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# South Africa: North Gauteng High Court, Pretoria
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## R.A.S v Jordaan and Others (29014/18)
[2025] ZAGPPHC 235 (28 February 2025)
R.A.S v Jordaan and Others (29014/18)
[2025] ZAGPPHC 235 (28 February 2025)
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sino date 28 February 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO: 29014/18
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED.
In the matter between:
R[…]
A[…] S[…]
Applicant
and
RUDOLPH
PHILLIP JORDAAN
First
Respondent
VALOTECH
CC
Second
Respondent
G[…] P[…]
S[…]
(born
R[…])
Third
Respondent
JUDGMENT
This judgment was
handed down electronically by circulation to the parties’ legal
representatives by email and uploading it
to the electronic file of
this matter on Caselines. The date and time of hand-down is deemed to
be 10h00 on 28 February 2025.
TEFFO,
J
:
Introduction
[1]
This is an application for
the removal of the first respondent as the receiver and liquidator of
the joint estate of the applicant
and the third respondent and that
another receiver and liquidator be appointed in his stead.
[2]
The applicant further
seeks ancillary relief which relates to the first respondent’s
appointment as receiver and liquidator.
[3]
The application is only
opposed by the first and second respondents. It will be convenient in
this application to refer to the first
and second respondents
separately. Where appropriate they will be referred to collectively
as the respondents. The third respondent
who has not opposed the
application will be referred to separately as the third respondent.
[4]
Condonation, which was not
opposed, was granted for the late filing of the respondents’
answering affidavit and the applicant’s
replying affidavit.
[5]
I was informed at the
commencement of the hearing that there is a pending application under
case no. 28013/2021 (‘the pending
application’)
instituted by the first respondent against the applicant. It appears
that the parties endeavoured to consolidate
the two applications so
that they could be heard together. However, that was not possible. I
was also informed that the pending
application was not ripe for
hearing as the parties were still to file heads of argument and
comply with the directives of this
court.
Factual
background
[6]
The applicant and the
third respondent were married to each other in community of property.
They divorced on 6 February 2020. In
terms of a settlement agreement
signed by them on the day of divorce, the first respondent was
appointed to act as liquidator and
receiver of their joint estate and
his powers and duties to act as such were attached to the settlement
agreement. The settlement
agreement was incorporated in the divorce
order.
[7]
Pursuant to the divorce
order, the first respondent commenced his duties as liquidator and
receiver of the joint estate of the applicant
and the third
respondent. Meetings were held between him, the applicant, the third
respondent and their legal representatives.
Eventually, the first
respondent produced a provisional report dated 21 July 2020. The
applicant became dissatisfied with the conduct
of the first
respondent in the performance of his duties. This prompted him to
bring this application.
[8]
It is prudent to mention
that the second respondent is a close corporation under which the
first respondent performs his duties
as a liquidator and receiver.
[9]
In summary the applicant
challenges the appointment of the first respondent as liquidator and
receiver of the joint estate between
him and the third respondent. He
criticises the circumstances that led to the signing of the
settlement agreement and attacks the
conduct of the first respondent
in the performance of his duties as receiver and liquidator. He
alleges that the first respondent
has not been impartial and that he
has a reasonable apprehension of bias against him in favour of the
third respondent. He accuses
the first respondent of not cooperating
with his attorneys, refusing to entertain his offer to purchase the
matrimonial home with
the third respondent for the sum of R500 000,00
and insisting that the matrimonial home should be sold for an amount
of R450 000,00.
[10]
The respondents dispute
the applicant’s entitlement to the relief sought. They deny any
improper or irregular conduct on their
part. They contend that the
application is a gross abuse of the court’s processes and that
the applicant is the cause of
the delay in finalising the division of
the joint estate.
The
issues for determination
[11]
What is the effect of a
settlement agreement that has been made an order of court; whether
the first respondent should be removed
and replaced as liquidator and
receiver of the joint estate of the applicant and the third
respondent and whether the ancillary
relief sought pursuant thereto
should be granted.
