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South Africa Judgment

North Gauteng High Court, Pretoria

Ellison v Breytenbach N.O and Another (A278/2022) [2025] ZAGPPHC 565 (5 June 2025)

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01

Holding and result

The court held that the Kollapen order did not constitute a new South African sequestration order but rather recognised the UK bankruptcy and empowered the first respondent to administer the appellant's South African assets. The appellant remained an undischarged bankrupt in the UK, and the findings of Kollapen J were res iudicata before Collis J. The court a quo had no jurisdiction to reinterpret or vary the Kollapen order, and the appellant's contentions regarding rehabilitation and the effect of time were without merit. The appeal was dismissed as there was no basis to overturn the eviction order or the dismissal of the counterclaim.

Court disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.

02

Material facts

Parties

Clive Malcom Ellison

Appellant Counsel: Adv CB Ellis

Marthinus Jacobus Dewald Breytenbach NO

Respondent Counsel: Adv DJ Groenewald

Richard Hicken NO

Respondent

03

Procedural history

  1. Posture

    Civil Appeal / Appeal Against Eviction Order and Dismissal of Counterclaim

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellant argued that the Kollapen order effectively granted a sequestration order under South African law, entitling him to rehabilitation after a period of time. He further contended that he had become rehabilitated due to the passage of time and that the order should be interpreted to allow him to retain possession of the property.
Respondent
The respondents maintained that the Kollapen order merely recognised the UK bankruptcy and empowered the first respondent to administer the South African assets as trustee. They argued that no new South African insolvency order was granted, the appellant remained an undischarged bankrupt in the UK, and the findings of Kollapen J were res iudicata. They submitted that the court a quo had no jurisdiction to revisit or reinterpret the Kollapen order.

05

Court’s reasoning

  1. 01

    Ex Parte Palmer NO: In re Hahn 1993(3) SA 359 (C)

    Immovable property of an insolvent is governed by the law of its location, and a South African court may permit a foreign trustee to administer such property based on comity and convenience.

  2. 02

    Lagoon Beach Hotel v Lehane 2016 (3) SA 143 (SA)

    Recognition of a foreign trustee to deal with an insolvent's immovable property in South Africa is at the absolute discretion of the local court, exercised on the basis of comity and convenience.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the Kollapen order did not constitute a new South African sequestration order but rather recognised the UK bankruptcy and empowered the first respondent to administer the appellant's South African assets. The appellant remained an undischarged bankrupt in the UK, and the findings of Kollapen J were res iudicata before Collis J. The court a quo had no jurisdiction to reinterpret or vary the Kollapen order, and the appellant's contentions regarding rehabilitation and the effect of time were without merit. The appeal was dismissed as there was no basis to overturn the eviction order or the dismissal of the counterclaim.

Obiter and limits

  • The application before Collis J was not the appropriate forum to address any perceived ambiguity in the Kollapen order, of which there was none.
  • The discretion to recognise foreign insolvency orders is absolute and exercised on the basis of comity and convenience.

Court disposition

Appeal dismissed with costs.

  • The appeal is dismissed with costs.

Source and reliance status

North Gauteng High Court, Pretoria

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Judgment text

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Source document

North Gauteng High Court, Pretoria

Judgment

[2025] ZAGPPHC 565

SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this document in compliance with the law and SAFLII Policy

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION,

PRETORIA

CASE NO.:A278/2022

(1) REPORTABLE: YES/NO

(2) OF INTEREST TO OTHER JUDGES: YES/NO

(3) REVISED.

05/06/2025

In the matter between:

CLIVE MALCOM ELLISON

Appellant

and

MARTHINUS JACOBUS DEWALD

BREYTENBACH First Respondent

NO

RICHARD HICKEN NO

Second Respondent

JUDGMENT

Van der Westhuizen, J

[1] The appellant appealed the whole judgment and order by Collis J delivered on 17 June 2022 in an application for the eviction of the appellant from the property occupied by the appellant. In her judgment Collis J held that the appellant be evicted from the property known as 2[...] D[...] Road Waterkloof, Pretoria, and that the appellant’s counterclaim stood to be dismissed.

[2] The said application before Collis J followed on an order on 12 April 2018 by Kollapen J as he then was, which acknowledged an order granted by the Deputy Registrar Schaffer of the High Court of Justice in Bankruptcy (UK) on 4 October 2000. In the latter order the appellant was held to be bankrupt. Kollapen J further recognised the appointment of the first respondent as trustee of the appellant’s insolvent estate. The second respondent was the trustee appointed in the UK.

