Case Law[2025] ZAGPPHC 737South Africa
Imperial Logistics Advance (Pty) Ltd v Master of the High Court, Pretoria and Others (2023/054694) [2025] ZAGPPHC 737 (24 July 2025)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Imperial Logistics Advance (Pty) Ltd v Master of the High Court, Pretoria and Others (2023/054694) [2025] ZAGPPHC 737 (24 July 2025)
Imperial Logistics Advance (Pty) Ltd v Master of the High Court, Pretoria and Others (2023/054694) [2025] ZAGPPHC 737 (24 July 2025)
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sino date 24 July 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 2023-054694
1.
REPORTABLE: NO
2.
OF INTEREST TO OTHER JUDGES: NO
3.
REVISED: NO
DATE:
24 July 2025
SIGNATURE
OF JUDGE:
In
the matter between:
IMPERIAL
LOGISTICS ADVANCE(PTY) LTD
Applicant
and
THE
MASTER OF THE HIGH COURT, PRETORIA
First
Respondent
REMNANT
WEALTH HOLDINGS (PTY)LTD
(in
Liquidation)
Second
Respondent
SELAHLE
N.O.; KOKETSO LEUWANCE
Third
Respondent
MULLER
N.O.; JOHANNES ZACHARIAS HUMAN
Fourth
Respondent
MATHEBULA
N.O., TIRHANI SITOS DE SITOS
Fifth
Respondent
KHAMMISSA
N.O., SUMAIYA ABDOOL GAFFAR
Sixth
Respondent
FIRSTRAND
BANK LIMITED
Seventh
Respondent
VENTER,
RONALD THOMAS t/a RTG CONSULT
Eighth
Respondent
ABSA
BANK LIMITED
Ninth
Respondent
EBERHARD
BERTLESMANN N.O. (RET. JUSTICE)
Tenth
Respondent
ORDER
1.
Pending the final determination of Part B of this
application:
i.
The
First Respondent’s decision on 4 May 2023 to appoint the
Fourth, Fifth, and/or Sixth Respondents together with the Third
Respondent as liquidators of the Second Respondent is interdicted.
ii.
The
First Respondent’s directive of 26 May 2023, postponing “
until
further notice
”
the
sections 417 and 418 enquiries ordered by this Court under case
number 38634/022 into the affairs of the Second Respondent is
interdicted.
iii.
The
First Respondent’s directive of 31 May 2023, that the said
inquiry is not to proceed until further notice is given, is
suspended.
iv.
The
First and Sixth Respondents are to pay the costs of this Application,
which costs shall include the employment of two counsel
on scale C.
JUDGMENT
FLATELA
J
Introduction
[1]
This is an opposed application for an interim interdict. The
Applicant applies
in Part A of the notice of motion for an order in
the following terms:
2.
Interdicting and restraining the implementation, operation,
actioning, pursuit and or validity of the following acts and/or
decisions of the Respondent
1.
The First Respondent’s decision
on 4 May 2023 to appoint the 4
th
,
5
th
and
or 6
th
respondents
together with the 3
rd
Respondent as liquidators of the second
respondent, which decision is communicated in annexure X hereto.
2.
The First respondent’s directive
/instruction
(i)
of 26 May 2023, postponing “
until
further notice
”
the sections 417
and 418 enquiries ordered by this court under case number 38634/022
into the affairs of the second respondent-which
directive is
contained and communicated in paragraph 5 of Annexure Y hereto; and
(ii)
of 31 May 2023, that the said inquiry is not
to proceed until further notice, which directive /instruction is
contained and communicated
in annexure Z hereto.
[2]
The relief sought in Part A is an
interim relief
pending the determination of Part B of the relief, which effectively
is an application for the review of the above-mentioned
decisions or
directives by the First Respondent.
[3]
For convenience, the Applicant will be referred to as Applicant or
Imperial,
the First Respondent as the Master, the Second Respondent
as Remnant and the Sixth Respondent as Ms Khammissa.
Parties
[4]
The
Applicant is Imperial Logistics (Pty) Ltd, a major unsatisfied
creditor of Remnant Wealth (Pty) Ltd (in Liquidation), the Second
Respondent, as defined under section 346(1)(b)
[1]
of the Companies Act 61 of 1973 (the Companies Act), with a claim
amounting to R80,802,540.29.
[5]
The First Respondent is the Master of the High Court, Pretoria.
The
Second Respondent is Remnant Wealth (Pty) Ltd in Liquidation. The
Third Respondent is Koketso Leuwance Selahle N.O. (Mr Selahle).
The
Third Respondent is one of the provisional liquidators appointed on
22 September 2022 at the commencement of the winding-up
process of
the Second Respondent’s estate. The Fourth, Fifth, and Sixth
Respondents are Johannes Zacharias Human Muller N.O
(Mr Muller),
Tirhani Sitos De Sitos Mathebula N.O (Mr Mathebula), and Sumaiya
Abdool Gafaar Khammissa N.O (Ms Khammissa) (the “co-liquidators’).
The Fourth, Fifth, and Sixth Respondents are all insolvency
practitioners duly appointed by the Master on 4 May 2023 as
additional
co-liquidators with the Third Respondent, Leuwance Selahle
N.O. (Mr Selahle).
[6]
Only the Master and the Sixth Respondent
oppose the application. The Sixth Respondent solely contests the
relief concerning the
suspension of her appointment as a
co-liquidator of the Remnant Assets.
[7]
The Applicant asserts that their right to fair administrative action
has
been violated by the Master's appointment of the Sixth Respondent
as an additional liquidator without providing the Applicant with
an
opportunity to be heard, as they had requested prior to the Sixth
Respondent's appointment as a co-liquidator. The Applicant
also
argues that this action by the Master conflicts with the earlier
resolution to hold a creditors' meeting specifically for
the purpose
of appointing a liquidator.
[8]
The Applicant asserts that the
concursus creditorium
of
Remnant is materially compromised by the Master's unilateral and
seemingly arbitrary decision to appoint additional liquidators.
