Case Law[2026] ZAGPJHC 51South Africa
Nkomazana v Shisa Sangweni Holdings Proprietary Limited & Others (061982/2024) [2026] ZAGPJHC 51 (30 January 2026)
High Court of South Africa (Gauteng Division, Johannesburg)
30 January 2026
Headnotes
under Deed of transfer number T000069265/2023.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Nkomazana v Shisa Sangweni Holdings Proprietary Limited & Others (061982/2024) [2026] ZAGPJHC 51 (30 January 2026)
Nkomazana v Shisa Sangweni Holdings Proprietary Limited & Others (061982/2024) [2026] ZAGPJHC 51 (30 January 2026)
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number:
061982/2024
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: YES
30 January 2026
In
the matter between:
IVY
NTSEPENG
NKOMAZANA
Applicant
and
SHISA
SANGWENI HOLDINGS PROPRIETARY LIMITED
First Respondent
HLENGWEYINKOSI
DUBE
Second Respondent
BIANCA
GUGU
GUMEDE
Third Respondent
THE
REGISTRAR OF DEEDS: PRETORIA
Fourth Respondent
THE
LEGAL PRACTICE COUNCIL (LPC)
Fifth Respondent
JUDGMENT
WANLESS J
Introduction
[1] In this
application, one Ivy Ntsepeng Nkomazana, an adult female, is the
Applicant. Shisa Sangweni Holdings (PTY) Limited
is the First
Respondent; Hlengweyinkosi Dube is the Second Respondent; Bianca Gugu
Gumede is the Third Respondent; the Registrar
of Deeds (Pretoria) is
the Fourth Respondent and the Legal Practice Counsel is the Fifth
Respondent.
[2] It was always
the intention of this Court to deliver a written judgment in this
matter. In light of,
inter alia,
the onerous workload
under which this Court has been placed and the lack of administrative
assistance, this has simply not been
possible without incurring
further delays in the handing down thereof. In the premises,
judgment is being delivered
ex tempore.
Once
transcribed, it will be “
converted
”, or more
correctly “
transformed
”, into a written judgment
and provided to the parties. In this manner, neither the
quality of the judgment nor the
time in which the judgment is
delivered, will be compromised. For the purposes of the time
limits as prescribed in terms
of the provisions of subrule
(49)(1)(b), the date shall be the date upon which the written
judgment is uploaded onto Caselines.
This Court is indebted to
the transcription services of this Division who generally provide
transcripts of judgments emanating
from this Court within a short
period of time following the delivery thereof on an
ex tempore
basis.
[3] The relief
sought by the Applicant
(as set out, verbatim, in the Applicant’s
Notice of Motion)
reads as follows:
[1] “Cancelling
the deed of sale entered into between the Applicant and the First
Respondent regarding the sale of immovable
property fully described
as Holding 169, Lindequesdrif Agricultural Holdings, Extension 1,
province of the capital North-West (the
immovable property) held
under Deed of transfer number T000069265/2023.
[2] Directing
the Fourth Respondent to cancel or reverse the transfer and
registration of the immovable property from the
name of the First
Respondent back to the name of the Applicant.
[3] Directing
the First to the Third Respondents to pay costs of this application
on an attorney and client scale.”
[4] The said relief
is opposed by the First Respondent and the Second Respondent only.
The facts
[5] The facts in
this matter, which are either common cause or which cannot be
seriously disputed by any of the parties, are
as set out hereunder.
[6] On or about the
29
th
of August 2023 at or near Johannesburg, Gauteng, the
Applicant, acting in person and the First Respondent, represented by
the Second
Respondent, duly authorised thereto, entered into a
written agreement of purchase and sale (“
the agreement
”).
[7] In terms of the
agreement the Applicant sold to the First Respondent a plot of land
measuring approximately two hectares
(“
the property
”)
and situated in the North-West Province. The purchase price to
be paid by the First Respondent to the Applicant in
respect of the
property was R 300 000.00. This was payable by the payment
of a deposit of R 150 000.00 on signature
of the agreement “
to
the trust account of the Conveyancing Attorney
” with the
balance of the purchase price, namely R150 000,00, being payable
“
on the date that the conveyancing attorney confirms that
the transfer documents have been lodged at the Pretoria Deeds
Office
.”
[8] The agreement
further provided that “
The full purchase price shall be paid
by the conveyancing attorney to the Seller
”
(“the
Applicant”) within 48 (forty - eight) hours of the registration
of the property into the name of the Purchaser
(the First
Respondent) at the Deeds Office.”
