Dorbyl Vehicle Trading Finance Co (Pty) Ltd v Matsaba (CIV/T 659 of 92) [1996] LSHC 82 (30 August 1996)

C I V / T / 6 5 9 / 92 IN T HE H I GH C O U RT OF L E S O T HO In t he m a t t er b e t w e e n: D O R B YL V E H I C LE T R A D I NG F I N A N CE C O. ( P T Y) L T D. P l a i n t i ff ( F o r m e r ly C o m m e r c i al V e h i c le F i n a n ce ( P t y ) L t d .) a nd M A I SA J O H A N N ES M A T S A BA D e f e n d a nt R U L I NG D e l i v e r ed by t he H o n o u r a b le M r. J u s t i ce M . M. R a m o d i b e di A c t i ng J u d ge on t he 3 0 th d ay of A u g u s t, 1 9 96 T h is is an a p p l i c a t i on f or a b s o l u t i on f r om t he i n s t a n c e. T he f a c ts of t he c a se a re b r i e f ly as f o l l o w s: On 3 1 st M a y, 1 9 94 t he p l a i n t i ff f i l ed a m e n d ed p a r t i c u l a rs of c l a im p r a y i ng f or p a y m e nt of t he s u ms of R 3 69 8 0 6 - 6 3, R 2 23 7 5 7 - 62 a nd R 3 52 9 0 0 - 45 r e s p e c t i v e ly as b e i ng b a l a n c es a r i s i ng o ut of w r i t t en i n s t a l m e nt s a le a g r e e m e n ts it h ad e n t e r ed i n to w i th t he D e f e n d a n t. T he s a id w r i t t en a g r e e m e n ts w e re d u ly a t t a c h ed as a n n e x t u r es " A ", " B" a nd " C" r e s p e c t i v e l y. T he D e f e n d a nt in h is p l ea f i l ed of r e c o rd on 2 0 th M ay 1 9 94 a d m i t t ed t he s a id a g r e e m e n ts a d d i ng t h at t he a g r e e m e n ts w e re " c a n c e l l ed by m u t u al a g r e e m e nt b e t w e en t he p a r t i e s ." 2 / . .. - 2- It is c o m m on c a u se f r om t he p l e a d i n gs t h at on 3 0 th J u ly 1 9 92 t he D e f e n d a nt n o t i f i ed t he P l a i n t i ff in w r i t i ng of h is i n t e n t i on to t e r m i n a te w i th i m m e d i a te e f f e c t, t he a f o r e s a id a g r e e m e nt a nd t h at t he l a t t er a c c e p t ed d e f e n d a n t 's r e p u d i a t i on of t he a g r e e m e n ts on t he s a me d a t e. In p a r a g r a ph 3 of h is p l ea t he d e f e n d a nt f u r t h er a d m i ts t h at he d u ly d e l i v e r ed t he v e h i c l es to t he p l a i n t i ff w ho t o ok p o s s e s s i on t h e r e o f. It is in p a r a g r a ph 4 of h is p l ea t h at t he D e f e n d a nt s e ts o ut h is d e f e n ce in t he f o l l o w i ng w o r d s: " D e f e n d a nt a v e rs t h at at t he t i me of c a n c e l l a t i on of t he a g r e e m e n ts a f o r e s a id t h e re w as a f u r t h er v e r b al a g r e e m e nt b e t w e en t he P l a i n t i ff a nd h i m s e lf to t he e f f e ct t h at t he v a l ue of t he m o t or v e h i c l es a ll of w h i ch w e re in v e ry g o od c o n d i t i on w o u ld be u s ed to d e f r ay t he e n t i re d e bt o u t s t a n d i n g. T h is t he D e f e n d a nt a v e rs w as d o ne a nd as s u ch t h e re is no m o n ey o w i ng by D e f e n d a nt to P l a i n t i ff as a l l e g ed or at a l l ." T he D e f e n d a nt f u r t h er " a v e rs t h at t h e re is no b a l a n ce o u t s t a n d i ng a nd or d ue to P l a i n t i ff as a l l e g ed or at a l l ." T h is is in p a r a g r a ph 5 of h is p l e a. P l a i n t i ff c a l l ed t wo w i t n e s s es in s u p p o rt of i ts c a se n a m e ly P W1 R e y m o nd M a r c el K e mp a nd P W2 N e v il D a v id S m i th a f t er w h i ch it c l o s ed i ts c a s e. T he e v i d e n ce of P W1 R e y m o nd M a r c el K e mp is b r i e f ly t h at he is e m p l o y ed by P l a i n t i ff as G e n e r al M a n a g e r. He j o i n ed 