Morudi and Others v NC Housing Services and Development Co. Ltd and Others (1735/2014) [2016] ZANCHC 88 (5 February 2016)

Morudi and Others v NC Housing Services and Development Co. Ltd and Others (1735/2014) [2016] ZANCHC 88 (5 February 2016)

The court found that the applicants failed to provide a reasonable and acceptable explanation for their default, both under common law and Rule 42(1)(a). The first to fourth applicants acted as directors and lost standing when the company withdrew opposition. The fifth to seventy-first applicants did not take timely steps to protect their interests and failed to explain their default. The applicants did not establish a bona fide defence with prospects of success, as the resolution of 19 April 2013 validly settled the disputes and was not set aside. The argument that shares had not been issued was raised late and lacked credibility. Rule 42(1)(a) was not applicable as the applicants were...

Citation
[2016] ZANCHC 88
Parties
Applicant: Mosalasupring Phillip Morudi; Applicant: Further 70 Applicants (2nd to 71st Applicants); Respondent: NC Housing Services & Development Co. Ltd; Respondent: Scholtz Jacob Babuseng; Respondent: Seodi Julius Mongwaketsi
Court
Northern Cape High Court, Kimberley
Jurisdiction
South Africa
Judgment Date
5 February 2016
Case Number
1735/2014
Procedural Posture
Urgent Application / Application for Rescission of Order Made by Agreement; Consideration of Joinder and Confirmation of Rule Nisi
Outcome
Application for rescission dismissed; leave to intervene refused; rule nisi discharged; costs awarded as specified.
Judges
L. Lever
Legal Topics
Rescission of Judgment, Joinder of Parties, Shareholder Disputes, Rule 42 Uniform Rules, Locus Standi, Costs Orders
Civil Procedure Commercial and Corporate Rescission of Judgment Joinder of Parties Shareholder Disputes Rule 42 Uniform Rules Locus Standi Costs Orders

Case Brief

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Parties

Mosalasupring Phillip Morudi

Applicant

Further 70 Applicants (2nd to 71st Applicants)

Applicant

NC Housing Services & Development Co. Ltd

Respondent

Scholtz Jacob Babuseng

Respondent

Seodi Julius Mongwaketsi

Respondent

Procedural Posture

Urgent Application / Application for Rescission of Order Made by Agreement; Consideration of Joinder and Confirmation of Rule Nisi

Legal Issues

  1. 1 Whether the applicants have established sufficient cause for rescission of the order granted on 1 September 2014.
  2. 2 Whether the applicants acted in their personal or representative capacities in the main application.
  3. 3 Whether the fifth to seventy-first applicants should be joined to the main application.

Ratio Decidendi

The court found that the applicants failed to provide a reasonable and acceptable explanation for their default, both under common law and Rule 42(1)(a). The first to fourth applicants acted as directors and lost standing when the company withdrew opposition. The fifth to seventy-first applicants did not take timely steps to protect their interests and failed to explain their default. The applicants did not establish a bona fide defence with prospects of success, as the resolution of 19 April 2013 validly settled the disputes and was not set aside. The argument that shares had not been issued was raised late and lacked credibility. Rule 42(1)(a) was not applicable as the applicants were...

Court Disposition

Application for rescission dismissed; leave to intervene refused; rule nisi discharged; costs awarded as specified.

Orders

  • The application for rescission is dismissed.
  • Leave to intervene sought by the fifth to seventy first applicants is refused.