Kukard N.O and Others v ABSA Bank Limited and Others (Leave to appeal) (115284/2023) [2025] ZAGPPHC 146 (13 February 2025)
- Citation
- [2025] ZAGPPHC 146
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- N.P. Mali
- Case number
- 115284/2023
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- N.P. Mali
- Case number
- 115284/2023
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicants had raised grounds that warranted consideration by a higher court, particularly regarding the procedure for hearing exceptions and the issue of early discovery. The transcript revealed some ambiguity about whether the applicants had conceded that early discovery was unnecessary if the exceptions were upheld. Given these circumstances, leave to appeal was granted to the Full Court. Regarding the variation application, the court identified ambiguity in the original cost order and clarified that the costs of the fourth defendant for both the postponement application and the exception, including counsel on scale C, are to be paid by the first to fifth plaintiffs and the eighth and ninth plaintiffs, jointly and severally. The court exercised its power under Rule 42(1)(c) to vary the order to remove ambiguity and ensure clarity in the allocation of costs.
Court disposition
Leave to appeal is granted to the Full Court of this Division. The order of 23 October 2024 is varied to clarify the allocation of costs.
Orders
- Leave to appeal is granted to the Full Court of the Gauteng Division, Pretoria.
- The order of 23 October 2024 is varied as set out in paragraph 12 of this judgment.
- Costs shall be costs in the appeal.
- The plaintiffs’ postponement application is dismissed.
- The third and fourth defendants’ exceptions are upheld.
- The plaintiffs are granted 15 court days from the date of this order to amend their particulars of claim.
- Should the plaintiffs fail to deliver a notice of amendment within 15 court days, or should the notice of amendment fail to remove the causes of complaint, the third and fourth defendants may set the matter down to seek an order striking out the plaintiffs’ claim and dismissing the action with costs.
- The plaintiffs are jointly and severally liable for the costs of the third defendant of the postponement application and the exception, including the costs of two counsel, on scale C in terms of Uniform Rules 67A(3) and 69.
- In respect of the fourth defendant, the costs of the postponement application and on exception, including the costs of counsel on scale C, are to be paid by the first to fifth plaintiffs and the eighth and ninth plaintiffs, jointly and severally.
02
Material facts
Parties
Colleen Michelle Kukard N.O.
Applicant Counsel: Adv FC LamprechtHillbrow Inn (Pty) Ltd
Applicant Counsel: Adv FC LamprechtJoubert Park Maxime Hotel (Pty) Ltd
Applicant Counsel: Adv FC LamprechtMaxime Hotel (Pty) Ltd
Applicant Counsel: Adv FC LamprechtNew World Hotels (Pty) Ltd
Applicant Counsel: Adv FC LamprechtJeshco (Pty) Ltd
Applicant Counsel: Adv FC LamprechtDream Weaver Trading 139 (Pty) Ltd
Applicant Counsel: Adv FC LamprechtWarwick Paul van den Berg N.O.
Applicant Counsel: Adv FC LamprechtDarryl Hurwitz N.O.
Applicant Counsel: Adv FC LamprechtABSA Bank Limited
RespondentAccess Bank of South Africa Limited
Respondent Counsel: Adv C. McconnachieStandard Bank of South Africa Limited
Respondent Counsel: Adv Z. Raqowa03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal and Variation of Order
04
Questions and positions
Legal issues
- 01
Whether leave to appeal should be granted against the refusal of postponement and upholding of exceptions.
- 02
Whether the original order contains ambiguity or error justifying variation under Rule 42(1)(c).
- 03
Whether the applicants were entitled to early discovery before exceptions were heard.
- 04
Whether the cost order against the applicants was appropriate.
Party arguments
- Applicant
- The applicants argued that the court should have exercised its discretion to order early discovery before entertaining the exceptions, as the circumstances were exceptional and warranted such a procedure in the interests of justice. They contended that the court misdirected itself by not considering their application and by assuming that the applicants had conceded that early discovery was unnecessary if the exceptions were upheld. The applicants also challenged the cost order made against them, asserting that it was inappropriate for unopposed exception proceedings.
- Respondent
- The respondents maintained that the application for postponement was properly dismissed, as the Rule 35(1) notice had been withdrawn and there was no basis for postponement. They argued that the exceptions were ripe for hearing and that the applicants had, in fact, conceded that if the exceptions were upheld, early discovery would not be necessary. The respondents further submitted that the cost order was justified given the conduct of the applicants and the nature of the proceedings.
05
Court’s reasoning
Legal principles
- 01
Section 17(1) of the Superior Courts Act 10 of 2013
Leave to appeal may only be granted if there is a reasonable prospect of success or another compelling reason, such as conflicting judgments.
