Mhlongo v Farraque and Others (43344/21) [2022] ZAGPPHC 64 (15 February 2022)
- Citation
- [2022] ZAGPPHC 64
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- North Gauteng High Court, Pretoria
- Panel
- Tlhapi V V
- Case number
- 43344/21
More details
- Court
- North Gauteng High Court, Pretoria
- Panel
- Tlhapi V V
- Case number
- 43344/21
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant failed to meet the raised threshold for leave to appeal under section 17(1) of the Superior Courts Act. The applicant breached the duty of full disclosure in the ex parte urgent application, omitting material facts that should have been presented. The court exercised its discretion to allow the first respondent to file a further affidavit in response to new evidence introduced by the applicant in reply, as those facts were within the applicant's knowledge at the time of launching the application. The dispute of fact did not warrant referral to oral evidence, as the matter could be resolved on the papers. The grounds advanced by the applicant did not demonstrate reasonable prospects of success or any compelling reason for leave to appeal. Accordingly, the application for leave to appeal was dismissed with costs.
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
Ntando Zwelihle Mhlongo
Applicant Counsel: Adv P P FerreiraDula Edmen Farraque
Respondent Counsel: Adv J C van EedenAbsa Bank Limited
RespondentFirst National Bank Limited
RespondentAmounts and remedies
- Erroneous Payment Amount: ZAR 3,546,620
- Tyre Purchase Amount: ZAR 35,462
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal Following Dismissal of Ex Parte Urgent Application
04
Questions and positions
Legal issues
- 01
Whether the applicant has met the threshold for leave to appeal under section 17(1) of the Superior Courts Act.
- 02
Whether the court erred in accepting the first respondent's version regarding the Aston Martin transaction.
- 03
Whether the dispute of fact should have been referred to trial.
- 04
Whether the court erred in allowing a further affidavit from the first respondent.
- 05
Whether the court erred in dismissing the application.
Party arguments
- Applicant
- The applicant contends that the court erred in accepting the first respondent's version regarding the Aston Martin transaction, which was not relevant to the issue of the erroneous payment. The applicant argues that there were negotiations regarding the purchase of truck tyres, and the court incorrectly found otherwise. The applicant submits that the dispute of fact should have been referred to trial, and that the court erred in allowing a further affidavit from the first respondent based on new evidence allegedly introduced in reply. The applicant maintains that the application should not have been dismissed.
- Respondent
- The respondents argue that the applicant failed to make full disclosure in the ex parte urgent application, breaching the duty of utmost good faith. They submit that the new evidence introduced in the applicant's replying affidavit justified the court's exercise of discretion to allow a further affidavit. The respondents contend that the matter could be resolved on the papers and that no special circumstances warranted referral to oral evidence. They assert that the applicant has not met the threshold for leave to appeal under section 17(1) of the Superior Courts Act.
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 where the appeal would have reasonable prospects of success or there is some other compelling reason for the appeal to be heard.
- 02
Mont Chevaux Trust v Tina Goosen and 18 Others 2014 JDR 2325 (LCC)
The threshold for granting leave to appeal has been raised; there must be certainty that another court would come to a different conclusion.
- 03
S v Smith 2012 (1) SACR 567 (SCA)
An applicant must convince the court on proper grounds that prospects of success are not remote; a mere possibility is insufficient.
- 04
Minister of Justice and Constitutional Development and Others v Southern African Litigation Centre and Others 2016 (3) SA 317 (SCA)
Where the applicant satisfies either of the two requirements in section 17(1), leave to appeal should be granted.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant failed to meet the raised threshold for leave to appeal under section 17(1) of the Superior Courts Act. The applicant breached the duty of full disclosure in the ex parte urgent application, omitting material facts that should have been presented. The court exercised its discretion to allow the first respondent to file a further affidavit in response to new evidence introduced by the applicant in reply, as those facts were within the applicant's knowledge at the time of launching the application. The dispute of fact did not warrant referral to oral evidence, as the matter could be resolved on the papers. The grounds advanced by the applicant did not demonstrate reasonable prospects of success or any compelling reason for leave to appeal. Accordingly, the application for leave to appeal was dismissed with costs.
Obiter and limits
- Litigants seeking ex parte urgent relief must uphold the duty of utmost good faith and disclose all material facts, including those adverse to their case.
- The discretion to refer disputes of fact to oral evidence is exercised only where special circumstances exist; otherwise, matters may be resolved on the papers.
Court disposition
Application for leave to appeal dismissed with costs.
- The application for leave to appeal is dismissed with costs.
