Case Law[2025] ZAGPJHC 254South Africa
Langlaagte Truck And Car CC v 8 Mile Investments 539 (Pty) Ltd and Others (2024/007632) [2025] ZAGPJHC 254 (10 March 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
10 March 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Langlaagte Truck And Car CC v 8 Mile Investments 539 (Pty) Ltd and Others (2024/007632) [2025] ZAGPJHC 254 (10 March 2025)
Langlaagte Truck And Car CC v 8 Mile Investments 539 (Pty) Ltd and Others (2024/007632) [2025] ZAGPJHC 254 (10 March 2025)
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION,
JOHANNESBURG
Case
Number:
2024-007632
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES/NO
(3)
REVISED: YES/NO
In
the matter between:
L
ANGLAAGTE
TRUCK AND CAR CC
First Applicant
and
8
MILE INVESTMENTS 539 (PTY)
LTD
First Respondent
BRADLEY
TRENT
JONES
Second Respondent
ABSA
BANK
LIMITED
Third
Respondent
REGISTRAR
OF DEEDS PRETORIA
Fourth
Respondent
COMPANIES
AND INTELLECTUAL PROPERTIES COMMISSION
Fi
fth
Respondent
MINISTER
OF
FINANCE
Sixth
Respondent
THE
SHERIFF OF JOHANNESBURG EAST
Seventh
Respondent
JUDGMENT
PJ DU PLESSIS, AJ
INTRODUCTION
[1]
In
this opposed motion the applicant is requesting the reinstatement of
the First Respondent in terms of sections 82 (4) and 83
(4) of The
Companies Act
[1]
.
[2]
It started with the seemingly harmless phrase,
from Adv. Rodriques on behalf of the Applicant: “The respondent
is not opposing
the application”.
[3]
Simplicity, was expected, but a conundrum revealed
itself. This, as a property sold in execution was in the centre of
this dispute.
As such, a detailed chronological explanation of events
is required.
[4]
The Second Respondent, Mr. Bradley Trent Jones
(Mr. Jones) was the sole director of the First Respondent 8 Mile
Investments (8 Mile),
who was the registered owner of the Property.
This property was bonded to the Third Respondent, ABSA Bank Limited,
for an amount
of R3,200,000. Following a default on the bond
repayments, an order for execution was granted by Adams J on 20
December 2018. The
order declared the Property executable, with a
reserve price of R5,000,000 and a proviso, that if the reserve price
is not attained
at the first sale in execution, ABSA can set a new
sale date and sell the property without reserve.
[5]
The
property is in Waverley Johannesburg and its correct description
according to title deed transfer number T[…] is “
Remaining
Extent of Portion 1
of
Erf […] W[…] (Johannesburg) Township, Registration
Division I.R. Province of Gauteng
measuring
1532 square meters
”
[2]
(the
Property). The property was the business and home address of Mr Jones
and he still resides there with his wife and children.
[6]
The Adams J Order declared executable a property
described as “
Portion 1
of erf 1[…] W[…], (Johannesburg)
Township, Registration Division I.R.
Province of Gauteng
measuring
3718 square meters
”
[7]
The problem -
Portion
1
declared executable by the order on
20 December 2018, is an incorrect description of the property which
should have read the “
Remaining
extent
of” portion 1. The
square meterage was 3718 whilst it should have read 1532. The deed
transfer number T3[…] and erf
description was correct.
[8]
A writ of attachment was issued in respect of
Portion 1
on
11 January 2019. It was attached on 14 January 2019 and sold in
execution for R1 430 000 on 19 November 2020, with a sale agreement
signed between the Sheriff Johannesburg East (Seventh Respondent) and
Mr A Naidoo, a member of Langlaagte Truck and Car CC, the
Applicant.
[9]
These important dates and facts are
ex
facie
the averments of the parties
before court. This was my reason for an opposed roll publishing query
to the litigating parties related
to the court orders and compliance
with Rule 46 as there appeared to be only one execution sale on 19
November 2020.
[10]
The following information (objected to by the
Second Respondent, as it was not on affidavit before court) was only
brought to the
attention of the Second respondents attorney in court
at the hearing by myself - (Counsel - Adv. Cohen was aware of it due
to his
preparation the night before). I accept the content of the
letter despite the objection, as nothing in evidence or address
suggest
that the information provided is wrong.
[11]
The letter from the ABSA attorneys (Lowndes /
Dlamini) stated Mr Jones appealed the Adams J order on 22 March 2019
and the appeal
was dismissed on 17 September 2019. When the appeal
failed ABSA caused a writ to be issued and a public sale in execution
took
place on 3 September 2020 with a “no bid / no sale”
outcome.
