Case Law[2025] ZASCA 4South Africa
Du Plessis v Majiedt N.O and Others (841/2023) [2025] ZASCA 4; [2025] 2 All SA 16 (SCA); 2025 (4) SA 74 (SCA) (28 January 2025)
Headnotes
Summary: Insolvency – locus standi of insolvent to sue in his own name – Insolvency Act 24 of 1936 – trustees were the correct persons to take action – discharge of provisional sequestration order does not confer locus standi on the insolvent retrospectively.
Judgment
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## Du Plessis v Majiedt N.O and Others (841/2023) [2025] ZASCA 4; [2025] 2 All SA 16 (SCA); 2025 (4) SA 74 (SCA) (28 January 2025)
Du Plessis v Majiedt N.O and Others (841/2023) [2025] ZASCA 4; [2025] 2 All SA 16 (SCA); 2025 (4) SA 74 (SCA) (28 January 2025)
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sino date 28 January 2025
FLYNOTES:
INSOLVENCY – Locus standi –
Insolvent
in own name
–
Appellant
was divested of estate and all his property belonged to and vested
in provisional trustees – Cannot institute
legal proceedings
in his own name without knowledge and consent of provisional
trustees – Trustees were correct persons
to take action –
Discharge of provisional sequestration order does not confer locus
standi on insolvent retrospectively
– Appeal dismissed –
Insolvency Act 24 of 1936
.
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Reportable
Case no: 841/2023
In the matter between:
TOBIAS CASPARUS DU
PLESSIS APPELLANT
and
DONOVAN MAJIEDT N
O FIRST
RESPONDENT
NICKY DE
KLERK SECOND
RESPONDENT
REGISTRAR OF DEEDS,
BLOEMFONTEIN THIRD
RESPONDENT
MASTER OF THE HIGH
COURT,
MAHIKENG FOURTH
RESPONDENT
MASTER OF THE HIGH
COURT,
BLOEMFONTEIN FIFTH
RESPONDENT
NICOLAAS DANIEL DE
KLERK N O SIXTH
RESPONDENT
SUSANNA JOHANNA
ELIZABETH
DE KLERK N
O SEVENTH
RESPONDENT
and
In the appeal in the
counter-application between:
NICOLAAS DANIEL DE
KLERK N O FIRST
APPELLANT
SUSANNA JOHANNA
ELIZABETH
DE KLERK
NO SECOND
APPELLANT
and
TOBIAS CASPARUS DU
PLESSIS FIRST
RESPONDENT
DONOVAN MAJIEDT N
O SECOND
RESPONDENT
LINDIWE FLORENCE KAABA
N O THIRD
RESPONDENT
GERT LOUWRENS DE WET N
O FOURTH
RESPONDENT
GONASAGREE GOVENDER N
O
FIFTH RESPONDENT
Neutral
citation:
Du Plessis v Majiedt
N O and Others
(Case no 841/2023)
[2025] ZASCA 4
(28 January 2025)
Coram:
DAMBUZA, MOLEFE, and SMITH JJA, and MJALI and
NAIDOO AJJA
Heard
:
3 SEPTEMBER 2024
Delivered
:
This judgment was handed down electronically by circulation to the
parties’ representatives by email, publication
on the Supreme
Court of Appeal website, and released to SAFLII. The date and time
for hand-down of the judgment is deemed to be
11h00 on 28 January
2025.
Summary:
Insolvency – locus
standi of insolvent to sue in his own name –
Insolvency Act 24
of 1936
– trustees were the correct persons to take action –
discharge of provisional sequestration order does not confer locus
standi on the insolvent retrospectively.
ORDER
On
appeal from:
Free State Division
of the High Court, Bloemfontein (Van Zyl J, sitting as court of first
instance):
The appeal is dismissed
with costs.
