Codix Trust and Others v Stockowners Co-Operative (in liquidation) and Others (AR438/2012) [2013] ZAKZPHC 65; [2014] 1 All SA 342 (KZP) (10 December 2013)

Codix Trust and Others v Stockowners Co-Operative (in liquidation) and Others (AR438/2012) [2013] ZAKZPHC 65; [2014] 1 All SA 342 (KZP) (10 December 2013)

Section 215 of the Co-Operatives Act applies only to claims for a liquidated amount in money, not to unliquidated or declaratory claims. The relief sought by the appellants is declaratory in nature and does not fall within the ambit of section 215. The obligation to give notice to the liquidator under section 215 is an administrative provision for the convenience of the liquidator and applies only to money claims. The appellants were not required to plead and prove compliance with section 215 as a condition precedent to instituting their action. The exception upheld by the court a quo was not definitive of the cause of action and should not have barred the appellants' access to justice....

Citation
[2013] ZAKZPHC 65
Parties
Appellant: Codix Trust; Appellant: Johannes Jacobus Dicks N.O.; Appellant: Leone Dicks N.O.; Respondent: Stockowners Co-Operative (in liquidation); Respondent: Brian Kurz N.O.; Respondent: Andries Geyser N.O.; Respondent: Lebogang Morake N.O.; Respondent: Ralph Luchman N.O.
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
10 December 2013
Case Number
AR438/2012
Procedural Posture
Civil Appeal / Appeal Against Exception Upheld by Court a Quo
Outcome
Appeal upheld; exception set aside; costs awarded to appellants.
Judges
Madondo, Kruger, Chili
Legal Topics
Exception to Pleadings, Liquidation Procedure, Declaratory Relief, Statutory Compliance, Co Operatives Act Interpretation
Civil Procedure Commercial and Corporate Exception to Pleadings Liquidation Procedure Declaratory Relief Statutory Compliance Co Operatives Act Interpretation

Case Brief

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Parties

Codix Trust

Appellant

Johannes Jacobus Dicks N.O.

Appellant

Leone Dicks N.O.

Appellant

Stockowners Co-Operative (in liquidation)

Respondent

Brian Kurz N.O.

Respondent

Andries Geyser N.O.

Respondent

Lebogang Morake N.O.

Respondent

Ralph Luchman N.O.

Respondent

Procedural Posture

Civil Appeal / Appeal Against Exception Upheld by Court a Quo

Legal Issues

  1. 1 Whether section 215 of the Co-Operatives Act requires the appellants to plead and prove compliance as a condition precedent to instituting proceedings.
  2. 2 Whether failure to give notice under section 215(1) and (5) is an essential ingredient of the cause of action.

Ratio Decidendi

Section 215 of the Co-Operatives Act applies only to claims for a liquidated amount in money, not to unliquidated or declaratory claims. The relief sought by the appellants is declaratory in nature and does not fall within the ambit of section 215. The obligation to give notice to the liquidator under section 215 is an administrative provision for the convenience of the liquidator and applies only to money claims. The appellants were not required to plead and prove compliance with section 215 as a condition precedent to instituting their action. The exception upheld by the court a quo was not definitive of the cause of action and should not have barred the appellants' access to justice....

Court Disposition

Appeal upheld; exception set aside; costs awarded to appellants.

Orders

  • The appeal is upheld.
  • The order by the court a quo upholding the exception is set aside.