Case Law[2025] ZAGPPHC 1302South Africa
Van Zyl NO and Others v Mulaudzi and Others (29047/2015) [2025] ZAGPPHC 1302 (28 November 2025)
High Court of South Africa (Gauteng Division, Pretoria)
28 November 2025
Headnotes
Summary:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Van Zyl NO and Others v Mulaudzi and Others (29047/2015) [2025] ZAGPPHC 1302 (28 November 2025)
Van Zyl NO and Others v Mulaudzi and Others (29047/2015) [2025] ZAGPPHC 1302 (28 November 2025)
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sino date 28 November 2025
FLYNOTES:
INSOLVENCY
– Rehabilitation –
Delay
–
Trustees
were obstructed by litigation and circumstances beyond their
control – Respondents failed to cooperate –
Withheld
information and hindered meetings – Left creditors unpaid
and claims unresolved – Rehabilitation would
undermine
purpose of sequestration and reward obstructive conduct –
Irreparable harm to creditors if rehabilitation
occurred –
Application granted –
Insolvency Act 24 of 1936
, 127A(1).
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO.:
29047/2015
(1)
REPORTABLE: YES /
NO
(2) OF
INTEREST TO OTHER JUDGES: YES /
NO
(3)
REVISED:
Yes
DATE: 28/11/2025
SIGNATURE
In the matter between:-
CHRISTOPHER
PERE VAN ZYL N.O.
First
Applicant
OSCAR
JABULANI SITHOLE N.O.
Second
Applicant
SELBY
MUSAWENKOSI NTSIBANDE
Third
Applicant
v
MATTHEWS
TUMANI MULAUDZI
First
Respondent
VIOLET
MABONTSI MULAUDZI
Second
Respondent
THE
MASTER OF THE HIGH COURT, PRETORIA
Third
Respondent
Heard
on:
12
November 2025
Delivered:
28 November
2025
- This judgment was handed down electronically by circulation to the
parties' representatives by email, by being uploaded to
the
CaseLines
system of the
GD and by release to SAFLII. The date and time for hand-down is
deemed to be 14:00 on 28 November 2025
Summary:
1.
A court of law has a judicial discretion in terms of Section 127A(1)
of the Insolvency Act 24 of 1936 (the Act) to delay
or deny the
automatic rehabilitation of the respondents (
Engelbrecht v
Naidoo
) cited herein.
2.
Unrehabilitated insolvents are required to show that the
sequestration of their estate was to the advantage
of creditors.
3.
The respondents were instrumental in causing the trustees not to
finalize the administration of their estate.
4.
The relief sought in Part A is interim in nature. The
respondents are afforded an opportunity to state
their case in Part B
of the application.
5.
The non-compliance with the Uniform Rules of Court is condoned in
terms of Uniform Rule 6(12). This application
is adjudicated
upon as an urgent application.
ORDER
It is ordered:-
1.
The non compliance with
the Unform Rules of the court be condoned in terms of Rule 6(12).
This application is adjudicated upon as
an urgent application.
2.
Condonation for the late
filing of the replying affidavit is granted.
3.
The further affidavit of
the respondents, in response to the replying affidavit is permitted.
4.
Pending the final
determination of the application set out in Part B, the respondents
shall not be deemed to be rehabilitated from
2 December 2025 as
envisaged in
Section 127A(1)
of the
Insolvency Act.
5.
Each party is ordered to
pay their own costs resulting in the postponement of the matter on 4
November 2025.
6.
The first and second
respondents are ordered to pay the costs of the Part A application,
including the costs of two counsel.
7.
Part B is postponed
sine
die
.
JUDGMENT
KOOVERJIE
J
NATURE
OF THE APPLICATION
[1]
This matter was instituted as an urgent application where the court
is required to
exercise its discretionary power in terms of Section
127A(1) of the Insolvency Act 24 of 1936 (“Act”) to
either delay
or deny the automatic rehabilitation of the first and
second respondents, currently unrehabilitated insolvents.
