Mahlangu v Mahlangu and Another (1339/2020) [2020] ZAMPMHC 5 (14 May 2020)
- Citation
- [2020] ZAMPMHC 5
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Middelburg High Court, Mpumalanga
- Panel
- Brauckmann
- Case number
- 1339/2020
More details
- Court
- Middelburg High Court, Mpumalanga
- Panel
- Brauckmann
- Case number
- 1339/2020
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court held that Moremadi S Golden Projects CC, as the holder of the bank account and the entity whose funds are in dispute, has a direct and substantial interest in the relief sought. The failure to join the CC as a party is a procedural defect that cannot be ignored. The court may not grant an order affecting the rights of a party who has not been afforded an opportunity to be heard. The defect is not fatal and may be rectified by joining the CC, but until such joinder occurs, the application cannot proceed. Accordingly, the application was struck off the roll.
Court disposition
Application struck off the roll due to non-joinder of a necessary party.
Orders
- The application is struck off.
02
Material facts
Parties
Boykie John Mahlangu
Applicant Counsel: Mohube SetsoaloSeganabo Gratitude Mahlangu
RespondentFirst National Bank
RespondentAmounts and remedies
- Amount Transferred to First Respondent's Personal Account: ZAR 258,500
03
Procedural history
Posture
Urgent Application / Ex Parte Application for Interim Relief
04
Questions and positions
Legal issues
- 01
Whether the application can be granted in the absence of the close corporation (CC) as a party.
- 02
Whether the failure to join the CC is fatal to the application.
- 03
Whether the applicant is entitled to interim relief to freeze funds allegedly belonging to the CC.
Party arguments
- Applicant
- The applicant contended that funds held in the bank account of Moremadi S Golden Projects CC were transferred by the first respondent to her personal account and sought an order freezing the amount until the application is finalized. The applicant argued that the funds belong to the CC and that urgent relief is necessary to prevent dissipation.
- Respondent
- The respondents did not file opposing papers, but the court noted that the CC, which holds the bank account in question, was not joined as a party. The absence of the CC raised concerns about the propriety of granting relief without affording the CC an opportunity to be heard.
05
Court’s reasoning
Legal principles
- 01
SA Riding for the Disabled Association v Regional Land Claims Commissioner 2017 (5) SA 1 (CC) at 5A–D
No order should be granted against a party without affording such party a predecision hearing; a party with a direct and substantial interest must be joined.
- 02
Greyvenouw CC, cited in SA Riding for the Disabled Association v Regional Land Claims Commissioner 2017 (5) SA 1 (CC)
Where an applicant for intervention shows a direct and substantial interest in the subject-matter, the court must allow intervention and should not proceed in the absence of such parties.
06
Ratio, limits and disposition
Ratio decidendi
The court held that Moremadi S Golden Projects CC, as the holder of the bank account and the entity whose funds are in dispute, has a direct and substantial interest in the relief sought. The failure to join the CC as a party is a procedural defect that cannot be ignored. The court may not grant an order affecting the rights of a party who has not been afforded an opportunity to be heard. The defect is not fatal and may be rectified by joining the CC, but until such joinder occurs, the application cannot proceed. Accordingly, the application was struck off the roll.
Obiter and limits
- The Mpumananzi Group may also have an interest in the litigation, as suggested in the founding affidavit.
- A court is entitled mero motu to raise the question of non-joinder to safeguard the interests of third parties.
Court disposition
Application struck off the roll due to non-joinder of a necessary party.
- The application is struck off.
