Case Law[2023] ZAGPJHC 704South Africa
S.M v J.M and Another (2022/218731) [2023] ZAGPJHC 704 (13 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
13 June 2023
Headnotes
by Deed of grant TG3341/1994BP;
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## S.M v J.M and Another (2022/218731) [2023] ZAGPJHC 704 (13 June 2023)
S.M v J.M and Another (2022/218731) [2023] ZAGPJHC 704 (13 June 2023)
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sino date 13 June 2023
FLYNOTE:
FAMILY
– Divorce – Disposal of home – Interdictory relief
to prevent respondent disposing of erstwhile matrimonial
home –
Married out of community of property with accrual system –
Anti-dissipation interdict sought if property sold
– Applicant
stands to suffer irreparable harm if property is sold and proceeds
squandered – Respondent has not set
out his financial position
to indicate whether he will be in a position to pay difference
between accrual of respective estates
– Relief granted.
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NUMBER: 2022/218731
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
NOT
REVISED
13.06.23
In
the matter between:
M,
S
Applicant
and
M,
J
First
Respondent
M[...]
CONSULTANT CC
Second
Respondent
Delivered
:
This judgment was handed down electronically by circulation to the
parties and/or their legal representatives by email, and by
uploading
same onto CaseLines. The date and time for hand-down is deemed to be
have been on 13 June 2023.
JUDGEMENT
KHAN
AJ:
Introduction
[1]
The Applicant seeks urgent interdictory relief, preventing the First
Respondent and the Second Respondent (“the Respondents’”)
from selling or disposing of the erstwhile matrimonial home, situate
at of [...], Midrand, (“the property”), pending
the
finalization of the divorce proceedings between the Applicant and the
First Respondent.
[2]
In the alternative, the Applicant seeks an anti-dissipation
interdict, in the event the property has already been sold, in terms
of which the proceeds from the sale of the property must be paid over
and kept in trust until such time that the divorce proceedings
are
finalized.
Background
[3]
The parties were married to each other on the 9 February 2017, out of
Community of Property, with the application of the Accrual
system. On
the 13 December 2016, the parties entered into an Antenuptial
Contract (“the ANC”), in terms of which the
commencement
values of their respective estates were set out.
[4]
Relevant to these proceedings is clause 5 of the ANC, which provides
as follows:-
“
5.
That
for the purposes of proof of the net value of their respective assets
at the commencement of the intended marriage the intended
spouses
declared the net value of their respective estates to be as follows.
- that
of J M to be R5,300,000. consisting of:
that
of J M to be R5,300,000. consisting of:
5.1.1
The immovable property situated at Erf [...], Mabopane X, held by
Deed of grant TG3341/1994BP;
5.1.2
The immovable property situated at Erf [...], Zwartkop Extension 4,
Gauteng, held by Deed of grant T82027/2002.
5.1.3
The immovable property situated at Unit […] & Exclusive
use area[…], Gauteng, held by Transfer ST 37609/2007
&
Notarial Deed for Exclusive use SK 3641/2007S.
5.1.4
J M, shall release to a Family Trust, the property at erf [...],
Gauteng, held by Notarial Deed of Lease K5600/2011L. in the
name of
M[...] Consultants CC”.
[5]
On the 21 June 2022, the Applicant instituted divorce action against
the First Respondent, alleging physical and emotional abuse.
The
Applicant alleges that the parties lived together in the property
until November 2019 when the Applicant and the minor child
vacated
the property. The divorce between the parties is acrimonious and has
not been finalized, the Applicant has charged the
Respondent
criminally and both parties have sought protection orders against
each other.
[6]
On the 22 March 2023, the Applicant became aware that the First
Respondent had advertised the property for sale on Property
24.
Counsel for the Respondents’ confirmed at the hearing of the
matter that the property had not been sold.