[2]
The second and third applicants are the remaining trustees of the
insolvent estate
of Matthews Tuwani Mulaudzi (the first respondent)
and Violet Mabontsi Mulaudzi (the second respondent).
[3]
The respondents are married in community of property, and their joint
estate was finally
sequestrated by order of court on 27 May 2016.
[4]
The first meeting of creditors occurred on 15 November 2016 whereupon
the proven creditors
voted for the appointment of the applicants as
trustees. The applicants were appointed as trustees on 20
February 2017.
The second meeting of creditors was convened on
9 May 2017.
THE
RELIEF SOUGHT
[5]
In this application the trustees seek the following relief, namely
5.1
in Part A they seek interim relief on an urgent basis that, pending
the outcome of the main
relief in Part B – the first and second
respondent
s
are not to be deemed to
be rehabilitated in terms of the provisions of
Section 127A(1)
of the
Insolvency Act from
2 December 2025.
5.2
in Part B they seek final relief, thus confirming that the first and
second respondents
are not to be deemed to be rehabilitated in terms
of the provisions of
Section 127A(1)
of the
Insolvency Act.
[6
]
The applicants submit that Part A is interim in nature pending the
outcome of the main
relief sought in Part B. This court is
seized with part A relief.
ISSUES
FOR DETERMINATION
[7]
The issues for determination and those that were persisted with
in
argument were the following:
7.1
Whether the matter is
rendered
urgent;
7.2
whether condonation for the late filing of the
replying
affidavit should be
granted;
7.3
whether the further affidavit filed by the respondents
should
be
permitted;
7.4
whether a case has been made to interfere with the
Section 127A(1)
deeming provision. The substantive dispute
between the parties centers on
Section 127A(1) of the Act, which stipulates:
“
(1)
Any
insolvent not rehabilitated by the court within a period of 10 years
from the date of sequestration of his estate, shall be
deemed to be
rehabilitated after the expiry of that period unless the court, upon
application by an interested persons after notice
to the insolvent,
orders otherwise prior to the expiration of the said period of 10
years”.
[8]
I have noted that although the locus standi of the trustees were
challenged on the
papers, this point was not persisted in argument.
In any event the applicant’s response is that their authority
was
confirmed on the basis that the creditors at the second meeting
of creditors authorized the trustees to institute,
inter alia
,
these proceedings.
URGENCY
[9]
The core issue for determination is
whether
the
applicant can obtain substantial redress at a
hearing
in due course. The
undisputed
fact is that the respondents will be automatically rehabilitated in
terms of the deeming provision
set out
in Section 127A(1) of the Act
on
2 December 2025, by the effluxion of time. The application at
this stage is intended to delay the operation of Section
127A(1) of
the Act.
[10]
This application had already been instituted on 25 July 2025.
The respondents duly filed
their answering affidavit on 22 August
2025.
They were further
informed that the matter
was set down for hearing on 2 September 2025. However the
matter was removed from the roll at the
behest of the applicants
.
The applicants only
filed their replying affidavit on 24 October 2025, (62 days late)
according to the respondents.
[1
1
]
The respondents
expressed their
discontentment as to
the
manner in which the matter was dealt with thereafter by the
trustees. They alleged that
whilst
the trustees took their
own time to file their replying affidavit
,
they then
, without
consulting with the respondents,
sought
an urgent preferential
allocation from the office of the Acting Deputy Judge President.
They unilaterally
proposed
the date, 4 November
2025, for the hearing which was unreasonable.
The
respondent’s were clearly prejudiced in having to prepare for
the hearing on such short notice. This constituted
self-created
urgency and an abuse of the court processes.
It was argued that
since
the filing of the answering affidavit on 22 August 2025 the
applicants had ample time to respond and accordingly arrange a
date
by agreement between the parties.
[1
2
]
Notably the matter eventually did not proceed on 4 November 2025.
