The issue of whether a High Court correctly exercised its
discretion in ordering a foreign applicant to provide security for
costs was recently considered by the South African Supreme Court of
Appeal ("SCA").
In Mystic River Investments 45 (Pty) Ltd and another v
Zayeed Paruk Incorporated and others, the respondents
requested security for costs from the foreign applicant, arguing
that they feared that the applicant would not pay if they were
successful and awarded costs.
Mystic River and Mr Karim Issa Mawji, as its sole director,
instituted an application against five respondents, alleging that
they were misappropriating from Mystic River.
Because Mr Mawji is domiciled outside South Africa and does not
have property in the country, the second to fifth respondents
instituted an application in terms of rule 47(1) of the Uniform
Rules of Court against Mr Mawji requiring him to provide security
for costs.