[7]
The Applicant alleges that the First Respondent, in alienating the
property before the accrual claim vests prejudices her claim
as it
depletes the assets before the determinative date of the accrual
claim thereby reducing, if not extinguishing the difference
in
accrual between the two estates. In addition, that the property is a
major asset in the marriage and that she has contributed
her finances
and project management skills in building the house on the property.
The property cost around R12,000,000.00 to build
and is on sale in
the amount of R11,600 000.00. The Applicant submits that the
property is being sold below cost to quickly
dispose of it and to
dissipate the proceeds of the sale, to her prejudice.
[8]
The Respondents’ oppose the relief sought and have raised
various points
in limine,
the first of which is that
the application is not urgent. The First Respondent alleges that the
Applicant has failed to set forth
explicitly the circumstances which
he avers renders the matter urgent (
sic
) further that the
Applicant did not address the reason why she would not be afforded
substantial redress at a hearing in due course.
[9]
In
East
Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty) Ltd
and Others (11/33767)
[1]
,
Notshe
AJ stated: -
“
The
import thereof is that the procedure set out in Rule 6(12) is not
there for the taking. An Applicant has to set forth
explicitly
the circumstances which he avers render the matter urgent. More
importantly, the Applicant must state the reasons
why he claims that
he cannot be afforded substantial readdress at a hearing in due
course. The question of whether a matter is
sufficiently urgent to be
enrolled and heard as an urgent application is underpinned by the
issue of absence of substantial readdress
in the application in due
course. The rules allow the court to come to the assistance of
a litigant because if the latter,
were to wait for the normal course
laid down by the rules, it will not obtain substantial redress.
It
is important to note that the rules require absence of substantial
redress. This is not equivalent to irreparable harm
that is
required before the granting of an interim relief. It is
something less. He may still obtain redress in an
application
in due course, but it may not be substantial. Whether an
Applicant will not be able to obtain substantial redress
in an
application in due course will be determined by the facts of each
case. An Applicant must make out his case in this regard.”
[10]
The abovementioned principle was once again considered in the case
of
Mogalakwena
Local Municipality v The Provincial Executive Council, Limpopo and
others
[2]
,
at
paragraphs 63 and 64:
“
I
proceed to evaluate the Respondent’s submission that the matter
is not urgent. The evaluation must be undertaken by
an analysis
of the Applicant’s case taken together with a
llegations
by the Respondent which the Applicant does not dispute. Rule
6(12) confers a general judicial discretion on a court
to hear a
matter urgently … It seems to me that when urgency
is an issue the primary investigation should be
to
determine
whether the Applicant will be afforded substantial redress at a
hearing in due course. If the Applicant cannot establish
prejudice in
this sense, the application cannot be urgent.
Once
such prejudice is established, other factors come into
consideration. These factors include (but are not limited to):
Whether the Respondents can adequately present their cases in the
time available between notice of the application to them and
the
actual hearing, other prejudice to the Respondent’s and the
administration of justice, the strength of the case made
by the
Applicant and any delay by the Applicant in asserting its rights.
This last factor is often called, usually by counsel
acting for
Respondents, self-created urgency.”
[11]
Having
considered the founding affidavit and heard argument on the issue of
urgency, I am persuaded that the Applicant has set out
sufficient
facts justifying why the application should be heard as a matter of
urgency and why the Applicant will not be afforded
substantial
redress at a hearing in due course. Prior to bringing this
application, the Applicant sought clarity from the First
Respondent
and her Attorneys sought an undertaking from the First Respondent’s
Attorneys that the property would not be sold.
The First Respondent
failed to give such an Undertaking and advised that he would proceed
with the sale.
[12]
The Applicant alleges that should the property be sold, she will
suffer irreparable harm as the proceeds of the sale will be
dissipated by the First Respondent. The property was listed for sale
on the 25 October 2022. It is not known when the property
will be
sold. The First Respondent has not set out his financial position or
the reason for the sale of the property or what informed
the Second
Respondent’s decision to sell the property. It is not
known whether the First Respondent will be in a position
to pay the
Applicant the difference in the accrual should the property be sold
and the proceeds be utilised by him.