I remind the parties that
I directed that the matter
could
be heard in the
following week on the basis that the parties agree on a date. I
further gave leave to the respondents to file
a further affidavit in
response to the replying affidavit. The parties then agreed
that the matter be heard on 12 November
2025.
[1
3
]
There can be no doubt that the matter warrants urgent attention in
light of the imminent date, 2
December 2025, which would affect the
status of the respondents. From the said date, they will be
deemed to be automatically
rehabilitated unless this court directs
otherwise.
[1
4
]
Clearly the trustees would not be able to attain substantial redress
in the normal course of court
proceedings. In
East
Rock Trading
[1]
the
court expressed that the delay in instituting proceedings is not on
its own a ground for refusing the matter to be urgent. A
court is
obliged to consider the circumstances of the case and the explanation
given. The important issue is whether, despite
the delay, an
applicant can or cannot be afforded substantial redress at a hearing
in due course.
[1
5
]
Section 127A(1) of the Act gives this court the judicial discretion
to delay or deny the deeming
provision provided that such application
is presented to court before the expiration of a period of 10 years.
On 2 December 2025,
the respondent will be deemed to be rehabilitated
by the effluxion of time. There can be no doubt that this matter
warrants urgent
attention.
THE
LATE FILING OF THE REPLYING AFFIDAVIT
[
16
]
The applicants sought condonation for the late filing of their
replying affidavit. They proffered
the following reasons:
16
.1
after they launched this application on 25 July 2025, their
co-trustee, Mr Christopher Peter van Zyl
(the first applicant) passed
on. This caused an unforeseen delay in finalizing their
replying affidavit. They submitted although
the Master was duly
informed of the death of Mr van Zyl, his response was extensively
delayed. The trustees required directions
from the Master on
whether another trustee should be appointed;
16
.2
it was only on 16 September 2025 that the Master advised that the
remaining trustees would be capable
of finalizing the estate of the
insolvents. Hence there was no need to appoint a third
trustee. In light of this response,
a further meeting of
creditors in terms of Section 62(3) of the Act became unnecessary
[2]
;
16
.3
thereafter the trustees anticipated their amended certificates of
appointment which were not forthcoming
from the Master’s
office;
16
.4
in this period as well, the remaining trustees were advised that it
would be convenient to appoint a
new set of attorneys from the
jurisdiction of this court. The trustees alleged that the said
attorneys had to be given an
opportunity to acquaint themselves with
the facts and the nature of the extensive litigation that ensued
between the parties;
16
.5
this was not a deliberate delay caused by willful or negligent
conduct on their part;
16
.6
the late objection to the request for condonation has no merit.
The respondents had every opportunity
to oppose the condonation since
the filing of the replying affidavit on 21 October 2025;
16
.7
the applicants had further tendered the reasonable costs associated
with the condonation and submitted
that such costs order would cure
the prejudice;
16
.8
lastly the respondents have not alleged any prejudice suffered due to
the late filing of the replying
affidavit. This is an
overriding factor that must be taken into account.
[3]
[17]
The respondents opposed the condonation mainly on the premises that
the trustees failed to account
for the entire period of the delay.
They further argued that there was no reason for the trustees to
await any communication
from the Master as they could continue with
the litigation. Moreover, the purported new set of attorneys
were instructed
on the matter since December 2023 and could therefore
not have been a valid reason for the delay.
[
18
]
They emphasized that the full explanation that covers the entire
period of the delay has to be explained.
They submitted that
without a reasonable and acceptable explanation for the delay the
prospects of success are immaterial.
[19]
I am however mindful that condonation is not merely granted upon the
request by a party seeking
the indulgence. Such party is
required to show good cause. This court is required to exercise
its judicial discretion
taking into account certain factors,
inter
alia
,
that
a
reasonable and full explanation is given for the delay, which should
cover the entire period of the delay
[4]
,
that the
re
was
no reckless or intentional disregard of the rules of court
and
the
delay was
bona
fide
.
