Case Law[2025] ZAGPPHC 106South Africa
Sheldrake Game Ranch CC v CJ Minnaar Beherend (Pty) Ltd and Others (144936/2024) [2025] ZAGPPHC 106 (31 January 2025)
High Court of South Africa (Gauteng Division, Pretoria)
31 January 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Sheldrake Game Ranch CC v CJ Minnaar Beherend (Pty) Ltd and Others (144936/2024) [2025] ZAGPPHC 106 (31 January 2025)
Sheldrake Game Ranch CC v CJ Minnaar Beherend (Pty) Ltd and Others (144936/2024) [2025] ZAGPPHC 106 (31 January 2025)
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sino date 31 January 2025
REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, PRETORIA
CASE
NO.: 144936/2024
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
Date:
31 JANUARY 2025
In
the matter between:
SHELDRAKE
GAME RANCH CC
Applicant
and
CJ
MINNAAR BEHEREND (PTY) LTD
First Respondent
CORNELIUS
JACOBUS MINNAAR N.O.
Second
Respondent
JACOBUS
PETRUS MINNAAR N.O.
Third Respondent
ESMELAU
EIENDOMME (PTY) LTD
Fourth Respondent
FONTAINE
BLEAU LANDGOED (PTY) LTD
Fifth
Respondent
JUDGMENT
DE VOS AJ
[1]
On 17 January 2025 this Court granted an
order in the following terms:
1.
The first, second, third, fourth and fifth
respondents are granted leave to intervene as respondents in the
ex
parte
application.
2.
The order granted on 10 December 2024,
under case number 144936/2024 is reconsidered and set aside.
3.
The applicant (Sheldrake Game Ranch CC) is
ordered to pay the costs of the application as on the scale between
Attorney and Client,
including the costs of two counsel.
[2]
These are the reasons for the order.
CONTEXT
[3]
Sheldrake has, since 1985, conducted
hunting and safari operations on six farms, totalling almost 12 000
ha. On these farms
live a buffalo herd of 220 worth R 15 million, as
well as exotic game such as the Livingstone Eland and Zimbabwean Blue
Ostrich.
Sheldrake’s day-to-day was managed by Mr Gerhard
Cornelius Minnaar. In October 2024 Mr Gerhard Minnaar passed away
unexpectedly
in a gyrocopter accident. Mr Minnaar was the sole
occupant of the gyrocopter when it collided with the Soutpansberg,
about 3 km
from Louis Trichard in inclement weather. Mr Minnaar’s
unexpected death left his wife, Ms. Eileen Minnaar, in charge of
Sheldrake.
[4]
Lost in the accident was Mr Minnaar’s
computers and cellphones, leaving Ms. Minnaar unable access any of
the information on
these machines. Ms. Minnaar also did not have the
necessary passwords or information concerning Sheldrake’s bank
accounts.
Her immediate concern was the buffalo herd. Due to a
devastating drought in the Vhembe District, north of the
Soutpansberg, the
farms received no substantial rain since October
2023. As there was no natural grazing grass, the herd therefore had
to be fed
grass, costing R 75 000 per month. Ms. Minnaar could
not ensure that the herd survives, she explained, as she had no
access
to any bank accounts. She faced the immediate obligation to
step into Mr Minnaar’s shoes, without any information necessary
to do so. She was advised that an elegant solution would be to put
Sheldrake into business rescue.
[5]
Giving effect to this advice, a resolution
was passed on 28 October 2024 to place Sheldrake in business rescue.
The basis of the
business rescue, advises Sheldrake, is that it was
handsomely solvent, but immediately, in financial distress. Over time
it would
be able to meet its expenses and had reasonable prospects of
recovery but required immediate intervention in terms of business
rescue.
[6]
Section129(3) of the Companies Act requires
publication of the resolution within five days of the resolution.
Publication did not
take place in time. The fire that followed Mr
Minnaar’s accident was fueled by lithium batteries.
Notwithstanding that a
helicopter dropped approximately 28 1000 litre
buckets of water on the wreckage, the fire raged fully for five days.
