Case Law[2025] ZAGPJHC 806South Africa
Symes N.O and Others v Auto and Truck Tyres (Pty) Ltd and Others (34782/19; 2023/03612) [2025] ZAGPJHC 806 (8 August 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
8 August 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Symes N.O and Others v Auto and Truck Tyres (Pty) Ltd and Others (34782/19; 2023/03612) [2025] ZAGPJHC 806 (8 August 2025)
Symes N.O and Others v Auto and Truck Tyres (Pty) Ltd and Others (34782/19; 2023/03612) [2025] ZAGPJHC 806 (8 August 2025)
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sino date 8 August 2025
THE REPUBLIC OF SOUTH
AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
Case Numbers: 34782/19
and
2023-03612
(1) REPORTABLE: NO
(2) OF INTEREST TO
OTHER JUDGES: NO
(3) REVISED: YES
In the matter between:
SYMES
N.O, MARYNA ESTELLE
First Applicant
MEDUPE
N.O, TSEPO
Second Applicant
MOOLLAJIE
N.O, ABDURUMAN
Third Applicant
[In their capacity as
Joint Liquidators
of Over-All Express
(Pty) Ltd (in liquidation)]
and
AUTO
AND TRUCK TYRES (PTY) LTD
First Respondent
JOHN
ROBERT CHARLES BEAUMONT
Second Respondent
JOHN
DEON
AUBY
Third Respondent
MJB ROAD FREIGHT (PTY)
LIMITED
t/a
PREMIER LOGISTICS SOLUTIONS
Fourth Respondent
DALY
MAQUBELA OLIPHANT INCORPORATED
Fifth Respondent
IN
RE
:
In the matter
between:
Case No: 34782/2019
SYMES N.O, MARYNA
ESTELLE
First Plaintiff
MEDUPE N.O,
TSEPO
Second Plaintiff
MOOLLAJIE N.O,
ABDURUMAN
Third Plaintiff
[In their capacity as
Joint Liquidators
of Over-All Express
(Pty) Ltd (in liquidation)]
and
AUTO AND TRUCK TYRES
(PTY) LTD
Defendant
AND
In the matter
between:
Case No: 2023-038612
SYMES N.O, MARYNA
ESTELLE
First Plaintiff
MEDUPE N.O,
TSEPO
Second Plaintiff
MOOLLAJIE N.O,
ABDURUMAN
Third Plaintiff
[In their capacity as
Joint Liquidators
of Over-All Express
(Pty) Ltd (in liquidation)]
and
AUTO AND TRUCK TYRES
(PTY) LTD
First Defendant
JOHN ROBERT CHARLES
BEAUMONT
Second Defendant
JOHN DEON
AUBY
Third Defendant
MJB ROAD FREIGHT (PTY)
LIMITED
t/a PREMIER LOGISTICS
SOLUTIONS
Fourth Defendant
DALY MAQUBELA OLIPHANT
INCORPORATED
Fifth
Defendant
Delivered:
This judgment
was prepared and authored by the Judge whose name is reflected and is
handed down electronically by circulation to
the parties' legal
representatives by email and by uploading it to the electronic file
of this matter on CaseLines. The date and
time for hand-down is
deemed to be 14h00 on 8 August 2025.
JUDGMENT
JE SMIT AJ
[1]
This is an application
for the consolidation of two actions instituted by the joint
liquidators of Over-All Road Express (Pty) Limited
(in liquidation)
(ORE).
[2]
ORE was liquidated by
special resolution registered with the Companies and Intellectual
Property Commissioner (CIPC) on 5 December
2018. On 24 April
2019, the voluntary liquidation was converted into a compulsory
liquidation by order of Court.
[3]
The first action was
instituted in or about October 2019 under case number 34782/19. The
defendant is Auto and Truck Tyres (Pty)
Limited (
Auto
).
[4]
The second action was
instituted in or about April 2023 under case number 2023-038612. The
defendants are John Robert Charles Beaumont
(
Beaumont
),
John Deon Auby (
Auby
),
MJB Road Freight (Pty) Limited t/a Premier Logistics Solutions
(
Premier
)
and Daly Maqubela Oliphant Incorporated (
DMO
).
[5]
For the sake of
convenience, the applicants will be referred to as the plaintiffs and
the respondents as the defendants.