[12]
This meant that when the second sale in execution
of this incorrectly described property took place on 19 November 2020
the reserve
price fell away as per the Adams J order, and it was sold
to the applicant for R1 430 000. This information from ABSA’s
attorneys
addressed my concerns and explained the long periods
between events and the reservations I had about Rule 46 compliance.
[13]
All parties assume that due to the wrong property
description in the first court order the process of transfer was
halted by The
Registrar of Deeds, Pretoria (Fourth Respondent).
[14]
As a result ABSA approach the court for a
variation order on 4 May 2022 which was granted by Molahlehi J (as he
then was) correcting
only the Property description in paragraph 4 of
the Adams J order.
[15]
This lead to Mr. Naidoo and the Sheriff during May
2022 in the days following the Molahleli order, signing an addendum
which is
termed the “Amended conditions” of sale.
[16]
These two sale agreement documents are on
Caselines forming part of the notice of motion as FA 2 (actually
signed 19/11/2020) and
FA 5 (signed in May 2022 but back-dated).
[17]
Scrutinising both documents one finds it is the
exact document content apart from the property now correctly
described as “The
extent of” and the square meterage is
corrected to 1531. Also noted on the last page of FA 5, it seems as
if the 0 (zero)
of 202
0
was overwritten. Some of the signatures in FA 2,
looks similar to those in FA 5, although we know FA5 was signed in
May 2022.
[18]
The opposing parties agree on reinstatement, but
how it should be ordered is the basis of this dispute.
[19]
It is agreed by the parties that the signing of
the addendum in May 2022 was backdated to 19 November 2020. That a
writ of attachment
in respect of the property was issued on 13 May
2022 and the attachment by the Sheriff was on 12 July 2022 - which
date the Sheriff
states to the Deeds office as the date the Property
was attached. On 16 March 2023 a Mr Ian Burton in his capacity as
Acting Sheriff
signs the power of attorney to pass transfer from 8
Mile to the Applicant.
[20]
The aforesaid culminated in the lodgement by
Lawndes Dlamini (ABSA attorneys) with the Deeds office.Transfer of
the Property to
the Applicant takes place on 21 September 2023.
[21]
Unbeknown to the Applicant was that at the time of
registration (21 September 2023), 8 Mile had not submitted their
annual returns
for two years to the “The Companies and
Intellectual Property Commission” (CIPC) Fifth Respondent, and
was deregistered
as a Company on 30 March 2023. Such a deregistration
meant that all of 8 Mile’s property became
bona
vacantia
(State owned), and the reason
for the citation of the Minister of Finance as Sixth Respondent.
[22]
Due to the deregistration of 8 Mile on 30 March
2023 and the Property becoming State owned, the Registration of the
Title deed in
the name of the Applicant by the fourth Respondent on
21 September 2023, five months later, is at issue.
[23]
The Applicant after becoming the “Registered
owner”, despite being informed of 8 Mile’s
deregistration, proceeded
with an Eviction application in the
Johannesburg Magistrates Court which was later withdrawn.
[24]
Mr Jones in the meantime received confirmation
that no auction took place on 4 May 2022 as stated by Mr Ian Barton
in the power
of attorney used to pass transfer. 4 May 2022 was
actually the date of the Molahlehi J order which corrected the
property description.
[25]
This is important as Applicants’ Deed of
Transfer number T[…] issued by the fourth Respondent, reflects
that on 14
January 2019 attachment took place at a Public auction on
4 May 2022, not 19 November 2020 as per the original sale agreement
(having
the wrong property description) and the backdated “Amended
conditions” (having the right property description, but
backdated in May 2022 to 19 November 2020)
THE RESPECTIVE ORDERS
REQUESTED
[26]
The Applicant and Second Respondent agree
reinstatement of 8 Mile should be ordered in terms of Section 83 (4)
of the Companies
Act. That this reinstatement should not be subject
to compliance with Regulation 40 (6) of the Regulations in the
Companies Act.
[27]
The Applicant request reinstatement from 30 March
2023 and that 8 Mile’s corporate activities should be validated
retrospectively,
and its assets should revest automatically. Meaning
effectively that the Applicant will become the owner of the Property.
They
further request a cost order on scale B, against the First and
Second Respondents.
