Case Law[2025] ZAGPPHC 926South Africa
Tjaart NO v L.G.G and Another (20539/2016) [2025] ZAGPPHC 926 (8 September 2025)
High Court of South Africa (Gauteng Division, Pretoria)
8 September 2025
Headnotes
by the community estate of the parties equating to 14.25% (fourteen point two five percentum) in Nyumbani Investments CC be transferred and registered to the Second Respondent with all rights attaching thereto in law;
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Tjaart NO v L.G.G and Another (20539/2016) [2025] ZAGPPHC 926 (8 September 2025)
Tjaart NO v L.G.G and Another (20539/2016) [2025] ZAGPPHC 926 (8 September 2025)
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sino date 8 September 2025
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 20539/2016
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED
Date:
8 September 2025
Signature:
K. La M Manamela
In
the matter between:
HENDRIK
JOHANNES TJAART
N.O.
Applicant
and
L[...]
G[...] G[...]
First
Respondent
D[...]
G[...]
Second
Respondent
In
re
:
D[...]
G[...]
Plaintiff
and
L[...]
G[...] G[...]
Defendant
DATE
OF JUDGMENT:
This judgment is issued by the Judge whose name is
reflected herein and is submitted electronically to the parties/their
legal representatives
by email. The judgment is further uploaded to
the electronic file of this matter on CaseLines by the Judge’s
secretary. The
date of the judgment is deemed to be 8 September 2025.
JUDGMENT
Khashane
Manamela, AJ
Introduction
[1]
The applicant is a liquidator or receiver
[1]
appointed by the order of this Court on 6 February 2023, which order
included the dissolution of the marriage between the first
and second
respondents (‘the Divorce Order’). The first and second
respondents (‘the respondents’) were
married in community
of property since 26 January 1991. The Divorce Order incorporated a
settlement agreement on the division of
the respondents’ joint
estate (‘the Settlement’)
[2]
and the applicant’s specific powers and duties to give effect
to the agreed division of the joint estate (‘the Powers’).
[3]
This opposed application relates to the second and final liquidation
and distribution account (‘Second L&D’) drafted
by
the applicant in the discharge of his responsibilities in terms of
the Powers. The first respondent formally objected against
the Second
L&D on various grounds.
[4]
The second respondent is not taking an active part in this
application and has not objected to the Second L&D.
[2]
The applicant, in the face of the first respondent’s objection,
brought this
application seeking the following relief:
1.
that the Second and Final Liquidation and Distribution Account be
approved and made an order, subject
thereto that:-
1.1
the distribution in Specie of 50% (fifty
percentum) of the membership interest
held by the community
estate of the parties equating to 14.25% (fourteen point two five
percentum) in Nyumbani Investments CC be
transferred and registered
to the Second Respondent with all rights attaching thereto in law;
1.2
the distribution in Specie of the remaining 50%
(fifty percentum) and of the membership interest shall remain in the
name of the
First Respondent with all rights attaching thereto in
law;
1.3
that the Second Respondent be ordered to cede and
make over to the First Respondent 50% (fifty percentum) of the value
of his Pension
Fund Interests with Momentum Insurance being policy
numbers: 0[...] and 9[...] as at the date of divorce and the First
Respondent
to take all such steps as may be necessary in law to have
her said interest registered with Momentum;
1.4
the First Respondent shall pay the costs of this application on the
party and party scale…
[5]
[3]
The applicant sought to slightly vary or amend the above relief set
out in the notice
of motion, by the removal of the word ‘final’
in the heading or description of the account (i.e. ‘Second and
Final Liquidation and Distribution Account’) to just ‘Second
Liquidation and Distribution Account’. The first
respondent
appeared to object thereto. I ruled that the amendment was not
necessary as in
most
instances this type of accounts would be described as ‘first
and final’ or ‘second and final’
in
headings
.
[6]
Besides the amendment of the notice of motion without similar
amendment to the actual Second L&D would have been of no
consequence,
and the account may be varied – for other reasons
- in terms of the order made by this Court.
[4]
The application came before me on 19 August 2025. Mr NS Nxumalo
appeared for the applicant
and Ms K Howard appeared for the first
respondent. Both counsel had filed written argument or heads of
argument in terms of the
directives of this Court. Nevertheless, I am
grateful for their efforts. I reserved this judgment at the
conclusion of the hearing.
Nature and extent
of the first respondent’s opposition, as well as additional
affidavits by the parties
[5]
The first respondent’s answering affidavit was branded a
‘Preliminary
Answering Affidavit’.
[7]
In this affidavit, the first respondent stated that she is not
opposing the relief sought in paragraphs 1.1 to 1.3 of the notice
of
motion,
[8]
but only the relief
sought in paragraphs 1 and 1.4 thereof.
[9]
This was repeated in the first respondent’s supplementary
answering affidavit delivered on 11 July 2025.
[10]
Consequently, the applicant urged the Court to grant the relief said
to be not opposed by the first respondent without further
ado. But
the inadvertent error in this regard is obvious, as opposition by the
first respondent of the relief sought in terms of
paragraph 1 of the
notice of motion amounts to opposition of the entire relief sought by
the applicant in this application. Paragraph
1 seeks the approval or
confirmation of the Second L&D from the Court. Therefore, the
nature and extent of the opposition by
the first respondent would be
determined from the facts and submissions before the Court rather
than the purported concession.
I also mention that I will admit all
additional affidavits filed on behalf of the parties and, equally,
condone the timing of their
delivery in the interests of justice
dictated upon by the facts of this matter. One only hopes that this
does not encourage similar
conduct to become embedded in future
litigation by these parties or even by others in other litigation in
this Division.
