Langlaagte Truck and Car CC v 8 Mile Investments 539 (Pty) Ltd and Others (2024/007632) [2025] ZAGPJHC 803 (14 August 2025)

40 Reportability

Brief Summary

Appeal — Leave to appeal — Grounds for leave to appeal — Appellant's dissatisfaction with reinstatement order of deregistered company — Appellant lacked locus standi due to own failure to prevent deregistration — Court found no reasonable prospect of success for appeal. The first respondent's corporate activities were reinstated retrospectively, resulting in the transfer of property to the applicant after it became bona vacantia. The second respondent, as the sole director of the first respondent, appealed the order, claiming illegal corporate activity and seeking to expunge the applicant's name from the title deed. The legal issue was whether the second respondent had standing to challenge the reinstatement and the validity of the property transfer, given his role in the deregistration of the first respondent. The court held that the second respondent lacked locus standi to contest the reinstatement and the property transfer, as he could have prevented the deregistration. The application for leave to appeal was dismissed, with costs awarded against the appellant.

Comprehensive Summary

Case Note


Langlaagte Truck and Car CC v 8 Mile Investments 539 (Pty) Ltd & Others

Case Number: 2024-007632

Date: 14 August 2025


Reportability


This case is significant as it addresses the complexities surrounding the reinstatement of a deregistered company and the implications of corporate actions taken during that period. The judgment clarifies the legal standing of parties involved in disputes over property ownership following a company's deregistration, emphasizing the need for proper legal processes to be followed. Although the case is not reportable, it provides valuable insights into the application of corporate law and the protection of bona fide purchasers.


Cases Cited



  • Newlands Surgical Clinic v Peninsula Eye Clinic [2015] ZASCA 25


Legislation Cited



  • Section 83(4) of the Companies Act


Rules of Court Cited



  • Rule 46 of the Uniform Rules of Court


HEADNOTE


Summary


The case revolves around an application for leave to appeal by Bradley Trent Jones, the sole director of a deregistered company, against a court order that reinstated the company and validated its corporate activities retrospectively. The court found that the appellant lacked the legal standing to challenge the reinstatement and the associated property transfer, as he had caused the deregistration of the company.


Key Issues


The key legal issues addressed in this case include the validity of corporate actions taken during a company's deregistration, the standing of parties to challenge such actions, and the implications of alleged illegal corporate activities on property ownership.


Held


The court held that the appeal had no reasonable prospect of success and dismissed the application for leave to appeal, ordering the appellant to pay the costs of the application.


THE FACTS


The case originated from a motion hearing where the court reinstated 8 Mile Investments 539 (Pty) Ltd, which had been deregistered due to the appellant's failure to submit annual returns. The reinstatement order included provisions for the retrospective validity of the company's corporate activities and the automatic revesting of its assets. The appellant, dissatisfied with the outcome, sought to appeal the decision, arguing that the corporate activities were illegal and that he should be recognized as the rightful owner of a property that had become bona vacantia.


THE ISSUES


The court had to decide whether the appellant had the legal standing to challenge the reinstatement of the company and the validity of the corporate actions taken during its deregistration. Additionally, the court needed to determine if the alleged illegal corporate activities warranted a reconsideration of the property transfer.


ANALYSIS


The court's analysis focused on the appellant's lack of standing due to his own actions leading to the company's deregistration. It emphasized that the appellant could not use the reinstatement application to contest the legality of corporate actions that he had previously allowed to occur. The court referenced the case of Newlands Surgical Clinic v Peninsula Eye Clinic to support its findings, highlighting that any person with an interest could seek relief under Section 83(4) of the Companies Act, but the appellant's claims were deemed opportunistic and unfounded.


REMEDY


The court dismissed the application for leave to appeal, concluding that the appellant had no reasonable prospect of success in his claims. The appellant was ordered to pay the costs associated with the application.


