Opposed
Application
MUZENDA
J:
This
is a Court Application for leave to execute pending appeal where the
Applicant is praying for the following relief:
“IT
IS ORDERED THAT:
1.
The application for Execution of the Order under HC40/20 dated 23
July 2020 pending the determination of SC333/20 is hereby granted.
2.
The Fourth Respondent is granted leave to give effect to the Writ of
Delivery of Movables lodged on 27 July 2020 under case HC40/20.
3.
During the pendency of SC333/20 the Applicant is temporarily
interdicted from disposing of Cat Caterpillar Dump Truck 769C.
4.
The First and Second Respondents shall bear the costs of this
application if opposed.”
The
application is opposed by the First and Second Respondents.
BACKGROUND
On
23 July 2020 after hearing parties under case No. HC40/20, I granted
the following order:
“1.
The application for a declaration order succeeds.
2.
The applicant is hereby declared the rightful owner of a Cat
Catepillar Dump Truck 769C sold in execution on 18 October 2019 at
Devuli Farm, Devuli Ranch, Bikita.
Consequently:
1.
The First Respondent is hereby ordered, within 24 hours of this
order, to transport at his own cost the Cat Caterpillar Dump Truck
769C from No.52B Plymouth Road, Southerton, Harare to Lot 2 Gweru
Small Holding, Gweru.
2.
The First and Second Respondents bear the costs of this application
on Legal Practitioner and client scale.”
On
30 July 2020, First and Second Respondents noted and filed an appeal
against the entire and final judgment under HMT40/20, which appeal is
pending.
The
applicant has now applied for leave to execute the judgment albeit
the appeal pending.
SUBMISSIONS
BY COUNSEL
Advocate
T.
Zhuwarara
for the applicant submitted that a notice of appeal has the effect of
staying a writ of execution but it ought not to come into effect in
circumstances where such stay has the effect of perpetuating the
commission of an offence or criminal conduct.
He
submitted that First and Second Respondents contravened Section
22(2)(b) of the High Court Act [Chapter
7:06]
by taking away the Dump Truck which has been attached and sold to the
applicant at a public auction.
Applicant's
counsel further submitted that the court has a discretion to grant or
dismiss an application for stay of execution pending appeal.
He
went on to contend that the court is enjoined to have regard to the
preponderance of equities, the prospects of success on the part of
the First and Second Respondents and also whether the appeal had been
noted so as to gain time or harass the Applicant.
The
court has to determine what is just and equitable in all the
circumstances.
Counsel
for the Applicant urged the court to grant the application to enable
the Applicant to enjoy the use of the Dump Truck since he had
judicially purchased it, furthermore where the Applicant is by all
means an innocent purchaser.
The
courts have to protect the purchaser even where an article is sold by
mistake as belonging to a judgment debtor, it was contended by the
Applicant's counsel.
On
the First and Second Respondent's prospects of success on appeal,
Applicant submitted that judicial sales in execution and the effects
of a sale in execution are immediate and profound and such sales are
not lightly set aside and the Supreme Court equally so is unlikely to
interfere with such a sale.
Applicant
went on to add that the reliance of First and Second Respondent on
r340 of the High Court Rules 1971 amounts to a fresh argument which
was never raised in the main application under HMT40/20.
In
any case, it was submitted by Applicant, a sale in execution will
only be set aside or negated under r359 and not r340.
Fourth
Respondent indicated that he did not receive the information
timeously about the “full settlement” by the judgment debtor
before the property was sold.
In
view of the applicant the appeal is hopeless and designed to
frustrate the Applicant by delaying the inevitable.
First
and Second Respondents' counsel, Advocate G.R.
Sithole
on the other hand submitted that the overall onus is on the party
seeking execution pending appeal to satisfy the court that he is
entitled to the relief sought and the court has the discretion.
First
and Second Respondents further contended that the grounds of appeal
listed in the notice of appeal have bright prospects of success on
appeal.
To
the First and Second Respondents they have an arguable case on
appeal. To them the appeal is free from predictable failure.
It
was contended that the court erred in declaring Applicant owner of
the Dump Truck when the sale in execution violated r340. Moreso when
First and Second Respondents satisfied the judgment well before the
auction took place.
First
and Second Respondents further submitted that there is no prejudice
or irreparable harm to talk about on the part of the Applicant. The
Respondents are the ones who stand to be prejudiced for the two will
lose their valuable Dump Truck.
It
was also argued on behalf of First and Second Respondents that the
Applicant has established no basis on the affidavits which upsets the
common law position that allows staying of execution pending appeal.
Since
the First and Second Respondents have tendered security the
Applicant's fear of irreparable harm have been allayed.
Finally
First and Second Respondents submitted that the equities favour them
and they pray for the dismissal of the application with costs on a
higher scale of attorney-client scale.
THE
LAW
When
dealing with an application for leave to execute pending an appeal
the Court is enjoined to exercise its discretion in coming to a
decision regarding whether application ought to succeed or not.
The
following mundane and often-cited guidelines are relevant:
(a)
the potentiality of irreparable harm or prejudice being sustained by
the Appellant if leave is granted;
(b)
conversely, the potentiality of irreparable harm or prejudice
sustained by the respondent on appeal if leave to execute is not
granted;
(c)
the prospects of success on appeal, including the question whether
the appeal is frivolous or vexatious or noted, not with the bona fide
intention of reversing the judgment appealed against, but for some
motive e.g. to gain time.
(d)
where there is the possibility of irreparable harm to both parties,
the balance of hardship or convenience.
The
notice of appeal has the general effect at common law of staying the
writ of execution, but it is not intended to operate or come into
effect in circumstances where such stay had the adverse effect of
perpetuating a commission of an offence or to be perpetrate a
criminal conduct.
