Case Law[2025] ZAGPPHC 884South Africa
South African Legal Practice Council v Mkhabela and Another (079786/23) [2025] ZAGPPHC 884 (14 August 2025)
High Court of South Africa (Gauteng Division, Pretoria)
14 August 2025
Headnotes
on 18 May 2021, and was ordered to pay a fine of R10,000.00 plus the costs of the disciplinary committee in the amount of R3,611.51. The First Respondent failed to pay the amounts above.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## South African Legal Practice Council v Mkhabela and Another (079786/23) [2025] ZAGPPHC 884 (14 August 2025)
South African Legal Practice Council v Mkhabela and Another (079786/23) [2025] ZAGPPHC 884 (14 August 2025)
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sino date 14 August 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE
NO.: 079786/23
(1)
REPORTABLE:
(2)
OF INTEREST TO OTHER JUDGES:
(3)
REVISED:
(4) Signature:
Date: 14/08/2025
In
the matter between:
THE
SOUTH AFRICAN LEGAL PRACTICE COUNCIL
Applicant
and
ARNOLD
MKHABELA
First Respondent
MKHABELA
INCORPORATED ATTORNEYS
Second Respondent
JUDGMENT
Kumalo J
INTRODUCTION
[1].
The applicant seeks, amongst others, an
order for the removal of the First Respondent’s name from the
roll of legal practitioners,
alternatively, for his suspension from
practice as a legal practitioner.
[2].
The First Respondent was admitted and
enrolled as an attorney of this Court on 11 January 2000. He
commenced practising as a sole
practitioner under the name and style
of Mkhabela Incorporated Attorneys with effect from 10 April 2000. He
also practised as a
partner at the firm Khoza, Mkhabela &
Maluleke Attorneys from 1 May 2001 to December 2001, and as a partner
at the firm Mhlaba
Attorneys from May 2006 to October 2007.
[3].
The Applicant alleged that the First
Respondent has engaged in serious misconduct that justifies his
removal from the roll of legal
practitioners, including
misappropriation of trust funds and practising without a fidelity
fund certificate.
[4].
It is trite law that matters of this nature
are
sui generis.
There
is no
lis
between
the Applicant and the Respondents. The Applicant, as the custodian of
the profession, merely places facts before this Court
for its
consideration.
[5].
It is further trite law that in matters of
this nature, the enquiry that the Court must conduct is threefold,
namely:
5.1
It
must decide as a matter of fact whether the alleged offending conduct
by the legal practitioner has been established.
5.2
If
the Court is satisfied that the offending conduct has been
established, a value judgment is required to decide whether the
person
concerned is not a fit and proper person to practise as a
legal practitioner.
5.3
If
the Court decides that the legal practitioner concerned is not a fit
and proper person to practise as a legal practitioner, it
must decide
in the exercise of its discretion whether, in all the circumstances
of the case, the legal practitioner in question
is to be removed from
the roll or merely suspended from practice.
[6].
The First Respondent is alleged to have
failed to pay his annual fees in the total amount of R10 608.34.
He was called to a
disciplinary hearing, which was held on 18 May
2021, and was ordered to pay a fine of R10,000.00 plus the costs of
the disciplinary
committee in the amount of R3,611.51. The First
Respondent failed to pay the amounts above.
[7].
Failure to pay the fine and costs is
misconduct on the part of a legal practitioner and is a contravention
of Rule 6 of the LPC
Rules, read with clause 3.16 of the Code of
Conduct.
[8].
There are several complaints by clients of
the First Respondent, and this court does not intend to regurgitate
all the facts thereof.
Suffice it to state that they relate to the
First Respondent’s failure to carry out their instructions. On
26 April 2023,
the Applicant received a complaint from Ms. Zanele
Florence Zwane. During 2018, Ms. Zwane instructed the First
Respondent to institute
proceedings against the Road Accident Fund on
her behalf and never received any communication from the First
Respondent since 2018.
[9].
PJ Sebetha Attorneys also laid a complaint
against the First Respondent on behalf of Mr. Zitho Thomas Molane,
who alleged that he
instructed the First Respondent to institute
proceedings against the RAF on his behalf. On 06 August 2019, RAF
made an offer of
R350 000.00 to settle the matter, which offer
was accepted. First Respondent failed to account to the complainant
and to effect
payment in favour of the complainant.
[10].
