T.S.S and Another v First National Bank of SA Limited ta FNB and Another (2025/025807) [2025] ZAGPJHC 713 (8 March 2025)

40 Reportability

Brief Summary

Urgency — Application for urgent relief — Applicants sought to unfreeze bank accounts frozen by First National Bank during divorce proceedings — Respondent contended urgency was self-created and alternative funding sources were available — Court found that the applicants had a viable solution outside of urgent court intervention, undermining the urgency of the application — Interdict against respondent for alleged defamatory statements not legally sustainable as exceptional circumstances for prior restraint not demonstrated — Application struck from the roll for lack of urgency, with costs.

Comprehensive Summary

Case Note


T[…] S[…] S[...] v First National Bank of SA Limited t/a FNB and S[…] S[...]

Case No: 2025-025807

Date: 8 March 2025


Reportability


This case is not reportable but is of interest due to its implications regarding the urgency of applications in family law contexts, particularly in matters involving financial disputes during divorce proceedings. The court's decision to strike the matter from the roll for lack of urgency highlights the importance of demonstrating genuine urgency in applications for relief.


Cases Cited



  • Agnew v Union and South West Africa Insurance Co Ltd 1977 (1) SA 617 (A)

  • Absa Bank Limited v Hammerle Group (Pty) Ltd [2015] ZASCA 43

  • National Media Ltd v Bogoshi 1998 (4) SA 1196 (SCA)

  • Midi Television (Pty) Ltd v Director of Public Prosecutions (Western Cape) 2007 (5) SA 540 (SCA)

  • Van Der Westhuizen v Akarana Homeowners' Association [2023] ZAWCHC 220


Legislation Cited


No specific legislation was cited in the judgment.


Rules of Court Cited


No specific rules of court were cited in the judgment.


HEADNOTE


Summary


The case involves an urgent application by Ms S[...] and the company for the unfreezing of bank accounts held with First National Bank (FNB) amidst ongoing divorce proceedings. The court ultimately found that the urgency claimed by the applicants was self-created and that alternative remedies were available, leading to the dismissal of the application.


Key Issues


The key legal issues addressed include the determination of urgency in applications for relief, the validity of a purported resignation by one of the co-directors, and the appropriateness of seeking an interdict against alleged defamatory statements.


Held


The court held that the application was struck from the roll for lack of urgency, with costs awarded to the respondents. The court found that the applicants had not demonstrated a genuine need for immediate relief and that alternative solutions were available.


THE FACTS


The first applicant, Ms S[...] and the second respondent, Mr S[...] are co-directors of a company and are undergoing divorce proceedings. Ms S[...] sought to unfreeze the company's bank accounts with FNB, which had been frozen due to concerns raised by Mr S[...]. The applicants claimed that the freezing of the accounts would lead to financial ruin, while Mr S[...] argued that the urgency was self-created and that alternative funding sources were available. The court also considered a "with prejudice" proposal made by Mr S[...] to resolve the issue of the frozen accounts.


THE ISSUES


The court had to decide whether the application for urgent relief was justified, whether Mr S[...] had effectively resigned from the company, and whether the request for an interdict against Mr S[...] was legally sustainable. The court also needed to assess the implications of the "with prejudice" offer made by Mr S[...] in relation to the urgency of the application.


ANALYSIS


The court analyzed the urgency claimed by the applicants, concluding that it was largely self-imposed and that the applicants had viable alternatives to seek relief without immediate court intervention. The court found that Mr S[...] had not genuinely resigned from the company, as his actions indicated continued involvement. Furthermore, the court determined that the request for an interdict was not justified, as the applicants had not demonstrated the exceptional circumstances required for such a remedy.


REMEDY


The court dismissed the application to strike out the "with prejudice" offer from the record but ultimately struck the matter from the roll for lack of urgency. Costs were awarded to the respondents, to be taxed on scale B.


LEGAL PRINCIPLES


The case establishes that urgency in applications must be substantiated by genuine circumstances and that self-created urgency does not warrant immediate court intervention. Additionally, it clarifies that a "with prejudice" offer can be admissible in court proceedings, and that interdicts against speech require a high threshold of proof regarding the potential harm caused by the statements in question.

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document
in compliance with the law and SAFLII Policy

THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, JOHANNESBURG

Case 2025-025807
(1) REPORTABLE: No
(2) OF INTEREST TO OTHER JUDGES: No
(3) REVISED: Yes
8 March 2025

In the matter between:

T[…] S[…] S[...] First Applicant

N AND C MAINTENANCE AND Second Applicant
SPARES (PTY) LTD

and

FIRST NATIONAL BANK OF SA First Respondent
LIMITED t/a FNB

S[…] S[...] Second Respondent


JUDGMENT


DU PLESSIS J

Introduction

[1] The first applicant ( "Ms S[...]") and second respondent ( "Mr S[...]") are in the
process of divorce. They are also co-directors of the second applicant , […] and […]
M[…] and S[…] (Pty) Limited ("the company") and co- signatories of the company 's
bank accounts with the first respondent, First National Bank (“FNB”), which Ms S[...]
seeks to unfreeze. Ms S[...] (and the company) seek an order declaring FNB 's
conduct in freezing the bank accounts unlawful and directing their immediate
unfreezing.

[2] Ms S[...] also seeks interdictory relief against Mr S[...], prohibiting him from
making false accusations and statements to FNB about the first applicant 's dealings
with the second applicant (a so-called gagging order).