Source and reliance status
Middelburg High Court, Mpumalanga
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Middelburg High Court, Mpumalanga
Judgment
IN THE HIGH COURT OF
SOUTH AFRICA
MPUMALANGA DIVISION, MIDDELBURG (LOCAL SEAT)
CASE NO: 1339/2020
ON 14 MAY 2020
BEFORE:
BRAUCKMANN AJ
In the matter between:-
BOYKIE
JOHN
MAHLANGU APPLICANT
AND
SEGANABO
GRATITUDE MAHLANGU FIRST
RESPONDENT
FIRST
NATIONAL
BANK SECOND
RESPONDENT
JUDGMENT
1. This is an ex parte application for certain relief, including the “freezing” of bank accounts held by Moremadi S Golden Projects CC CK 2009/033O71/23 (“The CC”).
2. Applicant, although he alleges that the funds he requests the Court to freeze belongs to the CC, failed to join the CC. The only parties are the members of the CC, as well as the bank (Second Respondent.
3. It is evident from the papers, and annexures thereto, that the bank account is held by the CC with second respondent. In the founding affidavit, the applicant states that R 258500.00 was transferred by first respondent to her personal account, and one of the prayers seeks freezing of the amount until the application is finalized.
4. From the founding affidavit it is clear that the CC has a direct and substantial interest in the application, but is not a party hereto. Failure to join an interested party is sometimes a fatal shortcoming, but the Court may in any event not grant an order in the absence of such party[1] It is interesting to note that in paragraph 1.2 of the founding affidavit it appears that “the Mpumananzi Group” might also have an interest in the present litigation.
5. A court, including a court of appeal, is entitled mero motu to raise the question of non-joinder to safeguard the interests of third parties. It is, however, important to distinguish between necessary joinder, where the failure to join a party amounted to a non-joinder, on the one hand, and joinder as a matter of convenience, where the joinder of the party was permissible and would not give rise to misjoinder, on the other hand. In cases of joinder of necessity a court could, even on appeal, mero motu raise the question of joinder to safeguard the interests of third parties and decline to hear a matter until such joinder had been effected or the court was satisfied that the third parties had consented to be bound by the judgment or waived their right to be joined.
6. The CC did not waive its right to be joined. The applicant might be so entitled to bring this application, but that does not mean that the CC should simply be ignored.
7. I am of the view that the CC is a necessary party, and should be joined. Failure to join the CC is not fatal in casu, and may be rectified by joining it.
8. Accordingly I make the following order:
The application is struck off.
_______
HF BRAUCKMANN
ACTING JUDGE
APPLICANT ATTORNEYS’s : Mohube Setsoalo
[1] “SA Riding for the Disabled Association v Regional Land Claims Commissioner: 2017 (5) SA 1 (CC) at 5A–D ‘[10] If the applicant shows that it has some right which is affected by the order issued, permission to intervene must be granted. For it is a basic principle of our law that no order should be granted against a party without affording such party a predecision hearing. This is so fundamental that an order is generally taken to be binding only on parties to the litigation. [11] Once the applicant for intervention shows a direct and substantial interest in the subject-matter of the case, the court ought to grant leave to intervene. In Greyvenouw CC this principle was formulated in these terms: “In addition, when, as in this matter, the applicants base their claim to intervene on a direct and substantial interest in the subject-matter of the dispute, the Court has no discretion: it must allow them to intervene because it should not proceed in the absence of parties having such legally recognised interests.” ’
[1] “SA Riding for the Disabled Association v Regional Land Claims Commissioner: 2017 (5) SA 1 (CC) at 5A–D
‘[10] If the applicant shows that it has some right which is affected by the order issued, permission to intervene must be granted. For it is a basic principle of our law that no order should be granted against a party without affording such party a predecision hearing. This is so fundamental that an order is generally taken to be binding only on parties to the litigation.
[11] Once the applicant for intervention shows a direct and substantial interest in the subject-matter of the case, the court ought to grant leave to intervene. In Greyvenouw CC this principle was formulated in these terms:
“In addition, when, as in this matter, the applicants base their claim to intervene on a direct and substantial interest in the subject-matter of the dispute, the Court has no discretion: it must allow them to intervene because it should not proceed in the absence of parties having such legally recognised interests.” ’
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