Before:
CHIDYAUSIKU CJ, In Chambers:
This
is a Chamber application in which the applicants seek to set aside an
order by HUNGWE J. The order sought to be set aside provides that the
learned Judge's judgment will not be suspended by the noting of an
appeal. The order of the court a quo provides as follows:
“I
therefore issue the following order:
1.
The African Consolidated Resources P/L claims issued to the third,
fourth, fifth and sixth applicants within the area previously covered
by Extension Prospecting Order 1523 held by Kimberlitic Searches P/L
are valid and have remained valid since the date they were originally
pegged.
2.
The right granted to the third respondent by virtue of the Special
Grant shall not apply in respect of the African Consolidated
Resources P/L claims area as indicated on annexure 'B' to the
papers. In that regard, it is hereby ordered that the third
respondent cease its prospecting and diamond mining activities in the
said area.
IT
IS FURTHER ORDERED AS FOLLOWS:
3.
That the second respondent return to the applicants possession of the
129,400 carats of diamonds seized from the applicants' offices in
Harare on 15 January 2007.
4.
The second respondent return to the applicants all diamond(s)
acquired by the second respondent from the African Consolidated
Resources (P/L) claims area using the register kept by the second
respondent in compliance with the Kimberley Process Certification
Scheme.
5.
That the fourth respondent be and is hereby ordered to direct (the)
police to cease interfering with the applicants' prospecting and
mining activities.
6.
That the first, second and third respondents (pay) the applicants'
cost(s) on a legal practitioner and client scale, the one paying the
other to be absolved.
7.
Any appeal noted against this order shall not suspend the operation
of the order.”
Paragraph
7 of the above order authorises the respondents to execute the
judgment despite the noting of an appeal against that judgment.
The
applicants are dissatisfied with the order and, having noted an
appeal against the judgment, have filed this Chamber application.
The
applicants contend that HUNGWE J misdirected himself in ordering
execution of his judgment despite the noting of an appeal. They
submitted that the grant of such an order prior to the noting of an
appeal was irregular and should be set aside.
The
applicants' case is set out in paras 13-15 of the founding
affidavit, which provide as follows:
“13.
During argument, the respondents who were the applicants in that
matter indicated to the court a quo that they would be amending their
draft order to include a seventh paragraph to the effect that any
appeal noted against that order would not suspend its operation.
14.
Although no submissions were made by the first to the sixth
respondents to justify the proposed amendment it was submitted on the
applicants' behalf that such order was incompetent at this stage.
It was also submitted that an applicant's recourse would be to
apply for leave to execute pending appeal. It was further submitted
that it is only after judgment has been delivered that any proper
assessment can be made whether there has been any misdirection or not
and that sometimes the aggrieved party may even easily show to the
satisfaction of the court that indeed there has been such
(misdirection).
15.
The court a quo in its judgment handed down later that day (the 24th
of September 2009) granted the order as amended such that the appeal
that the applicants subsequently filed under Case No. SC230/09 did
not suspend the operation of that order. A copy of the operative part
of the judgment is attached hereto and marked 'A' and the yet to
be typed full judgment as ANNEXURE 'B'.”
The
respondents did not file any opposing affidavits.
Mr
Samukange, for the first to the sixth respondents (hereinafter
referred to as “the respondents”), during the course of his
submissions made averments to the effect that the application for
execution of judgment despite the noting of an appeal was made during
the course of the main hearing before judgment was given. He,
however, did not give details of the application. I will assume no
detailed basis for the application was submitted to the court a quo.
The
law on the effect of the noting of an appeal against a judgment is
well settled.
At
common law the noting of an appeal against a judgment suspends the
operation of that judgment. It is also trite that at common law the
court granting the judgment enjoys inherent jurisdiction to order the
execution of that judgment despite the noting of an appeal.
In
the leading case of South Cape Corporation (Pty) Ltd v Engineering
Management Services (Pty) Ltd 1977 (3) SA 534 (A) CORBETT JA at pp
544-546 had this to say:
“Whatever
the true position may have been in the Dutch Courts, and more
particularly the Court of Holland (as to which see Ruby's Cash
Store (Pty) Ltd v Estate Marks and Anor 1961 (2) SA 118 (T) at pp
120-3), it is today the accepted common law rule of practice in our
Courts that generally the execution of a judgment is automatically
suspended upon the noting of an appeal, with the result that, pending
the appeal, the judgment cannot be carried out and no effect can be
given thereto, except with the leave of the Court which granted the
judgment. To obtain such leave, the party in whose favour the
judgment was given must make special application. (See generally
Olifants Tin 'B' Syndicate v De Jager 1912 AD 377 at p481; Reid
and Anor v Godart and Anor 1938 AD 511 at p513; Gentiruco A.G. v
Firestone SA (Pty) Ltd 1972 (1) SA 589 (AD) at p667; Standard Bank of
SA (Pty) Ltd v Stama (Pty) Ltd 1975 (1) SA 730 (AD) at p746).
