Mphephu v Anooshkumar NO (56527/2021) [2023] ZAGPJHC 736 (26 June 2023)
- Citation
- [2023] ZAGPJHC 736
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- M A Makume
- Case number
- 56527/2021
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- M A Makume
- Case number
- 56527/2021
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that none of the grounds of appeal advanced by the applicant would have any reasonable prospect of success. The argument regarding reckless credit granting was dismissed as the bank had conducted a proper assessment based on the applicant's own documentation. The claim that the letter from the applicant's attorneys did not constitute an admission of debt was rejected as flawed. The remaining grounds, including prescription and lack of admission of liability, were found to be without merit. Accordingly, the application for leave to appeal was dismissed, and costs were awarded against the applicant.
Court disposition
Application for leave to appeal dismissed with costs.
Orders
- The application for leave to appeal is dismissed.
- The applicant is ordered to pay the costs of this application, including the costs of two counsel.
02
Material facts
Parties
Mphephu Peter Tony
Applicant Counsel: Adv Van der MerweAnooshkumar Roopal N.O.
Respondent Counsel: Adv Emiel van Vuuren SC with Adv K IlesAmounts and remedies
- Amount Ordered to Be Paid to Respondent (from Original Judgment): ZAR 5,586,555.16
03
Procedural history
Posture
Leave to Appeal / Application for Leave to Appeal Following Judgment and Orders Granted on 29 November 2022.
04
Questions and positions
Legal issues
- 01
Whether the applicant has reasonable prospects of success on appeal against the order cancelling vehicle sale agreements and the payment order.
- 02
Whether the grounds of appeal relating to reckless credit granting, prescription, and admission of liability have merit.
Party arguments
- Applicant
- The applicant contends that the grounds for appeal include reckless credit granting by the bank, prescription of the debt, and that there was no unequivocal admission of liability. The applicant argues that the letter from his attorneys cannot be interpreted as an admission of debt and that the bank failed to properly assess his ability to repay the instalments.
- Respondent
- The respondent, represented by the liquidator, asserts that proper assessment of the applicant's ability to pay was conducted based on documentation provided by the applicant. The respondent maintains that the letter from the applicant's attorneys constitutes an admission of debt and that none of the grounds of appeal have any reasonable prospect of success.
05
Court’s reasoning
Legal principles
- 01
Four Wheel Drive Accessory Distribution CC v Rattan N.O. 2019 (3) SA 451 (SCA) at 463 para 34
Leave to appeal should only be granted when there is a sound, rational basis for the conclusion that there are prospects of success on appeal.
- 02
Section 17(1)(a)(i) & (ii) of the Superior Courts Act 10 of 2013; The Mount Chevaux Trust v Tina Goosen & 18 Others [2014] JDR 2325 (LCC)
The threshold for granting leave to appeal has been raised; the test is whether the appeal would have a reasonable prospect of success, indicating a measure of certainty that another court will differ from the judgment.
06
Ratio, limits and disposition
Ratio decidendi
The court found that none of the grounds of appeal advanced by the applicant would have any reasonable prospect of success. The argument regarding reckless credit granting was dismissed as the bank had conducted a proper assessment based on the applicant's own documentation. The claim that the letter from the applicant's attorneys did not constitute an admission of debt was rejected as flawed. The remaining grounds, including prescription and lack of admission of liability, were found to be without merit. Accordingly, the application for leave to appeal was dismissed, and costs were awarded against the applicant.
Obiter and limits
- The threshold for granting leave to appeal under the Superior Courts Act is higher than under previous legislation, requiring a measure of certainty that another court will differ.
- The court did not find it necessary to address every ground of appeal, as none would succeed on appeal.
Court disposition
Application for leave to appeal dismissed with costs.
- The application for leave to appeal is dismissed.
- The applicant is ordered to pay the costs of this application, including the costs of two counsel.
Source and reliance status
South Gauteng High Court, Johannesburg
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.
