This
is an opposed application in which the applicant seeks the setting aside of the
judgement in case HC6820/11, handed down on 30 August 2011 (which is a matter
between the first respondent, Robert Matoka v Daniel Tembinkosi Dube and Another).
The
basis for seeking the setting aside of the judgement is that it was ...
This
is an opposed application in which the applicant seeks the setting aside of the
judgement in case HC6820/11, handed down on 30 August 2011 (which is a matter
between the first respondent, Robert Matoka v Daniel Tembinkosi Dube and Another).
The
basis for seeking the setting aside of the judgement is that it was obtained by
fraud as the court application leading to the granting of the default judgement
was never served on the respondent, Daniel Tembinkosi Dube….,.
The
terms of the order sought by the applicant are couched as follows;
“IT
IS ORDERED THAT;
1.
The judgement in case no. HC6820/11, handed down on 31 August 2011, in the matter between
Robert Matoka v Daniel Tembinkosi Dube and Another, be and is hereby rescinded.
2.
The transfer of the property, known as Stand 106 Quinnington Township of
Subdivision K of Quinnington of Borrowdale Estate measuring 8,397 square
metres, to Robert Matoka, under Deed of Transfer number 2261/2012, be and is
hereby set aside.
3.
The second respondent is hereby ordered to reinstate Deed number 6366/00, dated
11 July 2000, in the name of Daniel Tembinkosi Dube.
4.
The Agreement of Sale between Daniel Tembinkosi Dube and Robert Matoka, entered
into on 20 May 2011, be and is hereby declared null and void ab initio and is set aside.
5.
The first respondent pays the costs of suit.”…,.
At
the commencement of the hearing, counsel for the first respondent withdrew one
of the two points in limine he had raised. I
dismissed the remaining point in limine after hearing
arguments by both counsel for lack of merit.
Counsel
for the first respondent had taken the point that this application should be
dismissed as it was made out of time and that no explanation for the delay has
been given by the applicant.
There
is no merit in this argument as this application is not being brought in terms
of Rule 63(1) of the High Court Rules 1971 which gives a time limit in which to
apply for rescission of a judgement granted in default. This application
is being made in terms of Rule 449(1)(a) of the High Court Rules 1971 which
relates to setting aside or rescinding a judgment or order given in
error. There is no time limit prescribed in respect of this Rule. The
applicant also seeks the setting aside of that judgment on the basis of the
common law ground of fraud. The applicant said she became aware of the
judgment on 10 July 2012, hence the cause of action cannot be said to have
prescribed.
It
is on this basis that I dismissed the points in limine….,.
The
applicant seeks the setting aside or rescission of the court order in HC6820/11
on the basis of Rule 449(1)(a) of the Rules, that it was erroneously granted in
the absence of the deceased as the first respondent is alleged to have
fraudulently engineered the non-service of the application. The error
referred to by this applicant is fraud. The applicant further seeks the
setting aside of the Agreement of Sale of the property on the basis of lack of compos mentis on the part of the deceased at the time of
the transaction.
In
terms of Rule 449(1)(a) of the Rules, a party affected by the judgment or order
that was erroneously granted in his or her absence is allowed to apply for the
rescission of that judgment or order. See Matambanadzo v
Goven 2004 (1) ZLR 399 (S)…,.
In
relation to the allegation of fraud, the applicant, in her founding affidavit,
raised a number of irregularities she said she unearthed which confirm that the
first respondent committed fraud.
The
deceased died on 3 July 2012 and the cause of death is chronic kidney
failure. He died at Parirenyatwa Hospital. The applicant said it was
after the deceased's death and burial that the first respondent was approached
by Gift Shoko and one Mike Dube and asked to pay rentals and that the first
respondent then claimed, for the first time, that he had bought the property
and held title to the property.
As
already said, this is disputed by the first respondent.
The
applicant said this prompted her to carry out a Deeds Search, and, on 11 July
2012, she established that the transfer had not been done, contrary to the
first respondent's assertions. She said the attempts to obtain the
Agreement of Sale were unsuccessful as Itayi Munyeza, of First Capital Plus,
was un-cooperative. The applicant then requested the Registrar of Deeds to
place an XN caveat on the property but this was declined in the absence of a
court order. The applicant said First Capital Plus, who were said to have
the title deeds, remained uncooperative. The applicant said she suspected
that the deceased had borrowed money from First Capital Plus using title deeds
to the property as surety. The applicant said she only established later
that the first respondent had hurriedly effected transfer on 18 July 2012 on
the basis of a court order in HC6820/11 granted in default and the deceased was
compelled to transfer the property to the first respondent on the basis of an
Agreement of Sale.
