Case Law[2025] ZAGPJHC 887South Africa
Fisher and Another v N.S (089674/2024) [2025] ZAGPJHC 887 (10 September 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
10 September 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## Fisher and Another v N.S (089674/2024) [2025] ZAGPJHC 887 (10 September 2025)
Fisher and Another v N.S (089674/2024) [2025] ZAGPJHC 887 (10 September 2025)
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sino date 10 September 2025
Amended
18 September 2025
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number:
089674/2024
(1)
REPORTABLE:
NO
(2)
OF INTEREST TO OTHER JUDGES:
NO
(3)
REVISED:
NO
In
the matter between:
FISHER,
JACQUES ANDRE N.O.
First Applicant
ALERS,
LYNETTE HENDRINA N.O.
Second Applicant
and
S[...],
N[...]
Respondent
CORAM:
MDALANA-MAYISELA J, MITCHELL AJ AND MZUZU AJ
JUDGMENT
MITCHELL
AJ (MDALANA-MAYISELA J and MZUZU AJ concurring)
Introduction
[1]
This appeal arises from proceedings launched by
the applicants on 8 August 2024 in terms of which the applicants
sought an order,
inter alia
,
that “
the respondent be directed
to immediately give possession of the Toyota Land Cruiser 2[…]
motor vehicle with registration
number J[…] and VIN Number
J[…] motor vehicle presently being used by her and in her
possession to the applicants
”
[2]
On 18 December 2024 Leech AJ handed down a
judgment in which the learned Acting judge dismissed that application
with costs. This
appeal comes before us as a result of leave to
appeal that judgment having been granted by Leech AJ on 10 February
2025.
[3]
On 30 January 2025, prior to the application for
leave to appeal, the respondent filed a notice of withdrawal in which
she stated
that she does not intend to oppose that application so
long as no cost order was sought or granted against her and she would
abide
by the decision of the court. There was no appearance for the
respondent at the hearing of this appeal.
Background
[4]
The applicants brought the application in their
capacities as the duly appointed liquidators of Kanivest 3214 CC
(“the Corporation”).
As outlined above, the primary
relief claimed was for an order directing the respondent to give
possession to the applicants of
a Toyota Land Cruiser motor vehicle
(“the vehicle”), the registered owner of which is the
Corporation.
[5]
The common cause facts, as set out in Leech AJ’s
judgment are as follows:
a.
the vehicle was purchased in 2020 by the
Corporation under an instalment sale agreement;
b.
the respondent is the estranged wife of R[…]
P[…] H[…] S[…] (“S[…]”).
Divorce proceedings
are pending between S[...] and the respondent;
c.
S[...] was the managing member of the Corporation.
During happier times, S[...] allowed the respondent the use of the
vehicle and
she thus came to be in possession of the vehicle,
notwithstanding that the Corporation was its registered owner;
d.
on 21 May 2024 S[...] took steps to put the
Corporation into voluntary liquidation and the voluntary winding up
of the Corporation
commenced and the applicants were appointed
liquidators of the Corporation with effect from 14 June 2024;
e.
the voluntary winding-up of the Corporation
occurred after the breakdown of the respondent’s and S[...]’s
marriage;
f.
after her estrangement from S[...], the respondent
retained possession of the vehicle and she continued to possess the
vehicle after
the liquidation of the Corporation, up to and including
the date this application was launched;
g.
on 30 July 2024 the applicants obtained an order
converting the voluntary winding-up into a winding-up by court in
terms of section
346(1) of the Companies Act, 61 of 1973. In terms of
that same order, the applicants’ powers as liquidators were
extended
in terms of section 386(5) of the 1973 Companies Act read
with
section 66
of the
Close Corporations Act, 69 of 1984
;
h.
the applicants state (and the respondent does not
deny) that -
i.
the present value of the vehicle is in excess of
R1.2 million and, taking into account payments made by the
Corporation under the
instalment sale agreement, an amount of R379
722.08 remains owing;
ii.
after settlement of the outstanding debt, there
will be a substantial excess available for payment to creditors of
the Corporation;
iii.
the applicants are being prevented from realising
the value of the motor vehicle, because it remains in the possession
of the respondent
and she refuses to surrender that possession up to
the applicants and is impermissibly using the vehicle as her personal
mode of
transport;
iv.
demand has been made upon the respondent to hand
over the vehicle, but acting on the advice of her legal
representatives, she refused
to do so.