This
concern is heightened by the fact that the Sixth Respondent and Mr.
Muller present a substantial conflict of interest. As
the largest
creditor of the First Respondent, the Applicant expresses legitimate
concerns regarding the Sixth Respondent's ability
to act in its best
interests.
[9]
The Applicant contends that the Master's decision
to appoint the Fourth, Fifth and Sixth Respondents as co-liquidators
under section
374 of the Companies Act is
ultra
vires.
This argument stems from the
fact that the Master initially instructed Mr Selahle N.O. (the Third
Respondent) to convene a meeting
of creditors for the appointment of
a liquidator under section 377(1) of the Companies Act. The Third
Respondent then published
the notice in the Government Gazette.
However, before the creditors' meeting took place, the Master,
without notice, appointed
the Fourth, Fifth, and Sixth Respondents as
additional liquidators under section 474 of the Companies Act
Historical
Background
[10]
This case represents the latest development in an ongoing legal
dispute between the Applicant
and Imperial Logistics. The parties
have a long history of litigation, which has been extensively
discussed in various judgments
of this Court and the Supreme Court of
Appeal. Although I will refrain from reiterating the details, a brief
historical overview
is warranted.
[11]
The facts are largely a common cause. Prior to its liquidation,
Remnant was a logistics company
controlled by its sole director, Mr
Neluheni. One of the Applicant’s trading divisions, KWS
Logistics (KWS), supplied transport
and logistics services to
Remnant’s client, South 32 SA LTD (South 32), as a
subcontractor. Remnant owes the Applicant an
amount of
R80 802 540.29
plus interest
. Remnant received more than R304 405,111.03
from South 32 for services provided by KWS and has not accounted for
it.
[12]
In an effort to recover its debt, the Applicant
initially sought an anti-dissipation order, which included the
Appellant requesting
the freezing of Remnant’s bank accounts,
access to its bank statements and financial interests, and an
interdict to restrain
Remnant and its director, Mr. Mulinda Neluheni
(Neluheni), from disposing of, encumbering, or dealing with their
property and vehicles
pending the outcome of the proceedings to be
instituted. The anti-dissipation application was to be followed by an
urgent application
for winding up, but the winding-up application was
dismissed by this Court. However, on appeal, the Supreme Court of
Appeal granted
provincial winding-up of the First Respondent, which
this Court confirmed on 14 October 2022.
[13]
On 22 September 2022, the Master appointed
Mr. Muller, Mr Selahle, and the late Mr Cloete Murray as provisional
liquidators. On
4 November 2022, the provisional liquidators brought
an urgent application to the Court seeking leave permission to extend
their
duties and for leave to hold an enquiry in terms of sections
417 and 418 of the Companies Act to investigate the affairs of the
company. Millar J granted the provisional liquidators an order
extending their duties, and Judge Bertelsmann was appointed as the
commissioner of the enquiry.
[14]
The Section 417/418 inquiry commenced on 26
November 2022 and continued with sessions on 16-17 January 2023, 1-2
March 2023, and
8-9 May 2023. After these sessions, the inquiry was
scheduled to resume in June 2023, specifically on the 22nd and 23rd.
However,
the Master issued directives to postpone the inquiry
indefinitely. It is these directives of the Master that necessitated
the launching
of the present application.
First
meeting of creditors
[15]
The first meeting of creditors took place on
7 March 2023. The Applicant, together with FirstRand, Venter, and
Absa, proved claims
totalling R93.6 million, as outlined in annexure
FA 19. The Applicant is a major creditor with a significant claim
amount of R80,802,540.29
plus interest, constituting 88.5% of the
total claims. Mr Caleb Mhlabane, the Assistant Master, presided over
the meeting. Mr Mhlabane
accepted the claims at the first creditors'
meeting.
[16]
The Master also dismissed the claims submitted on
behalf of five Imperial employees concerning unpaid salaries.
Furthermore, the
claims from the Zambian entity, Mpanvu Petroleum,
regarding the amount of R187,000.7 allegedly stemming from a loan
agreement between
Mpanvu Petroleum and Imperial have likewise been
rejected by the presiding officer. The preliminary mention of these
claims is
relevant. They will be examined in greater detail later in
the judgment, emphasising their importance within the broader context
and the conclusions reached in this case.
[17]
The verified creditors unanimously nominated
Mr. Murray for the position of final liquidator of Remnant.
[18]
On 8 March 2022, the day after the initial
creditors' meeting on 7 March 2022, the Master received a formal
complaint from Khammissa
Trust regarding alleged irregularities
reported by Ms. Khammissa, the Sixth Respondent. The correspondence
details specific discrepancies
that allegedly occurred during the
initial creditors' meeting. I find it prudent to repeat the contents
of the letter. It states
as follows:
“
Our
Ref: SAG KHAMMISSA
Your
Ref: T1336/20
Dear
Sirs
INSOLVENT
ESTATE: REMNANT
MASTER
REFERENCE: T1336/20
We
refer to the above matter.
Kindly
note that we shall provide the full transcript of the first meeting
held.
Please
note the irregularities that has taken place:
-Tania
Nordier
allowed the power of attorney to be
added to a claim that was not lodged timeously.
-All
employees' claims were rejected after Mr Cloete placed the incorrect
bank statement before the master. Even if employees were
paid after
liquidation, it is a disposition, and the employees have a claim.
Trust
the master to investigate irregularities.
Yours
faithfully.
Khammissa
Trust”
[19]
Following the meeting, the Master was set to
appoint Mr. Murray and Mr. Selahle as the final liquidators, while
Mr. Muller was released
from his duties. Tragically, on 18 March
2022, Mr. Murray and his son fell victim to a fatal shooting carried
out by unidentified
assailants. This incident created a vacancy in
the liquidator position for Remnant due to Mr. Murray's premature
death, leaving
Mr. Selahle as the sole remaining liquidator.
