Case Law[2024] ZAGPJHC 891South Africa
Lang v ABSA Bank and Others (079773/2023) [2024] ZAGPJHC 891 (11 September 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
11 September 2024
Headnotes
with the parties earlier in the year, it was agreed that these interlocutory applications should be decided first. This decision is confined to these interlocutory applications.
Judgment
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## Lang v ABSA Bank and Others (079773/2023) [2024] ZAGPJHC 891 (11 September 2024)
Lang v ABSA Bank and Others (079773/2023) [2024] ZAGPJHC 891 (11 September 2024)
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sino date 11 September 2024
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO:
079773/2023
- REPORTABLE:YES/NO
REPORTABLE:
YES
/NO
- OF
INTEREST TO OTHER JUDGES:YES/NO
OF
INTEREST TO OTHER JUDGES:
YES
/NO
- REVISED:YES/NOSIGNATURE:DATE:
11/09/2024
REVISED:
YES
/NO
SIGNATURE:
DATE:
11/09/2024
In
the matter between:
BRETT
THOMAS LANG
Applicant
and
ABSA
BANK
First
Respondent
NEDBANK
Second
Respondent
STANDARD
BANK
Third
Respondent
INVESTEC
BANK
Fourth
Respondent
WESBANK
Fifth
Respondent
JAN
VAN DER WALT (CRS)
Sixth
Respondent
ROBERT
DEVEREUX (CRS)
Seventh
Respondent
ADVOCATE
NIGEL RILEY
Eighth
Respondent
FINANCIAL
SERVICE’S CONDUCT AUTHORITY
Ninth
Respondent
JUDGMENT
MANOIM
J:
Introduction
[1]
In what I will refer to as the “main matter” the
applicant, Brett Lang,
seeks various declaratory orders against eight
respondents. In the main matter, Lang, an unrehabilitated insolvent,
and erstwhile
founder of three now liquidated companies, seeks
several declaratory orders against those he sees as responsible for
his and his
companies’ financial demise, because he contends,
they acted unlawfully. In brief he contends that they contravened
both
criminal and civil law obligations to which they are subject. He
seeks declaratory orders to this effect.
[2]
Five of the respondents are banks, three are individuals, and the
ninth is the Financial
Conduct Authority.
[1]
But this judgment does not concern the main matter which is still not
ready to be heard. This is because seven of the eight respondents
have brought interlocutory challenges. They seek either dismissal of
the main matter on grounds that Lang lacks locus standi to
seek the
declaratory relief he does or, in the alternative, that in terms of
Rule 47 of the Uniform Rules, he be ordered to give
security for
their costs.
[3]
The basis for the Rule 47 challenge is that although it is accepted
that Lang is an
incola the application is vexatious in the sense that
the relief sought is considered unsustainable.
[2]
[4]
At a case management meeting I held with the parties earlier in the
year, it was agreed
that these interlocutory applications should be
decided first. This decision is confined to these interlocutory
applications.
Background
[5]
At the outset I must mention that Lang is a layperson who represents
himself both
in the main matter and these interlocutory applications.
Lang is unable to afford representation because he is an
unrehabilitated
insolvent. However, it seems to me that even if he
could afford to retain counsel, he may still have elected to
represent himself.
What animates him is his belief in the justice of
his own cause and his sense that others, whose advice he once relied
on, have
let him down.
[6]
The passion he feels for his cause is exemplified by the founding
affidavit in the
main application. It is 319 pages long. But it does
not end there. It is accompanied by a lengthy set of annexures which
take the
founding papers to 2700 pages. For many laypeople insolvency
law is an esoteric and unfamiliar field. But Lang it appears is an
autodidact, who has schooled himself in the finer concepts of this
field, giving him the self-confidence to challenge what he perceives
to be the unjust conduct of major financial institutions towards him
and his erstwhile companies. On his own he has fought the
case
against seven legal teams, three of which were represented by senior
counsel.
[7]
Few people would take on such a challenge unassisted and on their
own. Perhaps Lang
did because has always been a self-made man. He
came to this country from Zimbabwe with a standard 9 education,
trained as an aircraft
repair mechanic and went on to found three of
his own companies. His companies owned aircraft and leased them to
others, sometimes
with aircrews, sometime without. He has bought and
sold aircraft. Large international organisations have been among the
customers
of his companies. At one stage in their history, he
considers they were worth more than R 500 million rand.
