Rejanala Farms and Projects (Pty) Ltd (5243/2019) [2021] ZAFSHC 131 (29 April 2021)

Rejanala Farms and Projects (Pty) Ltd (5243/2019) [2021] ZAFSHC 131 (29 April 2021)

The court found that the applicants provided a satisfactory and full explanation for the delay in bringing the rescission application, including illness and multiple consultations. The evidence showed that the summons was not brought to the attention of the applicants due to an oversight by an employee, and they only became aware of the judgment upon execution. The court accepted that the applicants may have been misled regarding the relationship between the loan and grant, given the intertwined correspondence and documentation involving Masisizane Fund and Old Mutual entities. The applicants' defence of iustus error was found to be bona fide and potentially valid at trial. The court...

Citation
[2021] ZAFSHC 131
Parties
Applicant: Rejanala Farms and Projects (Pty) Ltd; Applicant: Kelebogile Linda Sambo; Applicant: Ntoko Sopile Moeletsi; Applicant: Francis Mande; Respondent: Masisizane Fund (NPC)
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
29 April 2021
Case Number
5243/2019
Procedural Posture
Rescission Application / Application for Rescission of Default Judgment and Condonation for Late Filing
Outcome
Application for rescission of judgment granted with costs; default order rescinded.
Judges
Molitsoane
Legal Topics
Rescission of Judgment, Condonation, Iustus Error, Loan Agreement, Misrepresentation
Civil Procedure Commercial and Corporate Rescission of Judgment Condonation Iustus Error Loan Agreement Misrepresentation

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Parties

Rejanala Farms and Projects (Pty) Ltd

Applicant

Kelebogile Linda Sambo

Applicant

Ntoko Sopile Moeletsi

Applicant

Francis Mande

Applicant

Masisizane Fund (NPC)

Respondent

Procedural Posture

Rescission Application / Application for Rescission of Default Judgment and Condonation for Late Filing

Legal Issues

  1. 1 Whether the applicants have shown good cause for rescission of the default judgment.
  2. 2 Whether condonation for the late filing of the rescission application should be granted.
  3. 3 Whether the applicants have a bona fide defence to the respondent's claim based on iustus error and alleged misrepresentation.

Ratio Decidendi

The court found that the applicants provided a satisfactory and full explanation for the delay in bringing the rescission application, including illness and multiple consultations. The evidence showed that the summons was not brought to the attention of the applicants due to an oversight by an employee, and they only became aware of the judgment upon execution. The court accepted that the applicants may have been misled regarding the relationship between the loan and grant, given the intertwined correspondence and documentation involving Masisizane Fund and Old Mutual entities. The applicants' defence of iustus error was found to be bona fide and potentially valid at trial. The court...

Court Disposition

Application for rescission of judgment granted with costs; default order rescinded.

Orders

  • The application for rescission of judgment is granted with costs.
  • The order granted by default on 12 March 2020 in favour of the Respondent is hereby rescinded.