Case Law[2025] ZAGPPHC 818South Africa
Terblanche NO and Another v S Ngomane Incorporated (054133/2024) [2025] ZAGPPHC 818 (31 July 2025)
High Court of South Africa (Gauteng Division, Pretoria)
31 July 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Terblanche NO and Another v S Ngomane Incorporated (054133/2024) [2025] ZAGPPHC 818 (31 July 2025)
Terblanche NO and Another v S Ngomane Incorporated (054133/2024) [2025] ZAGPPHC 818 (31 July 2025)
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sino date 31 July 2025
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IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
Case
No: 054133/2024
(1) REPORTABLE: YES/
NO
(2)
OF INTEREST TO THE JUDGES: YES/
NO
(3)
REVISED: YES/
NO
DATE:
31 July 2025
SIGNATURE:
In
the matter between:
DANIEL
TERBLANCHE N.O.
FIRST APPLICANT
HILMI
DANIELS N.O.
SECOND APPLICANT
and
S
NGOMANE INCORPORATED
RESPONDENT
Coram:
Groenewald, RJ (AJ)
Heard
on: 28 July 2025
Delivered
:
31 July 2025 - This judgment was handed down electronically by
uploading to Caselines.
JUDGMENT
GROENEWALD
AJ
Introduction:
[1]
This is the return date in a winding-up application, where a
provisional winding-up
order was granted on 28 August 2024. The
application for the winding up of Respondent is brought in terms of
the provisions of
sections 344(f), 344(h) and 346 of the
previous Companies Act, Act 61 of 1973
("the previous
Companies Act") and
section 81(1)(c)(ii)
of the
Companies
Act 71 of 2008
("the 2008
Companies Act"
;).
[2]
The Respondent is not a layperson, being an incorporated company of
attorneys with
its registered address located in Pretoria. The
Respondent's deponent is Mr Simeon Ngomane which describes himself in
the affidavits
as a
'duly admitted attorney practising under the
name and style S Ngomane Attorneys'
.
[3]
The Respondent in the main winding-up application ("the Main
Application")
initially only filed a notice of intention to
oppose, but failed to file an answering affidavit before the
provisional order was
granted. The notice was delivered several
months after the Main Application had been served and long after the
ten days afforded
in the notice of motion had already expired.
[4]
Subsequent to the granting of the provisional winding-up order on 28
August 2024,
the Respondent proceeded to file its answering affidavit
only on 29 November 2024. It is not unimportant that both the notice
of
intention to oppose and the answering affidavits were delivered
mere days before the Main Application and the first return date
was
to be heard.
[5]
There are three applications which this court is called upon to
adjudicate upon, namely:
[5.1]
First
,
the Main Application, wherein the Applicant seeks a final winding-up
order in respect of the Respondent;
[5.2]
Second
,
an application brought in terms of
Rule 30A(2)
, read with
Rules
6(5)(a)
to (e) and
42
(a) and/or the Common Law, which strikes at the
provisional order which was granted on the 28
th
of August
2024. For convenience, this application will be referred to as the
Rescission Application; and
[5.3]
Third
,
an application ostensibly brought in terms of
Rule 30A(2)
, read with
Rule 7(1)
and (4), which relates to the response to a
Rule 7
notice
delivered by the Respondent calling into question the authority and
mandate of Van der Merwe & Associates to act on
behalf of the
Applicants in the Main Application. For convenience, this application
will be referred to as the Rule Application.
[6]
The Main Application is premised upon a common cause cost order ("the
Cost Order")
which was granted against the Respondent (Mr
Ngomane being the First Applicant therein and
de bonis propriis
against the Respondent as the attorney in that case) on 17 November
2022, under case number 34251/21 of this Honourable Court.
Mr Ngomane
was also one of three applicants cited in the Cost Order, albeit
ostensibly
nomine officio
.
[7]
The relevant paragraph of the Cost Order reads as follows:
"The Applicants
and S Ngomane Attorneys are ordered to pay the costs de bonis
propriis
jointly and severally
on the scale as
between attorney and client which costs shall include the wasted cost
of 3 and 17 August 2021."
(Own emphasis applied.)
[8]
The Respondent first sought leave to appeal the Cost Order, which was
dismissed with
costs on 16 February 2023. The order dismissing the
application for leave to appeal provides that:
"The
application for leave to appeal is dismissed with cost, to be paid by
the applicants jointly and severally, the one paying,
the other to be
absolved"
. Leave to appeal was thensought from the Supreme
Court of Appeal.
[9]
On 21 September 2022, the Supreme Court of Appeal dismissed the
application for leave
to appeal with costs on the grounds that
'there
is no reasonable prospect of success in an appeal and that there is
no other compelling reason why an appeal should be heard'.
[10]
The Respondent then approached the Constitutional Court to reconsider
the Cost Order of costs
de bonis propriis
, but, on the 4
th
of September 2023, that application to the apex Court was also
dismissed with cost.