Brief background
[6]
A brief background of the issues relevant to the determination of
this matter is necessary
to place them in a proper context. This
would be constituted from what appears to be common cause between the
parties or I will
indicate what is disputed.
[7]
The respondents, as stated above, were married in community of
property from 26 January
1991 until their divorce in terms of the
Divorce Order granted by Deputy Judge President Ledwaba on 6 February
2023. The divorce
proceedings were initiated by the second respondent
in 2016 and are still proceeding – in some respects – in
this Division.
They precipitated other proceedings of an ancillary or
interlocutory nature, including an application based on Rule 43 of
the Uniform
Rules of this Court.
[8]
The respondents, as also stated above, concluded a settlement
agreement (i.e. the
Settlement) which, together with the duties and
powers of the applicant as the appointed liquidator or receiver (i.e.
the Powers),
were incorporated in the Divorce Order. The Settlement
also provided for the following: (a) that, the first respondent’s
counterclaim for spousal maintenance, as well as the issue of costs,
will be postponed
sine die
to a trial date to be allocated by
the Registrar or a preferential trial date, and (b) that, the second
respondent would continue
to make payment of the interim maintenance
to the first respondent in terms of the order granted in terms of
Rule 43(6) dated 22
July 2022,
per
Strijdom J, and until
determined otherwise by the Court.
[9]
On 20 September 2023, the applicant submitted to the parties the
first and final liquidation
and distribution account (‘the
First L&D’). The First L&D was almost uneventful when
compared to the Second
L&D in that no formal objection was lodged
by either of the former spouses against the First L&D.
[10]
As already stated the Second L&D was submitted on 21 March 2024.
The first respondent’s
notice of objection to the Second L&D
was lodged on 18 April 2024 (‘the Objection’). The
Objection in its full
length appears below.
[11]
[11]
In July 2024, this application ensued. In August 2024 the first
respondent filed her preliminary
answering affidavit and almost a
year later, on 11 July 2025, filed her supplementary answering
affidavit to deal further with
the merits of the matter. The latter
affidavit appears to contain some form of a counterapplication in
that the first respondent,
does not only oppose the approval of the
Second L&D, but also seeks relief of her own in the form of
removal of the applicant
from the office of the receiver or
liquidator.
[12]
I deal with
these issues below, but first a layout of the Objection.
First respondent’s
Objection
[12]
As stated above, after the First L&D, the applicant proceeded to
submit to the parties the
Second L&D, which he referred to as the
‘Second and Final Liquidation and Distribution Account’
on 21 March 2024.
The first respondent quibbled about this branding
as indicated above.
[13]
[13]
In terms of the Powers, the respondents are entitled to raise
objections to an account by the
applicant within 14 days from the
date that the account has been sent, otherwise the material account
will be deemed to be accepted.
As stated above, the Objection to the
Second L&D, appears to have been lodged timeously by the
first respondent on 18
April 2024. It is important to bear in mind –
for reasons that would become clearer below – that there was no
objection
against the First L&D.
[14]
The Objection appears as follows in the operative part:
BE PLEASED TO TAKE
NOTICE
that the Defendant objects to the Second and final
liquidation and distribution account prepared by the Receiver, being
Mr Hendrick
Johannes Tjaart (Hennie) Eloff of Equitrust (Pty) Ltd for
the following reasons:
1.
The Defendant objects to the sale of the 14.25% members' interest
currently held
by D[...] G[...] in Nyumbani Investments CC until such
time as the loan account payable by Nyumbani Investments CC to D[...]
G[...]
is recovered and included in the liquidation and distribution
account.
The loan account as per
the signed financials of Nyumbani Investments CC currently held by
D[...] G[...], is R 322 420.00. It is
submitted that the sale of the
members interest and the loan accounts must be dealt with as one
indivisible transaction.
2.
The Defendant objects to the payment of the cheque and credit
account
from the joint estate as this is the Plaintiff’s personal
expense which was accrued by him after the separation of
the parties
for his own benefit.
3.
The Defendant objects to the conclusion by the Receiver that
the
Defendant's legal costs is not a debt of the joint estate. The
Plaintiff having paid his legal costs from the joint estate
of the
parties.
4.
The Defendant objects to the failure of the Receiver to make
provision for the payment of legal fees to the Defendant's erstwhile
attorneys of record. Provision is to be made as the matter
is under
dispute in the above honourable court under CASE NO. 2021/23626.
5.
The Receiver has failed to take into his possession and account
for
the Plaintiff's watches that form part of the estate, including but
not limited to the Rolex, 2X omegas, Phillip Patek.
6.
That the Receiver make
provision for payment of legal fees by the joint estate to secure the
release of 50% the Plaintiff's pension
fund to the Defendant.
[14]
[15]
I follow, liberally, the lead of the parties in labelling the
objections as follows: (a) ‘the
Nyumbani Objection’ (i.e.
the objection concerning the 14.25% members’ interest held by
the second respondent in Nyumbani
Investment CC); (b) ‘the
Cheque and Credit Account Objection’ (i.e. the objection to the
payment of the debit balance
of the second respondent’s cheque
and credit account from the joint estate); (c) ‘the First Legal
Costs Objection’
(i.e. that the second respondent’s legal
costs is not a debt of the joint estate and, thus, the applicant
should not have
settled this from the estate); (d) ‘the Second
Legal Costs Objection’ (i.e. that, the applicant failed to make
provision
for the payment of legal fees of the first respondent’s
erstwhile attorneys); (e) ‘the Watches Objection’ (i.e.
that, the applicant failed to take under his control and to account
for the watches belonging to the second respondent which he
sold for
his sole benefit, and (f) ‘the Momentum objection’ (i.e.
the applicant did not make provision for payment
of legal costs by
the joint estate to secure the release of the first respondent’s
share of pension fund from Momentum Insurance).