According
to the applicant, her investigations revealed a number of irregularities which
she outlined as follows:-
i)
That the Deputy Sheriff was granted the power of attorney to transfer the
property on 11 July 2012; soon after the deceased's death on 3 July
2012. According to the applicant, this was irregular and improper as no
curator or executor to the deceased's estate had been appointed.
ii)
That the first respondent only started to put into motion the fraudulent
process of transfer of the property after the deceased's death.
iii)
That the court application, HC6820/11, to compel transfer, was served at No.11
Scanlen Drive, Quinnington, Harare, where the first respondent was now staying,
and not the deceased, who was now staying at No.20 Clovelly Road, Chadcombe,
Harare and had given that address as his domicilium as per the
Agreement of Sale. According to the applicant, there was a deliberate ploy
and misrepresentation by the first respondent to serve the court application
where the deceased was not staying. Thus, the first respondent served the
court application on himself.
iv)
That the return of service of the court application shows that the court
application had been served on the deceased's employee, one Nickson Chabvunda,
when the truth is that the deceased never had such an employee who is also not
known to this applicant and the deceased's relatives. According to the
applicant, this employee is fictitious. This would mean that the court
order to compel transfer was fraudulently obtained without proper service.
v)
That the court application was purportedly served on 14 July 2011 when it had
been issued in August 2011. The Applicant queries how service could have
been effected before the process itself had been issued out.
vi)
That the forced transfer of the property was premised on an Agreement of Sale,
which Agreement of Sale, according to the applicant, is invalid because the
deceased had no mental capacity to enter into any agreement; a fact the
applicant says the first respondent was well aware of.
vii)
That the property was sold for a paltry US$50,000= when its current value, as
per the Valuation Certificate, Annexure 1, is US$230,000=. According to
the applicant, this puts into issue the genuinesses of the sale of the
property, and the deceased's mental state.
viii)
That it is not even clear if the deceased was paid any purchase price as the
acknowledgment of receipt of money by the deceased from the first respondent is
fraudulent because it does not show when and how this purchase price was
paid. The applicant stated that she doubts that a mere constable in the
police had the wherewithal to even raise this US$50,000= in one month.
It
is on the basis of the above alleged irregularities that the applicant seeks to
have the order in HC6820/11 set aside on the basis that it was fraudulently
obtained.
It
is the applicant's case that the court application was, in fact, never served
on the deceased and that the Agreement of Sale is invalid as the deceased
lacked mental capacity to contract. It is on this basis that the applicant
seeks an order to set aside the transfer of the property to the first
respondent on account of the fact that it is based on an order obtained by
fraud and was done without the Master of the High Court's consent. A
declaration to the effect that an Agreement of Sale is void on account of lack
of mental capacity by the deceased to enter into such an agreement is sought on
the same basis.
The
first respondent has not only disputed the deceased's alleged lack of mental
capacity to contract but also disputed that there was impropriety, let alone
fraud, in the transfer process of the property. The first respondent also
denied that the transfer of this property was hurriedly done after the
deceased's death.
Let
me deal with the first respondent's version of events on the irregularities
raised by the applicant:
i)
The first respondent disputes that there was any impropriety in effecting the
transfer of the property after the deceased's death.
ii)
The first respondent denies that the transfer process was hurriedly done after
the deceased's death. The first respondent said when the deceased delayed
to facilitate transfer, probably in a bid to avoid paying capital gains tax as
he was a financial expert, he breached the Agreement of Sale. This
prompted the first respondent to make a court application, in HC6820/11, on 13
July 2011, to compel transfer which a court order was granted on 30 August
2011. According to the first respondent, the deceased had signed an
acknowledgement of payment of the purchase price of US$50,000= on 22 June
2011. (See p103 of the record). This acknowledgment of payment was
signed by the first respondent and the deceased. It is not clear if the
applicant puts the deceased's signature into issue on this document or simply
relies on the deceased's alleged lack of mental capacity. The first
respondent stated that the transfer of the property is a process not an event
and that it started in July 2011 almost a year before the deceased's death and
that the rates clearance certificate (see p108) was only obtained on 22 March
2012 and expired in May 2012.
iii)
The first respondent denied committing any fraudulent act preceding the court
application in HC6820/11 as alleged. He said after executing the lease
agreement…, dated 30 December 2010, the deceased and the first respondent
entered into an Agreement of Sale of the same property on 20 May 2011…,. Both
the Lease Agreement and the Agreement of Sale bear the deceased's signature.