The
purpose of this rule as to the suspension of a judgment on the noting
of an appeal is to prevent irreparable damage from being done to the
intending appellant, either by levy under a writ of execution or by
execution of the judgment in any other manner appropriate to the
nature of the judgment appealed from (Reid's case supra at p513).
The
Court to which application for leave to execute is made has a wide
general discretion to grant or refuse leave and, if leave be granted,
to determine the conditions upon which the right to execute shall be
exercised (see Voet 49.7.3; Ruby's Cash Store (Pty) Ltd v Estate
Marks and Anor supra at p127). This discretion is part and parcel of
the inherent jurisdiction which the Court has to control its own
judgments (cf. Fismer v Thornton 1929 AD 17 at p19).
In
exercising this discretion the Court should, in my view, determine
what is just and equitable in all the circumstances, and, in doing
so, would normally have regard, inter alia, to the following factors:
(1)
the potentiality of irreparable harm or prejudice being sustained by
the appellant on appeal (the respondent in the application) if leave
to execute were to be granted;
(2)
the potentiality of irreparable harm or prejudice being sustained by
the respondent on appeal (the applicant in the application) if leave
to execute were to be refused;
(3)
the prospects of success on appeal, including more particularly the
question as to whether the appeal is frivolous or vexatious or has
been noted not with the bona fide intention of seeking to reverse the
judgment but for some indirect purpose, e.g, to gain time or harass
the other party; and
(4)
where there is the potentiality of irreparable harm or prejudice to
both (the) appellant and (the) respondent, the balance of hardship or
convenience, as the case may be.
(See
in this connection Ruby's case supra at pp127-8; also Rood v
Wallach 1904 TS 257 at p259; Weber v Spira 1912 TPD 331 at pp333-4;
Rand Daily Mails Ltd v Johnston 1928 WLD 85; Frankel v Pirie 1936 EDL
106 at pp114-6; Leask v French and Ors 1949 (4) SA 887 (C) at
pp892-4; Ismail v Keshavjee 1957 (1) SA 684 (T) at pp688-9; Du
Plessis v Van der Merwe 1960 (2) SA 319 (O)).
Although
most of the cases just cited dealt with the exercise of the Court's
discretion under a statutory provision or Rule of Court, the statute
or Rule concerned did not prescribe the nature of the discretion
except in broad general terms (e.g. secs 36 and 39 of Proc. 14 of
1902 (T) empower the Court to give directions as 'may in each case
appear to be most consistent with real and substantial justice')
and the same general approach would be appropriate to the exercise of
a discretion under the aforementioned rule of practice.”
The
South Cape Corporation case supra is clear authority for the
proposition that before a court can exercise the discretion to order
execution despite the noting of an appeal, the successful party has
to make a special application for such relief.
For
the court to be able to exercise this discretion properly, the
special application must set out in some detail the basis for seeking
such relief.
The
respondent is entitled to an opportunity to respond to the
application.
It
is common cause that none of the respondents (then the applicants) in
this case made a special application for leave to execute. They
simply applied to amend the draft order to include para 7 at some
stage in the course of proceedings before judgment.
This,
in my view, is totally inadequate because the court was not provided
with details necessary for the proper exercise of its discretion.
The
South Cape Corporation case supra sets out in some detail the factors
that a court takes into account in determining whether to grant or
refuse the relief of execution despite the noting of an appeal.
There
is no indication on the record, in particular in the reasons for
judgment, that the learned Judge in the court a quo gave
consideration to these or any other factors. The reasons for judgment
do not indicate what the learned Judge took into account and what he
did not take into account in arriving at the conclusion that there
should be execution despite the noting of an appeal. Without reasons,
it is impossible to understand the learned Judge's reasoning.
Failure to give reasons in an application to execute despite the
noting of an appeal is a serious misdirection justifying the setting
aside of such a determination.
On
this ground alone, I would set aside the court a quo's order that
there should be execution despite the noting of an appeal.
I
have serious reservations on the propriety of a Judge including in
his main judgment an order authorising execution despite the noting
of an appeal against that judgment.
It
is only in exceptional circumstances that such an order should be
made part of the main judgment. For instance, if in a dispute over
the custody of a minor child it is clear that the noting of an appeal
will be used to facilitate the removal of the minor child from the
jurisdiction of the court, such a course might be justified. In the
absence of exceptional circumstances, due process must be observed
before issuing such an order.
I
hold this view because the litigant's right to appeal should not be
abrogated lightly and without due process. The right of appeal is
fundamental and critical to our justice system. Where the law confers
the right of appeal on a litigant it should not be rendered nugatory
or abrogated without due process.
Due
process requires that a case proceeds to finality, namely the giving
of a judgment.
