Case Law[2025] ZAGPPHC 1073South Africa
M.L.K v Jordaan and Another (34502/09) [2025] ZAGPPHC 1073 (2 October 2025)
High Court of South Africa (Gauteng Division, Pretoria)
2 October 2025
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
You are here:
SAFLII
>>
Databases
>>
South Africa: North Gauteng High Court, Pretoria
>>
2025
>>
[2025] ZAGPPHC 1073
|
Noteup
|
LawCite
sino index
## M.L.K v Jordaan and Another (34502/09) [2025] ZAGPPHC 1073 (2 October 2025)
M.L.K v Jordaan and Another (34502/09) [2025] ZAGPPHC 1073 (2 October 2025)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPPHC/Data/2025_1073.html
sino date 2 October 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
IN
THE REPUBLIC OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 35402
/09
(1)
REPORTABLE: NO / YES
(2)
OF INTEREST TO OTHER JUDGES: NO/YES
(3)
REVISED.
(4)
SIGNATURE: N Khumalo J
DATE:
02/10/2025
Electronically
delivered
In
the matter between
M[...]
L[...] K[...]
APPLICANT
and
RUDOLPH
PHILLIPUS JORDAAN
1
ST
RESPONDENT
M[...]
O[...] M[...]
2
ND
RESPONDENT
‘
This
judgment was handed down electronically by circulation to the
parties’ representatives by email. The date and time of
hand-down is deemed to be
02
October 2025
The
appointment of a liquidator to effect or implement the division or
separation of a matrimonial joint estate at a dissolution
of a
marriage is a common occurrence especially where a huge
estate is involved
[1]
or
the parties are not in agreement on its
separation.
The parties may agree on the liquidator to be appointed or absent
such an agreement a court may, exercising its inherent
power appoint
one.
[2]
The
powers that are bestowed on the Liquidator as an administrator
authorises him to take control of the joint estate, accumulate
the
assets together with the liabilities
to
ultimately dissolve the joint estate through a fair distribution of
the net assets between the divorcees.
JUDGMENT
N
V KHUMALO J
[1]
This is an application for the removal of Mr Rudolph Pillipus
Jordaan, the 1
st
Respondent as an appointed liquidator and
receiver in the joint estate of the Applicant, Mr M L K[...] and his
ex-wife Ms M O M[...],
the 2
nd
Respondent. The Applicant
also seeks the report of the 1
st
Respondent on the
division of their joint estate to be set aside, the fees charged by
the 1
st
Respondent forfeited and the appointment of Ms
Maryna Estelle Simons in substitution of the 1
st
Respondent.
Factual
Background
[2]
The Applicant and the 2
nd
Respondent were previously
married to each other in community of property (together referred to
as the parties). Their marriage
was dissolved by an order for the
decree of divorce and division of the joint estate obtained by the
2
nd
Respondent on 14 September 2009 by default, without
the knowledge of the Applicant. On 13 November 2017, eight years
later, the
1
st
Respondent was on application by the 2
nd
Respondent, appointed as liquidator and receiver mandated to overseer
the division of their joint estate.
[3]
In fulfilling his ultimate mandate, the 1
st
Respondent was
in terms of the general powers and duties of a liquidator bestowed on
him, to collate the joint estate assets, determine
their value and or
realise them for the purpose of its division. He was in
addition thereto, in terms of a special order,
to investigate the
issue of a mortgage bond registered in favour of the Standard Bank of
South Africa against the title deed of
the immovable property in the
joint estate, to determine what transpired in respect thereof, and in
the event of the 1
st
Respondent finding that the joint
estate of the parties suffered a loss as a result of the Applicant‘s
conduct in respect
thereof, to make an adjustment in favour of the
Applicant in respect thereof.
[4]
The immovable property in the joint estate is situated within the
Westbrooke Estates,
Roodepoort, (“the property” or
“Westbrooke property”). The property was purchased
as a vacant land
for an amount of R550 000 by the Applicant
during the subsistence of the marriage and registered only in his
name on 21 December
2007. The Applicant later built a house on the
property. The couple moved into the property post their divorce
unbeknown to the
Applicant that their marriage was already dissolved
on 14 September 2009. The Applicant registered the Standard Bank bond
after
they have moved into the property. For division of the joint
estate the 1
st
Respondent needed to establish the value of
the property as at date of divorce.
[5]
The parties have reached a deadlock. They differ on what was the
state of the building
at date of divorce and thus do not agree on the
value to be attached to the property for the purpose of the division
of the joint
estate. Applicant alleges that at date of divorce, the
property was still a vacant stand. The 2
nd
Respondent on
the other hand alleges that on that date, the building or the
construction of a house was complete and in agreement
with a
valuation of the property at R2 200 000.00 obtained by the
1
st
Respondent from Root X subsequent to his appointment
in 2018.
[6]
The 1
st
Respondent prepared his 1
st
report
after receipt of statements of assets and liabilities together with
supporting documents from both parties and submissions
made on their
behalf. Applicant’s documents included reports from experts,
Municipality officials, the Home Owners Association
and some collated
by the 1
st
Respondent on his own, not being satisfied with
some of the information submitted, including the current valuation of
the property
after which he prepared his provisional and final
report.
[7]
The Applicant rejected the 1
st
Respondent’s reports
contesting the conclusion the 1
st
Respondent made based on
the Root X evaluation of the property and other assets in the joint
estate as well as the suggested distribution
of 50% thereof. The
Applicant is also dissatisfied with the way 1
st
Respondent
went about fulfilling his mandate. He accuses the 1
st
Respondent of biased and delay, hence he seeks 1
st
Respondent’s removal and his final report to be set aside.
He
alleges that the 1
st
Respondent as an agent of the 2
nd
Respondent is doing everything in his power to see
to it that the 2
nd
Respondent obtains a benefit she is not entitled
to. Accordingly the final report that was received in February 2022
from 1
st
Respondent
is leaning towards favouring the 2
nd
Respondent and therefore should be rejected.
[8]
The Applicant further alleges to have become aware that the 1
st
Respondent was extremely and completely biased in favour of the 2
nd
Respondent on receipt of the July 2018 report. This is so since the
1
st
Respondent was approached by the 2
nd
Respondent’s attorneys with preconceived instructions and ideas
to act in the capacity of a liquidator. He also had a problem
with
the reasoning in the 1
st
Respondent’s reports, and
the manner in which the 1
st
Respondent wanted to go about
exercising his mandate in fulfilment of his duties.
[9]
The Applicant accuses the 1
st
Respondent to have persisted
with his behaviour notwithstanding his attorneys sending a further
letter to the 1
st
Respondent on 15 April 2019. He further
accuses the 1
st
Respondent to have always known of his
shortcomings and flaws in relation to the valuation of the property
since the date of the
letter, but to have nevertheless in dereliction
of his court assigned duties refused to accept the various reports,
including those
from officials of the Johannesburg metro, various
independent experts, civil engineers and certificates issued by
inspectors in
respect of the building status in September 2009. He
accordingly regards the 1
st
Respondent to be biased and
his true agenda to involve favouring the 2
nd
Respondent.
[10]
The Applicant argues that the 1
st
Respondent’s final report
ignores all the
correspondence and proof by every legal measure and from all logical
reasoning, as the 1
st
Respondent has got only one purpose in this
matter, that is to benefit the 2
nd
Respondent. As a result, the 1
st
Respondent has been dragging his feet since
September 2019 not finalizing this matter and had refused to make up
his mind when he
was confronted with the truth. His attorneys finally
received t
he 1
st
Respondent’s correspondence
with an amended provisional report on 27 September 2021 with nothing
much in it. It is apparent
in the report that the 1
st
Respondent continues to ignore the overwhelming evidence that proves
that he is wrong in his valuations and assumptions. He is
also trying
to evade his duties and refuses to concede his mistakes.
[11]
Applicant points out that the 1
st
Respondent refused an
opportunity to resign or amend his report accordingly, which he was
afforded by his attorneys in March
2022, following his final report.
The 1
st
Respondent nevertheless persisted with his final
report with a flawed statement of account still based on an incorrect
valuation
of R2 200 000.00. He failed not only to make an effort to
establish the value of the property owned by the 2
nd
Respondent but also r
efused to obtain a value of
the 2
nd
Respondent’s
pension fund as at date of divorce. The 1
st
Respondent
ignored the credit that is
supposed to come to him and simply assigned some or other arbitrary
values.
[12]
He consequently approached a Ms Maryna Estelle Symes from Zebra
lnsolvency, a well-known liquidator
and receiver who has been
practicing as such for many years. Ms Symes has consented to act as
liquidator in replacement of the
1
st
Respondent. He lists
the powers he seeks Ms Symes to exercise.
[13]
The Applicant accordingly implores the court that:
[13.1]
He will suffer irreparable prejudice and harm if the 1
st
Respondent
is allowed to continue with his duties as he was willing to threaten
the Applicant with the sale of Willowbrook property
in 2019 before
his attorneys were on record.