3 / . .. - 3- t he P l a i n t i ff c o m p a ny in F e b r u a ry 1 9 9 4. He is a l so a d i r e c t or of t he c o m p a n y. As D i r e c t or a nd G e n e r al M a n a g er he is in c o n t r ol of d o c u m e n ts r e l a t i ng to t he m a t t er b e f o re c o u r t. T he a c c o u n t i ng and f i n a n c i ng f u n c t i o ns f a ll d i r e c t ly u n d er h im as w e ll as l e g al m a t t e rs a f f e c t i ng P l a i n t i ff c o m p a n y. He is t he c u s t o d i an of r e c o r ds of t he c o m p a n y. He r e f e rs t he c o u rt to and h a n ds in w i th t he c o n s e nt of M r. M a t o o a ne f or t he D e f e n d a nt a c e r t i f i c a te E x. " A" of w h i ch he is t he a u t h o r. He e x e c u t ed t he s a id c e r t i f i c a te in t e r ms of S e c t i on 16 of t he a g r e e m e n ts b e t w e en t he p a r t i e s. I p a u se h e re to o b s e r ve t h at s e c t i on 16 of t he a f o r e s a id a g r e e m e n ts b e t w e en t he p a r t i es b e a rs t he h e a d i ng " C e r t i f i c a te of i n d e b t e d n e s s" and its f u ll t e xt p r o v i d es as f o l l o w s: "A c e r t i f i c a te u n d er t he h a nd of a ny d i r e c t or or m a n a g er f or t he t i me b e i ng of t he S e l l er in r e s p e ct of a ny i n d e b t e d n e ss of t he B u y er h e r e- u n d er or in r e s p e ct of a ny o t h er f a ct s h a ll be p r i ma f a c ie e v i d e n ce of t he B u y e r 's i n d e b t e d- n e ss to t he S e l l er a n d / or of s u ch o t h er f a ct it s h a ll n ot be n e c e s s a ry to p r o ve t he a p p o i n t m e nt of t he p e r s on s i g n i ng a ny s u ch c e r t i f i c a t e ." I o b s e r ve f u r t h er t h at t he s a id c e r t i f i c a te E x. " A" is in a f o rm of an a f f i d a v it in w h i ch PW1 s t a t es i n t er a l i a, t h at t he D e f e n d a nt is p r e s e n t ly i n d e b t ed to t he P l a i n t i ff in t he a m o u n ts c l a i m ed in t he s u m m o n s. In e a ch of t he t h r ee c o n t r a c ts c o n c e r n ed PW1 d e a ls in h is a f f i d a v it w i th f i g u r es r e l a t i ng to t he b a l a n ce as p er c o n t r a c t, f i n a n ce c h a r g e s, l e ss i n s u r a n ce r e f u n d, l e ss v a l u a t i o n, a g e n ts c o s ts v a l u a t i on f e e s, p l us 4 / . .. i n t e r e st at t he r a te of 2 9 %. - 4- P W 1 's r e s p o n se to D e f e n d a n t 's p l ea t h at t h e re w as a f u r t h er v e r b al a g r e e m e nt b e t w e en P l a i n t i ff a nd h i m s e lf to t he e f f e ct t h at t he v a l ue of t he m o t or v e h i c l es w o u ld be u s ed to d e f r ay t he e n t i re d e bt o u t s t a n d i ng is t h at as f ar as he is a w a re t h e re is no s u ch a g r e e m e nt a d d i ng t h at " at t h at s t a ge it w o u ld h a ve b e en i m p o s s i b le to s ay w h at t h e. v a l ue of t he v e h i c l es w o u ld b e. At t h at s t a ge we w e re w a i t i ng f or t he a s s e s s o rs to s ay w h at t he v a l ue w a s ." T he e v i d e n ce of P W2 N e v il D a v id S m i th is b r i e f ly t h at in J u ly 1 9 92 he w as e m p l o y ed at B u s a f. He is a w a re of t he c a se b e f o re c o u rt a nd he p e r s o n a l ly k n o ws t he D e f e n d a n t. He h ad d e a l i n gs w i th t he l a t t e r. In 1 9 92 he w as i n s t r u c t ed by h is s u p e r i o rs to t a ke t h r ee v o l u n t a ry s u r r e n d er d o c u m e n ts to t he D e f e n d a nt f or h is s i g n a t u r e. It is c o m m on c a u se t h at t h o se d o c