JUDGMENT
Naidoo AJA (Dambuza
JA, Molefe JA and Smith JA and Mjali AJA concurring):
[1]
During July 2021, the appellant, Mr Tobias Du Plessis (Mr Du Plessis)
and three trustees of the
Tafelkop Trust (including Mr Du Plessis as
one such trustee), instituted application proceedings in the Free
State High Court,
Bloemfontein (the main application), per Van Zyl J,
(high court), against the first respondent, Mr Donovan Majiedt (Mr
Majiedt),
in his capacity as a liquidator of Full Circle Projects
Twenty CC (in liquidation) (Full Circle). Mr Majiedt was one of two
liquidators
appointed to administer the insolvent estate of Full
Circle. The other liquidator was Ms Lindiwe Florence Kaaba (Ms
Kaaba), who
was not joined as a party in the main application. In
this application, Mr Du Plessis sought an interim interdict
restricting the
transfer of the property known as the Remaining
Extent of the Farm Gewonne 494, District Theunissen, Free State
Province, in Extent
85, 4198 hectares, held by Deed of Transfer
T11665/2000 (the property), to the second respondent, Mr Nicky de
Klerk (Mr De Klerk)
[2]
The appellant, a farmer, is the sole member of Full Circle, which
owns the property. He leased
various farms in order to conduct his
business operations, one such farm being the property. The lease
agreement in respect of
the property was concluded on 15 August 2018,
for a period of 9 years until September 2027. Full Circle was
subsequently liquidated on 22 January 2021. Mr Du Plessis
was also provisionally sequestrated on 18 March 2021. Gert
Lourens Steyn De Wet and Gonasagree Govender were appointed as
provisional
trustees of his insolvent estate. Full Circle had, on 4
November 2013, prior to the lease agreement being concluded with Mr
Du
Plessis, registered a continuing covering bond over the property
in favour of First National Bank Limited (FNB), as security for
monies loaned and advanced to it by FNB. Mr Du Plessis
represented Full Circle in signing the relevant documents for the
registration of the bond. Clause 3.3 of the covering bond stipulated
that ‘The Mortgagor shall not mortgage or in any way
alienate
or further encumber the Mortgaged Property, or any part thereof, nor
shall the Mortgagor give up occupation of the Mortgaged
Property, or
any part thereof, without the prior written consent of the
Mortgagee’. It is not in dispute that at the time
that Mr du
Plessis instituted the main application, he had been provisionally
sequestrated.
[3]
The liquidators of Full Circle were mandated by its creditors to
realise the assets of the company.
Acting in terms of that mandate,
the liquidators sold the property to the De Klerk Familie Trust (the
De Klerk Trust), represented
by Nicolaas Daniel De Klerk and Susanna
Johanna Elizabeth De Klerk (Mr and Ms De Klerk), without taking into
consideration the
lease agreement. Their case, in this regard, is
that there was no valid lease in existence at the time of the sale,
hence the property
was sold free of any lease. This is what catalysed
the main application, which is the subject of this appeal.
[4]
The relief Mr Du Plessis sought in the high court was, in summary:
4.1.
granting him the power to institute action or application proceedings
and/or oppose any action or application
proceedings, as advised;
4.2
staying the transfer of the property, into the name of Nicky Swart;
4.3
directing Mr Donovan Majiedt, the Liquidator of Full Circle and the
Master of the high court, Mmabatho,
to produce full disclosure and
copies of all documentation needed by all the applicants under case
number M000090/2020;
4.4
staying the transfer of the property for a period of 30 days after
receipt of the documents to enable
the applicants to issue and serve
summons upon all interested parties, for the cancellation of the
offer made by the second respondent
and accepted by Mr Majiedt;
4.5
the first to fifth respondents pay the costs of the application, only
if opposed. Directing any other
party opposing the application to pay
the costs jointly and severally with the first respondent;
4.6
that paragraphs 1 to 7 operate as an interim court order and calling
upon any interested parties be
called upon to give reasons why the
order should not be made final.
[5]
Mr Majiedt opposed the application essentially on the ground that:
(a) Mr Du Plessis who purported
to act both in his personal capacity
and as a trustee of the Tafelkop Trust, did not have locus standi
because he was insolvent
at the time he brought the main application;
(b) with regard to acting in his personal capacity, the
concursus
creditorum
had already been established and only the trustees of
his insolvent estate were permitted to represent his estate in a
court of
law; and (c) in respect of his acting on behalf of the
Tafelkop Trust, Mr Majiedt asserted that Mr Du Plessis similarly did
not
have locus standi, as an insolvent trustee is disqualified from
being a trustee of the Trust.
