Trigger Reaction Security Service v City of Tshwane Metropolitan Municipality (48493/12) [2012] ZAGPPHC 356 (11 December 2012)

Trigger Reaction Security Service v City of Tshwane Metropolitan Municipality (48493/12) [2012] ZAGPPHC 356 (11 December 2012)

The application for security for costs was dismissed because the applicant failed to provide credible evidence that the respondent was insolvent or unable to satisfy an adverse costs order. The only evidence relied upon was the respondent's inability to pay its employees, which was insufficient to establish insolvency or financial incapacity. The urgency of the application was not justified, and the respondent was given inadequate time to respond. The court found that the enforcement of section 8 of the Close Corporations Act would lead to inequality before the law, but this was not the basis for dismissal. Regarding the Rule 49(11) application, the court found that the interim order...

Citation
[2012] ZAGPPHC 356
Parties
Applicant: Trigger Reaction Security Service; Respondent: City of Tshwane Metropolitan Municipality; Respondent: Gondo Security Services (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
11 December 2012
Case Number
48493/12
Procedural Posture
Urgent Application / Application for Security for Costs and Application Under Rule 49(11)
Outcome
Application for security for costs dismissed; application under Rule 49(11) granted with costs.
Judges
Tlhapi V V
Legal Topics
Security for Costs, Close Corporations Act, Rule 49 11 Execution Pending Appeal, Constitutional Right of Access to Courts
Civil Procedure Commercial and Corporate Security for Costs Close Corporations Act Rule 49 11 Execution Pending Appeal Constitutional Right of Access to Courts

Case Brief

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Parties

Trigger Reaction Security Service

Applicant

City of Tshwane Metropolitan Municipality

Respondent

Gondo Security Services (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application for Security for Costs and Application Under Rule 49(11)

Legal Issues

  1. 1 Whether the applicant should be ordered to furnish security for costs under section 8 of the Close Corporations Act.
  2. 2 Whether the operation or execution of the interim order should be suspended pending appeal under Rule 49(11).

Ratio Decidendi

The application for security for costs was dismissed because the applicant failed to provide credible evidence that the respondent was insolvent or unable to satisfy an adverse costs order. The only evidence relied upon was the respondent's inability to pay its employees, which was insufficient to establish insolvency or financial incapacity. The urgency of the application was not justified, and the respondent was given inadequate time to respond. The court found that the enforcement of section 8 of the Close Corporations Act would lead to inequality before the law, but this was not the basis for dismissal. Regarding the Rule 49(11) application, the court found that the interim order...

Court Disposition

Application for security for costs dismissed; application under Rule 49(11) granted with costs.

Orders

  • The application for security for costs is dismissed with costs.
  • The application as contained in paragraph 2 of the Notice of Motion is granted with costs.