The main reason for the delay was due to the trustees awaiting
directions
from the Master. The Master belatedly advised them on the
future administration of the estate. I find t
his
explanation
is reasonable and
does
not show
mala
fide
on
their part.
[2
0
]
The
prospects
of success is a critical factor in a condonation application and it
is weighed alongside other factors such as the extent
of the delay
and the reasons
thereof
.
Strong prospects of success can compensate for an inadequate
explanation for the delay provided that the delay is not excessively
long. I
n
this matter
the
delay was not excessive and that the explanation
for
such
dela
y
was
further
reasonable
.
Moreover, the trustees h
ave
strong
prospects
of success. The facts must be considered in context and not
individually and whether it is in the interests of justice
to allow
the indulgence
[5]
.
[2
1
]
I am therefore satisfied that the applicants have shown good cause.
Consequently the
condonation is granted.
THE
RESPONDENT’S FURTHER AFFIDAVIT
[
22
]
On 4 November 2024, when the matter was
initially
set down for hearing
,
the respondents requested an indulgence to file a further affidavit
to respond to “new matter and untruths” which
they
alleged was not raised in the founding papers in particular, the
allegation that R105 million was
not
accounted for by the respondents.
[
23
]
I made provision for the filing of their further affidavit on the
basis of the new matter and the
untruths. The applicants,
however, contended that the further affidavit was repetitive and did
not address new matter.
Consequently the postponement sought
was
d
isingenuous.
[
24
]
In exercising my discretion in terms of Rule 6(5)(e), I am inclined
to allow further affidavit premised
on fairness to both sides
and in particular that there is no prejudice to
either parties. The applicants, in fact responded to the
further affidavit.
Moreover it is in the best interests of
justice that the court has the benefit of all the pleadings.
Delay
in the administration of the insolvents’ estate
[
25
]
The applicants requested this court to delay the deeming provision
pending the final determination
in terms of Section 127A(1) of the
Act. They contend that there is merit in this application on
the basis that:
25
.1
the trustees were prevented from interrogating the respondents
concerning the business dealings and affairs
of the insolvent estate;
25
.2
they were unable to investigate the respondents’ affairs and
transactions due to the lack of information.
Consequently, they
were unable to properly report to the creditors;
25.
3
they were further unable to establish the full extent of the
respondents’ assets and an enquiry
was necessary;
25
.4
to date none of the creditor’s claims have been dealt with and
none of them received any dividends.
[
26
]
It was explained that the sequestration process is intended for the
benefit of the creditors.
The respondents’ rehabilitation
would be to the disadvantage of the creditors. Consequently,
the respondents will escape
accountability to the creditors, the
trustees and the Master, thus evading all consequences of the
insolvency.
[
27
]
The overarching consideration when rehabilitating an applicant is
that it is for the benefit of
the creditors. As set out in
Ex
Parte Purdon
[6]
the
court stated at paragraph [15] that:
“
To
avoid any manipulation or abuse of the process, I take a view that an
applicant for rehabilitation is obliged to demonstrate
how the
sequestration of his or her estate had been to the advantage of
creditors, and if it had not, the reasons therefor. It
should make no
difference that the sequestration resulted from voluntary surrender
or compulsory sequestration, for, in both instances,
the benefit to
the body of creditors, is the overarching and key consideration.
Courts have a particular responsibility to ensure
that people who
have in the past failed in managing their financial affairs, and in
the process caused financial loss to others,
are not without more,
unleashed back into the economic mainstream.”
[
28
]
The conduct of both the respondents as well as the trustees after the
sequestration order was granted,
were outlined in the detailed
chronology. The timeline is relevant in that it provides
context to the litigious history between
the parties.
[
29
]
The trustees argued that in the last ten (10) years they were unable
to administer the insolvent
estate, firstly due to the
curator
bonis
having
custody of the insolvents’ assets for a period of 5 years and
secondly the continuous and unmeritorious litigation
initiated by the
respondents; in particular the Maumela J and Kwinana J proceedings.