[20]
On 22 March 2023, the Applicant's attorneys sent
an urgent letter to the Master, requesting an expedited decision
regarding the
vacancy created by Mr. Murray's death. The letter is
detailed, comprising 16 paragraphs and spanning over 10 pages. The
Applicant
also expressed concerns about Mr. Selahle's ability to
manage the winding-up process of Remnant alone. The Applicant
formally asked
the Master to either organise a meeting or instruct
the remaining liquidator, Mr. Selahle, to hold a meeting in
accordance with
section 377(1)(c) of the Companies Act for the
purpose of nominating the liquidator. In the same correspondence, the
Applicant
informed the Master of the information received, indicating
the Master’s intention to appoint the Sixth Respondent as
co-liquidator.
[21]
The Applicant outlined several objections to this
proposed appointment of the Sixth Respondent as a co-liquidator,
citing potential
conflicts of interest, as detailed below:
1.
The Sixth Respondent had previously been nominated
as a business rescue practitioner for Remnant in a latter
application, which
was ultimately withdrawn.
2.
The Master had already appointed the Sixth
Respondent alongside Mr. Muller as liquidators for the Moto-Mac
estate, which is a debtor
within the Remnant estate with liabilities
exceeding R100 million. The Applicant argued that the dual
appointment creates significant
conflict issues, particularly since
Mr. Muller had indicated that this situation presents a potential
conflict of interest.
3.
The Applicant stated that concerns were raised
during the initial creditors' meeting regarding the validity of
certain claims. Some
claims related to false allegations of unpaid
salaries for five Imperial employees, who had been paid, and a
dubious claim from
the fictitious Mpanvu Petroleum for R187,000.72
were also questioned and rejected.
4.
The Applicant stated that deliberate attempts were
made to prevent Mr. Murray's nomination and election as the final
liquidator.
This obstruction was allegedly orchestrated by Mr.
Mendelson, who represented Imperial and other creditors with a
history of pursuing
fraudulent claims, reflecting a clear bias
favouring the Sixth Respondent. The Applicant stated that the
presiding Master, Mr.
Hlabane, was duly informed of these objections
against the Sixth Respondent's appointment.
[22]
Taking these concerns into account, the Applicant
formally requested a hearing with the Master before proceeding with
the appointment
of the Sixth Respondent, should the Master, among
other considerations, decide to appoint the Sixth Respondent. The
Applicant’s
request for a hearing prior to the appointment of
the Sixth Respondent is detailed in paragraphs 12 and 13 of the
letters. In the
relevant sections, the letter states:
12.
Please note that our client, even at this early juncture, vigorously
opposes the nomination and appointment of Sumaiya Abdul
Gafaar
Khammissa as a substitute/replacement liquidator of Remnant. As
indicated above, Miss Khammissa is materially conflicted,
given inter
alia her proposed appointment as a business rescue practitioner of
Remnant within the context of the contrived, but
subsequently
aborted, business rescue application.
13.
Should you nevertheless believe, or deem it appropriate:
13.1
to act and/or to act in terms of the proviso to section 377 (1) and
all in terms of section 377(3) of the Companies Act, 1973.
13.2
To direct the remaining liquidator (Mr. Selahle) to complete the
winding up, and/or
13.3
for any reason, seek to pursue the appointment of Miss Khammissa as
the substitute replacement liquidator.
We
are instructed to insist- on behalf of our client and as we hereby
do- that, prior to you (the master) doing so and within the
context
of that set out in paragraph 9/10/11 and 12 above, you give us
written notice of such intention and, moreover, allow our
client and
as a reasonable opportunity to address you, in writing with such
further and or additional correspondence and reasons
why you should
not do so.”
[23]
The Applicant asked the Master to reply to
its correspondence by 27 March 2023. The Applicant's legal
representatives stated that
their client might take further action
depending on the reply received.
[24]
On 5 May 2023, Assistant Master TL Nortier
formally instructed Mr. Selahle in writing to convene a meeting of
creditors pursuant
to section 377(1). The contents of the letter,
which I find relevant to reiterate here, are as follows:
“
Kindly
take note that the first meeting of creditors was held on 7 March
2023,
Creditors
number 1,3,4,5 voted for C Murray as the final liquidator to be
appointed.
On
the 8
th
of March 2023, I complied with PAJA by informing
JZH Muller that it was my intention to remove him as liquidator, as
he was voted
out of the first meeting of creditors.
Unfortunately,
Mr. C. Murray passed away during this period, and the final
certificate appointing Mr. Murray and Mr. KLC Selahle
as final
liquidators could not be issued.
I
am instructing you, Mr KL Selahle, to convene a creditors' meeting in
terms of section 377(1)(c) of the Companies Act 61 of 1973,
for the
purpose of nominating a liquidator as prescribed in this section (My
emphasis)
Hope
you find the above to be in order.”
[25]
Acting on the Master’s instructions, Mr.
Selahle advertised the meeting in accordance with section 377(1)(c).
The notice of
the meeting was duly published in the Government
Gazette No. 48655 dated 26 May 2023. It read as follows:
T1336/2020–
(In Liquidation) REMNANT WEALTH HOLDINGS (PTY) LTD, 2021/098436/07,
(3) 2023-06-12, 10:00 Master’s Office,
Pretoria (4) Special
Meeting: Nomination of Liquidator in terms of section 377(1)(c) of
the Companies Act 61 of 1973.
[26]
This special meeting to nominate a replacement
liquidator was scheduled for 21 June 2023 at 10:00 at the offices of
the Master in
Pretoria.
[27]
In an unexpected turn, prior to the scheduled
meeting, the Master appointed the Fourth, Fifth, and Sixth
Respondents as joint liquidators
under section 374 of the Companies
Act and issued a certificate to that effect. This certificate bears
an official stamp dated
2023-04-05.
[28]
The Applicant states that they became aware of
this appointment through Mr. Muller's attorneys on 18 May 2023. They
understood that
the Assistant Master had appointed these individuals
as additional co-liquidators in accordance with Section 374 of the
Companies
Act, as detailed in the master’s certificate.