Further
the automatic stay of execution upon noting of appeal, as a rule of
practice is, not a firm rule of law, but a long established practice
regarded as generally binding, subject to court's discretion.
At
the core or pith of enquiry relating to an application of this genre
is the duty of the court to determine what is just and equitable.
The
principle to be applied by the court considering the grant of an
application for leave to execute on a judgment under appeal is what
is just and equitable in all circumstances.
In
assessing whether an appeal pending determination in the upper court
has got prospects of success, has to do with whether the Appellant
has got an arguable case or whether it is manifestly a predictable
failure.
APPLICATION
OF LAW TO THE FACTS
Central
to the principle or guidelines applicable to an application for leave
to execute pending appeal is in my view the prospects of success on
appeal.
Put
differently whether the appeal is frivolous or vexatious or was
noted, not with the bona
fide
intention of reversing the judgment appealed against, but for some
motive, for instance to gain time.
Akin
to this foregoing whether the Appellant has an arguable case in the
matter pending in the Supreme Court.
The
quintessence or gravamen of the appeal in my view focuses on the
order that declared the applicant herein the legitimate owner of the
Dump Truck by virtue of being a purchaser at a well-publicised
auction.
The
First and Second Respondents contend that I erred to order as such
because they had fully met their indebtedness to the judgment
creditor in the matter where the Dump Truck was subject of
attachment.
In
my judgment under HMT40/20 I dwelt at a great length on this subject
and concluded that the First and Second Respondents did not timeously
offset the judgment debt.
The
balance of $30,405-98 paid by Sheriff was deducted from the proceeds
of the selling of the Dump Truck, that is from the money paid by the
Applicant herein.
As
such r340 of the High Court Rules, 1971, does not come in.
Had
that money been paid by the First and Second Respondents, the
situation would be totally different.
Where
an innocent purchaser of an asset sold at a public auction is
involved these courts readily protects such and a sale once conducted
and vests rights in the purchaser, such rights are not easily
reversed even where an error is detected.
In
my own view I conclude that the First and Second Respondents do not
have an arguable case before the Supreme Court, they had filed the
notice of appeal to buy time.
The
Applicant before me genuinely and honestly parted with his money and
bought the Dump Truck obviously for use at his workplace. He is not
using the Dump Truck, his money is not earning any interest nor is it
productively utilised, in a hyper-inflationary operational
environment like in Zimbabwe, the time value of money theory is
adversely affecting the Applicant.
He
complied with all the requirements of the Sheriff's auction and all
his actions were above board.
I
discern no reasonable basis to punish such an innocent purchaser by
forestalling the legal process of ensuring that Applicant enjoys the
fruits of his purchaser.
In
any case the nature of the order being sought by the Applicant caters
for the non-disposal of the Dump Truck until the appeal to the
Supreme Court is finalised. It is just and equitable that the leave
to execute pending appeal is granted.
The
First and Second Respondents illegally snatched the Dump Truck from
the control of the Fourth Respondent. They are still benefitting from
its use possibly earning money from its use and drawing down its
market value through wear and tear. The Applicant virtually
facilitated this retention of the Dump Truck by First and Second
Respondents by paying the debt not for Applicant's benefit but to
the advantage of the First and Second Respondents. The Applicant will
eventually get the Dump Truck in a condition that is entirely
different from what it was at the time he bought it.
That
situation obviously would result in an irreparable harm to the
Applicant.
The
balance of convenience favours the granting of the order for leave to
execute pending appeal.
As
regards costs, I see no basis for denying the Applicant costs as
prayed for by the Applicant. The conduct of the First and Second
Respondents in the matter shows a deliberate disregard of the law by
snatching property on attachment and then opposes an application for
leave to execute pending appeal, where it is clear that the Applicant
enjoys the benefits of the Dump Truck he acquired through a judicial
sale.
The
application succeeds and it is ordered as follows:
1.
The Application for Execution of the Order under HMT40/20 dated 23
July 2020 pending the determination of SC333/20 be and is hereby
granted.
2.
The Fourth Respondent is granted leave to give effect to the Writ of
Delivery of Movable lodged on 27 July 2020 under Case No. HMT40/20.
3.
During the pendency of SC333/20 the Applicant is temporarily
interdicted from disposing of Cat Caterpillar Dump Truck 769C.
4.
The First and Second Respondents shall bear the costs of this
application at an ordinary scale.
Kwiriwiri
Law Chambers,
applicant's legal practitioners
Magaya
Mandizvidza,
1st
and 2nd
respondents legal practitioners
1.
Arches (Private) Limited v Guthie Holdings (Private) Limited 1989 (1)
ZLR 152 (H); ZDCO (Pvt) Ltd v Commercial Careers College (Pvt) Ltd
1991 (2) ZLR 61 (H)
2.
Chase Mineral (Pvt) Ltd v Madzikita 2002 (1) ZLR 488 (H) 490
3.
Vengesai & Ors v Zimbabwe Glass Industries 1998 (2) ZLR 593 (H)
598
4.
South Cape Corporation (Pty) Ltd v Engineering Management Services
(Pty) Ltd 1977 (3) SA 534 (A) 5450-F
5.
Whata v Whata 1994 (2) ZLR 277 (S) 281B-C
6.
Pfumbidzayi v State HH726/15; Chikumba v State HH724/15
7.
Silberberg and Schoeman's The Law of Property 5th
Ed at p261; Naran v Midlands Chemical Industries S-220-91; Kanoyangwa
v Messenger of Court & Ors 2007 (1) ZLR 124 (S)