Case Law[2023] ZAGPPHC 1205South Africa
Pilane and Others v Van Rooyen N.O. and Others (B39215/2022; 047985/2023; 058925/2023) [2023] ZAGPPHC 1205 (21 September 2023)
High Court of South Africa (Gauteng Division, Pretoria)
21 September 2023
Judgment
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## Pilane and Others v Van Rooyen N.O. and Others (B39215/2022; 047985/2023; 058925/2023) [2023] ZAGPPHC 1205 (21 September 2023)
Pilane and Others v Van Rooyen N.O. and Others (B39215/2022; 047985/2023; 058925/2023) [2023] ZAGPPHC 1205 (21 September 2023)
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sino date 21 September 2023
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: B39215/2022
[1]
065994/2023
047985/2023
058925/2023
REPORTABLE: YES/NO
OF
INTEREST TO OTHER JUDGES: NO
REVISED:
NO
Date:
21 September 2023
E
van der Schyff
Case
number B39215/2022
In
the matter between:
KAGISO
BANA PILANE
FIRST
APPLICANT
THE
TRADITIONAL COUNCIL OF THE
BAKGATLA-BA-KGAFELA
SECOND
APPLICANT
And
PHINEAS
TJIE N.O.
THIRD
INTERVENING APPLICANT
In
re
the
ex parte
application of:
ADRIAAN
WILLEM VAN ROOYEN N.O.
FIRST
APPLICANT
MPONYANA
LAZARUS LEDWABA N.O.
SECOND
APPLICANT
JOHANA
NINI MAHANYELE N.O.
THIRD
APPLICANT
(Cited
herein in their capacities of joint
Liquidators
of Lexshell 703 Investments (Pty) Ltd)
And
SIYAYA
FREE TO AIR TV (PTY) LTD
FIRST
RESPONDENT
BAKGATLA-BA-KGAFELA
STRATEGIC
INVESTMENT
COMPANY (PTY) LTD
SECOND
RESPONDENT
Case
number 065994/2023
In
the matter between:
KAGISO
BANA PILANE
FIRST
INTERVENING APPLICANT
THE
TRADITIONAL COUNCIL OF THE
BAKGATLA-BA-KGAFELA
SECOND
INTERVENING APPLICANT
And
PHINEAS
TJIE N.O.
THIRD
INTERVENING APPLICANT
In
re
the
ex parte
application of:
CHRISTOPHER
JAMES ROOS N.O.
FIRST
APPLICANT
BEATRICE
ELIZE GROENEWALD N.O.
SECOND
APPLICANT
And
THE
COMPANIES AND INTELLECTUAL
PROPERTY
COMMISSION
RESPONDENT
Case
number 047985/2023
In
the matter between:
KAGISO
BANA PILANE
FIRST
INTERVENING APPLICANT
THE
TRADITIONAL COUNCIL OF THE
BAKGATLA-BA-KGAFELA
SECOND
INTERVENING APPLICANT
And
PHINEAS
TJIE N.O.
THIRD
INTERVENING APPLICANT
In
re
the
ex parte
application of:
CHRISTOPHER
JAMES ROOS N.O.
FIRST
APPLICANT
BEATRICE
ELIZE GROENEWALD N.O.
SECOND
APPLICANT
Case
number 058925/2023
In
the matter between:
KAGISO
BANA PILANE
FIRST
INTERVENING APPLICANT
THE
TRADITIONAL COUNCIL OF THE
BAKGATLA-BA-KGAFELA
SECOND
INTERVENING APPLICANT
And
PHINEAS
TJIE N.O.
THIRD
INTERVENING APPLICANT
In
re
the
ex parte
application of:
CHRISTOPHER
JAMES ROOS N.O.
FIRST
APPLICANT
BEATRICE
ELIZE GROENEWALD N.O.
SECOND
APPLICANT
And
THE
COMPANIES AND INTELLECTUAL
PROPERTY
COMMISSION
RESPONDENT
JUDGMENT
Van
der Schyff J
Introduction
[1]
The first and
second applicants in this application are, for clarity's sake,
referred to as the first and second intervening applicants.