[28]
The Second Respondent request reinstatement of 8
Mile from 29 March 2023 (the day prior its deregistration) and does
not seek the
validation of its Corporate activities, only the
re-vestment of the Property. Further that the Applicants name be
expunged from
the Title Deed and the First Respondents be restored in
title as the owner of the property. This in effect, if granted, will
mean
8 Mile becomes the property owner again and all actions taken
against it previously will have to be re-instituted. A cost order
to
be paid by the Applicant was asked.
THE ARGUMENTS BEFORE
COURT
APPLICANT
[29]
Advocate Rodriques, representing the Applicant,
submitted that the court has only one application before it: the
Applicant's unopposed
reinstatement application. She maintained that
no other application is properly before the court, and therefore, the
court should
not entertain the Second Respondent's allegations of
irregularities or unlawful corporate conduct by the Sheriff and ABSA
(cited
parties not currently before the court).
[30]
Advocate Rodriques argued that Mr. Jones is solely
to blame for the situation. As the sole director of 8 Mile, he was
responsible
for the company's annual return compliance, which he
failed to ensure (she suggested intentionally), leading to
deregistration.
Mr. Jones, now a Respondent, seeks to exploit the
Applicant's restoration application for his own benefit. If he
genuinely wished
to challenge the alleged irregularities, he could
have pursued administrative reinstatement under Section 82(4) and
launched his
own independent application.
[31]
Advocate Rodriques asserted that the Applicant's
requested order should be granted, as it aligns with established case
law and would
validate all corporate activities, reaffirming the
Applicant's ownership of the property. Conversely, granting the
Respondent's
order would force ABSA to re-institute all legal
proceedings at significant expense.
[32]
Her submissions are that:
32.1 the
Applicant is an “interested person” who stands to loose
in excess of R2 000 000 and can bring
this reinstatement application
at any time.
32.2
The Applicant acted in good faith, purchasing the property at auction
and signing all Sheriff-presented documents
before 8 Mile's
deregistration; critically, all substantive actions - obtaining court
orders, conducting the auction, finalising
sale agreements, and
submitting documents to ABSA’s attorneys - occurred
pre-deregistration, with only the formal registration
of the property
in the Applicant's name happening subsequently.
34.3
Therefore, restoring 8 Mile would retrospectively validate all
corporate actions and revest assets; given
the Applicant's
bona
fide
purchase and the adherence to
legal process, it would be just and equitable for the property
registration to remain in the Applicant's
name, allowing them to
exercise their legal rights, beginning with Mr. Jones's eviction.
RESPONDENT
[35]
Adv. Cohen for the Second Respondent submits
35.1
8 Mile must be restored. He however submit it must happen as proposed
by them in their draft order.
[3]
35.2
The Second Respondent argued that a separate application was
unnecessary to highlight the alleged unlawful
corporate activity
affecting the property registration, as these irregularities were
already evident within the Applicant's own
submitted documents. He
stressed that the court should not, under any circumstances, issue an
order that condones such unlawfulness,
which they had merely pointed
out.
[36]
The Second Respondent outlined numerous alleged
irregularities:
36.1
executing on the incorrect property as per the Adams J order and
entering into a sale agreement on November
19, 2020;
36.2
attempting to rectify the property description via an Addendum 18
months later (May 4, 2022) without proper
legal process, arguing this
could not correct a void sale, which required a new agreement;
non-compliance with the reserve price
stipulated in the Adams J
order;
36.3
the Sheriff's fraudulent claim of an auction on May 4, 2022, as
recorded in the Deed of Transfer, rendering
the transfer
information false;
36.4
the transfer occurring while the property was state-owned, making it
unlawful;
36.5
the transfer being based on a fictitious sale, as no actual execution
sale occurred; and
36.6
the backdating of the sale agreement, which rendered the initial 19
November 20202 sale
void ab initio
due to the sale of the
wrong property, arguing that the Sheriff and Applicant could not
simply backdate the sale without conducting
a proper legal process,
including attachment and a public auction for the correctly described
property.
CASELAW
[37]
Newlands Surgical Clinic v Peninsula Eye
Clinic
[2015] ZASCA 25
(20 March 2015)
emphasised the following:
37.1
that the deregistration of a company terminates its legal existence.
Consequently, any actions purportedly
taken on behalf of a
deregistered company are deemed
void
and of
no legal effect.
[4]
37.2
the court further clarified that if a deregistered company was
reinstated under the former Companies Act
[5]
,
the effect of re-registration is to deem the company as having
continued in existence as if no deregistration had occurred.