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
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG DIVISION, PRETORIA)
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER JUDGES: NO
15 February 2022
CASE NO: 43344/21
In the matter between:
NTANDO
ZWELIHLE MHLONGO
APPLICANT
and
DULA
EDMEN FARRAQUE
FIRST RESPONDENT
ABSA BANK
LIMITED
SECOND
RESPONDENT
FIRST NATIONAL BANK
LIMITED
THIRD RESPONDENT
JUDGMENT - LEAVE TO APPEAL
TLHAPI J
[1] This is an opposed application for leave to appeal premised on section 17(1)
of the Superior Courts Act 10 of 2013, (âthe Actâ) which section is set out below:
âSection 17(1)
(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 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 withing the ambit of section 16(2); 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.â
[2] Previously the test applied was whether there were reasonable prospects that another court may come to a different conclusion, Commissioner of Inland Revenue v Tuck 1989 (4) SA 888(T). The threshold of reasonable prospects has now been raised by the use and meaning attached to the words âonlyâ in 17(1) and âwouldâ in section 17(1)(a)(i). Therefore, on the entire judgement there should be some certainty that another court would come to a different conclusion from the judgement the applicant seeks to appeal against. In Mont Chevaux Trus v Tina Goosen and 18 Others 2014 JDR 2325(LCC) at para [6]:
âIt is clear that the threshold for granting leave to appeal a judgment of a High Court has been raised in the new Act. The former test whether leave to appeal should be granted was a reasonable prospect that another court might come to a different conclusion, see Van Heerden v Cronwright & Others 1985 (2) SA 342 (T) at 343H.The use of the word âwouldâ in the new statute indicates a measure of certainty that another court will differ from the court whose judgment is sought to be appealed againstâ
[3] In S v Smith 2012 (1) SACR 567(SCA) at para 7, a more stringent test is called for in that an applicant must convince a court, on proper grounds that there are prospects of success which are not remote, a mere possibility is not sufficient. Therefore, where the applicant has satisfied either of the two identified requirements in the Act, leave to appeal should be granted, Minister of Justice and Constitutional Development and Others v Southern African Litigation Centre and Others 2016 (3) SA 317 (SCA).
[4] The applicant seeks leave to appeal the whole judgment and order granted on 22 October 2021. Without rehashing the list of grounds, and also not disregarding their content. I extract what I view as the basis of discontent in seeking leave to appeal.
[3] The applicant obtained two ex parte orders which followed very close on each other on 20 September 2021 and 22 September 2021. The date of return on which the first respondent had to show cause why the monies in dispute should not be paid back to the applicant, 20 October 2021 coincided with the first respondentâs application for re-consideration and these for convenience were heard together.
[5] In the ex parte applications, brought on extreme urgency. The dispute revolved around the alleged purchase of tyres by the applicant from the first respondent for R35 462.00 and the alleged erroneous payment of a substantial sum of money, R3 546 620.00 by the applicant into the bank account of the first respondent. The first respondentâs version in answer was that dispute was not about the tyres, but was about the re-sale of an Aston Martin vehicle to the applicant, which the first respondent had purchased from the applicant who acted as middleman for a third party. The facts are stated in the judgment.
[4] I understand the grounds to be (i) that the version on the first respondent regarding the Aston Martin was not tenable and relevant to the issue of the erroneous payment made by the applicant and that the court erred in finding that there were never negotiations regarding the purchase of truck tyres and special reference was made to paragraphs [28] and [31] of the judgment (ii) that the court should have referred this dispute of fact to trial (iii) the court erred in allowing a further affidavit by the first respondent based on its finding that the applicantâs reply had contained new evidence (iv) the court erred in dismissing the application.
[5] Firstly, the court dealt extensively with the responsibility placed on a litigant who approaches a court ex parte seeking urgent relief, the duty to make full disclosure of even ââadverse material that the absent respondent might put up in opposition to the orderâ sought; the duty to uphold the requirement of uberrima fides. The court found that the applicant had breached these requirements in ââseveral material aspectsâ. Secondly, the court found that new evidence had been introduced in the replying affidavit and, it gave reasons why it exercised its discretion to allow the first respondent to answer to those new facts, which were facts which were within the knowledge of the applicant when the ex parte applications were launched and, which should have been disclosed in the founding papers. Thirdly, in as far as the referral to oral evidence is concerned, I reiterate the discretion exercised that the matter could be resolved on paper and no reasons or special circumstances prevailed for referral to oral evidence. In my view, there are no reasonable prospects or compelling reasons why the application should be granted.
[6] The following order is therefore made:
(i) The application is dismissed with costs.
TLHAPI
V V
(JUDGE OF THE HIGH COURT)
MATTER
HEARD ON : 04 FEBRUARY 2022
JUDGMENT
RESERVED ON : 04 FEBRUARY 2022
COUNSEL
FOR THE APPLICANT :
ADV P P FERREIRA
INSTRUCTED BY :
ADRIAAN DU PLESSIS INC
ATTORNEYS
COUNSEL FOR THE RESPONDENT : ADV J C van
EEDEN
INSTRUCTED BY : VORSTER & BRANDT INC
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