Case Law[2025] ZAGPPHC 413South Africa
Botha N.O and Others v Van Der Merwe N.O and Another (056043/2023) [2025] ZAGPPHC 413 (17 April 2025)
High Court of South Africa (Gauteng Division, Pretoria)
17 April 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Botha N.O and Others v Van Der Merwe N.O and Another (056043/2023) [2025] ZAGPPHC 413 (17 April 2025)
Botha N.O and Others v Van Der Merwe N.O and Another (056043/2023) [2025] ZAGPPHC 413 (17 April 2025)
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sino date 17 April 2025
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###### REPUBLIC OF SOUTH
AFRICA
REPUBLIC OF SOUTH
AFRICA
###### IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
###### GAUTENG DIVISION
PRETORIA
GAUTENG DIVISION
PRETORIA
CASE NO: 056043/2023
(1) REPORTABLE: YES / NO
(2) OF INTEREST TO OTHER
JUDGES: YES/NO
(3) REVISED.
SIGNATURE
DATE
In the matter between
DEON
MARIUS BOTHA N.O.
FIRST APPLICANT
JOCHEN
ECKHOFF N.O.
SECOND APPLICANT
VIMBIAI
ANGELA TSOPOTSA N.O.
THIRD APPLICANT
and
MARIANNE
VAN DER MERWE N.O.
FIRST RESPONDENT
CAREL
ARON VAN DER MERWE N.O. (JNR)
SECOND RESPONDENT
This
Judgment was handed down electronically and by circulation to the
parties’ legal representatives by way of email and
shall be
uploaded on caselines. The date for hand down is deemed to be on 17
April 2025.
JUDGMENT
MALI J
[1]
The applicants seek an interim interdict against further
alienation
of an aeroplane pending the institution of an action to set aside the
sale of an aircraft known as Beechcraft A 36 with
registration mark
ZS-NFC with serial number E[...] (Beechcraft). The application is
brought by the applicants in their official
capacity as Insolvency
practitioners and co-liquidators of the Project Multiply (PM).
Beechcraft was registered in the name
of PM. The respondents
are cited in their capacity as trustees of Ronnie van Der Merwe Trust
(the Trust).
Background
[2]
It is not in dispute that PM together with
Velvetcream 15 (Pty) Ltd (in liquidation) (Velvet), the Merwede Trust
(“Merwede
Trust”), and its sole director at the time,
being Mr. Carel Aron Van Der Merwe (“Van Der Merwe”),
operated
on the same properties, shared
employees and movable assets. Its activities are interrelated and
were further managed as one organization.
PM with Velvet conjointly
operated as a group under the umbrella name of “Merwede
Farming”, as a large-scale sheep
farming enterprise and related
industries covering approximately 75 000 hectares of land. This
group will be referred to as
Merwede group.
[3]
Towards the end of 2020, the Landbank instituted actions
against, Van
Der Merwe personally, the Merwede Trust, Velvetcream and PM. In terms
of latter two entities, formal statutory letters
of demand in terms
of section 345 of Companies Act, 61 of 1973 were later disseminated
to them by Landbank’s attorneys. On
12 October 2022 a final
winding-up order against the respondents in favour of Landbank was
granted. Application for leave
to appeal same was refused.
[4]
On 20 January 2021, both Project Multipy and
Velvetcream were voluntarily placed under business rescue at the
hands of Van Der Merwe.
Van der Merwe was the sole director of PM at
that time. Subsequently, a business rescue plan was prepared, and the
second meeting
of creditors was convened on 8 March 2021. Landbank
voted against the business rescue plan, therefore same was rejected.
[5]
The Beechcraft, being the property of PM was
transferred by PM to the Trust during May 2021. PM was finally
liquidated by the order
of Kimberley High Court on 11 October 2022.
On 12 October 2022, the respondents launched an appeal to the Supreme
Court of Appeals
(SCA) against the order for final liquidation and
extension of powers.
[6]
The applicants also brought an application for a declaratory
that the
application for leave to appeal does not suspend the extension of
powers. On 13 December 2022 my sister Judge Mamosebo
of the Kimberley
High Court granted the order declaring that the extended powers are
not suspended. On 19 December 2022 the respondents
filed Notice in
terms of Section 18 (4) of the Superior Courts Act (s 18 (4)
automatic appeal.
