4 Seasons Logistics CC v Nicholas Ngwanammoto Kgotse

The respondent obtained a default judgment against the applicant close corporation, 4 Seasons Logistics CC, for approximately R1.7 million arising from a Repayment Agreement relating to funds advanced to the corporation. Despite entering an appearance to defend, 4 Seasons failed to deliver a plea and did not timeously seek rescission. Execution on the judgment was unsuccessful, and repeated undertakings by 4 Seasons to settle the debt were not honoured. The respondent then applied for the provisional liquidation of 4 Seasons on the ground that it was unable to pay its debts. 4 Seasons opposed the application and brought a counter-application for rescission of the default judgment. The High Court refused rescission and granted a provisional winding-up order, later confirmed as final. Leave to appeal was refused by the High Court and by two judges of the Supreme Court of Appeal on petition. The applicant then sought reconsideration under s 17(2)(f) of the Superior Courts Act.

The application for reconsideration under s 17(2)(f) was dismissed with costs, including the costs of two counsel as costs in the liquidation. The Supreme Court of Appeal varied the High Court order by deleting the portion directing that costs be borne personally by the members of the close corporation.

The case reaffirms the strict finality of decisions refusing leave to appeal and clarifies the narrow scope of reconsideration under s 17(2)(f) of the Superior Courts Act. It underscores that such reconsideration is not an opportunity to reargue the merits. The judgment also confirms safeguards applicable to personal costs orders (de bonis propriis) and reiterates principles governing rescission of default judgments and liquidation based on inability to pay debts.