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South Africa Judgment

North Gauteng High Court, Pretoria

Luvon Investments (Pty) Ltd and Another v Thabong Good Health Pharmacy CC (Leave to Appeal) (2023-033874) [2024] ZAGPPHC 1063 (23 October 2024)

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01

Holding and result

The court held that the respondent is not entitled to seek leave to appeal on grounds that were not pleaded in the original proceedings. The respondent's counsel conceded that the grounds for leave to appeal were not raised previously, and the applicants were not given an opportunity to address these new issues. Accordingly, the application for leave to appeal was dismissed.

Court disposition

Application for leave to appeal dismissed.

Orders

  • The application for leave to appeal is dismissed.
  • Costs are in the winding-up.

02

Material facts

Parties

Luvon Investments (Pty) Ltd

Applicant Counsel: Mr JMT Tlokana

Twin City Trading (Pty) Ltd

Applicant Counsel: Mr JMT Tlokana

Thabong Good Health Pharmacy CC

Respondent Counsel: Mr H P Wessels

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Final Winding Up Order

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the respondent is not permitted to seek leave to appeal on new issues that were not raised in the original proceedings, as they were not afforded an opportunity to address these issues. They maintained that all procedural requirements were met and the respondent's indebtedness was established.
Respondent
The respondent contended that the final winding-up order should not have been granted because the applicants allegedly failed to comply with section 346(4A)(a) and (b) of the Companies Act, 61 of 1973, and did not prove the respondent's indebtedness or inability to pay debts. However, counsel for the respondent conceded that these grounds were not pleaded in the original proceedings.

05

Court’s reasoning

  1. 01

    General principle of South African civil procedure

    A party may not seek leave to appeal on grounds that were not raised in the original proceedings, as this deprives the opposing party of the opportunity to address such issues.

  2. 02

    Companies Act, 61 of 1973

    Compliance with section 346(4A)(a) and (b) of the Companies Act, 61 of 1973 is required for a winding-up application, including proper service and proof of indebtedness.

06

Ratio, limits and disposition

Ratio decidendi

The court held that the respondent is not entitled to seek leave to appeal on grounds that were not pleaded in the original proceedings. The respondent's counsel conceded that the grounds for leave to appeal were not raised previously, and the applicants were not given an opportunity to address these new issues. Accordingly, the application for leave to appeal was dismissed.

Obiter and limits

  • The respondent did not file papers in relation to the return date for the final winding-up order.
  • Costs are to be included in the winding-up proceedings.

Court disposition

Application for leave to appeal dismissed.

  • The application for leave to appeal is dismissed.
  • Costs are in the winding-up.

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

[2024] ZAGPPHC 1063

REPUBLIC

OF SOUTH AFRICA

IN

THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION,

PRETORIA

Case No: 2023 - 033874

Reportable: No

Of interest to other Judges: No

Revised: No

SIGNATURE

Date: 23/10/2024

In the matter between:

LUVON INVESTMENTS (PTY)

LTD

First Applicant

TWIN CITY TRADING (PTY)

LTD

Second Applicant

and

THABONG GOOD HEALTH

PHARMACY CC

Respondent

JUDGEMENT - APPLICATION FOR LEAVE TO APPEAL

MOOKI J

1

The respondent was placed under provisional winding-up on 22 February 2024. The return date to consider whether the order be made final was set for 27 May 2024. The court granted a final winding-up order on 27 May 2024.

2

The respondent seeks leave to appeal the order of 27 May 2024. The application is made on the following grounds. The respondent contends that a final order ought not to have been granted because:

2.1 The applicants did not comply with section 346 (4A) (a) and (b) of the Companies Act, 61 of 1973; and

2.2 The applicants had failed to prove the respondent’s indebtedness, or that amounts were due or payable, or show the respondent’s inability to pay debts.

3

The respondent filed opposing papers in proceedings leading to the order on 22 February 2024. The respondent did not file papers in relation to the return date.

4

Counsel for the respondent accepted that the listed grounds for the application were not pleaded. Counsel for the applicants submitted that the respondent is not permitted to make an application on new issues, because the applicants never had the opportunity to address the new issues.

5

I agree that the respondent may not seek leave on issues that were never raised.

6

I make the following order:

6.1 The application for leave to appeal is dismissed.

6.2 Costs are in the winding-up.

O

MOOKI

JUDGE

OF THE HIGH COURT

GAUTENG DIVISION, PRETORIA

Counsel for the applicant (leave to appeal): Mr JMT Tlokana Instructed by: Ngengebule Attorneys Inc. Counsel for the respondents (leave to appeal) Mr H P Wessels Instructed by: Van Der Merwe & Associates Heard: 21 October 2024 Delivered: 23 October 2024

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Authorities

Authorities used by the court

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

Companies Act, 61 of 1973

Legislation

Legislation referenced in the available case record.

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