A further amount of R39 864.37 in
respect of costs was paid into the First Respondent’s trust
account.
[11].
Similarly, Mr. Siphesihle Bryan Xaba laid a
similar complaint against the First Respondent. The First Respondent
was untruthful
to the client, stating that the matter was still in
progress when in fact it was settled, and he had failed to account to
the client
and pay over to the client the settlement amount.
[12].
On 3 April 2023, the Applicant received a
similar complaint from Ms. Nobahle Maphumulo. RAF settled her claim
and paid an amount
of R400 000.00 into the trust account of the
First Respondent, and he failed to account to the client and to
effect payment
of the settlement amount in the client’s favour.
[13].
There were further complaints by
Benedict Refilwe Lempetse, Joyce Mbonani, Aranjo Makamo and Cathrien
Hlonkwane. The First Respondent
was instructed to institute
proceedings on their behalf, but failed to carry out such
instructions, and their claims prescribed
and/or rejected. The First
Respondent failed to communicate with them.
[14].
It is perhaps apposite that this
Court deals at this stage with the First Respondent’s
perspective of the case. The First
Respondent uploaded its written
submissions on Caselines.
[15].
It is noted that the First Respondent
denies most of the transgressions levelled against him but has
conceded to some. He further
acknowledged that he failed to avoid
trust deficits and that he misappropriated trust funds. Despite the
acknowledgement of all
the above, he, however, submitted that he
remains a fit and proper person to practice as a legal practitioner
and to remain on
the roll of legal practitioners.
[16].
It is contended on behalf of the First
Respondent that he did not act with dishonesty. None of the
transgressions he committed reflected
on his honesty and integrity.
In contrast, he admits that he used the trust funds for purposes
other than their intended use, which
did not evidence dishonesty but
reflected a contravention of a rule.
[17].
It was further submitted on his behalf that
only three clients were prejudiced, and no other trust creditors were
prejudiced, except
for the delay in receiving their payments. He has
undertaken to reimburse the clients or the fidelity fund, any amounts
which belonged
to clients but were used for other purposes. Based on
this argument, it was submitted on the First Respondent’s
behalf that
an order to strike off will, under these circumstances,
be severe and inappropriate.
[18].
This Court is of the view that the
Respondent’s attitude is nonchalant to say the least. The above
is a display of a cavalier
attitude to the matter and does not accord
it the seriousness it deserves.
[19].
Firstly, there is the issue of the First
Respondent’s failure to pay his annual fees, for which he was
ordered to pay a fine
of R10,000.00 plus the costs of the
disciplinary committee of R3,611.51, which remained unpaid as at the
date of the hearing of
this matter. It is not stated anywhere when
such would be paid, other than that the First Respondent intends to
make good the amount
due as soon as his financial circumstances
allow.
[20].
The Respondent’s conduct in this
regard is a contravention of Rule 4.1 and 6 of the LPC Rules, read
together with clause 3.16
of the Code of Conduct.
[21].
Concerning the complaint of Ms. Zwane, the
First Respondent states that he was not the attorney dealing with the
matter. The complaint
came at a time when he had already retrenched
and most of the professional staff had already left his employment.
This, in the
Court’s view, demonstrates the First Respondent’s
nonchalant approach to the matter. The professionals he is referring
to were in his employ, and he is responsible for their conduct. He
cannot wash his hands because he did not deal with the matter
directly, but somebody else dealt with it. He ought to have
acknowledged receipt of the complaint and explained then what he
seeks
to explain to this Court.
[22].
This also applies to the complaint of
Lempetse. The First Respondent seeks to rely on the fact that he was
not the attorney who
personally dealt with the matter. The point is
that the buck stops with him. He was the employer. He states further
that the LPC
has his response, but again failed to attach a copy
thereof and tell this Court when exactly he provided his response.
[23].
This is a violation of clause 3.1 of the
Code of Conduct. He failed to maintain the highest standard of
honesty and integrity. He
sought to rely on the allegation that he
was not the attorney who personally dealt with the matter.
[24].
About the Molane and the Mbuthu complaints,
the First Respondent denies the allegation and states that his office
accounted directly
to the client and there was no basis that he
should have effected transfer in the sum alleged to PJ Sebetha
Attorneys. It may be
so, but professional courtesy demands that he
ought to have explained to PJ Sebetha Attorneys and the LPC, which he
did not. That
amounted to professional misconduct in the Court’s
view.
[25].