[6]
The counter-application was brought by Mr and Ms De Klerk, in their
capacities as trustees of
the De Klerk Trust. They cited, as
respondents, Mr Du Plessis, the two liquidators of Full Circle, being
Mr Majiedt and Ms Kaaba,
and the two provisional trustees of the
appellant’s insolvent estate, Messrs De Wet and Govender. The
relief claimed in the
counter-application is an order, in essence:
6.1
allowing the counter applicants (Mr and Ms De Klerk) to join the main
proceedings and bring the counter-application
against the liquidators
of Full Circle and the provisional trustees of the appellant;
6.2
granting them condonation be for the late filing of the
counter-application;
6.3
declaring the lease agreement entered into between Mr Du Plessis and
Full Circle on 15 August 2018,
null and void, alternatively
unenforceable;
6.4
Directing the first respondent in the counter-application (Mr Du
Plessis) to pay the costs of the counter-application;
6.5
In the event of the counter-application being opposed by any other
party, such party is directed to
pay the costs of the
counter-application, jointly and severally with the first respondent.
[7]
The high court dismissed the main application and granted the
counter-application. The high court
however, granted the appellant
leave to appeal to this Court in respect orders 3, 4, 5 and 6, in
terms of which the court, in essence,
dismissed, orders 3 and 4, in
the main application with costs. Orders 5 and 6 granted the
counter-application with costs and declared
the lease agreement
concluded between Mr Du Plessis and Full Circle on 15 August 2018,
void and/or unenforceable.
For the sake of
completeness, I set out the content of orders 3, 4, 5 and 6, made by
the high court
:
‘
Ad
the main application:
3.
The main application is dismissed.
4.
The first applicant in the main application, Tobias Casparus Du
Plessis, and the Trustees
of the Tafelkop Boerdery Trust, IT No.:
2207/2000 in their official capacities as such, pay the costs of the
main application,
jointly and severally, payment by the one, the
other to be absolved.
Ad the
counter-application
5.
The lease agreement concluded between the first respondent in the
counter-application, Tobias
Casparus Du Plessis and Full Circle
Projects CC on 15 August 2018, a copy of which lease agreement is
annexed to the first respondent’s
founding affidavit in the
main application as annexure J, is declared to be void and/or
unenforceable.
6.
The first respondent in the counter-application, Tobias Casparus Du
Plessis, shall pay the
costs of the aforesaid application.’
[8]
Three issues arise for determination in this appeal, namely the
appellant’s
locus standi in iudicio
(locus standi); the
validity of the lease agreement; and the status of the sale of the
property. Mr Majiedt reiterated that the
liquidators of Full Circle
opposed the appeal only in respect of orders 3 and 4 of the high
court. He asserted that there were
several issues which required
consideration: (a) whether Mr Du Plessis could obtain an interim
interdict against Mr Majiedt only,
without joining his co-liquidator,
Ms Kaaba; (b) whether Mr Du Plessis has satisfied the requirements
for the grant of an interim
interdict; and (c) whether Mr Du Plessis
had locus standi to institute the main application, as he was
provisionally sequestrated
at the time.
[9]
Mr Du Plessis argued that although the Ms Kaaba was not joined as a
respondent in the main application,
this defect was cured by the
joinder of both trustees of Full Circle in the joinder application by
the trustees of the De Klerk
Trust (Mr De Klerk and Ms De Klerk), who
themselves were granted leave to intervene as the sixth and seventh
respondents in the
main application. Similarly, the two provisional
trustees of Mr du Plessis’ insolvent estate were also joined in
the joinder
application by the De Klerk Trust. They therefore had
notice of both the main and counter-applications, and, so the
argument goes,
their failure to oppose either, indicated their
intention not to proceed with the litigation on behalf of the
appellant’s
insolvent estate, leaving him free to pursue such
litigation.