South Gauteng High Court, Johannesburg
Judgment
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
CASE NO: 56527/2021
In the matter between:
MPHEPHU
PETER TONY Applicant and
ANOOSHKUMAR ROOPAL N.O. Respondent’s
JUDGMENT ON
APPLICATION FOR LEAVE TO APPEAL
MAKUME, J:
[1] On the 29th November 2022 I granted an order cancelling three vehicle sale agreements that the Applicant had concluded with VBS Mutual Bank (in Liquidation). In particular, I also ordered that the Applicant pay to the Respondent an amount of R5 586 555.16 being the amount due and owing to the Respondent arising out of the cancelled agreements.
[2] The Applicant now seeks leave to appeal that judgement and orders on various grounds set out in the notice of application.
[3] The test that a Court must or ought to apply in determining whether or not leave to appeal should or should not be granted has been crystallised in Section 17(1) (a) (i) of the Superior Courts Act 10 of 2013. That test has found expression in a number of decisions in the various divisions of the High Court including the Apex Court being the Constitutional Court.
[4] In Four Wheel Drive Accessory Distribution CC vs Rattan N.O. 2019 (3) Sa 451 (SCA) at page 463 paragraph 34 the Court concluded as follows:
“[34] There is a further principle that the Court a quo seems to have
Overlooked
- leave to appeal should be granted only when there is a sound, rational basis for the conclusion that there are prospects of success on appeal.”
[5] Section 17(1) (a) (i) & (ii) reads as follows:
“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 judgements on the matter under consideration.
[6] Berterlsman J in one of the earlier cases shortly after this Act came into operation ruled as follows in the matter of The Mount Chevaux Trust vs Tina Goosen & 18 Others [2014] JDR 2325 (LCC):
“It is clear that the threshold for granting leave to appeal against a judgement 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 vs Cronwright and Others 1985 (2) SA 342 (T) at 343 H. The use of the word “Would” in the new statute indicates a measure of certainty that another Court will differ from the Court whose judgement is sought to be appealed against.”
[7] I do not deem it necessary to deal with each and every ground of appeal save to say that none of them would stand any possibility of succeeding in the Appeal Court. The main grounds of appeal seem to be the Applicant’s reliance on the principle of reckless credit granting, followed by prescription and lastly that the Applicant never admitted liability.
[8] Counsel for the Applicant on being asked what interpretation should be given to the letter dated the 8th July 2021 emanating from the Applicant’s then attorneys to the Respondent attorneys in which those attorneys committed their client to make necessary payments. This was after the Applicant had received a Section 129 (1) letter. Counsel maintains that the letter is and cannot be interpreted as an unequivocal admission of debt. That interpretation is flawed and deserves no further attention. There is in my view no reasonable prospects that this ground of appeal would be upheld.
[9] The ground of appeal relating to Reckless credit granting is closely linked to what the Applicant says that there was no proper assessment done to determine the Applicant’s ability to make repayments of the instalments.
[10] In paragraph 32 to 36 of the Respondent’s Replying Affidavit the Liquidator sets out information that confirm that indeed assessment was done based on documentation that the Applicant himself presented to the bank. I fail to understand what else the bank should have done to satisfy itself that indeed the Applicant will afford repayments. In this application Counsel was once more asked to explain what exactly the bank did not do. I did not get a clear answer.
[11] That ground of appeal in my view stand no chance of being upheld on appeal. The rest of the grounds of appeal deserve no consideration as they will not take the matter any further
[12] In the result I make the following order:
ORDER
1. The Application for Leave to Appeal is dismissed.
2. The Applicant is ordered to pay costs of this application which costs shall include costs of two Counsel.
Dated at Johannesburg on this day of June 2023
M A
MAKUME
JUDGE OF THE
HIGH COURT
GAUTENG DIVISION, JOHANNESBURG
Appearances:
DATE OF HEARING : 21 JUNE 2023
DATE OF JUDGMENT : JUNE 2023
FOR APPLICANT
ADV VAN DER MERWE
INSTRUCTED BY MESSRS BARNARD & PATEL INC.
FOR RESPONDENT
ADV EMIEL VAN VUUREN
SC
WITH ADV K ILES
INSTRUCTED BY
WERKSMANS ATTORNEYS
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