In the Mbuthu matter, it would have been
simpler for him to respond to the Applicant and state what had
transpired. To his knowledge,
the complaint was withdrawn, but he
failed to attach to his papers a copy of the alleged affidavit
withdrawing the complaint.
[26].
To compound matters further, the First
Respondent does not tell this Court when exactly he accounted to the
client. The reason for
the cash withdrawal is also not convincing.
How that was done is not explained, and surely there would have been
bank records to
support this story.
[27].
This is again a violation of clause 3.1 of
the Code of Conduct and clause 16.1 in that he failed to respond to
all communications
that required an answer unless good cause for
refusing an answer existed.
[28].
Xaba’s matter is also perplexing. The
First Respondent’s excuse in this regard is that by the time he
received this
complaint, Xaba had already been paid, and he therefore
did not see the need to reply to the LPC. There was a need to explain
to
the LPC to put the matter at rest.
[29].
The Maphumulo and Lekwene complaints and
explanation of the First Respondent again, display his cavalier
attitude. He delayed payment
of the client’s money because he
was at the point where he was rolling Trust Funds. If this does not
constitute a risk to
client funds, then nothing else would constitute
a risk. Trust monies are intended for specific purposes and not to be
rolled at
the whim of the Legal Practitioner.
[30].
This cannot be honest conduct on the part
of the First Respondent. He failed in maintaining the highest
standard of honesty and
integrity.
[31].
Concerning the complaint of Mbonani, this
Court agrees with the submissions of the First Respondent. It is
doubtful that when he
received instructions in 2015, the RAF would
have made any offer in that year. It is, however, questionable
whether the said offer
was made in 2023. The First Respondent could
have easily attached the said offer to his papers.
[32].
In the Makamo, Hlonkwane and Mojela
matters, the First Respondent alleges that he never received the said
complaints and could not
respond to them. He does not address the
said complaints and offer to this court any explanation other than
the allegation that
he did not receive them. This again is further
confirmation of the attitude of the First Respondent to the claims he
is faced with.
[33].
This also includes the complaint of Mariam
Mamonyane. The First Respondent alleged that he saw the complaint for
the first time
when he read the Applicant’s founding affidavit.
He again states that he was not the attorney dealing with the matter.
This
court did not understand that the First Respondent had partners
in his firm. It has always been the understanding of this Court
that
the First Respondent was a sole practitioner and had employed
professionals to assist him.
[34].
The First Respondent admitted the
allegations against him in the Sithole complaint and on several other
allegations, including that
of Vinas Mkhabela.
[35].
In the matter of Mudau, he again raises the
issue of rolling trust funds, and this court has already expressed
its view on the matter
and need not repeat itself.
[36].
The other matters that form the subject of
the complaints against the First Respondent have been settled, and he
believed that they
had been withdrawn even though he provided no
documentation to that effect.
[37].
The Court does not propose to deal with the
complaint by Leon JJ Van Rensburg Attorneys and will give the First
Respondent the benefit
of the doubt insofar as it is concerned.
[38].
There are so many complaints against the
First Respondent, most of which the First Respondent has not applied
his mind to before
this court.
[39].
In the Masinga matter, the complaint is
that Masinga met a certain Ronny Rikhotso, in the employ of the First
Respondent, whom he
instructed to assist with the transfer of a
certain property into his name. He paid his employee for the services
requested. Whilst
it is correct that the First Respondent is not a
conveyancer, this court is of the view that it is not enough for him
to state
that without further ado. One would have expected that he
would either deny that he ever had an employee by the name of Ronny
Rikhotso,
as alleged, or if he had such an employee, what
investigations he conducted or intends to perform in the matter.
[40].
In the complaint of Nkosi, which is similar
to that of Masinga, the First Respondent mentions that he does not
have an employee
named Rikhotso. However, he goes further and states
that Nkosi was refunded his money, which begs the question? Why, in
the first
place, was the money taken when he gave instructions which
required a conveyancer?
[41].
Again, the First Respondent lacks
appreciation of the complaints laid against him. In the Guambe
matter, he conceded that he gave
a belated response and further
stated that he failed to understand why this issue was raised in this
matter. This matter is raised
precisely to challenge his fitness to
practise as a legal practitioner. Similarly, the same logic would
apply in the matter of
Tshabalala, wherein he again responded late.
