Regiments Fund Managers (Pty) Ltd and Others v Nel NO and Another (2022-007672) [2023] ZAGPJHC 1420 (1 December 2023)

Regiments Fund Managers (Pty) Ltd and Others v Nel NO and Another (2022-007672) [2023] ZAGPJHC 1420 (1 December 2023)

The court found that the applicants, by virtue of the restraint order issued under POCA, have been divested of all powers over their property, including the power to institute legal proceedings and appoint attorneys. The board resolutions passed by the applicants' directors to bring the application and appoint attorneys constitute 'dealing in' the property, which is expressly prohibited by the order. Only the curator is entitled to deal in the property and commence litigation on behalf of the applicants. As a result, the applicants lack locus standi to bring the application, rendering the proceedings invalid. The application was therefore dismissed without consideration of the merits...

Citation
[2023] ZAGPJHC 1420
Parties
Applicant: Regiments Fund Managers (Pty) Ltd; Applicant: Regiments Securities (Pty) Ltd; Applicant: Ash Brook Investments 15 (Pty) Ltd; Applicant: Coral Lagoon Investments 194 (Pty) Ltd; Respondent: Eugene Nel N.O.; Respondent: The National Director of Public Prosecutions
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
1 December 2023
Case Number
2022-007672
Procedural Posture
Urgent Application / Application for Declaratory Relief Regarding Curator's Powers and Locus Standi
Outcome
Application dismissed for lack of locus standi.
Judges
Vally
Legal Topics
Locus Standi, Curatorship, Restraint of Property, Companies Act Section 66, Prevention of Organised Crime Act
Civil Procedure Commercial and Corporate Locus Standi Curatorship Restraint of Property Companies Act Section 66 Prevention of Organised Crime Act

Case Brief

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Parties

Regiments Fund Managers (Pty) Ltd

Applicant

Regiments Securities (Pty) Ltd

Applicant

Ash Brook Investments 15 (Pty) Ltd

Applicant

Coral Lagoon Investments 194 (Pty) Ltd

Applicant

Eugene Nel N.O.

Respondent

The National Director of Public Prosecutions

Respondent

Procedural Posture

Urgent Application / Application for Declaratory Relief Regarding Curator's Powers and Locus Standi

Legal Issues

  1. 1 Whether the applicants have locus standi to bring the application under the restraint order.
  2. 2 Whether the curator is entitled to pay litigation costs relating to restrained assets under the terms of the order.
  3. 3 Whether the applicants' board resolutions to institute proceedings and appoint attorneys are valid under the restraint.

Ratio Decidendi

The court found that the applicants, by virtue of the restraint order issued under POCA, have been divested of all powers over their property, including the power to institute legal proceedings and appoint attorneys. The board resolutions passed by the applicants' directors to bring the application and appoint attorneys constitute 'dealing in' the property, which is expressly prohibited by the order. Only the curator is entitled to deal in the property and commence litigation on behalf of the applicants. As a result, the applicants lack locus standi to bring the application, rendering the proceedings invalid. The application was therefore dismissed without consideration of the merits...

Court Disposition

Application dismissed for lack of locus standi.

Orders

  • The application is dismissed.
  • The applicants are to jointly and severally pay the costs of the application, the one paying the other to be absolved.