Tshinondiwa v SA Taxi Development Finance (Pty) Ltd (21586/2020) [2022] ZAGPJHC 297 (6 May 2022)
- Citation
- [2022] ZAGPJHC 297
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- A Makume
- Case number
- 21586/2020
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- A Makume
- Case number
- 21586/2020
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that service of the summons and Section 129 notice was properly effected at the applicant's chosen domicilium address as stipulated in the credit agreement. The applicant failed to provide a reasonable and acceptable explanation for her default, did not demonstrate bona fides, and did not set out a bona fide defence to the respondent's claim. The court held that the requirements for rescission under Rule 42 and Rule 31(2)(b) were not met. Consequently, the application for rescission was dismissed and costs were awarded against the applicant.
Court disposition
Application for rescission dismissed with costs.
Orders
- The application is dismissed.
- The applicant is ordered to pay the respondent's taxed party and party costs.
02
Material facts
Parties
Thovhakale Tshinondiwa
Applicant Counsel: Adv SholeSA Taxi Development Finance (Pty) Ltd
Respondent Counsel: Adv Stevenson03
Procedural history
Posture
Rescission Application / Application for Rescission of Default Judgment
04
Questions and positions
Legal issues
- 01
Whether the default judgment was erroneously granted in the absence of the applicant.
- 02
Whether service of summons and Section 129 notice was effected at the correct address.
- 03
Whether the applicant has shown good cause and a bona fide defence for rescission.
Party arguments
- Applicant
- The applicant contended that no Section 129 demand letter was sent and that the summons was served at an incorrect address, namely not at her current residence but at the address stipulated in the credit agreement. She argued that the respondent knew she was residing elsewhere and that the court lacked jurisdiction to determine the amount owed under the agreement.
- Respondent
- The respondent argued that service was effected at the applicant's chosen domicilium as per the credit agreement, which is contractually binding. The respondent further submitted that the applicant failed to comply with Rule 31(2)(b) by not showing good cause or a bona fide defence, and that the application should be dismissed.
05
Court’s reasoning
Legal principles
- 01
Uniform Rules of Court, Rule 42
Rule 42 of the Uniform Rules of Court allows for rescission of judgments that were erroneously granted, are ambiguous, or contain patent errors or omissions.
- 02
United Building Society v Steinbach 1942 WLD 3; Hollards Estate v Kruger 1932 TPD 134; Gerber vs Stolze 1951 (2) SA 166 T; Loryn (Pty) Ltd v Solarsh Tea & Coffee 1984 (3) (W)
A chosen domicilium address in a contract is binding for service, even if the defendant is known not to reside there.
- 03
Rule 31(2)(b) Uniform Rules of Court
To succeed in a rescission application, the applicant must provide a reasonable explanation for default, prove bona fides, and show a bona fide defence.
06
Ratio, limits and disposition
Ratio decidendi
The court found that service of the summons and Section 129 notice was properly effected at the applicant's chosen domicilium address as stipulated in the credit agreement. The applicant failed to provide a reasonable and acceptable explanation for her default, did not demonstrate bona fides, and did not set out a bona fide defence to the respondent's claim. The court held that the requirements for rescission under Rule 42 and Rule 31(2)(b) were not met. Consequently, the application for rescission was dismissed and costs were awarded against the applicant.
Obiter and limits
- A letter of complaint to the Ombudsman, seeking clarification on deductions, does not constitute a bona fide defence.
- The court reiterated that service at a chosen domicilium is valid even if the party no longer resides there.
Court disposition
Application for rescission dismissed with costs.
- The application is dismissed.
- The applicant is ordered to pay the respondent's taxed party and party costs.
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
SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, JOHANNESBURG
CASE NO: 21586/2020
REPORTABLE:
NO
OF INTEREST TO OTHER JUDGES: NO
REVISED.
In the matter between:
THOVHAKALE
TSHINONDIWA
Applicant
and
SA TAXI DEVELOPMENT FINANCE (PTY) LTD
Respondent
JUDGMENT
MAKUME J:
[1] This is an application for rescission of a default judgment and for the return of a motor vehicle attached by the Sheriff pursuant to that judgment.
[2] It is common cause that the parties concluded a credit agreement on the 18th October 2016 in terms of which the Respondent leased to the Applicant a Toyota Quantum 2.7 Sesfikile 16s with engine number [….]. On the 17th October 2017 an addendum was concluded by the parties in terms of which the motor vehicle mentioned above was replaced by another Toyota motor vehicle.