[13.2]
The 1
st
Respondent
should not be entitled to claim any fees in respect of this matter
since he has been acting in a preconceived manner.
He did not have to
take charge of any fixed property or any bank accounts and did not
open any kind of bank account anywhere in
respect of the estate and
as such he has had no real expenses. He instead decided on the face
of overwhelming evidence to embark
on a fruitless and pointless
exercise to try and prove his preconceived ideas about the state of
completion of the property at
Wlllowbrook as at date of divorce.
[13.3]
The facts that were presented to the 1
st
Respondent
in 2018 were very clear and self-explanatory yet he decided to drag
out the compilation of a report for four years to
try and somehow
justify an undue benefit to the 2
nd
Respondent.
[13.4]
The lengths to which the 1
st
Respondent
has gone to try and prove the impossible speaks volumes as to his
true motives and the way he became appointed. He would
have brought
this application much earlier had the report been finalised but this
was only done now, eventually completed in February
of 2022.
[13.5]
He submits that once biased is found and even if it is only a
subjective opinion of one of the parties, no person
should be allowed
to act as liquidator. The way in which the 1
st
Respondent
is clinging to his appointment and the powers afforded to him under
the order of November 2017 further proves the prejudice
that he will
suffer at the 1
st
Respondent’s
hands if he is not removed and a neutral objective liquidator takes
over this matter.
[13.6]
The excuse of the 1
st
Respondent
in his report of February 2022 that he cannot cross examine parties
is absolutely untrue. The certificates issued by
independent experts
prove that there was no construction on the property at Willowbrook
on the date of divorce. Despite the
overwhelming evidence the
1
st
Respondent
clings to his version of events because that is the purpose he was
appointed for, in the first place.
[14]
Based on all these accusations the Applicant submits that it is in
the interests of justice that the
order be granted as prayed for in
the Notice of Motion
1
st
Respondent’s answer
[15]
All the allegations made by the Applicant against the 1
st
Respondent are denounced by the 1
st
Respondent as being
baseless. He denies being biased against the Applicant but points out
that the Applicant is uncooperative,
willfully refuses to cooperate
with the process as requested to do.
On
the fulfillment of his duties
[16]
He confirmed that he received from both the Applicant and the 2
nd
Respondent the asset and liability statements. The November 2009
Willowbrooke Municipality account statement indicated the market
value of the property to be R1 080 000.00, and utilities to
be R12 0000 in arrears. In fulfillment of his mandate he
obtained
valuations from Root X for all the property in the joint estate. The
immovable property was valuated at R2 200 000.00
and to be
comprised of 5 bedrooms, 3 bathrooms, 2 Lounges, a Guest toilet,
kitchen with pantry, scullery and lock up garages. He
noted that the
Applicant seems to suggest that the whole structure built on the
vacant land was started and completed between 15
September and
November 2009. Whilst his opinion concluded from reading the
certificates received from the Applicant and the valuation
report, is
that the construction of the property ought to have been completed or
at an advanced stage at date of divorce.
.
[17]
He received responses on his 1
st
report of 9 May 2018 from both parties by 28 May
2018. The Applicant was not satisfied with the report, he disputed
the Root X valuation
on the complete structure, unless valued as a
vacant stand at the date of divorce. The 2
nd
Respondent‘s submission on the other hand
was that the building was already complete on date of divorce,
and
they moved in as early as December 2009
.
In the report he had called for a party that disagrees with his
valuation to submit alternative evaluations within 30 days of
receipt
of the report.
[18]
On 31 May 2018, the Applicant submitted a one pager valuation that
reads, “17 December 2017,
market value as at 15 September 2009”
as if the property was a vacant serviced stand”. The 1
st
Respondent did not agree with the Applicant that the valuation shows
the property to have been a vacant stand on date of divorce,
on the
basis that it is a retrospective estimation had the property been a
vacant stand at date of divorce. The 2
nd
Respondent on the
other hand submitted a screen shot of a facebook post by the
Applicant’s son dated 11 December 2009, showing
a photograph of
a fully built structure on the property. He later received the real
photo in February 2021. He had taken into consideration
that the
photo was taken in December 2009 and when comparing it with a picture
taken in 2018, the indication is that in 2009 at
date of divorce
there was at least a structure.
[19]
He responded to both parties’ submissions indicating that the
improvements resulted in the property
being evaluated at R2 200
000.00. “
This according to him implies that there was an
extensive capital applied in the improvement of the structure after
date of divorce,
however
,
no proof of such has
been received”.
He therefore could not comment any further
on that aspect. He asked the Applicant to submit documentary proof of
the funds applied
and invoices of the expenses incurred to
substantiate the Applicant’s allegations that at date of
divorce there was no structure,
the expenditure on the construction
commenced thereafter.
[20]
The Applicant’s response on 23 August 2018
was a refusal to provide any further documentation or invoices
that
will prove that the house was built after the date of divorce. The
Applicant instead made unfounded allegations that he was
biased. The
2
nd
Respondent submitted her secondary documentary proof
on 6 September 2018. On 5 November 2018 he addressed correspondence
to the
Applicant requesting clarification on specific issues. There
was no reply until January 2019 when the Applicant appointed a firm
of attorneys, who also ignored his letter of 5 November 2018 and
instead sought his removal.
[21]
He has deduced from the Electrical Compliance Certificate of 5
November 2009 that the roof must have
been completed at that time as
the electrical wiring cannot be done unless the roof and ceiling are
finalized. He however, was
disputing the Certificate dated 15
September 2009 on the Foundation. According to him the date indicates
when the certificate was
issued not when the inspection was done. The
foundation report was not attached, which could have indicated the
date on the progress
report and photographs at specific stages. He
tried to contact Mr Joubert, the appointed civil engineer without
success and ultimately
found that he was disbarred on 14 August
2019
.
His further correspondence to Applicant’s
attorneys was responded to with various insults and allegations.
Inflating
the property value to increase costs.
[22]
He argues that Applicant’s accusation that he is inflating the
value of the property so that
his fees can increase has no merit, but
a bullying tactic to pressure him to amend his property valuation to
the amount of R550 000,
despite the evidence that is to the
contrary. He refutes the likelihood of the property having been built
in a month and a half
and emphasized the importance of Joubert’s
evidence under affidavit and the documentary evidence of invoices and
payments
to prove the expenses incurred after the divorce, to
expedite the process.
[23]
Applicant’s attorneys are said to have continued to ignore the
contents of his communication
persisting with accusations of his bias
towards 2
nd
Respondent. They called for him to furnish
them with a final and correct factual liquidation and distribution
account failing which
they threatened to apply for his removal
.
The
effect of failure by Applicant to furnish further information or
documentation
[
24]
1
st
Respondent
argues that should the Applicant have provided him with the
information he had requested, the relevant amendment could
have
easily been effected on the liquidation and distribution account
.
Without further substantiation, he
couldn’t amend the valuation as at date of divorce to be any
other amount. He indicated
that he has proceeded to request from the
financial institutions copies of financial statements of the parties
in order to verify
the information. During the period 2020 to 2021
they made verifications from the bank statements received and could
not find anything
that is proof of purchase after the date of
divorce.
[25]
He visited the Municipality and contacted Woodbrooke Estate
Management for further information. The
2
nd
Respondent
also furnished him with more information and received nothing from
the Applicant. The information from the Estate Management
indicates
that the property was a vacant stand when registered on 21 December
2007. The Management received building plans on 13
February 2008 and
payment of the administration fee for the plans on 21 February 2008
and they were approved on 27 February 2008.
On 7 September 2009
the Applicant was informed
that the building must be finished and
a Certificate of Occupancy submitted
. On 23 September 2009 the
Applicant and the 2
nd
Respondent were issued with remotes
to the estate. On 1 October 2009 the Estate Management started
charging penalties for failure
to obtain a certificate of occupancy.
On 29 March 2010. the Applicant agreed with the Management for the
penalties to be held back
until July 2010.
[26]
He, requested more statements from the 2
nd
Respondent in 2021 after Covid. In January 2021 he attended a meeting
with the Council to verify the Occupational certificate by
Willowbrooke. He was told that the dates are unreliable. He therefore
continued with his investigation. He requested an affidavit
from
Willowbrooke Management in 2021. They did not cooperate even after
his attorneys formally made the request.
[27]
On 27 September 2021 he distributed an amended provisional report.
The Applicant still wanted him to
reflect the property value to be
R550 000, notwithstanding that the municipality value was
R1 080 000 as in November
2009. Applicant persisted that
the property was an open piece of land thus not occupiable and 1
st
Respondent could have established that by enquiring if parties
resided there at the time. According to him the question is not
whether the property was occupiable but whether the structure was
already completed or at a very advanced stage of construction.
Even
if at the least the Municipality account and all extra evidence is
ignored and the Applicant’s version is accepted,
construction
had already commenced before 15 September 2009 in terms of the
Foundation inspection certificate and as such the property
could not
have been an open piece of land at the time of the divorce.