[29]
On 19 May 2023, the Applicant sent an urgent
letter to the Master, raising concerns about the appointment of the
Sixth Respondent
as liquidator and formally objecting to this
decision. The Applicant sought clarification regarding the issuer of
the certificate,
which did not include the official name of the
Master who issued it, and inquired about the reasons for the
respective appointments.
The letter urged the Master to rescind the
nominations and the associated certificate, while also requesting
that Mr. Selahle proceed
with convening the meeting as previously
mandated under section 377(1)(c).
[30]
Ms. Nortier, the Assistant Master, acknowledged
the authorship of the certificate but directed the Applicant to Mrs.
Seopa for further
assistance. The Master did not respond to the
letter, and the Applicant reports that efforts to contact Mrs. Seopa
have been unsuccessful.
Genesis
of the litigation
[31]
The Applicant initially sought urgent interim relief from the court
on 20 June 2023, but
the matter was postponed and only heard by
Holland-Mutter J on 19 July 2023. The Court determined that the
matter did not meet
the threshold of urgency and removed it from the
roll. Consequently, the Applicant re-enrolled the matter in the
normal court roll.
[32]
The Applicant contends that the Master’s
proper assessment of their representations would have suggested
against appointing
the Sixth Respondent, thereby casting doubt on the
Master’s judgment. The Applicant emphasises in paragraph 160
that the
Sixth Respondent did not submit an affidavit affirming her
independence and did not provide the security expected of a
liquidator.
[33]
The Applicant asserts that the appointment of the
Sixth Respondent, which was vigorously advocated for by those who
submitted fraudulent
claims during the first meeting of the
creditors, was ultimately realised through the Master’s
appointment.
The
decision to postpone the enquiry.
[34]
The Applicant contests the Master’s decision
to indefinitely postpone section 417/418 inquiry, claiming it is
irrational,
unlawful,
and prejudicial to creditor rights.
[35]
The Applicant states that since the commencement
of the Winding-Up of Remnant, they have borne costs exceeding R2.4
million. The
Applicant believes that numerous assets related to
Remnant need to be accounted for, justifying a formal inquiry.
However, the
key witnesses, particularly Mr. Neluheni, have not
cooperated and appear to be obstructing the process.
[36]
The Applicant contends that to avoid prescription,
various legal actions must be initiated against the Remnant
post-inquiry. The
Applicant asserts that the Master’s
directives hinder these efforts and may compromise the effectiveness
of the entire 417/418
inquiry.
[37]
The Applicant's assertion is supported by the
report of the Tenth Respondent, Justice Bertelsmann, filed in
response to the Master's
indefinite postponement of the inquiry; the
learned judge reported that:
“
The
inquiry has to date been concluded over eight days spread over six
months. It has been an exceptionally difficult inquiry for
the
creditors and the provisional liquidators because the director of the
insolvent company and his family members and associates
have
consistently attempted to derail or delay the proceedings by adopting
a most uncooperative approach.
New
line witnesses have disobeyed subpoenas on spurious grounds and have
clearly sought to disguise or hide assets that should be
devoted to
the payment of creditors by refusing to disclose the relevant
information or giving misleading evidence.
The
murder of senior liquidator, Mr Cloete Murray, has had the most
negative effect on the proceedings, as some individuals appear
to
believe that the inquiry is doomed to fail and no heed is to be paid
to the proceedings in future.
In
the light of the above, I am of the considered view that any delay in
the conduct of the inquiry would be most invidious and
may seriously
hamper the liquidator's task of finding assets that should be
recovered for the benefit of the creditors. The evidence
received so
far clearly suggests that liquidators may need to litigate to
challenge transactions that have deprived the estate
of millions.
I
would therefore strongly urge that the inquiry be continued as
arranged at this stage. Any further delay will most certainly redound
to the prejudice of creditors
”
.
[38]
The Applicant further states that there is a risk
posed by Mr Neluheni and undisclosed nefarious Remnant stakeholders
who supported
the appointment of the Sixth Respondent as Remnant’s
business rescue practitioner and subsequently as liquidator. This
risk
suggests that there might be someone “in the room” —
so to speak — when such decisions are being debated
and decided
upon.
[39]
The Applicant asserts that while it does not
contest the wide discretion granted to the Master under section 374
of the Companies
Act, it genuinely believes that the Master failed to
exercise this discretion properly and appropriately in this case. The
Applicant
maintains that the appointments of the co-liquidators in
question are fundamentally incompatible with and contradictory to the
earlier directive issued by the Master, which mandated that Mr.
Selahle convene a meeting under section 377 to nominate a replacement
to succeed the liquidator, Mr. Murray.
[40]
The Applicant further argues that the Master did
not adequately address the objections raised regarding the potential
conflict of
interest in the Sixth Respondent’s appointment as a
liquidator. Additionally, the Master failed to give the Applicant an
opportunity to present its case about appointing a replacement
liquidator, despite the Applicant's specific request for a hearing.
Furthermore, the Master did not consult with certain proposed
liquidators on issues of conflict and security requirements before
their appointments. The Applicant contends that the Master's actions
were unilateral and arbitrary, demonstrating failure to act
in
accordance with legal standards and principles of rationality and
fairness.
[41]
The Applicant contends further that it has a
constitutional right to fair and lawful administrative action. It
asserts that the
actions of the Master are fundamentally flawed and
fail to be reviewed on grounds of illegality, irrationality,
procedural unfairness,
and unreasonableness. Additionally, the
Applicant maintains that it possesses, at the very least,
a
prima facie right
to pursue the relief
specified in Part B.
Master’s
submissions
[42]
In his answering affidavit, the Master, relying on
Section 377(1)(c) of the Companies Act, contends that it has
unfettered discretion
to fill the vacant post and that the Applicant
has no business in appointing the liquidators.