[3] The Applicant breached the credit loan agreement as a result the Respondent issued summons where after it repossessed the motor vehicle after default judgment was granted.
[4] The summons as well as the Section 129 was sent and served at the chosen domicilum et executandi address as it appears in the agreement.
[5] This application is based on two grounds firstly that no Section 129 demand letter was sent to the Applicant. Secondly that the summons was never received by the Applicant as it was served at an incorrect address.
[6] The application is in terms of Rule 42 of the Uniform Rules of Court. That rule requires that the Applicant in order to succeed must demonstrate that the judgment was
6.1 erroneously granted in the absence of the Applicant.
6.2 that such judgment is ambiguous or there is a patent error or omission to the extent of such ambiguity.
6.3 Lastly that the judgment was granted as a result of a mistaken common to the parties.
[7] It is trite law that Rule 42 is designed to correct expeditiously an obvious wrong judgment or order (See: Kili and Others vs Msindwana in re: Msindwana v Kili and Others 2001 (1) ALL SA Law Report (TK) page 339).
[8] The Applicant’s case is that the Section 129 letter as well as the summons should have been served at Flat [....] E[....] G[....], Corner Albert and Delvers Streets, Johannesburg which address appears on an unsigned addendum documents and not at [....] L[....] M[....] Corner Bree and Loveday Streets, Johannesburg which is the Applicant’s chosen domicilum as appears on the credit loan agreement.
[9] Applicant’s counsel maintains that the issue in this application is whether the Respondent knew that the Applicant was now staying at [....] E[....] G[....]. Secondly that this court does not have the jurisdiction or authority to deal with the dispute concerning the amount owed by the Applicant to the Respondent in terms of the agreement.
[10] The argument and submissions advanced by counsel for the Applicant in support of Applicants contention are legally untenable.
[11] Ms Stevenson for the Respondent argued that the application should be dismissed for failure to comply with the requirements of Rule 31(2) (b) regarding the making out of a bona fide defence. That Rule requires good cause to be shown by the Applicant for rescission. The onus is on the Applicant to establish the existence of good cause for the court to exercise its discretion and set aside the judgment.
[12] The words “good cause” have been interpreted to mean that:
a) The Applicant must give a reasonable and acceptable explanation for the default.
b) The Applicant must prove that the application is bona fide and not made with the intention to merely delaying Plaintiff’s claim.
c) Applicant must show that he has a bona fide defence to Plaintiff’s claim.
[13] In this matter the Applicant has failed to prove that he has a valid defence. He referred the court to a letter of complaint that he addressed to the Ombudsman and says that is where the bona fide is. A reading of the letter by the Applicant demonstrates that she is asking for answers as to why the Respondent was no longer deducting the instalment from her account. That is not a bona fide defence.
[14] Applicant has failed to make allegations setting out the nature of her defence and the facts upon which such defence is based. He has not made any averments which if proved at the ensuing trial would entitle her to succeed in opposing the action.
[15] Service of the summons was effected at the Applicant’s chosen domicilum being 93 Lawson Mansion. Various decisions of the high court have stated that a chosen domicilum address is a contractual one and should be adhered to. The courts have also found that if a domicilum citandi has been chosen, service there will be good even though the Defendant is known not to be living there. (See: United Building Society v Steinbach 1942 WLD 3; Hollards Estate v Kruger 1932 TPD 134; Gerber vs Stolze 1951 (2) SA 166 T; Loryn (Pty) Ltd v Solarsh Tea & Coffee 1984 (3) (W)).
[16] The Applicant has failed to establish her pleaded case. Consequently, I have come to the conclusion that Applicant has failed to show good cause as is required by Rule 31(2) (b) nor the Common Law.
[17] In the result I make the following order:
ORDER
[1] The application is dismissed.
[2] The Applicant is ordered to pay the Respondent’s taxed party And party costs.
DATED at JOHANNESBURG this the 06 day of MAY 2022.
M
A MAKUME
JUDGE
OF THE HIGH COURT
DATE
OF HEARING : 3 MAY 2022
DATE OF JUDGMENT : 6 MAY 2022
FOR
APPLICANT :
ADV
SHOLE
INSTRUCTED BY :
MESSRS N.N. THOVHAKALE INC.
FOR
RESPONDENT :
ADV
STEVENSON
INSTRUCTED BY :
MESSRS MARIEN-LOU BESTER INC.
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