The grounds of the
Objection in (c) and (d), relating to legal costs, are dealt with
together by the parties. I will also emulate
this, below.
Powers
and duties of the liquidator/receiver (i.e. the Powers)
[16]
Central to the dispute between the parties in this application is the
nature and extent of the
Powers of the applicant, as the appointed
liquidator or receiver. It is common cause that the applicant’s
primary duty under
the Powers is to take control of the assets in the
joint estate and settle the liabilities thereof. Any residue - after
satisfaction
of the liabilities and payment of fees due to the
applicant and other specified costs - is to be fairly distributed by
the applicant
between the respondents.
[17]
The Powers - providing for the duties and powers of the applicant as
the liquidator - include
the following:
1.
The Receiver/Liquidator shall have all the powers contained herein,
in
section 38
of the
Superior Courts Act, 10 of 2013
, in the court
order, the Uniform Rules of Court and generally to have such powers
as are conferred on a Trustee as laid down in
the Insolvency Act 24
of 1936 (as amended).
2.
The powers of the Receiver/Liquidator shall include but not limited
to:
2.1
the right to make all investigations necessary and in particular to
obtain from the parties
all information and details with regard to
the assets comprising the joint estate (movable, immovable, tangible
or intangible);
2.2
the right to accumulate details of all liabilities of the joint
estate;
2.3
the right to obtain information regarding the financial affairs of
the parties from bank managers,
building societies, managers or any
other financial institutions where monies are held or may have been
invested;
2.4
the right to obtain information from auditors of companies, close
corporations, trusts or businesses
in which the joint estate may have
an interest; or business and personal accountants with regard to
personal affairs and tax matters
and any other person who may have
knowledge of the affairs;
2.6
the right to obtain and call for balance sheets and financial
statements in respect of all
companies or businesses in which the
parties have interest;
…
2.11
the right to afford both parties personally the opportunity to make
recommendations to him/her about any
matter relevant to his/her
duties and to identify any purchaser as well as the purchase price of
any asset …
2.12
the right to give due consideration to the wishes of the parties
pursuant to the representations made by
them and make such decisions
in respect thereof as he may deem fit;
2.13
the right to sell any assets to either of the parties for a price
that he/she deems to be the true market
price of the assets;
…
2.17 in
particular, the Receiver/Liquidator is empowered to distribute and
allocate the movable assets of the
joint estate between the Plaintiff
and the Defendant and will not be obliged to realise/sell all the
assets of the joint estate;
2.18
the right to pay the liabilities of the joint estate;
…
2.20 the
right to direct, in terms of Section 7(8) if the Divorce Act, 70 of
1979 (as amended), read together with
Section 37B
of the
Pension
Funds Act, 24 of 1956
that a portion not exceeding 50% of a party’s
pension interest as at date of divorce shall accrue to the other
party on the
following basis:
2.20.1 the
Receiver/Liquidator shall require the relevant pension and/or
provident fund concerned to make an endorsement to its
records
accordingly; and
2.20.2
to direct and authorise that the accrued portion of the pension
interest may be paid, ceded and/or transferred to the other
party or
such alternative fund as the other party may nominate, as soon as
possible after the necessary endorsement has been made,
and in
accordance with the rules of the relevant pension and/or provident
fund concerned…
[15]
[18]
The Powers, as stated above, incorporate the provisions of
section 38
of the
Superior Courts Act 10 of 2013
, the Uniform Rules of Court and
the general powers of trustees in terms of the
Insolvency Act 24 of
1936
. The Settlement between the respondents is also incorporated as
part of the Divorce Order. I deal, next, with some of the legal
principles applicable to the issues requiring determination in this
application.
Applicable legal
principles
[19]
Section 38
of the
Superior Courts Act, placed
in focus by the Powers,
refers to a ‘referee’ appointed by a court to conduct
investigation in civil proceedings. It
reads in the material part:
(1) The
Constitutional Court and, in any civil proceedings, any Division may,
with the consent of the parties, refer—
(
a
) any matter
which requires extensive examination of documents or a scientific,
technical or local investigation which in the opinion
of the court
cannot be conveniently conducted by it; or
(
b
) any matter
which relates wholly or in part to accounts; or
(
c
) any other
matter arising in such proceedings,
for enquiry and report to
a referee appointed by the parties, and the court may adopt the
report of any such referee, either wholly
or in part, and either with
or without modifications, or may remit such report for further
enquiry or report or consideration by
such referee, or make such
other order in regard thereto as may be necessary or desirable.
(2) Any such
report or any part thereof which is adopted by the court, whether
with or without modifications, shall have
effect as if it were a
finding by the court in the proceedings in question.
(3) Any such
referee shall for the purpose of such enquiry have such powers and
must conduct the enquiry in such manner
as may be prescribed by a
special order of the court or by the rules of the court …
[20]
The Divorce Order, naturally, provided for the dissolution of the
marriage between the respondents,
the Settlement and the Powers. The
Powers are extensively quoted above. The following is material for
current purposes regarding
the Settlement:
[t]hat
the claim in terms of prayer 3.4 of the Defendant’s
counterclaim, as amended, as well as the issue of costs be separated
from the remaining claims, and the determination of said claim and
costs shall be postponed
sine
die
to
a trial date to be allocated by the registrar, alternatively a
preferential trial date to be allocated by the Deputy Judge
President…
[16]
[21]
What appears immediately above from the Settlement is relevant to the
objection(s) regarding
payment of legal costs. It is clear that the
respondents agreed to defer the issue of costs, among others, for
later determination
by the Court. This, obviously, will be costs of
the divorce action. In the Powers, in the portion not quoted above,
the applicant
is ‘obliged to collect all assets, discharge all
liabilities and pay to the parties after deduction of his fees and
the legal
costs of the parties in the divorce action an interlocutory
applications in that action’.