[43]
The Master states that he believed the
remaining liquidator, Mr Selahle, could handle the liquidation;
however, he considered the
Applicant’s representations
regarding the appointment of an additional liquidator. Accordingly,
the Master exercised his
discretion under section 374, which
authorises him to appoint liquidators with unfettered discretion at
any time, resulting in
the appointment of the Sixth Respondent.
[44]
It was argued on behalf of the Master and the Sixth Respondent
that the Master cannot
be criticised for responding to the
Applicant’s pressing request for the appointment of a
replacement liquidator.
[45]
Regarding
the postponement of the inquiry, the Master states that on 26 May
2023, he requested key documentation from the Third
Respondent to
assist the liquidators in finalising their report under sections
400
[2]
to 402
[3]
of the Companies Act. The Third Respondent was given 14 days to
comply but had not done so by the time of the hearing. The First
Respondent expressed confusion over the Applicant's insistence on
continuing the inquiry without the necessary documentation, arguing
that postponement would benefit all creditors, especially the
Applicant, once the requested documents are provided.
[46]
Relying
on the judgment of
Ex
Parte Master of the High Court
[4]
,
where Bertellsmaan J made the following declaratory order:
‘
It
is declared that the Master of the High Court of South Africa is the
only official authorised to appoint liquidators and provisional
liquidators of companies and close corporations in liquidation or
provisional liquidators.
No
judge of the High Court of South Africa has authority or jurisdiction
to affect any appointment of any person to any position
referred to
in paragraph one, nor to make any recommendation to the Master in
respect of any appointment to any of these positions.
[47]
The
respondents also relied on the judgments of this Court in
Wessels
NO v The Master of the High Court
[5]
,
as well as the recent judgment of this division in the matter of
V
enter
NO and Others v The Master of the High Court and Others
[6]
.
The First Respondent urged this court to follow the judgment of
Millar J in the
Venter
matter.
[48]
In response to the Master’s failure to consider the Applicant’s
representations
and to give the Applicant an opportunity to be heard,
the Master asserts the following position:
(i)
The demands of the Applicant as pleaded
show a
disturbing appetite to run and control the affairs of the master by
the Applicant and to dictate who the master is to appoint
a
liquidator.
(ii)
Section 374 of the Companies Act confers the
powers to the Master to exercise its discretion rationally and in
accordance with the
law, nothing less and nothing more.
(iii)
The conduct of the Applicant in this matter is
akin to a litigant choosing a judge with respect. It has no business
appointing liquidators.
[49]
On whether the Applicant has fulfilled the
requirements of the interim interdict, the Master submitted that:
(i)
Prima facie right
–
The
Master states that the applicant failed to identify the right that
has been violated as a result of exercising his discretion
in terms
of section 374 of the Companies Act in appointing the court
liquidators
(ii)
Internal
remedies
–
The
Master contends that the applicant has an alternative remedy in terms
of section 371 of the Companies Act.
[7]
Citing the provisions of section 371, the Master submits that
in terms thereof, an aggrieved individual must write to the
Master
requesting the reasons for the refusal of the appointment to the
Minister. The Master asserts it is evident from the Applicant's
founding affidavit that the procedure was not followed. This is an
internal remedy, submits the Master, that is less costly and
highly
effective in addressing any grievances the applicant may have
regarding the appointment of the joint liquidators.
(iii)
The
Master further states that the applicant has an internal remedy under
section 379
[8]
of the Companies
Act, which will afford it substantial redress, through the office of
the Master, if it becomes apparent that the
Sixth Respondent is
failing to perform her duties as per the Companies Act and her
appointment.
[50]
Regarding the objections raised by the Applicant
concerning the appointment of the Sixth Respondent as a co-liquidator
due to a
conflict of interest, the Master asserts that the Sixth
Respondent has no personal stake in Remnant or Moto Mac and he is
satisfied
that there is no conflict of interest.
Sixth
Respondent’s pleaded case.
[51]
The Sixth Respondent asserts that the legal basis on which the
Applicant’s application
is based is incorrect and
unsubstantiated for the following reasons:
1.
The Applicant has no right to be heard prior to the appointment of a
liquidator in terms of section 374. There
is no precedent suggesting
that any creditor or any affected party has a right to make a
presentation to the Master before the
latter exercises their
discretion in terms of section 374 of the Companies Act
2.
The Sixth Respondent claims that the Master has unfettered discretion
to appoint liquidators for Remnant and
Moto-Mac. She states that she
was unaware of her nomination as a business rescue practitioner for
Remnant and did not consent to
it. She also denies being nominated by
creditors who failed to prove their claims.
3.
Relying
on
Knoop
and Another NNO v Gupta (Tayob Intervening)
[9]
The
Sixth
Respondent argues that there is no conflict of interest. The mere
existence of a debtor-creditor relationship between the
entities does
not necessarily indicate a conflict. She also states that she has
committed to resigning as a liquidator if a conflict
of interest
arises.
4.
The Sixth Respondent submits that the Applicant has not proven any
irreparable harm, nor has it demonstrated
that the balance of
convenience will favour it.
5.
The Applicant failed to pursue alternative remedies as provided for
in the Companies Act.
Analysis
[52]
In
De
Wet
and Another v Khammissa and Others
[10]
The
Master appointed the respondents as co-liquidators, having previously
refused to do so. The liquidators, of which the Sixth
Respondent,
along with his co-liquidators, launch a review application aimed at
overturning the Master's decision. The liquidators
contended that the
Master was
functus
officio
,
asserting that the decisions had been made and duly communicated to
the affected parties involved. The court
a
quo
formulated
the determinable as follows:
“…
.The
first is, who can legitimately challenge
an
appointment of a liquidator
?
In this
case, can the applicants challenge the appointment of another
liquidator
?
The second is, what is the correct gateway to relief when there is a
challenge
to the appointment of a liquidator
?
There is limited and conflicting authority on these issues.’
(Emphasis added.)