Again, he gave an excuse that he was not the attorney dealing with
the matter. This
excuse cannot fly in the face of the fact that he
was the employer.
[42].
In the Macandza matter, the complaint
against the First Respondent is that he failed to respond within a
reasonable period, which
fact made him guilty of violating clause
16.2 of the Code of Conduct. No explanation is given in this regard.
[43].
The less said about the complaint by Smith
of Carter Smith Incorporated, the better. The First Respondent, who
is a legal practitioner,
failed to comply with a court order. The
reason is that he did not have money, as he had paid the capital and
the costs. To who
was the money paid when his client was the curator,
and to whom was, he supposed to make the payment?
[44].
In the matter involving Iris Mokgabudi, the
First Respondent denies that he failed to reply to correspondence
addressed to him by
the Applicant and attached a copy of the letter
to the Applicant. This begs the question why, in the other instances
where he denies
that he failed to respond to the Applicant’s
correspondence, he did not do the same, namely, attach copies
thereof.
[45].
The First Respondent has not been able to
provide a reasonable explanation for many of the alleged
transgressions other than a bare
denial thereof. His denial in a
number of them is that he was not the attorney dealing with those
matters, and as such, he cannot
give an explanation.
[46].
This court mentioned on several occasions
that the First Respondent is nonchalant about his transgressions. To
compound matters,
the First Respondent had a deficit in his trust
account.
[47].
Reddy reported that the First Respondent’s
firm's annual Statement on Trust Accounts for the years ending 28
February 2022
and 28 February 2021, which were submitted to the
Applicant together with an auditor’s report, reflected a nil
balance on
surplus and or deficit. However, his investigations appear
to indicate a trust deficit of R2,581,103.30, with outstanding
payments
to Sithole, Seatile, Sekgobela, Yende, Dlamini, Mathebula
and Malope. The Total trust creditors stood at R2, 680,395.00, and
the
trust bank balance, as at 28 February 2021 was R99, 291.70.
[48].
The trust position as at 30 June 2021 was a
deficit of R756, 368.40. This, according to the Applicant, is vastly
different to the
trust position reported in the attorneys’
annual statement on trust account for the year 28 February 2022.
[49].
Reddy opined that the First Respondent
intentionally misrepresented the firm’s trust position to the
Applicant to obtain a
Fidelity Fund certificate.
[50].
The findings indicate that the firm had a
significant trust deficit during the 2021 and 2022 financial years,
which resulted in
delays in effecting payments to trust creditors,
meaning that no reliance can be placed on the audit reports for the
years 28 February
2021 and February 2022.
[51].
The conduct of the First Respondent
contravened several provisions of the Legal Practice Act, the LPC
Rules and the Code of Conduct
for Legal Practitioners and some have
already been referred to above. Concerning the trust deficit, he not
only failed to report
the deficit to the Applicant but also
misrepresented it in the audit report that was submitted to the
Applicant.
[52].
This court agrees with the submissions of
the Applicant that, considering the totality of the First
Respondent’s infractions,
there is no argument that his conduct
is dishonourable, unprofessional and unworthy of a legal
practitioner.
[53].
The First Respondent’s conduct is of
such a degree that he cannot be a fit and proper person to practice
as a legal practitioner.
[54].
The issue then for this Court is whether,
in the circumstances, it is to exercise its discretion to remove the
First Respondent’s
name from the roll of legal practitioners or
that he be suspended from practice as a legal practitioner.
[55].
A legal practitioner must scrupulously
comply with the provisions of the Legal Practice Act, the Attorneys
Act and the Rules for
the Attorneys Profession, especially with the
money of a client which is placed into his/her custody and control.
[56].
The First Respondent, in his own words,
used trust monies for his own needs when he encountered financial
problems. In his own words,
he began rolling his trust account funds,
which posed a risk for the clients.
[57].
Trust
money does not form part of the assets of a legal practitioner. The
very essence of a trust fund is the absence of risk and
the
confidence created thereby. The unjustifiable handling of trust money
is untenable and not only frustrates the legal requirements
relating
to trust money but also undermines the principle that a trust account
is entirely safe in respect of funds held therein
by a legal
practitioner on behalf of another person.
[1]
[58].
Legal practitioners must always prefer the
interest of their clients above their own and must exercise the
highest degree of good
faith in their dealings with their clients.
[59].