[6]
In both actions, the
plaintiffs claim from the defendants the setting aside of certain
payments made by ORE, in terms of s26(1)(b)
of the Insolvency Act 24
of 1936 (
the
Insolvency Act
).
[7]
It is uncontroversial
that, save for a payment of 4 July 2018 in the amount of
R70,000.00, the plaintiffs’ claims against
the defendants
concern the exact same payments made by ORE.
[8]
In the first action,
Auto amended its plea after an opposed application for leave to amend
was granted. Auto contended that it was
Beaumont and Auby who
received the payments, not Auto.
[9]
According to the
plaintiffs, this resulted in the institution of the second action
against Beaumont, Auby, Premier and DMO. The
plaintiffs claim therein
is in the alternative and should it be found that Auto did not
receive, or benefit from, the payments
from ORE.
[10]
DMO are the attorneys
who represent all the defendants and received the payments from ORE
on behalf of the defendants, or some of
them. On the pleadings,
amounts were paid by DMO to one or more of the defendants and an
amount was retained by DMO, said to be
for fees.
[11]
S26
of the
Insolvency
Act provides
a statutory remedy to trustees of insolvent estates and
liquidators of liquidated companies and close corporations, to claim
the
setting aside of dispositions made without value. The section
reads:
“
Every
disposition of property not made for value may be set aside by the
court if such disposition was made by an insolvent –
(a)
more than two years
before the sequestration of his estate, and it is proved that,
immediately after the disposition was made, the
liabilities of the
insolvent exceeded his assets;
(b)
within two years of the
sequestration of his estate, and the person claiming under or
benefitted by the disposition is unable to
prove that, immediately
after the disposition was made, the assets of the insolvent exceeded
his liabilities: Provided that if
it is proved that the liabilities
of the insolvent at any time after the making of the disposition
exceeded his assets by
less than the value of the property
disposed of, it may be set aside only to the extent of such excess.”
[12]
Evidently, all the
payments referred to in the two actions were made within two years of
the liquidation of ORE. The plaintiffs
therefore claim the relief in
terms of
s26(1)(b)
of the
Insolvency Act.
[13]
The be successful with
a claim to set aside dispositions in terms of
s26(1)(b)
of the
Insolvency Act, the
following aspects must be proved (a) a
disposition within the meaning of
s 2
of the
Insolvency Act; (b
) by
an insolvent; (c) not made for value; (d) within two years
of liquidation; and (e) the person claiming
under or benefitted
by the disposition is unable to prove that, immediately after the
disposition was made, the assets of the insolvent
exceeded his
liabilities (
Van Wyk
van Heerden Attorneys v Gore and Another NNO
2023 (1) SA 80
(SCA) at [3] to [4]).
[14]
In the amended special
plea of Auto in the first action, Auto contends that:
“
3.
All payments allegedly made to [Auto] were made in terms of the
settlement agreement (
Annexure
“X”
)
and were made by alternatively, at the instance and for and on behalf
of Hylton Odendaal (“
Hylton
”),
in discharge of all his obligations arising from and pursuant to the
settlement agreement.
4. In terms of the
settlement agreement “Creditors” are defined as
collectively [Auto], [Beaumont] and [Auby].
5. Payments made,
were made into the trust account of DMO Attorneys , for and on behalf
of the “creditors”, whereafter
the amounts were, in
accordance with the instructions issued to DMO Attorneys, distributed
to [Beaumont] and [Auby].
6. As such, there
is a mis-joinder of [Auto] who at no stage received any payment
and/or benefit as alleged by the Plaintiffs.”
[15]
Elsewhere, at paragraph
8.3 of its amended plea, Auto contends:
“
8.3
All payments made to [Auto] and/or [Beaumont] and/or [Auby] were made
into the trust account of DMO Attorneys
pursuant to and in terms of
the Settlement Agreement and were made by, alternatively at the
instance and for and on behalf of,
Hylton, in discharge of all his
obligations arising from and pursuant to the Settlement Agreement.”
[16]
In the plea of the
defendants in the second action, it is contended,
inter
alia
:
“
1.8
The Plaintiffs had insufficient proof that [Auto] received these
payments as alleged and [Auto] denied receiving
these said payments.
1.9
[Auto] admitted that payments were to be made in terms of a
settlement agreement.
