Charlene Goodman (Pty) Limited and Another v The Acting Sheriff for the District of East London and Others (3009/2021) [2022] ZAECMKHC 66 (27 September 2022)

Charlene Goodman (Pty) Limited and Another v The Acting Sheriff for the District of East London and Others (3009/2021) [2022] ZAECMKHC 66 (27 September 2022)

The court found that Ms Ndwe, as the sole director of the first applicant, was properly authorised to act on its behalf. The resolution relied upon by the second respondent was dated after the relevant proceedings and was therefore invalid and of no force or effect. The intervention application by Mr Matsoso and Mr Mvula was dismissed as they failed to demonstrate a direct and substantial interest in the current proceedings, and their intended actions related to internal company affairs that were not relevant to the application before the court. The writ of execution and notice of attachment were set aside as they were issued without proper authority. The conduct of the second respondent...

Citation
[2022] ZAECMKHC 66
Parties
Applicant: Charlene Goodman (Pty) Limited; Applicant: Y Mkaza CC; Respondent: The Acting Sheriff for the District of East London; Respondent: Venfolo Lingani Incorporated; Respondent: The Standard Bank of South Africa Limited
Court
Eastern Cape High Court, Makhanda
Jurisdiction
South Africa
Judgment Date
27 September 2022
Case Number
3009/2021
Procedural Posture
Urgent Application / Final Order After Opposed Application and Intervention Attempt
Outcome
Application granted; intervention application dismissed; writ of execution and notice of attachment set aside; punitive costs order against second respondent.
Judges
Smith
Legal Topics
Authority of Director, Setting Aside Writ of Execution, Joinder Application, Fraudulent Resolution
Civil Procedure Commercial and Corporate Authority of Director Setting Aside Writ of Execution Joinder Application Fraudulent Resolution

Case Brief

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Parties

Charlene Goodman (Pty) Limited

Applicant

Y Mkaza CC

Applicant

The Acting Sheriff for the District of East London

Respondent

Venfolo Lingani Incorporated

Respondent

The Standard Bank of South Africa Limited

Respondent

Procedural Posture

Urgent Application / Final Order After Opposed Application and Intervention Attempt

Legal Issues

  1. 1 Whether the first applicant's director had authority to act on behalf of the company in these proceedings.
  2. 2 Whether the second respondent was validly authorised to act on behalf of the first applicant.
  3. 3 Whether the writ of execution and notice of attachment should be set aside.

Ratio Decidendi

The court found that Ms Ndwe, as the sole director of the first applicant, was properly authorised to act on its behalf. The resolution relied upon by the second respondent was dated after the relevant proceedings and was therefore invalid and of no force or effect. The intervention application by Mr Matsoso and Mr Mvula was dismissed as they failed to demonstrate a direct and substantial interest in the current proceedings, and their intended actions related to internal company affairs that were not relevant to the application before the court. The writ of execution and notice of attachment were set aside as they were issued without proper authority. The conduct of the second respondent...

Court Disposition

Application granted; intervention application dismissed; writ of execution and notice of attachment set aside; punitive costs order against second respondent.

Orders

  • The intervention application is dismissed with costs.
  • The writ of execution dated 18 July 2022 and the notice of attachment dated 17 August 2022 are set aside.