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HH119-11 - DANIEL DUBE and DANIEL TECHNOLOGIES P/L vs OLD MUTUAL PROPERTIES and DEPUTY SHERIFF HARARE

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Procedural Law-viz urgent chamber application.
Law of Contract-viz Deed of Settlement.
Procedural Law-viz default judgment.
Procedural Law-viz default judgment re proof of service of court process iro person upon whom court process is served.
Procedural Law-viz urgent application re stay of execution.
Self Actors-viz right of appearance before the court.
Legal Practitioners-viz right of appearance before the court re right of appearance on behalf of a corporate entity.
Self Actor-viz right of appearance before the court re right of appearance on behalf of a corporate body iro the alter ego of the corporate entity.
Procedural Law-viz rescission of judgment re prospects of success.

Interim Interdict Pendente Lite and Stay of Execution re: Approach

The first applicant is a Director of the second applicant company Daniel Technologies P/L. The first respondent is a company in the business of letting out properties. On or about July 2008, the parties concluded a written lease agreement in respect of premises situate at 14th Floor, North Wing, Cabs Centre Stand Number 736B corner Sam Nujoma and Jason Moyo Avenue Harare.

The second applicant subsequently fell into arrears resulting in the parties concluding a Deed of Settlement on 15 October 2009 in the following terms:

“1. The lessee shall settle US$12,627=09, which is part payment of the balance of its outstanding rent and operating costs for the leased premises for the period January to October 2009, not later than 31 October 2009.

2. US$12,627=09, which is the balance of the lessee outstanding and operating costs for the period January to October 2009, shall be settled no later than 30 November 2009.

3. In the event of Breach of this Deed of Settlement the lessor shall have the right to immediately cancel the lease agreement and demand vacant possession of the leased premises.

4. The Lessee shall be liable for legal costs at the legal practitioner and client scale.”

By 3 March 2010, the lessee had made no payments at all and the amount owing had ballooned to US$28,198=54. As a result, the first respondent obtained a default order against both applicants in the following terms:

“a. The 1st and 2nd Respondents shall pay to the Applicant jointly and severally one paying the other to be absolved US$28,198= 54.

b. Interest thereon of 5% per annum from November 2009 to date of payment in full.

c. Cost of suit on the legal practitioner client scale.”

A perusal of the record of proceedings shows that the relevant notices were served on an employee of the second applicant.

The judgment debt not having been satisfied, the first respondent obtained a Writ of Execution on 15 March 2010. On 17 May 2011, the second respondent attached and served a notice of removal on the first applicant. This prompted him to lodge this urgent chamber application for stay of execution pending the determination of the application for rescission of judgment he has already lodged with this Court….,.

Before me the first applicant stated that he is not disputing liability but was pleading for time to pay since he had no capacity to pay because currently he is unemployed and the second respondent is not operating. This is what he had to say:

“The company is currently non-existent. My lease was in Zimbabwean dollars. I have written them a letter to say what I can afford. I do not deny liability. I do not deny anything. I am willing to pay. Right now I am not working and the company is not operational. I can't say where I will get the money from because I am not working and the company is not operational but I will look for the money and pay them.”

It is needless to say that the applicants have failed to put up a case showing that they have any prospects of success in reversing the order that they want stayed. They have also failed to establish that they have the capacity to settle the judgment debt within a reasonable time to warrant any leniency. That being the case, the first respondent cannot be faulted for insisting on execution. For that reason, the application for stay of execution cannot succeed.

It is accordingly ordered that the application for stay of execution be and is hereby dismissed with costs at the legal practitioner and client scale.

Practicing Certificates and Right of Audience before Courts re: Non-Legal Practitioner Representative Capacity


In this application he purports to represent himself and the second applicant.

Costs re: Consensual, Consent Orders or Orders By Consent, Tender of Costs and Contractual


It was a term of the written lease agreement that costs shall be at the higher scale. The Court has a duty to honour that undertaking.

BHUNU J: The first applicant is a director of the second applicant company Daniel Technologies P/L. The first respondent is a company in the business of letting out properties.

On or about July 2008 the parties concluded a written lease agreement in respect of premises situate at 14th Floor, North Wing, Cabs Centre Stand Number 736B corner Sam Nujoma and Jason Moyo Avenue Harare.

The second applicant subsequently fell into arrears resulting in the parties concluding a deed of settlement on 15 October 2009.in the following terms:

 

   “1.    The lessee shall settle US$12,627.09, which is part payment of the balance of its outstanding rent and operating costs for the leased premises for the period January to October 2009 not later than 31 October 2009.

2.      US$12,627.09, which is the balance of the lessee outstanding and operating costs for the period January to October 2009, shall be settled no later than 30 November 2009.

3.      In the event of Breach of this Deed of Settlement the lessor shall have the right to immediately cancel the lease agreement and demand vacant possession of the leased premises.

4.      The Lessee shall be liable for legal costs at the legal practitioner and client scale”

 

By 3 March 2010 the lessee had made no payments at all and the amount awing had ballooned to US$28, 198.54. As a result the 1st respondent obtained a default order against both applicants in the following terms:

 

     “a.   The 1st and 2nd Respondents shall pay to the Applicant jointly and severally one paying the other to be absolved US$28 198, 54.

           

b.                  Interest thereon of 5% pre annum from November 2009 to date of payment in full.

c.                   Cost of suit on the legal practitioner client scale”.

 

A perusal of the record of proceedings shows that the relevant notices were served on an employee of the second applicant.

The judgment debt not having been satisfied, the first respondent obtained a writ of execution on 15 March 2010. On 17 May 2011 the second respondent attached and served a notice of removal on the first applicant. This prompted him to lodge this urgent chamber application for stay of execution pending the determination of the application for rescission of judgment he has already lodged with this Court. In this application he purports to represent himself and the second applicant.

Before me the first applicant stated that he is not disputing liability but was pleading for time to pay since he had no capacity to pay because currently he is unemployed and the second respondent is not operating. This is what he had to say:

 

“The company is currently non existent. My lease was in Zimbabwean dollars. I have written them a letter to say what I can afford. I do not deny liability. I do not deny anything. I am willing to pay.

 

Right now I am not working and the company is not operational. I can't say where I will get the money from because I am not working and the company is not operational but I will look for the money and pay them.”

 

It is needless to say that the applicants have failed to put up a case showing that they have any prospects of success in reversing the order that they want stayed. They have also failed to establish that they have the capacity to settle the judgment debt within a reasonable time to warrant any leniency. That being the case, the first respondent cannot be faulted for insisting on execution. For that reason the application for stay of execution cannot succeed. It was a term of the written lease agreement that costs shall be at the higher scale. The Court has a duty to honour that undertaking.

It is accordingly ordered that the application for stay of execution be and is hereby dismissed with costs at the legal practitioner and client scale.

 

 

 

 

 

 

 

 

Gill, Godlonton & Gerrans, 1st respondent's legal practitioners.
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