[8]
His three firms had the following governance structure. He was the
sole director,
and the shares were owned by two different family
trusts. He was one of two trustees, along with another person,
although the latter
never features in these proceedings.
[9]
The three firms were Aircraft Africa Contract Company (Pty) Limited
(“AACC”);
Executive Turbine Aviation (Pty) Limited
(“ETA”), and New Order Vehicle Sales (Pty) Limited
(“NOVS”).
[10]
The firms according to Lang were highly successful until 2007/2008
when due to a strengthening
of the rand because of the global
financial crisis his major firm – AACC – which was
reliant predominantly on earning
dollar income, experienced cash flow
problems. The spiralling debt meant that AACC had to increase its
exposure to financing from
banks. It also meant that Lang had to give
personal sureties to, inter alia, three of the respondent banks,
ABSA, Nedbank, and
Standard.
[11]
It never worked out for Lang and his companies. At the instance of
Nedbank all three companies
were liquidated in 2010. Then in
September 2016, Lang was sequestrated at the instance of ABSA. He has
not been rehabilitated since.
[12]
It is Lang’s contention that the companies could either have
been saved through business
rescue or the implementation of a
turnaround plan or should have been wound up much earlier. He accuses
the banks of conspiring
or colluding to prevent these outcomes in
order to secure their own positions first in priority to other
creditors. Most of these
accusations are laid at the door of Nedbank
who he views as having orchestrated this scheme to buy time to
organise security for
its own position.
[13]
Nedbank is also alleged to have induced him to engage the sixth and
seventh respondents, respectively
Du Toit and Deveraux. Both worked
at the time for a firm called CRS, which specialises in turning
around ailing companies
[3]
. They
are alleged to have been appointed as directors or at least occupied
that position by virtue of the extended definition of
who a director
is in terms of the
Companies Act. 71 of 2008
.
[14]
The position of the eighth respondent Nigel Riley follows a different
trajectory. He is a practising
advocate who at the instance of Lang
was appointed a director and chairperson of the AACC during its time
of difficulties. Lang
had hoped that with Riley’s legal acumen
he might be in a better position to ward off the banks. However, he
considers that
Riley betrayed him in the end, and thus both Riley and
the two CRS directors are, in the view of Lang, persons who acted at
the
behest of the banks and not in the interests of the company of
which they acted in the position of directors.
[15]
The founding affidavit in the main application indicates that Lang
harbours considerable personal
animosity towards Riley. He makes
several allegations about him which are not pertinent to the current
application, and I therefore
do not need to repeat them.
[16]
It is common cause that the three companies were liquidated at the
instance of Nedbank in 2010.
Liquidators were duly appointed, and I
am told that this process has been completed in respect of the two of
the three companies.
Lang, as noted, was then sequestrated in 2016.
In the interim Lang had brought an unsuccessful attempt in 2011, to
have the companies
placed in business rescue. (The new Companies Act
had come into operation during this period in 1 May 2011, introducing
business
rescue for the first time).
[17]
In the course of this litigation, which was opposed by Nedbank, the
latter had annexed to its
papers a minute of a meeting of the banks
held on 12 October 2009 (the “October minute”). The
minutes show that all
five respondent banks were represented at this
meeting. The meeting was chaired by a representative from Nedbank.
Although Lang
was present at the venue, he was only allowed to attend
part of the meeting after discussions had taken place in his absence.
But
he says that on a reading of the text of the minutes, it became
apparent to him that the banks had colluded to bring about the
liquidation of AACC, which he contends is a violation of the
Competition Act, 89 of 1998
. I assume he has in mind
section 4(1)
of
the Act which proscribes agreements between competitors which are
anticompetitive.
[18]
His other key source of evidence comes from an enquiry which was held
in terms of section 417
of the Companies Act into two of the firms,
AACC and NOVS. The Commissioner who conducted the enquiry made her
report in February
2019. Lang seeks in the main application to rely
on the content of this report as well as evidence led during the
course of the
enquiry. However, at the instance of Nedbank the report
was set aside in November 2019. The order went further – it set
aside
the decision by the Master to “
adopt and or implement
the recommendation
” and the latter’s referral of the
report to the Director Public Prosecutions.
[19]
The October minute, and the section 417 enquiry and subsequent
report, are thus foundational
to the relief that Lang seeks in the
main application. Later in judgment I consider the various prayers
for relief that Lang seeks.
