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HH272-10 - NICHOLAS VAN HOOGSTRATEN vs FELISTAS JAMES and THE SHERIFF FOR ZIMBABWE and THE CHIEF REGISTRAR OF DEEDS

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Procedural Law-viz sale in execution.

Procedural Law-viz rules of court re High Court Rules iro Rule 259.
Procedural Law-viz sale in execution re Rule 259.
Procedural Law-viz High Court Rules re Rule 259 iro objection to a sale in execution.
Law of Contract-viz specific performance.
Law of Contract-viz specific performance re sale in execution.
Procedural Law-viz summary judgment.
Procedural Law-viz summary judgment re liquidated claim.
Procedural Law-viz summary judgment re unliquidated claim.
Procedural Law-viz pleadings re amendment to pleadings,
Procedural Law-viz pleadings re amendment to pleadings iro summary judgment proceedings.
Procedural Law-viz summary judgment re severable claims.
Procedural Law-viz summary judgment re answering affidavit.
Procedural Law-viz summary judgment re audi alteram partem rule.
Procedural Law-viz res judicata,
Law of Contract-viz specific performance re specific performance ex contractu.
Banking Law-viz payment systems.
Banking Law-viz payment systems re cheque payments.

Summary Judgment: Clear and Unanswerable Claims re: Approach

Sometime in August 2005, and at a sale in execution, the applicant purchased the first respondent's rights, title, and interest, in Stand 124, The Grange Township of the Grange, commonly known as Number 4 Wroxham Road, The Grange, Harare...,. On 7 September 2005, the second respondent confirmed the sale. The first respondent then filed an objection to the sale in terms of Rule 259.

The second respondent dismissed the objection on 4 October 2005.

The first respondent proceeded to file an application, to this court, for the sale to be set aside. The application was dismissed with costs on 1 June 2006.

The first respondent appealed against the decision to the Supreme Court. The appeal was struck off the roll for want of compliance with the Supreme Court Rules. An attempt to have the matter re-instated was dismissed by the Supreme Court on 4 June 2008.

In the meantime, the second respondent, in a letter dated 4 January 2006, but only delivered to the applicant on 4 February 2009, advised that he had recommended that the sale be aborted as the creditor had been paid in full. He also returned the applicant's cheque which he advised was now stale.

On 11 May 2009, the applicant instituted an action whereby he claims an order directing the second defendant to transfer the first defendant's right, title, and interest in the property to him, ejectment of the first defendant and all those claiming through her from the property and cost of suit.

The first respondent entered appearance to defend.

The applicant then filed the present proceedings for summary judgment.

It was contended by the applicant that all issues raised by the first respondent in her defence are res judicata. The first respondent, in effect, seeks to impugn the validity of the sale of the property. This issue has been adjudicated upon by this court and the Supreme Court.

The first respondent opposes the application on two main grounds.

She contends that the applicant claims damages, which are not liquidated, through summary judgment procedure. In the summons and declaration, the applicant claims holding over damages in the sum of $1,000=. In the application for summary judgment the amount of $1= per month is mentioned. No application to amend the summons and declaration was made.

Secondly, she contends that the applicant did not pay the purchase price. He made a payment by a cheque which cheque was not deposited. The cheque became stale and was later returned to him.

The procedure of summary judgment is not available in a claim for damages which are not liquidated.

In casu, the first respondent puts in issue the question of liability and obviously the quantum. It does not assist the applicant to reduce the claim to a nominal amount of US1= as he still has to prove the basis for claiming the amount.

The applicant submitted that if the court were not inclined to grant to it damages, it can still grant the other relief claimed. His application is three-pronged and severable. Each claim should be considered separately.

In the case of Garlicks Wholesale v Davis 1927 CPD 185 as quoted in Hugo Franco (Pty) Ltd v Gordon 1956 (4) SA 482..., GARDNER JP remarks -

“Summary judgment could only be granted in respect of all the plaintiff's claims in his summons not only such as he selected as the separate subject of summary judgment.”

MURRAY CJ in the Hugo Franco (Pty) Ltd v Gordon 1956 (4) SA 482 case..., continued-

“Prime facie, the plaintiff could have avoided those difficulties if, prior to making its application for summary judgment, it had amended its summons abandoning its alternative claim for the payment of damages and its claim for interests.”

I share the view as expressed above.

Summary judgment procedure is meant to be simple and straight forward. If parties were allowed to amend or sever claims at summary judgment it defeats the whole purpose of having the procedure in place. It is no wonder that an applicant is not allowed to file an answering affidavit in summary judgment proceedings.

The applicant cannot succeed in its quest to have the order severed.

Assuming I am wrong on the point, I will proceed to determine the other issues.