[28]
After receiving further information from the
parties he compiled his final report and submitted it on 21
February
2022. He received a response from 2
nd
Respondent on
queries raised by the Applicant’ on the Landhoven property. On
10 March 2022 he received a response from Applicant’s
attorneys
who once again disregarded all the information submitted to them and
instead threatened him. He never received the information
he required
from the Applicant to fulfill his duties. Applicant seems to suggest
that the whole building was started and completed
between 15
September and November 2009. In his opinion reading from the
certificates and valuation report, he concluded that the
construction
on the property ought to have been either completed or at an advanced
stage as at date of divorce.
[29]
He confirms that the following documents were submitted by the
Applicant. The final Occupancy Certificate
dated 26 July 2010. A
Completion Certificate by the Municipality dated 9 December 2009. A
Completion certificate on the foundation
inspection dated 15
September 2009. Completion certificate on Lithol and concrete slab
dated 6 November 2009. Roof loading certificate
dated 10 November
2009. Engineering completion certificate dated 10 September 2009.
Certificate on Occupational Safety and for
Electrical Installation
dated 5 November 2009. Plumbing Compliance Certificate of the City of
Johannesburg dated 26 July 2010.
He says all this implies that the
construction on the property was initiated before the date of
divorce. The property was already
at an advanced stage of
construction at the date of divorce. As no bond was registered, he
needs to know which and how much of
the joint estate’s funds
were applied and what was the value of the improvements made as at
date of divorce.
[30]
He challenges the timelines presented in the
certificates as unlikely and argues that the certificate of
occupancy
shows this impossibility when it indicates the foundation and slab
inspection to have happened it seems at the same date
on 15 September
2009. Whilst the Completion Certificates in respect thereof indicate
an inspection date of 15 September and 6 November
2009 and finally
signed off on 9 December 2009. According to him the dates are
unreliable as they differ so vastly. He reckons
it would be reckless
and irresponsible of him to accept the dates on the certificates
without a full and further investigation,
which is an indication of
his impartial and independent stance in the matter.
On
the delay
[31]
According to him, the delay on his part was caused
by the attempts he made to contact Mr Joubert the civil
engineer whom
he found out was disbarred. His investigation documentation exceeds
1000 pages. He has only attached the relevant
documents to the final
report. He also did not want to respond to defamatory statements
towards his character and integrity.
On
the extra costs incurred
[32]
He persists that it is the Applicant who was refusing to furnish him
with documentation to prove his
version. He therefore avers that it
was due to the Applicant’s refusal to co-operate that he
incurred extra costs as he had
to conduct lengthy investigations with
the Municipality, Willowbrooke and the banks. He also had to appoint
attorneys to assist
him with the investigation. The costs include the
valuation costs as well.
[33]
He battled with the truthfulness and impossibility of the Applicant’s
version and the credibility
of the Municipality Occupational
Certificate, the timelines of which are unrealistic.
[34]
He agrees with the relief sought by the 2
nd
Respondent. As
according to him it is in the interest of justice and will bring
finality to the matter. He accuses the Applicant
of wanting to delay
the process by applying for his removal and to get an opinion which
will suit the Applicant’s pocket
and his needs whilst acting to
the detriment of the joint estate and respective parties involved.
[35]
The 1
st
Respondent further argues that due to the gross abuse of the court
process by the Applicant and misinterpretation of the facts
to suit
his version, the defects in his application, his non-compliance with
the rules and the fact that he did not come to court
with clean hands
and does not take the court into his confidence by failing to
disclose the true facts, making baseless accusations,
a cost
order should be granted against the Applicant on attorney and client
scale.
The
1
st
Respondent submits that the cost order forms part of the joint estate
and the costs be allocated to Applicant’s 50% share.
2
nd
Respondents answer
[36]
According to the 2
nd
Respondent the Applicant has perjured
himself in various respects, made objections on the report and
brought these proceedings
to delay the conclusion of the separation
of the joint estate. She suffers an
enormous
prejudice whilst the Applicant continues to enjoy the benefits of the
use of the property, the largest physical asset of
the joint estate
and the erstwhile matrimonial home where Applicant continues to
reside whilst she has no benefit in respect thereof
even though she
is entitled to also share in the value thereof.
[37]
On the final report, she concurs with the 1
st
Respondent
that the
1
st
Respondent has not misconducted himself in
relation to his duties, neither has he committed a gross
irregularity, exceeded his powers
nor brought out the report
improperly. The report is not patently unreasonable, irregular or
incorrect. As such the report must
be accepted. She denies that there
are any grounds for the 1
st
Respondent’s removal.
[38]
She confirms all that relates to her that is mentioned in the 1
st
Respondent Affidavit. She further points out the time that has passed
since the divorce and the 1
st
Respondent’s
appointment 8 years following the decree of divorce, that they are
still squabbling and have not finalized the
division of their joint
estate. She therefore argues that the order sought by the Applicant
will cause a further delay whilst the
process starts
de novo
.
In the meantime, the Applicant continues to benefit from the joint
estate, not paying rent or for accommodation whilst she has
to incur
accommodation costs despite being a co-owner thereof.
[39]
According to her the construction on the property was started and
completed before 15 September
2009, the date of divorce. They moved
in, in November 2009 into a completed structure. As proof she
referred to the photo posted
on social media by her stepson on 11
December 2009. A mostly completed immovable property is reflected.
She alleges the photo to
show a completed structure which according
to her proves that the structure was complete as at date of divorce.
The improvements
on the property were on date of divorce at such an
advanced stage that they were able to move in and occupy the said
immovable
property during November 2009.
[40]
On 5 March 2008 they sold an immovable property situated at
Weltevredenpark, registered
in the name of the Applicant for a sale
price of R1,015,000.00. It was transferred to the name of the
buyer on 6 August 2008.
The proceeds received from that sale were
received and applied by the Applicant to construct and improve the
Willowbrooke property.
[41]
On 4 May 2009 before the date of divorce she also sold her house in
Lindhaven, Johannesburg for
a sale price of R500,000.00. The
purchaser paid off the bond owing in an amount of R320,000.00. The
Applicant collected the outstanding
amount of approximately
R180,000.00 from the purchaser, which was paid in cash instalments as
per the agreement with the purchaser
until registration of transfer
on 16 October 2009. The money was applied towards the construction
and improvement of Willowbrooke
property.
[42]
On 5 May 2008 she received a pension payout in an approximate amount
of R355,000.00. She paid
an amount of R300,000.00 to the Applicant on
11 September 2008 for purposes of also utilization towards the
construction and improvement
of the Willowbrooke property.
[43]
She confirmed that according to the Willobrooke Estate Management the
property was supposed to
have been fully developed by September 2009
and penalties were payable from October 2009. The Applicant
negotiated an extension
to obtain an Occupational Certificate by July
2010.
[44]
The Applicant registered a bond on the Willobrooke property on 28
September 2010 after the divorce,
in the amount of R440 000
without her consent or knowledge. She moved out of the property
during December 2010 which she indicated
must be sold. The Applicant
wanted to retain the property
.
[45]
According to her the 1
st
Respondent has done all that he was required to do
whereafter he submitted his final report. She sees no reason why he
must not
be paid his fees and for somebody else to be appointed. She
challenges the relief sought by the Applicant for appointment of Ms
Symes whom he has unilaterally chosen and for the 1
st
Respondent and herself to pay costs on an attorney
and client scale, as ridiculous. S
he instead calls for the
application to be dismissed, and the Applicant to pay the costs on an
attorney and client scale.
[46]
She seeks in a counter application that the final report be
accepted, and the Applicant be ordered to pay her an amount of
R986 639.65
in the distribution of the joint estate.
Applicant’s
reply
[47]
In his reply the Applicant maintains that the
divorce was before the property was built. He
alleges that the 2
nd
Respondent opportunistically tried to steal from
him after she had
obtained a decree of divorce behind his
back. She had told him to
ignore the summons that
was served on him for a divorce as she was just "angry" and
"did not mean it." At the
time there was nothing but an
empty stand.
[48]
He does not agree that the final report should be accepted. He
insists to have built the house
with his own funds after the divorce
and the 2
nd
Respondent to have wrongly thought she could
share in it.
[49]
He denies having delayed the whole process and blames the 2
nd
Respondent’s alleged deceit and the fact that she had to find a
liquidator who would assist her by not willing to apply the
true
facts in the matter. She did not anticipate the implication of the
date of divorce. She was struggling to indicate what parts
of the
house were complete on 14 September 2009 but keeps on using the words
it was “at an advanced stage.” He accuses
the 1
st
and 2
nd
Respondent of distorting the facts to benefit the
2
nd
Respondent in a way she is not entitled to on the
facts of the matter.
[50]
He denies that the property was ever a matrimonial home since when
they moved in, they were not
married and accuses 2
nd
Respondent of fabricating stories in her affidavit as she goes along.