37.3
In resolving conflicting interpretations among High court divisions,
the SCA concluded that Section 82(4)
of the Companies Act provides
for automatic retrospective effect upon reinstatement, validating
corporate activities during the
deregistration period, in addition to
revesting the company with its property. The wording of the section
does not support a distinction
between the revesting of property and
the validation of corporate activities.
[6]
37.4
Regarding the application of Section 83(4) of the Companies Act, the
court held;
[7]
37.4.1 Section 83(4)
remains available even after administrative reinstatement under
Section 82(4).
37.4.2 Section 83(4)(a)
permits any "person with an interest" to apply for relief
related to the company's dissolution,
granting the court broad
discretion to make "just and equitable" orders.
37.4.3 Section 83(4)
expressly allows applications "at any time after the company has
been dissolved."
37.4.4
Due to the wide wording of section 83(4) no justification exist to
exclude a company, which after dissolution
was
reinstated administratively by S 82(4)], from its ambit.
37.4.5 The SCA determined
that any party prejudiced by the automatic retrospective effect of
reinstatement may seek judicial relief
under Section 83(4), with the
court empowered to grant just and equitable orders.
[38] The following
points will have to be determined before considering the opposed
reinstatement of 8 Mile.
38.1
The court must address the Applicant's objection regarding the
Respondent's alleged attempt to introduce
a counter-application
within these proceedings.
38.2
The court must consider the applicability of Section 83(4), which
states: “
At any time after a
company has been dissolved—
(a)
the liquidator of the company, or other person with an interest in
the company, may apply to a court for an order declaring
the
dissolution to have been void, or any other order that is just and
equitable in the circumstances; and
(b)
if the court declares the dissolution to have been void, any
proceedings may be taken against the company as
might have been taken if the company had not been dissolved.
Specifically, the court
must determine whether the Applicant, as a person with an interest,
can seek relief under this section.
38.3
Lawful or unlawful Corporate Action in compliance with court orders,
execution sale, sale agreement, addendum
to sale agreement, Sheriffs
actions, recording in the title deed, registration after bona
vacantia, non-submission of annual returns
to cause bona vacantia.
38.4
The court must evaluate the bona fides of the parties involved.
[39] Application of
Law and Findings to the above paragraphs:
38.1
Regarding the alleged counter-application, these are motion
proceedings based on affidavits. The Second Respondent
does not
dispute the Applicant's factual assertions and agrees with the
requested relief.
The Respondent's concerns
pertain to alleged irregularities evident from the Applicant's
documents, but these cannot be attributed
to the Applicant's conduct.
This application provides
a more convenient option for the Respondent(s) to reinstate than the
administrative process.
The second Respondent is
attempting to gain benefits without having the legal standing to do
so making allegations directed at other
parties, not the Applicant.
The Second Respondent's own failure to submit annual returns led to
the deregistration, limiting their
ability to bring applications. The
Respondent's in limine points, raised in the replying affidavit, are
noted but not directly
adjudicated on, as they are improperly raised.
38.2
As established by the SCA, any person (including a juristic person)
prejudiced by automatic retrospective
action may seek relief under
Section 83(4)
and
such court is authorised to grant any relief it
considered just and equitable.
[8]
38.3 The
Second Respondent should address the legality of corporate actions in
a separate application against the relevant
parties once he and the
First Respondent is reinstated. The court finds no unlawful activity
attributable to the Applicant. The
court acknowledges the incorrect
property description in the initial court order, but finds the
Applicant and Sheriff had a clear
understanding of the correct
property. The incorrect property description was later corrected and
all court sanctioned order conditions
seems to have been complied
with.
Looking at the facts one
notes there was a specific court order by Adams J which was subject
to a failed appeal. The property at
issue was incorrectly described.
This to my mind an easy mistake to make if one looks at the title
deed and sub divisions recorded
therein (FA4;02-41).
There was according to
the notice of motion (par 22 - 23) and sale agreement (12.1) as well
as Title deed number T[…] no
misunderstanding between the
Sheriff and Applicant on what property was being transacted on. On
the title deed number the property
was also the only one left to be
transacted on as portions 4 (1056 squares) and 5 (1130 squares) were
already removed to their
own title deed numbers on 30 September 2010.
This only leaving the “remaining extent” (1532
squares) to
sell. If you add the 3 properties meterages it calculates
to 3718 - emphasising the mistake in the Adams J order. This mistake
of property description was corrected by the Molahlehi J order and an
Addendum was signed to correct two words “remaining
extent”
and a square meterage from 3718 to 1532. There was seemingly
substantial compliance with the sale conditions in the
order, with
its only defect being a wrong property description later rectified.