The law of summary judgment is settled in our jurisdiction. It is a drastic remedy in which the plaintiff, whose belief is that the defence is not bona fide and entered solely for dilatory purposes, should be granted immediate relief without the expense and delay of trial. See Chiadzwa v Paulkner 1991 (2) ZLR 33 (5) and Coleman v Sahange SC132-91. It has far reaching consequences as it effectively denies the defendant the benefits of the fundamental principle of audi alteram partem rule. See Nedlaw Investments and Truth Corp Ltd v Zimbabwe Development Bank SC05-00.

It can only be granted to the plaintiff when all proposed defences to the plaintiff's claim are clearly inarguable both in fact and in law. See Chrisnar (Pvt) Ltd v Stutchbury and Anor 1973 (1) RLR 277 G...,.

The defence does not have to establish its defence on the probabilities. All she need allege are facts which disclose a defence. These facts, if pleaded and accepted at the trial, must be sufficient to establish their defence. See Jena v Nechipote 1986 (1) ZLR....,.

Pleadings re: Amendment to Pleadings, Summons, Declaration and Draft Orders iro Summary Judgment Proceedings

In any event, the applicant cannot use the affidavit in summary judgment proceedings to amend the summons and declaration. It is merely supposed to verify the cause of action. In actual fact, there is no room for amendment of the summons in an application of summary judgment. See Cold Storage Commission of Rhodesia v Gey Van Pittius GB 21/73 (not reported).

In casu, the plaintiff could have amended its summons abandoning the claim for damages before filing the present application.

Specific Performance re: Approach, Impossibility of Performance and the Exceptio Non Adimpleti Contractus

It is common cause that the applicant made payment to the second respondent through a cheque. The cheque was not deposited. The cheque was later returned to the applicant as it had become stale. It is also common cause that the first respondent paid the judgment creditor through other means.

The issue of whether the applicant paid the purchase price of the property is, in my view, not res judicata. It only came to light in February 2009 when the applicant received the letter from the second respondent advising that the sale had been aborted. The matter before MUSAKWA J was concluded in June 2006.

The applicant is suing for specific performance.

He has not performed his obligations in terms of the contract of sale, neither has he tendered performance. Although he tendered a cheque to the second respondent, his estate was not diminished by the amount of the cheque as it was not deposited. What the applicant is asking the court to do is to order specific performance when he has not paid a cent for the property.

In effect he will get the property for free.

Payment Systems and Negotiable Instruments


There is also the issue of when a payment by cheque becomes a payment in terms of the purchases obligations.

Judicial Sale in Execution re: Approach, Suspension, Setting Aside, Foreclosure Proceedings and Forced Sales

In any event the first respondent paid to the judgment creditor through other means and not from the proceeds of the sale.

In sales in execution, the responsibility of officers of execution is first to the judgment creditor and secondly to the debtors. See Maparanyanga v Sheriff of the High Court & Ors 2003 (1) ZLR 325 S...,.

If the first respondent paid the judgment creditor, could the second respondent still proceed with the sale?

Having considered the above, it is my view that the first respondent has alleged facts which disclose a defence. In the result I will make the following order-

The application is dismissed with costs.

MAKONI J:  Sometime in August 2005 and at a sale in execution the applicant purchased the first respondent's rights title and interest in Stand 124, The Grange Township of the Grange commonly known as number 4 Wroxham Road The Grange Harare (the property). On 7 September 2005, the second respondent confirmed the sale. The first respondent then filed and objection to the sale in terms of rule 259. The second respondent dismissed the objection on 4 October 2005.

            The first respondent proceeded to file an application, to this court, for the sale to be set aside. The application was dismissed with cost on 1 June 2006. First respondent appealed against the decision to the Supreme Court. The appeal was struck off the roll for want of compliance with Supreme Court Rules. An attempt to have the matter re-instated was dismissed by the Supreme Court on 4 June 2008.

            In the meantime, the second respondent, in a letter dated 4 January 2006, but only delivered to the applicant on 4 February 2009, advised that he had recommended that the sale be aborted as the creditor had paid in full. He also returned the applicant's cheque which he advised was now stale.

            On 11 May 2009, the applicant instituted an action whereby he claims an order directing the second defendant to transfer the first defendant's right title and interest in the property to him, ejectment of the first defendant and all those claiming through her from the property and cost of suit. The first respondent entered appearance to defend. The applicant then filed the present proceedings for summary judgment.

            It was contended by the applicant that all issues raised by the first respondent in her defence are res judicata. The first respondent in effect seeks to impugn the validity of the sale of the property. This issue has been adjudicated upon by this court and the Supreme Court.