The
locus standi challenge
[20]
Before I can get to the declaratory relief being sought, I must
consider whether Lang has established
his locus standi for the relief
he seeks. Several of the respondents challenge his locus standi. The
law is clear that the duty
to establish locus standi rests on the
party instituting the proceedings.
[4]
[21]
Lang in the first instance relies on
section 21(1)(c)
of the
Superior
Courts Act, 10 of 2013
, which states:
“
(1)
A
Division has jurisdiction over all persons residing or being in, and
in relation to all causes arising and all offences triable
within,
its area of jurisdiction and all other matters of which it may
according to law take cognisance, and has the power-
(a) ….
(b) ….;
(c)
in
its discretion, and at the instance of any interested person, to
enquire into and determine any existing, future or contingent
right
or obligation, notwithstanding that such person cannot claim any
relief consequential upon the determination.
[22]
The test for locus standi in terms of this section has been laid out
in the frequently cited
case of
Cordiant
where the Supreme
Court of Appeal (SCA) set out a two-stage test as follows;
“
During
the first leg of the enquiry the court must be satisfied that the
applicant has an interest in an ‘existing, future
or contingent
right or obligation’. At this stage the focus is only upon
establishing that the necessary conditions precedent
for the exercise
of the court’s discretion exist. If the court is satisfied that
the existence of such conditions has been
proved, it has to exercise
the discretion by deciding either to refuse or grant the order
sought. The consideration of whether
or not to grant the order
constitutes the second leg of the enquiry.”
[5]
[23]
More recently in
Four Wheel Drive
the SCA held that:
“
Generally,
the requirements for locus standi are these. The plaintiff must
have an adequate interest in the subject matter
of the litigation,
usually described as a direct interest in the relief sought; the
interest must not be too remote; the interest
must be actual, not
abstract or academic; and it must be a current interest and not a
hypothetical one.”
[6]
[24]
The first obstacle Lang has to navigate is the difficulty that as an
unrehabilitated insolvent
he may not litigate without the consent of
his trustee. Lang does not have that consent, nor has he joined his
trustee. However,
in terms of
section 23(6)
of the
Insolvency Act 24,
1936
, an 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.”
[25]
There is thus no absolute bar to an insolvent bringing an action
without the consent of his trustee.
I thus turn to the question of
whether he has an adequate interest in the subject matter of the
litigation.
[7]
[26]
In his founding affidavit in the main application Lang says that the
right he is asserting is
brought in his capacity as a former sole
director of the three companies and as the founder and former trustee
of the shareholders
of the three companies. But locus standi is not
conferred by what position an applicant may have had. What matters is
the position
held at the time the litigation is instituted. This is a
point all the respondents have taken.
[27]
This criticism led to Lang adopting a new basis for his locus standi
which he set out in his
answering affidavit in the interlocutory
applications. He now asserted:
“
I am not
litigating on behalf of the liquidators against another party for any
monetary relief for the companies or for myself in
this application,
or ever after for that matter. I am simply seeking a declaratory
order as to the conduct of the respondents as
a previous director in
the best interests of the public.”
[28]
But in his heads of argument, he revealed yet a further reason for
the application:
“
Should
the Court find the Conduct of the 1
st
to 8th Respondents was wrongful, contra bonos mores, and/or contrary
to public policy and/or mala fide,
I
will launch a
Rule 42
application for consequential relief by way of
rescission of my sequestration by ABSA
(1 Respondent) due to fraud, common law fraud and that the order was
erroneously granted, in order for me to regain my financial
and legal
personae, as well as my credibility back with creditors and that I
may act as a director again to earn a living being
an economic right
I have per the Constitution
.”
[29]
Thus, Lang has asserted his locus standi based on three separate
grounds, as an ex-director and
shareholder, on general public
interest grounds and then, finally, as an insolvent seeking a basis
for the recission of his sequestration.
[30]
It was argued by some of the respondents that he must make his case
for locus standi in the founding
affidavit and having pinned his
colours to that version he must stand or fall by it.
[8]
But I have to take into account that Lang is a layperson who has had
to navigate through a thicket of technical objections and
so I am
willing to give him some leeway so as not to restrict his right of
access to court without the fullest consideration.
[31]
It is worth pointing out that when he brought the business rescue
application which was opposed
by Nedbank, the latter in making a case
for piercing the corporate veil stated:
“
The
central figure, driving force, dramatis personae and alter ego of the
Group and its constituent entities is Mr Bret Lang”.