[10]
The provisional order of sequestration against Mr Du Plessis was
discharged in December 2021. He argued that
the effect of this is
that everything the insolvent did during the period that the
provisional sequestration order was in force,
is not affected by such
order. Put differently, it is as though the order was never granted,
and he was never sequestrated. Mr
Du Plessis therefore concluded that
he had locus standi to bring the main application. In this regard,
the appellant relied on
the judgment of the court in
Manison
v Oosterlaak
,
[1]
in which the court held that where a provisional order of
sequestration is set aside, the debtor is restored to his
status
quo ante
and
everything is to be judged as if the order had never been made.
Similar sentiments were expressed in
Sirioupoulos
v Tzerefos
,
[2]
the other case relied upon by the appellant.
[11]
Mr Du Plessis assailed the order of the high court declaring the
lease agreement void and unenforceable on
the ground that it was
wrong and legally unsustainable, as the court placed reliance on
Oosthuizen
v Mari
,
[3]
which dealt with the absence of consent at a statutory level, whereas
the present matter required consent at a contractual level.
He argued
that his authority to enter into the lease agreement derived from his
membership of Full Circle.
[12] He
argued further that the sale of the property to the De Klerk Trust
was irregular, as the liquidators did
not follow the contractually
stipulated procedure of first selling the property by public auction,
subject to the lease agreement.
Only if such sale did not yield an
amount sufficient to cover the outstanding debt, could the property
be sold without taking the
lease into consideration. The sale of the
property by private treaty prevented him from enforcing his rights in
terms of the lease
agreement. With regard to the validity of the
lease agreement, he argued that the mortgage bond simply created a
contractual relationship
between Full Circle and FNB and was not a
requirement or condition for conclusion of a valid lease agreement.
Non-compliance with
any term of the bond entitled the bank
immediately to claim all amounts due to it. It did not create a right
enforceable against
third parties.
[13] Mr
Majiedt assailed Mr du Plessis’ locus standi at two levels.
First, he asserted that Mr du Plessis
was insolvent at the time of
launching the main application, and, as such, was disqualified from
instituting court proceedings.
Only his trustees could litigate on
behalf of the Mr Du Plessis’ insolvent estate. He therefore
lacked locus standi to act
in his personal capacity. Second, Mr du
Plessis asserted that he acted in his capacity as a trustee of the
Tafelkop Trust. Mr Majiedt
argued further that unless the Trust Deed
provides otherwise, a trustee who is insolvent is, ipso facto
disqualified from being
a trustee of the (Tafelkop) Trust.
[14] Mr
Majiedt contended that since the lease agreement was entered into
after the continuing covering bond on
the property was registered in
favour of FNB. Clause 3.3 of the bond required the written consent of
FNB to alienate or encumber
the property. It is not in dispute that
no written consent from FNB was sought or furnished to enable Full
Circle and the appellant
to conclude a lease agreement in respect of
the property. For this reason, the first respondent asserted that the
lease agreement
was void
ab initio
The property was,
therefore, sold without the lease.
[15]
With regard to the transfer of the property, Mr Majiedt asserted that
the liquidators were authorised by
the creditors of Full Circle to
realise the assets of the insolvent estate. As a result of marketing
the property, an offer was
received from the De Klerk Trust, which
was accepted by the liquidators, after FNB had approved the sale.
That is how the property
came to be sold without the lease being
considered. Mr Majiedt further contends that the application stands
to be dismissed because
it is defective in that two liquidators were
appointed to administer the insolvent estate of Full Circle, but the
appellant cited
and seeks relief from only one. This, he argues, is
impermissible in terms of the law.