This
application is an urgent application by the first and second
intervening applicants, for the suspension of the execution of
orders
granted in the urgent court without notice to the first and second
intervening applicants. The parties agreed that I case
manage the
matter. A date for the hearing of the intervention and rescission
applications have been determined in the near future.
[2]
This application is thus for
interim
relief.
[2]
The first and second intervening applicants ultimately
seek the
rescission of the orders granted under case numbers B39215/2022,
065994/2022, 047985/2023, and 058925/2023.
[3]
The rescission applications are based on the fact that
all the orders
in question were obtained without notice to the first and second
intervening applicants. The first and second intervening
applicants
claim that they have a material and direct interest in the subject
matter of the litigation and that the orders were
erroneously sought
and granted in their absence.
[4]
The third intervening party (the Administrator) and the
provisional
liquidators of Bakgatla-Ba-Kgafela Strategic Investment Company (Pty)
Ltd (BBKSIC) and of Lexshell 703 Investments
(Pty) Ltd (Lexshell)
(collectively referred to as the opposing parties), oppose the
applications for the suspension of the execution
of the orders in
question. Their primary arguments are: (i) that the first intervening
applicant (Kagiso Bana Pilane, hereafter
Mr. Pilane) does not have
the necessary
locus standi
to approach the court for any of
the orders sought
,
(ii) that the second intervening applicant
(the Traditional Council of the Bakgatla-Ba-Kgafela (the TC) does not
exist (is a non-entity),
and does not have the necessary
locus
standi
to approach the court for any of the orders sought, (iii)
that the intervening parties’ attorneys of record, Cliff Decker
Hofmeyer Inc., does not have the necessary authority to act on behalf
of the first and second intervening applicants, (iv) that
the
intervening applicants’ attorney of record does not have
sufficient personal knowledge of the issues to attest to the
founding
affidavit, and (v) that the first and second intervening applicants
have not yet been granted leave to intervene. They
also dispute
the urgency of the application. The provisional liquidators of
BBKSIC, in addition, raise the point that the application
to suspend
the orders had to be brought in terms of section 354 of the Companies
Act 61 of 1973.
[5]
The question of the first and second intervening applicants'
locus
standi
is a recurring issue that is raised in the intervention
and rescission applications as well. In fact, this aspect could be
determinative
of the outcomes of the intervention and rescission
applications. The first intervening applicant either is or is not a
director
of BBKSIC. If he is not a director, he does not have
standing in any of the applications. The second intervening applicant
either
is or is not the Traditional Authority representing the
Traditional Council. As I indicate below, the issue of the first and
second
intervening applicants’
locus standi
is
interlinked with the question of whether the Administrator’s
appointment is valid.
[6]
An applicant
seeking
interim
relief
must establish that it has a
prima
facie
right,
that there is a well-grounded apprehension of irreparable harm if the
interim relief is not granted and the ultimate relief
is eventually
granted, that the balance of convenience favours the grant of an
interim interdict, and that the applicant has no
satisfactory
remedy.
[3]
In
casu
,
the first and second intervening applicants’
locus
standi
and
the question as to whether they succeeded in establishing a
prima
facie
right,
are interconnected. The main purpose for granting interim relief, is
to preserve the
status
quo
pending
the finalisation of the main relief sought.
[7]
In order to adjudicate fairly in these matters, it is
necessary to
understand the context and factual background that underpin the
litigation. For the greatest part, the factual background
to all the
applications is the same.
[8]
For purposes of this judgment, it suffices to state that
the
Administrator is joined to the proceedings.
Background
and contexts
First
and second intervening applicants
[9]
The first intervening applicant, Mr. Pilane, claims to
be a director
of BBKSIC. It is averred that he was elected on 1 June 2020. His
election was confirmed and ratified in a document
purporting to be a
resolution by the ‘sole shareholder’ on 7 August 2023. It
assists in understanding the context,
to mention already at this
juncture, that the opposing parties deny that Mr. Pilane has the
necessary
locus standi in judicio
to institute this
application. They contend that, even though the CIPC records reflect
that Mr. Pilane is a director of BBKSIC,
his appointment is invalid
as the third intervening party, Mr. Tjie, in his capacity as
representative of the sole shareholder
of BBKSIC, did not agree to
Mr. Pilane’s appointment as director of BBKSIC. Mr. Tjie’s
involvement is described below.