[11]
On 21 November 2023, by agreement between the cost consultants of the
Applicants and Respondent,
the Taxing Master issued an allocatur in
the amount of R200,000.00.
[12]
It is worth mentioning that Van der Merwe & Associates acted as
attorney on behalf of the
Applicants in all of the preceding matters,
including the respective applications for leave to appeal, which are
referred to above.
The Taxed Bill of Costs also refers to 'fees and
disbursements due to Van der Merwe & Associates', and the invoice
by counsel
acting on behalf of the Applicants was directed to Van der
Merwe & Associates. This was never disputed, nor was an objection
raised during taxation to the contention that Van der Merwe &
Associates were the Applicants' attorneys.
[13]
The identity of the parties, the fact that the Respondent conducts
his business within the jurisdictional
area of this Honourable Court
and that the Respondent's registered address is within the
jurisdictional area of this Honourable
Court are not in dispute.
There can be no doubt that this Court is seized with the jurisdiction
to deal with both the interlocutory
and the Main Application.
[14]
It is also not in dispute that the Applicants proceeded to tax their
bill of cost, and the cost
orders granted in favour of the Applicants
are attached to the founding affidavit as annexures "
B
"
to "
E
".
[15]
It is further common cause that the Respondent made a payment of a
portion of the taxed bill
of cost. There is a dispute whether the
Respondent is liable for the payment of the full bill of cost or only
a pro-rata portion
thereof. I shall deal with this issue below.
[16]
It is not unimportant that the Respondent did not present any
contradictory evidence to demonstrate
that the Respondent is not
insolvent or that the Respondent is in a position to make payment of
the claimed amount, if such amount
is in fact due. One would have
expected the Respondent to make a frank disclosure of its financial
position, to provide details
of its assets and of its creditors. This
was not done.
[17]
On 24 November 2023, Van der Merwe & Associates, ostensibly
acting as the Applicant's attorneys,
delivered a letter of demand to
the Respondent to make payment of the taxed bills of costs. On the
5
th
of December 2023, a further e-mail was dispatched,
also by Van der Merwe & Associates, to the Respondent for warning
that if
payment is not made that the Sheriff would be instructed to
execute the writ.
[18]
On 5 December 2023, the Respondent sent a letter to Van der Merwe &
Associates, where the
following was recorded in paragraph 3 thereof:
"We however,
hereby request indulgence to pay the full amount of the taxed bill of
cost before or by the 30 April 2023 (
sic
). The reason for our
request is because we need to raise some funds in order for us to be
able to pay the taxed bill of cost in
this matter''.
[19]
The content of this letter is not unimportant. Not only does it
acknowledge that the Respondent
accepted liability for the full
amount of the taxed bill of cost, but also insofar as there was no
challenge to of the authority
of Van der Merwe & Associates to
act on behalf of the Applicants.
[20]
The Sheriff proceeded to execute a writ of execution against the
Respondent, and the return reflects
that the Respondent only had
assets sufficient to cover approximately R12 000 of the debt.
[21]
On 8 August 2024, the Respondent sent a letter to Van der Merwe &
Associates, not denying
the indebtedness nor disputing Van der Merwe
& Associates' mandate, but stating the following:
"Kindly take note
that the fact that we do not answer each and every letter you
addressed to us, that does not mean ignoring
you. (
sic
) The
fact of the matter is that it's a well-known fact that the owed
amount needs to be paid and by then we are not in a position
to
settle that account. However, the day we get something we shall for
sure pay."
[22]
Ultimately, the Respondent paid R66 070 of the total Taxed Bill of
R200 000.00. The Respondent
contends that this is the amount for
which it was liable for. How it arrives at this amount, which is
slightly less than a third
(R66 666.67) of the R200 000.00, is not
properly explained in the Answering Affidavit.
[23]
On 16 May 2025, the present winding-up application was launched and
subsequently served upon
the Respondent.
[24]
On 15 August 2025, the Applicant filed a supplementary affidavit
which was uploaded to Case Lines
in apparent anticipation of the date
for which the winding-up application was set down to be heard. The
content of the supplementary
affidavit expands further on the facts
relied upon in the founding affidavit. The supplementary affidavit is
a short document consisting
of some 11 numbered paragraphs.
[25]
On 15 August 2024, the Applicants, under circumstances where the time
period afforded by the
Rules to deliver a notice of intention to
oppose had already expired and where, to that date, no opposition was
noted, delivered
a short supplementary affidavit.
[26]
Only on the 22
nd
of August 2024, approximately 3 months
after the issue of the liquidation application, the Respondent
delivered its notice of intention
to oppose. In other words, some
seven calendar days after the supplementary affidavit was uploaded to
Caselines. Albeit that the
Respondent complained that the Respondent
was belatedly invited to the Caselines file by the Applicant, it is
clear that the Respondent
did have access to the case file before the
matter was heard on the 28
th
of August 2024 by the
Honourable Justice Francis-Subbiah.