u m e n ts r e l a t ed to t he t h r ee w r i t t en a g r e e m e n ts b e t w e en t he p a r t i es as e a r l i er s t a t e d. P W2 s p e c i f i c a l ly t o ld t he c o u rt t h at t h o se d o c u m e n ts r e l a t ed to t he t h r ee m o t or v e h i c l es in d i s p u t e. He i d e n t i f i ed t he s i g n a t u r es at t he b o t t om of e a ch d o c u m e n ts as b e l o n g i ng to t he D e f e n d a nt a nd h i m s e l f. T he D e f e n d a nt v o l u n t a r i ly s u r r e n d e r ed t he t h r ee m o t or v e h i c l es in d i s p u te a nd e v en s i g n e d. It is P W 2 's e v i d e n ce t h at t h e re w as no a g r e e m e nt t h at t he s u r r e n d e r i ng of t he m o t or v e h i c l es w o u ld e x t i n g u i sh t he d e b ts o w i n g. P W2 h a n d ed t he t h r ee v o l u n t a ry s u r r e n d er d o c u m e n ts in q u e s t i on as e v i d e n ce a nd t h ey w e re m a r k et EX " C" c o l l e c t i v e l y. It is a g a i n st t he b a c k g r o u nd as b r i e f ly o u t l i n ed a b o ve t h at M r. M a t o o a ne f or t he D e f e n d a nt a p p l i ed f or a b s o l u t i on f r om 5 / . .. t he i n s t a n ce at t he c l o se of P l a i n t i f f 's c a s e. - 5- N ow t he l a w, as I c o n c e i ve it to b e, is t h at t he t e st to be a p p l i ed in d e t e r m i n i ng w h e t h er a b s o l u t i on f r om t he i n s t a n ce s h o u ld be g r a n t ed at t he c l o se of t he c a se f or t he P l a i n t i ff is w h e t h er t h e re is e v i d e n ce u p on w h i ch a c o u r t, a p p l y i ng i ts m i nd r e a s o n a b ly to s u ch e v i d e n ce m i g ht ( n ot s h o u l d) f i nd f or t he P l a i n t i f f. T he l e a d i ng c a se in t h is r e g a rd is G a s c o y ne v P a ul a nd H u n t er 1 9 17 T PD 1 70 at 1 73 p er De V i l l i e rs J P. It is f u r t h er i n s t r u c t i ve to n o te t h at " t he c o u r ts h a ve f r e q u e n t ly e m p h a s i s ed t h at a b s o l u t i on s h o u ld n ot be g r a n t ed at t he e nd of t he P l a i n t i f f 's e v i d e n ce e x c e pt in v e ry c l e ar c a s e s, a nd t h at q u e s t i o ns of c r e d i b i l i ty s h o u ld n ot n o r m a l ly be i n v e s t i g a t ed u n t il t he c o u rt h as h e a rd a ll t he e v i d e n ce w h i ch b o th s i d es h a ve to o f f er -" H o f f m an & Z e f f e r t t: T he S o u th A f r i c an L aw of E v i d e n ce p . 5 0 8. Y et d e s p i te t h is c l e ar p r i n c i p le of t he l aw as p r o p o u n d ed a b o ve M r. M a t o o a ne f or t he D e f e n d a nt s e e ks to r e ly on c r e d i b i- l i t y. As I u n d e r s t a nd h is a r g u m e nt he s u b m i ts t h at D e f e n d a n t 's v e r s i on a p p e a r i ng in p a r a g r a ph 4 of h is p l ea as a f o r e s a id s h o u ld be b e l i e v ed at t h is s t a ge n a m e ly t h at " t he v a l ue of t he m o t or v e h i c l es a ll of w h i ch w e re in v e ry g o od c o n d i t i on w o u ld be u s ed to d e f r ay t he e n t i re d e bt o u t s t a n d i n g ." M r. M a t o o a ne r e l i es h e a v i ly on EX " B" a nd t he m a in p a rt of his c r o ss e x a m i n a t i on of P W1 w as d i r e c t ed at t h is e x h i b i t. 6 / . .. - 6- I d e em it c o n v e n i e nt to r e p r o d u ce t he s a id e x h i b it w h i ch is a t e l e f ax e m a n a t i ng f r om P l a i n t i f f 's c r e d it c o n t r o l l e r, o ne M r s. S u s an B u c h l i ng ( B u s a f ). It is d a t ed 6 th M ay 1 9 92 and it r e a ds as f o l l o w s: " To : M