The image and standing of the profession
are judged by the conduct and reputation of all its members, and to
maintain this confidence
and trust, all members of the profession
must exhibit the highest qualities of honesty and integrity. The law
expects from a legal
practitioner the highest possible degree of good
faith in his dealings with his client, which always implies that his
submissions
and representations to the client must be accurate,
honest and frank.
[60].
The First Respondent failed to meet this
high standard of a legal practitioner, and to compound matters
further, he has not been
candid with the court in certain instances
and did not take the court into his confidence. He would not take
responsibility and
sought to shift the blame, stating that he was not
the attorney dealing with those matters. However, he was a sole
practitioner
and employed professionals to assist him. He is
responsible for their conduct in the discharge of their duties
towards his clients.
[61].
In the circumstances, the following order
is made:
1.
The name of Arnold Mkhabela (hereinafter
referred to as the “First Respondent”) is removed from
the roll of legal practitioners.
2.
The first Respondent is to deliver his
certificate of enrolment as a legal practitioner to the Registrar of
this Court.
3.
In the event of the First Respondent
failing to comply with the terms of this order above within two weeks
from the date of this
order, the sheriff of the district in which the
certificate is, is authorised and directed to take possession of the
certificate
and to hand it to the Registrar of this Court.
4.
The Respondents are prohibited from
handling or operating on any trust accounts as detailed in paragraph
5 hereof.
5.
The person who occupies the office of the
director of the halting provincial office of the applicant, for the
time being be appointed
as curator bonus to administer and control
the trust accounts of the respondents including accounts relating to
insolvent and deceased
estates and any deceased state and any state
under curatorship connected with the first respondents practice as a
legal practitioner
and including also the separate banking accounts
opened and kept by respondents at the bank in the Republic of South
Africa in
terms of section 86(1) & (2) of Act No. 28 of 2014
and/or any separate savings or interest bearing accounts as
contemplated
by section 86(3) and/or section 86(4) of Act No.28 of
2014, in which monies from such trust banking accounts have been
invested
by virtue of the provisions of the said sub-sections or in
which monies in any manner have been deposited or credited (the said
accounts being hereinafter referred to as the trust accounts), with
the following duties:
5.1
Immediately to take possession of the
Respondents’ accounting records, records, files and documents
as referred to in paragraph
6and subject to the approval of the Legal
Practitioners’ Fidelity Fund Board of Control (the Fund”)
to sign all forms
and generally to operate upon the trust accounts,
but only to such extent and for such purpose as may be necessary to
bring to
completion current transactions in which the Respondents
were acting at the date of this order.
5.2
subject to the approval and control of the
Legal Practitioners’ Fidelity Fund Board of Control and where
monies had been paid
incorrectly and unlawfully from the
undermentioned trust accounts, to recover and receive and, if
necessary in the interests of
persons having lawful claims upon the
trust account(s) and/or against the Respondents in respect of monies
held, received and/or
invested by the Respondents in terms of section
86(1) & (2) and/or section 86(3) and/or section 86(4) of Act No
28 of 2014
(hereinafter referred to as trust monies), to take any
legal proceedings which may be necessary for the recovery of money
which
may be due to such persons in respect of incomplete
transactions, if any, in which the Respondents were and may still
have been
concerned and to receive such monies and to pay the same to
the credit of the trust account(s);
5.3
to ascertain from the Respondents’
accounting records the names of all persons on whose account the
Respondents appear to
hold or to have received trust monies
(hereinafter referred to as trust creditors) and to call upon the
First Respondent to furnish
him, within 30 (thirty) days of the date
of service of this order or such further period as he may agree to in
writing, with the
names, addresses and amounts due to all trust
creditors;
5.4
to call upon such trust creditors to
furnish such proof, information and/or affidavits as he may require
to enable him, acting in
consultation with, and subject to the
requirements of the Legal Practitioners’ Fidelity Fund Board of
Control, to determine
whether any such trust creditor has a claim in
respect of monies in the trust account(s) of the Respondents and, if
so, the amount
of such claim;
5.5
to admit or reject, in whole or in part,
subject to the approval of the Legal Practitioners’ Fidelity
Fund Board of Control,
the claims of any such trust creditor or
creditors, without prejudice to such trust creditor's or creditors'
right of access to
the civil courts;
5.6
having determined the amounts which he
considers are lawfully due to trust creditors, to pay such claims in