1.10 …
1.11
The Plaintiffs were aware or reasonably ought to have been aware to
whom these payments were made prior to
issuing their first summons
against [Auto] having been required to do a due diligence before
issuing summons.
1.12
Alternatively, the Plaintiffs ought to have reasonably become aware
of the payments on or about September
2019 when [DMO] informed the
Plaintiffs in writing that the “creditors” as defined in
the settlement agreement received
payments as per the terms of the
settlement agreement.
1.13
Further alternatively, the latest date the Plaintiffs could have
become aware of these payments was on 25
March 2020, when [Auto]
filed its plea attaching the said settlement agreement.
1.14
The alleged claim, if any, has thus become prescribed.”
[17]
Elsewhere in the plea
in the second action, the defendants contend:
“
7.2
The Plaintiffs instituted the exact same claim against [Auto] on or
about 4 October 2019.
7.3
The Plaintiffs had insufficient proof that [Auto] received these
payments as alleged and [Auto]
denied receiving these payments.
7.4
[Auto] admitted that payments were to be made in terms of a
settlement agreement, however [Auto]
did not receive payments. …
7.5
…
7.6
…
7.7
All payments made to [Beaumont] and [Premier], being the entity
designated by [Auby] to receive
all payments due to [Auby], were made
into the trust account of [DMO] pursuant to and in terms of the
Settlement Agreement and
were made by, alternatively at the instance
and for and on behalf of Hylton, in discharge of all his obligations
arising from and
pursuant to the Settlement Agreement.”
[18]
The essence of the
defences raised by the defendants in the two actions amount to this:
Auto contends in the first action that it
did not receive or benefit
from the payments as contemplated by
s26(1)(b)
of the
Insolvency Act;
and
the defendants in the second action contend that the plaintiffs’
claims against them have become prescribed.
[19]
In both the actions,
the plaintiffs delivered a replication and rely
inter
alia
on estoppel:
the plaintiffs contend that they were deliberately misled and
prevented from obtaining knowledge of the existence
of the respective
debts and identities of the defendants and were induced to believe
that Auto had received and benefitted from
the payments. The
plaintiffs allege that they did not know that Beaumont and Auby
and/or Premier benefitted from the payments,
until 7 February
2023, therefore the claims against the defendants in the second
action have not become prescribed.
[20]
It appears from the
version of the defendants in the two actions that the defendants are,
amongst themselves,
ad
idem
that the
payments were not made to Auto, but rather to DMO who in turn made
payment to Beaumont and/or Auby and/or Premier.
[21]
However, as was pointed
out by Mr Pretorius who appeared on behalf of the plaintiffs, a live
issue on the pleadings is whether Auto
benefitted from the payments.
[22]
The party to whom a
disposition was made within 2 years of winding-up, and from whom is
claimed the setting aside of the disposition
in terms of
s26(1)(b)
of
the
Insolvency Act, is
put to the proof that immediately after the
disposition was made, the assets of the insolvent exceeded his
liabilities.
[23]
The onus to prove
solvency only rests on persons who benefitted from the disposition.
There can be no liability of a person who
did not benefit from the
disposition (
Van Wyk
supra
at [32]).
[24]
Ms Slabbert who
appeared on behalf of the defendants in the two actions, emphasised
that consolidation of the two actions is inappropriate,
because the
version of the defendants is aligned: they are
ad
idem
that the
payments were not made to Auto and that Auto did not benefit from the
payments.
[25]
The difficulty I have
with the submission, is that this Court is not called upon to
determine who benefitted from the payments from
ORE. That is an issue
that goes to the merits of the two actions. It will best be
determined at trial. The true “disponee”
(using the
terminology of Gorven JA in
Van
Wyk
) in respect of
the payments will be determined at trial. This in turn will dictate
which of the defendants, if any, will bear the
onus to prove that the
assets of ORE exceeded its liabilities, as contemplated by
s26(1)(b)
of the
Insolvency Act.
[26
]
Whether a particular
defendant has received or benefitted from the payments, and whether
there was any value given in return, must
be decided with reference
to all the circumstances under which the transaction was made.
(
Inverdoorn Farming
and Trading Co. Ltd.
1965 (2) SA 597
(AD) at 604 to 605)
[27]
The word 'value' is not
confined to a monetary or tangible material consideration, nor must
it necessarily proceed from the person
to whom the disposition is
made. (
Hurley and
Seymour, N.O v W. H. Muller and Co.