[3] Following investigations in South Africa, the first respondent obtained information that the appellant owned property situated in South Africa that fell within his insolvent estate. That information led to the launch of the application before Kollapen J. The order granted by Kollapen J entitled the first respondent to administer the assets of the appellant within South Africa in terms of the South African Insolvency Act (the Kollapen order).

[4] It is to be noted that the appellant has not yet been rehabilitated in the UK and that he remains an undischarged bankrupt there, and following on the Kollapen order, in South Africa as well.

[5] There was no appeal against the order of Kollapen J.

[6] In the application before Collis, J., the appellant contended that the effect of the Kollapen order amounted to the granting of a sequestration order against the appellant in terms of the South African Insolvency Act. Presumably this contention by the appellant was derived from the wording of the Kollapen order where it stated “Entitling the applicant (first respondent) to administer the first respondent (the appellant) as if a sequestration order had been granted against him by a South African court.”

[7] In my view, there is no merit in the appellant’s contention in that regard. The order by Kollapen J is clear, and there is no ambiguity. Primarily the bankruptcy order of the UK was acknowledged and the empowerment of the first respondent followed consequentially. No “new” insolvency order in terms of the South African Insolvency law was granted.

[8] Furthermore, the application before Collis J was not the forum to address any possible ambiguity in the Kollapen order, of which there is none.

[9] In respect of the principles applicable to orders of foreign jurisdictions, Ex Parte Palmer NO: In re Hahn 1993(3) SA 359 (C) held as follows:

“The point is clearly made in the judgment in the Stegman case that immovable property of an insolvent is governed by the lex rei sitae and inasmuch as his movable property is concerned by the law of his domicile, it is a matter of convenience that a court in whose jurisdiction the insolvent’s immovable property lies, in the exercise of its discretion, permit all the property of the insolvent situate within in its jurisdiction, whether it be movable or immovable, to be administered by a foreign trustee appointed pursuant to a sequestration order issued by the Court of the insolvent’s domicile, who would as a matter of law, have the authority and power to deal with immovable property of the insolvent.” (my underlining).

[10] The Supreme Court of Appeal in Lagoon Beach Hotel v Lehane 2016 (3) SA 143 (SA) endorsed the Palmer dictum.

[11] The Supreme Court of Appeal further held as follows:

“As pointed out above, the grant of recognition to a foreign trustee to deal with an insolvent’s immovable property in South Africa is a matter for the local Court’s discretion. The discretion is absolute. It is exercised on the basis of comity and convenience.”

[12] From the foregoing it is clear that the order of Kollapen J was appropriate in the exercise of his absolute discretion and which order remains in force until set aside by a competent court. That has not occurred. Consequently, the Kollapen order was binding upon Collis J. All that Collis J was requested by the appellant to do, was to apply a different interpretation to the Kollapen order, albeit in terms of the counter application by the appellant.

[13] The appellant contended that due to the effluxion of time, he became rehabilitated. There is no merit in that contention. An order was granted in the UK which held that the period of discharge of the bankruptcy order was suspended and consequently the appellant remained bankrupt as at the time of the Kollapen order.

[14] In the foregoing, the findings of Kollapen J were res iudicata before Collis J. The court a quo had no jurisdiction to entertain an apparent appeal to that order, albeit in the form of applying a different interpretation thereof, and consequently correctly refused to entertain such.

[15] It follows that there is no merit in this appeal and it stands to be dismissed.

[16] Accordingly, I propose the following order:

The appeal is dismissed with costs.

C

J VAN DER WESTHUIZEN

JUDGE OF THE HIGH COURT

I agree and it is so ordered

N DAVIS

I agree

N G M MAZIBUKU

On behalf of Applicant: Adv CB Ellis Instructed by: Jacobson & Levy Inc. On behalf of Respondent: Adv DJ Groenewald Instructed by: Serfontein Viljoen & Swart Attorneys Date of Hearing: 19 February 2025 Judgment Delivered: 05 June 2025

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Ex Parte Palmer NO: In re Hahn 1993(3) SA 359 (C)

Case cited

Lagoon Beach Hotel v Lehane 2016 (3) SA 143 (SA)

Case cited

Insolvency Act 24 of 1936

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