[13]
I am satisfied that the Applicant will not obtain substantial redress
at a hearing in due course and I accordingly condone
the Applicant’s
non-compliance with the Rules of Court relating to service and time
periods in terms of Rule 6(12).
Marriages
subject to Accrual
[14]
A marriage that is subject to the accrual system is a marriage out of
community of property and community of profit and loss
in terms of
section 2 of the Matrimonial Property Act 88 of 1984, (“the
Act”) Each spouse owns and controls his or
her own estate. As a
result, neither spouse has any right in or claim to any of the assets
of the other spouse during the subsistence
of the marriage
[3]
.
[15]
On dissolution of the marriage neither spouse is entitled to any of
the assets of the other spouse, because
section
3(1)
of
the
Matrimonial
Property Act expressly
states
that:-
“
At
the dissolution of a marriage subject to the accrual system, by
divorce or by the death of one or both of the spouses, the spouse
whose estate shows no accrual or a smaller accrual than the estate of
the other spouse, or his estate if he is deceased, acquires
a claim
against the other spouse or his estate for an amount equal to half of
the difference between the accrual of the respective
estates of the
spouses.”
[16]Consequently,
the spouse whose estate shows the smaller or no accrual is not
entitled to claim assets to the value of half the
difference between
the accruals from the other spouse, he or she only has a
monetary claim against the other spouse. In terms
of sections 3(1)
and (2) of the Act, the accrual claim arises only on dissolution of
the marriage. During the subsistence of the
marriage, the spouses
have a right to share in the accrual of each other's estates.
Although a spouse’s accrual claim only
arises at the
dissolution of the marriage
[4]
,
(this being the date the value of the accrual claim is determined),
the
right
to
share in the accrual of the other spouse's estate arises when the
spouses enter into the marriage.
[17]
In
MB v NB
[5]
Brassey
AJ stated:
“
Under
the accrual system contemplated by the Matrimonial Property Act 88 of
1994, the parties have an interest in the amount by
which each
other’s estate improves in value over the marriage. The
interest is purely equitable for, questions of dissipation
aside, it
becomes exigible only ‘at the dissolution of the marriage …
by death or divorce’ in terms of s 4(1)
of the Act. Simply put,
the effect of the provision is that each party receives, in terms of
the operative order, a half share
of the amount by which the other
spouse’s estate has increased in value during the course of the
marriage.”
[18]
In
N
D V M D
,
Gilbert AJ state
d,
[6]
“
this
brings with it the difficulty that one spouse may seek to dissipate
his or her assets in anticipation of the dissolution of
the marriage
and the resultant determination of the value of the accrual claim. A
dissipation of assets before that determinative
date has two direct
negative effects on the accrual claim, the alienator spouse has less
assets in his or her estate at the determinative
date, which reduces
the extent of the difference in accrual between that estate and the
estate of the beneficiary spouse, the less
assets there are in the
alienator spouse’s estate once the value of the accrual claim
has been determined upon the dissolution
of the marriage, the less
assets there are available to satisfy that accrual claim once awarded
by the court. It is not unusual
that the spouse who believes that he
or she will have an accrual claim against the other upon dissolution
of the marriage will
be fearful of the other spouse dissipating
assets and so would take steps to protect his or her contingent right
to that accrual
claim.”
[19]
The court in
Langebrink
v Langebrink
[7]
and
Gernetzky
v Gernetzky
[8]
found
that the contingent accrual claim is susceptible to preservation by
way of an interim interdict preventing the dissipation
of assets
pending the vesting and determination of that claim. This is so
irrespective of the contingent nature of the accrual
right but
provided that an applicant can demonstrate
prima
facie,
although
open to some doubt that an accrual claim will accrue in his or her
favour, once vested, although the extent thereof need
not be
determined.
[20]
In considering the Applicant’s claim for interim interdictory
relief, the principles in
Webster
v Mitchell
[9]
as
modified in
Gool
v Minister of Justice
[10]
apply.