Mr Minnaar
could only be identified after the fire had been
extinguished through dental records. As a result, Mr Minnaar’s
death certificate
was only obtained three weeks after his death. In
addition, there were delays within the CIPC. The outcome is
that publication
in terms of section 129(3) did not take place within
five days of the resolution. It is this delay in publishing the
section
129(3) notice which led Ms. Minnaar to pass a second
resolution and to approach this Court for authorisation to file the
second
business rescue resolution in terms of section 129(5)(b) of
the Companies Act. Mis Minnaar was successful as this Court
granted
an
ex parte
order on 10 December 20204 authorising Sheldrake to file the second
resolution.
[7]
The
ex parte
order was presented as a cure for a technical problem with timeous
publication, caused by events outside of Ms Minnaar’s
control
and which the Court is statutorily empowered to provide a solution.
It was presented to the Court, sitting in urgent
court hearing an
ex
parte
matter, as a neat solution with
no complications. From what will become clear below, not much more
was presented to the Court dealing
with the
ex
parte
application.
[8]
This innocuous technical and procedural
step, authorising the second resolution, is defined as an attempt to
derail existing proceedings
in the Polokwane High Court by four
parties: CJ Minnaar, Cornelius Jacobus Minnaar N.O., Jacobus Petrus
Minnaar N.O., Esmelau Eiendomme
(Pty)Ltd and Fontaine Bleau Langoed
(Pty) Ltd. For ease of reference, I will refer to these four parties
as “the Minnaar
parties”. In essence they contend
that the
ex parte
application
was intended to render a pending application in the Polokwane High
Court, moot. The existing proceedings in the
Polokwane High
Court is an application brought by some of the Minnaar parties to set
aside the business rescue proceedings.
[9]
Some context is required. Before Mr Minnaar
passed, a family dispute arose within the Minnaar clan. The dispute
involves claims
for monies and membership in Sheldrake. These
disputes have grown to twelve pieces of litigation to be considered
by Naude-Odendaal
J in Polokwane J during the last week of February
2025. These pieces of litigation will be referred to as the civil
claims.
[10]
The Minnaar parties contend that the
business rescue proceedings were commenced, not to recover a
financially distressed Sheldrake,
but rather with the sole aim of
obtaining a moratorium. A business in business rescue attracts,
statutorily, a moratorium against
existing claims. The moratorium
halts the civil claims. As Sheldrake is in business rescue –
these claims cannot be pursued.
This, say the Minaar parties, is the
true impetus behind the business rescue.
[11]
The Minnaar parties launched proceedings to
set aside the business rescue proceedings, and it was to be heard on
9 December 2024.
These proceedings will be referred to as the setting
aside proceedings. However, due to a conflict in the Court –
the matter
was stood down to 13 December 2024. It is in this
gap, created by the setting aside proceedings being stood down in
Polokwane
– that Sheldrake obtained its
ex
parte
order in this Court, in Pretoria.
[12]
The Minnaar parties launched urgent
proceedings before this Court in terms of Rule 6(12)(c) to reconsider
and set aside the
ex parte
order. The Minnaar parties contend that the
ex
parte
order was granted with no notice
to them, without them being heard and was not authorised by the
legislation. In addition this
Court was not informed that it lacked
jurisdiction. Centrally, the Minnaar parties contend that
Sheldrake did not comply
with its duties to disclose all relevant
facts in the application. Specifically, it did not disclose, fully,
the relevance of ongoing
litigation in the Polokwane High Court –
specifically the impact of these proceedings on the setting aside
application. The
Minnaar parties also contend that the true reason
for launching the
ex parte
application was not to solve a technical issue of non-compliance, but
rather to render the setting aside proceedings – which
were
being argued in the same week in a different division – moot.
RECONSIDERATION
Jurisdiction
[13]
Before this Court, the Minnaar
parties request a reconsideration of the
ex
parte
order on the basis that the Court
seized with the
ex parte
application did not have jurisdiction. Sheldrake is a Close
Corporation. It is regulated by the Close Corporation Act 69, of 1984
which in section 7 provides that the High Court within whose area of
jurisdiction the registered office or main place of business
of the
close corporation is situated shall have jurisdiction.