[10]
The second intervening applicant purports to be the Traditional
Administration
of the Bakgatla-Ba-Kgafela (TA) as representative of
the Traditional Council of the Bakgatla-Ba-Kgafela (TC). The opposing
parties
claim that the TC is a non-entity in that the term of office
of the members comprising the TC lapsed in 2016/2017. In addition,
the Premier of the North West Province appointed Mr. Tjie (the third
intervening party) as the Administrator for the Bakgatla-Ba-Kgafela
Traditional Community in the stead of the TC. As a result of his
appointment as Administrator, the opposing parties contend that
Mr.
Tjie replaced the TC as the representative of the sole shareholder of
BBKSIC.
Bakgatla-Ba-Kgafela
[11]
The Bakgatla-Ba-Kgafela Traditional Community (Bakgatla-Ba-Kgafela)
is a traditional
community recognised as such in terms of s 3 of the
North-West Traditional Leadership and Governance Act
2 of 2005
(NWTLGA). The Bakgatla-Ba-Kgafela had a functioning Traditional
Council established in terms of the NWTLGA. The Bakgatla-Ba-Kgafela,
through its TC, had various structures in place to effectively manage
and grow its assets. The Bakgatla- Ba-Kgafela Traditional
Administration (TA) attended to the administration of the affairs of
the Bakgatla- Ba-Kgafela on behalf of, and under control of
the TC.
[12]
The term of office
of the TC lapsed in 2017. On 7 July 2020, the Premier of the North
West Province (the Premier) withdrew the letter
of designation of Mr.
Nyalala John Molefe Pilane as the Kgosi of the Traditional Community,
issuing a certificate of recognition
of an interim Kgosi for six
months. Reddy AJ explained that no interim or permanent Kgosi has
since been appointed for the Traditional
Community.
[4]
The Premier intended to disband the TC by the appointment of an
administrator as per the findings of the Baloyi Commission. Reddy
AJ
held on 25 May 2023 that there is currently no TC as per the
NWTLGA.
[5]
Administrator
[13]
On 26 February 2020, the Premier of the North West Province (the
Premier),
appointed Mr. Tjie as the Administrator of the
Bakgatla-Ba-Kgafela Traditional Community. This appointment was
extended several
times and is still extant. In terms of the Terms of
Reference of his appointment, Mr. Tjie is authorised, amongst others,
to:
i.
Perform any Power, Authority, and function conferred or imposed by
law
on the Traditional Council;
ii.
Manage all litigation cases and processes against the Community;
iii.
To engage and recover any information, money, assets [and] accounts
in
possession of third parties;
iv.
To engage and call tribal meetings for the purposes of report[ing]
back
to obtain new mandate[s] and tribal resolutions;
v.
Manage and or oversee all the commercial activities, including the
mining
interests of the Community, by ensuring that the interests of
the community are protected;
vi.
Manage financial administration of the community affairs in line with
the Act;
vii.
Cause investigation in respect of any matters which is stated in
[the]
[Baloyi] Report but not covered by [the] Forensic
Investigation;
viii.
Implement the Community and Traditional Council Resolutions upon
review;
ix.
Initiate a process that will capacitate the incoming traditional
council
and develop [a] policies [policy] manual and system for [the]
traditional council.
[14]
Mr. Tjie’s appointment followed on recommendations made in the
2019 Baloyi
Commission Report. It was, amongst others, recommended
that members of the TC be removed for failing to discharge their
functions,
including non-compliance with the provisions of the Code
of Conduct. The Baloyi Commission proposed that the Premier should
act
in terms of s 9(3) and s 10(2) of the
North West Traditional
Leadership and Governance Act
2 of 2005, to urgently appoint an
Administrator to take control of the affairs of the TC. The Baloyi
Commission specifically proposed
that the Administrator must have the
power to exercise and perform any power, authority, and function
conferred or imposed by law
upon the TC and shall be deemed to have
been exercised or performed by the TC. The administrator should be
competent and have the
power to exercise any power, authority, or
perform functions that would ordinarily be conferred on the TC in
respect of the subsidiary
companies and shall be deemed to have been
exercised or performed by the TC.
