Newnet Properties (Pty) Ltd t/a Sunshine Hospital v The Road Accident Fund

Newnet Properties (Pty) Ltd, trading as Sunshine Hospital, together with approximately 90 supplier claimants, had obtained around 400 court judgments against the Road Accident Fund (RAF) for unpaid third-party supplier claims under s 17(5) of the Road Accident Fund Act 56 of 1996. In March 2023 writs of execution were served and RAF assets attached. The RAF approached the Gauteng Division of the High Court seeking, inter alia, a stay of execution and an order compelling the appellants to provide identity documents and accident information in terms of s 24 of the RAF Act, contending that such information had not been furnished and that the claims were therefore not properly lodged. The high court granted an order compelling disclosure of information and staying execution pending reconciliation and potential rescission or declaratory proceedings. The appellants appealed to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The order of the high court was set aside and replaced with an order dismissing the RAF’s application with costs.

The case reaffirms the fundamental principle of finality of court orders in South African law and limits the ability of the Road Accident Fund to revisit compliance with s 24 of the RAF Act after judgment. It clarifies that the RAF must pursue appeals or rescission applications, rather than indirect procedural mechanisms, to challenge adverse judgments. The judgment also provides authoritative guidance on the proper application of rule 45A stays of execution.