Respondent’s
grounds for refusing to hand over the vehicle
[6]
In refusing to hand over the vehicle, the
respondent relies on an order granted in her favour in this court,
pursuant to a
Rule 43
application she brought pending divorce
proceedings between her and S[...].
[7]
The
Rule 43
application resulted in the learned judge, Nkutha-Nkontwana
J, ordering, on 14 November 2023, that the respondent
[1]
is to maintain exclusive use of the vehicle.
[8]
In the meantime, on 19 January 2023, the
Corporation had launched an application in this court in which it
sought return of the
vehicle to the Corporation on the basis of a
rei
vindicatio
.
[9]
The
rei vindicatio
application was heard on 25 October 2023 by Carrim
AJ, who on 15 November 2023 handed down an order dismissing the
application and,
on 4 December 2023, gave a reasoned judgment. Carrim
AJ found that the order granted by Nkutha-Nkontwana J resulted in the
respondent
being entitled to retain possession of the vehicle,
pending the divorce action. The relief the Corporation sought had
thus already
been determined by another court.
[10]
In the result, the respondent’s position is
that she is entitled to retain possession of the vehicle and that the
application
should be dismissed.
The appeal
[11]
As regards the judgment in the
Rule 43
application, Leech AJ stated that:
“
[10]
… there can be no doubt that the
Rule 43
Judgment is binding
as between Mr and Mrs S[...] and thus determinative of their rights
vis-à-vis the motor vehicle, whether
that Judgment was
correctly decided or not.
[11] But, say the
applicants, they were not parties to the
Rule 43
proceedings and
neither was the Corporation. Furthermore, they argue that the
judgment is one in personam — of application
on a limited basis
only as between Ms and Mr S[...] - and not a judgment in rem with
binding effect as against third parties too.
The
Rule 43
Judgment is
therefore not binding on them and Ms S[...] is not entitled to assert
the
Rule 43
Judgment as a defence against the Corporation’s
greater title in and to the motor vehicle.
[12] I am of the view
that this argument is sound in relation to the
Rule 43
Judgment.”
[12]
The learned acting judge found that the judgment
in the
Rule 43
application afforded the respondent no defence. In my
opinion that finding is correct.
[13]
In considering the
rei
vindicatio
judgment by Carrim AJ, the
court
a quo
found
that:
“
[18]
… I am of the view that Carrim AJ has determined the rights of
the Corporation, albeit with the possibility that the
question could
be revisited after the finalisation of the divorce.
[19] Whether or not
this relief is competent or was wrongly arrived at it is not for me
to say, regardless of what my views on that
question might be. Unless
and until it is set aside by a court of competent jurisdiction, the
rei vindicatio Judgment is binding
on the parties to it, which
included the Corporation, and it is binding on me.
[20] The subsequent
liquidation of the Corporation and the appointment of the applicants
as its liquidators does not in and of itself
affect the binding
nature of the Judgment.”
[14]
The court
a quo
further made a finding that:
“
[21]
… The applicants say that their position as liquidators has
indeed brought about a material change by dint of the applicability
of sections 66 of the Close Corporation Act and 84 of the Insolvency
Act read with section 386(1)(e) of the 1973 Companies Act
and the
order of 30 July 2024 quoted above.
[22] The various
provisions of the legislation referred to afford the applicants, as
liquidators, the powers set out therein. But,
with the exception of
section 84 of the Insolvency Act, those powers entail the right and
competency to exercise remedies that
the Corporation could exercise,
including an entitlement to claim vindicatory relief. They do not
establish new causes of action
and nor do they appear to me to
override earlier judgments where those remedies have been exercised
already.
[23] Section 84
affords the creditor in an instalment sale agreement new remedies and
rights, but there is no evidence before me
that the jurisdictional
facts underpinning that section have been met. I don’t
understand that this section extends original
rights to the
liquidators and therefore I am not persuaded that this section finds
application on the facts before me.”
