The
applicant was employed by the first respondent. As part of his
employment benefits, the applicant was allocated House Number 36
School Avenue, Noelvale, Zvishavane. Between 11 and 20 March 2011 the
applicant deserted from work and was dismissed, after due process, on
27 March 2011. The applicant did not appeal against the dismissal
which still ...
The
applicant was employed by the first respondent. As part of his
employment benefits, the applicant was allocated House Number 36
School Avenue, Noelvale, Zvishavane. Between 11 and 20 March 2011 the
applicant deserted from work and was dismissed, after due process, on
27 March 2011. The applicant did not appeal against the dismissal
which still stands to date. The first respondent considered the
contract of employment effectively terminated thereby stripping the
applicant of all rights that had accrued to him as a consequence of
the employment relationship.
The
applicant remained in occupation of the first respondent's property
prompting the latter to issue summons for eviction on 23 August 2016.
The applicant entered appearance to defend and filed his plea on 28
September 2016. On or about 31 August 2017, the first respondent
filed an application for summary judgment under case number
HC1101/17. A default judgment was subsequently granted against the
applicant.
The
first respondent obtained a warrant of ejectment and served it on the
applicant's sister on 12 January 2018. The applicant then filed
this application for stay of execution arguing that neither his legal
practitioners nor his corresponding lawyers received the application
for summary judgment. The relief he seeks is as follows;
“That
pending the determination of this matter, the applicant is granted
the following relief:
1.
The warrant of ejectment issued on 12th
day of January 2018 be and is hereby stayed pending the determination
and finalization of the application for rescission of summary
judgment which will be filed within 5 days.
2.
In the event that the applicant and all those claiming right through
him have been evicted be restored possession of House Number 36
School Avenue, Noevale, Zvishavane pending the determination and
finalization of the application for rescission of summary judgment.”
The
applicant contended that the matter is urgent because he was facing
ejectment in a matter of hours.
He
claimed that the balance of convenience favours the granting of this
application in that if the application for rescission is not granted,
the first respondent will still be entitled to reclaim its house
while if he is evicted before the determination of his application
for rescission he will not be able to have possession of the house,
because the first respondent intends to allocate it to a new tenant.
Further, the applicant submitted that he will suffer irreparable harm
if this application is not granted in that the first respondent owed
him US$23,000= being salary arrears, and, if execution is not stayed,
he will not have any recourse to the law because the first respondent
is “immune to lawsuits” by virtue of the provisions of the
Reconstruction of State Indebted Insolvent Companies Act [Chapter
24:24].
The
applicant also argued that he will suffer heavy prejudice if the
warrant for ejectment is not stayed in that he has no alternative
accommodation for his family that includes children who are attending
school in Zvishavane.
He
said he was surprised by the warrant of eviction because he had not
been served with the application for summary judgment.
While
admitting that according to the certificate of service filed by the
first respondent, the application for summary judgment was served on
one Edwin Mafa in the employ of his corresponding legal
practitioners, he insisted that his lawyers told him that Edwin Mafa
denied being served with the application. In this regard, he filed a
supporting affidavit from his legal representative confirming that
Edwin Mafa denied ever receiving the application for summary
judgment. Surprisingly, the applicant omitted to file an affidavit
from Edwin Mafa himself.
During
argument, it was conceded that the applicant lost his right to
continue to enjoy benefits after the termination of the contract of
employment. It was nevertheless argued that his defence in the
application for rescission would be that he is owed salary arrears by
the first respondent who was served with this claim. He lamented the
difficulty of suing the first respondent due to its status.
The
first respondent opposed the application on the following grounds;
“(a)
There is no accompanying urgency as to warrant the relief sought;
(b)
There is no fear of an imminent harm and or fear of an injustice
being done should the relief sought be denied.
(c)
The applicant has not established that he has a clear or prima
facie
right that would entitle him to get the relief of stay of execution
against an order for his eviction from a company house that he is
occupying following termination of his employment contract on March
2011.
(d)
Applicant has not shown that the balance of convenience is in favour
of granting the remedy.”
As
indicated above, the applicant has approached this court for a stay
of execution pending the filing and determination for rescission of
the default judgment granted under HC1101/17.
The
principles that a court must have regard to in an application for
stay of execution are akin to those considered when deciding whether
or not to grant leave to execute pending appeal – see Nzara
v Tsanyau and Others
2014 (1) ZLR 674 (H); Old
Mutual Life Assurance Company (Pvt) Ltd v Makgatho
HH39-07. They are:
“1.
An appellant has an absolute right to appeal and test the correctness
of the decision of the lower court before he or she is called upon to
satisfy the judgment appealed against.
2.
Execution of the judgment of the lower court, before the
determination of the appeal, will regate the absolute right that the
appellant has and is generally not permissible.