full but subject always
to the approval of the Legal Practitioners’
Fidelity Fund Board of Control;
5.7
in the event of there being any surplus in
the trust account(s) of the Respondents after payment of the admitted
claims of all trust
creditors in full, to utilise such surplus to
settle or reduce (as the case may be), firstly, any claim of the fund
in terms of
section 86(5) of Act No 28 of 2014 in respect of any
interest therein referred to and, secondly, without prejudice to the
rights
of the creditors of the Respondents, the costs, fees and
expenses referred to in paragraph 10 of this order, or such portion
thereof
as has not already been separately paid by the Respondents to
the Applicant, and, if there is any balance left after payment in
full of all such claims, costs, fees and expenses, to pay such
balance, subject to the approval of the Legal Practitioners’
Fidelity Fund Board of Control, to the First Respondent, if he is
solvent, or, if the First Respondent is insolvent, to the trustee(s)
of the First Respondent's insolvent estate;
5.8
in the event of there being insufficient
trust monies in the trust banking account(s) of the Respondents, in
accordance with the
available documentation and information, to pay
in full the claims of trust creditors who have lodged claims for
repayment and
whose claims have been approved, to distribute the
credit balance(s) which may be available in the trust banking
account(s) amongst
the trust creditors alternatively to pay the
balance to the Legal Practitioners’ Fidelity Fund;
5.9
subject to the approval of the chairman of
the Legal Practitioners’ Fidelity Fund Board of Control, to
appoint nominees or
representatives and/or consult with and/or engage
the services of legal practitioners, counsel, accountants and/or any
other persons,
where considered necessary, to assist him in carrying
out his duties as curator; and
5.10
to render from time to time, as curator,
returns to the Legal Practitioners’ Fidelity Fund Board of
Control showing how the
trust account(s) of the Respondents has/have
been dealt with, until such time as the board notifies him that he
may regard his
duties as curator as terminated.
6.
That the Respondents immediately deliver
the accounting records, records, files and documents containing
particulars and information
relating to:
6.1
any monies received, held or paid by the
Respondents for or on account of any person while practising as a
legal practitioner;
6.2
any monies invested by the Respondents in
terms of section 86(3) and/or section 86(4) of Act No 28 of 2014;
6.3
any interest on monies so invested which
was paid over or credited to the Respondents;
6.4
any estate of a deceased person or an
insolvent estate or an estate under curatorship administered by the
Respondents, whether as
executor or trustee or curator or on behalf
of the executor, trustee or curator;
6.5
any insolvent estate administered by the
Respondents as trustee or on behalf of the trustee in terms of the
Insolvency Act, No 24 of 1936
;
6.6
any trust administered by the Respondents
as trustee or on behalf of the trustee in terms of the Trust
Properties Control Act, No
57 of 1988;
6.7
any company liquidated in terms of the
provisions of the Companies Act, No 61 of 1973 read together with the
provisions of the
Companies Act, No 71 of 2008
, administered by the
Respondents as or on behalf of the liquidator;
6.8
any close corporation liquidated in terms
of the
Close Corporations Act, 69 of 1984
, administered by the
Respondents as or on behalf of the liquidator; and
6.9
the First Respondent's practice as a legal
practitioner of this Honourable Court, to the curator appointed in
terms of paragraph
5 hereof, provided that, as far as such accounting
records, records, files and documents are concerned, the Respondents
shall be
entitled to have reasonable access to them but always
subject to the supervision of such curator or his nominee.
7.
That should the Respondents fail to comply
with the provisions of the preceding paragraph of this order on
service thereof upon
him or after a return by the person entrusted
with the service thereof that he has been unable to effect service
thereof on the
Respondents (as the case may be), the sheriff for the
district in which such accounting records, records, files and
documents are,
be empowered and directed to search for and to take
possession thereof wherever they may be and to deliver them to such
curator.
8.
That the curator shall be entitled to:
8.1
hand over to the persons entitled thereto
all such records, files and documents provided that a satisfactory
written undertaking
has been received from such persons to pay any
amount, either determined on taxation or by agreement, in respect of
fees and disbursements
due to the firm;
8.2
require from the persons referred to in
paragraph 8.1 to provide any such documentation or information which
he may consider relevant
in respect of a claim or possible or
anticipated claim, against him and/or the Respondents and/or the
Respondents’ clients
and/or fund in respect of money and/or
other property entrusted to the Respondents provided that any person
entitled thereto shall
be granted reasonable access thereto and shall
be permitted to make copies thereof.