[17]
I will say more on this below.
[22]
The provisions of the
Matrimonial Property Act 88 of 1984
(‘the MPA’) are also relevant. Section
15 thereof is more relevant, as it provides for powers of spouses,
and provides
as follows in the material part:
(1) Subject
to the provisions of subsections
(2), (3)
and (7),
a spouse in a marriage in community of property may perform any
juristic act with regard to the joint estate without
the consent of
the other spouse.
(2) Such a
spouse shall not without the written consent of the other spouse—
(
a
) alienate,
mortgage, burden with a servitude or confer any other real right in
any immovable property forming part of the joint
estate;
(
b
) enter into any
contract for the alienation, mortgaging, burdening with a servitude
or conferring of any other real right in immovable
property forming
part of the joint estate;
(
c
) alienate, cede
or pledge any shares, stock, debentures, debenture bonds, insurance
policies, mortgage bonds, fixed deposits or
any similar assets, or
any investment by or on behalf of the other spouse in a financial
institution, forming part of the joint
estate;
…
(3) A spouse
shall not without the consent of the other spouse—
(
a
) alienate,
pledge or otherwise burden any furniture or other effects of the
common household forming part of the joint estate;
…
(9) When
a spouse enters into a transaction with a person contrary to the
provisions of
subsection
(2)
or (3)
of
this section, or an order under section 16 (2), and—
(
a
) …;
(
b
)
that spouse knows or ought reasonably to know that he will probably
not obtain the consent required in terms of the said
subsection
(2)
or (3),
or that the power concerned has been suspended, as the case may be,
and the joint estate suffers a loss as a result
of that transaction,
an adjustment shall be effected in favour of the other spouse upon
the division of the joint estate.
[23]
It is submitted on behalf of the first respondent that section 15(9)
of the MPA is
relevant to the determination to be
made in this matter. Section 15(9) proscribes certain juristic acts
by a spouse married in community
of property regarding the joint
estate without the consent of the other spouse. It is argued on
behalf of the first respondent
that where such juristic acts are
performed contrary to section 15(9) the receiver or liquidator ought
to properly investigate
and consider representations by the former
spouses with a view to effect adjustments were required. The Court,
it is further submitted,
may be approached in the event of
disagreements for a final ruling. The Court, it is also submitted,
has the privilege of further
oral and other evidence to either
confirm, amend or clarify the account and grant, where necessary,
further and alternative relief
to enable the liquidator to bring the
joint estate to practical conclusion.
[24]
The jurisdiction of the Court, envisaged above, is comparable to that
exercisable by the Court
under
section 38
of the
Superior Courts Act,
it
is also submitted on behalf of the first respondent. The latter
cloaks the Court with the discretion regarding the report of a
referee appointed in terms of the provision, and the Court may either
‘adopt the report of any such referee, either wholly
or in
part, and either with or without modifications, or may remit such
report for further enquiry or report or consideration by
such
referee, or make such other order in regard thereto as may be
necessary or desirable’.
[18]
[25]
The first respondent, also, relies on the decisions of this Division
in
Darmalingam
NO v Marques and Another
,
[19]
M
v M
[20]
and
SSM
v PJNO and Another
[21]
to urge this Court to make adjustments where the second respondent is
found to have disposed of the assets in the joint estate
without the
consent of the first respondent, as his then spouse.
[26]
The applicant agrees with the first respondent that the remedy for
any loss suffered by a spouse
who did not consent to the impugned
juristic act is an adjustment in favour of such party in terms of
section 15(9)(b)
of the MPA upon the division of the joint
estate.
[22]
But, the applicant
considers the first respondent’s invocation of that provision
to be misplaced. The applicant also relied
on the decision in
M
v M
[23]
to advance its case that a call for an adjustment in terms of the
provision ought to be pleaded and ventilated during the divorce
proceedings so that, if allowed, they form part of the order made by
a court decreeing the divorce. For a receiver or liquidator
may only
effect adjustment ordered by a court. This is not the case in this
matter, it is submitted. But counsel for the first
respondent
retorted on the basis of the holding in
Darmalingam
v Marques
[24]
that
adjustments
may be effected even at the stage when the Court is seized with an
application to overcome an objection against a liquidator’s
account
.
[25]
Other legal principles would be dealt with as they emerge in the
discussion of the issues requiring determination, below.
Issues requiring
determination
[27]
From what appears above, the issues to be determined in this
application are the segmented parts
or grounds for the Objection,
summarised above.
[26]
But the
first respondent raised further grounds of opposition in her
answering affidavit(s) concerning the following: (a) shares
in
Coldline Food Brokers (Pty) Ltd, and (b) the Dullstroom property. She
also urged the Court to remove the applicant from the
office of
receiver or liquidator. The applicant objected to the latter grounds
or issues on the basis that they have not been properly
raised. More
on the latter, below.
[28]
Further, from the issues stated above, there may be other issues,
being of an ancillary nature,
which may creep into the discussion of
the above issues. And the discussion may reveal some interlinkages
between the issues, where
this proves unavoidable.
Nyumbani Objection
[29]
Because of the manner in which the issues are raised and the essence
thereof, I will –
in the anterior - reflect the case (and
submissions on behalf) of the first respondent and those of the
applicant in the posterior.
This does not speak to the burden to
establish the material issues, but their sequence in logic. This
approach will be repeated
even when dealing with the other grounds of
the Objection and those beyond.
[30]
The Nyumbani Objection is on the basis that the sale of the 14.25%
members’ interest held
by the second respondent in Nyumbani
Investment CC (‘Nyumbani’) ought to be dealt with as one
indivisible transaction
with the loan account in the amount of value
of R406 172 payable by Nyumbani to the second respondent.