[14]
The
only home which a corporation can be said to have is the place where
the operations for which it was called into existence are
carried on
(
TW
Beckett & Co Ltd v H Kroomer Ltd
1912
AD 324
at
334).
It
is common cause that the principal place of business, also, is in
Musina. Concretely, the farms are in Musina and Sheldrake
has
chosen Musina as its registered address. The Court has the CIPC
report indicating that Sheldrake’s registered address
is
Musina, Limpopo. Sheldrake’s only home is in Musina, Limpopo.
As Musina is in Limpopo, the dispute falls within
the jurisdiction of
the Polokwane High Court. The court with jurisdiction is the
Polokwane High Court.
[15]
In
addition, our courts have held that as supervision for business
rescue purposes is a matter going to the status of the subject
business;
and that the power to make a
determination on a question of status involves a
ratio
jurisdictionis
exercisable only by
the court within whose jurisdiction the company 'resides'
(
Sibakhulu Construction (Pty) Ltd v
Wedgewood Village Golf Country and Others
2013 (1) SA 191
(WCC).
Business
rescue is also a matter which is
“interlinked in such a manner by the provisions of the 2008 Act
that it is undesirable for
reasons of comity between courts of equal
status, efficiency, commercial convenience and certainty that they be
amenable to proceedings
in concurrent jurisdictions”. These are
considerations militating in favour of the recognition of a regime
that recognises
a company only to be resident in one place rather
than two thereby assuring that only one court will have
jurisdiction.
” (
Sibakhulu
para 23)
[16] The
Polokwane High Court is therefore the Court with jurisdiction and the
sole court with jurisdiction.
The position
under the Companies Act appears to be stricter in that it appears
that in respect of every business there will be only
a single court
in South Africa with jurisdiction in respect of winding-up and
business rescue matters. In this case, this dispute
need not engage
the court, as both the registered and principal place of business,
both, are in Musina.
[17]
For these reasons, this Court, the North
Gauteng Court did not have jurisdiction as neither Sheldrake’s
place of business
nor registered address are within this Court’s
jurisdiction. This is determinative of the reconsideration
application. On
this basis alone, the
ex
parte
order is to be set aside.
[18]
The facts which give rise to this finding
on jurisdiction do not appear in the papers that served before this
Court in the
ex parte
application. Notably absent in the
ex
parte
founding affidavit is an
allegation regarding Sheldrake’s registered address or
principal place of business. The Court seized
with the
ex
parte
application was not informed that
Sheldrake’s registered address did not fall in this Court’s
jurisdiction. Rule
6(12)(c) applies in exactly such an
instance, where a vital piece of evidence was not presented to the
urgent court, that a reconsideration
of the order granted –
based on incomplete evidence – was based.
[19]
Sheldrake’s response is not to
dispute that the principal place of business or registered address
are within this Court’s
jurisdiction. Rather, they
present, for the first time in reply, the argument that the business
rescue practitioner’s
address gives this Court jurisdiction.
[20]
The parties filed three affidavits in this
matter. The original founding affidavit by Sheldrake in the
ex
parte
application. The Minnaar
parties filed an answering affidavit and Sheldrake then filed a
replying affidavit. In the replying
affidavit Sheldrake seeks to
explain why this Court had jurisdiction. The explanation is that the
business rescue practitioner,
Mr du Toit’s business premises
are in Pretoria.
[21]
Sheldrake’s first problem is that it
is inappropriate to make out a case in reply, particularly in the
context of reconsideration
applications. Reconsideration applications
can be set down on the original papers and it is not open to the
original applicant
to bolster its original application by filing a
supplementary founding affidavits (
Afgri
Grain Marketing (Pty) Ltd v Trustees
[2019] ZASCA 67).
Even if an affidavit is filed, it does not
preclude the party seeking reconsideration from arguing at the
outset, on the
basis of the applicant’s papers alone, that the
applicant has not made out a case for the relief. The absence
of jurisdiction,
is exactly such an argument which a party can make
in reconsideration or an order granted. That is a well-established
entitlement
in application proceedings and there is no reason why it
should not be adopted in reconsideration applications (
Afgri
para 13). Sheldrake’s attempt to ground this Court’s
jurisdiction by providing new allegations in reply is not
permitted.