3.
Where,
however, the appellant brings the appeal with no bona
fide
intention of testing the correctness of the decision of the lower
court, but is motivated by a desire to either buy time or harass the
successful party, the court, in its discretion, may allow the
successful party to execute the judgment notwithstanding the absolute
right to appeal resting in the appellant.
4.
In exercising its discretion, the court has regard to the
considerations suggested by CORBETT JA in South
Cape Corporations (Pty) Ltd v Engineering Management Services (Pty)
Ltd
1977 (3) SA 534 (A) at 545.
5.
Where
the judgment sounds in money and the successful party offers security
de
restituendo
and the appellant has no prospects of success on appeal, the court
may exercise its discretion against the appellant's absolute right
to appeal.
6.
An
application for leave to execute pending appeal cannot be determined
solely on the basis that the appellant has no prospects of success on
appeal, especially where the whole object of the appeal is defeated
if execution were to proceed. See Woodnov
Edwards and Another
1966 RLR 335.”
What
must be interrogated in this matter are the applicant's bona
fides
in bringing an application for rescission of a default judgment.
In
order to show good and sufficient cause under Rule 63 of the High
Court Rules 1971, for rescission, an applicant has to give a
reasonable explanation for the default, the bona
fides
of the application for rescission of judgment and the prospects of
success on the merits. These factors are considered cumulatively and
not individually. See Earth
Moving and Construction Company (Pvt) Ltd v Gurupira and Others
2014 (1) ZLR 304 (H); Roland
and Another v McDonnell
1986 (2) ZLR 216 (S); Stockil
v Griffs
1992
(1) ZLR 172 (S); Sibanda
v Ntini
2002
(1) ZLR 264 (S).
Let
me deal first with the reasonableness of the applicant's
explanation for the default.
It
is noteworthy that he has given two conflicting explanations;
(a)
Firstly, he contended that “as such neither my legal practitioner
nor any corresponding lawyers received the application for summary
judgment.” See paragraph 17 of the applicant's founding
affidavit.
(b)
Secondly, it was argued that Edwin Mafu was served with the
application, but, instead of sending it to the applicant's lawyers,
he simply sat on it.
This
was despite the applicant's lawyers having been furnished with a
copy of the certificate of service with a stamp from Sansole and
Senda, the corresponding legal practitioners showing that the
application for summary judgment had been served on one Edwin Mafu on
20 April 2017. The applicant did not bother to file Edwin Mafu's
affidavit with this application. Also, the applicant did not bother
to peruse the file or contact the Assistant Registrar between August
2017 and January 2018. In the absence of a supporting affidavit from
Edwin Mafu, this court is left to speculate on what happened between
Mutendi, Mudisi and Partners and Sansole and Senda.
In
the result, the explanation remains somewhat murky and unreasonable.
As
regards the applicant's bona
fides,
the fact that he conceded that he does not have any residual right to
occupy the house after the termination of the contract of employment
demonstrates clearly that his intended application is mala
fide.
This
is especially so if one has regard to the applicant's contention
that he is owed US$23,000 in salary arrears. What is surprising is
that the applicant has not placed any evidence of his efforts to
recover this money in the past seven (7) years. In any event, this
fact does not constitute a defence…,.
An
examination of the merits of this application, coupled with any
prospects of success of the application for rescission, shows that
the applicant is motivated by a desire to either buy time or harass
the first respondent. The applicant has not established that he has a
clear or prima
facie
right that permits him to continue holding on
to
the first respondent's property following the termination of the
contract of employment.
For
starters, section 12(6) of the Labour Act [Chapter 28:01] clearly
supports the first respondent's position. It states;
“Whenever
an employee has been provided with accommodation, directly or
indirectly, by his employer, the employee shall not be required to
vacate the accommodation before the expiry of a period of one month
after the period of notice specified in terms of subsection (4) or
(5).”
The
Collective Bargaining Agreement Mining Industry (General Conditions)
Statutory Instrument 152/90 also makes provision for the period
within which an ex-employee is required to vacate premises after
termination of the employment contract.
Section
25(2)(a)(b) of the Collective Bargaining Agreement Mining Industry
(General Conditions), S.I.152 of 1990 provides;
“An
employee who is in occupation of premises belonging to his employer
shall;
If
he occupies married quarters and his employment is terminated he
shall be allowed a reasonable period of not less than 21 days from
the date of termination of employment to vacate such premises.”
On
this basis, the applicant was required, by law, to vacate the first
respondent's premises within the stipulated period after the
termination of his employment contract.
The
fact that the applicant was owed arrear salaries is not a valid
reason to continue residing in the company house after his contract
had been terminated.