8.3
publish this order or an abridged version
thereof in any newspaper he considers appropriate; and
8.4
wind-up of the First Respondent’s
practice.
9.
That the First Respondent be and is hereby
removed from office as:
9.1
executor of any estate of which the First
Respondent has been appointed in terms of
section 54(1)(a)(v)
of the
Administration of Estates Act, No 66 of 1965
or the estate of any
other person referred to in
section 72(1)
;
9.2
curator or guardian of any minor or other
person’s property in terms of
section 72(1)
read with
section
54(1)(a)(v)
and
section 85
of the
Administration of Estates Act, No
66 of 1965
;
9.3
trustee of any insolvent estate in terms of
section 59
of the
Insolvency Act, No 24 of 1936
;
9.4
liquidator of any company in terms of
section 379(2)
read with 379(e) of the Companies Act, No 61 of 1973
and read together with the provisions of the
Companies Act, No 71 of
2008
;
9.5
trustee of any trust in terms of section
20(1) of the Trust Property Control Act, No 57 of 1988;
9.6
liquidator of any close corporation
appointed in terms of section 74 of the Close Corporation Act, No 69
of 1984; and
9.7
administrator appointed in terms of Section
74 of the Magistrates Court Act, No 32 of 1944.
10.
That the Respondents be and are hereby
directed:
10.1
to pay, in terms of section 87(2) of Act
No. 28 of 2014, the reasonable costs of the inspection of the
accounting records of the
Respondents;
10.2
to pay the reasonable fees of the auditor
engaged by Applicant;
10.3
to pay the reasonable fees and expenses of
the curator, including travelling time;
10.4
to pay the reasonable fees and expenses of
any person(s) consulted and/or engaged by the curator as aforesaid;
10.5
to pay the expenses relating to the
publication of this order or an abbreviated version thereof; and
10.6
to pay the costs of this application on an
attorney-and-client scale.
11.
That if there are any trust funds available
the Respondents shall within 6 (six) months after having been
requested to do so by
the curator, or within such longer period as
the curator may agree to in writing, shall satisfy the curator, by
means of the submission
of taxed bills of costs or otherwise, of the
amount of the fees and disbursements due to the First Respondent in
respect of his
former practice, and should he fail to do so, he shall
not be entitled to recover such fees and disbursements from the
curator
without prejudice, however, to such rights (if any) as he may
have against the trust creditor(s) concerned for payment or recovery
thereof.
12.
That a certificate issued by a director of
the Legal Practitioners Fidelity Fund shall constitute
prima
facie
proof of the curator’s
costs, and that the Registrar be authorised to issue a writ of
execution on the strength of such certificate
in order to collect the
curator’s costs.
13.
The respondents are to pay the costs of
this appeal on an attorney and client cost.
MP Kumalo
Judge of the High
Court
I agree,
T Nyandeni
Acting Judge of the
High Court
Delivered:
This judgment is handed down electronically by uploading it to the
electronic file of this matter on CaseLines.
For
the applicant: M Moolmaan
Instructed
by: Damons Margadie Richardson
Attorneys
For
the defendant: D Mstweni
Instructed
by: Frans Mashele Incorporated
[1]
[1]
Jasat
v Natal Law Society
2000 (3) SA 44
(SCA) at 51 B-I; Law Society of
the Cape of Good Hope vs Buddricks
2003 (2) SA 11
(SCA) at 13 I and
14 A to B; Malan v The Law Society of the Northern Provinces
(568/2007)
[2008] ZASCA 90
(12/09/2008) at [4 - 9] 28 Law Society
Transvaal vs Mathews, supra at 393 I-J; Olivier vs Die Kaapse
Balie-Raad 1972(3) SA 485(A)
at 496 F-G; Summerley vs Law Society
Northern Provinces 2006(5) SA 613(SCA) at 615 BF; Malan v The Law
Society of the Northern
Provinces (568/2007)
[2008] ZASCA 90
(12/09/2008) at [9] 29 Law Society Transvaal vs Mathews, supra at
393 I-J; Olivier vs Die Kaapse Balie-Raad 1972(3) SA 485(A)
at 496
F-G; Summerley vs Law Society Northern Provinces 2006(5) SA 613(SCA)
at 615 BF; Malan v The Law Society of the Northern
Provinces
(568/2007)
[2008] ZASCA 90
(12/09/2008) at [9].
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