- 02
Rule 42(1)(c) of the Uniform Rules of Court
A court may rescind or vary any order or judgment in which there is ambiguity, a patent error, or omission, but only to the extent of such ambiguity, error, or omission.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicants had raised grounds that warranted consideration by a higher court, particularly regarding the procedure for hearing exceptions and the issue of early discovery. The transcript revealed some ambiguity about whether the applicants had conceded that early discovery was unnecessary if the exceptions were upheld. Given these circumstances, leave to appeal was granted to the Full Court. Regarding the variation application, the court identified ambiguity in the original cost order and clarified that the costs of the fourth defendant for both the postponement application and the exception, including counsel on scale C, are to be paid by the first to fifth plaintiffs and the eighth and ninth plaintiffs, jointly and severally. The court exercised its power under Rule 42(1)(c) to vary the order to remove ambiguity and ensure clarity in the allocation of costs.
Obiter and limits
- The court noted that the interests of justice require that procedural clarity be maintained, especially where cost orders are concerned.
- The transcript of proceedings is essential in determining the true nature of concessions made by parties during argument.
Court disposition
Leave to appeal is granted to the Full Court of this Division. The order of 23 October 2024 is varied to clarify the allocation of costs.
- Leave to appeal is granted to the Full Court of the Gauteng Division, Pretoria.
- The order of 23 October 2024 is varied as set out in paragraph 12 of this judgment.
- Costs shall be costs in the appeal.
- The plaintiffs’ postponement application is dismissed.
- The third and fourth defendants’ exceptions are upheld.
- The plaintiffs are granted 15 court days from the date of this order to amend their particulars of claim.
- Should the plaintiffs fail to deliver a notice of amendment within 15 court days, or should the notice of amendment fail to remove the causes of complaint, the third and fourth defendants may set the matter down to seek an order striking out the plaintiffs’ claim and dismissing the action with costs.
- The plaintiffs are jointly and severally liable for the costs of the third defendant of the postponement application and the exception, including the costs of two counsel, on scale C in terms of Uniform Rules 67A(3) and 69.
- In respect of the fourth defendant, the costs of the postponement application and on exception, including the costs of counsel on scale C, are to be paid by the first to fifth plaintiffs and the eighth and ninth plaintiffs, jointly and severally.
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
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION
PRETORIA
CASE NO: 115284/2023
DOH: 5 February 2025
(1) REPORTABLE: YES / NO
(2) OF INTEREST TO OTHER JUDGES: YES/NO
(3) REVISED.
SIGNATURE
DATE: 13/2/2025
COLLEEN MICHELLE KUKARD N.O.
First Applicant
HILLBROW INN (PTY)
LTD
Second Applicant
JOUBERT PARK MAXIME HOTEL (PTY)
LTD
Third Applicant
MAXIME HOTEL (PTY)
LTD
Fourth Applicant
NEW WORLD HOTELS (PTY)
LTD
Fifth Applicant
JESHCO (PTY)
LTD
Sixth Applicant
DREAM WEAVER TRADING 139 (PTY)
LTD
Seventh Applicant
WARWICK PAUL VAN DEN BERG N.O.
Eighth Applicant
DARRYL HURWITZ N.O.
Nineth Applicant
-and-
ABSA BANK
LIMITED
First Respondent
ACCESS BANK OF SOUTH AFRICA
LIMITED Second Respondent
STANDARD BANK OF SOUTH AFRICA
LIMITED Third Respondent
In re:
COLLEEN MICHELLE KUKARD N.O.
First Plaintiff
HILLBROW INN (PTY) LTD
Second Plaintiff
JOUBERT PARK MAXIME HOTEL (PTY) LTD
Third Plaintiff
MAXIME HOTEL (PTY) LTD
Fourth Plaintiff
NEW WORLD HOTELS (PTY) LTD
Fifth Plaintiff
JESHCO (PTY)
LTD
Sixth Plaintiff
DREAM WEAVER TRADING 139 (PTY) LTD
Seventh Plaintiff
WARWICK PAUL VAN DEN BERG N.O.
Eighth Plaintiff
DARRYL HURWITZ N.O.
Nineth Plaintiff
JEFF
PILLAY
First Defendant
ABSA
BANK LIMITED
Second Defendant
ACCESS
BANK OF SOUTH AFRICA LIMITED Third Defendant
STANDARD
BANK OF SOUTH AFRICA LIMITED Fourth Defendant
REGISTRAR OF DEEDS, POLOKWANE
Fifth Defendant
REGISTRAR OF DEEDS, JOHANNESBURG Sixth Defendant
REGISTRAR OF DEEDS, CAPE TOWN
Seventh Defendant
This Judgment was handed down electronically and by circulation to the parties’ legal representatives’ by way of email and shall be uploaded on caselines. The date for hand down is deemed to be on 13 February 2025.
JUDGMENT
MALI J:
[1] This is a two-pronged application. First it is an application for leave to appeal brought by the unsuccessful applicants a quo. The appeal is against the order of 23 October 2024 refusing application for postponement by the applicants and upholding the application for exception brought by second and third respondents.
[2] The second application is an application for a variation of the order brought by the fourth respondent.