[27]
Albeit that the Respondent's counsel in argument continued to deny
that the Respondent had access
to Caselines before the granting of
the provisional order, the objective facts demonstrate the contrary.
Not only is this fact
stated under oath by a member of the
Applicants' attorneys, but the audit trail on Caselines (a screenshot
of which is inserted
below) demonstrates the date when the attorney,
Mr Ngomane, was granted access to the Caselines File:
Mr
Simeon Ngomane Invited Attorney
26 August, 2024 Miss Kim Marx Master
Bundle
14:24SAST
[28]
There is therefore no merit in the denial that the Respondent did not
have access to the Caselines
file. It must be kept in mind that the
Respondent only belatedly delivered its notice of intention to oppose
the application on
22 August 2024. The Respondent was invited to
Caselines only four days later, on the 26
th
of August
2024. The Applicants cannot be blamed if the Respondent may have
delayed accessing the Caselines folder.
[29]
The Respondent did not attend court on the 28
th
of August
2024, nor did it seek confirmation from the Applicants that the
matter would not proceed on that date. On that date,
the following
order was granted:
"1.
The Applicants are granted leave to file their supplementary
affidavit dated 14 August
2024 and it is admitted into evidence.
2.
The Respondent is provisionally wound up and placed in the hands of
the Master
of High Court.
3.
A Rule nisi is issued calling upon all persons who have a legitimate
interest
to put forth their reasons why this court should not order
the final winding-up of the Respondent on 25 October 2024 at 10h00.
4.
This order must forthwith be served upon:
4.1
The Respondent's registered address.
4.2
The South African Revenue Service.
4.3
The Master of the High Court, Pretoria.
4.4
The Respondent's employees, if any.
4.5
The Respondent's employees' trade unions, if any.
5.
Costs are costs in the administration of the estate on a party and
party scale."
[30]
Only on 16 October 2024, the Respondent proceeded to deliver a notice
in terms of Uniform Rule
7(1). The main application had been served
on the Respondent on 26 May 2024. In other words, the Rule 7(1)
notice was delivered
five months
after receipt of the
winding-up application.
[31]
On 23 October 2024, a response was delivered to the Rule 7(1) notice,
which forms part of the
subject matter of one of the two
interlocutory applications which are referred to herein.
[32]
The Respondent proceeded to deliver its answering affidavit in the
winding up application
and dealt therein with both the founding
and the supplementary affidavits delivered by the Applicants.
Sequence
of dealing with the applications:
[33]
Mindful of the three applications that are to be decided, it is
prudent to first deal with the
Rule 7 application. The result thereof
will directly impact both the Rescission Application and the Main
Application. It must follow
that if the Rule 7 Application is
successful, the Main Application cannot proceed.
[34]
If the Rule 7 Application is not successful, the Rescission
Application is next in sequence,
as the status of the supplementary
affidavit and potentially of the provisional order may be affected by
the outcome of that application.
And lastly, if the Rule 7
Application is not successful, the Main Application is to be dealt
within the ambit of the result of
the Rescission Application.
[35]
At the onset of the argument, the proposed sequence of dealing with
the applications was debated
with counsel. Both counsel agreed that
all three applications would be argued at the same time, but subject
to the qualification
that if the Rule 7 Application succeeds, that it
would, of course, impact whether the Main Application could be
decided or not.
[36]
For purposes of convenience, the parties will be referred to as in
the Main Application.
[37]
Whilst the Respondent's counsel initially filed short heads of
argument, heads of argument in
respect of both the Rule 7 Application
and the Rescission Application were only uploaded to Caselines some
29 minutes before the
matter was to be heard. The heads of argument
were not served on the Applicants' attorneys.
[38]
I asked Mr Shakoane SC whether he had informed his opponent, Mr
Lotter, of the further heads
of argument, to which he answered in the
negative. Mr Lotter was not aware of the further heads of argument,
and hard copies were
only, following my request, provided to Mr
Lotter. The Respondent also did not participate in the compiling of
the joint practice
note as required by the relevant directives of
this Court. The way in which this was dealt with is unfortunate, to
say the least.
[39]
It is now prudent to deal with the Rule 7 Application first:
The
Rule 7 Application:
[40]
On 16 October 2024, the Respondent proceeded to deliver a notice in
terms of Uniform Rule 7(1).
The main application had been served on
the Respondent on 26 May 2024. In other words, the Rule 7(1) notice
was delivered
five months
after receipt of the winding-up
application.
[41]
On 23 October 2024, the Applicants delivered their response to the
Rule 7(1) in the form of a
document styled as
"Confirmation
of authority a mandate to act, signed by the Second Applicant, who is
the joint liquidator"
, recording and confirming that:
"1. VAN DER
MERWE & ASSOCIATES ING (represented by Gert Van der Merwe) is
authorised and mandate to represent the
Applicants under case number
054133/2024.
2.
