Mutale v Lorcom Twenty Two CC t/a Lorcom Vehicle Accessories and Others (JS838/06, JS454/07) [2016] ZALCJHB 427 (9 November 2016)

Mutale v Lorcom Twenty Two CC t/a Lorcom Vehicle Accessories and Others (JS838/06, JS454/07) [2016] ZALCJHB 427 (9 November 2016)

The court found that the Applicant's employer became the Second Respondent by operation of section 197 of the LRA following the sale of the First Respondent as a going concern. The First Respondent's deregistration rendered it incapable of being sued. The Applicant failed to establish that the Fifth and Sixth respondents abused the Second Respondent's separate legal personality to defraud or mislead her. The Applicant had access to legal representation and should have pursued liquidation of the Second Respondent if it refused to settle the judgment debt. The court was not persuaded that another court might reasonably reach a different conclusion, and therefore dismissed the application...

Citation
[2016] ZALCJHB 427
Parties
Applicant: Constance Mutale; Respondent: Lorcom Twenty Two CC t/a Lorcom Vehicle Accessories; Respondent: Durafit Vehicle Accessories (Pty) Ltd; Respondent: Emily Zika Smith (now Skhosana); Respondent: Marco Behrtel; Respondent: Pieter Cornelis Nuata; Respondent: Abraham Wilhelm Nauta
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
9 November 2016
Case Number
JS838/06, JS454/07
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Dismissal of Original Application
Outcome
Application for leave to appeal dismissed with no order as to costs.
Judges
P Nkutha-Nkontwana
Legal Topics
Transfer of Business, Section 197 Lra, Lifting Corporate Veil, Leave to Appeal, Deregistration of Company
Labour Law Civil Procedure Transfer of Business Section 197 Lra Lifting Corporate Veil Leave to Appeal Deregistration of Company

Case Brief

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Parties

Constance Mutale

Applicant

Lorcom Twenty Two CC t/a Lorcom Vehicle Accessories

Respondent

Durafit Vehicle Accessories (Pty) Ltd

Respondent

Emily Zika Smith (now Skhosana)

Respondent

Marco Behrtel

Respondent

Pieter Cornelis Nuata

Respondent

Abraham Wilhelm Nauta

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Dismissal of Original Application

Legal Issues

  1. 1 Whether leave to appeal should be granted against the dismissal of the applicant's claim.
  2. 2 Whether the Second Respondent became the employer by operation of section 197 of the LRA.
  3. 3 Whether the Applicant can litigate against a deregistered company.

Ratio Decidendi

The court found that the Applicant's employer became the Second Respondent by operation of section 197 of the LRA following the sale of the First Respondent as a going concern. The First Respondent's deregistration rendered it incapable of being sued. The Applicant failed to establish that the Fifth and Sixth respondents abused the Second Respondent's separate legal personality to defraud or mislead her. The Applicant had access to legal representation and should have pursued liquidation of the Second Respondent if it refused to settle the judgment debt. The court was not persuaded that another court might reasonably reach a different conclusion, and therefore dismissed the application...

Court Disposition

Application for leave to appeal dismissed with no order as to costs.

Orders

  • The application for leave to appeal is dismissed with no order as to costs.