Devine Property Development NPC and Another v Kgosihadi Trading and Projects CC and Others (2023/032999) [2025] ZAGPJHC 23 (17 January 2025)

Devine Property Development NPC and Another v Kgosihadi Trading and Projects CC and Others (2023/032999) [2025] ZAGPJHC 23 (17 January 2025)

On the undisputed facts, the property was purchased with funds contributed by members of the second applicant, and the first respondent was used solely as a temporary vehicle for registration. A verbal trust agreement existed, entitling the first applicant, upon its incorporation, to beneficial ownership and transfer of the property. The actions of the second and sixth respondents, including the purported sale of membership and attempts to frustrate transfer, were unlawful and opportunistic. The sixth respondent lacked locus standi, and his joinder was erroneously granted. The court found that the first applicant is entitled to a declarator of beneficial ownership and transfer of the...

Citation
[2025] ZAGPJHC 23
Parties
Applicant: Devine Property Development NPC; Applicant: Welgedacht Residential Club; Respondent: Kgosihadi Trading and Projects CC; Respondent: Malesela Morris Motimele; Respondent: Matsemela Krauses and Ngubeni Incorporated; Respondent: Registrar of Deeds: Johannesburg; Respondent: Companies and Intellectual Property Commission; Respondent: Manyawa Isaac Mokobi
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
17 January 2025
Case Number
2023/032999
Procedural Posture
Civil Application / Final Judgment
Outcome
Application granted. Declarator of beneficial ownership and transfer of property to first applicant, subject to compliance with specified conditions. Punitive costs awarded against first, second, and sixth respondents.
Judges
Marais
Legal Topics
Verbal Trust, Beneficial Ownership, Transfer of Immovable Property, Company Membership Register, Non Profit Company Compliance
Land and Property Commercial and Corporate Verbal Trust Beneficial Ownership Transfer of Immovable Property Company Membership Register Non Profit Company Compliance

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Parties

Devine Property Development NPC

Applicant

Welgedacht Residential Club

Applicant

Kgosihadi Trading and Projects CC

Respondent

Malesela Morris Motimele

Respondent

Matsemela Krauses and Ngubeni Incorporated

Respondent

Registrar of Deeds: Johannesburg

Respondent

Companies and Intellectual Property Commission

Respondent

Manyawa Isaac Mokobi

Respondent

Procedural Posture

Civil Application / Final Judgment

Legal Issues

  1. 1 Whether a verbal trust agreement existed between the second applicant and the first respondent regarding the property.
  2. 2 Whether the first applicant is entitled to beneficial ownership and transfer of the property.
  3. 3 Whether the actions of the second and sixth respondents deprived the applicants of their rights to the property.

Ratio Decidendi

On the undisputed facts, the property was purchased with funds contributed by members of the second applicant, and the first respondent was used solely as a temporary vehicle for registration. A verbal trust agreement existed, entitling the first applicant, upon its incorporation, to beneficial ownership and transfer of the property. The actions of the second and sixth respondents, including the purported sale of membership and attempts to frustrate transfer, were unlawful and opportunistic. The sixth respondent lacked locus standi, and his joinder was erroneously granted. The court found that the first applicant is entitled to a declarator of beneficial ownership and transfer of the...

Court Disposition

Application granted. Declarator of beneficial ownership and transfer of property to first applicant, subject to compliance with specified conditions. Punitive costs awarded against first, second, and sixth respondents.

Orders

  • It is declared that a verbal trust agreement existed between the second applicant and the first respondent regarding the property, with the first applicant as beneficiary.
  • The first applicant must compile a formal register of members under the Companies Act, 2008, listing all members of the second applicant who contributed to the purchase price, supported by signed applications for membership.