Nyumbani owns an immovable
property situated at 33 Windsor on Vaal to
which the interest relates. Effectively, the objection is that the
applicant ought to
first recover the monies represented by the loan
account and distribute same with the proceeds from the sale of the
members’
interest.
[31]
The first respondent argues that the transfer of her half share of
the second respondent’s
membership interest in Nyumbani would
be highly prejudicial to her as she would have to purchase the second
respondent’s
portion of the interest into her name. And the
first respondent is saddled with the added liability regarding the
loan account.
Besides, the first respondent does not bear the
responsibility to realise the assets of the joint estate, as this is
for the applicant
as the appointed receiver or liquidator. And,
further, that the second respondent unilaterally (without the first
respondent) purchased
the members’ interest in Nyumbani, to
start with, although he used funds from the joint estate. The first
respondent also
suggests that the full members’ interest in
Nyumbani be transferred to the second respondent against payment by
the latter
to her of the equivalent of 50% of the members’
interest and loan account, as she has no interest or desire to be
part-owner
or interest-holder in Nyumbani. She cannot afford the
contributions, the argument concludes.
[32]
The applicant dismisses, as unfounded, the Nyumbani Objection. It is
argued on behalf of the
applicant that monies owed to the joint
estate in terms of the loan account would not be affected by the
distribution of the member’s
interest. Any right to pursue what
is due under the loan account is unaffected by the transfer of the
membership interest to the
first respondent. Further, the first
respondent’s refusal to accept a distribution in
specie
,
is rejected on behalf of the applicant as lacking a basis in law,
especially given the fact that the loan account is an asset
in the
joint estate and not a liability. It is not in the best interests of
the parties to realise the loan account through litigation
as this
would be at a significant costs to the joint estate, the applicant
further contends. And the Powers include the division
of the assets
in
specie
.
[33]
Starting from the tail-end of the submissions, I agree with the
applicant that he is indeed empowered
to distribute or divide the
movable assets between the respondents in
specie
and is
‘not … obliged to realise/sell all the assets of the
joint estate’.
[27]
I
also agree with the applicant that both the member’s interest
and the loan account are dealt with together in the Second
L&D. I
don’t agree that the first respondent has to do anything than
requesting the accounting officer of Nyumbani to
effect changes in
the corporate records of Nyumbani so that they accordingly reflect
the division of the membership interest currently
held by the second
respondent. There is no added responsibility to realise the assets of
the joint estate, as the applicant had
undertaken to sign whatever
documentation required in this regard. The Powers do not empower the
applicant to force the second
respondent to buy-out the first
respondent. It is up to the first respondent to decide what to do
with her 50% of the members’
interest and loan account. It is
also irrelevant how the acquisition of the interest came about and
that the first respondent is
uninterested in being a part-owner or
interest-holder in Nyumbani. Therefore, this ground for the Objection
is found to lack merit
and is dismissed.
Cheque
and Credit Account Objection
[34]
This ground of the Objection is against the payment of the debit
balance of the cheque and credit
account held by the second
respondent from funds of the joint estate. The first respondent says
these expenses accrued after the
separation of the spouses for the
sole benefit of the second respondent.
[35]
According to the first respondent a large portion of the expenses in
focus under this ground
for the Objection were incurred by the second
respondent for payment of his own personal expenses and were payments
which were
made pursuant to the order under the
Rule 43(6)
proceedings. Payment or settlement of the expenses from the joint
estate would diminish the value thereof to the detriment of the
first
respondent and sole benefit of the second respondent, it is submitted
on behalf of the first respondent.
[36]
The applicant’s case is that the payments were made when the
respondents were still legally
married to each other and, thus, the
impugned expenses or debts were also those of the first respondent.
The spouses shared not
only the assets of the joint estate, but the
liabilities too until the Divorce Order.
[28]
Further, that the payment was made in the best interests of the joint
estate and not for the personal gain of the second respondent.
This
is disputed by the first respondent, primarily because the applicant
did not mention or provide proof of how the expenses
were incurred.
It is also argued on behalf of the applicant that issues regarding
the proceedings in terms of Rule 43(6) are beyond
the Powers, as they
were separated in terms of the Divorce Order. Further, that the
payment of the expenses under this ground for
the Objection was
reflected in the First L&D which attest to the complete and
transparent nature in which the applicant handled
the issues. The
first respondent failed to object to the First L&D, despite
having ample opportunity to do so. The current
objection on this
ground is the first respondent’s revisitation of the relevant
issues already accounted for and finalised,
having a dilatory effect
to the finalisation of the winding up of the joint estate. Also, that
the applicant, further, says that
the contribution towards costs by
the second respondent relating to the Rule 43(6) proceedings was made
from the joint estate before
the applicant was appointed.
[37]
It is my view that this ground of objection seeks to undo the First
L&D after it was confirmed.
This is contrary to the Powers
forming part of the Divorce Order of this Court.
[29]
The impugned expenses are only reflected in the Second L&D
to effect a credit in favour of the joint estate in the amount
of
R5.69, which appears to have arisen from an overpayment. A proper
approach would have been the first respondent taking steps
for the
revisitation of the First L&D by the Court, which would have to
commence with variation of the Divorce Order housing
the Powers. The
issues in this ground for the Objection do not relate to the Second
L&D and, therefore, the objection or ground
will also be
dismissed.
First
and Second Legal Costs Objection
[38]
This First Legal Costs Objection is in reaction to the applicant’s
view that the first
respondent’s legal costs is not a debt of
the joint estate. The first respondent objects to the applicant’s
view or
conclusion as, according to her, the legal costs incurred by
the second respondent were paid from the joint estate. The Second
Legal Costs Objection is to the effect that the applicant failed to
cater for payment of legal costs of the first respondent’s
previous attorneys. The first respondent is of the view that
provision ought to be made for payment of the costs as the matter
is
under dispute in this Division under case number 2021/23626.
