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South Africa Judgment

North Gauteng High Court, Pretoria

Versveld v Ers Business Systems (Pty) Ltd t/a Nashua, Pretoria (A252/08) [2010] ZAGPPHC 592 (5 March 2010)

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Source document

01

Holding and result

The court found that the summons was not properly served on the appellant in his capacity as surety, as the address used was chosen only for the principal debtor. The appellant did not receive service and was unaware of the proceedings until execution was attempted. The Magistrate erred by not considering whether proper service had occurred, rendering the judgment defective and unenforceable. Since the judgment was based on a summons not served on the appellant, the merits of the defence need not be examined, and the application for rescission should have been granted. The appeal was accordingly upheld.

Court disposition

Appeal upheld; Magistrate's judgment refusing rescission set aside.

Orders

  • The judgment of the Magistrate dated 21 December 2007 is set aside.
  • The default judgment entered against the appellant on 8 February 2007 is set aside.
  • The respondent is to pay the costs of the appeal.

02

Material facts

Parties

G Versveld

Appellant Counsel: Adv W J Roos

Ers Business Systems (Pty) Ltd t/a Nashua, Pretoria

Respondent Counsel: Adv H F Geyer

03

Procedural history

  1. Posture

    Civil Appeal / Appeal Against Refusal of Rescission of Default Judgment by Magistrate's Court

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant argued that he did not receive service of the summons and was unaware of the default judgment until the Sheriff arrived to execute. He contended that the address used for service was chosen only for the principal debtor, not for himself as surety, and therefore service was defective. He also set out substantive grounds of defence in his affidavit supporting the rescission application.
Respondent
The respondent maintained that the summons was served at the address designated as domicilium citandi et executandi, which it alleged was chosen by the appellant. The respondent relied on the authority of Leo Manufacturing CC v Robor Industrial (Pty) Ltd t/a Robor Stewarts and Lloyds, arguing that rescission should not be granted unless the applicant sets out grounds of defence, even if the default judgment is void ab initio.

05

Court’s reasoning

  1. 01

    Magistrates' Court Rules

    Proper service of summons is a prerequisite for a valid and enforceable judgment. If service is defective, the judgment cannot stand.

  2. 02

    Leo Manufacturing CC v Robor Industrial (Pty) Ltd t/a Robor Stewarts and Lloyds, 2007 (2) SA 1 (SCA)

    An applicant for rescission of a default judgment must set out the grounds of defence to the claim, even where the default judgment is void ab initio.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the summons was not properly served on the appellant in his capacity as surety, as the address used was chosen only for the principal debtor. The appellant did not receive service and was unaware of the proceedings until execution was attempted. The Magistrate erred by not considering whether proper service had occurred, rendering the judgment defective and unenforceable. Since the judgment was based on a summons not served on the appellant, the merits of the defence need not be examined, and the application for rescission should have been granted. The appeal was accordingly upheld.

Obiter and limits

  • It is not of decisive consequence whether the application for rescission was made in terms of the Magistrates' Court Rules or the common law, given the central issue of service.
  • The court avoided using the terms 'null and void' but emphasized the unenforceability of the judgment due to defective service.

Court disposition

Appeal upheld; Magistrate's judgment refusing rescission set aside.

  • The judgment of the Magistrate dated 21 December 2007 is set aside.
  • The default judgment entered against the appellant on 8 February 2007 is set aside.
  • The respondent is to pay the costs of the appeal.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment reading view

Judgment text

The complete available source text.

Source document

North Gauteng High Court, Pretoria

Judgment

[2010] ZAGPPHC 592

IN THE NORTH GAUTENG HIGH COURT. PRETORIA

REPUBLIC

OF SOUTH AFRICA

Case No: A 252/08

Date: 5 March 2010

Not reportable

Not of interest to other judges

In the matter between:

G VERSVELD.......................................................................................................................................Appellant

vs

ERS BUSINESS SYSTEMS (PTY) LTD

t/a NASHUA, PRETORIA.................................................................................................................Respondent

JUDGEMENT

CORAM: SAPIRE, AJ et DOLAMO, A J:

SAPIRE, AJ:

This is an appeal against a judgement of the Magistrate’s Court for the District of Pretoria, held at Pretoria. In terms of the judgement an application by the Appellant for rescission of a default judgement was refused with costs.