Applicable
legal principles
[12]
The relevant principles
applicable to the removal of liquidators were set out in the
following cases:
“
[125] In Hudson
and others NNO v Wilkins NO and others
2003 (6) SA 234
(T) (at para
13) the court had this to say:
‘
[13] A
liquidator may be removed from office if there is sufficient
suspicion of impartiality or conflict of interest, since a liquidator
must be and appear to be independent and impartial. He or she must be
seen to be independent since his duties as liquidator may
require him
or her to investigate (see Re Giant Resources Ltd [1991] 1 Qd R107 at
117; Re National Safety Council of Australia
(Vic Division)
[1990] VR
29
([1989]
15 ACLR 355
(SC Vic); City of Suburban Ltd v Smith [1998]
28 ACSR 328 (FC of A) at 336). A court will exercise its discretion
to remove a liquidator
if it appears that he or she, through some
relationship, direct or indirect, with the company or its management
or any person concerned
in its affairs, is in a position of actual or
apparent conflict of interest. In exercising that discretion Bowen LJ
in Re Adam:
Eyton Ltd: Ex parte Charlesworth
(1887) 36 Ch D 299
at
306 said:
“
Of
course, fair play to the liquidator himself is not to be left out of
sight, but the measure of course is the substantial and
real interest
of liquidation.
”’
[126] In
Ma-Afrika Groepbelange (Pty) Ltd v Millman and Powell NNO
1997 (1) SA
547
(C) at 561H-J the following is stated:
‘
Good
cause for the removal of a liquidator has also been held to have been
shown where a liquidator has not been independent. This
was a ratio
of the judgment in Re Sir John Moore Gold Mining Co
(1879) 12 ChD 325
(CA) at 332, where a liquidator was removed because his “interests
may conflict with his duty”. See also Re P Turner
(Wilsden) Ltd
(1986) 2 BCC 99
, 567 (CA) at 99, 570 and Re London Flats Ltd
[1969] 2
All ER 744
(Ch) at 752E-F, where it was held that a liquidator should
be “wholly independent” and that the removal of a
liquidator
should be “in the interests of every one concerned
in the liquidation
”.
[13]
The
Constitution of the Republic of South Africa
[1]
provides that an order or decision issued by a court binds all
persons to whom, and all organs of the State to which, it applies.
[14]
All
orders of this Court, whether correctly or incorrectly granted, have
to be obeyed until they are properly set aside
[2]
.
[15]
In
Municipal
Manager OR Tambo District Municipality and Another v Ndabeni
[3]
,
the Constitutional Court reaffirmed the principle that a court order
is binding until it is set aside by a competent court and
this
necessitates compliance, irrespective of whether the party against
whom the order is granted believes it to be a nullity or
not.
[16]
The
proper approach to determining whether the applicant in motion
proceedings has made out a case for the relief sought in a case
where
some of the allegations are disputed by the respondent was pronounced
in
Plascon-Evans
.
According to the
Plascon-Evans
rule, the applicant would succeed if the admitted facts alleged by
it, together with the facts alleged by the respondent, justify
the
relief sought. However, it must be pointed out that where a
respondent raises a bare denial to an allegation made by an
applicant,
the denial is not regarded as raising a genuine dispute of
fact. In such a case the allegations made by the applicant may be
taken
into account in deciding whether the order sought is justified,
unless the respondent has requested that the applicant’s
deponent be subjected to cross-examination
[4]
.
[17]
Because
the affidavits in motion proceedings constitute pleadings and
evidence, the failure to respond to allegations made by the
applicant
is taken to be an admission of those allegations. In assessing
whether the appellants have made out a case for the relief
they seek,
we will apply these principles
[5]
.
[18]
A
real dispute of fact arises,
inter
alia
,
where a court is satisfied that the party who purports to raise the
dispute has in its affidavit seriously and unambiguously addressed
the facts said to be disputed
[6]
.
Discussion
The
appointment of the first respondent as receiver and liquidator
[19]
The applicant alleges that
he was not satisfied with the appointment of the first respondent as
liquidator and receiver of his joint
estate with the third
respondent. He contends that on the day of the divorce, he was
presented with a settlement agreement at court
which he never had
sight of prior to that date. He was informed that upon initialling
and signing it, his marriage with the third
respondent would be
dissolved provided the settlement agreement was accepted by the
court.
[20]
He claims that he did not
know the respondents and he still does not know them. He was never
shown the first respondent’s
credentials and has never seen his
consent to act as liquidator and receiver of his joint estate with
the third respondent. He
asserts that the first respondent has
indicated that he was never a party to an application for his
appointment as liquidator and
receiver. He alludes to the fact that
he does not know the professional body to which the first and/or
second respondent(s) belong
where he would raise his concerns
pertaining to the performance of the first respondent’s duties.
[21]
In response to the
allegations the respondents contend that the application is a gross
abuse of the court’s process in that
the first respondent has
been cited in his personal capacity and not in his capacity as a
liquidator and receiver. They claim that
the applicant seeks to amend
a court order without seeking the correct relief.