Importantly, the
agreement also states
(verbatim)
that “
Transfer of
the Property shall be affected by the following Conveyancing
Attorneys NDLOVU GUMEDE ATTORNEYS (tel: 0[…]
/ 0[…])
(email: b[…]) situated at 2[…] P[…]
Street, N[…], Randburg, were appointed specifically
by the
Purchaser.
”
[9]
As set out in this judgment
[1]
the Third Respondent in the present matter is one Bianca Gugu
Gumede. In the Applicant’s Founding Affidavit and
admitted
by the First and Second Respondents in their Answering
Affidavit, the Third Respondent is more fully described as “
Bianca
Gugu Gumede, an adult female person of full legal capacity, a
conveyancer and director of a law firm, Ndlovu Gumede Attorneys
with
principal place of business at 2[…] H[…] Street, N[…],
EXT 15, Randburg, Gauteng Province.
”
In the
premises, it is clear from the aforegoing that the incorrect party
may well have been cited as the Third Respondent in the
application.
However, in light of the fact that,
inter
alia
,
there is no opposition in the present matter by either Ndlovu Gumede
Attorneys or Bianca Gugu Gumede and that the citation of
the Third
Respondent was never an issue on the application papers or when the
matter was argued before this Court, it can be accepted
that this
“
issue”
,
if indeed it is one, does not require any further attention by this
Court.
[10] On or about
the 30
th
of September 2023 the purchase price was fully
paid by the First Respondent to the Third Respondent (
by making
payment into the Third Respondent’s business account
) and
on or about the 9
th
of November 2023 the property was
transferred and registered in the name of the First Respondent.
Pursuant thereto, the Third
Respondent has failed to pay the purchase
price to the Applicant.
[11] As a result of
the Third Respondent's failure to make payment to the Applicant as
aforesaid the Applicant, on or about
the 3
rd
of April
2024, instituted an application in this Court, under case number
35178/2024, in terms of which the Applicant claims from
the Third
Respondent,
inter alia
, payment of the net proceeds of the
sale. Thereafter, on or about the 5
th
of June 2024,
the Applicant instituted the present application.
Issues
[12] The principal
issues which this Court is called upon to determine are (a) whether
the citation of the Second Respondent
constitutes a misjoinder and
(b) whether the Applicant is entitled to cancel the agreement.
Alleged misjoinder
of the Second Respondent
The First and
Second Respondent’s submissions
[13] The Second
Respondent has been improperly joined in this application. It
is common cause that the Second Respondent
acted in his capacity as a
director of the First Respondent during the sale transaction. A
private company is a separate
legal entity from its shareholders and
directors, capable of entering into contracts, suing and being sued
in its own name.
[14]
Subsection 19(2) of the Companies Act provides that
[2]
“
A
person is not, solely by reason of being an incorporator, shareholder
or director of a company, liable for any liabilities or
obligations
of the company, except to the extent that the Act or the company’s
Memorandum of Incorporation provides otherwise.
”
[15] The Applicant
has not alleged or proved that the Second Respondent breached the
sale agreement to which he was not a
party; breached his fiduciary
duty as a director or acted in a manner justifying the piercing of
the corporate veil.
[16] The inclusion
of the Second Respondent contravenes subsection 19(2) of the
Companies Act and the principle of separate
legal
personality, constituting a misjoinder. It was
submitted on behalf of the First and Second
Respondents that the
Applicant’s claim against the Second Respondent should be
dismissed with costs on an attorney and client
scale.
The Applicant’s
submissions
[17]
In broad summary, it was submitted (
correctly
in the opinion of this Court
)
that in order to determine whether there exists a misjoinder or not,
the general principle in our law requires that it be determined
whether the Second Respondent has a direct and substantial interest
in the subject-matter of the litigation, which may be prejudicially
affected by the judgment of the Court.
[3]
[18] It was further
submitted that the Second Respondent is the sole director of the
First Respondent, its agent and “
controlling mind
”.
In all the dealings between the First Respondent and the Applicant
the Second Respondent has been the sole decision
maker and is
responsible for signing the agreement as well as the transfer
documents in order to give effect to the transfer of
the property
into the First Respondent's name. In the premises, it was
submitted that, by virtue of the composition of the
First Respondent,
the Second Respondent has an interest in the subject-matter of the
litigation.
[19] Arising from
the aforegoing, it was submitted, on behalf of the Applicant, that
there had been no misjoinder.
Discussion and
finding
[20] In the first
instance, it is imperative to note that the only relief sought by the
Applicant against the Second Respondent
is in respect of costs.