[
30
]
I have taken cognisance of both parties conduct as extrapolated
in the chronology. I find
it appropriate to highlight the salient
events namely:
30.1
on 22 December 2015 the provisional order was already granted and on
27 May 2016 the final order was granted.
The respondents wasted no
time in launching a plethora of applications, mainly to oppose the
sequestration orders, to interdict
the trustees for performing their
functions and to challenge their appointments.
30
.2
in fact the litigation commenced immediately (one day after the
provisional order was granted).
Two applications were
instituted for the setting aside of the provisional sequestration
order. The respondents were unsuccessful
in these
applications.
30
.3
after the final sequestration order was granted, the respondents
instituted applications to interdict
the provisional trustees from
securing their assets and to further set aside the final order of
sequestration, followed by an application
to return their assets as
well as an appeal against the final sequestration order. They were
again unsuccessful in all of these
applications.
30
.4
determined to overturn the final order of sequestration they further
launched a rescission application,
a rehabilitation application, as
well as a review application;
30
.5
they then instituted the first interdict application to,
inter
alia
, challenge the appointment of
the trustees and to interdict them from any further administration of
the insolvent estate pending
the outcome of the Section 381 enquiry
into the fitness of the trustees to hold office;
30
.6
the respondents were successful in the first interdict application
before Maumela J. The order had the
effect of setting aside the
creditors’ meeting, interdicting the trustees from
administering the insolvent estate ordering
them to hold over the
process of the disposal of the estate and pending the institution of
the Section 381 enquiry. They further
directed the Master to
institute a Section 381 enquiry against the trustees in this
insolvent estate. The Maumela J order
of 11 May 2018 was only
set aside by the Full Bench, four years later, on 24 June 2022;
30
.7
post June 2022 the respondents approached the Supreme Court of Appeal
and the Constitutional Court in
order to overturn the Full Bench
decision regarding the first interdict application;
30
.8
the respondents further attempted to cause the Master to remove the
trustees and requested that the creditors’
claims proved at the
first meeting of creditors be expunged;
30
.9
the respondents also filed a complaint to the Special Investigating
Unit (the SIU) against the trustees;
[
31
]
Amidst these unsuccessful applications, the National Director of
Public Prosecutions (“the
NDPP”) obtained an order in
terms of Section 26 of the Prevention of Organised Crimes Act 121 of
1998 (“POCA”),
restraining the first respondent from
dealing with any of the assets contained in the insolvents’
estate,
pending the outcome of the criminal charges
against him regarding an alleged fraud committed against Old Mutual
in excess of over
R48 million. Hence from 6 June 2017 to 5
September 2022 the insolvent estate vested in the hands of the
curator bonis
for a period of over 5
years.
[
32
]
It cannot be disputed that in this period, the trustees were unable
to administer the assets of
the estate. Furthermore, the
Maumela J order of 18 May 2018 hindered them from complying with
their obligations, until the
outcome of the appeal of this order, (24
June 2022). The trustees advised that due to the respondents’
application for leave
to appeal against the Full Bench order that
overturned Maumela J’s order, they were further unable to
administer the insolvent
estate for a further period from October
2022 to September 2023.
[
33
]
Thereafter the second interdict application was instituted, on 22
November 2023, when Kwinana J
granted an order in their favour which
again interdicted the trustees from administrating the respondents’
insolvent estate
and from holding a creditors meeting.
Trustees’
Conduct
[
34
]
On the facts, I have noted that the trustees had invited the
respondents to meetings. The
respondent’s clearly refused
to participate, and communicated their non-attendance and further
advised the trustees that
they would not disclose the information
requested.
[35]
The respondents indicated in writing that they will not provide the
information requested in
terms of the subpoena issued. In the
report to the trustees, on 10 April 2017, it was recorded that they
failed to provide
the information regarding their assets.