[22]
The respondents assert
that throughout the process the applicant acted in terms of the court
order by attending meetings with the
first respondent and his own
attorney. Despite all this, he now alleges that he does not know them
and did not and would not have
consented to the appointment of the
first respondent as liquidator and receiver. They contend that the
applicant also provided
the first respondent with the original signed
version of his assets and liabilities.
[23]
In reply the applicant
admits that pursuant to the divorce order, he attended at the offices
of the first respondent and that he
provided him with the original
signed version of his assets and liabilities.
[24]
I find the issues raised
by the applicant meritless for the following reasons: He admits that
he signed the settlement agreement.
The settlement agreement was made
an order of court. In terms of the settlement agreement, the first
respondent was appointed to
act as receiver and liquidator of his
joint estate with the third respondent. It is immaterial that the
applicant never had sight
of the first respondent’s consent to
act as liquidator and receiver and that the first respondent
indicated that he was never
a party to an application for his
appointment as liquidator and receiver. The applicant was legally
represented when the court
granted an order for divorce. The court
order of 6 February 2020 is binding until it is set aside by a
competent court. Whether
or not the applicant is dissatisfied with
the settlement agreement, he is bound by it until it is set aside.
[25]
In this application the
applicant did not seek relief to set aside the terms of the
settlement agreement and/or rescind the order
dated 6 February 2020.
The order stands until it is set aside. It follows that it must be
complied with.
[26]
The respondents contended
that the first respondent has been cited in a personal capacity and
not in an official capacity as liquidator
and receiver. They asked
the court to dismiss the application on that ground alone.
[27]
It is correct that the
first respondent has not been correctly cited in this application.
However, I find it not proper to dismiss
the application on a
technical ground without venturing into the merits.
The
attack on the first respondent
[28]
The applicant alleges that
he feels aggrieved by the conduct of the first respondent in the
performance of his duties as liquidator
and receiver. He avers that
since his appointment on 6 February 2020, the first respondent only
produced a provisional report dated
21 July 2020. He has failed to
produce a final report.
[29]
In response to the
allegations the respondents contend that the applicant did not
disclose material facts in the application. They
assert that a final
report can only be provided after the estate has been finalised. They
claim that this information was conveyed
to the applicant by their
attorneys on 11 August 2022. They allege that the division of the
joint estate cannot be completed because
of the actions of the
applicant. I will deal with the alleged actions of the applicant
later in the judgment.
[30]
Suffice to mention that
the above allegations have not been dealt with in the replying
affidavit. In my view the respondents have
sufficiently responded to
the allegations made by the applicant. I find that there is merit in
their response in that the final
report can only be completed when
the liquidator and receiver has dealt with all the assets in the
joint estate.
[31]
The applicant further
alleges that in a letter dated 8 July 2022 in response to his
attorney’s request for information relating
to the joint
estate, the first respondent indicated that the third respondent
received the sum of R252 411,27 from her pension
fund
administrators which was paid to her on or about 9 May 2014. The
first respondent further indicated that he requested the
Bank of the
third respondent to provide statements and had not received same at
the time. The applicant further alleges that his
attorney was not
informed as to when the request was made and why it was not made to
the third respondent.
[32]
In response thereof the
respondents clarified the contents of the letter and contended that
the money was paid to the third respondent
six years before the date
of divorce. It is averred that the first respondent requested the
Bank of the third respondent (Capitec)
to provide the bank statements
of the third respondent for that period. The statements had not been
received at the time and the
first respondent advised that he would
report further on receipt of the information that he requested. The
first respondent asserts
that his duties and powers as liquidator and
receiver do not date back to May 2014. It only commenced on the date
of divorce.
[33]
It appears that the
respondents are under the impression that the first respondent is not
supposed to deal with the amount that
the third respondent received
6(six) years prior to her divorce. That cannot be correct. The first
respondent has been appointed
to liquidate the joint estate of the
parties. The money received by the third respondent is part of the
joint estate. The first
respondent was obliged to take it into
account in the liquidation of the joint estate. Because the money was
discovered long after
it was paid to the third respondent, the first
respondent can subtract one half of the amount of what the applicant
would have
received from the share that the third respondent is
entitled to receive from her share of the joint estate. I therefore
disagree
with the respondents on this point. Even if his appointment
as liquidator starts on the date of divorce, he must investigate and
liquidate all the assets that belong to the joint estate.
[34]
The applicant further
alleges that he wrote to the first respondent registering his
frustrations with him which relate amongst others,
to the first
respondent’s refusal to entertain his offer to purchase the
matrimonial home for R500 000,00 and the first
respondent’s
insistence that the house should be sold for R450 000,00.