[53]
After analysing the provisions of the Companies Act and the
Insolvency Act, the court a
quo
held that the Master was
functus officio
and set aside the appointment. The Respondents
appealed the decision. The Supreme Court appeal analysed the
provisions of the Company
and Insolvency Act and held that the
Applicant's challenge should be considered within the framework of
administrative law.
[54]
Makgoka JA, writing for the majority, said:
“
The
respondents’ challenge, properly construed, was not about the
merit of the appointment of the appellants as joint liquidators,
as
the court a quo consistently mentioned in its judgment. It is so that
the decision under review has its genesis in that appointment.
However, the thrust of the respondents’ challenge was that the
Master had become
functus
officio
once
she had made the first decision, and thus had no power to revoke it
and replace it with a second decision”.
[55]
In the following paragraph, the learned judge held that:
“
Viewed
in that light, the application quintessentially concerned
administrative law, as opposed to insolvency or company law”.
[56]
Similarly, in this case, the Applicant's primary challenge is
that the Master’s
decision to appoint the Sixth Respondent was
made after the Master had already issued a directive to the Third
Respondent to call
the meeting of creditors for the purpose of
nominating a replacement for Mr Murray. The notice of the meeting was
published in
the government gazette. The Applicant argues that the
Master's decision was
ultra vires
. Secondly, the Applicant
asserts that Master’s decision to nominate the Sixth Respondent
was made without giving the Applicant
the opportunity to be heard,
despite the Applicant’s prior request to be heard before a
decision was reached. As a
result, in Part B of the
Application, the Applicant seeks to review the decision of the
Master. The issue clearly falls within
the scope of administrative
Law.
[57]
In this respect, the Master adopts the following stance:
(i)
The First Respondent has no legal obligation to
explain to the Applicant in respect of the appointment of
liquidators. Creditors
have no legal standing to dictate and choose
liquidators; the Companies Act and the legal position are clear in
that respect. The
tone of the applicant demonstrates a feeling of
entitlement by the applicant to run the affairs of the master
(ii)
It is the First Respondent's submission that the
Master cannot and is not legally bound to explain and give reasons to
any creditor,
including the Applicant, for the appointment of
liquidators, which decision was made lawfully and rationally”.
[58]
In its supplementary heads of argument, the Master states that “
the
Applicant is bitter that the Master acted in terms of section 374
automatically taking away powers to nominate and appoint the
liquidators from the Applicant, who is hell-bent on taking over the
powers of the Master with this hyperbolically manufactured
interdict”.
[59]
The Master has misunderstood the Applicant’s
case, and their attitude is shockingly inappropriate, to say the
least.
[60]
I now consider whether the Applicant has met the
requirements for an interim interdict and whether the court can grant
the relief
sought.
Requirements
of an interim interdict
[61]
The
requirements for an interim interdict are trite. More than 110 years
ago, Innes JA laid down the requisites of interim interdict
in
Setlogelo
v Setlogelo
[11]
As follows: (a) the applicant must establish a prima
facie right, (b) a well-grounded apprehension of irreparable harm
if
the interim relief is not granted, (c) that the balance of
convenience must favour the granting of an interim interdict; and
(d)
the applicant must the lack of another satisfactory or adequate
remedy.
[62]
The
above legal requisites have been approved in numerous judgments of
our courts since the constitutional dispensation. Recently,
Madlanga
ADCJ, writing for the majority in Eskom
Holdings
SOC Ltd v Vaal River Development Association (Pty) Ltd and
others
[12]
,
held
‘
A
litigant seeking an interim interdict must show: a
prima facie
right
even if it is open to some doubt; a reasonable apprehension of
irreparable and imminent harm to the right if an interdict
is not
granted; that the balance of convenience favours the grant of an
interim interdict; and that the applicant has no other
satisfactory
remedy.’
[13]
Prima
facie right
[63]
The First Respondent says that the Applicant has not asserted
any right as a basis
of their entitlement to the relief sought. I
disagree. From its letter of demand, the Applicant clearly set out
that the right
to be heard, which they assert, is the right to just
and lawful administrative action in terms of Section 33 of the
Constitution.
[64]
In
an application for an interim interdict pending review, the applicant
must establish a right, even though it is open to some
doubt that
they have a prospect of success in the review proceedings. In
Mfolozi
Community Environmental Justice Organisation
[14]
Koen JA, referring to
Webster
v Mitchell
,
[15]
as qualified in
Gool
v Minister of Justice
[16]
Held that:
“
The
test is whether the applicant has furnished proof which, if
uncontradicted at the trial (or the final interdict in part B of
the
notice of motion), would entitle the applicant to final relief. The
proper approach is:
‘
to
take the facts as set out by the applicant, together with any facts
set out by the respondent which the applicant cannot dispute,
and to
consider whether, having regard to the inherent probabilities, the
applicant should on those facts obtain final relief at
the trial.
The facts set forth by the respondent should then be considered.
If serious doubt is thrown upon the case
of the applicant, he could
not succeed in obtaining temporary relief, for his right, prima facie
established, may only be open
to “some doubt”. But if
there is mere contradiction, or unconvincing explanation, the matter
should be left to trial
and the right be protected in the meanwhile,
subject, of course, to the respective prejudice in the grant or
refusal of interim
relief.’
[17]
[65]
It is noteworthy that the Master has not
challenged the factual assertions put forth by the Applicant
regarding its representations
opposing the nomination of the Sixth
Respondent as co-liquidator, citing a conflict of interest. The only
response from the Master
is his conclusion that no conflict of
interest exists; however, he has not adequately addressed the
concerns raised by the Applicants.
[66]
Significantly, in his answering affidavit, the
Master discloses that on 8 March 2022, shortly after the creditors'
meeting held
on 7 March 2022, he received a formal complaint from
Khammissa Trust concerning alleged irregularities reported by the
Sixth Respondent.
Notably, it appears that the Master did not notify
the creditors of the complaint from the Sixth Respondent. Instead,
the Master
has taken the position that the Sixth Respondent has no
interest in the affairs of the Remnant.