[39]
As part of these grounds of the Objection, the first respondent
argues that the assets of the
joint estate were used to settle legal
costs incurred by the second respondent when the second respondent
had the necessary financial
means to do so by his own. On the other
hand, she struggled for funds to pay her outstanding legal costs. The
Second L&D ought
to have provided for her legal expenses.
Therefore, the first respondent urges this Court to reject the Second
L&D and direct
that same include her legal costs.
[40]
The applicant’s case under these grounds of objection includes
that the issues relating
to legal costs are beyond the scope of the
Powers afforded to him as they are reserved to be determined
separately by the Court.
The applicant denies that the second
respondent’s legal costs were paid from the funds belonging to
the joint estate. It
is submitted on behalf of the applicant that the
payment was made from an inheritance the second respondent received
from his late
mother. And the inheritance was excluded from the
second respondent’s marital regime through a testamentary
provision. Further,
that the second respondent also utilised the
proceeds from the sale of the watches to settle his legal bills. The
latter is dealt
with further under the next objection.
[41]
I agree with the submissions on behalf of the applicant that issues
pertaining to legal costs
were deferred for later determination by
the Court in terms of the Settlement between the respondents,
incorporated in the Divorce
Order.
[30]
This appears to be contradicted by the Powers granted to the
applicant,
[31]
although
nothing would turn on this.
[42]
These grounds for the Objection clearly relate to the views expressed
by the applicant, as opposed
to a line item in the Second L&D,
and the utilisation of the proceeds from sale of watches. Therefore,
save in as far as it
relates to the latter, these grounds are
dismissed.
Watches
Objection
[43]
The Watches Objection relates to the first respondent’s view
that the applicant failed
to take under his control the watches
belonging to the second respondent eventually sold by the latter for
his sole benefit.
[44]
The watches complained about here are of luxury makes, including
Rolex, Omega and Phillip Patek.
But the applicant doubts the veracity
of what he brands an ‘extensive list of watches’ supplied
in the first respondent’s
supplementary answering affidavit. He
says the list has been disputed by the second respondent. It is also
stated that the latter
informed the applicant that he sold all his
watches in 2020 for an amount of R70 000. This was prior to the
appointment of the
applicant as receiver or liquidator, which was in
2023 and when the respondents were separated, and, thus, before the
Divorce Order.
Therefore, it would have been physically impossible
for the applicant to have taken the impugned watches into his
possession, it
is pointed out on behalf of the applicant.
[45]
According to the applicant, he also lacks authority to deal with
issues relating to the alleged
use by the second respondent of the
proceeds from the sale of the watches to settle his legal bills
relating to the Rule 43 application.
The legal costs issue are still
to be determined by the Court in separate proceedings. I hasten to
point out that I do not agree
with the latter statement. What is
deferred for later determination are costs in the divorce action.
Therefore, any other costs,
unless they have been directed to be
‘costs in the divorce action’,
[32]
are not deferred. But this is not to say that such costs ought to be
paid from the joint estate.
[46]
This complaint or ground for the Objection relates to what occurred
in 2020. But this was after
the divorce had already been instituted.
And it concerns – what at face value appears to have been -
valuable assets of the
joint estate disposed of for an amount of R70
000. This issue did not form part of the First L&D and the Second
L&D. The
issue requires further investigation by the applicant,
particularly regarding whether the assets were not sold in the manner
and
extent prejudicial or resulting in a loss to the joint
estate.
[33]
Subject to what
the second respondent may have to say, the first respondent may be
entitled to half of the proceeds from the sale
of the watches in the
amount of R70 000 or whatever amount the applicant’s
investigation may reveal. But in the meantime,
I will direct that the
applicant amend the Second L&D to reflect that an amount of
R35 000 due and payable to the second
respondent in terms
thereof is carried over to the next account. This would cater for a
possible crediting of this amount to the
first respondent as her half
share, should the facts so suggest. I will also direct that the
applicant conduct an investigation
in this regard.
Momentum
Objection
[47]
According to the applicant, the Divorce Order does fall short of the
provisions of
section 7(8)(a)
of the
Divorce Act 70 of 1979
for
failure to reflect details of Momentum Pension Fund. Momentum did not
give effect to the Settlement between the respondents
in this regard.
The first respondent’s ground of Objection under this part is
that the applicant did not provide for payment
of legal costs by the
joint estate to secure the release of the first respondent’s
share of pension fund from Momentum. The
first respondent appears to
expect a legal battle and, thus, a requirement for legal services in
this regard with Momentum. The
joint estate, it is contended, ought
to pay the legal fees occasioned by the efforts by the first
respondent or on her behalf in
securing the release to her of 50% of
the second respondent’s pension fund administered by Momentum.
[48]
The applicant, says the joint estate lacks funds to litigate against
Momentum. To overcome Momentum’s
refusal to note the first
respondent’s interest in the second respondent’s pension
fund, the applicant sought consent
of the first respondent for the
variation of the Divorce Order to render it compliant with
section
7(8)(a)
of the
Divorce Act, but
in vain. The first respondent
withheld her consent, but instead, indicated that she intends to
initiate legal proceedings against
Momentum on her own. The applicant
labels the latter approach, on the part of the first respondent,
architecture of own misfortune,
which invalidates this ground of
objection. But during the hearing counsel for the applicant appeared
to suggest that the issue
has been resolved as the Momentum pension
funds may have been received and paid over to the applicant, in whole
or in part. This
appears from the applicant’s supplementary
affidavit. I expressed my concerns during the hearing that the second
respondent
may have acted contrary to the Divorce Order in this
regard. The value of the second respondent’s pension fund is
unclear
to me. Therefore, it is not possible to consider making
adjustments in the Second L&D in this regard. All I will be able
to
direct is that any payment due to the second respondent in terms
of the Second L&D be deferred until the second respondent has
satisfied the applicant that he has accounted to the first respondent
for her 50% interest in his pension funds. Therefore, this
objection
is upheld only in its varied form, as aforesaid.