[36]
The trustees attempted to convene the creditors’ meetings. The
first and second meetings
of creditors were held, namely on 15
November 2016 and 9 May 2017 respectively. At the first meeting
of creditors the proven
claims against the insolvent estate were in
the region of over R74 million.
[
37
]
Thereafter on 26 May 2017, the Master consented to convene the
private enquiry in terms of
Section 152
of the
Insolvency Act. The
trustees were, however, unable to convene the meeting due to the
respondents once more instituting an urgent application to interdict
the trustees from holding the special meeting.
[38]
The trustees made provision for a special meeting to be held on 31
October 2023. To obstruct
this meeting an urgent application
was instituted on 25 October 2023. The trustees nevertheless
managed to convene the special
meeting of creditors on 31 October
2023, as the said application was unsuccessful.
[39]
Another meeting was arranged for 7 December 2023. Again the
respondents instituted an application
to interdict the trustees from
convening this meeting as well.
[
40
]
The Kwinana J order was also challenged by the trustees and with
leave of the Supreme Court of Appeal
a reconsideration application
was permitted. Such application has as yet not been ventilated.
As things stand currently the
trustees remain interdicted from
administering the estate of the first and second respondents.
[
41
]
In response, the respondents contended that
:
41.1.
they should not be faulted for the delay of the
5 years where the
curator bonis
had custody of their assets. They played no role in this delay.
They can further not dispute that, in this time, even the
trustees
ha
d no access to their assets;
41.2
their argument that although Maumela J’s
order interdicted the trustees from disposing the estate’s
assets the
trustees
could still comply
wit
h
their responsibilities, is
unmeritorious. Although t
he
Maumela J order
interdicted the trustees
from administrating the insolven
t
estate,
the
curator bonis
had custody and control of the insolvents’ assets until
September 2022
;
41.3
their argument that the trustees had every
opportunity to proceed with the investigation, but they opted not to
do so, also
devoid of merit. The
trustees clearly did not sit back for 9 years. Apart from the 5 years
when their insolvent estate vested with
the
curator
bonis,
the
respondents
attempted to comply with their obligations
.
The
facts clearly illustrate that
every
attempt
of the trustees to carry such
obligations was
met
with adverse applications, where either their appointments were
opposed, or where they were interdicted from administering the
estate, or convening meetings
;
41.4
the respondents pointed out that after Maumela
J’s order was set aside by the full bench, that is from 24 June
2022 until
the Kwinana J’s order, that is until 31 October
2023, the trustees could have continued with the administration of
the estate.
The reference to the brief window periods in which the
trustees could continue with their tasks, is meritless. On the
facts
and the correspondence referred to it was evident that they
attempted to engage with the respondents and the creditors in this
time;
41.5
the consequence of
Kwinana J’s
order was also that they
were
interdicted from administering the insolvent estate. The President of
the Supreme Court of Appeal had only on 7 July 2025 granted
the
applicants permission to file their
reconsideration
application. This matter has as yet not been ventilated;
41.6
their contentions- that the delay in the appeal
court proceedings of Maumela’s order is not their fault, is
again in my view,
unassailable. The
y were
dominus
litis
and initiated the interdicts.
[42]
It is glaringly evident
from the facts
that the trustees were obstructed either by the respondents or by
circumstances beyond their control in effectively
administering the
estate.
Discretion
of the court
[4
3
]
The objective of sequestration proceedings must be appreciated.
It allows for the insolvent’s
assets to be accounted for and
equally distributed to the creditors to the extent they can be paid.
This process is entirely
for the benefit of the creditors. The
trustees were unable to compile a writte
n
report for the Master
and creditors in terms of Section 81(1) of the Act.
[44]
Apart from the 5 years where the curator bonis had control of the
insolvent’s assets, the
trustees with the cooperation of the
insolvents could have finalized the insolvency proceedings and filed
their reports.