The requirements for interim interdictory relief are trite and as set
out in
Setlogelo
v Setlogelo
[11]
:-
20.1
A
prima facie
right, although open to some doubt on
the part of the Applicant,
20.2
A well-grounded apprehension of irreparable harm if the interim
relief is not granted,
20.3
The balance of convenience favours the granting of the interdict,
20.4
The absence of any other satisfactory remedy available to the
Applicant.
[21] When
determining whether the Applicant has satisfied these requirements, I
am guided by the approach articulated by Holmes
J in Olympic
Passenger Services v Ramlagan
[12]
.
"It
thus appears that where the applicant's right is clear, and the other
requisites are present, no difficulty presents itself
about granting
an interdict. At the other end of the scale, where his prospects of
ultimate success are nil, obviously the court
will refuse an
interdict. Between these two extremes falls the intermediate cases in
which, on the papers as a whole, the applicant's
prospects of
ultimate success may range all the way from strong to weak.
The
expression 'prima facie established though open to some doubt' seems
to me a brilliantly apt classification of these cases.
In such cases,
upon the proof of a well-grounded apprehension of irreparable harm,
and there being no ordinary alternative remedy,
the court may grant
an interdict.
"It
has a discretion, to be exercised judicially upon a consideration of
all the facts. Usually this will resolve itself into
a nice
consideration of all the prospects of success and the balance of
convenience. The stronger the prospects of success, the
less need for
such a balance to favour the applicant: the weaker the prospects of
success, the greater the need for the balance
of convenience to
favour him.
"I
need hardly add that by balance of convenience is meant the prejudice
to the applicant if the interdict be refused, weighed
against the
prejudice to the respondent if it be granted."
[21]
I consider whether the Applicant has satisfied the requirements for
an interim interdict. The commencement value of the Applicant’s
estate is recorded at R2.800 000,00, and that of the First
Respondent at R5 300 000.00. It is noted that paragraph
5.1.4 of the ANC is repeated in the Applicant’s commencement
value. This is relevant as it is apparent that both parties
intended
for the property to form part of their estates and is further an
indication that even though the property was registered
in the name
of the Second Respondent this was not considered a barrier for the
inclusion of the property.
[22]
The
Applicant alleges that has a contingent right to share in the
accrual on dissolution of the marriage and is accordingly
entitled to
protect such contingent right, also that the First Respondent’s
100% shareholding in the Second Respondent
forms part of the estate
of the First Respondent and as such would have to be included in the
calculation of the accrual.
T
he First
Respondent argues that the Applicant has not established
a
prima facie
right to a share in
the accrual and that the Applicants claim to accrual vests on
dissolution of the marriage, at this stage she
does not have a claim,
but only a right.
[23]
The Respondent submits that he has pleaded that the quantification of
the actuarial claim should be referred to a referee for
enquiry and
report in terms of section 38 of the Superior Courts Act and that the
Applicant should forfeit all the patrimonial
benefits of the
marriage, the Applicant has not replicated to the plea as yet.
[24]
As indicated above, the courts in
Langebrink
v Langebrink
[13]
and
Gernetzky
v Gernetzky
[14]
have
already found that the contingent accrual claim is susceptible to
preservation by way of an interim interdict preventing
the
dissipation of assets pending the vesting and determination of that
claim. The commencement value of the First Respondent’s
Assets,
which
included 3 others properties (my emphasis)
together
with the property was valued at R5 300 000.00. The property
is itself presently for sale at R11.600 000. In
my view it is
apparent that the Applicant has demonstrated
prima
facie,
that
an accrual claim will accrue in her favour and has accordingly
satisfied the first requirement for interdictory relief,
that of a
prima facie right.
[25]
The Applicant sought an undertaking from the First Respondent that
the property would not be sold pending the divorce, this
was refused.