[32]
And later in the same affidavit Nedbank’s deponent stated:
“
Having
regard to the substance rather than form of things, Lang, on his own
version. exercises de facto, complete and absolute control
of the
various respondent companies. He does so as if they were his alter
egos.”
[33]
I will therefore as a matter of fairness consider the opposition to
his locus standi based both
on what it was initially, in terms of the
case made out in the founding affidavit in the main application, and
his reconsidered
position in his answering affidavit in the
interlocutory applications, and finally in his heads of argument. Nor
is there any prejudice
to the respondents all of whom at varying
lengths have dealt with these other claims for locus standi.
a.
Locus standi in the
founding affidavit of the Main application
[34]
The case for locus standi in the founding affidavit is premised on
Lang being either a shareholder
or director of the three companies.
The problem for him as I observed earlier is that he is neither of
these now. Absent this status
he has no locus standi to institute
action for any relief let alone declaratory relief on their behalf.
The one company no longer
exists (“NOVS”) and the other
two are in the process of liquidation. The locus standi for those
latter two companies
vests in their liquidators who are neither
joined in this action nor have they indicated any intention to bring
relief of the nature
sought now. Moreover, as an insolvent in terms
of the Companies Act, he is disqualified from acting as a
director.
[9]
[35]
The same problem exists in relation to the shareholding. Lang was a
trustee of two trusts; the
BT Lang Trust and the BOD Trust which are
the shareholders in two of the three companies.
[10]
But because of his insolvency he can no longer serve as a trustee.
This is because of the provisions of section 20(2)(c) of the
Trust
Property Control Act 57 of 1998) which states that a trustee may at
any time be removed from office by the Master if his
estate is
sequestrated. Lang does not appear to be contesting these facts as he
describes himself both as a former director and
shareholder.
[36]
This means that a best for him the declaration is based on Lang’s
history that preceded
his sequestration and the companies
liquidation. But a claim based on what he once was historically, does
not ground a basis for
a declaratory order that is not met by the
criticism that it is abstract and academic. Thus, on the basis he has
pleaded it in
the founding affidavit in the main application Lang
does not have locus standi to bring the current application and the
matter
should end there.
[37]
Put simply the relief based on his history with the companies is
hypothetical and as put in
Four Wheel Drive
it does not
represent a current interest
.
b.
Locus standi to claim the relief sought in the answering affidavit in
the interlocutory applications.
[38]
In his answering affidavit in respect of the application of the first
respondent ABSA, Lang now
states:
“
I
am not litigating on behalf of the liquidators against another party
for any monetary relief for the companies or for myself in
this
application, or ever after for that matter. I am simply seeking a
declaratory order as to the conduct of the respondents as
a previous
director in the best interests of the public”.
[39]
And he went on to state:
“
Furthermore
prescription is not involved in this application as I seek no damages
or monies, only a declaratory order regards to
the conduct both civil
and criminal of the 1" to 8th Respondents.”
[40]
Later in same affidavit he refers to section 38 of the Constitution
which sets out who may enforce
a right in terms of the Bill of
Rights.
[41]
Lang has then highlighted, quoting from the provisions of section 38,
which of its subsections
he seeks to rely on. They are section 38(a)
“
anyone acting in their own interest
”; 38(c)
“anyone acting in the interests of a group or class of person”,
and; (d) “
anyone acting in the public interest”
.
[42]
Having done so he alleges that the conduct of the 1
st
to
8
th
respondents is inconsistent with the rule of law and
the values of the Constitution because they undermine the
Constitution’s
commitment to equality, dignity and the
advancement of human rights and freedoms. He concludes by saying
that: “
If allowed to go unchecked and unpunished they will
pose a serious threat to our democratic state.”
[43]
Lang has recited these rights in the Constitution without any further
amplification of how they
relate to the case he attempts to make.
Lang seems to have resorted to this invocation
as a last-ditch attempt to keep his application for a declaratory
order on track.
[44]
But if Lang has been dealt with unlawfully by the respondents this
does not mean he can simply
translate his personal experience to one
of general public interest. He makes out no case for this. The
implied theme is that if
it happened to me it can happen to everyone.
But that broadbrush approach would entitle anyone personally wronged
to make out case
of public interest. More is required to make such an
invocation, and this is not made out in the answering affidavit let
alone
the criticism that this is the wrong place to have commenced
doing so.