He alleges not to be surprised that she supports all that
the 1
st
Respondent is saying in his reports.
[51]
He argues that he had to retain the property after
the divorce and had all the right to register a bond
alone as he is
the one who had to finish the building works that were still
outstanding. He insists that the building work started
on 15
September 2009, a day after the divorce and they moved into the
property
late in December 2009 when the building was finished.
He does not deny the photo posted by his son but argue that the
building still did not have windows or doors but was an empty shell
that was still in progress. It was finalised on 11 December 2009,
just before Christmas.
[52]
He denies the 2
nd
Respondent’s
allegations about the sale of two properties, one registered in his
name and the other in 2
nd
Respondent’s name, that
the proceeds were used for building the structure in the property. He
alleges all that to be
a fabrication that the 2
nd
Respondent makes as she gets along. He also denies the 2
nd
Respondent allegation that money from her pension fund was paid to
him and that it funded the improvements. He points out that
the 2
nd
Respondent also fails to attach any proof.
[53]
He likewise highlights the discrepancies in the
averments made by the 2
nd
Respondent in relation to the
date they moved into the property, that she has said that they moved
into the property in November
2009. Later on attached the picture
posted by his son and alleged that the picture was posted when they
moved in, in December 2009.
[54]
He denies that the property was to have been built by September 2009
and that the Homeowners
wanted to penalise them since the house was
not complete and that they were given an extension to obtain the
Occupancy Certificate
by July 2010.
On
the costs
[55]
According to him the fact that the 2
nd
Respondent supports
the 1
st
Respondent’s argument on the costs is an
indication that they are in cohorts, the 1
st
Respondent
being the referee the 2
nd
Respondent chose and applied for
to be appointed as the Liquidator. The two are
clearly
working together and that is why the 2
nd
Respondent is also supportive of the fees that the
1
st
Respondent
claims he should be paid.
He disputes 2
nd
Respondent’s criticism of him choosing the Liquidator alone,
arguing that she also did the same when she alone sought the
appointment of the 1
st
Respondent.
[56]
He argues that
his costs must be paid by both
Respondents since both are responsible for dragging out the
finalisation of the division of
the joint estate by ignoring the true
facts and attempted to force him in terms of a false report to sell
the property that the
2
nd
Respondent contributed nothing towards as it was
not yet built at the date of divorce. He accuses the 1
st
Respondent of abusing his powers to enforce the
lies of the 2
nd
Respondent, since
they are in the same
corner.
[57]
He confirms the averment by the 2
nd
Respondent that they
moved into the property in December 2009 which supports what he has
been saying all along, that the property
was ready from 11 December
2009 after the doors and the windows were installed.
[58]
He accuses both the 1
st
and 2
nd
Respondent of
dragging out the finalisation of the division of the joint estate, in
order to force him to sell the property, ignoring
the true and simple
facts that 2
nd
Respondent contributed nothing towards the
building. The 1
st
Respondent is abusing his powers to
enforce the lies of the 2
nd
Respondent.
[59]
He denies the 2
nd
Respondent’s allegations that she
left the house in December 2010 due to the infighting and that she
moved back in October
2011 and started looking for a liquidator. He
confirmed that certain minor further developments would have been
attended to at
that time.
[60]
In response to 2
nd
Respondent statement
that he had attached letters without indicating what is relevant
therein and they should not be admitted,
he accused her of playing
games. He then lambasted the 1
st
Respondent for supporting
the 2
nd
Respondent. He found the refusal by the 2
nd
Respondent to admit the content of the letters from his attorneys and
both Respondents’ denial that there was no empty stand
as at
date of divorce as shown in the photograph posted by the Applicant’s
son to be senseless. He alleges the 1
st
Respondent’s
findings on the pension fund money to have been ‘used to buy
the stand to be untrue but made out to support
the 2
nd
Respondent.
[61]
He alleges to be mortified and amazed by the 2
nd
Respondent’s comments that she would deny the purported
overwhelming evidence of a fruitless and pointless exercise by the
1
st
Respondent or that he had preconceived ideas.
[62]
He points out that a
ny person
who holds an office of Liquidator and is appointed to such office by
the Court
should be objective, truthful
in their application of the facts and in their application of their
mind to the facts.
T
he interest
of justice requires
a person to apply his mind to
the true facts of the matter, which is not the case in this matter.
He says the 1
st
Respondent’s biased approach is too obvious
to ignore.
[63]
The Applicant also seeks a dismissal of the 2
nd
Respondent’s counter-application on the basis that she is in no
position to seek an order either for finalisation or confirmation
of
the report and compliance therewith, as this was something she did
not initiate or the payment of an amount of R986 839
65 to her.
Only the Liquidator would have such authority.
Issues
to be determined
[64]
Whether there is any justification, which is a
good cause for the removal of the 1
st
Respondent as
liquidator of the joint estate, looking at the reasons proffered by
the Applicant, relating to the 1
st
Respondent’s
conduct in the fulfilment of his mandate, that he was biased, failed
to consider relevant information with objectivity
and honesty whilst
deliberately delaying the matter and inflating costs. Or if there are
disputes of facts that requires the matter
to be referred for oral
evidence, even though raised late in the heads of argument by the
Applicant, If not, whether the 2
nd
Respondent has
authority to apply for the confirmation of the Final report, if so if
same should be confirmed.
[65]
In an action t
he
burden of proof would have been on the Applicant to show on a balance
of probability a good cause for the removal of the liquidator.
Since
these are motion proceedings, where there are disputes of fact the
Plascon Evans Rule is applicable, that is the
general
rule of resolving disputes of facts inherent in the matter,
[3]
,
in that a final order may only be granted if the facts stated by the
Respondent, together with the admitted facts in the Applicant’s
affidavit, justify such an order. Further that “
w
here
it is clear that facts, though not formally admitted, cannot be
denied, they must be regarded as admitted
.”
[4]
[66]
It is however also trite that, in
certain
instances the bare denial by Respondent of a fact alleged by the
applicant may not be such as to raise a real, genuine or
bona
fide
dispute
of fact.
[5]
In
such a case the allegations made by the Applicant may be taken into
account in deciding whether the order sought is justified,
unless the
Respondent has requested that the Applicant’s deponent be
subjected to cross-examination.
[6]
The
court in
National
Director of Public Prosecutions v Zuma commented as follows on the
Plascon Evans Rule:
“
It
may be different if the respondent’s version consists of bald
or uncreditworthy denials, raises fictitious disputes of
fact, is
palpably implausible, farfetched or so clearly untenable that the
court is justified in rejecting them merely on the papers.”
Legal
framework and A
nalysis:
[67]
For a
fair, authentic, and transparent
liquidation process, the efficiency, integrity, impartiality and
effectiveness of a liquidator
is crucial, as is the same in any other
judicial initiated process. A liquidator is therefore to avoid any
conduct that might compromise
the integrity of the process and its
outcome, remain impartial or maintain impartiality during the
process; effectively perform
his or her duties with honesty and
without any or minimum delays to avoid complains or applications for
their removal. Impartiality
connotes being free from any
influence or bias, whilst honesty implies being transparent and
acting with integrity and fairness.
These being the overarching
principles for an equitable and just division of the joint estate.
Failure in any of the mentioned
qualities may lead to a removal.
[68]
The Courts however have a wide discretion as to the circumstances in
which they may remove a
liquidator. The courts often apply in the
appointment and removals of liquidators for the division of joint
estates in divorces,
the principles applicable to the appointment and
removal of receivers and liquidators for the division of assets of
commercial
partnerships. The all-encompassing requirement being that
there should be sufficient grounds or good cause for the removal of a
liquidator or receiver. What will amount to a good cause will,
however, depend upon the circumstances of each individual case.
It
can be inter alia, lack of any of the stated requirements,
impartiality, transparency, honesty or effectiveness and or delay,
together or individually.
[69]
The removal is therefore not confined to instances of
maladministration, misconduct or personal
unfitness as is enunciated
in
Ma-Afrika
Groepbelange (Pty) Ltd v Millman and Powell NNO
[7]
where
the following is stated:
‘
Good
cause for the removal of a liquidator has also been held to have been
shown where a liquidator has not been independent. This
was a ratio
of the judgment in Re Sir John Moore Gold Mining Co
(1879)
12 ChD 325
(CA)
at 332, where a liquidator was removed because his “interests
may conflict with his duty”. See also Re P Turner
(Wilsden)
Ltd
(1986)
2 BCC 99
,
567 (CA) at 99, 570 and Re London Flats Ltd
[1969]
2 All ER 744
(Ch)
at 752E-F, where it was held that a liquidator should be “wholly
independent” and that the removal of a liquidator
should be “in
the interests of everyone concerned in the liquidation
”
.