The property has been on the market since 25 October 2022 and is
being marketed for less that its market value. The
parties are
embroiled in a bitter divorce, the First Respondent acknowledges that
the divorce will take a long time to be finalized.
The Applicant
stands to suffer irreparable harm if the property is sold and the
proceeds of the sale are squandered by the First
Respondent. The
First Respondent has not set out his financial position to indicate
whether he will be in a position to pay the
difference between the
accrual of the respective estates to the Applicant upon dissolution
of the marriage, despite the sale of
the property. The Applicant
accordingly has a well-grounded apprehension of irreparable harm.
[26] It
is common cause that the property served as the marital home of the
parties until such time as the Applicant moved
out of the property.
Even though the property is registered in the name of the Second
Respondent, there is no indication on the
papers before me, that the
property was ever utilized by the Second Respondent for business
operations or for any other purpose
save as the marital home where
the family resided. The principal place of business of the Second
Respondent is noted to be at […],
Centurion.
[27]
It is common cause that the First Respondent is the sole
shareholder and sole director of the Second Respondent. The Applicant
alleges that the First Respondent holds a major part of his assets
through the Second Respondent and that there is no separation
of
affairs between the First Respondent and the Second Respondent. The
Second Respondent is effectively the alter ego of the First
Respondent and that inclusion of the property in the Antenuptial
contract of the parties is evidence that the First Respondent
has
never regarded the Second Respondent as an independent company.
[28]
The First Respondent denies that the property is listed as part of
his commencement value or that he is disposing of the property,
he
alleges that the property is being disposed of by the Second
Respondent. He further alleges that Clause 5.1.4 is a
stipulatio
alteri
and should be severed from the rest of the ANC as it
requires the First Respondent to release property that does not
belong
to him but to a juristic person.
[29]
There are various problems with this proposition, the first and most
glaring being why does the property feature in the ANC
as part of the
commencement values of the parties? If this was
de facto
the
property of the Second Respondent and not simply a legal fiction, it
should not feature in the ANC at all. The fact that
it does lends
credence to the Applicant’s allegation that the Second
Respondent is merely the alter ego of the First Respondent
and not in
fact a separate juristic entity. The First Respondent gives no
explanation as to what motivated him to include the property
in the
ANC, knowing that same belonged to the Second Respondent. The
First Respondent further does not indicate why an application
to
severe clause 5.1.4 was not brought previously, given that the ANC
was registered in 2016.
[30]
If the First Respondent believed that the property was that of the
Second Respondent, completely separate and distinguishable
from
himself, why would he include this property in his ANC prefaced by
the words,
J M, shall release to
the Family Trust
,…………
why not say the Second Respondent. It appears to this Court that at
the time when the ANC was
signed the First Respondent considered the
property to be his property and not that belonging to the Second
Respondent. It
is only now that the relationship between the
parties has soured that the First Respondent is relying on the legal
fiction to exclude
the property from the accrual of the parties. The
First Respondent has not set out any facts which indicates that the
balance
of convenience favours him, relying instead on technical
defences which do not assist him or this Court. The factors set out
above
favour the Applicant, who will be prejudiced if the property is
sold and the proceeds squandered.
[31]
The Applicant sought an undertaking from the Respondent that he would
not proceed with the sale before approaching this Court,
the First
Respondent has refused to accede to this request, the Applicant has
no other option but to seek the intervention of the
court in order to
protect her contingent right in the property from being extinguished
prior to the finalization of the divorce.
The Applicant is
accordingly entitled to interdictory relief.
[32]
The First Respondent’s remaining points
in
limine
are briefly considered,
firstly that the case was not properly issued. The First Respondent
alleges that the case was issued on
the 4
th
of
April 2023 under case number 21873/2022, which is for the divorce
proceedings and that this urgent application should have been
issued
under a different case number as these proceedings do not emanate
from the divorce proceedings because the Second Respondent
is not a
party to the divorce proceedings.