[15]
I pause to note that the Administrator is referred to as the third
intervening
applicant because the first and second intervening
applicants failed to join him as a party to either the rescission
applications
or the applications to suspend the execution of the
orders granted. Counsel for the Administrator appeared at the
hearing. The
Administrator’s interest in these applications is
undisputable, and it is inconceivable that he was not joined as a
respondent
from the start.
[16]
An application to review and set aside, amongst others, the Premier’s
decision to appoint Mr. Tjie as the Administrator to manage and
control the affairs of the Bakgatla-Ba-Kgafela Traditional Community,
has been dismissed in the High Court, North West Division, Mahikeng,
on 4 July 2023. I have been informed that an application for
leave to
appeal will be heard on 6 October 2023. This development is of
crucial concern to, amongst others, the application to
stay or
suspend the operation and execution of the orders in question.
Bakgatla-Ba-Kgafela
Strategic Investment Company (Pty) Ltd
[17]
BBKSIC was established in 2010 with a view to corporatise the affairs
of the
Bakgatla-Ba-Kgafela and to grow the local economy. Lexshell
was ostensibly created to receive and make payments on behalf of the
TC to third parties.
[18]
The first and second intervening applicants state that the TA is the
sole shareholder
of Lexshell and BBKSIC. The Share Certificates
reflect that the Bakgatla-Ba-Kgafela Traditional Authority is the
sole shareholder
of BBKSIC. The Bakgatla-Ba-Kgafela Tribe is
indicated to be the sole shareholder of Lexshell.
Voluntary
winding up
[19]
Mr. Tjie, in his capacity as Administrator, empowered to manage and
oversee
all the Traditional Communities’ commercial activities,
took a resolution on 24 February 2023 to place BBKSIC in voluntary
liquidation. The third intervening applicant’s (the
Administrator) submission that his appointment has not been set
aside,
is a fact that cannot be ignored. Neither is the fact that his
resolution to place BBKSIC in voluntary liquidation has not been
challenged on review.
[20]
Mr. Roos and Ms. Groenewald were appointed as joint provisional
liquidators
of BBKS (in liquidation). The first and second
intervening applicants were only informed of BBKSIC’s voluntary
winding up
during a case management meeting they attended on 18 April
2023.
[21]
On 9 May 2023, CDH lodged a query with the CIPC, regarding what they
describe
as Mr. Tjie’s unauthorised and fraudulent attempt to
place BBKSIC in voluntary liquidation. Despite initially being
informed
by CIPC that BBKSIC’s status had been updated to ‘
In
Business’
, CDH saw again on 10 July 2023 that BBKSIC was
again placed in voluntary liquidation. This was the result, as
indicated below,
of an order obtained in the absence of the first and
second intervening applicants under case number 058925/2023.
Case
number 058925/2023
[22]
The provisional liquidators of BBKSIC approached the urgent court on
29 June
2023 for an order declaring that the voluntary liquidation of
BBKSIC, dated 24 February 2023, was duly registered by the CIPC on
24
February 2023. The CIPC was cited as the only respondent. The order
was granted as sought.
Case
number 065994/2023
[23]
The provisional liquidators again approached the urgent court on 12
July 2023.
They sought a
mandamus
ordering the CIPC to amend
and update its records in accordance with the order granted under
case number 047985/2023 [reference
should have been made to the order
obtained under case number 058925/2023] on 29 June 2023 to reflect
that the voluntary liquidation
of BBKSIC dated 24 February 2023 was
duly registered on 24 February 2023. The order was granted. CIPC
subsequently amended its
records.
Case
number 047985/2023
[24]
The joint provisional liquidators of BBKSIC (in liquidation)
approached the
urgent court on an
ex parte
basis on 23 May
2023. As a result, BBKSIC (in liquidation) was declared a company
unable to pay its debts in terms of s 388 of
the Companies Act 61 of
1973 (1973-Companies Act). The voluntary winding-up of BBKSIC was
converted to a winding-up by the court,
and the provisional
liquidators were authorised to exercise all the powers described in s
386(4) and (5) of the 1973-Companies
Act.