This Court’s jurisdiction to determine the
ex
parte
application is to be considered
based on the founding affidavit. In the founding affidavit no
allegation appears that the Court
has jurisdiction on the basis that
Mr du Toit resides in Pretoria.
[22]
Even if Sheldrake were permitted to make
out this case, it does not alter the outcome, as it is legally
unsound. Sheldrake’s
response is beset with obstacles.
Centrally, Mr du Toit replaces the Board. As a business rescue
practitioner steps
into the shoes of the Board. The residence
of a director does not provide a court with jurisdiction (
De
Bruyn v Grandselect 101 (Pty) Ltd
(1961/2013)
[2014] ZANCHC 3).
It is the place of business or registered address of the company, not
the Director which determines the Court’s jurisdiction.
Similarly the place of business of a business rescue practitioner
does not ground jurisdiction.
[23]
In
addition,
the Companies
Act contemplates that only one Court would have jurisdiction
(
Sibakhulu Construction
(Pty) Ltd v Wedgewood Village Golf Country
2013 (1) SA 191
(WCC)).
Business
rescue procedures are regulated in terms of chap 6 of the
2008
Companies
Act. Section
131
resorts in chap 6. The word
'court
is
specially defined for the purposes of chap 6 of the Act. In terms of
s 128(1)(e) of the Act,
'court',
in this context means
the
High Court that has jurisdiction over the matter.
It is
perhaps significant that the court contemplated in the definition is
referred to by the definite rather than the indefinite
article, which
suggests on the face of it that only a single High Court is held in
view. It would defeat the various purposes of
only one court having
jurisdiction, identified in
Sibakula
and set out above, over business rescue proceedings, if the business
rescue practitioner’s address would ground jurisdiction.
[24]
In summary, Sheldrake’s attempt to
present a factual basis for the business rescue practitioner’s
address to ground
the Court’s jurisdiction is rejected.
In any event, even if this factual case had been made out, it would
not matter
as Sheldrake’s business and registered address are
in Musina.
[25]
The Court has a wide discretion under the
rule. Once these jurisdictional facts of rule 6(12)(c)have been
established, the
Curt is free to consider in the widest sense of the
word – thus it can most certainly issue an order of rescission
by way
of final judgment (
Oosthuizen v
Mijs
2009 (6) SA 266
(W) p 267 E to
269D).
Several factors may be taken
into account in order to reconsider an order obtained
ex
parte(Erasmus, Superior Court Practice
vol
2 at D1-89). These include whether an imbalance, oppression or
injustice has resulted, and if so, the nature and extent
thereof and
whether alternative remedies are available. There is a clear
imbalance and injustice where a party obtains an
order on an
ex
parte
basis in circumstances where the
Court lacked jurisdiction.
[26]
The Court finds that the
ex
parte
application was launched in the
wrong Court. As such, that is the end of the matter. As
the Court granting the
ex parte
order did not have jurisdiction, the order is to be set aside.
[27]
In order to follow a belt and braces
approach, in the event of an appeal, the Court also considers whether
Sheldrake complied with
its duty of utmost good faith.
Duty of utmost good faith
[28]
Section 129 permits a party to launch an
ex
parte
application. It is not
clear whether the section intended that a party could, in
circumstances where there is an existing
challenge to the validity of
the business rescue proceedings, use section 129 on an
ex
parte
basis. Assuming section 129
permits an
ex parte
approach in the circumstances of this case, without deciding the
issue, Sheldrake attracted a duty to act in utmost good faith.
[29]
Ex
parte
applications
deviate from the fundamental principle that a Court must listen to
all parties affected by an order before reaching
a conclusion.
An
ex
parte
application,
by its nature, places only one side before the court (
Pretoria
Portland Cement Co Ltd v Competition Commission
2003
(2) SA 385
(SCA)).
An
ex
parte
application is one in which relief is being obtained behind an
opponent’s back (
South
African Airways SOC v BDFM Publishers
2016 (2) SA 561
(GJ) at para 22).