VAN DER MERWE & ASSOCIATES ING (represented by Gert Van der
Merwe) was duly
authorised and mandated to represent the Applicants
in the proceedings in which the cost orders were granted against the
Respondent,
specifically and including case number 34251/21.
3.
VAN DER MERWE & ASSOCIATES ING (represented by Gert Van der
Merwe) are instructed
to represent the Applicants in all matters
necessary to protect their interest and execute any orders obtained
against the Respondent
or any of its directors".
[42]
It is not unimportant that the response was delivered where Van Der
Merwe & Associates had,
in all of the preceding litigation and
subsequent applications for leave to appeal, represented the
Applicants. They had also represented
the Applicant in the process of
taxing the bills of costs, and they represented the Applicants in the
correspondence relating to
the costs issue. Even the invoice from the
counsel who had previously acted for the Applicants and formed an
annexure to the Taxed
Bill of Costs was addressed to Van der Merwe &
Associates as the instructing attorney. Until the Rule 7(1) notice
was delivered
Van der Merwe & Associates' authority to act was
never disputed by the Respondent.
[43]
Dissatisfied with the response to its Rule 7(1) notice, the
Respondent launched an application
ostensibly in terms of Rule
30A(2), read with Rule 7(1) and (4) - this is the Rule 7 Application.
The Rule 7 Application was delivered
on 8 November 2024.
[44]
In that application, which is found in section 19 on Case Lines, the
Respondent, inter alia,
seeks an order declaring that the Applicants
in the Main Application failed to satisfy the court that Mr Gert Van
der Merwe and
the firm, Van der Merwe & Associates are properly
authorised and mandated to institute the application proceedings for
the
liquidation of S Ngomane Incorporated or to act on behalf of the
Applicants in the Main Proceedings. Ancillary relief includes a
declarator that Mr Van der Merwe and the firm, Van der Merwe &
Associates, may not act on behalf of the Applicants (in the
Main
Application) in the liquidation proceedings, that the institution of
the liquidation application be declared unauthorised,
invalid and set
aside as well as a of alternative relief in respect thereof.
[45]
Uniform Rule 7(1) provides as follows:
"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."
[46]
The underlying purpose of Rule 7(1) is, on the one hand, to avoid
cluttering the pleadings unnecessarily
with resolutions and powers of
attorneys whilst on the other hand, it provides a safeguard to
prevent a cited person from repudiating
the process and denying his
or her authority in respect of issuing the process. There is no doubt
that Rule 7(1) also applies in
both action and application
proceedings.
[47]
Rule 7(1) makes it clear that, subject to sub-rules (2) and (3)
[which deal with appeals], it
is not necessary to file a power of
attorney, but the authority to act may be challenged within the
context of the rule.
[48]
The Applicants made much thereof that during the preceding
litigation, the Respondent never raised
the authority of Van der
Merwe & Associates as a bone of contention. In fact, the
Respondent engaged in correspondence even
post the cost order with
Van der Merwe & Associates and sought an indulgence in respect of
an extension to make payment without
uttering a word in respect of
Van der Merwe & Associates' authority to represent the
Applicants. This is a relevant factor,
but is by no means decisive.
[49]
Arguably, the delivery of the Rule 7 notice could have been triggered
by the anomaly which occurred
when Van der Merwe & Associates
initially launched an application for the winding-up of the
Respondent in its own name. It
is correctly pointed out in the
papers, and it does not appear to be in issue, that the cost orders
were granted in favour of the
Applicants and not in favour of Van der
Merwe & Associates. This apparent error was corrected (as Mr
Lotter put it) when that
first application was withdrawn, and the
costs were tendered in respect thereof.
[50]
In considering the matter, regard is not only taken of the
surrounding facts but also specifically
in respect of the response
delivered to the Rule 7(1) notice.
[51]
The Applicants directly raised the delay in the delivery of the Rule
7(1) notice. It is so that
the delay in the delivery of the Rule 7(1)
notice is not explained in the Rule 7 Application. The Rule was
considered by Collis
J in
Kaap-Vaal Trust (Pty) Ltd v Speedy
Brick & Sand CC (23143/2020) [2021] ZAGPPHC 668 (18 October 2021)
where the Court dealt with a delay of 37 days (not five months as is
the case here) in the delivery of the Rule 7(1) notice required
an
application for condonation. The applicant in
Kaap-Vaal Trust
neither explained nor requested leave from the Court to dispute the
authority of the attorneys outside of the 10-day period. The
Court
held that where a litigant fails to adhere to any time limit provided
for in any rule of court, Rule 27(3) specifically permits
such
litigant to seek condonation for its non-compliance. In that case,
the Court dismissed the application on the basis that the
applicant
therein couldn't be granted relief on the merits in circumstances
where it, by itself, was in flagrant disregard of the
rules of court.
