Case Law[2023] ZAGPPHC 1157South Africa
Bouwer N.O v Master of the Pretoria High Court and Another (Reasons) (053543/2023) [2023] ZAGPPHC 1157 (12 September 2023)
High Court of South Africa (Gauteng Division, Pretoria)
12 September 2023
Headnotes
“A fundamental tenet of statutory interpretation is that words in a statute must be given their ordinary grammatical meaning, unless to do so would result in an absurdity”. When applied to section 18(3) of the Act, in particular the word “may” implies that the Master, when deciding to act in terms of section 18(3) may appoint an executor if not nominated by the deceased and should exercise a discretion in appointing such executor. It follows that when doing so, the Master should consider all relevant aspects applicable before taking a decision. The section does not in my view authorise the Master to revoke an existing appointment save where section 54 applies.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Bouwer N.O v Master of the Pretoria High Court and Another (Reasons) (053543/2023) [2023] ZAGPPHC 1157 (12 September 2023)
Bouwer N.O v Master of the Pretoria High Court and Another (Reasons) (053543/2023) [2023] ZAGPPHC 1157 (12 September 2023)
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sino date 12 September 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 053543/2023
(1)
REPORTABLE: YES /
NO
(2)
OF INTEREST TO OTHER JUDGES: YES /
NO
(3)
REVISED: 12/9/2023
DATE
: 12/9/2023
SIGNATURE
In
the matter between:
WILLEM
FRANCOIS BOUWER N
O
Applicant
(As
the executor in the estate late C A Masinga)
and
MASTER
OF THE PRETORIA HIGH COURT
1
st
Respondent
NOLOYISO
MBIZWENI-DYANI
2
nd
Respondent
JUDGMENT: REASONS
SECTION 18(3) ADMINISTRATION OF ESTATES ACT
BEFORE:
HOLLAND-MUTER J:
[1]The
matter came before the court as an urgent application for an
interdict against the respondents (“the Master”)
to
prevent the Master from removing the applicant as executor in the
estate of late C A Masinga. The matter was enrolled on 13
June 2023
but postponed until 27 June 2023 to enable the Master to deliver its
answering affidavit and heads of arguments.
[2]
The salient facts of the matter are that summons was issued against
the Road Accident Fund (“RAF”) on behalf of
the deceased
Collen Africa Masinga, the death of the deceased resulting from
injuries sustained in a motor vehicle collision which
occurred on 4
October 2018. The deceased was a passenger in the vehicle.
[3]
The applicant was appointed by the Master as executor in the matter
on 27 March 2019 to liquidate the estate in the interest
of the minor
children of the deceased. At the time of the appointment the estate
was valued at R 1 416 200-00 (the claim instituted
against the
Fund), but the matter was later settled in the amount of R
223 514-00. There was a curator ad litem who acted
in the
litigation.
[4]
The Master has the authority in terms of section 14 of the
Administration of Estates Act, 66 of 1965 (“the Act”),
to
appoint nominated persons as executors by any deceased person in a
will which has been accepted by the Master and to issue letters
of
executorship to such a persons.
[5]
Section 18(1) of the Act deals with the Master’s authority to
appoint executors in proceedings where a deceased person
failed to
nominate any person in his will to be his executor.
[6]
Section 18(3) deals with where the value of an estate does not exceed
the amount determined by the Minister by notice in the
Gazette,
authorising the Master to dispense with the appointment of an
executor and give directions as to the manner in which such
estate
shall be liquidated and distributed. The Minister determined the
amount referred to in section 18(3) of the Act in Gazette
No 38238
dated 24 November 2014 in the amount of R 250 000-00.
[5]
Counsel for the parties addressed the court on the issue, which
became moot after a taxed party and party costs amount of R
178 979-00 was received from the RAF during late 2022 after the
final liquidation and distribution account was submitted to
the
Master by the applicant. This increased the value of the deceased
estate to R 402 493-96. The adjusted amount was now
higher than
R 250 000-00, the threshold amount set out in section 18(3) of
the
[7]
The dispute was that the applicant refused to adhere to the request
of the Master to return his letter of executorship to be
replaced and
furnished with a letter authority. This dispute was later abandoned
after the taxed costs were added to the estate,
the amount exceeded
the threshold of R 250 000-00.
# [8] The parties are ad
idem that the Master may dispense with the appointment of an executor
where the value of the estate is below
the threshold of R 250 000-00,
but the issue was whether such change from executorship to replace it
with appointees from
the Legal Aid Board, was in the interest of the
process. Fortunately the issue was resolved and the parties requested
guidelines
from the court in similar future matters.