Rather than oppose the application on the basis that he should not be
liable for costs the Second
Respondent has elected to oppose the
application in its entirety. In doing so, he has raised the
issue of misjoinder.
[21] Putting aside
whether or not, in the event of,
inter alia
, this Court
finding that the Applicant should be granted the relief sought and
this Court, in the exercise of its discretion, granting
a costs order
against the Second Respondent, it must be accepted that, on the facts
which are common cause in this matter, the
Second Respondent does
indeed have a direct and substantial interest in the outcome of the
present matter. In the premises,
this Court finds that there
has been no misjoinder in respect of the Second Respondent in the
application.
Whether the
Applicant is entitled to cancel the agreement
The Applicant's
case
[22] The basis upon
which the Applicant relies for being entitled to cancel the agreement
is that the agreement has been breached
in two (2) material respects,
namely:
22.1. the
failure of the First Respondent to effect payment of the purchase
price into the trust account of the Third
Respondent; and
22.2. the
failure of the Third Respondent to make payment of the purchase price
to the Applicant.
The case for the
First and Second Respondents
[23] The First and
Second Respondents submit that the Applicant has failed to show that
she is entitled to the relief sought
in that:
23.1 the
Applicant has not met the requirements for cancellation in terms of
section 6 of the Deeds Registries Act,
47 of 1937 (“
the
Act
”);
22.2 the
Third Respondent's failure to pay the net proceeds of the sale to the
Applicant does not affect the validity
of the transfer of the
property, which requires (a) delivery by registration of transfer in
the Deeds Office and (b) a valid real
agreement.
The law
[24]
In the first instance the Applicant relied upon the matter of
Minister
of Agriculture and Land Affairs and Another v De Klerk and Others
[4]
where
it was held:
“
Whether
the conveyancer was the agent of the seller for receiving payment of
the purchase price from the purchaser in this instance
depends solely
on the terms of the deed of sale
.
The
conveyancer received and held the money paid over to him in terms of
the sale, although not as a party to the deed of sale.
No other
tacit or express authorization is relied upon
.”
[5]
[25]
Reliance was also placed by the Applicant upon the
dicta
of
Botha
JA in the matter of Baker v Probert
[6]
where
the learned Judge
[7]
stated
the following:
“
I
have difficulty in visualizing a situation (save possibly for an
exceptional case) in which there could be due performance of
the
obligation to pay the purchase price, by paying it to a third party,
unless that third party was appointed and authorized by
the seller to
accept the payment, thus constituting him his agent for the purpose
.”
[26]
Counsel for the Applicant pointed out that in the matter of
De
Jongh v Philippides and Others
[8]
this
Court held
[9]
that:
“
It
is fairly trite and a long established legal principle that a
principal is liable for the dishonest acts of his agent, even where
the agent commits a fraud upon the principal
.”
[10]
[27]
In support of their opposition to the relief sought by the Applicant
in this matter the First and Second Respondents
relied upon the
decision in
Nedbank
Ltd v Mendelow NO and Another
[11]
,
where it was held
[12]
that:
“…
where
there is no real intention to transfer ownership on the part of the
owner of the property, then a purported registration of
transfer (and
likewise the registration of any other real right such as a mortgage
bond) has no effect.
”
[13]
[28]
Also, the First and Second Respondents relied upon the principle as
set out by the Supreme Court of Appeal
(“the
SCA”)
in
the matter of
Legator
McKenna v Shea
[14]
that:
“…
if
there is any defect in what he termed the “one real agreement”
- that is, the intention on the part of the transferor
and the
transferee to transfer and to acquire ownership of a thing
respectively - then ownership will not pass despite registration.
Thus while a valid underlying agreement to pass ownership, such as a
sale or donation, is not required, there must nonetheless,
be a
genuine intention to transfer ownership
.”
[15]
Discussion
Can
the Applicant cancel the agreement on the basis that the First
Respondent did not make payment of the purchase price into the
Third
Respondent’s trust account but paid that purchase price into
the Third Respondent's business account?
[29] It is common
cause in this matter that payment by the First Respondent of
the purchase price
was paid by a
payment of the deposit of R 150 000.00 and the balance of the
purchase price
(also R150 000.00)
into the business
account of the Third Respondent.
[30] Subclause
2.2.1 of the agreement, which deals with the payment of the deposit,
specifies that this payment should be
made to the trust account of
the Conveyancing Attorney. However, subclause 2.2.2 of the
agreement, which deals with the payment
of the balance of the
purchase price, simply states that the further sum of R 150 000.00
“…
is payable by the Purchaser
(First Respondent)
on the date that the conveyancing attorney
(Third Respondent)
confirms that the transfer documents have been lodged at the
Pretoria Deeds Office.