[45]
While the Constitutional Court in cases such as
Ferriera
v Levin NO and others
[11]
,
and
Giant
Concerts CC v Rinaldo Investments
has interpreted the notion of public interest standing under section
38 expansively, it has still cautioned that limits remain.
In
Ferreira
v Levin
Chaskalson P drew the line at what he termed “
hypothetical
and academic interests
.”
[46]
In a later case in the Constitutional Court,
Giant
Concerts
Cameron J stated:
“
Hence, where a
litigant acts solely in his or her own interest, there is no broad or
unqualified capacity to litigate against illegalities.
Something more
must be shown.
[12]
[47]
But Lang’s attempt to rely on section 38 to find his locus
standi falls into both of these
two categories of disqualification.
He has failed to demonstrate the “something more” and the
relief he seeks as I
go on to discuss later is hypothetical.
c.
Locus standi to bring relief because of a possible recission
application
.
[48]
In his heads of argument Lang contended that the basis for his
standing in the main application
was his intention to bring an
application for the recission of his sequestration. But if this is
what he intends it does not explain
why he chooses not to do so
directly instead of seeking the relief that he does in the form of
declaratory orders against the eight
respondents, alleging various
contraventions of the law.
[49]
In
Rail Commuters
the Constitutional Court pointed out that:
“
A
declaratory order is a flexible remedy which can assist in clarifying
legal and constitutional obligations in a manner which promotes
the
protection and enforcement of our Constitution and its values.
Declaratory orders, of course, may be accompanied
by other forms
of relief, such as mandatory or prohibitory orders, but they may also
stand on their own. In considering whether
it is desirable to order
mandatory or prohibitory relief in addition to the declarator, a
court will consider all the relevant
circumstances.”
[13]
[50]
In
Oakbay
a full court of this division set out the various
factors a court must take into account in exercising a discretion to
grant declaratory
relief.
“
These
include (i) the existence or absence of a dispute; (ii) the utility
of the declaratory relief and whether, if granted, it
will settle the
question in issue between the parties; (iii) whether a tangible and
justifiable advantage in relation to the applicant's
position appears
to flow from the grant of the order sought; (iv) considerations of
public policy, justice and convenience; (v)
the practical
significance of the order; and (vi) the availability of other
remedies.”
[14]
[51]
But in the present case the relief sought does not assist in
clarifying any issues that may be
relevant to any future recission
application. On the contrary it entails a hugely burdensome
engagement on collateral issues that
drag all the respondents into
the main application where they must defend themselves against an
application that might be brought
(assuming for some reason it is not
too late to do so) for recission of Lang’s sequestration.
[52]
Assuming for the benefit of Lang that he could surmount the hurdles
of locus standi and the furnishing
of security that face him in the
interlocutory applications, and that he eventually succeeded in
getting some of the prayers he
seeks in the main application, to get
the NPA and the Competition Commission to investigate the various
respondents conduct, it
is not clear how this assists him with his
quest for legal clarity, if that is what he now seeks. Apart from how
long all this
would take, even if a criminal prosecution was
instituted against one or more of the respondents how does this
distant hope avail
any subsequent application for recission which by
then would be so hopelessly late? Declaratory orders of the kind he
seeks serve
neither to clarify his legal position to seek recission
nor would they have any practical significance.
[53]
I thus find that he does not have locus standi in respect of any of
the three grounds he has
relied on. I now turn to the second leg of
the
Cordiant
test of whether or not to grant the order even
though this may be unnecessary since I have found that he does not
qualify for locus
standi in terms of the first leg. Nevertheless, it
would be remiss not to consider this aspect as well since both the
public interest
test and the common law test for a declaratory order,
address in considering standing, the nature of the relief sought.
The
relief sought is incompetent
.
[54]
I turn now to the question of why the relief sought by Lang is
incompetent.
[55]
The first consideration, and I do not want to disrespect Lang, but
some of the relief is framed
in a manner so unclear that it is
unintelligible.
[56]
Paragraph 1 of the Notice of Motion calls for the court to declare
the respondents conduct prior
to the liquidation of the three
entities “
...wrongful, contra bonos mores, and/or contrary
to public policy and/or mala fides.
"
[57]
This calls for a moral judgment of the conduct of the respondents
rather than a legal conclusion
and hence is incompetent because it is
academic.