r. M . J. M a t s ' a ba D a te : M ay 6, 1 9 92 F r om : S u s an B u c h l i ng ( B u s a f) R e: L e y l a nd B u s es S e t t l e m e n ts Y o ur s e t t l e m e nt on t he 3 L e y l a nd b u s es is as f o l l o w s :- 1 9 90 L e y l a nd 1 7 / 2 80 1 9 90 L e y l a nd 1 7 / 2 80 1 9 90 L e y l a nd 1 7 / 2 80 = = = R 5 7 4 0 5 7 - 39 R 3 9 0 1 3 2 - 40 R 5 7 1 9 9 3 - 5O S e t t l e m e n ts a re v a l id u n t il t he 2 7 th M ay 1 9 9 2. T he 4 E RF b u s es a re f u l ly p a id f o r. Y o u rs f a i t h f u l l y, M r s. S. B u c h l i ng C r e d it C o n t r o l l e r ." P W 1 's r e s p o n se to t h is e x h i b it is t h at a ny r e a s o n a b le p e r s on w o u ld d o u bt it b e c a u se it is on B u s a f 's l e t t er h e a ds a nd t h at B u s af is a d i f f e r e nt c o m p a ny f r om P l a i n t i f f. M o r e- o v er M r s. S u z an B u c h l i ng h ad no a u t h o r i ty to c o m m it t he p l a i n t i ff c o m p a ny as a l l e g ed in E x. " B ". It is f u r t h er P W 1 's e v i d e n ce t h at t he s a id M r s. S u z an B u c h l i ng is c u r r e n t ly s e r v i ng a t e rm of i m p r i s o n m e nt f or h a v i ng d e f r a u d ed t he p l a i n t i ff c o m p a ny in s o me i n s u r a n ce c l a i m s. It s e e ms to me t h e r e f o re t h at it m ay w e ll be t h at s he f r a u d u l e n t ly e x e c u t ed E x. " B" or H er h o n e s ty a nd a u t h o r i ty to b i nd t h at s he d id so b o na f i d e. t he p l a i n t i ff a re at s t a k e. W h a t e v er t he c a se m ay be t h is c o u rt r e f u s es to be d r a wn i n to m a t t e rs of c r e d i b i l i ty at t h is s t a g e. - 7- I c o n s i d er t h at t he e v i d e n ce of PW1 a nd P W2 as o u t l i n ed a b o ve is s u ch t h at a r e a s o n a b le c o u rt p r o p e r ly a d v i s ed t h e r e to m i g ht f i nd f or t he p l a i n t i f f. I a t t a ch d ue w e i g ht to t he f a ct t h at PW1 w as n ot c h a l l e n g ed on h is e v i d e n ce b a s ed on EX " A" w h i ch is a c l e ar p r i ma f a c ie p r o of of D e f e n d a n t 's i n d e b t e d n e ss to t he P l a i n t i f f. I h a ve a l so n ot l o st s i g ht of D e f e n d a n t 's a c k n o w l e d g e m e nt of i n d e b t e d n e ss to p l a i n t i ff in EX " C" in w h i ch he s t a t e s: "I do h e r e by a g r ee a nd u n d e r t a ke to p ay to t he C o m p a n y, u p on a d v i ce r e c e i v ed f r om t h em or on t h e ir b e h a l f, t he a m o u nt of t he d i f f e r e n ce b e t w e en t he b a l a n ce of t he p u r c h a se p r i ce d ue by me on t e r m i n a t i on ( i n c l u s i ve of I n t e r e st on A r r e a r s, e x p e n s es a nd l e g al c h a r g es of w h a t s o e v er n a t u re i n c u r r ed by t he C o m p a ny a r i s i ng d i r e c t ly or i n d i r e c t ly o ut of my d e f a u lt in r e s p e ct of a ny of t he t e r ms a nd c o n d i t i o ns of t he s a id A g r e e m e n t) a nd t he A p p r a i s ed V a l ue of t he s a id m o t or v e h i c l e/ t r a i l er or t he n e tt p r o c e e ds of t he s a le t h e r e of at t he C o m p a n y 's o p t i o n ." T h e re is a g a in t he a s p e ct of t he e v i d e n t i al b u r d en as I s ee it a r i s i ng f r om D e f e n d a n t 's a f o r e s a id a v e r m e nt in p a r a- g r a ph 4 of h is p l ea a l l e g i ng a " f u r t h er v e r b al a g r e e m e n t" t h at t he o t h er f o ur b u s es ( w h i ch a re n ot t he s u b j e ct m a t t er of t h is d i s p u t e) w o u ld be u s ed to d e f r