[52]
In answer to the Applicants' reliance on
Kaap-Vaal Trust
the Respondent referred to
Masithela N.O. and Others v Master
of the High Court Pretoria and Others (60899/2021) [2024] ZAGPPHC 287
(19 March 2024),
but this case is clearly distinguishable as
(recorded in par 39.7 of that judgment) in that case
"...no
objection was taken by the Applicants that the Rule 7 challenge was
out of time. In the Answering Affidavit filed on
behalf of the
Applicants in opposition to the Rule 30A(2) application no point,
whether in limine or at all, was taken in respect
of the late
challenge in terms of Rule 7."
The first time that this was
raised was at the hearing of the Rule 30A(2) application, when senior
counsel appearing on behalf of
the Applicants, in passing, made
mention that the Rule 7 challenge was filed at a very late stage. No
specific challenge was made
to argue that, as a consequence of the
late challenge, the Rule 7 Notice was defective or void. Therefore,
the delay point was
not properly advanced on the papers, and on that
basis, the point could not be entertained.
[53]
It follows that each matter must be decided on its own merits. In the
present matter, the delay
point was pertinently raised both in the
Answering Affidavit [the point was taken
in limine
in a
distinct rubric under the heading
"Point in limine:
non-compliance with the prescribed time frame in Uniform Rule 7''
]
to the Rule 7 Application and extensively in the Applicants' heads of
argument. The Respondent's long delay was inordinate, and
there is no
proper explanation for that delay. It follows that
Kaap-Vaal
Trust supra
decision finds application, which is in itself
dispositive of the Rule 7 Application.
[54]
Even if I am wrong that the
Kaap-Vaal Trust
case
applies, the Rule 7 Application also cannot succeed on the merits
thereof. Ultimately, the sub rule provides that where
authority
has been challenged, the requirement is that the person concerned
shall satisfy the court that he is
"authorised so to act".
[55]
It is trite that this person concerned may do so by adducing any
acceptable form of proof and
not necessarily by the filing of a
written power of attorney. In
Administrator, Transvaal v
Mponyane and Others
1990 (4) SA 407
(W) at 409
it was held
that:
"In my view there
is nothing in Rule 7 in its present form that requires the
authorisation of an attorney to be embodied in
a document styled a
power of attorney. The provisions of Rule 7 specifically requiring
powers of attorney in appeals fortifies
the impression that otherwise
an attorney's mandate can be proved otherwise than by the production
of a written power of attorney.
I also think that Rule 7 should be
viewed against the background of its original form.
...I have no doubt
that the underlying intention of the recent amendment of Rule 7 was
to make the Rule less cumbersome and formalistic.
I therefore
conclude that proof of the authority of the respondents' attorney is
not dependent on the production of a written power
of attorney."
[56]
The sub-rule requires that the court must be satisfied that authority
exists at the time when
proof of it is proffered: there is nothing in
the Rule which suggests that the court is required to investigate the
validity of
past acts in the context of authority to act.
[1]
Mr Daniels, the Second Applicant, signed the confirmation of
authority and did so in his capacity as joint liquidator. The
confirmation
of authority is harmonious with the past conduct of Van
der Merwe & Associates acting as the Applicants' attorneys.
[57]
Having also independently considered the Rule 7 Application upon its
own merits, the court concludes
that Van der Merwe & Associates
is properly authorised to represent the Applicants in these
proceedings and on this further
basis, also the Rule 7 Application
stands to be dismissed.
[58]
It follows that the Rule 7 Application stands to be dismissed with
costs of counsel on Scale
B.
The
Rescission Application:
[59]
As the Rule 7 Application has been disposed of, the next application
which is to be dealt with
is the Rescission Application.
[60]
As part of the provisional order which was granted by the Honourable
Justice Francis-Subbiah
on the 28
th
of August 2024, she
also proceeded to grant leave for the inclusion of the supplementary
affidavit into evidence. The fact that
the provisional order
pertinently deals with leave to file the supplementary affidavit
demonstrates that the Learned Judge had
applied her mind to the issue
of allowing the evidence contained in the supplementary affidavit and
held that it should be allowed.
This is not a further set of
affidavits as provided for by Rule 6, as it was delivered before the
answering affidavit. It is also
not correct to state that the
Applicants did not make out their case in the Founding Affidavit. The
supplementary affidavit is
harmonious with the case made in the
Founding Affidavit and seeks to present further relevant facts.
[61]
The Respondent takes issue with the provisional order and with the
supplementary affidavit and
contends that it was not served upon the
Respondent prior to the granting of the provisional order.
[62]
It is not disputed that at the time when the supplementary affidavit
had been uploaded, the time
period afforded by the Rule to deliver a
notice of intention to oppose the Main Application had long since
lapsed and the Respondent
only belatedly filed that notice after the
supplementary affidavit had already been uploaded to Caselines; and
[63]
It is also so that the Respondent was in fact already invited to the
Case Lines file before the
date upon which the provisional order was
granted. The Respondent did not appear when the Main Application was
heard, nor did it
address correspondence to the Applicants' seeking a
postponement of the matter or arranging for time periods to deliver
an answering
affidavit.