Once
a judgment is given, the losing party who has a right to appeal is
entitled, if he so wishes, to note an appeal. The noting of an appeal
has the effect of suspending the judgment. It is only then that the
successful party can make a special application for leave to execute
the judgment despite the noting of an appeal. The losing litigant is
entitled to respond to that application. It is only after hearing
both parties to the special application for leave to execute that a
court can properly exercise its discretion on the matter.
No
doubt in the making of that determination the court will be guided by
the factors set out in the South Cape Corporation case supra and
other factors relevant to the application.
This
was not done in this case.
The
applicants' right to be heard by the highest court in the land was
rendered nugatory without any semblance of due process. No reasons
were given. The failure to give reasons in this case smacks of
arbitrariness and the ruling cannot be allowed to stand.
After
taking into account the facts of this case, it was clear to me that
the diamonds in question could easily disappear without trace pending
the hearing of the appeal irrespective of which of the parties had
possession of the diamonds and that any mining activities pending the
appeal had the potential of causing irreparable damage to the party
who was not mining during that period.
For
these reasons, I concluded that a standstill position pending the
appeal was the most equitable solution.
I
made it very clear to the parties at the conclusion of their
submissions that I intended to set aside the order to execute
judgment despite the noting of an appeal made by HUNGWE J and that I
intended to substitute that order with a more equitable arrangement.
To
that end, I directed the parties to nominate a banker who could keep
the diamonds in dispute pending the determination of this matter on
appeal.
The
parties subsequently advised that they were unable to agree on a
banker to act as an honest broker. When I was advised of this, I
directed the parties to enquire from the Reserve Bank of Zimbabwe
(“the Reserve Bank”) if it could keep the diamonds pending the
appeal. As the Reserve Bank was not a party to these proceedings, the
parties were directed to jointly enquire into the attitude of the
Reserve Bank. Mr Samukange, for the respondents, advised that the
Reserve Bank was agreeable to this arrangement. In a letter dated 18
November 2009 the applicants submitted their position. Regrettably
the letter from the applicants was filed in the case file without
being brought to my attention. The letter only came to my attention
on 23 January 2010 when the applicants advised the Registrar that the
respondents were seeking to execute against the diamonds on the basis
of the judgment of HUNGWE J, which had not been formally set aside. I
immediately issued the following order on 25 January 2010 pending
these reasons for judgment:
“IT
IS ORDERED THAT:
(1)
All the diamonds referred to in paragraphs 3 and 4 of the High Court
Order in judgment no. HC6411/07 of the High Court be surrendered to
the Reserve Bank of Zimbabwe for safekeeping pending the
determination of the appeal noted against that judgment.
(2)
Execution of costs granted in terms of paragraph 6 of the same order
is suspended pending the determination of the said appeal.
(3)
Costs of this Chamber application will be costs in the cause.”
Shortly
after the issuance of the above order, through correspondence to the
Registrar I learned that the respondents were seeking to evict the
applicants from the disputed claim on the basis of the judgment of
HUNGWE J and that the parties were seeking guidance on whether my
order of 25 January 2010 suspended the eviction of the applicants.
I
directed the Registrar to advise both parties that the effect of my
order was to suspend the enforcement of JUSTICE HUNGWE's order. Her
letter to the parties reads as follows:
“Previous
correspondence refers.
Please
be advised that the Honourable Chief Justice has advised that the
order granted on 25 January 2010 suspends the whole of the Honourable
Justice Hungwe's judgment as will appear more fully in the reasons
for judgment that His Lordship will hand down shortly.”
Paragraph
1 of my order of 25 January 2010 is very explicit. In terms of that
paragraph the diamonds are to be kept at the Reserve Bank until the
finalisation of the appeal.
To
interpret the letter of the Registrar to the parties as reversing my
very clear order of 25 January 2010 that the diamonds are to be kept
at the Reserve Bank pending appeal is the height of mischief. If
anyone has removed the diamonds from the Reserve Bank, he has done so
unlawfully and in contempt of the order of this Court. The diamonds
must be returned to the Reserve Bank immediately in order to purge
the contempt. Failure to do so should attract serious consequences.
As
regards the situation on the disputed claims, the fact of the matter
is that the applicants are in physical control of those claims. The
balance of convenience favours the applicants remaining on the site
of the claims pending appeal but they must cease all mining
activities and it is so ordered. Allowing the applicants to continue
mining pending appeal has the potential of causing irreparable damage
to the respondents should the appeal fail.
As
indicated in my order of 25 January 2010 the costs in this case will
be costs in the cause.
Sawyer
& Mkushi, first applicant's legal practitioners
Dube,
Manikai & Hwacha, second applicant's legal practitioners
Venturas
& Samukange, first, second, third, fourth, fifth and sixth
respondents' legal practitioners
Civil
Division of the Attorney-General's Office, seventh respondent's
legal practitioners