” Significantly, subclause
2.2.2 makes no provision whatsoever as to whom the amount in question
is to be paid and,
if payment is to be made to the attorney carrying
out the transfer of the property, into which type of account
controlled by that
attorney.
[31] Even if this
Court should accept (
in favour of the Applicant
) that upon a
proper interpretation of the agreement the First Respondent was
obliged to make payment to the Third Respondent and
into the Third
Respondent's trust account, it is difficult to accept that the First
Respondent's failure to comply strictly therewith
constitutes a
material breach of the agreement entitling the Applicant to cancel
same.
[32] This is
because,
inter alia
, it is common cause on the application
papers before this Court that payment was made to the Third
Respondent (
who confirmed same
). Moreover, as pointed
out in the First and Second Respondents’ Answering Affidavit,
if payment into the business account
was indeed a material breach of
the agreement the Applicant failed to provide the First Respondent
with a written notice to remedy
the breach in terms of the agreement
(
subclause 6.1 thereof
) when the Applicants became aware
thereof during or about October 2023.
[33] In addition to
the aforegoing, the Second Respondent, on behalf of the First
Respondent, made the payments into a bank
account the details of
which were provided by the Third Respondent. In doing so, the
Second Respondent acted on the representations
of the Third
Respondent, which he was entitled to do. Indeed, the Applicant
never disputed same.
[34] In the
premises, this Court finds that the payment of the purchase price by
the First Respondent into the business account
of the Third
Respondent is not a material breach of the agreement entitling the
Applicant to cancel the agreement.
The defence of the
First and Second Respondents that the failure of the Third Respondent
to pay the net proceeds of the sale to
the Applicant does not affect
the validity of the transfer of the property.
[35]
As set out earlier in this judgment
[16]
the First and Second Respondents contend that,
inter
alia
,
the transfer of the property from the Applicant to the First
Respondent is valid. This is because (
so
the argument goes
)
there was delivery by registration of transfer in the Deeds Office
and there was a valid real agreement with the intention to
transfer
ownership of the property.
[36] Whilst this
Court fully accepts the said principles of law, as supported by the
authorities as set out earlier in this
judgment, this Court must
reject that those principles, applied to the facts of the present
matter, afford the First and Second
Respondents a valid defence to
the relief as sought by the Applicant.
[37] The reasons
therefor are,
inter alia
, that the intention to transfer on
the basis of a valid real agreement can only exist where that
agreement remains in force. In
the event of that agreement
being breached, giving rise to the cancellation thereof, a party to
the agreement cannot rely on a
valid real agreement with the
intention to transfer ownership of the property to support a valid
transfer of the property. Neither
the First or Second
Respondent presented any argument before this Court or presented any
authority in support of such an argument,
which would gainsay the
said reasoning as applied by this Court.
[38] In the
premises, this Court finds that the principles relied upon by both
Respondents and as enunciated by the authorities
referred to herein
do not, on their own, constitute a defence to the relief sought by
the Applicant. Of course, this is wholly
dependent upon the
Applicant proving a material breach of the agreement by the First
Respondent entitling the Applicant to cancel
the agreement.
Is the Applicant
entitled to cancel the agreement on the ground of a material breach
thereof, arising from the failure of the Third
Respondent to pay to
the Applicant the purchase price?
[39]
This ground relied upon by the Applicant is, in the opinion of this
Court, the crux of the present matter. In passing,
a decision
in respect thereof would appear to encompass the ground of opposition
raised by the First and Second Respondents that
the Applicant has
failed to satisfy the requirements for cancellation in terms of
section 6 of the Act.
[17]
[40] Subclause 3.1
of the agreement states that:
“
Transfer
of the Property shall be effected by the following Conveyancing
Attorney, Ndlovu Gumede Attorneys (tel: 0[…]
0[…])
(email:
b[…]
)
situated at 2[..] P[…] Street, N[…], R[…]
,
were
appointed specifically by the purchaser
.”