Post Objection
grounds
[49]
It is common cause that the first respondent raised other grounds of
objection against the Second
L&D further from those in the
Objection (i.e. the notice of objection lodged by the first
respondent on 18 April 2024), reflected
above.
[34]
These relate to an alleged 50% shareholding by the second respondent
in Coldline Food Brokers (Pty) Ltd (‘Coldline’),
and an
alleged 50% interest in favour of the second respondent in an
immovable property situated in Highlands, Dullstroom (‘the
Dullstroom property’), already disposed of without the second
respondent accounting to her for her 25% share or interest.
I,
conveniently, refer to these grounds or issues as the
‘Post-Objection’ grounds.
Coldline objection
[50]
According to the first respondent, the second respondent is a
director and 50% shareholder in
Coldline. She seeks her half share
(i.e. 25%) in the 50% shareholding allegedly held by the second
respondent in Coldline. The
first respondent criticises the applicant
for not realising the shareholding in Coldline and reflecting same in
the Second L&D.
According to the first respondent, the
applicant’s excuse was that there is simply no value in
Coldline without any independent
verification of this. It is argued
on behalf of the first respondent that Coldline remains ‘in
business’ according
to the records of the Companies and
Intellectual Property Commission or the CIPC. This renders the Second
L&D ‘inaccurate’
and not providing a true reflection
of the position of the joint estate of the respondents. It is further
argued that the second
respondent previously misappropriated proceeds
from the sale of movable assets of Coldline in the amount of about
R1.6 million,
which the applicant has not factored into the Second
L&D. The applicant simply dismissed the first respondent’s
claim
without looking into it due to his attitude and bias towards
the first respondent, it is submitted. Therefore, the Second L&D
cannot be approved or confirmed by this Court.
[51]
The applicant criticises the first respondent for not disclosing when
she became aware of the
alleged shareholding by the second respondent
in Coldline, as well as for not including this ground as part of the
Objection. It
was only raised in August 2025.
Dullstroom property
objection
[52]
The first respondent says that she was informed at the beginning of
the divorce proceedings that
the Dullstroom property had been sold,
but she was never provided with her 25% share of the proceeds of
sale. The applicant says
that the respondents jointly offered the
Dullstroom property for sale around June 2018 and proceeds thereof
were utilised for the
benefit of the joint estate prior to the
divorce and, thus, prior to his appointment as receiver or
liquidator. The applicant,
again, complains that this ground did not
form part of the Objection.
Conclusion (on the
Post Objection grounds)
[53]
The applicant appears to appreciate the first respondent’s
concerns regarding the Coldline
objection and the Dullstroom property
objection, despite his attempt at justifying their omission from the
Second L&D. He says
he demonstrated his willingness to
accommodate the first respondent by amending the notice of motion to
make it clear that the
Second L&D would be subject to a
supplementary final liquidation and distribution account. The latter
step, according to the
applicant, would reflect the outcome of his
investigations into the Post Objection grounds. I agree with this
suggested approach.
The Second L&D cannot be delayed due to
future investigations. Whatever the investigations reveal would be
addressed in future
accounts, be they supplementary or sequential to
the Second L&D. There is nothing in law that all issues in a
joint estate
ought to be fully and finally determined before an
account is confirmed or approved. The fact that there has already
been the First
L&D confirms this.
The
removal of the applicant, as the receiver or liquidator
[54]
The first respondent, as part of her opposition of the relief sought,
also sought the removal
of the applicant on account of a myriad of
alleged failures to meet the requirements of his office as receiver
or liquidator. These
include that the applicant has on numerous
occasions made decisions which unfairly and exclusively benefit the
second respondent.
Consequently, it is submitted in this regard that
the applicant is not fit to be remain in that position.
[55]
The applicant opposed the call for his removal - primarily - on the
basis that the first respondent
is not making the request to the
Court by way of a counterapplication. Also, the applicant considers
it a contradiction that the
first respondent would call for his
removal whilst she has associated herself with the Second L&D in
some respects by not opposing
the relief sought by him.
[56]
I agree that a counterapplication was necessary when the first
respondent’s intention is
not only to seek the dismissal of the
application on the basis of her objections, but also relief of her
own. The second respondent
may have something to say about such
relief being sought or granted by the Court. Also, the Court is
primarily concerned with the
Second L&D and has already expressed
its views on how same is to be varied or handled in terms of the
order to be made. The
removal of the applicant in the same order –
even if a counterapplication wasn’t necessary – would not
only constitute
the reinforcement of the pillars to the structure but
a complete demolition of the edifice.
Conclusion
and costs
[57]
The applicant is successful on most of the grounds of objection. The
applicant is of the view
that as an impartial party appointed by the
Court it had to launch this application to safeguard the interests of
the joint estate.
The first respondent could have conducted herself
in a reasonable manner to avoid prejudice to the joint estate.
Therefore, the
applicant seeks that the first respondent be held
liable for costs of this application on a party and party scale.
[58]
The
applicant pursued the litigation on behalf of the joint
estate. Therefore, he is absolved from any liability as to costs from
a
personal point of view. But it also ought to be recognised that
although the first respondent’s
Objection
has slender
success, her efforts would result in the Court
ordering an investigation on very critical aspects of the joint
estate, which may
avail some positive outcomes for the joint estate.