[25]
The first and second intervening applicants seek the suspension of
the operation
and execution of this order pending the rescission
application wherein they seek that this order be rescinded.
Case
number B39215/2022
[26]
Lexshell 703 instituted litigation against Siyaya Free to Air TV
(Pty) Ltd
(Siyaya) and BBKSIC. On 18 October 2022, Lexshell launched
an urgent application seeking an interim order that Siyaya be
interdicted
and prohibited from paying any monies to BBKSIC, and that
such money be paid into a trust account pending the institution and
finalisation
of any legal process for the recovery thereof.
[27]
A consent order was granted by Baloyi-Mere AJ in terms whereof the
parties
agreed to, and was ordered that Siyaya shall pay all amounts
earmarked or due to BBKSIC into an interest-bearing trust account of
CDH, to be held pending the outcome and finalisation of the
litigation. CDH was BBKSIC’s attorneys of record when this
order
was granted.
[28]
Neither the first nor second intervening applicants were parties to
the proceedings
before Baloyi-Mere AJ, although BBKSIC was
represented by CDH and ostensibly instructed by the second
intervening applicant.
[29]
I already indicated that BBKSIC’s voluntary winding up was
converted
to a winding-up by the court, with its ensuing
consequences, on 23 May 2023. The liquidators of Lexshell then
approached the court
on 11 July 2023, on an
ex parte
basis
seeking the amendment of the order handed down on 25 October 2022 by
Baloyi-Mere AJ. The order sought was granted.
[30]
In terms of this order, the payments that were to be made by Siyaya
to CDH’s
trust account, to be held pending the outcome and
finalisation of the litigation between Lexshell, BBKSIC and Siyaya,
were to be
paid into the trust account of the liquidators' attorneys’
trust account ‘
for the benefit and credit of Lexshell 703.’
The liquidators were also empowered to prove a claim in an amount of
at least R130 840 270.02 against BBSIC’s insolvent estate.
[31]
It is noteworthy that the liquidators’ attorneys of record are
also the
attorneys of record of BBKSIC’s provisional
liquidators. It can thus be accepted that the liquidators of
Lexshell, and the
provisional liquidators of BBKSIC agreed to this
order be sought and granted. Since the Administrator does not take
issue with
him not being joined to the proceedings despite not
receiving notice of the variation application, and his subsequent
opposition
to the rescission application brought by the first and
second intervening applicants, it can only be inferred that he, too,
approved
this mode of operation and agreed with the amended order.
[32]
The first and second intervening applicants claim that this
modus
operandi
was devised to obtain a court order without their
knowledge, whilst they have a direct and material interest in the
matter. They
take offense at the fact that their attorney of record,
CDH, was not informed of the application to amend the order granted
by
Baloyi-Mere AJ, and that their attorney was removed from the
Caselines’ profile. This, they suggest, was done in order to
prevent CDH of being aware of the amendment application being filed.
[33]
Counsel for the liquidators submitted that CDH was informed that
their mandate
was terminated by BBKSIC’s liquidators. It turns
out that the letter to which the liquidators’ counsel referred
was
directed at Fluxmans, and not at CDH. CDH only became aware of
their mandate being terminated when they received an email to which
the order granted by Makhoba J was annexed on 12 July 2023. This, the
first and second intervening applicants contend, is sufficient
reason
to have the order granted by Makhoba J rescinded.
Chronology
of events
[34]
To make sense of the events preceding the applications to stay the
execution
of the orders granted in the absence of, and without notice
to the first and second intervening applicants, it is necessary to
provide a chronology of events:
i.
26
/02/2020
An
Administrator is appointed for the Bakgatla-Ba-Kgafela Traditional
Community
ii.
01/06/2020
Mr.
Pilane is allegedly appointed as the Director of BBKSIC
iii.
25/10/2022
B39215/22
– Consent order granted in the litigation of Lexshell v
BBKSIC and Siyaya – monies payable by Siyaya
is to be paid
into CDH’s trust account pending the finalisation of the
litigation
iv.
24/02/2023
The
Administrator takes the resolution to place BBKSIC in voluntary
liquidation
v.