[16]
For their part, Mr and Ms De Klerk asserted that three issues
required the high court’s attention:
(a) whether the discharge
of a provisional order of sequestration remedies the lack of legal
standing of an insolvent who instituted
legal proceedings in his own
name, whilst under provisional sequestration and without the
knowledge and assistance of his duly
appointed trustees; (b) whether
a written lease agreement, knowingly entered into, in contravention
of the express provisions of
a mortgage bond, is void and
unenforceable and (c) whether the sale of immovable property by the
liquidators of an insolvent mortgagor,
is void and stands to be set
aside because it was sold by private treaty, free from the lease
agreement. Mr and Ms De Klerk were
in agreement with the contention
of Mr Majiedt, as well as the finding of the high court that Mr du
Plessis lacked locus standi
to bring the main application, and to
oppose the counter-application. While they did not, however, agree
with the finding of the
high court that the counter-application had
to be determined on an unopposed basis, they agreed with the court’s
finding
that the discharge of the provisional sequestration order did
not remedy Mr Du Plessis’s lack of locus standi.
[17] In
a similar vein to that argued by Mr Majiedt, Mr and Ms de Klerk were
of the view that Full Circle’s
non-compliance with
section 3.3
of the mortgage bond rendered the lease agreement void and
unenforceable. They argued that the registration of the third
mortgage
bond created a limited real right over the property in
favour of FNB, which was enforceable against third parties. They
further
contended that the property was sold to the De Klerk Trust
pursuant to the liquidators of Full Circle being mandated to do so by
the creditors of the insolvent estate. The value that FNB received
from this sale was far more than the amounts/values that would
have
been realised if the property had been sold to one of the other three
entities who had also made offers to purchase it. The
amount received
from the latter sale would have been insufficient to cover the amount
of the debt owed to FNB. Hence the sale of
the property to the De
Klerk Trust was valid.
[18] A
further point made by Mr and Ms De Klerk, as well as by Mr Majiedt,
is that, even if this court should
find that the lease agreement was
valid, the liquidators of Full Circle were entitled to sell the
property to the De Klerk Trust,
by virtue of the value that was
realised from such sale. The lease would have been terminated upon
the conclusion of that sale
and was not enforceable by the appellant.
Therefore, the further consequence of the sale is that the basis upon
which the appellant
approached the court for interdictory relief fell
away. The appellant, consequently failed to make out a case for the
interdictory
relief.
LOCUS STANDI
[19]
The relevant provisions of
section 20
the
Insolvency Act,
[4
]
read thus:
‘
(1)
The effect of the sequestration of the estate of an insolvent shall
be-
(a)
to
divest the insolvent of his estate and to vest it in the Master until
a trustee has been appointed, and, upon the appointment
of a trustee,
to vest the estate in him;
(b)
.
. .
(c)
.
. .
(d)
.
. .
(2)
For
the purposes of subsection (1) the estate of an insolvent shall
include-
(a)
all
property of the insolvent at the date of the sequestration, including
property or the proceeds thereof which are in the hands
of a sheriff
or a messenger under writ of attachment;
(b)
all property which
the insolvent may acquire, or which may accrue to him during the
sequestration, except as otherwise provided
in section
twenty-
three
.’
[20]
Mr du Plessis was, upon the grant of the order for his provisional
sequestration, divested of his estate
and all his property, both
movable and immovable, belonged to and vested in his provisional
trustees. He cannot therefore institute
legal proceedings in his own
name, without the knowledge and consent of the provisional trustees.
Section 23(6)
[5]
stipulates
circumstances where the insolvent may sue or be sued in his own name.
Where his trustees are aware of and approve the
legal action, or
where the trustees have acted improperly by not pursuing legal
action, the insolvent retains his right to pursue
such legal
proceedings independently.
[6]
In
this case, the relief sought by Mr Du Plessis was an interdict to
stay the transfer of the property to Mr De Klerk, pending
the
institution of an action by him (Mr du Plessis) to set aside the Mr
Majiedt’s acceptance of the offer to purchase the
property. Mr
Du Plessis at no stage indicated that the trustees had approved of
his initiating the main application or that they
refused to so on
behalf of his insolvent estate, and that he was, consequently, vested
with locus standi. His argument that he
derived his locus standi from
his membership of Full Circle is not sustainable.