38.4 The
Applicant acted in good faith, purchasing the property at auction,
complying with all required processes,
and incurring significant
expenses. The applicant should not be penalised for the Second
Respondent's omission as all necessary
processes for the applicant's
ownership, occurred before the property became
bona vacantia
.
[39] This
reinstatement, cannot according to the SCA, be done in the piecemeal
way suggested by Mr Jones. I also see no reason
in rewarding Mr Jones
with an order he should not be allowed to apply for (because of his
omission), before he and the First Respondent
is re-instated. Mr
Jones seems to be frustrating legal processes to extend his stay in a
property executed on seven years ago.
It would therefore appear that
if there is no movement to claim the property he will abide, but when
there is, he will oppose.
[40] The court is
satisfied that all processes legally required for the Applicant to
acquire ownership occurred before the
property became
bona
vacantia
, with only the lodging and registration occurring during
that period. The Applicant was
bona fide
through this process
and is an interested person. Therefore, it is just and equitable to
order the reinstatement of the First Respondent,
enabling the
Applicant to assert his rights to the property.
COSTS
[41] The following
was held by Wilson J in par 15, 16 and 19 in;
Mashavha v Enaex
Africa (Pty) Ltd and others
2025 (1) SA 466
(GJ) (22 April 2024)
“
...
the rule implies that the power to reduce the scale on which
counsel’s costs are awarded should be exercised sparingly,
and
only where a case for its exercise has been made out. A Judge
generally approaches a case on the assumption that it has been
competently litigated, that counsel has done what is within their
power to ensure substantial compliance with the applicable rules,
and
that argument and evidence has taken as long as it needs to take. It
is only where there has been a marked departure from these
norms that
a court should consider lowering the scale on which counsel’s
costs are awarded.
Likewise, the default
position set under the rule is that, in the absence of contrary
indication, counsel’s costs will be
recovered on scale “A”.
Scale “A”, it seems to me, is the appropriate scale on
which to make an award
unless the application of a higher scale
has been justified by careful reference to clearly identified
features of the case that
mark it out as unusually complex, important
or valuable
. Run-of-the-mill cases, which must be the vast
majority of cases in the High Court, should not attract an order on
the B or C scales.
The focus of Rule 67A is
not on the conduct of the losing party. It is primarily on the
nature
of the case, and, secondarily, on the way that the successful party
presented it
. The misconduct of the unsuccessful party, if any,
is irrelevant once a court has declined to award a punitive costs
order against
them.”
[41]
In th
e present
case the issues were
somewhat
complicated
.
The hearing
lasted just over
an
hour.
It
was competently and ethically
pursued by all concerned.
I do not think it can be
classified as a
Run-of-the-mill
matter. As
such I am prepared to award cost on the “B”
scale
a
s
requested by the
Applicant
.
Order
1.
The First Respondent known as 8 MILE INVESTMENTS
539 (PTY) LTD with Registration Number 2007/023669/07 which was
dissolved / deregistered
on 30 March 2023, is restored in terms of
Section 83
(4) of the
Companies Act 71 of 2008
.
2.
The Fifth Respondent is ordered to restore /
register the First Respondents name to the Register of Companies.
3.
The orders in 1 and 2 above is not subject to
compliance with
Regulation 40
(6) of the Regulations promulgated
under the
Companies Act 71 of 2008
4.
The First Respondents;
4.1
Corporate Activities shall be valid
retrospectively, and
4.2
Assets shall automatically revest retrospectively
5.
The First Respondent upon restoration to the
Register and the Second Respondent shall be liable to pay costs of
this application
on Scale “B”
This judgment is handed
down electronically by circulation to the parties or their legal
representatives by email, by uploading
to Caselines, and by
publication of the judgment to the South African Legal Information
Institute. The date for hand-down is deemed
to be 10 March 2025.
PJ DU PLESSIS
ACTING JUDGE OF THE
HIGH COURT
JOHANNESBURG
For
the Applicant:
Adv M Rodriques
Instructed
by
:
Kaveer Guiness
Incorporated
For
the Respondent:
Adv S Cohen
Instructed
by
Allan Levin & Associates
DATE OF HEARING24
February 2025
DATE
OF JUDGMENT
10 March 2025
[1]
71 of
2008
[2]
My
emphasise
in
bold
to
highlight different property descriptions
[3]
Par
28 supra
[4]
Par.
15
[5]
Act
61 of 1973 Section 73(6(a) & 73(6A)
[6]
Par.
29
[7]
Par.
29-30
[8]
See
37.4.5
supra
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