Ex
parte
applications, as an exception to this rule, requires the applicant
who comes to court to provide the court with all relevant
information.
It is therefore vital that such a party is not permitted
to be selective in what facts it presents to the Court. Therefore,
an applicant in an
ex
parte
application
bears the duty of utmost good faith in placing before the court all
the relevant material facts that might influence
a court in coming to
a decision. Facts that are material and which are within the
applicant’s knowledge should be disclosed.
(
Powell
and Others v Van der Merwe and Others
2005
(5) SA 62
(SCA) para 42).
[30]
An
ex
parte
application must be tested
against these propositions:
1.
in
ex parte
applications all material facts
must be disclosed which
might
influence a court in
coming to a decision;
2.
the non-disclosure or suppression of facts need not be wilful
or
mala fide
to incur the penalty of rescission;
3.
the Court, apprised of the true facts, has a discretion
to set aside the former order or to preserve it.’ (
Powell NO
and Others v Van der Merwe and
2005 (5) SA 62
(SCA) para 73).
[31]
Unless there are very cogent practical reasons why an order
should not be rescinded, the Court will always frown on an order
obtained
ex parte
on incomplete information and will
set it aside even if relief could be obtained in a subsequent
application by the same applicant.’
(
Schlesinger
at
350B-C)
[32]
The central position is this: good faith is
sine qua non
in
ex parte
applications.
Material facts that might weigh with a court must
be disclosed. Whether they were omitted, inadvertently or
deliberately matters
not. Whether a court will upon disclosure
of all relevant facts grant the relief in any event, is not
determinative.
[33]
Even
in cases where the statute permits
ex
parte
applications – the duty remains. This is clear from the host of
cases dealing with search and seizure operations. (
NDPP
v Braun and another
2007
(1) SACR 326
(C) para 20). The statutory permission to
approach the Court
ex
parte
does not relieve the applicant from “the normal burden imposed
on every applicant who approaches the court for an
ex
parte
order”.
(
NDPP
v Braun
para 21). Sheldrake’s reliance on section 129(5)
permitting an
ex
parte
approach does not assist them. The duty remains, even if statute
permits an
ex
parte
application.
[34]
Sheldrake attracted this duty. Its
disclosure in the founding affidavit in the
ex
parte
application must be considered.
The Court considers what was disclosed to the Court hearing the
ex
parte
application. It appears that a
sole paragraph is dedicated to this where Ms Minnaar then tells the
Court that –
“
Kobus has
launched proceedings in the Limpopo Division in which he seeks to
have the resolution of 28 October 2024 set aside. I
attach a copy of
the Notice of Motion which is to be heard urgently on 10 December
2024.”
[35]
That is the sole reference to the setting
aside application in the Polokwane High Court. Single and sole
reference. This disclosure
must be tested against Sheldrake’s
duty of utmost good faith to disclose material facts.
[36]
Three categories of facts were not
disclosed to the Court dealing with the
ex
parte
application.
[37]
First, Sheldrake did not disclose to the
Court that the registered business address and main place of business
was not in the Court’s
jurisdiction. No explanation for
this failure has been presented. The
ex
parte
Court was not made aware of
this. Had it been made aware of this, it would not have granted
the relief sought.
[38]
Second, Sheldrake did not disclose to the
ex parte
Court that the Minnaar parties dispute that the jurisdictional fact
for business rescue – that the business was in distress
had
been proven – and instead it had been launched to abuse the
moratorium which business rescue offers.
[39]
Some context is required. Ms Minnaar
sought to place Sheldrake in business rescue as she was having
difficulty obtaining access
to the bank statements, which rendered
the game on the farm at risk of survival. The Minnaar parties
take issue, factually,
with Ms Minnaar’s expressed difficulties
in accessing the bank statements. They submitted that it would
not be a herculean
task for Ms Minnaar, as the sole member of
Sheldrake, to go to the local branch of the bank, death certificate
in hand, and obtain
access to the bank statements. Particularly in
the local branch of Musina, this would not be a task of great
duration. The Minnaar
parties do not believe Ms Minnaar’s
reason for seeking business rescue.