[21]
The starting point is that the right of a person who has been
declared insolvent, whether provisionally or
finally, to bring or
defend legal proceedings is curtailed, save as provided in
s23
of the
Insolvency Act, and
is vested in the trustee who has been appointed
to administer his or her estate. Mr Du Plessis has not brought
himself within the
provisions of
s 23.
His invocation of his
membership of Full Circle does not absolve him from the consequences
of his insolvency. His interest
in Full Circle is an asset in his
insolvent estate of which he became divested once he became
provisionally insolvent.
[7]
It
is clear, in my view, that the appellant failed to establish his
locus standi to bring the application in his own name.
[22]
The further argument raised by the appellant was that although he was
provisionally sequestrated at the time
he launched the main
application, the order for his provisional sequestration had been
discharged by the time the matter was heard.
Relying on
Manison
[8]
and
Sirioupoulos
,
[9]
he argued that his lack of locus standi was remedied and restored
retrospectively. The decision in
Manison
was
based on
s 15
of Law 47 of 1887, which was the Insolvency law
applicable in Natal at that time.
Section 15
stated that:
‘
At
the hearing upon the return day of the summons, the Court or Judge
shall require proof of the debt of the petitioning creditor,
the
service of the summons and of the act of insolvency, or if more than
one act of insolvency is alleged in the summons, of some
one of the
alleged acts of insolvency, and if satisfied with the proof, may
grant a final order sequestrating the debtor’s
estate. If the
Court or Judge is not satisfied with the proof of the petitioning
creditor’s debt, or of the act of insolvency,
or of the service
of the petition, or is satisfied by the debtor that he is able to pay
his debts, or that for other sufficient
cause no order ought to be
made, the Court may dismiss the summons and petition and supersede
the provisional order for sequestration,
or may stay all proceedings
on the summons for such time as may in the discretion of the Court be
deemed reasonable, and may require
further proof of the matters in
issue. Whenever such summons and petition shall be dismissed by the
said Court, all questions affecting
the estate of any person against
whom it was presented, or any right of such person or of his
creditors or debtors, or the validity
of any alienation, transfer,
gift, cession, delivery, mortgage, pledge, payment, acquittance,
surrender or discharge made by such
person, or payment made to such
person, shall be judged of and determined as if such petition had
never been presented.’
Manison
was
therefore decided in the context of
s 15
and is not in keeping with
the current law on insolvency in South Africa.
[23]
There is no dispute that the
Insolvency Act 24 of 1936
repealed all
previous provincial Insolvency Statutes. The
Insolvency Act does
not
contain any provision that upon the discharge of an order of
provisional sequestration, the insolvent is put in a position
as
though the order was never made. In any event, what is relevant is
that when Mr Du Plessis launched the application there was
an
effective court order which deprived him of locus standi. He lacked
the requisite legal ability to launch the application. Therefore,
even on this argument, the appellant must fail, as his reliance on
Manison
and by implication, on
s15
of Law 47 of 1887, is
misplaced.
VALIDITY OF THE LEASE
[24]
That is effectively the end of the appellant’s case, making the
consideration of the other issues raised
by him unnecessary. However,
it is perhaps prudent to deal briefly with the remaining issues.
First, regarding the issue of the
validity of the lease agreement. As
correctly argued by the respondents, the mortgage bond registered
over the property, in favour
of FNB, conferred a limited real right
in the property upon FNB, and as such, became enforceable against
third parties. The appellant,
as the sole member of Full Circle would
have negotiated with FNB and signed the relevant documentation for
registration of the
mortgage bond. He knew what the terms and
conditions of the bond were, particularly that the consent of FNB
would have to be obtained
for the property to be leased to him. He
acted on behalf of Full Circle and also represented himself when the
lease agreement was
entered into, knowing that Full Circle was not
permitted to lease the property without the prior written consent of
FNB and, more
importantly, that such consent had not been obtained.
[25]
Section 37(1)
and (2) of the
Insolvency Act stipulate
that:
‘
(1)
A
lease entered into by any person as lessee shall not be determined by
the sequestration of his estate, but the trustee of his
insolvent
estate may determine the lease by notice in writing to the lessor:
Provided that the lessor may claim from the estate,
compensation for
any loss which he may have sustained by reason of the non-performance
of the terms of such lease.