[58]
In a similar vein, paragraphs 12, 13 and 14, call for a moral
judgment to be made of the respondents
conduct rather than
pronouncing on their lawfulness.
[59]
Some relief is framed in a way that it is either not clear what it
means, or it is unclear what
is being sought. This is because the
formulation is narrative rather than declaratory. Into this category
I would place paragraphs
2-6 and 11. But even where it has been more
clearly formulated it is incompetent. Prayer 7 falls into the latter
category. Here
Lang seeks a declarator that the bank respondents
acted as the de facto directors of the three companies by acting in
concert through
the sixth and seventh respondents. Of course, a
juristic person cannot be appointed as director of a company.
[15]
[60]
What I understand him to mean here is that the bank respondents
conspired amongst themselves
to use the sixth and seventh respondents
as instruments of their collective will, so that they, the banks, not
the sixth and seventh
respondents, were the real directors of the
three companies. But even giving this confusing prayer this
gloss, it is not
clear what this relief is meant to achieve
concerning companies now liquidated. It is a textbook example of
hypothetical relief.
[61]
Paragraphs 9 and 10 at least have the virtue of clearer language.
Prayer 9 is framed as follows:
“
A
further declaratory order regarding the conduct and / or any
contraventions if any by the 1 to 8™ Respondent's, and whether
they acted in collusion, to unduly prefer themselves with specific
regard, but not limited to,
a.
Extortion.
b.
Theft.
c.
Fraud (including misrepresentation and silent non disclosure's)
d.
Forgery and / or uttering.
e.
Any offence contemplated in sections 1 (1) and 1A(1) of the
Intimidation Act. 1982 (Act No. 72 of 1982);
f.
Defeating or obstructing the course of justice.
g.
Perjury.
h.
Corruption
i.
Any conspiracy, incitement or attempt to commit offence referred to
above.”
[62]
But on 22 March 2024, Lang then filed a notice of amendment in terms
of Rule 28(1) in which he
sought to delete paragraph 9. He explained
in the notice that this was because: “…
the same is
incorrect and is a duplication of paragraph 17.
Paragraph 17 is
limited to declaratory orders in respect of two statutes and is
framed in this way:
“
A
further declarator regards to any specific offence's contemplated in
Section 12
of the
Prevention and Combating of Corrupt Activities Act,
2004
and the Prevention of Organised Crime Act 121 of 1998
(Racketeering) per schedule 1 offenses (as stated in paragraph 9
prior hereto)
which should be referred to the Director of Public
Prosecutions and or the National Prosecuting Authority for further
investigation
and or prosecution.”
[63]
Prayer 10 deals with different alleged contraventions but is
formulated in a similar vein:
“
10.A
further declarator with regards any contraventions of,
a.
The
Competition Act 89 of 1998
.
b.
Bribery per the Prevention and Combating of Corrupt Activities Act,
2004 (Act 12 of 2004).”
[64]
But even if the court would grant this relief what practical effect
would it have. It would not
bind the police, National Prosecuting
Authority, or the Competition Commission to prosecute. Both the
latter enjoy independence
in relation to the conduct of their
respective rights to prosecute.
[16]
The court is thus being asked to venture an opinion. Worse still it
is asked to express an opinion based on papers in an application
where disputes of fact can readily be anticipated.
[17]
None of the banks appear to be conceding an inch on the issue of
illegality and neither are the other respondents. Thus, the court
is
being asked to give an opinion based on a contested record, for
relief which is ineffectual, as it falls within the province
of other
institutions to pursue. This courts cannot do as noted in
Eagles
Landing
where Kroon J makes this point:
“
Be
that as it may, even were a judgment by me to assist in removing any
such uncertainty, the request for such a judgment would
undoubtedly
be no more than to seek the opinion of the Court, something which
cannot be countenanced.
[18]
[65]
Lang may well be concerned that these authorities may not take his
complaint seriously given
that the alleged miscreants are powerful
financial institutions. But even if this is so, and I express no view
on this, this difficulty
does not mean that the court should give an
opinion so that there is something to wave at the supine official in
the front desk
of the charge office.
[66]
But there may be another motive. Counsel for ABSA argues that what
Lang is seeking is a moral
victory. That may well be right. But
courts are not set up to give declaratory orders to achieve that
purpose.
Conclusion
[67]
Mr Lang has for the reasons given no locus standi to bring this
action and it falls to be dismissed.