[33]
The argument in this regard cannot be countenanced, it is common
cause that the parties are involved in a divorce and that
case number
21873/2022 has been allocated to such divorce proceedings, whilst it
is correct that the Second Respondent is not a
party to the
proceedings it is also common cause that the Second Respondent is the
registered owner of the property. As such,
no application in
which the property is the subject matter of such application can be
actioned without citing the Second Respondent.
The argument
that the Second Respondent is not a party to these proceedings has
itself been blurred by the First Respondent by
the inclusion of the
property belonging to the Second Respondent in the ANC, it is thus
the First Respondent himself that has brought
the Second Respondent
into the divorce proceedings of the parties. The property and the
proprietary consequences of the marriages
are inextricably linked and
cannot be separated.
[34]
The First Respondent submits that the property is registered in the
name of the Second Respondent, does not form part of the
joint estate
of parties married in community of property and that labelling the
property as a matrimonial property does not convert
it into a
matrimonial property. The First Respondent does not offer an
explanation as to why the property was included in the ANC
of the
parties neither does he dispute that that property was used as a
marital home by the parties.
[35]
The First Respondent argues that the trust has not been established,
no trustees exist, the Applicant is not a trustee and
has failed to
prove that she has the necessary locus standi, her claim has
prescribed and that the property does not form of the
estate of the
parties as clause 5.1.4 indicates that the First Respondent shall
release the property to the family trust. Again,
the First Respondent
fails to explain why the property is listed as part of the
commencement value of the parties. Whilst it is
common cause that the
Trust was not registered, there is again no explanation from the
First Respondent as to why the Trust was
not registered.
[36]
The failure to register the Trust does not exclude the property
listed in the commencement value of the parties from being
included
in the estate of the parties as section 6(3) of the Act demonstrates:
“
an
antenuptial contract contemplated in subsection (1) or a certified
copy thereof, or a statement signed and attested in terms
of
subsection (1) or a certified copy thereof contemplated in subsection
(2), serves as prima facie proof of the net value of the
estate of
the spouse concerned at the commencement of his marriage.”
[37]
In addition, the Supreme Court of Appeal
[15]
has
held,
“
when
dealing with Trusts in the context of an accrual
,
the court is empowered to pierce the trust veneer, and order
that the value of such assets be taken into account in the
calculation of the accrual.”
The
alternative claim, anti-dissipatory relief.
[38]
Pending
dissolution of the marriage, the right to share in the accrual of the
other spouse's estate is no more than a contingent
right. The right
becomes vested only when the marriage is dissolved and only if there
is indeed an accrual.
[16]
If,
during the marriage, one of the spouses fraudulently intends (i e
with the intention to prejudice the other spouse) to
alienate his or
her assets, the spouse who stands to be prejudiced may, in principle,
apply for an interdict to prohibit the alienation
in order to protect
his or her right to share in the other spouse's accrual
[17]
.
[39]
The
Appellate division in the leading case of Knox D’Arcy Ltd v
Jamieson
[18]
,
observed that:
"anti-dissipation"
suffers from the defect that in most cases, and certainly in the
present case, the interdict is not
sought to prevent the respondent
from dissipating his assets, but rather from preserving them so well
that the applicant cannot
get his hands on them.
Since
the purpose of the interdict is to prevent a person (the intended
defendant) who can be shown to have assets and who is about
to defeat
the plaintiff’s claim, or to render it hollow, by secreting or
dissipating assets before judgment can be obtained
or executed, and
thereby successfully defeating the ends of justice by doing so, the
applicant
who
bears the onus to establish the necessary requirements for the grant
of the interdict, need show a particular state of mind
on the part of
the respondent, i e, that he is getting rid of the funds, or is
likely to do so, with the intention of defeating
the claims of
creditors. But it is not essential to establish an intention on the
part of the respondent to frustrate an anticipated
judgement if
the conduct of the respondent is likely to have that effect”
.