[64]
The Rescission Application is brought in terms of Rule 30A(2) read
with Rule 6(5)(a)(2)(e) and
42(a) and/or the Common Law. The notice
of motion includes both declaratory relief in respect of the status
of the supplementary
affidavit as well as prayers directed at the
recission and/or setting aside thereof.
[65]
Insofar as declaratory relief is sought in respect of the status of
the supplementary affidavit,
it must be kept in mind that the
introduction thereof and the status thereof are already the subject
matter of the provisional
order. That court granted leave for the
admission of that supplementary affidavit, and it is not for this
court to make declaratory
orders contrary to the order which has
already been granted. The exception would be in the case where the
initial order was a nullity.
[2]
This is not such a case. The mere fact that the Respondent did not
appear at court and that the provisional order was granted in
his
absence does not render the provisional order a nullity.
[66]
The following relevant factors are to be considered:
[66.1] The
Respondent failed to timeously file a notice of intention to oppose.
Therefore, at the stage when the supplementary
affidavit was
uploaded, there was no indication that the Respondent intended to
oppose the application;
[66.2] The Respondent was
granted access to the Case Lines file within four days following
receipt of its notice of intention to
oppose, which only came to
light on the 22
nd
of August 2024. In this regard, the
Respondent is not a lay person and would most certainly not have been
ignorant of the implications
of belatedly filing the notice of
intention to oppose;
[66.3] Upon consideration
of the founding affidavit, there is no doubt that even in the absence
of the supplementary affidavit,
the provisional order would have been
granted. Even if the contents of the supplementary affidavit are
disregarded, it is clear
that the provisional order would still have
been granted;
[66.4] In its answering
affidavit, the Respondent, mindful that only a provisional order had
been granted, has had the opportunity
to address the contents of both
the founding and the supplementary affidavit. The complaint of
prejudice is therefore more perceived
than real;
[66.5] The provisional
order was granted on 28 August 2024, but the Rescission Application
was only launched more than two months
later in early December 2024.
There is no explanation for this delay; and
[66.6] In addition,
mindful that the Respondent seeks the recission of a provisional
winding-up order, it appears that it has failed
to give notice of its
application to interested parties.
[3]
Mr Shakoane SC was asked if notice was given to the Master, SARS or
creditors, and he answered in the negative. It is also not
stated in
the Rescission Application whether provisional liquidators have been
appointed, and there is no indication that notice
was given to any
interested parties. The Respondent is silent about its creditors. It
seems rather ironic that the Respondent complains
about an order
granted in its absence, yet fails to disclose whether there are other
interested parties and does not give notice
to those parties of the
Rescission Application, which may, in turn, also affect those
parties.
[67]
There is something to be said about the delay in the delivery of the
answering affidavit to the
Rescission Application. The Applicants'
attorneys provide a rather thin explanation for this delay, which Mr
Shakoane SC, with
good reason, criticised. That being said, the
Respondent also delayed: its delivered its notice to oppose months
after the time
period provided for; the provisional order was granted
on 28 August 2024, yet the Rescission Application was launched only
in December
2024. Even the heads of argument in the Rescission
Application and the Rule 7 Applications were only uploaded less than
30 minutes
before this application was to be heard.
[68]
Ultimately, both parties delayed in respect of the delivery of
notices, affidavits and in respect
of compliance with both the Rules
of Court and the practice directives of this Court. It appears in the
interest of justice to
allow the respective affidavits.
[69]
Under the circumstances, the Rescission Application also stands to be
dismissed, with costs,
including costs of counsel on Scale B.
The
Main Application:
[70]
In the Main Application, the Respondent raises several technical
defences:
[71]
Firstly, it launches an attack on the Deponent's locus standi to
represent the Applicants. The
Respondent contends that the Applicants
do not have
locus standi
to pursue this application because it
contends that Van der Merwe & Associates are not mandated to act
on the Applicants' behalf.
Essentially, this argument overlaps with
the Rule 7 application, and the finding on that application disposes
of this point. The
Applicants'
locus standi
is linked to the
indebtedness allegedly owed by the Respondent. If the Applicants
establish that they are creditors within the
ambit of the remaining
provisions of the previous
Companies Act, then
they have, in their
capacity as creditors, locus standi to bring this application.
[72]
Secondly, the Respondent raises a material non-joinder point
contending that the other parties
to the cost orders should have been
joined as parties to the present proceedings. This point overlaps
with the defence in respect
of the merits, which basically boils down
to a main point that the cost order should be interpreted as meaning
that each of the
parties ordered to pay the costs in the Cost Order
must pay a pro rata portion of the taxed costs. The Respondent
contends that
paragraph 2 of the Cost Order provides that the
Respondents must pay the costs “
jointly and severally'
”
which the Respondent advances should be interpreted as having to be
shared
"equally''
between all of the Respondents.