I therefore do not need to
consider the various arguments concerning whether he should be
ordered to furnish security in terms
of Rule 47.
[68]
Costs of the application are awarded to those respondents who brought
the interlocutory applications
on a party and party scale. I was
asked to consider the awarding of costs of counsel on scale C. Given
the length of the papers
in this matter and the difficulty of
navigating some of the relief, I consider that this request is
justified. However, I do not
consider that any respondent required
the services of two counsel or senior counsel, so I have limited the
costs to one counsel.
ORDER:-
[69]
In the result the following order is made:
1.
The applicant’s application is
dismissed against all the respondents on the basis of lack of locus
standi.
2.
Those respondents who opposed the
application are awarded party and party costs, including costs on
Scale C and costs of one counsel.
N. MANOIM
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION
JOHNANNESBURG
Date
of hearing:
27
May 2024
Date
of Judgment:
11
September 2024
Appearances:
For
the Applicant:
B
T Lang
Instructed
by:
In
Person
Counsel
for the First Respondent:
N
J Horn SC
Instructed
by:
Tim
Du Toit & Co Inc
Counsel
for the Second Respondent:
G
D Wickins SC
L
Acker
Instructed
by:
Kwa
Attorneys
Counsel
for the Third Respondent:
N
Konstanitinides SC
Instructed
by:
David
Oshry & Associates
Counsel
for the Fourth Respondent:
L
Hollander
Instructed
by:
Shaie
Zindel Attorneys
Counsel
for the Fifth Respondent:
C
S van Castricum
Instructed
by:
Glover
Kanieappan Inc
Counsel
for the Seventh Respondent:
A
R Newton
Instructed
by:
Snaid
& Morris Attorneys
Counsel
for the Eighth Respondent:
I
Zidel SC
Instructed
by:
Mendelson
Attorneys Inc
[1]
The latter has had no part in these proceedings because no relief is
sought against it.
[2]
Here all the parties rely on the decision in
Boost
Sports Africa (Pty) Ltd v South African Breweries (Pty) Ltd
2015 (5) SA 38
where this approach is discussed comprehensively.
[3]
In opposing the business rescue application Nedbank allege that Lang
not it was responsible for appointing Du Toit and Deveraux.
[4]
Four
Wheel Drive Accessory Distributors CC v Rattan NO
2019 (3) SA 451
(SCA) at paragraph 7.
[5]
Cordiant
Trading CC v Daimler Chrysler Financial Services (Pty) Ltd
2005
(6) SA 205
(SCA),
Paragraph 18. Most recently followed again by the SCA in
Pasiya
and Others v Lithemba Mining (Pty) Ltd and Others
(206/2022; 264/2022)
[2023] ZASCA 169
;
[2024] 1 All SA 626
(SCA);
2024 (4) SA 118
(SCA) (1 December 2023)
[6]
Four
Wheel Drive Accessory Distributors CC v Rattan NO
2019 (3) SA 451
(SCA) at paragraph 7.
[7]
As per
Cordiant
and
Four
Wheel Drive
.
[8]
Tavakoli
and Another v Bantry Hills (Pty) Ltd
2019 (3) SA 163
(SCA) para [26] where the court held that the
appellants were required to establish their locus standi in their
founding papers.
[9]
Section 69(8)(b)(i).
[10]
One company is a subsidiary of the other.
[11]
1996(1) SA 984.
[12]
2012
JDR 2298 (CC) paragraph 35.
[13]
R
ail
Commuters Action Group and Others v Transnet Ltd t/a Metrorail and
Others
2005
(2) SA 359 (CC
paragraph 107.
[14]
Minister
of Finance v Oakbay Investments (Pty) Ltd and others
2018 (3) SA 515
(GP) paragraph 59. The
Oakbay
decision was cited with approval by the Constitutional Court in
Competition
Commission v Hosken Consolidated Investments Ltd and Another
2019(3) SA 1 (CC) at paragraph 84 and footnote 52.
[15]
Section 69(7)(a) of the Companies Act.
[16]
In any event this court as a civil court has no jurisdiction to
declare conduct is in contravention of the
Competition Act. That
falls within the exclusive jurisdiction of the Competition Tribunal
and Competition Appeal Court. ( see
section 62(1).)
[17]
This much is at least clear from some of the prior litigation with
Nedbank.
[18]
Eagles
Landing Body Corporate v Molewa NO and Others
2003 (1) SA 412
(T) at paras (61-62).
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