This suggests to me that although her case had considerable blemish,
it was
not
mala fide
and deserving of some level of frowning
from the Court by way of an adverse costs order. Therefore, I will
direct that the costs
of this application be costs in the
administration of the joint estate.
Orders
[59]
In the premises, I make the order, that:
a)
t
he
applicant’s
second
and final liquidation and distribution account
(‘
the
Second L&D
’)
is hereby approved, subject to the variation in b) hereof;
b)
the applicant is directed to
amend
the Second L&D to reflect that an amount of R35 000 (thirty
five thousand rand) due and payable in terms thereof
to the second
respondent is carried over to the liquidation and distribution
account to be drafted after the Second L&D and,
thereafter, to be
awarded either to the first respondent or second respondent depending
on the outcome of an investigation by the
applicant regarding the
sale of the watches by the second respondent, referred to in
paragraphs [43] to [46] above
;
c)
the applicant is directed not to make any payment to the
second respondent in terms of the
Second L&D
until or unless the second respondent has accounted to the first
respondent for her 50% interest in his pension funds
held or
previously held with Momentum to the satisfaction of the applicant;
d)
the applicant is directed to conduct an investigation regarding the
value of
the shareholding held or previously held by the second
respondent in Coldline Food Brokers (Pty) Ltd and the ownership and
sale
of the immovable property situated in Highlands, Dullstroom
previously owned by the first and second respondents, and
e)
costs of this application, either as agreed or taxed, shall be borne
and paid
by the joint estate.
Khashane La M.
Manamela
Acting Judge of the
High Court
Date
of Hearing
: 19
August 2025
Date
of Judgment
: 8
September 2025
Appearances
:
For the
Applicant
: Mr NS
Nxumalo
Instructed
by
:
Ransley-Melvin A
ttorneys,
Johannesburg
c/o Paul du Plessis
Attorneys, Pretoria
For
the Respondent / Plaintiff :
Ms K
Howard
Instructed
by
: Spellas
Lengert Kubler Braun Inc,
Johannesburg
c/o Hack Stupel &
Ross Attorneys,
Pretoria
[1]
Gillingham
v Gillingham
[1904]
ZATransvLawRpSC 102;
(1904) 3 TS 609
(11 August 1904) at 613
observed that the
person
appointed to effect the division of the joint estate may be referred
to as ‘liquidator, receiver, or curator - perhaps
curator is
the better word’.
[2]
Divorce Order, annexure ‘B’,
CL 003-10 to 003-12.
[3]
Divorce Order, annexure ‘A’,
CaseLines (‘CL’) 003-4 to 003-9.
[4]
Pars [12]-[15] below.
[5]
Notice of Motion, CaseLines
(‘CL’) 013-1 to 013-3.
[6]
EE
Blignaut, NJ Wiechers and I Vorster,
Administration
of Estates
(LexisNexis
May 2024) at 10.1.
[7]
The
first
respondent explained the reason for the delivery of a preliminary
affidavit, as opposed to a conventional answering affidavit,
to be
due to lack of funds as the second respondent has allegedly not
complied with the Divorce Order with regard to stipulations
of the
Court regarding maintenance.
[8]
First
respondent’s preliminary affidavit par 4.1, CL 013-77.
[9]
First
respondent’s preliminary affidavit par 4.2, CL 013-77.
[10]
First
respondent’s supplementary affidavit pars 13.1 and 13.2, CL
013-98.
[11]
Par [14] below.
[12]
First
respondent’s supplementary answering affidavit par 87
et
seq
,
CL 013-107 to CL 013-109.
[13]
Par [3] above.
[14]
CL 013-43 to 013-45.
[15]
CL 003-4 to 003-9.
[16]
Court Order annexure ‘B’
(i.e. memorandum of settlement), CL 003-10 to CL 003-11.
[17]
The Powers (of the liquidator or
receiver) par 3.1, CL 003-8.
[18]
Par
[19] above for a reading of
s 38(1)
of the
Superior Courts Act.
[19
]
Darmalingam
N.O v Marques and Another
(9256/21)
[2022] ZAGPPHC 79 (31 January 2022),
per
Skosana
AJ [29].
[20]
M
v M
(82156 /14)
[2017] ZAGPJHC 354 (20 November 2017),
per
Thompson
AJ [13] (i.e. second [13] due to inadvertent errors in numbering),
[17]-[21].
[21]
SSM
v PJNO and Another
(15515/2017)
[2023] ZAGPPHC 2024 (18 December 2023) [18].
[22]
Mulaudzi
v Mudau and Others
(1034/2019)
[2020) ZASCA 148 (18 November 2020) [15].
[23]
M
v M
[2017]
ZAGPJHC 354 [17] – [19]. See also
K
C v Jordaan and Another
(B8542023)
2024 ZAGPPHC 38 (22 January 2024) [16] – [17].
[24]
Darmalingam
v Marques
[2022]
ZAGPPHC 79
[25]
Darmalingam
v Marques
[2022]
ZAGPPHC 79 at [29].
[26]
Par [15] above.
[27]
Powers at par 2.17, quoted in par
[17] above.
[28]
Darmalingam
v Marques
[2022]
ZAGPPHC 79 at [25].
[29]
The Powers par 5.4, CL 13-27.
[30]
Darmalingam
v Marques
[2022]
ZAGPPHC 79 at [27].
[31]
Par [17] above.
[32]
For example, the costs order granted
on 28 March 2018
per
Nowosenetz
AJ, CL004-1.
[33]
Section 15(9)
of the MPA, quoted and
discussed in pars [22]-[25] above.
[34]
Par [14] above.
sino noindex
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