal may only be granted if the appeal would have a reasonable prospect of success or there is some other compelling reason for the appeal to be heard.

  2. 02

    Superior Courts Act, section 17(1)

    The application for leave to appeal must set out the grounds on which the applicant relies and demonstrate where the court erred in its decision.

  3. 03

    Constitution of the Republic of South Africa, 1996

    Constitutional rights such as access to courts, housing, and employment may be relevant but must be substantiated and connected to the grounds for appeal.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the respondents failed to set out any grounds indicating where the court erred in confirming the rule nisi for provisional sequestration. The application for leave to appeal did not address the requirements of section 17(1) of the Superior Courts Act, nor did it demonstrate reasonable prospects of success or any compelling reason for the appeal to be heard. The constitutional issues raised were not substantiated or linked to the merits of the appeal. Accordingly, there was no basis for granting leave to appeal.

Obiter and limits

  • The respondents were unrepresented during both the hearing of the application for leave to appeal and the granting of the original order.
  • The respondents' application for leave to appeal consisted of voluminous material but failed to address the relevant legal questions.

Court disposition

Application for leave to appeal dismissed with costs.

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

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

[2021] ZAGPJHC 599

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

REPUBLIC OF SOUTH

AFRICA

IN THE HIGH COURT OF

SOUTH AFRICA

GAUTENG DIVISION,

JOHANNESBURG

CASE NO: 2019/21148

DOH: 22 October 2021

REPORTABLE: NO

OF INTEREST TO OTHER JUDGES: NO

REVISED.

In the matter of:

FIRSTRAND

BANK LIMITED

APPLICANT

And

DENISE BONITA SCHMIDT

FIRST RESPONDENT

In her capacity as executor in the Estate

Late Samuel Tshisimogo Motsumi

Estate number 015615/2015

DENISE BONITA

SCHMIDT

SECOND RESPONDENT

Identity number [....]

Date of birth: 12 November 1963

Marital Status: Married in community

of property to Samuel Tshisimogo Motsumi

JUDGEMENT

THIS

JUDGEMENT HAS BEEN HANDED DOWN REMOTELY AND SHALL BE CIRCULATED TO THE PARTIES BY WAY OF E- MAIL. ITS DATE OF HAND DOWN SHALL

BE DEEMED TO BE 25 OCTOBER 2021

Bam AJ

1. This is an application for leave to appeal brought by the respondents against the order made by this court on 9 February 2021. The application is opposed by the applicants, First Rand Bank Limited.

2. Briefly, the order against which leave to appeal is sought confirmed the rule nisi that placed the respondents’ estate under provisional sequestration. The rule was first issued in August 2020. For ease of reading, I refer to the parties as they were in the original proceedings.

2. From the onset, it behoves me to note that both the first and second respondents were unrepresented during the hearing of this application. They were unrepresented at the time of granting the order in February 2021.

3. The 36 pages filed by Ms Schmidt as the respondents’ application for leave to appeal do not set out succinctly the grounds upon which the respondents rely. Notwithstanding, during the hearing and to the applicants’ disadvantage, I afforded Ms Schmidt an opportunity to state the grounds upon which she relies. I record here below the points I could distill from Ms Schmidt’s submissions. These points are somewhat confirmed in the respondents’ notice of application for leave under the heading, Constitutional Issues. They are: (i) That the estate of the late Tshisimogo Mostumi is entitled to have the long standing dispute between it and the estate of the late Mr GM Negota decided by a court of law in terms of section 34 of the Constitution. (ii) That Ms Schmidt will lose her right to housing, as enshrined in section 26 of the Constitution, should leave to appeal not be granted. (iii) Finally, that she will lose her right to work as a Property Practitioner (Estate Agent) should leave to appeal not be granted.

4. At the outset, the applicants implored me to dismiss the application citing, inter alia, the respondents’ egregious affront to the rules of this court in the manner they had gone about preparing their papers for leave to appeal; the respondents’ conduct, which the applicants argued amount’s to abuse of the court’s process; and the fact that the application, as it stands, had zero prospects of success. As to the first point, the applicants state that all that the respondents have done in their papers was revisit their arguments in relation to the merits and traversed irrelevant and extraneous matters to the question that must ultimately be decided by this court. To underscore the abuse of the court’s processes, the applicants submitted that after the respondents had filed their application for leave, no further action was taken since February 2021. It took the applicants’ to seek a date with the registrar and ensure that the matter was placed on today’s roll. They added that the respondents had not even sought the reasons relating to the order they seek to appeal. As to the overall merits of the application for leave, the applicants argued that the respondents have failed to make a case upon which leave to appeal may be granted.

5. Section 17 (1) of the Superior Courts Act, which regulates applications for leave to appeal, provides that leave to appeal may ‘only be given where the judge or judges concerned are of the opinion that—

(a) (i) the appeal would have a reasonable prospect 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 section 16(2)(a); and

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

C. DISCUSSION AND

CONCLUSION

6. I note that none of the three issues set out in paragraph 3 of this judgement, including the large volume of information contained in the respondents’ application for leave to appeal, deal with the question of where the court erred in confirming the rule nisi. There is also no information before this court from which I could deduce that any of the instances enumerated in section 17 (a) (i) and (ii) have been satisfied. Consequently, there is no basis upon which this court can grant leave to appeal.

D. ORDER

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

NN

BAM

ACTING JUDGE OF THE HIGH COURT,

JOHANNESBURG

DATE OF HEARING:

21 October 2021

DATE OF JUDGEMENT:

25 October 2021

APPLICANTS

Adv P Louw

Instructed by:

Werksmans Incorporated

FIRST & SECOND RESPONDENTS:

Ms Schmidt (In person)/

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Authorities

Authorities used by the court

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

Superior Courts Act, section 17(1)

Legislation

Legislation referenced in the available case record.

Constitution of the Republic of South Africa, 1996

Legislation

Legislation referenced in the available case record.

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