18/04/2023
CDH
(1st and 2nd intervening applicants) hear that BBKSIC is in
voluntary liquidation
vi.
09/05/2023
CDH
contacted the CIPC to rectify the records to indicate that BBKSIC
is ‘In Business’
vii.
23/05/2023
04985/2023:
BBKSIC’s Voluntary winding-up is converted to court ordered
winding-up
viii.
29/06/2023
058925/2023:
Declarator re BBKSIC’s voluntary winding-up for CIPC to
rectify the record
viv.
11/7/2023
B39215/2022:
Consent order (iii supra) is amended. Siyaya is to pay money paid
in the trust account of DLBM for the benefit
of Lexshell’s
creditors.
x.
12/7/2023
Letter
to CDH informing CDH that BBKSIC terminated its mandate
xi.
12/7/2023
065994/2023:
Mandamus- CIPC to amend its records to reflect the order granted
on 29/6/23 in case number 04985/2023 [must be
a reference to the
order granted in 058925/23 on 29 June 2023, alternatively the
order granted on 23 May 2023 under case
number 04985/23. Either
the wrong case number or the wrong date is referred to in the
order].
xii.
04/07/2023
A
review application to set aside Mr. Tjie’s appointment as
Administrator of the
Bakgatla-Ba-Kgafela
Traditional Community is dismissed.
xiii.
27/7/2023
The
first and second intervening applicants launch intervention and
rescission applications in case numbers B39215/22, 04985/23,
065994/23, and 058925/23.
xiiv.
11/8/2023
The
urgent court judge referred the matters to the Deputy Judge
President for a special allocation.
xv.
23/08/2023
The
first and second intervening applicants launch applications to
stay the execution of orders granted in B39215/22, 04985/23,
065994/23, 058925/23.
Urgency
re
: Application to suspend the operation and execution of the
orders
[35]
Pursuant to the intervention and rescission applications being
referred for
a special allocation, CDH addressed correspondence to
DLBM (the attorneys of record of both Lexshell and BBKSIC’s
provisional
liquidators) requesting an undertaking that the
liquidators will not persist with the administration of the BBKSIC’s
alleged
insolvent estate pending the resolution of the rescission
application. This application was launched because DLBM refused to
provide
such an undertaking.
[36]
The first and second intervening applicants raise the following as
the grounds
of urgency:
i.
The liquidators can at any moment take steps to execute the orders
which
are subject to the intervention and rescission applications;
ii.
If execution steps are taken, the first and second intervening
applicants
will not be able to obtain substantial redress at a
hearing in due course;
iii.
The liquidators will charge fees to the detriment of BBKSIC;
iv.
The liquidators may seek to sell BBKSIC’s assets.
[37]
The opposing parties contend that the first and second intervening
applicants
had to include the application to suspend the operation
and execution of the orders as part of the rescission applications,
that
the first and second intervening applicants had to foresee that
the intervening- and rescission applications would exceed 500 pages
and be referred for a special allocation. The liquidators correctly
point out that the intervening applicants’ sole ground
for
relying on urgency is based on the fact that the liquidators may
proceed with the administration of the estate and the collection
and
utilisation of money. The opposing parties submit that it is common
cause that the liquidators of both Lexshell and BBKSIC
have the
statutory duty to safekeep and administer the insolvent companies’
assets to the benefit of creditors, for which
due and proper
performance, they have furnished the required security to the Master
of the High Court prior to their appointment
as liquidators.
[38]
During discussions in chambers with all the parties' counsel, and in
court,
the liquidators’ counsel indicated that no assets would
be sold pending the finalisation of the intervention- and rescission
applications and that the liquidators would increase the security to
R100 million.
[39]
It is trite that an applicant in an urgent application must show that
it will
not be afforded substantial redress in due course if the
application is not heard in the urgent court.
[40]
Having considered the purpose of these urgent applications, the facts
that
led to this application being instituted, and that it is
directed at preserving the
status quo
, particularly regarding
the orders granted in case number B39215/22, 047985/2023, and
058925/23, I am of the view that the applications
can justifiably be
considered in the urgent court.