The first respondent stated that the Agreement of Sale was drafted by a legal
practitioner, Mr Chinyama, chosen by the
deceased. This is confirmed by Mr Chinyama in his
supporting affidavit. The first respondent said that the full purchase
price was paid in terms of the Agreement of Sale and that one Itayi Munyeza, in
his supporting affidavit, confirms this fact.
iv)
The first respondent admits that in terms of the Agreement of Sale the
deceased's domicilium was No.20 Clovelly Road,
Chadcombe, Harare and that the court application was not served at that address
but at the property in issue. According to the first respondent, the
deceased was aware of the court application as per the affidavit of one Webster
Mandimutsa. an employee in the firm Chinyama and Associates who served the
court application. In his affidavit, Webster Mandimutsa stated that on 14
July 2011 he was asked to serve the court application on the deceased at No.20
Clovelly Road, Chadcombe. However, before he did that he telephoned the
deceased on his mobile number which he had to confirm his whereabouts. He
said the deceased advised him to proceed to No.11 Scanlen Drive, Quinnington,
Borrowdale, Harare (the property) and serve the caretaker, one Nickson
Chibvonda, which he did. On the allegation by the applicant that Nickson
Chibvonda may be fictitious as the deceased had no such employee, the first
respondent attached a supporting affidavit from Nickson Chibvonda who stated
that he was employed by the deceased at the property at the end of 2010 after
the property had been broken into as a caretaker and that he would receive the
deceased's correspondence. He confirmed that on 14 July 2014 he was served
with a court application in HC6820/11 which the deceased received after two weeks.
Mr
Chinyama, in his affidavit, said after the court
application in HC6820/11 was issued out on 13 July 2011, served on 4 July 2011
and order granted on 31 August 2011 he later served the deceased with the court
order well before the transfer of the property.
v)
The first respondent correctly refuted the allegation that the court
application was issued in August 2011 and purportedly served on 14 July
2011. I invited both counsel for the applicant and the first respondent to
inspect the original record in HC6820/11 and they both confirmed that the court
application was issued on 13 July 2011. The applicant's allegation in this
regard lacks merit and is false.
vi)
The first respondent disputed that the Agreement of Sale is void ab initio as
he puts into issue the deceased's alleged mental status at the time of signing
this Agreement. The first respondent attached supporting affidavits from a
legal practitioner, Charles Chinyama and Itayi Munyeza who all disputed that the deceased was not
mentally stable at the time the Agreement of Sale was signed.
Charles Chinyama, who claims not to have
a personal interest in the matter, said that he prepared the Agreement of Sale
of the property on the deceased's instructions and that the deceased did not
exhibit any abnormalities during the time he took instructions from him in May
2011 and throughout the process of preparing the Agreement and the signing
which all happened in Mr Chinyama's offices. In fact, Mr Chinyama said
prior to the signing of the Agreement of Sale he advised the deceased to have
the bond against this property cancelled and that the deceased did so on 30 May
2011 as per Consent No.1672/11. As per the letter dated 31 May 2011, this
process was done by Wintertons who then wrote to the deceased of the cancellation
of the bond and that the deceased should collect the title deeds of the
property from Wintertons. As per that letter, the deceased did so on 22
June 2011 as he signed on the letter.
The
applicant has not commented on the deceased's signature on this letter….,.
Mr
Chinyama said after the deceased had been paid the purchase
price he left for South Africa without attending to the transfer of the
property and that the first respondent then approached Mr Chinyama who then started the transfer process in HC6820/11
culminating in the order granted by my late brother KARWI J dated 1 September
2011…,. Mr Chinyama said he then served the
deceased with the court order to compel transfer on 20 September 2011 at his
offices.
All
in all, Mr Chinyama said both the deceased and the
first respondent had the capacity to contract, and that everything was done
above board.
Itayi
Munyeza, the Chief Executive Officer of Finance (Pvt) Ltd, a micro finance
institution, stated in his affidavit that he interacted with the deceased in
May 2011 when the first respondent approached his company to borrow money to
purchase the property in issue from the deceased. He requested to see the
deceased who came in June 2011 with the first respondent. Itayi Munyeza
said he interviewed the deceased to establish if indeed the sale of the
property to the first respondent was genuine. He observed no irregular
speech or countenance on the part of deceased whom he said was very
eloquent. Itayi Munyeza said the deceased explained that the first
respondent was his friend who had done a lot for him and that if he fails to
buy the property the deceased would rather donate it to church as he was not
after making money from the property. Itayi Munyeza said they caused a deed
search of the property to be done and advised the deceased to have a bond
against the property cancelled. He said the deceased alleged he had
received part payment of the purchase price. Later, he said the deceased
came to collect the balance and signed an acknowledgment of receipt of payment
in the presence of Itayi Munyeza. He said at no stage did he notice that
the deceased suffered from mental disorder and that as a professional financial
institution he ensured everything was above board.