[40]
In addition, they submit if it if were
factually true, which they dispute, it is not legally competent a
basis for business rescue.
Business rescue is for businesses in
financial distress – who are incapable of paying their debts,
not for when there is
a problem in accessing a bank account.
Placing Sheldrake in business rescue is therefore not the competent
use of business
rescue.
[41]
In addition, the Minaar parties present
evidence that Sheldrake is not, in fact, financially distressed at
all. The only creditor
at the moment that the Minnaar parties
is aware of is SARS: with Sheldrake owing R 25.00 to SARS. Ms Minaar
describes Sheldrake
as handsomely solvent. In short, submits
the Minnaar parties, there is no distress, there is no harm of
creditors not being
paid and to refer to Sheldrake as in financial
distress is cynical. This was a central aspect of the
proceedings setting
aside the business rescue in the Polokwane High
Court. None of this was disclosed to the
ex
parte
Court.
[42]
Third, Sheldrake believed that the
ex
parte
application would render the
setting aside proceedings Polokwane High Court moot.
Sheldrake’s attorney received the
ex parte order on 11 December
2024, the same day, a letter is penned to the Minnaar parties, that
the
ex parte
application is rendered moot, demanding the setting aside proceedings
be withdrawn and demanding punitive costs from the Minaar
parties.
Sheldrake should have disclosed to the
ex
parte
Court that Sheldrake believed
that the
ex parte
order
would bring to an end, litigation to be heard in the same week in the
urgent court of another division. This would have
been a
material consideration to the
ex parte
Court.
[43]
No doubt, had the
ex
parte
Court been informed that it was
not only engaging in the authorisation of a technical problem caused
by the difficulty in obtaining
Mr Minnaar’s death certificate,
but rather that it would be the end of opposed litigation in another
division, it would have
at a minimum been a relevant consideration
for the
ex parte
Court.
[44] Among the
factors which the court will take into account in the exercise of its
discretion to grant
or deny relief to a litigant who has been remiss
in his duty to disclose, are the extent to which the rule has been
breached, the
reasons for the non-disclosure, the extent to which the
court might have been influenced by proper disclosure, the
consequences,
from the point of doing justice between the parties, of
denying relief to the applicant on the ex parte order, and the
interest
of innocent third parties such as minor children, for whom
protection was sought in the
ex parte
application (
Averda
South Africa (Pty) Limited v Unlawful and Unauthorised Individuals
and Pickers Traversing Property
(19700/18) [2019] ZAGPJHC 221
para 16).
[45] These
factors weigh against Sheldrake. There are no reasons provided for
the non-disclosure –
despite the Minnaar parties raising the
failure to act in the utmost good faith in the affidavit before this
Court. The extent
to which the court would have been influenced is
severe. Sheldrake failed to disclose the absence of the Court’s
jurisdiction
to hear the matter. Had the Court known this it
would have – without considering anything else and regardless
of any
other issue – denied the relief sought.
[46]
Sheldrake dedicates a single paragraph to
reference that the Minnaar parties are seeking to set aside the
business rescue proceedings.
This single paragraph fails to
disclose a host of facts, it is at best for Sheldrake a failure to
disclose all relevant facts and
at worse, it was acting in bad faith.
[47]
Had the material facts been disclosed, the
ex parte
Court would have been informed that it is seeking to grant an order
urgently on an
ex parte
basis, that would render existing proceedings launched in another
Division moot in circumstances where this Division lacked
jurisdiction.
[48]
It matters not whether Sheldrake is
entitled to the relief sought or not – that is an issue which
does not detract from this
Court’s discretion to set aside an
order on the basis that the applicant in
ex
parte
proceedings failed to adhere to
its duty of utmost good faith.
Intervention
[49]
Sheldrake submitted that the Minnaar
parties could not rely on Rule 6(12)(c) as the rule permits a party
“against who”
an order was granted to apply for a
reconsideration. The argument is that the
ex
parte
order was not granted
against the Minnaar parties and was merely an order authorising
Sheldrake to file a further resolution pertaining
to business rescue
in terms of
section 129(5)(b)
of the
Companies Act 2008
.