[73]
There is no basis upon which to contend that the other Respondents in
the Cost Order should be
joined to this application. The issue at
hand relates to the winding-up or not of the Respondent and not in
respect of the status
of the other parties to those proceedings. The
findings made herein have bearing upon the Respondent's position and
therefore,
the other parties, which the Respondent contends should
have been joined, do not have the necessary material interest to
justify
the necessity to be joined by the Applicants. Ultimately, the
central question on the merits is whether the Respondent should be
wound-up or not. That is not an issue which would affect the parties
which the Respondent contends should have been joined. The
point is
therefore untenable.
[74]
Thirdly, the Respondent attacks the jurisdiction of this court to
hear the application, but premises
that attack upon a purported lack
of locus standi and a material non-joinder. Both of these points
stand to be rejected. In the
first paragraph of the answering
affidavit, the Deponent pertinently alleges that the Respondent's
offices are situated at Suite
1[…], 1
st
Floor, 2[…]
C[…] T[…] Building, Pretorius Street,
Pretoria
,
Gauteng Province. Therefore, the attack on jurisdiction cannot
succeed.
[75]
Fourthly, the Respondent contends that there are material disputes of
fact which make the adjudication
of this matter upon application
impossible and contends that a referral to trial or
viva voce
should be ordered.
[76]
Based on the findings below, I conclude that there are no material
disputes of fact which preclude
this matter from proceeding on
motion.
[77]
This leaves the defence on the merits. The Respondent contends that
the correct interpretation
of the Cost Order would be that the
Respondent was only responsible for its pro-rata share of the R200
000-00 cost order, which
would amount to an amount of R66 070-00. In
essence, the Respondent contends that it has paid what is due by it.
How the Respondent
arrives at the amount of R66 070-00 is not
properly explained.
[78]
The Respondent's contention that the Applicants have not proven that
they actually incurred the
agreed Taxed Amount is also without merit.
It is a defence which should have been raised at taxation. The fact
that the Respondent
agreed to the amount puts an end to the issue.
[79]
As a general principle in our Common Law, even co-debtors cannot be
liable for more than their
pro-rata
share, save where there is
evidence of an intention to create a joint debt. For this reason and
for many years, as is demonstrated
for example in the decision of
Roelou Barry (Edms) Bpk v Bosch en 'n ander
1967 (1) SA 54
(C)
at 59C
, the general proposition has been that where the court
intended parties to be liable
in solidum
the Court would
includes words such as or similar to
'Jointly and several'
.
[80]
Ultimately, a consideration of the Order must occur. As Nicholas AJA
pointed out in
Administrator, Cape and Another v Ntshwaqela and
Others
1990 (1) SA 705
(A) at 715F- I
:
"[Trollip JA]
said (at 304D - H) that the basic principles applicable to the
construction of documents also apply to the construction
of a court's
judgment or order: the court's intention is to be ascertained
primarily from the language of the judgment or order
as construed
according to the usual well-known rules. As in the case of any
document, the judgment or order and the court's reasons
for giving it
must be read as a whole in order to ascertain its intention. If on
such a reading, the meaning of the judgment or
order is clear and
unambiguous, no extrinsic fact or evidence is admissible to
contradict, vary, qualify, or supplement it. Indeed,
in such a case
not even the court that gave the judgment or order can be asked to
state what its subjective intention was in giving
it. But if any
uncertainty in meaning does emerge, the extrinsic circumstances
surrounding or leading up to the court's granting
the judgment or
order may be investigated and regarded in order to clarify it. "
[81]
In
Elan Boulevard (Pty) Ltd v Fnyn Investments (Pty) Ltd And
Others
2019 (3) SA 441
(SCA)
the Court held at par 16
referred with approval Administrator, Cape and Another supra and
added that:
"...A part of the
'usual welI-known rules' of interpretation, according to Olivier JA,
is -
'dat mens jou nie moet
blind staar teen die swart-op-wit woorde nie, maar probeer vasstel
wat die bedoeling en implikasie is van
dit wat gese is. Dit is juis
in hierdie proses waartydens die samehang en omringende omstandighede
relevant is."'
[82]
The Respondent's interpretation only selectively focuses on the word
"jointly"
and ignores the inclusion of the word
"severally''
. This approach cannot be correct. The
inclusion of the word
"severally",
especially
combined with
"jointly''
demonstrates the intention that
more is meant than a
pro rata
liability. The Court's choice of
words in the Cost Order was calculated and should be given effect to.
[83]
From consideration of the Cost Order, it is abundantly clear that
what was intended by the Honourable
Acting Judge was that the parties
ordered to pay the cost must do so jointly
and
severally. Therefore, the Applicants would be quite entitled to
enforce their cost order against any one of the parties against
whom
the cost order was granted, either against them all jointly or
against one. In this case, the Applicant has, as it is entitled
to
do, elected to enforce its cost order against the Respondent.
Obviously, should the Respondent pay the full cost order, it would
in
turn be entitled to reclaim the
pro-rata
share from the other
parties against whom the Cost Order was granted.