It
is clear that both Mr Chinyama and Itayi
Munyeza corroborate the first respondent that the deceased did not exhibit any
signs of mental illness at the time of executing the Agreement of Sale and
other processes ancillary thereto.
vii)
The first respondent admits that he bought the property for US$50,000= and
insists that the deceased was paid the money, a fact supported by Itayi
Munyeza. The first respondent said the price of US$50,000= is what the
deceased asked for as the deceased was very grateful for the help the first
respondent had rendered to him when all the deceased's close relatives had
abandoned him. In fact, the first respondent said the deceased threatened
to donate this property to the church if the first respondent failed to buy
it. This is confirmed by Itayi Munyeza. The first respondent said the
impression he got was that the deceased was abandoned by all those close to him
and did not want anyone else besides the first respondent to benefit from the
property. There is therefore a dispute as to the fairness or otherwise of
the purchase price of the property and the circumstances surrounding the
agreement on the figure of US$50,000=. There is also a dispute as to
whether this purchase price was paid, and, if so, how it was paid.
The
first respondent submitted that the fact that the applicant and the deceased's
relatives took no action from 2006 to have the deceased mentally treated or to
protect his estate shows that the deceased was not mentally ill. The first
respondent said during his stay at the property, from January 2011 until after
deceased's death in July 2012, the applicant never visited the property to
check on its state or the furniture they allege the deceased had abandoned in
2009. He said such conduct by the applicant is strange and not explained,
moreso as the applicant alleged the deceased was mentally ill and had abandoned
the matrimonial home. The first respondent said the deceased's cause of
death was kidney failure and that there is no medical evidence on his mental
state, either that the time of signing of Agreement of Sale or of
death. The first respondent said he borrowed US$80,000= from More Finance
(Pvt) Ltd using the property in issue as security. He offers no further
explanation how he managed to do that….,.
I
now turn to the merits of this application.
There
are certain factual and legal issues raised by the applicant which are
incorrect. I intend to dispose of these first.
It
is incorrect, as the applicant alleges, that the court application in HC6820/11
was purportedly served before it had been issued. The record of
proceedings in HC6820/11 shows that the court application was issued on 13 July
2011 and served on 14 July 2011.
It
is therefore incorrect to allege that it was issued in August 2011….,.
It
is an established principle of law that a judgment or order obtained by fraud
will not be allowed to stand. The celebrated authors, HERBSTEIN & VAN
WINSEN, The Civil Practice of High Courts and Supreme Court of Appeal of South
Africa, 5thed…., discuss this established principle, and state, inter alia, …,. -
“A
judgment procured by fraud of one of the parties, whether by forgery, perjury,
or in any other way, such as fraudulent withholding of documents, cannot be
allowed to stand…,. It must, however, be shown that the successful
litigant was a party to the fraud or perjury on the grounds of which it is
sought to set aside the judgment. Furthermore, there must be proof that
the party seeking rescission was unaware of the fraud until after judgment was
delivered…,. The person seeking relief must be able to show that because
of fraud of the other party, the court was misled into pronouncing a judgment
which, but for the fraud it would not have done.”
In
the case of Mutare City Council v Mawoyo 1995 (1) ZLR 258 (H) MALABA J…, stated as
follows:
“The
general rule is that once a final judgment or order has been given, the judge
who gave it or any other judge of parallel jurisdiction has no power to alter,
rescind, vary or set it aside excepting few instances recognised at common law
or by Rules of the High Court.
One
of the exceptions recognised at common law is when a judgment has been obtained
through fraudulent misrepresentation. The statutory exception would, in
our case, include Order 49 Rule 449(1) and Order 9 Rule 63(1) of the Rules of
the High Court of Zimbabwe.”
See
also Bopoto v Chikumbu &
Ors 1997 (1) ZLR 1 (H).
The
esteemed authors, HERBSTEIN & VAN WINSEN, The Civil Practice of High Courts
and Supreme Court of Appeal of South Africa, 5thed…., cite the case
of Swart v Wessels 1924 OPD 187…, which explains the nature of the
onus the applicant has to discharge in seeking the setting aside of a
judgment procured through fraud. A party seeking such a relief on the
grounds of fraudulent evidence must prove the following;
“(1)
That the evidence was incorrect;
(2)
That it was made fraudulently and with intend to mislead; and
(3)
That it diverged to such an extent from the true facts that the court would, if
the true facts had been proved before it, have given a judgment other than what
it was induced by the incorrect evidence to give."
The
position of the law and what the applicant has to prove in order to have the
judgment granted in HC6820/11 set aside on the basis of fraud is therefore
clear.