The events leading up to this point stem from a contract in which the Respondent hired equipment to a close coiporation of which the Appellant was the sole member. The Appellant is alleged to have bound himself as surety for and co principal debtor with the close corporation for the obligations of the latter ode to the PvCspondent. The close corporation was liquidated before the lease expired and the whereabouts of the equipment are at this stage unknown.

The Respondent has sought to recover from the Appellant the amount it claims as being due to it under the Agreement of Lease. To this end the Respondent issued a Summons in the Magistrate’s Court Pretoria and caused the Summons to be served at an address which it alleged to be a domicilium citandi et executandi chosen by the Appellant.

It is clear that the Appellant did not receive service of the f ummons and was unaware that default judgement had been taken by the Respondent until the Sheriff arrived at the Appellant’s home in order to serve a Warrant of Execution. The Appellant then made an application to rescind the Default Judgement but was unsuccessful therein and now seeks to have the Magistrate’s judgement refusing set aside.

There is only one point for decision in this matter, that being whether the Summons had been properly served. I have already mentioned the fact that the Respondent alleges that the address at which the Summons was served was the domicilium chosen by the Appellant.

Scrutiny of the documents in this matter comprising the lease of the equipment and the suretyship on which the Respondent’s claim is based reveal that the address in question was chosen by the Appellant on behalf of the principal debtor. Nowhere in the documents is there a choice by the Appellant of a domicilium for service on him as the surety.

As the service of the Summons was effected only by leaving a copy at the premises in question the Appellant’s contention that he never received service and was unaware of the Summons must be accepted.

The Magistrate did not consider whether proper service had taken place when she dismissed the application for rescission. In this she erred for the judgment was defective and unenforceable on this account. I avoid the use of the words nul and void in this connection.

Because of this the merits of the defence do not have to be examined and any delay in bringing the application and this appeal should be condoned.

Counsel for Respondent referred the Court to Leo Manufacturing CC vs Robor Industrial (Pty) Ltd t/a Robor Stewarts and Lloyds, 2007 (2) SA 1. This is a judgement of the Supreme Court of Appeal and if undistinguishable is binding on this Court.

The headnote of the judgement reads:

“An applicant for rescission of a default judgement will not be successful in his application if he does not set out the grounds of his defence to the Respondent’s claim in the Summons even where the default judge vent was void aborigine. ”

A distinguishir feature of the present case is that the Appellant did set forth in his Affidavit in support of the application a number of contentions on which he would rely as a defence to the Respondent’s claim. As the judgement in this matter was founded on a Summons which had not been served it is not necessary to enquire into the merits of the Appellant’s contention and the application for rescission should have been granted.

In all the circumstances of this case it is not of decisive consequence whether the application for rescission was made in terms of the Rules of the Magistrate’s Court or in terms of the Common Law.

As the central issue of service is to be decided in the Appellant’s favour.

The appeal must succeed.

The order of this Court is:

1. The judgement of the Magistrate dated the 21s1 of December 2007 is set aside.

2. The default judgement entered against the Appellant on 8lh February 2007 is set aside.

3. The Respondent is to pay the costs of this appeal.

SAPIRE

ACTING JUDGE OF

THE NORTH GAUTENG HIGH COURT

PRETORIA

I agree:

DOLAMO

APPELLANTS ATTORNEYS: VON REICHE INCORPORATED

Schoeman Street 765

ARCADIA, PRETORIA

P O Box 28742, SUNNYSIDE, 0132

Tel: (012) 343-0377

Fax: (012) 343-0376

Ref: Mr Von Reiche/mvdm/Vl 125

RESPONDENT’S ATTORNEYS: PAGEL SCHULENBURG INC

C/o HACK STUPEL &ROSS

ATTORNEYS

STANDARD BANK

CHAMBERS

CHURCH SQUARE

PRETORLA

Ref: S Schulenburg/ws/R00947/C.J. VAN WYK/HB8656

APPELLANTS COUNSEL:

ADV W J ROOS

RESPONDENT’S COUNSEL: ADV H F GEYER

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Leo Manufacturing CC v Robor Industrial (Pty) Ltd t/a Robor Stewarts and Lloyds, 2007 (2) SA 1 (SCA)

Case cited

Magistrates' Court Rules

Legislation

Legislation referenced in the available case record.

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