1924 NPD 122
at 133).
[28]
The first and main
issue to be determined in both actions is who received, or benefitted
from, the payments made by ORE. As I see
it, the same witnesses will
be required to give evidence in respect of that issue. Upon
determination of that issue, one or more
of the defendants may bear
the onus to prove the solvency of ORE at the time when the payments
were made.
[29]
Considering the
definition of the word “creditors” in the settlement
agreement, it cannot be ruled out that Auto benefitted
from the
payments, even though it may not have received the payments directly.
[30]
Rule 11 of the Uniform
Rules of Court provides for the consolidation of actions. It reads:
“
Where
separate actions have been instituted and it appears to the court
convenient to do so, it may upon the application of any
party thereto
and after notice to all interested parties, make an order
consolidating such actions, whereupon –
(a)
the said actions shall
proceed as one action;
(b)
the provisions of rule
10 shall
mutatis
mutandis
apply with
regard to the actions so consolidated; and
(c)
the court may make any
order which to it seems meet with regard to the further procedure,
and may give one judgment disposing of
all matters in dispute in the
said action.”
[31]
The object of the rule
is to prevent multiple actions based on the same facts proceeding
independently of each other (
Nel
v Silicon Smelters (Edms) Bpk
1981 (4) SA 792
(A) at 801).
[32]
A court has a wide
discretion to grant or refuse the application (
Beier
v Thornycroft Cartage Co; Beier v Boeresaamwerk Bpk
1961 (4) SA 187
(N) at 191 and
Chhita
v Ranchod
(2023)
JDR 0021 (GJ) at para 30).
[33]
Convenience and absence
of substantial prejudice to the other party are the two main
considerations. The applicant in a consolidation
application bears
the onus of proving the convenience resulting from consolidation.
Once this onus has been discharged, the applicant
bears the onus of
proving the absence of substantial prejudice to the other party
(
Ranchod
supra at para 30 to 32).
[34]
In my view the evidence
to be lead; the witnesses to be called; the issues to be decided and
the large overlap of the facts and
issues in the two actions will
render it convenient for the consolidation of the two actions.
[35]
The next question is
whether the plaintiffs have shown the absence of substantial
prejudice to the defendants if the two actions
are consolidated.
[36]
It was argued on behalf
of the defendants that the consolidation will be prejudicial to the
defendants in the second action, since
it will preclude or hamper
them from raising their special plea of prescription.
[37]
I do not see the
prejudice. The defendants in the second action will be at liberty to
raise their special plea of prescription.
They may even seek a
separation of that issue in terms of Rule 33(4) of the Uniform Rules
of Court, if so advised.
[38]
So too, the special
plea of Auto can be raised by it, even by way of separation of issues
in terms of Rule 33(4), if so advised.
[39]
The defendants in the
two actions will not be precluded from raising all and any of the
defences, if the two actions are consolidated.
[40]
The defendants also
submitted that they will be prejudiced if a witness must testify in
respect of both actions, at the same hearing.
Instead of testifying
in respect of one action the witness will have to testify and be
cross-examined in respect of both actions.
[41]
In my view, no
substantial prejudice will arise if witnesses are required to testify
in respect of both actions, especially where
the main issue in both
actions is the identity of those who received, or benefitted from,
the payments.
[42]
In the result, I am of
the view that a proper case has been made by the plaintiffs for the
consolidation of the two actions.
[43]
In respect of costs,
the plaintiffs in their notice of motion seek an order that the costs
of the application are to be costs in
the cause in the consolidated
action. I am inclined to grant such an order.
[44]
I accordingly make the
following order:
1.
The actions under case
numbers 34782/2019 and 2023-038612 are consolidated and will
henceforth proceed and be heard as one action
under case number
34782/2019.
2.
The costs of this
application are to be costs in the cause in the consolidated action.
J E SMIT
ACTING JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
JOHANNESBURG
Appearances
Counsel for
applicants:
Adv W Pretorius
Instructed
by:
Mr Brooks at Brooks & Braatvedt Inc
Counsel for
respondents:
Adv K Slabbert (Wilson)
Instructed
by:
Mrs Oliphant at DMO Attorneys
Date of
hearing:
5 August 2025
Date of
judgment:
8 August 2025
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