[70]
Furthermore in
Prinsloo
v Master of the High Court & Others
,
[8]
the court referred to the summation in
Standard
Bank v Master of the High Court
&
Others
[9]
by Navsa JA of the relevant principles applicable to the removal of
liquidators as follows:
[125]
in
Hudson
and others NNO v Wilkins NO and others
2003
(6) SA 234
(T)
(at para 13) the following appears:
“
[13]
A liquidator may be removed from office if there is sufficient
suspicion of partiality or conflict
of interest, since a liquidator
must be and appear to be independent and impartial. He or she must be
seen to be independent since
his duties as liquidator may require him
or her to investigate. (See Re Giant Resources Ltd
[1991]
1 Qd R 107
at
117; Re National Safety Council of Australia (Vic Division)
[1990]
VR 29
([1989]
15
ACLR 355
(SC
Vic); City of Suburban Ltd v Smith
[1998]
28 ACSR 328
(FC
of A) at 336.) A Court will exercise its discretion to remove a
liquidator if it appears that he or she, through some relationship,
direct or indirect, with the company or its management or any
particular person concerned in its affairs, is in a position of
actual or apparent conflict of interest. In exercising that
discretion Bowen LJ in Re Adam: Eyton Ltd: Ex parte
Charlesworth
(1887)
36 Ch D 299
at
306 said:
“
Of
course fair play to the liquidator himself is not to be left out of
sight, but the measure of course is the substantial and real
interest
of liquidation.”
,…
Further
on, the following appears:
‘
Although
there may be no individual characteristic in itself sufficient on
which to base a conclusion that a liquidator is unfit,
there may be a
number of circumstances which combined might force the court to that
conclusion. Also the court might take into
account some unfitness on
the part of the liquidator together with what might be in the
interests of those persons interested in
the liquidation. A relevant
factor is also the costs that would be incurred if another
liquidator has to come and complete the work that the present
liquidator has
already done. Thus in the circumstances the court
will be less likely to discharge a liquidator towards the end of the
winding-up,
after he has become
acquainted with the affairs of the
company, than it would early in the winding- up although each one of
these considerations taken
singly might not be
sufficient to
justify the removal of the liquidator, taken together they might
be.’
[71]
It is therefore apparent that independence, that is impartiality,
being free from any influence,
would mainly be key in the
liquidator’s role. However, simple complaints or allegations of
a perception of bias, partiality,
lack of independence or unfairness
without more, will therefore not suffice, nor will it ordinarily be
sufficient to show simply
that the liquidator made questionable
decisions or committed errors of judgement. Whilst these deficiencies
may point to a lack
of competence or experience, they will not
necessarily constitute good or sufficient cause to justify the
removal of a liquidator.
[10]
Applicants’
complaints
Liquidator’s
bias
[72]
The Applicant’s main contention in this matter is the manner
the 1
st
Respondent had handled the disagreement between
the Applicant and the 2
nd
Respondent on the determination
of the value of the Willowbrooke property as at date of divorce and
the 2
nd
Respondent’s pension fund payment. The
Applicant accuses the 1
st
Respondent of being biased,
raising also the fact that the 1
st
Respondent was not
appointed jointly by the parties, but solely chosen by the 2
nd
Respondent through her attorneys allegedly with instructions to act
favourably to the 2
nd
Respondent. As a result, the 1
st
Respondent has felt obliged to act leniently and in favour of the 2
nd
Respondent.
[73]
In a case where parties to a divorce cannot agree on a division of
the assets, the only
solution is for a receiver or liquidator to
be appointed. Ideally, a mutually agreed liquidator would be
preferable to avoid any
potential discontent. Hence the discussion
and agreement between the parties on the appointment of a liquidator
is foremost encouraged.
However, failing consensus, a spouse or ex-
spouse bringing an application for the appointment of a receiver or
liquidator, exercises
his or her right to apply for this. There must
be a good reason shown by the court as to why the appointment of a
liquidator should
not be allowed.
[11]
The resultant appointment per se cannot give rise to an assumption of
the liquidator’s bias or likelihood of bias towards
the party
on whose behest the liquidator is appointed.
[74]
The parties
in casu
have been divorced for nearly eight years without
the issue of the division of their estate being finalized. Short of
an agreement,
any of the parties was therefore entitled to apply for
the appointment of liquidator or receiver for finalization of the
remaining
disputes relating to the joint estate. The Applicant’s
allegation, following such an appointment, that the 1
st
Respondent is an agent of the 2
nd
Respondent, therefore doing everything in his
power to see to it that the 2
nd
Respondent obtains a benefit to which she is not
entitled, is ill advised.
[75]
In
S.S.M
v P.J N.O
and
Another
[12]
the court
clarified that situation as follows:
“
The
inherent power of the court to appoint such an officer to assist in
the division goes as far back as in the matter of Gillingham
v.
Gillingham,
1904
T.S. 609
where
INNES C.J., stated: ‘But where they do not agree the duty
devolves upon the Court to divide the estate, and the Court
has power
to appoint some person to effect the division on its behalf. Under
the general powers which the Court has to appoint
curators it may
nominate and empower someone (whether he is called liquidator,
receiver, or curator-perhaps curator is the better
word) to collect,
realise, and divide the estate.”
[76]
A receiver or liquidator is therefore an officer of the court, vested
with authority to deal
with the assets of the joint estate under the
direction of the court. The effect of the appointment of a
liquidator or receiver
is to place the assets of the joint estate
under his or her authority, to divide the estate in accordance with
the law, for and
on behalf of the court. He/she is required to
account for the liquidation and distribution by rendering a
liquidation and distribution
account, subject to objection by parties
affected thereby. In
Coetzer
v Coetzer
[13]
the
following was said about the office of receiver:
“
Applikante
het geen
locus
standi
om
die aansoek op eie houtjie te doen nie. Die ontvanger is ‘n
geregsamptenaar: hy verteenwoordig die hof. Assulks is
hy ‘n
belanghebbende party in die aansoek en applikante se aansoek gaan
mank weens versuim om hom saam te voeg
Vlg:
Gillingham
v. Gillingham
,
1904
T.S. 609
at
612.
)
[77]
The power conferred upon a liquidator includes a general power of
attorney, where justifiable,
to market, sell and realize any
immovable property, to approach any financial institution to access
statements of accounts, obtain
balances on statements of savings
account, investments and pension funds. This will include providing
the financial institutions
with specific instructions to withdraw any
amount from such accounts.
[78]
The 1
st
Respondent is consequently not acting as an agent
of the 2
nd
Respondent but of the court, carrying a
responsibility to the court to divide the joint estate. The
Applicant’s assumption
of the 1
st
Respondent’s
biased towards him, based on the fact that the appointment was at the
behest of the 2
nd
Respondent is misguided.
[
79]
The Applicant further alleges that the 1
st
Respondent was instructed to help the 2
nd
Respondent, which made him feel obliged to do so.
As a result, the 1
st
Respondent
went or wanted to go about
exercising his mandate in fulfilment of his duties that indicate
lenience to the 2
nd
Respondent, exhibiting favouritism.
Applicant alleged that to be proof of 1
st
Respondent’s
lack of impartiality, and unfairness.
[80]
Except for the Liquidator’s general powers and duties granted
to the 1
st
Respondent
in terms of Order annexed marked “F”, he was also
specifically
ordered
to
investigate,
inter
alia,
the
registration of a mortgage bond by the Applicant in favour of
Standard Bank of South Africa against the title deed of the immovable
property in the joint estate of the parties, to determine what
transpired in respect thereof, and in the event of the 1
st
Respondent
finding that the joint estate of the parties suffered a loss as a
result of the Applicant‘s conduct in respect
thereof, to make
an adjustment in favour of the Applicant in respect thereof.
[14]
[81]
It is understandable that the whole purpose of the whole order was to
facilitate the finalization
of the division of the joint estate, to
make sure that it is done equitably, and that the 2
nd
Respondent is not prejudiced by any conduct that
might have resulted in the joint estate suffering a loss at the hands
of the Applicant,
the party in possession and control of the asset in
the joint estate. What the receiver and liquidator, in such
circumstances do,
is still to attend to the modus of giving effect to
the court order for purpose of division of the joint estate. The duty
he fulfills
is to receive the assets and liabilities of the joint
estate, liquidate same and distribute the free residue to the
parties. In
case of a loss suffered by the estate at the behest of
Applicant or any of the parties he is, in terms of the general
powers,
ordered to make an adjustment accordingly.
[82]
The receiver and liquidator can, when he attends to the modus of
dividing the joint estate, then
make an adjustment. He, however,
cannot decide whether such an adjustment must be made or not, the
court does,
[15]
hence the
order cum instruction. The special order was specifically made in
favour of 2
nd
Respondent
as the party who would have likely suffered prejudice in relation to
the immovable property in the joint estate. The
Applicant has been in
possession and control of the property, seemingly taking decisions in
relation thereto during and after dissolution
of the marriage. The
1
st
Respondent
is therefore obliged to investigate if any adjustment is necessary to
circumvent 2
nd
Respondent
suffering a deficit.