[45]
A
rehabilitation order is further not granted
at the mere request of an insolvent. Although the
rehabilitation was anticipated
in terms of Section 127A(1) of the
Act, the enquiry in determining whether a rehabilitation order is
justified is the same as when
an application is made to court.
[
46
]
The
test
is
whether
the insolvents ought to be rehabilitated and ought to be allowed to
trade in the public as ordinary honest persons.
Simply put,
whether the insolvent is a fit and proper person to participate in
commercial life without any constraints and disabilities.
[7]
[47]
The granting of a rehabilitation order is a matter which lies
entirely in the discretion of the
court and is not a right which the
insolvent is entitled to.
[8]
[
48
]
There are various instances where rehabilitation of insolvents would
be refused. Our courts
have refused rehabilitation in various
justified instances. They include, inter alia, when insolvents
were difficult and
refused to cooperate with the trustees in the
administration of the estate, where they are obstructive and make
unfounded allegations
against the trustees and where they fail to
give a satisfactory account of the insolvency.
[9]
[49]
The effect of rehabilitation is to fully restore the applicant to the
marketplace and to obtain
credit. Hence it is necessary for the
applicant to disclose enough information to indicate that the
insolvent learnt some lessons.
An insolvent is required to prove as
much financial advantage for the creditors during the period of
sequestration. This is clearly
not the case here
[10]
.
[50]
On the plain facts, the trustees remain interdicted from
administering the insolvent estate,
none of the proven creditors have
had their claims dealt with, resulting in none of them receiving any
dividends. The proven
claims against the insolvent estate has
been proved to be over R74 million. On the respondents’
own version their debts
exceed over R5 million. Disputes of this
nature could have been ironed out if the insolvents furnished the
requested information
and cooperated with the trustees. A court is
also required to have regard to the various reports which includes
the Master’s
and trustees’ reports. Clearly the
Section 81 report could not be finalized.
[51]
In the circumstances of this matter I find that the refusal of their
rehabilitation is justified.
Interim
relief
[52]
At this stage of the proceedings, the relief sought is interim in
nature. There would be
no lasting injustice as the respondents
will be afforded an opportunity to state their case on the return
day, that is Part B of
this application.
[53]
Orders of this nature are designed to protect the rights of the
complainant pending the final
outcome of the matter. The effect
is to maintain the status of the respondents until then.
[54]
The applicants have satisfied the requirements for the interlocutory
relief, namely:
54.1
they have established that they have
prima facie
rights to
seek the court’s intervention at this stage of the proceedings;
54.2
there is a well-grounded apprehension of irreparable harm if the
interim relief is not granted.
They have demonstrated that the
creditors in the main would be prejudiced;
54.3
the balance of convenience is in their favour. The respondents
will not be prejudiced by the
delay in their rehabilitation.
The trustees and the creditors stand to suffer severe prejudice if
the relief is not granted;
54.4
moreover the applicants have no alternative recourse. Section
127A(1) of the Act makes provision
for the court’s intervention
before the 10 (ten) year period expires. There is no other
satisfactory remedy in the
circumstances.
Consequently
the interim relief in Part A is granted.
Costs
[55]
The issue of costs is to be determined firstly in respect of the 4
November postponement and
secondly, the costs of Part A of this
application.
[56]
The applicants wanted to proceed on 4 November 2025. The
respondents contended that they
had not been consulted on the date
allocated at the applicants’ behest.
[57]
Consequently, the respondents sought an indulgence in order to
respond to the replying affidavit.
The applicants argued that
the further affidavit was merely repetitive and did not raise new
matter. I nevertheless allowed
both the further affidavit as
well as the applicants’ subsequent reply to the further
affidavit on the principle of fairness
and in the interests of
justice. I therefore deem it appropriate that each party bear their
own costs.
[58]
In respect of the costs of Part A of this application, there is no
reason not to follow the general
principle- namely that costs follow
the result. The applicants as the successful parties, are
entitled to their costs.
Consequently, costs are awarded in
favour of the applicant’s consequent upon the employment of two
counsel.
H.