[67]
Both the Master and the Sixth Respondent dismissed the Applicant’s
assertions regarding
the Sixth Respondent’s potential conflict
of interest in her role as co-liquidator in these proceedings. The
Sixth Respondent
claimed to be unaware of the events that took place
during the inaugural meeting of creditors. This raises a crucial
question about
whom the Sixth Respondent was representing when she
filed a complaint with the Master concerning alleged irregularities
involving
Mr. Murray.
[68]
The Master’s position is clear that he
is
not legally bound to explain and give reasons to any creditor,
including the Applicant, for the appointment of liquidators, which
decision was made lawfully and rationally.
The position taken
by the Master clearly suggests that there was a failure to adequately
consider the Applicant’s submissions
concerning their right to
be heard.
[69]
In
EFF
v Gordhan
,
[18]
The Constitutional Court said the following:
‘…
Before
a court may grant an interim interdict, it must be satisfied that the
applicant for an interdict has good prospects of success
in the main
review. The claim for review must be based on strong grounds which
are likely to succeed. This requires the court to
adjudicate the
interdict application, examining the grounds of review raised in the
main review application and assessing their
strength. It is only if a
court is convinced that the review is likely to succeed that it may
appropriately grant the interdict.’
[19]
[70]
More
recently, in
Eskom
v Vaal River Residents
,
[20]
Madlanga J, writing for the majority, having analysed the prima facie
right and what would lead to a dismissal of an interim interdict,
said:
‘
If,
in the interim interdict proceedings, it was to appear unlikely that
the intended review would succeed, that would detract from
the
requirement of a
prima
facie
right.’
[21]
[71]
Having considered the facts set out by the Applicant, together with
the facts set out by
the Respondent, I am of the considered view that
the Applicant has established a compelling
prima facie
case.
Reasonable
Apprehension of Harm
[72]
The Applicant has articulated a reasonable apprehension of harm that
should the order not
be granted, expressing concern that substantial
redress may not be achievable under the current circumstances.
It
asserts that if the enquiry does not proceed swiftly with appropriate
actions taken in a timely manner, the chance of recovering
benefits
for Remnant’s creditors will be lost, and both the Applicant
and creditors will suffer irreparable harm. The Applicant
submits
that the Sixth Respondent will not face any inconvenience if the
order is granted.
Balance
of convenience
[73]
The Applicant argues that the balance of
convenience favours both the Applicant and Remnant’s creditors.
Regarding the balance of convenience, I am of the view that
the balance of convenience favours the granting of the application.
Since the Applicant has a strong
prima facie
right, the Sixth
Respondent and the Master would suffer no prejudice if the
status
quo
were retained until the main application is finalised. The
balance of convenience clearly favours the Applicant.
No
alternative remedy
[74]
The Applicant argues that there is no alternative
remedy available, as its letters of demand received no response,
leading it to
seek recourse through the court. Furthermore, the
Applicant claims that pursuing damages claims against the Master
would be of
minimal benefit to Imperial or Remnant’s
c
reditorium
,
given that such claims are inherently unquantifiable and difficult to
assess.
[75]
It was submitted on behalf of the Respondents that the Applicant had
not exhausted internal
remedies; they should have used Section 371 of
the Companies Act. This submission lacks merit. The First Respondent
overlooks the
fact that the Applicant had formally requested reasons
for the decision. In any event, The Master takes the view that he
cannot
and is not legally bound to explain and give reasons to any
creditor, including the Applicant, for the appointment of
liquidators,
which decision was made lawfully and rationally.”
Consequently, it is unnecessary even to explore the contention made
by
the Master that the Applicant ought to have requested reasons for
the appointment to be submitted to the Minister.
[76]
Consequently, the following order is made:
1.
The First Respondent’s decision on 4 May
2023 to appoint the Fourth, Fifth, and/or Sixth Respondents together
with the Third
Respondent as liquidators of the Second Respondent is
interdicted.
2.
The First Respondent’s directive of 26 May
2023, postponing “
until further
notice
”
the sections 417 and 418
enquiries ordered by this Court under case number 38634/022 into the
affairs of the Second Respondent is
interdicted.
3.
The First Respondent’s directive of 31 May
2023, that the said inquiry is not to proceed until further notice is
given, is
suspended pending the determination of Part B of the
relief.
4.
The First and Sixth Respondents are to pay the
costs of this Application, which costs shall include the employment
of two counsel
on scale C.
FLATELA
LULEKA
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
This
Judgment was handed down electronically by circulation to the
parties’ and or parties’ representatives by email
and by
being uploaded to CaseLines. The date and time for the hearing are
deemed to be 10h00 on 24 July 2025
APPEARANCES:
Counsel
for the Applicant:
GW AMM SC
GM
Mamabolo
Instructed
by:
Haffajee Roskam Savage Attorneys
Counsel
for the
First Respondent: Sibara SR
Dube
N
Nkosi
P
Instructed
by:
The State Attorney, Pretoria
Counsel
for the Sixth Respondent: Adv MMW Van Zyl SC
Instructed
by
:
Goodes & Co Attorneys
Date
of the Hearing:
17
October 2024
Date
of the Judgement:
22
July 2025
[1]
346.
Application for winding-up of company
(1)
An application to the Court for the winding-up of a company may,
subject to the provisions of this section, be made –
(a)…….
(b)
by one or more of its creditors (including contingent or prospective
creditors).
[2]
400.
Liquidator’s duty to expose offences and to report thereon
(1)
A liquidator shall examine the affairs and transactions of the
company before its winding-up in order to ascertain -
(a)
whether any of the directors and officers or past directors and
officers of the company have contravened or appear to have
contravened any provision of this Act or have committed or appear to
have committed any other offence; and
(b)
in respect of any of the persons referred to in paragraph (a),
whether there are or appear to be any grounds for an order
by the
Court under section 219 disqualifying a director from office as
such.
(2)
A liquidator shall, before lodging his final account with the
Master, submit to him a report containing full particulars of
any
such contraventions or offences, suspected contraventions or
offences and any such ground
which
he has ascertained.