[83]
The liquidator’s investigation conducted from that perspective
would seem to favour or
be lenient towards 2
nd
Respondent,
but is certainly neither indicative of 1
st
Respondent’s
personal intent to do so, nor justify the criticism resultant
therefrom. Any such criticism is ill advised,
unless the Applicant
can prove that 1
st
Respondent’s conduct was beyond
what was reasonably intended by the order.
Overlooking
Applicant’s complaints
[84]
On the other hand the Applicant’s complaint is that the 1
st
Respondent overlooked his complaint about the deficit information
submitted by the 2
nd
Respondent and was reluctant to
pursue or investigate the complaint as energetical as he did in
Applicant’s circumstances.
The Applicant mentioned the issue of
the 2
nd
Respondent’s Pension and her Landhoven
property, the parties’ former abode, the sale of which was
unnoticed by the
1
st
Respondent and not mentioned by the
2
nd
Respondent. The sale and the Pension were then
investigated following Applicant’s complaint. The allegation
that part of
the Landhoven sale proceeds in the amount of R180 000
were collected by the Applicant from the purchaser in monthly
instalments
and used on improvements on the property is disputed by
the Applicant. No proof was attached.
[85]
On affidavit in a different forum, the 2
nd
Respondent had
stated that the property was sold for R650 000. The additional
amount of R150 000 was not accounted for.
The Municipality
Account for Landhoven that 2
nd
Respondent reported to be
still in arrears post registration of transfer in October 2009, which
was an unlikely situation, was
not found. The 1
st
Respondent reported to have found that 2
nd
Respondent
received her pension pay out in 2008 already. She alleged to have
paid an amount of R300 000 into the Applicant’s
account.
The Applicant denied receiving the money. The follow-up enquiry
on the 2
nd
Respondent was indeed done with the insistence
of the Applicant. However 1
st
Respondent lack of vigour is
not reflective of any bad faith but a disjointed prioritization and
focus.
1
st
Respondent’s alleged disregard of true facts about the property
[86]
The Applicant was stern on his accusation that the 1
st
Respondent was ignoring the true facts about the property and
refusing to consider the information and
all
the documentary evidence he submitted to indicate the exact state of
the development at the time of divorce and
prove
that the valuation the 1
st
Respondent put on the property could not have been
what the value of the property was at date of divorce
. He
accused the 1
st
Respondent of having always had a
preconceived idea of assigning a specific value to the property in an
attempt to assist and benefit
the 2
nd
Respondent, despite
the information tendered. As a result, the 1
st
Respondent’s final report
ignores all the
correspondence and proof in every legal measure, deviates from all
logical reasoning, as the 1
st
Respondent has got only one purpose in this
matter, that is to benefit the 2
nd
Respondent. being interested in only what is
stated by her. The 1
st
Respondent
has gone further and
threatened to sell the property even though he is living in it.
[87]
This is not correct. This is only a lopsided
analysis of the situation around the report, ignoring the fact that
the 1
st
Respondent
has not been able to get the co-operation required from the
Applicant. The Applicant has refused a request to submit
the
information or documents requested regarded by the 1
st
Respondent as crucial for resolving the existing
stalemate on the value of the property and reaching finality. The 1
st
Respondent indicated that he otherwise in the
Final report had to rely on Root X’s property
valuation of the completed
structure. He noted that in his view,
failing Applicant’s cooperation,
that is the value of the property to be considered
for the purpose of determining the distribution between the parties.
[88]
The 1
st
Respondent refutes the allegations that
Applicant’s input was disregarded and that the property was a
vacant land at date
of divorce. He rightly had considered the
documents submitted by the Applicant prior to obtaining the
valuation. After consideration
thereof, he concluded that the
certificates imply that the construction on the property was at date
of divorce already initiated
and at an advanced stage. As no bond was
registered, he needed to know which and how much of the joint
estate’s funds were
applied by the date of divorce and what the
value of the improvements were as at that date, which is a reasonable
consideration.
He requested the Applicant to submit documents and
invoices of expenses on the said improvements so as to enable him to
make the
necessary assessment but nothing was forthcoming. It is
therefore not correct that factual submissions were disregarded.
[89]
The consideration of the R2 200 000.00 as the valuation of
the property at date of divorce,
however goes against the 1
st
Respondent’s own assessment he made on receiving the Root X
evaluation, that “the improvements resulted in the property
being evaluated at R2 200 000.00 which implies that if on the
date of divorce there was no structure as alleged by the Applicant,
an extensive capital was applied in the improvement of the structure
after date of divorce, however, no proof of such has been
received.
He hence correctly asked the Applicant to submit documentary proof of
the funds applied and invoices of the expenses
incurred on the
improvements then to substantiate the Applicant’s
allegations that there was no structure. In my view
there is no other
sensible way of ascertaining if any construction was already there on
the date of divorce than by assessing the
documents sought from the
Applicant. More so as it is certain that the structure was not
complete on the date of divorce. As a
result, the outstanding
documents and invoices are central to resolving the impasse.
[90]
The conclusion on the state of the structure or construction on the
date of divorce should be made
from factual evidence. Moreover the
Applicant and the 2
nd
Respondent have alluded to
improvements made post the date of divorce. The 2
nd
Respondent pointed out that the purpose thereof was to get the
Certificate of Occupancy. I do not find the 1
st
Respondent’s conduct to have been deliberate or intended to
please the 2
nd
Respondent or to have disregarded
Applicant’s documents nor to have been made in bad faith,
considering the resistance by
the Applicant. However the incongruity
of considering the 2018 evaluation of R2 200 000 to have
been the value of the
property at date of divorce following the
conclusion he made cannot be overlooked.
[91]
The 1
st
Respondent’s problem with
the timelines presented in the certificates as being unlikely and
impossible, especially where
it seems the whole house was built from
foundation to roof in 3 months is sensible. Especially, when
according to the Municipality
Certificate of Occupancy the foundation
and slab inspections are supposed to have been inspected at the same
date on 15 September
2009. Whilst the Completion Certificates in
respect of foundation and slab indicate an inspection date of 15
September and 6 November
2009 and finally signed off on 9 December
2009. Certainly there was some construction already before the date
of divorce. The dates
are unreliable as they differ so vastly.as
pointed out by the 1
st
Respondent. The 1
st
Respondent reckons it would have been reckless and irresponsible of
him to accept the dates on the certificates without further
investigation, which he argued was an indication of his impartiality
and independence in the matter. His explanation for not accepting
the
certificates on face value is reasonable. A situation and stance
which I agree can be reassessed on receipt of the information
requested. So far, the implication of a foundation inspected a day
after the divorce is that on the date of the divorce there was
a
foundation already. It unquestionably creates doubt that nothing was
built on the property yet.
[92]
The 2
nd
Respondent
said he accordingly battled with the truthfulness and impossibility
of the Applicant’s version plus the credibility
of the
Municipality Occupational Certificate, the timelines of which are
unrealistic. He therefore indicated to the Applicant a
sensible way
in which the impasse can be resolved. I am of the view that it is the
1
st
Respondent’s
prerogative to doubt any information as long as the reasons for such
doubt are coherent and a sensible way to
resolve the impasse
instigated. The solution, a request for the invoices and
documentation showing expenses incurred during the
construction was,
as indicated by the 1
st
Respondent, made after consideration
of the
information already tendered by the Applicant. Applicant’s
allegation that the purpose of the request was t
o
lean on finding that the property was as per Root X valuation, so as
to benefit the 2
nd
Respondent is unfounded. The information
requested will instead give insight into what was and what was not
there on the date
of divorce and which of the improvements were
effected thereafter.
[93]
1
st
Respondent
is in terms of the powers bestowed upon him authorized to take
further steps that will enable him to make a proper assessment
of the
joint estate and bring the process to finality. The status quo with
the Applicant refusing to comply with the instruction
is
unacceptable. He has extensive powers as per the order of the court
which he can use to compel 1
st
Respondent’s
compliance, so that he can fulfill his obligations properly. In
Gallam
[16]
, the court
explained such power as follows:
“
Where
such liquidators had been appointed, and there was a dispute as to
their powers, the Court ordered them to carry out their
duties (a) by
taking possession of the assets, collecting the debts due to the
estate, and determining and discharging the liabilities;
(b)
by
demanding from the former spouses an account of all assets taken
possession of or dealt
with
by them since the decree of divorce, and delivery of any assets still
in their hands;
(c)
by dividing the assets so collected or by selling the same and
dividing the proceeds.