[84]
This being so, it must follow that the Respondent's contention in
regard to the interpretation
of the Cost Order is untenable and
stands to be rejected. The Respondent is grasping at straws to avoid
the inevitable.
[85]
On the Respondent's version, it has not even paid a full third of the
taxed bill of costs. It
has failed to demonstrate that it is able to
make payment; in fact, based on the Respondent's own correspondence,
it is clear that
the contrary is true and that the Respondent is
unable to make payment.
[86]
Insofar as the Respondent has contended that this Court should
exercise its narrow discretion
in its favour, the following was
stated in
Afgri Operations Ltd v Hamba Fleet (Pty) Ltd
2022 (1)
SA 91
(SCA) at pages [12] and [13]
:
"[12]
Notwithstanding its awareness of the fact that its discretion must be
exercised judicially, the court a quo did not keep
in view the
specific principle that, generally speaking, an unpaid creditor has a
right, ex debito justitiae, to a winding-up order
against the
respondent company that has not discharged that debt. Different
considerations may apply where business rescue proceedings
are being
considered in terms of Part A of chapter six of the new
Companies Act
71 of 2008
. Those considerations are not relevant to these
proceedings. The court a quo also did not heed the principle that, in
practice,
the discretion of a court to refuse to grant a winding-up
order where an unpaid creditor applies therefor is a 'very narrow
one'
that is rarely exercised and in special or unusual circumstances
only.
[13] As mentioned
above, mere recourse to a counterclaim will not, in itself, enable a
respondent successfully to resist an application
for its winding-up.
Moreover, as set out above, the discretion to refuse a winding-up
order where it is common cause that the respondent
has not paid an
admitted debt is, notwithstanding a counterclaim, a narrow and not a
broad one. In these respects the court a quo
applied 'the wrong
principle[s]'. There must be no room for any misunderstanding: the
onus is not discharged by the respondent
merely by claiming the
existence of a counterclaim. The principles of which the court a quo
lost sight are: (a) as set out in Badenhorst
and Kalil, once the
respondent's indebtedness has prima facie been established, the
onus is on it to show that this indebtedness is disputed on bona
fide
and reasonable grounds and (b) the discretion of a court not to grant
a winding-up order upon the application of an unpaid
creditor is
narrow and not wide."
[87]
Under these circumstances, and mindful of the acknowledgements made
in correspondence by the
Respondent itself in respect of its
inability to pay, this court can only conclude that the provisional
order should be made final.
The
order:
[88]
The following order is made:
1. The
application in terms of
Rule 30A(2)
, read with
Rule 7(1)
and (4) with
notice of motion dated 3 December 2024, is dismissed with costs,
including costs of counsel on Scale B;
2. The
application in terms of
Rule 30A(2)
, read with
Rules 6(5)(a)
to (e)
and
42
(a) and/or the Common Law, with notice of motion dated 2
December 2024, is dismissed with costs, including costs of counsel on
Scale
B;
3. The
provisional winding-up order, granted on 28 August 2024, is
confirmed, and the Respondent company, S Ngomane
Incorporated, with
registration number 2007/025777/21, is hereby placed under final
winding-up in the hands of the Master of the
High Court, Pretoria;
4. The
cost of this application shall be costs in the administration of the
winding-up and shall include the costs
of counsel on Scale B.
RJ
GROENEWALD (AJ)
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Delivered:
This judgment was prepared and authored by the Judge whose name is
reflected and is handed down electronically by circulation
to the
parties/their legal representatives by email and by uploading it to
the electronic file of this matter on Caselines. The
date for
hand-down is deemed to be 31 July 2025.
For
the Applicant :
Adv GJ Lotter
Instructed
by
:
Van der
Merwe & Associates
For
the Respondent :
Adv G Shakoane SC
with
Adv M C Ntshangase
Instructed
by
:
S
Ngomane Inc
Matter
heard on :
28 July 2025
- Court 6C
Judgment
date
:
31 July
2025
[1]
Johannesburg
City Council v Elesander Investments (Pty) Ltd
1979 (3) SA 1273
(T)
at 1280A; Texeira v lndustrial and Mercantile Corporation
1979 (4)
SA 532
(O) at 539F; Morais v City of Cape Town
1997 (3) SA 1097
(C)
at 1101D.
[2]
The
Master of the High Court (North Gauteng High Court, Pretoria) v
Motala NO and Others
2012 (3) SA 325
{SCA).
[3]
Re
Calgary and Edmonton Land Co Ltd
(1975) 1 All ER 1046
; Herbst v
Hessels
1978 (2) SA 105
(T) 109; errace Bay Holdings (Pty) Ltd v
Strathmore Diamonds (Pty) Ltd
1976 (3) SA 664
(SWA). See also:
Machina Ltd v Rossouw
1959 (2) SA 218
(O) at 219; Abdurahman v
Estate Abdurahman
1959 (1) SA 872
(C) at 873F.
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