(2)
If
the trustee does not, within three months of his appointment notify
the lessor that he desires to continue the lease on behalf
of the
estate, he shall be deemed to have determined the lease at the end of
such three months.’
It
is common cause that Mr Du Plessis’ provisional trustees did
not indicate that they wished to extend the lease, within
three
months of their appointment on 30 March 2021, or at all. The trustees
must therefore be deemed to have determined the lease
at the end of
those three months, meaning that the lease would have lapsed at that
time. The main application was instituted by
Mr Du Plessis in July
2021, being after the lease had lapsed. Therefore, there was no valid
lease in existence which would have
founded Mr Du Plessis’
claim to a
prima facie
right for the interdictory relief that
he claimed. On this score too, he has failed to make out a case for
the relief he seeks.
He also did not satisfy the other requirements
for interdictory relief, namely (a) a reasonable apprehension of
irreparable harm
if the interdict was not granted, (b) that the
balance of convenience favours the granting of the interdict and (c)
that he has
no other satisfactory remedy.
STATUS
OF THE SALE
[26]
It follows, therefore, that the sale of the property is
unimpeachable. FNB asserts that it was unaware of
the lease, hence it
approved the sale by the liquidators of Full Circle. The latter were
authorised by the creditors of the appellant,
at the first and second
meeting of creditors, to realise the assets of the insolvent, which
they did. The liquidators cannot be
criticised for selling the
property by private treaty, as there was no valid lease in place when
the sale of the property was concluded.
This, coupled with the fact
that the amount realised from the sale of the property to the De
Klerk Trust was far more than would
have been realised from the
offers relied upon by Mr Du Plessis, renders the sale to the De Klerk
Trust acceptable and justifiable.
The appeal must therefore fail.
[27]
With regard to costs, Mr Du Plessis asked for costs in his Notice of
Motion, against the respondents, only
if opposed. No mention was made
of costs
de bonis propriis
. In this court he argues for such
punitive costs. However, no basis had been shown for such an order.
In any event, because two
liquidators were appointed in the insolvent
estate of Full Circle, it is impermissible to request costs against
one liquidator
and not the other.
[28]
In the circumstances, the following order is made:
The
appeal is dismissed with costs.
NAIDOO AJA
ACTING JUDGE OF APPEAL
Appearances
For appellant: LW De
Koning SC (with him JH vd B Lubbe)
Instructed by: Cristo
Faber Attorneys, Hoopstad
EG Cooper Majiedt,
Bloemfontein
For first respondent: P
Zietsman SC
Instructed by: Hendre
Conradie Inc., Bloemfontein
For sixth and seventh
respondents: CD Pienaar
Instructed by: Symington
De Kok Inc., Bloemfontein.
[1]
Manison
v Oosterlaak
(1908)
29 NLR 515.
[2]
Sirioupoulos
v Tzerefos
1979(3)
SA 1197 (O) 1204G-1205B.
[3]
Oosthuizen
v Mari
[2015]
JOL 32431 (GJ).
[4]
Insolvency
Act No 24 of 1936
.
[5]
The
section provides as follows: ‘
The
insolvent may sue or may be sued in his own name without reference
to the trustee of his estate in any matter relating to
status or any
right in so far as it does not affect his estate or in respect of
any claim due to or against him under this section,
but no cession
of his earnings after the sequestration of his estate, whether made
before or after the sequestration shall be
of any effect so long as
his estate is under sequestration.’
[6]
Marais
v Engler Earthworks (Pty) Ltd
;
Engler
Earthworks (Pty) Ltd v Marais
1998
(2) SA 450
(E)
,
applied in
Haupt
t/a Soft Copy v Brewers Marketing Intelligence (Pty) Ltd and Others
2005
(1) SA 398
(C) at 424G.
[7]
His estate first vested
in the Master and thereafter the appointed trustee(s).
[8]
Footnote
1 supra.
[9]
Footnote
2 supra.
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