(3)
(a)
Any report submitted to the Master under subsection (2) shall be
confidential and shall not be available for inspection by
any
person.
(b)
If any such report contains particulars of contraventions or
offences committed or suspected to have been committed or of
any of
the said grounds, the Master shall forthwith transmit a copy thereof
to the Director of Public Prosecutions concerned.
(4)
A liquidator shall conduct such further investigation and shall
render such assistance in connection with any prosecution
or
contemplated prosecution as the Master or the Director of Public
Prosecutions may require.
401.
Director of Public Prosecutions may make application to Court for
disqualification of director
When
a Director of Public Prosecutions, upon receipt of the report
referred to in section 400(3)(b) and after such further enquiry
as
he may deem fit, is satisfied that there are grounds for an
application to the Court for an order in terms of section 219,
he
may make such application to the Court.
[3]
402.
Liquidator’s duty to present report to creditors and
contributories
Except
in the case of a members’ voluntary winding-up, a liquidator
shall, as soon as practicable and, except with the consent
of the
Master, not later than three months after the date of his
appointment, submit to a general meeting of creditors and
contributories of the company concerned a report as to the following
matters:
(a)
the amount of capital issued by the company and the estimated amount
of its assets and liabilities.
(b)
if the company has failed, the causes of the failure.
(c)
whether or not he has submitted or intends to submit to the Master a
report under section 400(2).
(d)
whether or not any director or officer or former director or officer
appears to be personally liable for damages or compensation
to the
company or for any debts or liabilities of the company as provided
in this Act.
(e)
any legal proceedings by or against the company which may have been
pending at the date of the
commencement
of winding-up or which may have been or may be instituted.
(f)
whether or not further enquiry is in his opinion desirable in regard
to any matter relating to the promotion, formation or
failure of the
company or the conduct of its business.
(g)
whether or not the company has kept the accounting records required
by section 284, and, if not, in what respects the requirements
of
that section have not been complied with.
(h)
the progress and prospects of the winding-up; and
(i)
any other matter which he may think fit or in regard to which he may
desire the directions of the creditors or the contributories.
[4]
2011
(5) SA 311.
[5]
Wessels
NO v The Master of the High Court Pretoria and Others (83560/17)
[2018] ZAGPPHC 892
.
[6]
Venter
N.O and Others v Master of The High Court, Pretoria and Others
(27131-2022) [2022]
ZAGPPHC 578 (Venter).
[7]
371.
Remedy of aggrieved persons
—
(1)
Any person aggrieved by the appointment of a liquidator or the
refusal of the Master to accept the nomination
of a liquidator or to
appoint a person nominated as a liquidator, may within a period of
seven days from the date of such appointment
or refusal request the
Master in writing to submit his reasons for such appointment or
refusal to the Minister.
(2)
The Master shall within seven days of the receipt by him of the
request referred to in subsection (1) submit
to the Minister, in
writing, his reasons for such appointment or refusal together with
any relevant documents, information or
objections received by him.
(3)
The Minister may, after consideration of the reasons referred to in
subsection (2) and any representations
made in writing by the person
who made the request referred to in subsection (1) and of all
relevant documents, information or
objections submitted to him or
the Master by any interested person, confirm, uphold or set aside
the appointment or the refusal
by the Master and, in the event of
the refusal by the Master being set aside, direct the Master to
accept the nomination of the
liquidator concerned and to appoint him
as liquidator of the company concerned.
[8]
379.
Removal of liquidator by Master and by the Court
(1)
The Master may remove a liquidator from his office on the ground -
(a)
that he was not qualified for nomination or appointment as
liquidator or that his nomination or appointment was for any other
reason illegal or that he has become disqualified from being
nominated or appointed as a liquidator or has been authorized,
specially or under a general power of attorney, to vote for or on
behalf of a creditor, member or contributory at a meeting of
creditors, members or contributories of the company of which he is
the liquidator and has acted or purported to act under such
special
authority or general power of attorney; or
(b)
that he has failed to perform satisfactorily any duty imposed upon
him by this Act or to comply with a lawful demand of the
Master or a
commissioner appointed by the Court under this Act; or
(c)
that his estate has become insolvent or that he has become mentally
or physically incapable of performing satisfactorily his
duties as
liquidator; or
(d)
that the majority (reckoned in number and in value) of creditors
entitled to vote at a meeting of creditors or, in the case
of a
members’ voluntary winding-up, a majority of the members of
the company, or, in the case of a winding-up of a company
limited by
guarantee, the majority of the contributories, has requested him in
writing to do so; or
(e)
that in his opinion the liquidator is no longer suitable to be the
liquidator of the company concerned.
(2)
The Court may, on application by the Master or any interested
person, remove a liquidator from office if the Master fails
to do so
in any of the circumstances mentioned in subsection (1) or for any
other good cause.
[9]
2021
(3) SA 88
(SCA
).
[10]
De
Wet and Another v Khammissa and Others
(358/2020)
[2021] ZASCA 70
(4 June 2021)
[11]
1914 AD 221.
[12]
2023 (4) SA 325
(CC).
[13]
Ibid para 253.
[14]
Mfolozi
Community Environmental Justice Organisation and Others v Tendele
Coal Mining (Pty) Ltd
and
Others [2023] 3 All SA 768 (KZP).
[15]
Webster
v Mitchell
1948
(1) SA 1186
(W) at 1189.
[16]
Gool
v Minister of Justice and another
1955
(2) SA 682
(C) at 688.
[17]
Ibid
para 43.
[18]
Economic
Freedom Fighters v Gordhan and Others; Public Protector and Another
v Gordhan and Others 2020 (6) SA 325 (CC).
[19]
Ibid para 42.
[20]
Eskom
Holdings SOC Ltd v Vaal River Development Association (Pty) Ltd and
Others 2023 (4) SA 325 (CC).
[21]
Ibid para 272.
sino noindex
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