            The first respondent opposes the application on two main grounds. She contends that the applicant claims damages, which are not liquidated, through summary judgment procedure. In the summons and declaration, the applicant claims holding over damages in the sum of $1000-00. In the application for summary judgment the amount of $1 per month is mentioned. No application to amend the summons and declaration was made.

            Secondly she contends that the applicant did not pay the purchase price. He made a payment by a cheque which cheque was not deposited. The cheque became stale and was later returned to him.  

            The procedure of summary judgment is not available in a claim for damages which are not liquidated. In casu the first respondent puts in issue the question of liability and obviously the quantum. It does not assist the applicant to reduce the claim to nominal amount of US1 as he still has to prove the basis for claiming the amount. In any event, the applicant cannot use the affidavit in summary judgment proceedings to amend the summons and declaration. It is merely supposed to verify the cause of action. In actual fact there is no room for amendment of the summons in an application of summary judgment. See Cold Storage Commission of Rhodesia v Gey Van Pittius GB 21/73 (not reported).

            Applicant submitted that if the court were not inclined to grant to damages, if can still grant the other relief claimed. His application is three pronged and severable. Each claim should be considered separately.  

            In the case of Garlicks Wholesale v Davis 1927 CPD 185 as quoted in Hugo Franco (Pty) Ltd v Gordon 1956(4) SA 482 at 484 D-F GARDNER JP remarks:

“summary judgment could only be granted in respect of all the plaintiffs claims in his summons not only such as he selected as the separate subject of summary judgment”  

 

MURRAY CJ in the Hugo Franco case supra continued:

 

Prime facie, the plaintiff could have avoided those difficulties if, prior to making its application for summary judgment, it had amended its summons abandoning its alternative claim for the payment of damages and its claim for interests”

 

            I share the view as expressed above. Summary judgment procedure is meant to be simple and straight forward. If parties were allowed to amend or sever claims at summary judgment, it defeats the whole purpose of having the procedure in place. It is no wonder that an applicant is not allowed to file an answering affidavit in summary judgment proceedings. 

            In casu, the plaintiff could have amended its summons abandoning the claim for damages before filing the present application. The applicant cannot succeed in its quest to have the order severed.

            Assuming I am wrong on the point, I will proceed to determine the other issues.

            The law of summary judgment is settled in our jurisdiction. It is a drastic remedy in which the plaintiff, whose belief is that the defence is not bona fide and entered solely for dilatory purposes, should be granted immediate relief without the expense, and delay of trial. See Chiadzwa v Paulkner 1991(2) ZLR 33(5) and Coleman v Sahange SC 132/91. It has far reaching consequences as it effectively denies the defendant the benefits of the fundamental principle of audi alterem partem rule. See Nedlaw Investments and Truth Corp Ltd v Zimbabwe Development Bank S 5/2000.   

            It can only be granted to the plaintiff when all proposed defences to the plaintiff's claim are clearly inarguable both in fact and in law. See Chrisnar (Pvt) Ltd v Stutchbury and Anor 1973 (1) RLR 277 G at 279.

            The defence does not have to establish its defence on the probabilities. All she need allege are facts which disclose a defence. These facts if pleaded and accepted at the trial, must be sufficient to establish their defence. See Jena v Nechipote 1986(1) ZLR at 30.

            The first respondent's defence to the applicant's claim of specific performance is that the applicant did not pay the purchase price. It is common cause that the applicant made payment to the second respondent through a cheque. The cheque was not deposited. The cheque was later returned to the applicant as it had become stale. It is also common cause that the first respondent paid the judgment creditor through other means.

            The issue of whether the applicant paid the purchase price of the property, is in my view, not res judicata. It only came to light in February 2009 when the applicant received the letter from the second respondent advising that the sale had been aborted. The matter before MUSAKWA J was concluded in June 2006.    

            The applicant is suing for specific performance. He has not performed his obligations in terms of contract of sale neither has he tendered performance. Although he tendered a cheque to the second respondent, his estate was not diminished by the amount of the cheque as it was not deposited: What the applicant is asking the court to do is to order specific performance when he was not paid a cent for the property. In effect he will get the property for free. There is also the issue of when a payment by cheque becomes a payment in terms of the purchases obligations

            In any event the first respondent paid to the judgment creditor through other means and not from the proceeds of the sale. In sales in execution the responsibility of officers of execution is first to the judgment creditor and secondly to the debtors. See Maparanyanga v Sheriff of the High Court & Ors 2003(1) ZLR 325 S at 335C. If the first respondent paid the judgment creditor, could the second respondent still proceed with the sale?

            Having considered the above, it is my view that the first respondent has alleged facts which disclose a defence. In the result I will make the following order.

            The application is dismissed with costs.

 

 

 

Ziumbe & Mtambanengwe, applicant's legal practitioners

Manase & Manase, first respondent's legal practitioners
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