KOOVERJIE
JUDGE
OF THE HIGH COURT
GAUTENG DIVISION,
PRETORIA
Appearances
:
Counsel for the
applicants:
Adv.
S Tsagarakis
Adv. Z
Schoeman
Instructed
by:
Strydom & Bredenkamp Attorneys
Counsel for the
respondents:
Adv. T Ncongwane SC
Adv. N
Matidza
Instructed
by:
Ledwaba Mazwai Attorneys
Date
heard:
12 November 2025
Date of
Judgment:
28 November 2025
[1]
East
Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty)
Ltd and Others 2011 ZAGPJHC 196 at paragraph 6,7 and 8
[2]
S62(3)
makes provision for the election of a new trustee in the place of
the trustee who has vacated his/her office, has resigned
or has
died. The Master may convene a meeting for this purpose.
[3]
Pangbourne
Properties
Ltd v Pulse Moving CC and Another
2013 (3) SA 140
(GSA) where the
court stated at page 147G to 148D:
“
[18]
The respondents had the replying affidavit
in their possession for four months and made no attempt
to object to
the late filing thereof until the objection was made in argument
before me. Its own affidavit was late and
would pursuant to
the Waltloo judgment not be before me. The respondents did not
show why it would be prejudiced should
the matter be heard by me.
The objection to the affidavit is stated thus:
‘
Applicant’s
replying affidavit was served and filed some 8 months out of time
and falls to be disregarded.’
It fails to indicate
what prejudice, if any, the respondents suffered as a result of the
late filing of the replying affidavit.
The words of Brand JA in
Anglo Operations Ltd v Sandhurst Estates (Pty) Ltd
2007 (2) SA 363
(SCA) at para [32] are apposite:
‘
I
am not entirely sure what is meant by the description of the
application as ‘totally irregular’. If it is
intended to convey that the application amounted to a deviation from
the Uniform Rules of Court, the answer is, in my view, that,
as is
often been said, the Rules are there for the Court, and not the
Court for the Rules.
The
court a quo obviously had a discretion to allow the affidavit.
In exercising this discretion, the overriding factor
that ought to
have been considered was the question of prejudice. The
perceived prejudice that the respondent would suffer
if the
application were to be upheld, is not explained.
Apart
from being deprived of the opportunity to raise technical
objections, I can see no prejudice that the respondent would have
suffered at all. At the time of the substantive application
the respondent had already responded – in its rejoining
affidavit – to the matter sought to be included in the
founding affidavit. The procedure which the appellant proposed
would have cured the technical defects of which respondent
complained. The respondent could not both complain that
certain
matter was objectionable and at the same time resist steps
to remove the basis for its complaint. The appellant’s
only alternative would have been to withdraw its application, pay
the wasted costs and bring it again supplemented by the new
matter.
This would merely result in a pointless waste of time and costs.’
On the facts of the
present matter I deem it unnecessary for either of the parties to
have brought a substantive application for
condonation.”
[4]
Van Wyk
v Unitas Hospital
[2007] ZACC 24
;
2008 (2) SA 472
CC at 477 E-G
[5]
Grootboom
v National Prosecuting Authority and Another
2014 (2) SA 68
CC at
par 50
Bosch
v Seynhaeve at para 50 No 159/2023 [2024] ZALCCT 25 (27 June
2024)
[6]
Ex Parte
Purdon (53894/2013) [2014] ZAGPPHC 95 (24 January 2014)
[7]
R
Engelbrecht
and Others v Naidoo at par 26 with reference to the authorities
cited therein
Ex Parte Harris
(Fairhaven Country Estate (Pty) Ltd as intervening party
[2016] 1
ALL SA 764
WCC at par 84
[8]
Ex parte
Hittersay
1974 (4) SA 326
SWA 328
[9]
See also
Mars Law on Insolvency, 9
th
edition
p 586 to 558
[10]
Ex
Parte Le Roux
1996 (2) SA 419
CPD
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