Nedbank Limited v Luvhomba Communications & Information Technology CC and Others; Nedbank Limited v Mzantsi Restaurants CC and Others; Nedbank Limited v Luvhomba Legal Edge CC and Others (48411/2013, 48412/2013, 48413/2013) [2018] ZAGPPHC 701 (5 March 2018)

Nedbank Limited v Luvhomba Communications & Information Technology CC and Others; Nedbank Limited v Mzantsi Restaurants CC and Others; Nedbank Limited v Luvhomba Legal Edge CC and Others (48411/2013, 48412/2013, 48413/2013) [2018] ZAGPPHC 701 (5 March 2018)

The court held that Mr. Mulaudzi, whose estate had been finally sequestrated, had no right or interest to represent the close corporations in litigation, as his members' interests vested in the trustee. No formal application for non-professional representation was made, and the cited case law did not support his...

Source-derived case information.

Citation
[2018] ZAGPPHC 701
Parties
Plaintiff: Nedbank Limited; Defendant: Luvhomba Communications & Information Technology CC; Defendant: Luvhomba Legal Edge CC; Defendant: Mulaudzi & Associates CC; Defendant: Gerendra CC; Defendant: Luvhomba Legal Care CC; Defendant: Mzantsi Restaurants CC; Defendant: Legae Le Monate Restaurant CC; Defendant: Luvhomba Projects & Construction CC; Defendant: Luvhomba Security Services & Patrol CC; Defendant: Luvhomba Legal Axe CC; Defendant: Luvhomba Financial Services CC; Defendant: Matthews Tuwani Mulaudzi
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
5 March 2018
Case Number
48411/2013, 48412/2013, 48413/2013
Procedural Posture
Civil Procedure / Default Judgment After Refusal of Non Professional Representation and Withdrawal of Defence
Outcome
Default judgment granted in favour of the plaintiff in all three cases; monetary awards, special executability of properties, repossession of vehicles, and costs ordered.
Judges
Millar
Legal Topics
Default Judgment, Suretyship, Overdraft Facility, Installment Sale Agreement, Mortgage Bond Enforcement
Civil Procedure Banking and Finance Default Judgment Suretyship Overdraft Facility Installment Sale Agreement Mortgage Bond Enforcement

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Parties

Nedbank Limited

Plaintiff

Luvhomba Communications & Information Technology CC

Defendant

Luvhomba Legal Edge CC

Defendant

Mulaudzi & Associates CC

Defendant

Gerendra CC

Defendant

Luvhomba Legal Care CC

Defendant

Mzantsi Restaurants CC

Defendant

Legae Le Monate Restaurant CC

Defendant

Luvhomba Projects & Construction CC

Defendant

Luvhomba Security Services & Patrol CC

Defendant

Luvhomba Legal Axe CC

Defendant

Luvhomba Financial Services CC

Defendant

Matthews Tuwani Mulaudzi

Defendant

Procedural Posture

Civil Procedure / Default Judgment After Refusal of Non Professional Representation and Withdrawal of Defence

Legal Issues

  1. 1 Whether Mr. Mulaudzi, as a sequestrated sole member, may represent the close corporations in court proceedings.
  2. 2 Whether the plaintiff has established its claims for monies owed under overdraft facilities and installment sale agreements.
  3. 3 Whether the mortgaged properties and vehicles are liable to be declared specially executable.

Ratio Decidendi

The court held that Mr. Mulaudzi, whose estate had been finally sequestrated, had no right or interest to represent the close corporations in litigation, as his members' interests vested in the trustee. No formal application for non-professional representation was made, and the cited case law did not support his position. The plaintiff established its claims through written agreements and mortgage bonds, and the absence of defence entitled the plaintiff to default judgment. The court granted the monetary claims, declared certain properties specially executable, and ordered repossession of vehicles, with some relief postponed pending valuation.

Court Disposition

Default judgment granted in favour of the plaintiff in all three cases; monetary awards, special executability of properties, repossession of vehicles, and costs ordered.

Orders

  • In case 48411/2013, defendants one to eleven are ordered jointly and severally to pay R2,940,008.59 plus interest and costs.
  • Immovable properties held by the second and third defendants in case 48411/2013 are declared specially executable.