CIVIL PROCEDURE – APPLICATION FOR SUMMARY JUDGMENT – WHEN APPROPRIATE TO GRANT SUMMARY JUDGEMENT

CIVIL PROCEDURE – APPLICATION FOR SUMMARY JUDGMENT – WHEN APPROPRIATE TO GRANT SUMMARY JUDGEMENT

Reasons for Orders (Merits not considered): Practice Directive 61

Whereas the Court dismissed an application for summary judgment with costs, the reasons for the orders were as follows, per COLEMAN J:

An application for summary judgment was brought by shareholders of a company (first defendant) against the second to seventh defendants for payments allegedly received by them from the company. The defendants resisted the application and raised a variety of defences and counterclaims; Second defendant essentially alleged that the payments were authorised by the company. Third and fourth defendants denied that he received any money from the company. Fifth defendant alleged that he received a legitimate dividend payment from the company.  Sixth Defendant alleged he received payments from fifth defendant and he understood it constituted dividend payments from first defendant. Seventh defendant alleged essentially the same. Some of the defendants alleged that they had counterclaims for the rectification of the shareholders’ register of the first defendant.

Having considered the matter, the Court concluded that the defences outlined involved a dispute of fact which should not be resolved in summary judgment proceedings. The defences could also not be said to be not bona fide. It also appeared that the counterclaims may have a bearing on the merits of some of the claims which were the subjects of the summary judgment application. As a consequence it was not appropriate to grant summary judgment herein.

Shilamba v Chidino Cha Luchindo (Pty) Ltd NAHCMD 10 November 2022