Leave to appeal
[3] Section 17 of the Superior Courts Act 10 of 2013 ("the Superior Courts Act") provides:
“[1] "17 Leave to appeal
(1) 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
[4] The grounds for leave to appeal are as follows:
4.1. “The applicants applied to the Court for the discretionary ruling that the exceptions should only be entertained after discovery by the first and second respondents and that the circumstances set out in its application render the circumstances of the case exceptional to such an extent that it would be in the interests of justice to order that early discovery should take place before a hearing of the exceptions of the 1st and 2nd respondents;
4.2. The Court erred in not considering the applications of the applicants. In doing so, the Court had misdirected itself that it would not be necessary to entertain the applications because of the applicants’ opportunity and right to amend their expiable particulars of claim;
4.3. The Court erred in finding that a concession was made that if the exceptions were found to be good in law, it would not be necessary to grant an order for early discovery, which with respect, was not the applicants’ case;
4.4. The Court erred in not finding the circumstances of the case to be exceptional and not finding that the first and second respondents should be ordered to discover in terms of Rule 35(1) before considering the exceptions taken by the first and second respondents; and
4.5. The Court erred in granting a cost order against the applicants on a scale of C in unopposed exception proceedings.”
[5] A ruling on postponement was made on the day of hearing of the application in court, ex temporae. The basis of the application was the Rule 35(1) Notice which became withdrawn, therefore the application for postponement against Access Bank fell away. The postponement was based on Standard Bank having to discover in terms of Rule 35(1) Notice. There were extensive and substantial arguments in respect of Rule 35(1) of which I was not in a position to make a ruling on. In the interest of justice, the postponement was dismissed so that the two exceptions could be argued and Rule 35(1)(2)(b) decided or determined with the exceptions.
[6] From Pages 45 to 72 of the transcript, it is evident that the applicants conceded; that in the event that the exceptions are found to be good it would not be necessary to deal with Rule 35(1) application. The applicants are not appealing against the order upholding exceptions.
[7] At page 46, the extracts in lines 13 to 20 are relevant. The court sought clarity on arguing of exceptions. Mr Jacobs’s
response in page 47 commences with “if the exception is upheld”. At page 58 from Line 4, Mr Jacobs deals with exceptions. At page 72 the opening sentence reads “in arguing my exception”.
[8] From the above the court understood that the exceptions were being argued, however considering the submission by Mr Mc Connache at page 56 line 24, it appears that there was no agreement to argue exceptions.
[9] Having regard to the above, leave to appeal is granted to the Full Court of this Division. Costs shall be on the appeal.
Variation
[10] On 23 October 2024 I granted an order in the following terms:
“1. The plaintiffs’ postponement application is dismissed.
2. The third and fourth defendant’s exceptions are upheld.
3. The plaintiffs are granted 15 court days from the date of this order to amend their particulars of claim.
4. Should the plaintiffs fail to deliver a notice of amendment in respect of the aforementioned exception within 15 court days from the granting of this order, or should the notice of amendment fail to remove the causes of complaint referred to in the third and fourth defendant’s notice of exception, then the third and fourth defendant shall be entitled to set the matter down on notice to the plaintiffs, on the same papers, duly supplemented, to seek an order striking out the plaintiffs’ claim and dismissing the action with costs.
5. The plaintiffs are jointly and severally liable for the costs of the third defendant of the postponement application and the exception, including the costs of two counsel, on scale C in terms of Uniform Rules 67A(3) and 69.
6. In respect of the fourth defendant the costs of counsel on scale C, to be paid by the first to fifth plaintiffs and the eighth and ninth plaintiffs, jointly and severally.”
[11] Rule 42 (1) (c) of the Uniform Rules of Court provides that the court may mero motu or upon the application of any party affected, rescind or vary any order or judgment in which there is ambiguity, or a patent error or omission, but only to the extent of such ambiguity, or error or omission.
[12] The correct order is as follows:
1. The plaintiffs’ postponement application is dismissed.
2. The third and fourth defendant’s exceptions are upheld.
3. The plaintiffs are granted 15 court days from the date of this order to amend their particulars of claim.
4. Should the plaintiffs fail to deliver a notice of amendment in respect of the aforementioned exception within 15 court days from the granting of this order, or should the notice of amendment fail to
remove the causes of complaint referred to in the third and fourth defendant’s notice of exception, then the third and fourth
defendant shall be entitled to set the matter down on notice to the plaintiffs, on the same papers, duly supplemented, to seek an order striking out the plaintiffs’ claim and dismissing the action with costs.
5. The plaintiffs are jointly and severally liable for the costs of the third defendant of the postponement application and the exception, including the costs of two counsel, on scale C in terms of Uniform Rules 67A(3) and 69.
6. In respect of the fourth defendant, the costs of the fourth defendant of the postponement application and on exception, including the costs of counsel on scale C, to be paid by the first to fifth plaintiffs
and the eighth and nine plaintiffs, jointly and severally.
N.P.
MALI
JUDGE
OF THE HIGH COURT
Counsel for the Applicant
Adv FC Lamprecht
Counsel for Access Bank (1st Respondent)
Adv. C. Mcconnachie
Adv. Z. Raqowa
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