Discussion
[41]
Since the Deputy Judge President determined that the application to
suspend
the operation and execution of the orders be determined prior
to the intervening and rescission applications, the submission that
the first and second intervening applicants should not be heard
because they have not yet been granted leave to intervene, is neither
here nor there.
[42]
The issue of CDH’s authority to represent the first and second
intervening
applicants should not be conflated with the attack
launched on the first and second intervening parties’
locus
standi.
CDH clearly obtained instructions from clients to
institute the applications. The questions as to whether Mr. Pilane is
a director
of BBKSIC and whether the TA and the TC are existing
entities, are different questions. In the Rule 7 notice, it is
not disputed
that Mr. Kagiso Bana Pilane authorised and instructed
CDH to act on his behalf. His appointment as director of BBKSIC is
questioned,
and this is an issue that is relevant to the question of
his
locus standi
. It is likewise not contended that the entity
purporting to be the second intervening applicant did not provide CDH
with a power
of attorney. The question of whether the second
intervening applicant is an existing entity, is an entirely different
question.
I am thus of the view that CDH is properly mandated to
represent both Mr. Kagiso Bana Pilane and the group of persons
claiming
to be the TA and to put their case forward.
[43]
It is the duty of
the first and second intervening applicants to allege and prove their
locus
standi
.
[6]
The first and second intervening applicants dispute the
Administrator’s appointment, and his authority to have placed
BBKSIC
in voluntary liquidation. The validity of the Premier’s
decision to appoint the Administrator is the subject-matter of the
review application and the pending application for leave to appeal.
The Administrator’s power to have taken the decision
to place
BBKSIC in voluntary liquidation is partially dependent on the
question as to whether his appointment was valid. I am of
the view
that until it is finally determined whether the Administrator’s
appointment is valid, the question as to the first
and second
intervening applicants’
locus
standi
cannot
finally be determined. For the moment, they hold what I will refer to
as a residual interest, that, at the very least, entitle
them to seek
that the execution and operation of the orders granted in their
absence be stayed to the extent that the orders have
not been
executed. This is also the factor that differentiates the application
from ordinary applications to stay liquidation proceedings.
The
validity or not of the Administrators’ appointment has a domino
effect on the litigation that followed his decision to
place BBKSIC
in voluntary liquidation, even if that particular decision is not
currently under review. This, in itself, justifies
the stay of the
execution and operation of the orders.
[44]
I am alive to the findings of the Baloyi Commission and the Premier’s
intention. This court is not tasked with reviewing the Premier’s
decision to appoint the Administrator. This court is, likewise,
not
tasked with determining the extent of the Administrator’s
powers and whether he could legally assume the role of the
TA as the
sole shareholder of BBKSIC and decide to place BBKSIC in voluntary
winding-up. In the absence of an indication that any
of the parties
will be seriously prejudiced by preserving the
status quo
,
subject thereto that BBKSIC’s assets in the interim remain
preserved in the hands of the liquidators, it is in the interest
of
justice to stay the execution and operation of the orders which
execution can have serious
status quo
changing consequences.
[45]
Since the CIPC already amended its records to reflect that BBKSIC is
in liquidation,
it will have no practical effect to stay the
execution or operation of the order granted under case number
065994/2023. The order
is already fully executed, and its execution
cannot be stayed. As for the order granted under case number
058925/2023, the first
and second intervening applicants did not
indicate how the continued operation of this order would unduly
prejudice them, or might
have any
status quo-changing
effect,
particularly in light of the fact that the voluntary winding-up was
subsequently converted to a court-ordered-liquidation.
[46]
As for the stay of
the execution and operation of the order granted under case number
047985/2023, such an order will have a practical
effect. In staying
the operation and execution of the order, BBKSIC will remain in
court-ordered-liquidation pending the finalisation
of the
intervention and rescission application under case number
047985/2023. The effect of this order is that the liquidators,
in
the
interim,
continue
to preserve the assets belonging to BBKSIC that vested in them in
their official capacity as a consequence of the order
granted, that
they carry on with any business of BBKSIC as far as it may be
necessary for the beneficial winding-up of the BBKSIC,
that the
liquidators are empowered to represent BBKSIC (in liquidation) in
legal proceedings,
[7]
and keep
in their possession and under their control all files and documents
related to the business of BBKSIC, but that the operation
and
execution of the remainder of the powers afforded to them in terms of
the order granted by Van der Westhuizen J are suspended.