The
Court also gave the liquidators leave to apply for directions in case
of any special difficulty; interdicted both spouses from
in any way
dealing with the assets without permission of the liquidators; and
directed the latter to pay each of the spouses such
sum for
maintenance as under the circumstances they should deem fit, and to
report to the Court when the estate had been finally
divided.”(my
emphasis)
[94]
The implementation of the Root X valuation for the value of the
property on date of divorce is misplaced
when considering the
averments made by all the parties, hinting at the construction to
have still been probably at an advanced
stage in December 2009. The
1
st
Respondent referred to the picture that was posted on
social media by the Applicant’s son, to express his view that,
on 11
December 2009 the building was at an advanced stage but not yet
complete. The Applicant pointed out that the windows and doors,
inter
alia, were not yet installed. Considering also the Municipality
valuation of the property of R1 080 000.00 in November
2009, it
is probable that the construction on 11 December 2009 was at an
advanced stage, but of not yet complete. In that instance
the
construction cannot be perceived to have been complete on date of
divorce to justify a postulation of the Root X valuation.
[95]
It recently became settled law that the date upon which the value of
the joint estate is to be
determined is indeed the date of the
divorce.
[17]
The estate can
only suffer loss prior to or on the date on which the value of the
joint estate is to be determined, unless proven
that the transaction
had the effect of diminishing the value of the estate as at date of
divorce. Hence the issue of the bond that
was registered after the
divorce cannot form part of the joint estate.
The
difficulty of establishing the value of the property at date of
divorce is real and daunting without the co-operation of the
parties.
[96]
The 1
st
Respondent is clothed with a wide range of power
including approaching the court for any further direction as he may
consider necessary,
or to institute any legal proceedings against any
person for the delivery to him of any assets, deeds or documents
relating to
the joint estate in whatever court it shall be
appropriate to do so. The court can therefore be turned to, where
there is an obvious
indication of concealment of evidence or refusal
to tender necessary information.
[97]
Nevertheless even though there has been an error of judgment on
further steps to be taken in such a
situation, that is reliance on
the Root X evaluation, the Applicant has failed to prove 1
st
Respondent deliberate and or mala fide intention and disregard of the
information he tendered. The Applicant was actually instrumental
in
delaying the resolution of the impasse, determined not to co-operate.
In so doing so, he frustrated and prevented a proper assessment
of
the value of the property on the date of divorce.
Inflating
costs by unwarranted conduct
[98]
The 1
st
Respondent’s
explanation of the difficulty he experienced in getting the
co-operation of the Applicant is not disputed. Certain
aspects of his
investigation on the state of the property at date of divorce could
have been easily clarified, the situation being
friendlier and easier
with Applicant’s full co-operation. The improvements on the
property and the dates they were effected
established from the
submitted invoices or documentation. Bar that information, the 1
st
Respondent’s subsequent endeavor to collate
further information from the banks, Estate Management and the
Municipality, occasioned
by the Applicant’s refusal to
co=operate, is defensible.
[99]
The 1
st
Respondent
explained that he could not rely on the certificates furnished as
there were some discrepancies in the information at
the Municipality
and that of the Engineer, the Inspectors and the Estate Management.
All this warranted clarification from
the Applicant failing which a
further investigation. The Occupation Certificate did not offer any
guaranteed information either.
The 1
s
Respondent therefore had to ascertain
the true state of the building as at date of divorce, hence the call
for further evidence,
and when non was forthcoming, it became
necessary to further investigate.
There is nothing that
justifies the Applicant’s suggestion that the purpose of the
investigation was to inflate the costs
or for sanctioning the costs
as proposed by the Applicant given the Applicant’s own conduct.
It renders it justifiable that the joint estate
carry the costs. The Applicant’s argument that the 1
st
Respondent forfeits the expenses incurred has no
merit.
[100]
Furthermore, the allegations that 1
st
Respondent
tried to evade his duties and refuses to concede his mistakes are
unsubstantiated. The Applicant’s argument and
conduct refusing
to co-operate and assuming that every decision or step taken was with
an intention to favour the 2
nd
Respondent, frustrated the
process and impacted on the costs. The 1
st
Respondent
cannot be blamed to have inflated the costs.
On
the delay and costs
[101]
Applicant’s complaint is that 1
st
Respondent had been dragging his feet since
September 2019. He did nothing to finalise this matter, including
refusing to make up
his mind when he was confronted with the truth.
He took long with his
amended provisional report on 27
September 2021 with nothing much in it. Furthermore that, not only
did 1
st
Respondent respond late to correspondence from the
Applicant’s attorneys, he took time with his reports insisting
on information
or documentation that had nothing to do with the joint
estate as at date of divorce, persisted with his behaviour even after
a
further letter sent to him on 15 April 2019.
[102]
There was indeed a bit of a delay with the 2
nd
provisional
report even with the further investigation conducted. It is however
not correct that the information sought by the
1
st
Respondent has nothing to do with the joint property at date of
divorce. The determination of what was there prior the date of
divorce is vital for the purpose of ascertaining if an adjustment
necessary. It is also not correct that 1
st
Respondent,
knowing his limitations should have started right away with the
investigation. His call, first for the parties to submit
any
documentation or invoices related to what was constructed and when as
part of the investigation was practical. He was then
justified to
endeavour to obtain the required information in the manner he did,
after Applicant’s continuous resistance.
It is unfortunate that
the investigation did not yield the envisaged positive results.
[103]
The
numerous chances given to the Applicant to
submit the necessary documents to prove his version was part of the
delay. The 1
st
Respondent
attempts thereafter to investigate the situation and to try and find
the Engineer causing a further delay. The
investigation
documents apparently exceed 1000 pages even though only the relevant
documents are attached to the final report.
A fact not refuted. The
lengthy investigations were conducted with the Municipality,
Willowbrooke, Estate Management and the banks.
It necessitated extra
time and costs to be spent on the matter. In my view, the further
investigation, the appointment of attorneys
and the valuator was
necessary and in accordance with his powers. Had the Applicant
provided the information requested, the relevant
amendment could have
been made on the liquidation and distribution account, without any
further delay and some of the costs incurred
avoided.
[104]
The Applicant has furthermore argued that the 1
st
Respondent should not be entitled to claim any fees in respect of
this matter since he has been acting in a preconceived manner,
he did
not have to take charge of any fixed property or any bank accounts
and did not open any kind of bank account anywhere in
respect of the
estate, as such he has had no real expenses. He instead decided on
the face of overwhelming evidence to embark on
a fruitless and
pointless exercise to try and prove his preconceived ideas about the
state of completion of the property at Wlllowbrook
as at date of
divorce.
[105]
Applicant’s allegations of 1
st
Respondent acting in
a preconceived manner are not backed by any rational argument.
According to the 1
st
Respondent he could not accept the
word of the Estate Manager, Municipality officials and the Engineer
if not supported by an affidavit
to remove any doubt, especially
concerning inconsistencies he had pointed out. Since the affidavits
were also not forthcoming,
the verification was unattainable and
further steps necessitated. On the other hand,
had
the Applicant responded positively to the 1
st
Respondent’s request and tendered the
information sought in time, the matter could have been resolved
without any delays.
The continued rebuffing of the requests, plus the
unreasonable persistence with threats to remove the 1
st
Respondent unless he acquiesces to the amendment
of the Final report without the required evidence, put the Respondent
in an unwarranted
position, his authority undermined. The Applicant
fails to proffer any cogent reason for 1
st
Respondent to forfeit the expenses he incurred.
[106]
Additional costs can still be curtailed if the Applicant furnishes
the 1
st
Respondent with the required information since it
will not be necessary for any further legal steps to be taken to
compel him to
do so, which the 1
st
Respondent is empowered
to can do. A proper determination of the value of what constituted
the joint property at date of divorce
has still to take place. It
cannot be served by the alternate assumption of the valuation of the
complete structure when it is
obvious that it was not the case at
date of divorce.
Counter-Application
by the 2
nd
Respondent
Confirmation
of Final Report
[107]
The decision on this issue only follows at this stage since it was
dependent on the outcome in the application
for removal of the 1
st
Respondent.
The Applicant’s opposition of the Application on the basis that
the 2
nd
Respondent
cannot seek an order for confirmation of the Liquidator’s Final
Report, is misguided. Confirmation of a Final
Report can be by
the Liquidator or any affected party. In
S.S.M
v P.J N.O and Another
[18]
the
following was
stated:
“
after
consideration of all submissions, in the liquidator’s account
(also called a report or liquidation and distribution
account) –
which in itself has no legal force. If all parties accept same that
is normally the end of it.
If
not, the liquidator (or any affected party) should approach the court
to ensure finality. The court, having the privilege of
further oral
and other evidence, should then 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.”
[108]
The Applicant’s argument is therefore not correct that since
the Final Report (or the Liquidation
and Distribution account)
is something the 2
nd
Respondent did not initiate, she is
in no position to seek an order either for its finalization or
confirmation. and compliance
therewith. Further that only the
Liquidator would have such authority. Absent an agreement between the
Applicant and the 2
nd
Respondent, the court can be
approached by either of the two as the affected parties or the 1
st
Respondent as Liquidator, in an endeavor to bring the matter to
finality. The court’s wide discretion in that instance is
clearly outlined in S.S.M
supra
.
