Case Law[2025] ZAWCHC 108South Africa
Curro Heights Properties (Pty) Ltd v Nomic 151 (Pty) Ltd and Others (Leave to Appeal) (22696/2024) [2025] ZAWCHC 108 (17 March 2025)
High Court of South Africa (Western Cape Division)
17 March 2025
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Curro Heights Properties (Pty) Ltd v Nomic 151 (Pty) Ltd and Others (Leave to Appeal) (22696/2024) [2025] ZAWCHC 108 (17 March 2025)
Curro Heights Properties (Pty) Ltd v Nomic 151 (Pty) Ltd and Others (Leave to Appeal) (22696/2024) [2025] ZAWCHC 108 (17 March 2025)
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sino date 17 March 2025
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 22696/2024
In the matter between:
CURRO
HEIGHTS PROPERTIES (PTY)LTD
Applicant
and
NOMIC
151 (PTY) LTD
First
Respondent
CHAVONNES
BADENHORST ST CLAIR
COOPER
N.O
Second
Respondent
SUMIYA
ABDOOL GAFAAE KHAMMISSA N.O
Third
Respondent
COMPANIES
& INTELLECTUAL PROPERTY
COMMISSION
Fourth
Respondent
MASTER
OF THE HIGH COURT, CAPE TOWN
Fifth
Respondent
ABSA
BANK LTD
Sixth
Respondent
Heard:
12 March 2025
Delivered:
17 March 2025
This
Order was handed down electronically.
JUDGMENT
Leave to Appeal
Application
PARKER
AJ
[1]
This is an application for a leave to appeal the
judgment delivered on 21 November 2024, in which the matter was
struck from the
roll with costs on an attorney and client scale.
[2]
The grounds for the appeal are that the court erred in finding:
2.1
That the applicant violated the judgment issued against him by
Justice Cloete on 12
November 2014, which applicant contends was made
against Mr Molyneux in his personal capacity as a self-litigant on
behalf of applicant.
2.2
That the applicant was not properly before the court given clause 2
of Justice Cloete
judgment. Applicant contends that he was properly
before court as there is a separate legal persona between the company
and its
director Mr Molyneux. That it was not Mr Molyneux who was
litigating, rather it was the applicant represented by Mr Molyneux in
a business rescue application against the respondents.
2.3
That Mr Molyneux needs to apply for leave to litigate. Applicant
contends that
such finding is unsustainable as the Justice Cloete
judgment was against Mr Molyneux in his personal capacity and
therefore applicant
does not require the permission to litigate in
its own name.
2.4
That the second and third respondents are not required to wait in
order to proceed
with the winding up process. In Applicant’s
view the finding is not supported by legal authority, as the issuing
of a business
rescue application automatically suspends the winding
up process. To this end the applicant seeks to revive the operation
of the
first respondent so as to rescue the first respondent from a
winding up.
2.5
That Mr Molyneux was aware that he was in breach of the Justice
Cloete order. He
argued that this is an incorrect assertion for
the same reasons set out in para 2. 3 and 2.4 above.
[3]
In the furtherance of applicant’s argument that the court
failed to give sufficient
weight to the principle of separate legal
persona, that there is a difference in the legal personality between
a company and its
directors is a ground for appeal. The corporate
veil can only be pierced if there are allegations of fraud,
dishonesty or improper
conduct when acting on behalf of a company.
In the absence thereof Mr Molyneux says he is only pursuing
what he believes
is in the best interest of applicant.
[4]
The applicant relied on the decision by Justice Allie J
[1]
,
in terms of a judgment granted where an application was dismissed
where the learned judge found that declaring the applicant a
vexatious litigant does not prohibit him from litigating in a
representative capacity.
[5]
In this regard applicant’s submission is that the current
judgment is in conflict
with the ruling made by Justice Allie, due to
the applicant being a juristic person in its own right and enjoys a
separate legal
personality, therefore applicant does not require the
leave of the court.
[6]
The applicant also relied on a Constitutional Court judgment that
judgments of courts
declaring persons vexatious litigants are limited
to the persons against whom the orders are issued and therefore the
applicant
cannot be treated as a vexatious litigant in these
proceedings even where it is represented by Mr Molyneux.
[2]
For
these
reasons the applicant argues that it has a reasonable prospect of
success and that it should be in the interest of justice
for leave to
appeal to be granted.