[8] The parties are ad
idem that the Master may dispense with the appointment of an executor
where the value of the estate is below
the threshold of R 250 000-00,
but the issue was whether such change from executorship to replace it
with appointees from
the Legal Aid Board, was in the interest of the
process. Fortunately the issue was resolved and the parties requested
guidelines
from the court in similar future matters.
[9]
Section 18(3) clothes the Master with authority to dispense with the
appointment of an executor if the value of the estate does
not exceed
the threshold and that the Master may direct the future manner to
liquidate the estate. Section 18(3) is however silent
whether the
Master may terminate previously granted executorship to replace it
with a letter of authorisation when the value of
the estate drops
below the threshold of R 250 000-00. If the Master may act in
this regard, what should be considered by the
Master before
exchanging executorship with a letter of authority?
[10]
In
Cool Ideas 1186 CC v Hubbard and Another 2014(4) SA 474 (CC) at
para [25]
it was held that “
A fundamental tenet of
statutory interpretation is that words in a statute must be given
their ordinary grammatical meaning, unless
to do so would result in
an absurdity”.
When applied to section 18(3) of the Act, in
particular the word “
may”
implies that the
Master, when deciding to act in terms of section 18(3) may appoint an
executor if not nominated by the deceased
and should exercise a
discretion in appointing such executor. It follows that when doing
so, the Master should consider all relevant
aspects applicable before
taking a decision. The section does not in my view authorise the
Master to revoke an existing appointment
save where section 54
applies.
[11]
A similar approach was followed in
Independent Institute for
Education (Pty) Ltd v KwaZulu- Natal Law Society and Others 2020(2)
SA 325 CC in PARA [13].
[12]
When applied in this instance, the following be noted:
12.1
There is nothing in section 18(3) that prohibits the appointment of
an executor when the value of the estate is below the threshold
of R
250 000-00;
12.2
The Master is not precluded from examining a liquidation and
distribution account where the value is below the threshold; and
12.3
The Master may,
before
appointing an executor, dispense
with the appointment of an executor and issue a letter of authority
instead of a letter of executorship
when the value is below the
threshold.
[13]
I could not find any authority in section 18(3) authorising the
Master to revoke a letter of executorship and replace it with
a
letter of authority for no sound reason. There is also no indication
that the Master considered the work already done by the
applicant as
appointed executor before trying to revoke his appointment. Such
revoking may have adverse financial implications
for the meagre
estate and to appoint an outsider from the legal aid board to
continue with an almost finalised process by the applicant
will not
be in the interest of the beneficiaries of the estate.
[14]
The applicant explained the reason for the delay to finalise the
estate due to the long drawn out litigation by the Road Accident
Fund
(‘RAF”) before he could finalise the matter. It is well
known that RAF matters are unnecessary drawn out before
it is
finalised. To blame the applicant for not adhering with certain time
frames is unfair.
[15]
I am not convinced that there was any reason as set out in section 54
(1)(b) of the Act for the Master to revoke the executorship
of the
applicant but for the delay beyond his control. The Master did not
forward any post setting out the reasons for such removal,
and the
applicant was not afforded the opportunity to respondent thereto.
[16]
The argument on behalf of the Master in para 21 of the written heads
of arguments holds no water. There is no indication that
by allowing
the applicant to finalise the matter would inadventently leave the
heirs of the estate with little inheritance and
that poor black
people will bear the brunt. There are no facts supporting this
notion. The liquidation process was almost complete
and very little
further costs would accrue should the applicant continue the
finalization of the estate.
[17]
I am of the view that the Master, when resolving to section 18(3) and
section 54 of the Act, should conduct a proper investigation
and
consider all relevant issues applicable on the specific matter under
scrutiny. A mere shot in the dark is not sufficient.
[18]
As indicate above, the parties resolved the issues and this is a mere
guide-line for future conduct and no formal further judgment
is
necessary in view of the existing draft order dated 29 June 2023. No
further cost order will follow these reasons.
Signed
at Pretoria on 12 September 2023
J
HOLLAND-MUTER
Judge
of the Pretoria High Court
Date
heard: 29 JUNE 2023
Reasons
given wrt Section 18(3) OF
Administration of Estates Act: 12
September
2023
TO:
ON BEHALF OF THE
APPLICANT
JPA VENTER
ATTORNEYS
rinette@wfbattorneys.co.za
Counsel: A Coertze
adrianus@coertze.net
AND TO:
STATE
ATTORNEYS PRETORIA
NMbata@justice.gov.za
Counsel: L
Mgwetyana
imgwetyana@law.co.za
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