[35]
In his response, the first
respondent admitted receipt of the letters from the applicant.
However, he denied the truthfulness of
their contents. He asserted
that the offer to purchase the immovable property for the sum of
R500 000,00 never materialised
as the applicant did not qualify
for the relevant financing. He further contended that the offer to
purchase was on the letterhead
of an estate agent which would have
the effect that commission would be earned by the estate agent, and
it would have to be paid
from the joint estate. He regarded that as
an unnecessary expense as his powers as a liquidator and receiver
allows him to sell
the property without commission.
[36]
The respondents contend
that the applicant is the cause of the delay in finalising the
division of the joint estate. They allege
that as far back as 21 July
2020, the applicant informed the first respondent that he was
desirous of purchasing the other half-share
of the immovable property
(the matrimonial home). The first respondent sent the applicant an
offer to purchase the property. The
sale never materialised as the
applicant failed to attend the meeting requested by his previous
attorney on his behalf. They further
allege that the first respondent
also instructed valuators to determine the half-share of the
property. Later the applicant informed
the first respondent that he
was no longer interested in purchasing the immovable property and
conceded that the property ought
to be sold.
[37]
The respondents contend
that from thereon the applicant made it impossible for the first
respondent to perform his duties. He failed
to grant access to any
estate agents and prospective buyers to the property. He also did not
allow agents to enter the property
and/ or take photographs. The
respondents claim that the first respondent cannot therefore perform
his duties and sell the immovable
property because of the conduct of
the applicant.
[38]
They aver that the conduct
of the applicant which frustrated and has been frustrating the first
respondent’s attempts and
making it impossible for him to
perform his duties as liquidator and receiver in order to finalise
the division of the joint estate,
prompted the first respondent to
bring an application under case no. 28013/21 to compel the applicant
to provide him and the relevant
people with access to the matrimonial
home which the applicant still occupies.
[39]
Although the applicant
denies in reply that he did not qualify for finance to purchase the
matrimonial home for R500 000,00,
I do not accept the
explanation by the first respondent that the sale would attract a
commission to be payable to the estate agent.
The estate agent was
only an agent of the applicant. He was not entrusted with determining
the amount for the house nor the liquidation
of the joint estate. The
first respondent should have accepted the offer from the applicant if
it was reasonable.
[40]
Regarding the other
allegations, the applicant in reply denied that he has frustrated the
efforts of the first respondent to perform
his duties and finalise
the division of the joint estate. He contends that he only sought
clarification and assistance from the
first respondent on issues that
concerned the joint estate. I do not find it necessary to deal with
this allegation as it forms
the subject matter of the pending
application. The applicant dealt a lot with the pending application
in his papers. I reiterate
that the application is not before me.
[41]
The applicant further
denies that he received an offer to purchase the matrimonial home
from the first respondent in 2020 and/or
was invited to any meeting
for that purpose. He also denies that he informed the first and/or
second respondents that he was no
longer interested in purchasing the
property.
[42]
The allegation by the
first respondent is supported by the provisional report. At paragraph
5.1 of the report the following has
been stated:
“
Attached find
an offer to purchase for signature and return of the offer to
purchase. Should we not receive the signed offer to
purchase within
14 days of this report, it will be accepted that Mr Setumo is not
proceeding in this regard, and the property will
be placed in the
market to be sold. Should we not receive an offer within a reasonable
time, the property will be placed on auction.
”
[43]
It is common cause between
the parties that the applicant received the provisional report dated
21 July 2020. Although the applicant
denies receiving the offer to
purchase the half-share of the immovable property, it is evident that
the offer was attached to the
report and the terms thereof are clear
that should the first respondent not receive the signed offer to
purchase within 14 days
of the report, it will be accepted that the
applicant is not proceeding to purchase the property and the property
will be placed
in the market to be sold. This explains the reason why
the property has been put on the market. The applicant was afforded
an opportunity
to purchase the half-share in the immovable property
and immediately the first respondent established that he could no
longer be
able to purchase the property, it was put on sale. I find
that the first respondent acted in terms of his powers and duties as
liquidator and there can be no doubt that this is in the best
interest of the joint estate.
[44]
The other disputes by the
applicant of the averments made by the respondents in the answering
affidavit as highlighted above are,
in my view, just bare denials.
[45]
The applicant further
alleges that the third respondent has failed to provide a true and
proper account of all her assets. He claims
that the first respondent
is not interested in dealing with the issue. However, his focus has
always been on him.