[47]
The stay of execution of the order granted under case number
B39215/2022 will
have a practical effect. DLBM Inc. must receive and
keep the money paid over to it in terms of the order granted by
Makhoba J on
11 July 2023 in an interest-bearing trust account
pending the finalisation of the intervention and rescission
application under
case number B39215/22.
ORDER
In the result, the
following order is granted:
In case number
B39215/2022
1.
Pending the finalisation of the first and second intervening
applicants’ application for leave
to intervene and rescission
of the order granted on 11 July 2023 by Makhoba J, the operation and
execution of the said order are
stayed, subject thereto that:
1.1. DLBM Inc must
receive and keep the money paid over to it in terms of the order in
an interest-bearing trust account pending
the finalisation of the
intervention and rescission application under case number B39215/22.
2.
Costs are costs in the intervening and rescission applications.
In case number
047985/2023
3.
Pending the finalisation of the first and second intervening
applicants’ application for leave
to intervene and rescission
of the order granted on 23 May 2023 by Van der Westhuizen J, the
operation and execution of the said
order are stayed, subject thereto
that:
3.1. The liquidators, in
the interim,
preserve the assets belonging to BBKSIC that vest
in them in their official capacity as a consequence of the order
granted;
3.2. The liquidators
carry on with any business of BBKSIC as far as it may be necessary
for the beneficial winding-up of the BBKSIC;
3.3. The liquidators are
empowered to represent BBKSIC (in liquidation) in legal proceedings;
3.4. The liquidators keep
in their possession and under their control all files and documents
relating to the business of BBKSIC.
4.
Costs are costs in the intervening and rescission applications.
Under case numbers
065994/2023 and 058925/2023:
5.
The application to stay the execution of the order granted under case
number 065994/2023 by Mogotsi AJ
on 12 July 2023 is dismissed with
costs;
6.
The application to stay the execution of the order granted under case
number 058925/2023 by Holland-Muter
J on 29 June 2023 is dismissed
with costs.
E
van der Schyff
Judge
of the High Court
Delivered:
This judgement is handed down electronically by uploading it to the
electronic file of this matter on CaseLines.
It will be emailed to
the parties/their legal representatives as a courtesy gesture.
For
the first and second intervening applicants:
Adv.
JW Steyn
Instructed
by:
CDH
Inc.
For
the third intervening applicant:
Adv
KD Ramolefe
Instructed
by:
State
Attorney
For
the liquidators:
Adv.
SJ van Rensburg SC
With:
Adv.
R de Leeuw
Instructed
by:
DLBM
Inc.
Date
of the hearing:
15
September 2023
Date
of judgment:
21
September 2023
[1]
The
case number reflected on the papers filed of record is 39215/2022,
but the matter is accessed on CaseLines by using the case
number
B39215/2022.
[2]
Whilst
a date was agreed on at the hearing, one of the counsel belatedly
indicated his unavailability and a new date is to be
determined.
[3]
Reckitt
& Colman SA (Pty) Ltd v SC Johnson & Son (SA) (Pty) Ltd
1995
(1) SA 725
(T) 729I-730G.
[4]
See
Bakgatla-Ba-Kgafela
Property Association v Pilane and Others
(M450/2021)
ZANWHC 62 (25 May 2023) at para [17].
[5]
See
Bakgatla-Ba-Kgafela
Property Association v Pilane and Others
(M450/2021)
ZANWHC 62 (25 May 2023) at para [16].
[6]
[6]
Four
Wheel Drive Accessory Distributors v Rattan
NO
2019
(3) SA 451
,
Mars
Incorporated v Candy World (Pty) Ltd
[1990] ZASCA 149
;
1991
(1) SA 567
(A) at
575H–I;
Kommissaris
van Binnelandse Inkomste v Van der Heever
1999
(3) SA 1051
(SCA) at
1057G–H.
[7]
I
note that reference is made in paragraph 4.1 of the order to Mxoxo
Logistics (Pty) Ltd in liquidation.
sino noindex
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