[40]
As
for the standard of proof required and the manner in which disputed
facts are to be approached in determining whether the interdict
should be granted or not the Court
[19]
concluded
as follows:
“
The
basis of the petitioners' claim as set out in the petition for leave
to appeal and their heads of argument is that they have
proved prima
facie that the respondents had an intention to defeat the
petitioners' claims, or to render them hollow, by secreting
their
assets. It was common cause that if these facts could be proved,
together with the other requirements for an interim interdict,
the
petitioners would have a good case, and for the reasons given above I
agree with this approach. There was some argument on
whether the fact
that assets were secreted with the intent to thwart the petitioners'
claim had to be proved on a balance of probabilities
or merely prima
facie. However, it seems to me that here also the relative strength
or weakness of the petitioners' proof would
be a factor to be taken
into account and weighed against other features in deciding whether
an interim interdict should be granted.”
[41]
In
RS
v MS & others,
[20]
the
wife sought an anti-dissipation interdict against her husband,
restraining him from withdrawing or receiving funds
held in his name
pending finalisation of the spouses' divorce proceedings. The court
pointed out that one spouse does not have
a vested right in any of
the assets invested or registered in the name of the other
spouse
[21]
.
Before the divorce, the spouse whose estate shows the smaller accrual
merely has a contingent right to claim half of the difference
between
the accruals in the spouses' estates on divorce
[22]
.
[42]
In order successfully to protect a contingent right by way of an
interdict
pendente
lite
,
the applicant must prove that:
(a)
the
respondent has assets within the jurisdiction of the court;
(b)
the
respondent,
prima
facie
,
has no
bona
fide
defence
against the applicant's alleged contingent right;
(c)
the
respondent has the intention to defeat the applicant's claim by
dissipating or secreting assets; and
(d)
the
applicant has a well-founded apprehension of irreparable loss,
should the interdict not be granted
[23]
.
[43]
The court in this instance found that the applicant had failed to
prove that these requirements had been satisfied as:-
43.1
The papers did not show that the husband intended to defeat the
wife's claim by dissipating his assets, his withdrawal
of funds
and the scope of those withdrawals were not so extraordinary that
they warranted an inference of
mala fides.
Furthermore,
a substantial part of his financial investments could not be drawn on
for another thirteen years.
43.2
The husband further offered to retain, untouched, assets totalling
some R9 million, which he alleged would cover any claim
his wife
might eventually prove against him
[24]
.
These facts showed an absence of
mala
fides
on
the part of the husband
[25]
.
43.3
The wife also failed to show a well-founded apprehension of
irreparable loss, since her husband would be able to meet
whatever
claim she could prove in the divorce proceedings. Furthermore, if the
interdict were to be granted, the husband would
be deprived of the
working capital he required to be able to conduct his business, and
his business and cash flow would be significantly
prejudiced.
[44]
In
the present case, the First Respondent does not deny that the
property is on the market and it is apparent that he has every
intention to proceed with the sale. He gives no justification as to
why the property is on the market and why he will be prejudiced
if
same is not sold, his attitude is quite simply, the property is not
his, it belongs to the Second Respondent, he is not selling
the
property, the Second Respondent is, the property is not part of his
commencement value and paragraph 5.1.4 of the ANC should
be severed
from the remainder of the contract.
The
first Respondent further fails to place any facts before court as to
his finances or the business operations of the Second Respondent
and
it appears from the papers that the Second Respondent does not
conduct business from the property.
[45]
The
First Respondent indicates that the property is not a matrimonial
property but does not dispute the Applicant’s version
that the
parties lived in the property as a family until November 2019. The
Respondent raises various points
in
limine
but fails to deal with the
allegations of dissipation levelled against him, choosing rather to
rely on technical defences, which
in my view do not assist him.
[46]
It is common cause that the property is located within the
jurisdiction of this court, the First Respondent gives no explanation
as to why the property is being sold, as indicated above,
has
placed no information before this Court to show that on divorce the
Applicant's claim for accrual will not be prejudiced even
if the
property is sold.
