Pieters NO v Absa Bank Ltd (50865/2010) [2018] ZAGPJHC 711 (22 May 2018)

Pieters NO v Absa Bank Ltd (50865/2010) [2018] ZAGPJHC 711 (22 May 2018)

The court held that upon the Master issuing her certificate in terms of section 419(1) of the Companies Act, the company was completely wound up and the plaintiff had discharged all statutory duties and powers as liquidator. The Master’s subsequent re-instatement of the plaintiff was ultra vires, as the functus officio doctrine precluded the Master from revoking her earlier decision. The defendant was entitled to collaterally challenge the validity of the Master’s re-instatement, and the plaintiff lacked locus standi to institute the present action. Consequently, the defendant’s first special plea was upheld and the plaintiff’s action dismissed.

Citation
[2018] ZAGPJHC 711
Parties
Plaintiff: R Pieters N.O.; Defendant: ABSA Bank Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
22 May 2018
Case Number
50865/2010
Procedural Posture
Civil Procedure / Judgment on First Special Plea
Outcome
Defendant’s first special plea upheld; plaintiff’s action dismissed with costs, including costs of two counsel.
Judges
WHG van der Linde
Legal Topics
Locus Standi, Functus Officio, Company Winding Up, Liquidator Powers, Collateral Challenge, Companies Act 1973
Civil Procedure Commercial and Corporate Locus Standi Functus Officio Company Winding Up Liquidator Powers Collateral Challenge Companies Act 1973

Case Brief

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Parties

R Pieters N.O.

Plaintiff

ABSA Bank Ltd

Defendant

Procedural Posture

Civil Procedure / Judgment on First Special Plea

Legal Issues

  1. 1 Whether the plaintiff, as liquidator, retained locus standi to institute proceedings after the Master certified the company as completely wound up.
  2. 2 Whether the Master had the power to re-instate the plaintiff as liquidator after issuing the certificate of complete winding-up.
  3. 3 Whether the defendant could collaterally challenge the validity of the Master’s re-instatement of the liquidator.

Ratio Decidendi

The court held that upon the Master issuing her certificate in terms of section 419(1) of the Companies Act, the company was completely wound up and the plaintiff had discharged all statutory duties and powers as liquidator. The Master’s subsequent re-instatement of the plaintiff was ultra vires, as the functus officio doctrine precluded the Master from revoking her earlier decision. The defendant was entitled to collaterally challenge the validity of the Master’s re-instatement, and the plaintiff lacked locus standi to institute the present action. Consequently, the defendant’s first special plea was upheld and the plaintiff’s action dismissed.

Court Disposition

Defendant’s first special plea upheld; plaintiff’s action dismissed with costs, including costs of two counsel.

Orders

  • The defendant’s first special plea is upheld.
  • The plaintiff’s action is dismissed with costs, including the costs consequent upon the employment of two counsel.