Department: Transport, Province of KwaZulu-Natal v Ramsaran and Others

The Department of Transport, Province of KwaZulu-Natal instituted action in the KwaZulu-Natal Local Division of the High Court against nine of its employees to recover losses of over R7 million allegedly caused by a fraudulent scheme. The summons was issued by private attorneys. The defendants delivered a Rule 7 notice challenging the authority of the attorneys to act, relying on Treasury Regulations under the Public Finance Management Act. When no satisfactory response was forthcoming, certain defendants applied to have the summons declared a nullity. The High Court ordered the Department to file affidavits explaining the authority to litigate, but the Department filed them late and without condonation. The High Court ultimately declared the summons a nullity and ordered costs against the Department. The Department appealed to the Supreme Court of Appeal. During the pendency of the appeal, the respondents abandoned the High Court judgment in terms of Uniform Rule 41(2), save for costs.

The appeal was dismissed. The appellant was awarded costs of the appeal only up to and including 6 August 2018, the date on which the judgment was abandoned, to be paid jointly and severally by the first, third, fourth, sixth and eighth respondents.

The case clarifies the procedural consequences of abandoning a judgment under Uniform Rule 41(2), particularly that such abandonment extinguishes the operative order and renders an appeal moot. It reinforces the principle that appellate courts adjudicate orders, not reasons, and explains the correct procedure for recovering costs when a judgment is abandoned without a tender of costs.