Chisipite
School Trust (Pvt) Ltd v Clark
1992 (2) ZLR 324; Arundel
School Trust v Pettingrea
2014 (1) ZLR 596; Jakazi
and Another v Church of the Province of Central African and Others
2010 (1) ZLR 335 (H); Hamtex
Investments (Pvt) Ltd v King
2012 (2) ZLR 334.
On
the facts of this case, it cannot be said that the applicant would
suffer an injustice or irreparable harm if the stay were not granted.
The onus is on the applicant to prove irreparable harm that would
have justified the granting of the stay of execution. In Chibanda
v King
1985 (1) ZLR 116 DUMBUTHSENA AJP held that;
“In
an application for stay of execution of the judgment of the court, it
is not enough for the applicant merely to allege hardship. He must
satisfy the court that he may suffer irreparable harm or prejudice if
execution is granted…,.; it must also be borne in mind that if the
court were to extend mercy, it would be doing it at the expense of a
litigant who has already established, in court, his right and title
to what is being claimed. Such mercy should rather be sought in the
action itself before judgment is given - not afterwards.”
It
is trite that the power to grant stay of execution is a common law
exercise of the power that inheres in the court. This discretion is
very wide, but, the main guiding principle for the court, in
determining such an application, is to grant stay where real and
substantial justice requires such a stay, or, conversely, where
injustice would otherwise be done – see Mungwambi
v Ajanta Properties (Pvt) Ltd
HH771-08.
In
casu,
the applicant cannot be said to suffer injustice if the application
is declined in that his eviction will not extinguish his claim for
arrear salaries. There is therefore no harm to talk about, never mind
irreparable harm. The applicant has got no defence against the claim
for summary judgment that was granted. Also, his proposed application
for rescission has no legal basis as it is anchored on blatant
untruths and misrepresentations of the circumstances leading to the
default judgment.
The
applicant has other available and satisfactory remedies.
He
has stated, in unequivocal terms, that the reason he is refusing to
vacate the company house is the fact that he has not been paid his
arrear salaries. Although he has filed no proof of such liability on
the part of the first respondent, he is at liberty to sue the first
respondent for the payment of any such claim. He does not have to
remain in the house in order to successfully sue the first
respondent. All he has to do is to comply with the mandatory
provisions of section 6(b) as read with section 18(e) of the
Reconstruction
of State Indebted Insolvent Companies Act [Chapter 24:24].
In
my view, the balance of convenience would best be served if the
applicant is denied the relief he seeks. This is so because the house
was allocated to the applicant as an employment benefit during the
tenure of his employment contract. That contract was terminated on 30
March 2011 leaving no residual right or legal entitlement on the part
of the applicant to the continued free occupation of that house. His
continued free occupation of the house will greatly prejudice the
first respondent in lost rentals. Already, the first respondent has
lost US$26,640= in unpaid rentals over the past six (6) years of the
applicant's unlawful occupation of the property. It is common cause
that during these six (6) years, the applicant did not render any
service to the first respondent.
On
the other hand, if the application is dismissed, the applicant will
simply pursue his claim against the first respondent. It is
laughable, for lack of a better word, to suggest that the applicant
cannot secure alternative accommodation in Zvishavane.
All
in all, I associate myself with the comments by DUMBUTHSENA J…, in
S
v Mcnal
1986 (2) ZLR 280 where he said, while considering whether a party
should be punished for the negligence of his legal practitioners;
“In
my view, clients should, in such cases, suffer for the negligence of
their legal practitioners. I share the view expressed by STEYN CJ in
Salogee
and Another v Minister of Community DVT supra
at
141 C- E when he said;
'There
is a limit beyond which a litigant cannot escape the result of his
attorney's lack of diligence or the insufficiency of the
explanation tendered. To hold otherwise might have a disastrous
effect upon the observance of the Rules of this court. In fact, this
court has lately been burdened with an undue and increasing number of
applications for condonation on which the failure to comply with the
Rules of this court was due to neglect on the part of the legal
practitioners. The attorney, after all, is the representative whom
the litigant has chosen for himself and there is little or no reason
why, in return for condonation of a failure to comply with a Rule of
court, the litigant should be absolved from the normal consequences
of such a relationship no matter what the circumstances of the
failure are.'”
In
the present case, the applicant's legal practitioners negligently
failed to comply with a peremptory provision of the Rules. In my
view, it is not an acceptable explanation for a legal practitioner to
come to court, nine months after the dies
induciae
has elapsed, and simply say that they did not see the court
application for summary judgment contrary to hard evidence showing
service and receipt of such an application. Such an explanation is an
insult to the intelligence of the court, making it more difficult for
this court to be satisfied of the applicant's good faith.
In
the result, the application for stay of execution is hereby dismissed
with costs.