ay t he e n t i re o u t s t a n d i ng b a l a n c e. It is D e f e n d a n t 's c a se t h at t h e se o t h er f o ur b u s es h a ve b e en f u l ly p a id f or b ut t h is is d e n i ed on b e h a lf of p l a i n t i f f. It s e e ms to me on t he p r i n c i p le of he w ho a l l e g es m u st p r o ve it is l o g i c al t h at D e f e n d a nt b e a rs t he e v i d e n t i al b u r d en of p r o v i ng t he a l l e g ed p a y m e n ts p a r t i c u l a r ly as M r. M a t o o a ne p ut t he f o l l o w i ng q u e s t i on to P W 1 :- 8 / . .. - 8- " Q: Is t h e re a p o s s i b i l i ty t h at t h e re m i g ht be b o g us r e c e i p ts i s s u ed and t he m o n ey w as not r e c e i v ed by D o r b y l? A: A f t er i n v e s t i g a t i o ns d o ne t h e re is no such p o s s i b i l i t y ." I am f o r t i f i ed in the v i ew t h at I t a ke in t h is m a t t er by the j u d g m e nt of H a r c o u rt J. in Desai v Innan & C o. 1971 (1) S. A. 43 at 51 in w h i ch the l e a r n ed j u d ge had t h is to s a y :- "Now it is c l e ar t h at t he o n us in t he g e n e r al s e n se of t he duty on a p e r s on c l a i m i ng s o m e- t h i ng f r om a n o t h er in a c o u rt of law to s a t i s fy t he c o u rt t h at he is e n t i t l ed to it ( P i l l ay v K r i s h na and A n o t h e r, 1946 A . D. at p 9 5 1) is on t he j u d g m e nt c r e d i t o r. B ut w h e r e, as h e r e, t he j u d g m e nt d e b t or s e e ks to a v o id l i a b i l i ty not by d e n y i ng l i a b i l i ty on t he c o n t r a ct or t he j u d g m e nt b a s ed u p on such c o n t r a c t, b ut upon a c l a im t h at t he o b l i g a- t i o ns i n v o l v ed h a ve b e en d i s c h a r g e d, t h e n, in my j u d g m e n t, t he o n us is u p on him to e s t a b l i sh s u ch d i s c h a r g e. T h is w as held to be so in r e g a rd to a p l ea of p a y m e nt in P i l l a y 's c a s e, s u p ra at p. 9 5 8 ." W i th r e s p e ct I e n t i r e ly a g r e e. F i n a l ly I a t t a ch due w e i g ht to c l a u se 18 of the a g r e e m e nt b e t w e en t he p a r t i es h e r e in to the f o l l o w i ng e f f e c t: T h is A g r e e m e nt c o n s t i t u t es t he e n t i re A g r e e m e nt b e t w e en t he p a r t i es h e r e to . No A g r e e m e nt at v a r i a n ce w i th t he t e r ms and c o n d i t i o ns of t h is A g r e e m e nt shall be of any f o r ce or e f f e ct u n l e ss it is in w r i t i ng and s i g n ed by t he p a r t i es to t h is A g r e e m e n t. 9/... - 9- T he B u y er d e c l a r es t h at t h is A g r e e m e nt w as f u l ly c o m p l e t ed at s i g n a t u re t h e r e of a nd t h at t he p a r t i c u l a rs in t h is A g r e e m e nt a re c o r r e ct in all r e s p e c t s ." It s e e ms to me t h e r e f o re t h at D e f e n d a n t 's r e l i a n ce on t he a l l e g ed " f u r t h er v e r b al a g r e e m e n t" c a n n ot s t a n d. In all t he c i r c u m s t a n c es of t h is c a se I r e p e at e v en at t he r i sk of o v e r - b u r d e n i ng t h is j u d g m e nt t h at t h e re is e v i d e n ce u p on w h i ch a r e a s o n a b le c o u rt p r o p e r ly a d v i s ed m i g ht f i nd f or p l a i n t i f f. T he a p p l i c a t i on f or a b s o l u t i on f r om t he i n s t a n ce is g r o s s ly m i s c o n c e i v ed and it is h e r e by a c c o r d i n g ly d i s m i s s ed w i th c o s t s. M . M. R A M O D I B E DI J U D GE F or P l a i n t i ff : M r. M a l e b a n ye F or D e f e n d a nt : M r. M a t o o a ne