[15]
These
statements are in my opinion too widely framed. The effect of the
liquidation of the Corporation was to divest the Corporation
of its
assets and to vest those assets in the liquidator. It was and is the
liquidators’ obligation to collect all the assets
of the
Corporation and arrange for the sale of those assets as expeditiously
as possible
[2]
.
[16]
It is not disputed that the vehicle was acquired
by the Corporation under an instalment sale agreement with FirstRand
Bank Ltd (“WesBank”).
Section 84(1) of the Insolvency Act
deals with assets acquired by way of an instalment sale agreement. It
provides that the instalment
agreement must be regarded as creating a
hypothec in favour of the seller over the property sold, securing
payment of the balance
still due.
[17]
Under
section 84, the applicants, as liquidators of the Corporation, are
obliged to deliver the vehicle to Wesbank who will then
hold it as
security for its claim against the Corporation under the instalment
sale agreement
[3]
.
[18]
A
liquidator, who does not have possession of an asset of the estate,
must obtain possession when faced with a demand from an instalment
sale creditor
[4]
.
[19]
Carrim AJ concluded that the Corporation was not
entitled to a
rei vindicatio
order
in respect of the vehicle against the respondent. In my view Carrim
AJ’s judgment has no bearing on whether or not the
applicants
(as liquidators of the Corporation), are entitled to the order
requested by them based on their obligations as liquidators
and under
section 84 of the Insolvency Act. I find that they are entitled to
such an order, and in the circumstances, it is not
necessary to make
any finding in respect of the effect, correctness or otherwise of
Carrim J’s judgment.
Costs
[20]
This appeal proceeded on an unopposed basis and
there was no appearance for the respondent at the hearing.
Nevertheless, in my view,
the applicants have been successful in this
application and are entitled to their costs on the basis requested by
them.
[21]
If the respondent had wished to avoid adverse
costs order she should have returned the vehicle to the applicants
prior to this appeal
being heard. As it happened the applicants were
obliged to persist with this appeal to obtain possession of the
vehicle.
Order
1..
The appeal against the decision of the Court
a quo
is upheld.
2.
The order of the Court
a quo
is set aside and is substituted
by the following order -
“
a.
the respondent is ordered immediately to give possession to the
applicants, of the Toyota Land
Cruiser 2[…] with registration
number J[…] and VIN Number J[…];
b.
the applicants are authorised to approach this Court on the same
papers, duly supplemented,
for an order granting the applicants
further powers and/or relief, should the need therefor arise.
c. the respondent is
directed to pay the costs of this application on Scale B as
contemplated by Rule 67A.”
3.
Save for the costs order in sub-paragraph c above, costs are in the
liquidation of Kanivest 3214 CC (in liquidation).
MITCHELL AJ
Acting Judge of the High
Court
I agree
MZUZU AJ
Judge of the High Court
I agree and it is so
ordered
MDALANA-MAYISELA J
Judge of the High Court
This judgment is handed
down electronically by circulation to the parties or their legal
representatives by email, by uploading
it to the electronic file of
this matter on Caselines. The date for hand-down is deemed to be 10
September 2025.
Date of hearing:
20 August 2025
Date of delivery:
10 September 2025
For the First and Second
Applicants:
Adv JW Steyn
083 266 5005
steynjw@law.co.za
Instructed by:
BENTO INCORPORATED
Applicants' Attorneys
Tel: 011 474 4095
Ref: Ms T Bento
Email: tina@bento.co.za
C/O CJ BRAND ATTORNEYS
203 Jan Smuts Avenue
Parktown North
Johannesburg
Mobile: 071 355 8971
Email:
carlin@cjblaw.co.za
Ref: Ms C Swart/MS0027
For Respondent;
No
appearance
[1]
The
respondent in the current proceedings was t
he
applicant in the Rule 43 proceedings
[2]
The Law of South Africa
(LAWSA), Insolvency (Volume 23(1) - Third Edition) para 308
[3]
LAWSA op. cit. para 373
[4]
Hubert Davies Water
Engineering (Pty) Ltd v The Body Corporate of "The Village"
and Others
1981 (3) SA 97
(D); Venter NO v Avfin (Pty) Ltd
[1995] ZASCA 156
;
[1996] 1
All SA 173
(A)
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