[46]
Moreover, the applicant
maintains that the first respondent is biased against him and has not
been cooperative with him and his
attorney.
[47]
I find these allegations
unsubstantiated for the following reasons: there are no allegations
on the papers that the third respondent
had assets which the
applicant knows about and which the third respondent did not
disclose. Furthermore, the applicant does not
state that this a list
of such assets and that he notified the first respondent about them
and the first respondent failed to investigate
the allegations made.
[48]
The applicant further
alleges that he has a well apprehended and reasonable suspicion that
the third respondent has defrauded the
joint estate during the
process of his divorce with her by concealing some of her pension
monies in other bank accounts. He reported
this to the first
respondent. However, the first respondent did not appear interested
in dealing with the matter.
[49]
I have dealt with this
allegation earlier on. It relates to the pension money that the third
respondent received 6(six) years prior
to the divorce.
[50]
The applicant further
avers that he has been making payments towards the bond on the
matrimonial home and other expenses of the
house since 2018 and the
third respondent is not and has not been making payment of her 50% of
the monthly bond instalments. He
referred to the provisional report
of the first respondent, subparagraph 3.1 where it is recorded that
the third respondent has
indicated that she cannot make payment of
50% of her monthly bond instalments. He claims that this puts him in
a disadvantageous
position as the report does not state the reasons
for the third respondent’s inability to make her monthly
payments towards
the bond.
[51]
While the respondents deny
the allegations, they assert that the applicant resides in the
matrimonial property. They attached annexure
“AA3” to
confirm that the applicant is also not making payments towards the
bond and the bond is in arrears. They contend
that this is
prejudicial to the joint estate as the applicant’s actions are
causing harm to the third respondent and him.
[52]
In the replying affidavit
the applicant denies that he does not make payments towards the bond.
He disagrees that annexure “AA3”
confirms that the bond
is in arrears. He contends that annexure “AA3” merely
confirms legal representation on behalf
of Standard Bank on matters
unrelated to the present application.
[53]
Annexure “AA3”
is an email correspondence from Standard Bank Attorneys confirming
that they act on behalf of Standard
Bank because of the monthly bond
instalments being in arrears. There is no indication on the email
that this annexure relates to
a matter unrelated to the current
application. Although the applicant denies that the bond is in
arrears, he has not attached any
document to disprove the allegations
made by the respondents.
[56]
The issue raised by the applicant is neither here nor there. It does
not assist the applicant’s case.
It does not matter if the
third respondent does not pay. The immovable property is part of the
joint estate. The first respondent
must deal with it as such.
Conclusion
[57] In
my view the first respondent did not do enough. He should have
investigated the bank account of the third
respondent. He should have
approached the third respondent for a power of attorney to enable him
to access her bank account(s).
Consequently, the first respondent is
ordered to do so. I therefore do not find any reasons to remove him
as a liquidator and receiver
of the joint estate of the third
respondent and the applicant.
[58] In
the result, the following order is made:
58.1 The application is
dismissed.
58.2 The applicant is
ordered to pay the costs of the application. These costs should not
be paid from the joint estate.
58.3 The third respondent
is ordered to give the first respondent more powers to access her
account(s) from 1 May 2014 to date within
a period of 30(thirty) days
of receipt of this order.
58.4 The first respondent
is ordered to access the account(s) of the third respondent and
investigate what had happened to the pension
money that she received
in May 2014.
M J TEFFO
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
Appearances
For the
applicant
P A Mabilo
Instructed
by
Steven Magoro Attorneys
For the first and second
respondent J Prinsloo
Instructed
by
Tony Clacey Attorneys
Heard
on
14 August 2024
Handed down
on
28 February 205
[1]
Section
165(5) of Act, 108 of 1966 (the Constitution)
[2]
See
Culverwell
v Beira
1992 (4) SA 490
(WLD) at page 494A
[3]
2023
(4) SA 421
(CC)
[4]
Ramakatsa
and others v Magashule and others
(CCT 109/12)
[2012] ZACC 31
;
2013 (2) BCLR 202
CC para 94. See also
Plascon-Evans
Paints (Pty) Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984
(3) SA 623
(A) at 634E-635; Nationa
Director
of Public Prosecutions v Zuma
[2009] ZASCA 1
;
2009 (2) SA 277
(SCA) para 26
[5]
Ramakatsa
and others v Magashule and others supra
para 95
[6]
PMG
Motors Kyalami (Pty) Ltd (in liquidation) v Firstrand Bank Ltd,
Westbank Division
2015
1 All SA 437
(SCA);
2015 (2) SA 634
(SCA)
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