Points in Limine
[7]
The respondents raised two points in
limine
; Lack of authority
to institute legal proceedings and lack of Jurisdiction.
Lack of authority to
institute legal proceedings.
[8]
The respondent’s case is that the confirmatory
affidavits filed
by the second and third respondents are not signed. This defect
challenges the deponent’s statement
that he is authorized by
the two to institute legal proceedings.
[9]
The applicant’s case to the above is that lack
of authority can
only be challenged in terms of Rule 7 of the Uniform Rules of Court.
The respondents have failed to avail themselves
Rule 7, therefore
cannot challenge the unsigned confirmatory affidavits.
[10]
Rule 7 of the Uniform Rules provides
: “Power of
Attorney (1) Subject to the provisions of subrules (2) and (3)
a power of attorney to act need not be filed,
but the authority of
anyone acting on behalf of a party may, within 10 days after it has
come to the notice of a party that such
person is so acting, or with
the leave of the court on good cause shown at any time before
judgment, be disputed, whereafter such
person may no longer act
unless he satisfied the court that he is authorised so to act, and to
enable him to do so the court may
postpone the hearing of the action
or application”.
[11]
It is trite law that the respondents are compelled to utilize Rule
7(1)
as above to challenge the lack of authority. This point in
limine
must fail.
Irregular Notice of
Motion
[12]
The respondents’ complaint in this regard is that in the
heading
of the application in the Kimberely High Court is written “In
the matter between…” instead of “ In the
Ex Parte
application ...”
[13]
Rule 30 of the Uniform Rules of Court provides that “
(1) A
party to a cause in which an irregular step has been taken by any
other party may apply to court to set it aside.”
[14]
It is trite law that Rule 30 applies only to irregularities of form
and
not to matters of substance. In the present case the respondents
decry the form followed by the applicants. This is not the place,
the
respondents failed to raise the irregularity in the proper manner. In
the result, the point in
limine
must fail.
Issue
[15]
Issues for determination are whether the applicants are entitled to
the
interim interdict.
Requirements for
interim interdict
[16]
It is trite that t
he applicant seeking the order
for interim interdict must establish:
(a) that
the right which is the subject-matter of the main application(s) and
which it seeks to protect by
means of interim relief is clear or, if
not clear, is prima facie established, though open to some doubt;
(b) that,
if the right is only
prima facie
established, there
is a well-grounded apprehension of irreparable harm if the interim
relief is not granted, and it ultimately succeeds
in establishing its
right;
(c)
that the balance of convenience favours the granting of interim
relief; and
(d) that
the applicant has no other satisfactory remedy.
[17]
The
oft-quoted passage from
Webster
v Mitchell
[1]
explains
the enquiry as follows:
“
In
the grant of a temporary interdict, apart from prejudice involved,
the first question for the Court…is whether, if interim
protection is given, the applicant could ever obtain the rights he
seeks to protect. Prima facie that has to be shown.
The use
of the phrase “prima facie established though open to some
doubt” indicates…that more is required
than merely to
look at the allegations of the applicant, but something short of a
weighing up of the probabilities of conflicting
versions is
required.”
[18]
The applicants’ argument is that as liquidators they
are not only vested with a clear right in terms of the 1973 Companies
Act, consequent to their appointment, to take into their
possession
and under and their control all assets of the insolvent estate and
to
preserve same
but are furthermore obliged to do so in the
discharge of their statutory duties for the benefit of the
concursus
.
[ own emphasis]
[19]
The argument proffered on behalf of the respondents is that the
applicants
do not have any right to bring this application
whatsoever. This is due to the application in terms of s 18(4), the
extension of
powers of the liquidators are suspended. According to
the applicants the respondents only filed notice in terms of s 18(4),
not
the application. Even if it is so the provisions of
Section 150
(3) of the
Insolvency Act of 1936
provide as follows:
“
When an appeal
has been noted (whether under this section or under any other law),
against a final order of sequestration, the provisions
of this Act
shall nevertheless apply as if no appeal had been noted: Provided
that no property belonging to the sequestrated estate
shall be
realized without the written consent of· the insolvent
concerned.”