[109]
However, in casu, the confirmation of the report is not yet supported
by the evidence. It still has to be attended
to, given the
Liquidator’s requests of further information which is still to
be responded to. The exact state of affairs,
regarding the
construction at the property on the date of divorce, is still to be
established to enable the resolution of its valuation.
The issue
cannot be regarded as finalized with the required evidence still
outstanding. No further delays can be afforded. It is
up to the
Applicant to disclose that information which is in his control and
curtail any further delays and expenses given the
history of this
matter.
[110]
The Applicant has in its heads of argument argued for the matter to
be sent for oral evidence. As the party who
is holding over the
crucial evidence required, he has failed to make a case why the
matter should be further delayed by reference
to trial when such
evidence can be expeditiously submitted by him and also by deposing
to a further affidavit.
[111]
The 1
st
Respondent is obliged to exercise the power vested
on him to take the necessary steps to compel the Applicant to submit
the evidence
in his possession that will enable a realistic and
proper verification of what may have been the value of the property
on date
of divorce.
[112]
There has been a major delay in the administration of the
joint estate in this matter by the 1
st
Respondent. The
whole process embroiled in disagreements due to the Applicant having
had no faith in the 1
st
Respondent, right from the
beginning refusing to cooperate. The court, has looked at all the
aspects raised in this matter and
decided on the appropriate steps to
be taken henceforth, to bring the matter closer to finality including
the justness of the removal
or retention of the Liquidator at this
stage.
[113]
Furthermore on the removal of a liquidator, noted enunciation in
S.S.M, that:
“
Although
there may be no individual characteristic in itself sufficient on
which to base a conclusion that a liquidator is unfit,
there may be a
number of circumstances which combined might force the court to that
conclusion. Also, the court might take into
account some unfitness on
the part of the liquidator together with what might be in the
interests of those persons interested in
the liquidation. A relevant
factor is also the costs that would be incurred if another liquidator
has to come in and complete the
work that the present liquidator has
already done. Thus, in the circumstances, the court will be less
likely to discharge a liquidator
towards the end of the winding-up,
after he has become acquainted with the affairs of the company, than
it would early in the winding-up.
Although each one of these
considerations taken singly might not be sufficient to justify the
removal of the liquidator, taken
together they might be.”
Conclusion
[114]
The Applicant has failed to make a case for the removal of the 1
st
Respondent by proving a reasonable apprehension of bias towards 2
nd
Respondent, alleging instead an apprehension influenced by the manner
in which the 1
st
Respondent came to be appointed to
administer the division of the joint estate. According to him
this has resulted
in a conduct that indicated 1
st
Respondent’s intention to satisfy or conform to 2
nd
Respondents needs. 1
st
Respondent may nevertheless happen
or seemed to have had no disagreements with 2
nd
Respondent, or to be more lenient by affording her a longer period to
respond to queries, readily accepting her answers and leaning
towards
her explanations, however there was no prejudicial or dereliction of
duty with an intention of favoring the 2
nd
Respondent that
was proven.
[115]
The Applicant has in addition failed to prove that it was
unreasonable for the 1
st
Respondent to refuse to accept as
sufficient what the Applicant has submitted as proof that there was
no construction on the property
at date of divorce. Moreover, that
the request for further information was influenced by any bias and
inclined to benefit the
2
nd
Respondent except for
what has been envisaged in terms of the order.
[116]
Further, there being no cogent reasons at this stage for removal of
the 1
st
Respondent as canvassed by the Applicant, even
though a measure of mistrust between the Applicant and the 1
st
Respondent seems to now exist, the removal will serve no purpose
except to further delay the matter and add on the costs.
[117]
The call by the Applicant in the alternative that the matter be
referred to trial is irrational and would result
in a further waste
of time. Especially when what is required to bring the matter to
finality is obvious to both parties. The call
is reliant on a
fictional dispute of fact that he created by continuing to withhold
the information requested by the 1
st
Respondent and
refusing to co-operate. The matter can be resolved rather speedily by
his compliance, on failure the 1
st
Respondent can exercise
the power already bestowed on him to compel compliance.
[118]
On the costs, in bringing this application the Applicant was acting
in his personal capacity not in the interest
of the joint estate. It
is therefore appropriate that his 50% portion of the joint estate
should bear the costs occasioned by this
application.
[119]
In the result the following order is made:
1.
The Applicant’s application for removal of the 1
st
Respondent as liquidator of the joint estate is dismissed.
2.
The 2
nd
Respondent’s application for confirmation of
the Final report is postponed sine die
3. The Applicant is
to pay the costs of the Respondents which costs would form part of
the joint estate and upon division
is to be charged to Applicant’s
50% by an adjustment effected accordingly, in favour of the 2
nd
Respondent
N
V KHUMALO J
JUDGE OF THE HIGH
COURT
GAUTENG
DIVISION, PRETORIA
On
behalf of Applicant:
Adv H D BAER
Instructed
by:
Chris Janeke Attorneys
sonelda
@chrisjaneke.co.za
maxbaer@law.co.za
On
behalf of 1
st
Respondent:
Adv L PIERCE
Instructed
by:
F A Steyn Attorneys
Lauren@LPLaw.org
cisca@fasteynattorneys.co.za
On
behalf of 2
nd
Respondent:
Adv M FABRICIUS
Instructed
by: Shapiro
& Ledwaba Attorneys
luca@shapiro-lidwaba.co.za
marifabricius@gmail.com
[1]
In
Schoeman v Rokely Farming Co (Pty) Ltd the court found that there
was no practical purpose for the appointment of a liquidator.
There
were no difficulty with regard to capital contributions and the
partnership was of a very restricted nature.
[2]
Gillingham
v. Gillingham
,
1904
T.S. 609
where
INNES C.J., stated: ‘But where they do not agree the duty
devolves upon the Court to divide the estate, and the Court
has
power to appoint some person to effect the division on its behalf.
Under the general powers which the Court has to appoint
curators it
may nominate and empower someone (whether he is called liquidator,
receiver, or curator-perhaps curator is the better
word) to collect,
realise, and divide the estate.’
[3]
Plascon-Evans
Paint Limited vs Van Riebeeck Paints Pty Ltd
[1984] ZASCA 51
;
1984
(3) SA 623
A at 634E- 635D
[4]
V
an
Wyk J (with whom De Villiers JP and Rosenow J concurred)
in
Stellenbosch
Farmers’ Winery Ltd
v
Stellenvale
Winery
(
Pty
)
Ltd
1957 (4) SA 234 (C)
at p 235 G,
[5]
see
in this regard
Room
Hire Co. (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd
,
1949
(3) SA 1155
(T)
at pp 1163-5;
Da
Mata v Otto, NO
,
1972
(3) SA 585
(A)
at p 882 D - H
[6]
National
Director of Public Prosecutions v Zuma
[2009]
ZASCA 1
;
2009
(2) SA 277
(SCA)
para 26
[7]
1997
(1) SA 547
(C)
at 561H-J
[8]
(28039/17)
[2021] ZAGPJHC 38 (3 November 2021)
at para 11
[9]
2010
(4) SA 404 (SCA)
[10]
Ma-Afrika
n
12 at 566B-C
[11]
Maharaj
v Maharaj and Others
2002(2)
SA 648 (D & CLD) at 652 C
[12]
(
15515/2017)
[2023] ZAGPPHC 2024 (18 December 2023)
[13]
1955
(1) PH B1 (O
[14]
This
is in line with
Section
15(9) of the Matrimonial Property Act 88 of 1989 (the MPA’).
## [15]M
v M(82156/14)
[2017] ZAGPJHC 354 (20 November 2017)
[15]
M
v M
(82156/14)
[2017] ZAGPJHC 354 (20 November 2017)
[16]
Supra
[17]
Brookstein
v Brookstein
2016
(5) SA 210
(SCA)
at para 15 to 21
[18]
(15515/2017)
[2023] ZAGPPHC 2024 (18 December 2023
At
[18]
sino noindex
make_database footer start
Similar Cases
K.M.C v Jordaan and Another (B854/2023) [2024] ZAGPPHC 46 (22 January 2024)
[2024] ZAGPPHC 46High Court of South Africa (Gauteng Division, Pretoria)99% similar
L.N.M v K.M and Another (6055/2005) [2025] ZAGPPHC 1081 (25 September 2025)
[2025] ZAGPPHC 1081High Court of South Africa (Gauteng Division, Pretoria)99% similar
M.L.J v A.J and Others (50044/2011) [2022] ZAGPPHC 323 (20 May 2022)
[2022] ZAGPPHC 323High Court of South Africa (Gauteng Division, Pretoria)99% similar
M.G.K v M.J.K (2024/074608) [2025] ZAGPPHC 535 (23 May 2025)
[2025] ZAGPPHC 535High Court of South Africa (Gauteng Division, Pretoria)99% similar
G.J.N v M.C (34350/2020) [2025] ZAGPPHC 329 (24 March 2025)
[2025] ZAGPPHC 329High Court of South Africa (Gauteng Division, Pretoria)99% similar