[50]
The rule was clearly intended to apply in contexts where
relief was granted
ex parte
. It is not only a party who
was a respondent who can rely on
Rule 6(12)(c)
but any party against
who an order was granted.
Rule 6(12)(c)
is a safeguard against
relief obtained in urgent court behind an opponent’s back. It
would defeat the purpose of
Rule 6(12)(c)
if it did not find
application in
ex parte
proceedings – which are by
nature proceedings behind an opponent’s back.
[51]
In any event, Sheldrake’s express position is that the
ex parte
order renders the Minnaar parties’ existing
litigation in the Polokwane High Court moot. It is unclear how
Sheldrake can
in the same breath then contend that the
ex parte
order does not operate against the Minnaar parties. Sheldrake’s
argument in this regard is rejected.
[52]
In any event, the Minnaar parties presented a solution to the
argument, by filing a notice of intervention on behalf of the Minnaar
parties in the reconsideration application. It might be overly
cautious as Rule 6(12)(c) does not require such an order for
intervention, but it has been brought out of an abundance of
caution. Sheldrake demurred regarding the timing, but did not
formally oppose the leave to intervene.
[53]
The Minnaar parties were affected by the
ex parte
order. As the authorisation in
s 129
has the impact of ending
existing litigation launched by the Minnaar parties, they clearly had
a direct and substantial interest.
[54]
In these circumstances,
the Minnaar
parties have a direct interest in the proceedings and the court
granted the leave to intervene.
URGENCY
[55]
There are several aspects of law that
renders the reconsideration urgent.
[56]
The first is that business rescue, to be
effective, has to be speedy. It was especially so enacted by
Parliament and has been
recognised as such by our courts.
[57]
At an additional level, the Minnaar parties
contend that a court without jurisdiction has granted an order. This
must be corrected
immediately, particularly as it affects existing
litigation in another division. On this score, also, the matter is
urgent.
[58]
Lastly, Sheldrake has obtained an unfair
advantage as a result of several material non-dislsosure. In such a
case, the Court must
be astute and ensure that Sheldrake be deprived,
immediately, of any advantage resulting from such a breach of duty.
This
requires the Court to consider the matter urgently.
COSTS
[59]
The Minnaar parties sought and were granted
costs on a punitive scale. The Minnaar parties are successful
and are therefore
entitled to their costs. The punitive costs
are granted to show the Court’s displeasure with Sheldrake’s
conduct
during these proceedings.
[60]
The Minnaar parties accused Sheldrake of
launching the
ex parte
application in the wrong court with the intention of avoiding the
scrutiny of the urgent Court judge in Polokwane who would be
dealing
with the setting aside proceedings. The Minnaar parties require
Sheldrake to explain why it sought an order behind their
back, in the
same week but, in a different jurisdiction, to where an ongoing
dispute regarding the business rescue was being heard.
The accusation
was made squarely in the papers, it called on Sheldrake to provide an
answer. It cries out for a response.
Sheldrake provided
no answer on the papers. Sheldrake’s silence means that
the Minnaar parties’ accusation that
the North Gauteng High
Court was chosen to avoid the scrutiny of the Court in ongoing
litigation remains unanswered. This
should attract a punitive
costs order.
[61]
It also weighs with the Court that there
has been material non-disclosures in an
ex
parte
application. The Court
frowns on this and shows its disapproval in the form of a punitive
costs order.
[62]
The matter is complex and involves a long
history. It is appropriate to grants costs of two counsel. Scale C
for the senior counsel
and Scale B for junior counsel.
I de
Vos
Acting Judge of the High Court
Delivered:
This judgment is handed down electronically by uploading it to the
electronic file of this matter on CaseLines.
As a courtesy gesture,
it will be e-mailed to the parties/their legal representatives.
For the applicant:
W Roos
Instructed by:
Christo Reeders Attorneys
Counsel for respondents:
APJ Els SC
AA Basson
Instructed by:
Krone & Associates Inc.
Date of hearing:
17 January 2025
Date of order:
17 January 2025
Date of request for reasons:
21 January 2025
Date of reasons:
31 January 2025
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