[7]
The first, second, third and sixth respondents (referred to as “the
respondents’)
relied on its heads of argument raised in the
main hearing and the only point of departure from those heads of
argument relates
to the issue that the applicant has not overcome the
late filing of its application for leave to appeal. The judgment was
delivered
on 21 November 2024, whilst the application for leave to
appeal would have been due and delivered on or before 12 December
2024
and not as late as 30 January 2025. The absence of an
application for condonation for the late filing of the leave to
appeal renders
the application dismissible. The applicant did not
deal with condonation at all and in reply raised the argument that
the judgment
was only served on the applicant on 5 December 2024.
[8]
Furthermore, in respondent’s view, applicant has not proven by
way of admissible
evidence that it is a creditor of the first
respondent which affects the applicant’s
locus standi.
[9]
It was also argued by the respondents that the judgment of Justice
Allie does not
furnish reasons for the judgment. This much was
conceded by the applicant in argument. Nor are the circumstances
known under which
the judgment was granted.
[10]
Respondents reiterate that applicant is vexatious and abusing the
court processes and the
business rescue process in order to avoid the
proper finalization of the winding up of the first respondent which
has been in final
liquidation and which business has not traded since
2012. In drawing attention to the SCA decision, where a warning was
sounded
that business rescue processes should not be used as a
mechanism for delay
[3]
, found
the applicant “nonsuited”.
[11]
The respondents remain of the view that Mr Molyneux as sole director
of the applicant contravened
the Cloete J order which provided that
no proceedings may be instituted without the leave of the court. The
whole intention of
the Vexatious Proceedings Act, 3 of 1956 and the
order of Judge Cloete was to prevent Mr Molyneux from instituting
meritless applications
against other parties thereby preventing the
costs having to be incurred by respondents in meritless applications
and reducing
wasted court time.
[12]
The applicants have not successfully overcome the hurdle of the late
filing of the application
for leave to appeal and on this ground
alone the leave to appeal is refused.
[13]
However, it is necessary for me to deal with the remainder of the
grounds raised in the
application for the leave to appeal.
[14]
At hearing of the main application, the court specifically enquired
from the applicant
whether he was aware of the existence of the
Justice Cloete judgment to which he answered in the positive. This
was reflected in
paragraph [12] of my judgment. His gripe was that he
was not acting in his personal capacity. I remain of the view, and I
am with
the respondents, that applicant required the leave of the
Court to institute the application which was also reflected upon in
paragraph
[15] of my judgment.
[15]
Instead, applicant has incorrectly sought to appeal the judgment
instead of seeking the
court’s permission for leave to
institute any legal proceedings.
[16]
Accordingly, for the reasons stated above and the case law provided
and relied upon by
the applicant, applicant has not met the stringent
threshold for bringing a leave to appeal in terms of
section 17(1)
of
the
Superior Courts Act 10 of 2013
.
An applicant must convince the court that there truly is a reasonable
prospect of success “
a
mere possibility of success, an arguable case or one that is hopeless
is not enough. There must be a sound, rational basis to
conclude that
there is a reasonable prospect of success on appeal.”
[4]
[17]
There are no reasons to depart from the usual costs order that costs
follow the result
and in keeping with the costs order granted in the
judgment, the same costs order follows.
[18]
Accordingly it is ordered that:
18.1
the application for leave to appeal is refused
18.2
the applicant is liable to first, second, third and sixth
respondent’s legal costs on an
attorney and client scale.
R
PARKER
ACTING
JUDGE OF THE HIGH COURT
Appearances
For
the Applicant:
Mr R J C Molyneux
Instructed
by:
In Person
Counsel
for the Second, Third &
Adv L Wessels
Sixth
Respondents:
Instructed
by:
Sandenbergh Nel Haggard
Ms E Loubser
This
judgment was handed down electronically by circulation to the
parties’ representatives by email.
[1]
In
re: Rhett Justin Christopher Molyneux Case No 18956/2015 dated 8
October 2015
[2]
Beinash
and Another v Ernst & Young and Others
1999 (2) SA 116
(CC)
[3]
Van Staden NO v Pro- Wiz Group (Pty) Ltd 2019(4)
SA 532(SCA)9[2019] ZASCA 7) para 22
[4]
MEC for health, Eastern Cape v Mkitha and Another
[2016] ZASCA 176
(25 November 2016) paragraphs [16] - [18]
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