Ramalho N.O. and Others v Doubell N.O. and Others (74784/2013) [2014] ZAGPPHC 916 (5 November 2014)

Ramalho N.O. and Others v Doubell N.O. and Others (74784/2013) [2014] ZAGPPHC 916 (5 November 2014)

The court held that the relevant date for the commencement of liquidation of the Pension Fund is the date on which the Registrar of Pension Funds approves the appointment of the liquidator, as stipulated in Section 28(2) of the Pension Funds Act. The Employer was liquidated prior to this date. Therefore, in terms of Section 15I(c) of the Act, the surplus in the Employer Surplus Account must be distributed among the members of the Pension Fund, not paid to the Employer. The Applicants' argument that dissolution under the rules equates to liquidation under the Act was rejected. The application for interim relief was dismissed as the Applicants failed to establish a right to prevent the...

Citation
[2014] ZAGPPHC 916
Parties
Applicant: George Da Silva Ramalho N.O.; Applicant: Ahmed Hassan Jaffir N.O.; Applicant: Claude Neon Ltd (in liquidation); Respondent: Tommie Doubell N.O.; Respondent: Clause Neon Pension Fund (in liquidation); Respondent: The Registrar of Pension Funds; Respondent: The Financial Services Board; Respondent: David Clayton McMurray; Respondent: Leon Johan Venter; Respondent: Avril Colette Le Roux; Respondent: Joan Jennifer De Paiva; Respondent: Daniel Jacobus Barnard
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
5 November 2014
Case Number
74784/2013
Procedural Posture
Urgent Application / Application for Interim Relief
Outcome
Application dismissed with costs.
Judges
N Davis
Legal Topics
Pension Funds Act, Liquidation Priority, Interim Relief, Employer Surplus Account
Civil Procedure Banking and Finance Pension Funds Act Liquidation Priority Interim Relief Employer Surplus Account

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Parties

George Da Silva Ramalho N.O.

Applicant

Ahmed Hassan Jaffir N.O.

Applicant

Claude Neon Ltd (in liquidation)

Applicant

Tommie Doubell N.O.

Respondent

Clause Neon Pension Fund (in liquidation)

Respondent

The Registrar of Pension Funds

Respondent

The Financial Services Board

Respondent

David Clayton McMurray

Respondent

Leon Johan Venter

Respondent

Avril Colette Le Roux

Respondent

Joan Jennifer De Paiva

Respondent

Daniel Jacobus Barnard

Respondent

Procedural Posture

Urgent Application / Application for Interim Relief

Legal Issues

  1. 1 Whether the Employer was liquidated before the commencement of the liquidation of the Pension Fund.
  2. 2 Whether Section 15I(c) of the Pension Funds Act applies to the distribution of the Employer Surplus Account.
  3. 3 Whether the Applicants are entitled to interim relief preventing pay-out pending further proceedings.

Ratio Decidendi

The court held that the relevant date for the commencement of liquidation of the Pension Fund is the date on which the Registrar of Pension Funds approves the appointment of the liquidator, as stipulated in Section 28(2) of the Pension Funds Act. The Employer was liquidated prior to this date. Therefore, in terms of Section 15I(c) of the Act, the surplus in the Employer Surplus Account must be distributed among the members of the Pension Fund, not paid to the Employer. The Applicants' argument that dissolution under the rules equates to liquidation under the Act was rejected. The application for interim relief was dismissed as the Applicants failed to establish a right to prevent the...

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.