[18]
[41]
Relying on the common cause facts in this matter read with the
applicable principles as set out,
inter
alia
,
in
De
Klerk; Baker
and
De
Jongh,
[19]
it
was submitted, on behalf of the Applicant, that:
41.1 it was First
Respondent’s election to appoint the Third Respondent for the
purpose of facilitating the transaction;
41.2 in electing to
appoint the Third Respondent the conclusion that ought to be drawn is
that the Third Respondent was appointed
as the First Respondent's
agent. The Third Respondent received the funds, not as a party
to the agreement, but rather as
a third-party agent of the First
Respondent;
41.3 it cannot be
said that the Third Respondent was the Applicant's agent in that
there was no authority given by the Applicant
to the Third Respondent
for her to act in that capacity. Therefore, the First
Respondent is liable for the breach of the
agreement as the principal
of the Third Respondent.
Conclusion
[42] This Court has
no hesitation in accepting the said submissions made on behalf of the
Applicant. Further, it must
be accepted that the failure of the
Third Respondent to pay the proceeds of the sale to the Applicant,
constitutes a material breach
of the agreement.
[43] In the
premises, the Applicant is entitled to cancel the agreement. Arising
therefrom, the Applicant is entitled
to the relief sought.
Costs
[44] It is trite
that costs should normally follow the result. Further, it is
trite that a Court has a general discretion,
to be exercised
judicially, when considering an award for costs. The principle that
costs should normally follow the result would
apply unless any
unusual circumstances exist. No such circumstances have been drawn to
the attention of this Court. In the premises,
the Applicant should be
awarded costs.
[45] In its Notice
of Motion the Applicant seeks an order that “…
the
First to Third Respondents… pay costs of this application on
an attorney and client scale
.” Insofar as the Second
Respondent is concerned the order sought by the Applicant that he be
liable for costs amounts,
in effect, to a costs order
de bonis
propris
. In the opinion of this Court the factors that
should be present for this Court, in its discretion, to make such an
order,
are simply not apparent from the application papers.
Arising therefrom, this Court declines to make such an order.
[46] As far as the
Third Respondent is concerned, there has been no opposition to the
relief sought in the present matter.
In the premises, this
Court finds that a cost order against the Third Respondent would not
be justified or appropriate.
[47] Further, in
the opinion of this Court, a punitive costs order against the First
Respondent is not, on the facts of this
matter, warranted.
Order
[48] This Court
makes the following order:
1.
The deed of sale entered into between the
Applicant and the First Respondent in respect of the immovable
property, more fully described
as Holding 169, Lindequesdrif
Agricultural Holdings, Extension 1, Province of the North-West (“
the
immovable property”
) held under
Deed of Transfer, number T000069265/2023 (“
The
Deed of Transfer
”
) is cancelled.
2.
The Fourth Respondent is to cancel and reverse the
transfer and registration of the immovable property held under the
Deed of Transfer,
from the name of the First Respondent back into the
name of the Applicant.
3.
The First Respondent is to pay the costs of this
application.
BC WANLESS
JUDGE OF THE HIGH
COURT
JOHANNESBURG
Date
of Hearing:
16
April 2025
Date
of
ex
tempore
Judgment:
24 November 2025
Date
of written Judgment: 30
January
2026
Appearances
On
behalf of the Applicant: Adv Boitumelo Potsane
Instructed
by: Sibanda Bukhosi Attorneys Inc
Email:
info@bsincattorneys.co.za
On
behalf of the First and Second Respondents: Mr T Mudenda
Instructed
by: Mudenda Inc Attorneys
Email:
tendayi@mudendainc.co.za
/
wamudenda@gmail.com
[1]
Paragraph
[1] ibid.
[2]
Act
71/2008.
[3]
Snyders v De Jager
2017 JDR 0051 (CC at paragraph) [9].
[4]
At
paragraph [16].
[5]
1985
(2) SA 429 (AD).
[6]
2023
JDR 4385 (GJ).
[7]
At
440A-C
.
[8]
2023
JDR 4385 (GJ).
[9]
At
paragraph
[15].
[10]
Whilst
the order of this Court was set aside by the Full Court of this
Division, this principle was not disturbed by the judgment
of the
Full Court.
[11]
2013
(6) SA 130 (SCA).
[12]
At
paragraph [13].
[13]
See
Botha NO v Lebako-Radebe and Others (16835/2021) [2022] ZAGPJHC 22
September 2022.
[14]
2010
(1) SA 35
(SCA) at paragraphs [21] [22].
[15]
See
also
Radebe
and Another v Sheriff for the District of Vereeniging and Others
(31495/13) [2014] ZAGPHHC 228 25 September 2014 at paragraph
[20].
[16]
Paragraph
[23] ibid.
[17]
Subparagraph
23.1 ibid.
[18]
Emphasis
added.
[19]
Paragraphs
[24] to [26] ibid.
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