Urgency
[3] Ms S[...] and the company assert that this matter is urgent. The company
must comply with its contractual obligations towards service providers, employees,
and customers. The frozen accounts, they submit , will lead to financial and
reputational ruin, which cannot be undone later. Ms S[...] also cites household
financial obligations that require immediate attention.

[4] FNB does not oppose the urgency of the matter and abides by this Court 's
decision.

[5] Mr S[...], however, submits that any urgency is self-created, asserting that the
Ms S […] was aware of the account freeze from 4 February 2025 but only
approached the Court on 22 February 2025.

[6] Mr S […] further contends that alternative funding sources were available to
the applicants, making the need for urgent relief less compelling. Part of the reason
he sought to freeze the FNB account was the fact that large sums of money were
transferred to an Investec Bank account (which is not frozen), without Ms S[...]
providing substantive documentation for these transactions. He thus claims that Ms
S[…] can use that money to make payments and that there is no imminent crisis.

[7] After launching this urgent application, Mr S[...]' s attorneys sent a letter to the
applicant's attorneys with a "with prejudice " proposal, proposing a solution to the
problem of having to make payments from a frozen account. That includes
appointing Mr S[...] as a co-signatory to the bank accounts, as was agreed upon in a
Shareholders' Agreement in January 2025. Additionally , both directors must
authorise transactions to ensure proper corporate governance and prevent unilateral
withdrawal of funds – the reason for the freezing of the accounts. Once this is in
place, the parties can approach the bank to uplift the freeze.

[8] The applicants made an application to have this letter struck out, submitting
that it is privileged
1 from disclosure even if the letter itself said "with prejudice" and
Mr S[...] indicated that it will be attached to the answering affidavit.

[9] Ms S[...]'s attempt to strike the respondent's "with prejudice" offer from the
record is misplaced. A "with prejudice" offer is not subject to the same restrictions as
a "without prejudice" communication, which is privileged and requires the consent of
both parties for disclosure. By making the offer "with prejudice," Mr S[...] intentionally
placed it on record as an open and admissible offer upon which he is entitled to rely.
He is not disclosing an offer from Ms S[...]; it is his own offer. As was confirmed in
Agnew v Union and South West Africa Insurance Co Ltd,
2 a "with prejudice" offer is,
by its very nature, an open offer that the offeror allows to be referred to in
proceedings. The letter will thus not be struck.

[10] This offer also provides an alternative remedy, which undermines the urgency
of the application. The applicant has a viable solution outside of an urgent court
order: implementing the agreed- upon governance mechanisms and then
approaching the bank to unfreeze the account. Urgency cannot be based solely on

approaching the bank to unfreeze the account. Urgency cannot be based solely on
self-imposed limitations, especially when the respondent has made a good faith offer
in line with a previous agreement that removes the need for immediate court
intervention. The matter thus stands to be struck from the roll for lack of urgency.

1 Absa Bank Limited v Hammerle Group (Pty) Ltd [2015] ZASCA 43 par 13.
2 1977 (1) SA 617 (A) , see also Van Der Westhuizen v Akarana Homeowners' Association [2023]
ZAWCHC 220.

[11] I am compelled to address the applicant's contention that Mr S[...] resigned
from the company, because he sent an email to that effect in January, as this links to
the issue of authorisation to deal with the company's finances . His purported
resignation was not genuine and unequivocal, as his subsequent actions indicate
otherwise. Instead of severing all ties with the organisation, he continued to engage
in its affairs, maintain an active role in decision- making, and interact with key
stakeholders as though still in office, with the knowledge of Ms S[...] . His name is still
on the company's stationary and used in communications. This conduct is
inconsistent with a bona fide resignation. Without a clear severance from the role
and responsibilities, Mr S […]’s claim to have resigned is contrived and lacks legal
effect.

[12] Lastly, the request for an interdict against Mr S[...] to prevent further alleged
defamatory statements is not legally sustainable. While the right to dignity and
reputation is constitutionally protected, defamation is ordinarily remedied through
damages, not an interdict .
3 Courts only grant prior restraint orders in exceptional
cases where the statements are clearly false, malicious, and likely to cause
irreparable harm. 4 The applicant has not demonstrated such exceptional
circumstances. Absent clear, demonstrable falsehoods causing irreparable harm, a
pre-emptive restriction on speech is unjustified.

[13] Consequently, the interdict application thus stands to be struck from the roll
with costs for lack of urgency.

Order
[14] The following order is made:
1. The application to strike out is dismissed.
2. The matter is struck from the roll for lack of urgency , with costs to be
taxed on scale B.

3 See Herbstein J, et al The Civil Practice of the High Courts and the Supreme Court of Appeal of
South Africa. 5th ed. Juta; 2009 chapter 44 page 1475.

South Africa. 5th ed. Juta; 2009 chapter 44 page 1475.
4 National Media Ltd v Bogoshi 1998 (4) SA 1196 (SCA); Midi Television (Pty) Ltd v Director of Public
Prosecutions (Western Cape) 2007 (5) SA 540 (SCA).

WJ du Plessis
Judge of the High Court
Gauteng Division, Johannesburg


Date of hearing:

4 March 2025
Date of judgment:

8 March 2025

For the applicants:

K Kabinde instructed by Ndlovu Lindiwe
Attorneys Inc
For the first respondent:

Peterson instructed by Glvoer
Kannieappan Inc
For the second respondent: D Goosen instructed by Scalco Attorneys