[20]
From the above, the respondents’ counter argument is that
applicants
have no clear right and cannot succeed. The applicants
have established a
prima facie
right.
[21]
It was submitted on behalf of the applicants that there is the real
apprehension
that the respondents and conceivably Van Der Merwe, may
well dispose of the Beechcraft to the irreparable prejudice of the
insolvent
estate and its creditors based on the following:
21.1 During the period of
8 January 2021 to 10 May 2022 (therefore during the business rescue
proceedings), subsequent to the commencement
date of PM’s
winding-up and in the midst of ongoing litigation caused to be
slaughtered more than R6.4 million worth of sheep,
the proceeds of
which was spirited away. An additional 7037 head of sheep, over
and above the aforesaid, have been dissipated
and/or spirited away.
21.2 Van Der
Merwe has also alienated a Toyota Landcruiser VX Luxury 4x4 motor
vehicle from his personal estate to
another related Merwede entity,
of which he was similarly the only director of at the time.
21.3 Furthermore,
Van Der Merwe purportedly intimated to the Landbank’s attorney,
a certain Mr De Jager and the Sheriff
of the Court:
“…
Van Der
Merwe could similarly not provide explanation as to this transfer of
ownership other than that the aeroplane was exchanged
for a farm.
This he told the sheriff and Mr de Jager during the attachment of his
assets after the provisional orders were granted…”
21.4
In
converse, Ms Taljaard (purportedly in the context of being a director
of Project Multiply) contended in her replying affidavit
at
paragraphs 35 to 38 (an extract of which is annexed hereto as
annexure “FA20”) that the Beechcraft was ostensibly
sold
and delivered to the Trust in 2018.
[22]
The respondents’ case is that Beechcraft was sold legitimately.
In this regard the respondents attached a handwritten document with
one of the names depicted as van der Merwe on it. This is done
without taking the court into confidence as to who are the parties to
the transaction. In fact, the respondents contradict themselves.
The
version pertaining to the sale of the Beechcraft
contradicts their own version that the transfer was as result
of
set-off relating to the moneys owed by the farm to the Trust.
[23]
Secondly, subsequent
to the disposition of
the Beechcraft the liabilities of PM exceeded its assets and fell to
be set aside in terms of
Section 26
of the
Insolvency Act, which
provides that:
“
26. (1) Every
disposition of property not made for value out value. may be set
aside by the Court if such disposition was made by
an insolvent- (a)
·more than· two years before the sequestration of his
estate, and it is proved that, immediately
after the disposition was
made, the liabilities of the insolvent exceeded his assets;”
[24]
From the above I find that there is a
well-grounded apprehension of irreparable harm if the interim relief
is not granted, and the
applicants have ultimately succeeded in
establishing their right.
[25]
Regarding the balance of convenience based on the
undisputed facts above, it favours the applicants. Furthermore, this
is the liquidation
matter, the liquidators are acting in their
official capacity, and they are supposed to exercise their fiduciary
duties for the
benefit of all the creditors. The applicants have
satisfied the third requirement.
[26]
Pertaining to the absence of another adequate remedy should the
Beechcraft
be further alienated; it would have the effect that same
may well be beyond the liquidators reach and impossible to recover at
a later stage. There are no alternative avenues available to the
liquidators. It is concluded that the applicants have no alternative
remedy.
[27]
I reiterate that the order sought herein is sought pending the
institution
of an action to set aside the sale of the Beechcraft.
Therefore, I have not dealt with whether the Beechcraft was
fraudulently
transferred or alienated as one of the relief’s
sought by the applicants.
[28]
For the foregoing the applicants have established the case for
interim
interdict. The application must succeed.
ORDER
1. The
application is granted with costs at Scale C.
N
P MALI
JUDGE
OF THE HIGH COURT
Appearances:
For the Applicants:
Adv. A A Basson
abasson@group33advocates.com
Instructed by:
J
I Van Niekerk Inc.
kaitlin@vninc.co.za
For the
Respondents: Adv.
G
G Janse van Rensburg
fritzvr11@gmail.com
Instructed by:
Schutte Attorneys
sarina@vnattorneys.net
[1]
Webster
v Mitchell
1948
(1) SA 1186
(W)
at 1189-1190
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