[47]
That the First Respondent relies on the fact that it is the Second
Respondent who is the owner of the property and who is selling
the
property, fails to give an explanation as to why such property
is
featured in the commencement value in the ANC or how it is that he
was able to include the property albeit not being the owner
is
indicative of the fact that the First Respondent
intends
to prejudice the Applicant’s claim.
In
the circumstances, I make an order in the following terms:
Order
1.
The application be and is hereby heard as an urgent application in
terms of the provisions of Rule 6(12) of the Uniform Rules
of Court,
the Applicant’s non-compliance with the rules relating to
service and time periods is condoned.
2.
The
First and Second Respondents are interdicted from selling or
disposing of the property situate at of [...], Midrand, (“the
property”) pending the finalization of the divorce proceedings
between the Applicant and the First Respondent.
3.
In
the event that the property has already been sold, the proceeds from
the sale of the property must be paid over and kept in the
Trust
Account of an Attorney, until such time that the divorce proceedings
are finalized.
4.
The
First and Second Respondents are ordered to pay costs on an attorney
and client scale.
J
L KHAN
Acting
Judge of the High Court
Gauteng
Local Division, Jburg
Heard:
14 April 2023
Judgment:
13 June 2023
Applicant’s
Counsel:
Mr
V M Nkoana
Instructed
by:
V
M Nkoana Attorneys
First
and Second Respondent’s Counsel:
Mr
S N Molele
Instructed
by:
S
Molele Attorneys
[1]
2011(ZAGPJHC)
196 (23 September 2011) in paras 6 and 7
## [2](35248/14)
[2014] ZAGPPHC 400; [2014] 4 All SA 67 (GP) (19 June 2014)
[2]
(35248/14)
[2014] ZAGPPHC 400; [2014] 4 All SA 67 (GP) (19 June 2014)
[3]
Reeder
v Softline Ltd & Another
2001
(2) SA 844
(W).
[4]
AB
v JB
2016
(5) SA 211
(SCA)
at paras 16, 19 and 20
[5]
2010
SA 3
SA
220 GSJ AT para 41 and 233 F-G
[6]
(24953/2019)
[2020] ZAGPJHC 228;
[2021]
1 All SA 909
(GJ)
(16 September 2020)
[7]
2017
JDR 1059 (GJ),
[8]
In
2007 JDR 0247 (E)
[9]
1948
(1) SA 1186
(W) 1189
[10]
1955
(2) SA 682
(C)
at 688 D – E
[11]
1914
AD 21
[12]
1957
(2) SA 382
(D).
[13]
2017
JDR 1059 (GJ),
[14]
In
2007 JDR 0247 (E)
## [15]P
A F v S C F (788/2020) [2022] ZASCA 101; 2022 (6) SA 162 (SCA) (22
June 2022)
[15]
P
A F v S C F (788/2020) [2022] ZASCA 101; 2022 (6) SA 162 (SCA) (22
June 2022)
[16]
Reeder
v Softline Ltd & Another
2001
(2) SA 844
(W).
[17]
Reeder
v Softline Ltd & Another 2001(2) SA 844 (W)
[18]
Knox
D'Arcy Ltd. and Others v Jamieson and Others (283/95)
[1996]
ZASCA 58
;
[1996] ZASCA 58
;
1996
(4) SA 348
(SCA)
[1996] ZASCA 58
; ;
[1996]
3 All SA 669
(A);
(29 May 1996)
[19]
Knox
D'Arcy Ltd. and Others v Jamieson and Others (283/95)
[1996]
ZASCA 58
;
1996
(4) SA 348
(SCA)
[1996] ZASCA 58
; ;
[1996]
3 All SA 669
(A);
(29 May 1996)
[20]
2014
(2) SA 511 (GJ)
[21]
paragraph
11
[22]
paragraphs
12 and 13
[23]
paragraphs
17 and 18
[24]
paragraphs
24 and 25
[25]
paragraph
26
sino noindex
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