LEGAL PRINCIPLES


The judgment established key legal principles regarding the standing of parties in corporate disputes, particularly emphasizing that a party who has caused a company's deregistration cannot later challenge the validity of actions taken during that period. It also reinforced the notion that bona fide purchasers are protected from claims of illegality that arise from the actions of others, provided they acted in good faith.

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SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this
document in compliance with the law and SAFLII Policy

REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION, JOHANNESBURG

Case Number: 2024-007632
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER JUDGES: NO
(3) REVISED: NO
2025/08/14

In the matter between:

LANGLAAGTE TRUCK AND CAR CC First Applicant

and

8 MILE INVESTMENTS 539 (PTY) LTD First Respondent

BRADLEY TRENT JONES Second Respondent

ABSA BANK LIMITED Third Respondent

REGISTRAR OF DEEDS PRETORIA Fourth Respondent

COMPANIES AND INTELLECTUAL PROPERTIES COMMISSIONFifth Respondent

MINISTER OF FINANCE Sixth Respondent

THE SHERIFF OF JOHANNESBURG EAST Seventh Respondent

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JUDGMENT: LEAVE TO APPEAL APPLICATION BY THE SECOND
RESPONDENT


PJ DU PLESSIS, AJ

BACKGROUND

[1] In the opposed motion court hearing on 24 February 2025, with judgment
delivered on 10 March 2025, this court granted the reinstatement of the first
respondent. The order further stipulated that: a. The First Respondent's corporate
activities shall be valid retrospectively. b. The First Respondent's assets shall
automatically revest retrospectively. This order practically meant the transfer of the
property to the Applicant, which took place after it became bona vacantia, was
condoned, and the first respondent lost his ownership.

[2] Dissatisfied with the practical outcome, the appellant, Mr Bradley Trent Jones
(Second Respondent) , who is the sole director of the first respondent, lodged an
appeal against the order. This appeal was heard virtually on 12 August 2025.

[3] When the main matter was heard, the appellant did not oppose the
reinstatement of his company. However, he requested that all assets should
automatically revest in the First Respondent retrospectively. He also sought the
following relief:
3 Ordering the Seventh Respondent to expunge the name of the
Applicant from the Title Deed under which the property, being Remaining
Extent of Portion 1 of Erf 1[ …], Waverley (Johannesburg) Township,
Registration Division, IR measuring 1532 m² (“the property”) is held, as
registered owner of the property.
4 Directing the Seventh Respondent to record in the Title Deed that the
First Respondent is the registered owner of the property.
5 Ordering the Applicant to pay the costs of this application.

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The appellant's argument for this relief was based on alleged "illegal corporate
activity."

[4] Advocate Rodrigues, representing the applicant, argued that the issues of
illegal corporate activity raised by Advocate Cohen, on behalf of the appellant,
should be addressed through a separate application. This argument is based on the
fact that the first respondent was deregistered by CIPRO due to the appellant's
actions. Therefore, the appellant cannot use the unopposed reinstatement
application to petition the court to be reinstated as the property owner, based on the
allegations made.

[5] Adv. Cohen argued that a separate application was unnecessary and
stressed that the court should not have, under any circumstances, issue an order
that condones such unlawfulness.

[6] The crux of the Courts judgment was contained in paragraphs 38 and 39. The
succinctly formulated findings were on the:
Counter-Application that the Second Respondent was trying to gain benefit without
the proper legal standing, as his own failure to submit annual returns led to the
deregistration. He could have not let this deregistration happen or followed the
administrative route to have the first respondent reinstated and then raise these
issues, he was fully aware of before deregistration.
Applicability of Section 83(4) Citing Newlands Surgical Clinic v Peninsula Eye
Clinic [2015] ZASCA 25, the court found that "any person with an interest" (including
a juristic person) prejudiced by automatic retrospective action may seek relief under
Section 83(4). A court is authorized to grant any relief it considers "just and
equitable" in such circumstances.
Lawfulness of Corporate Actions The court determined that the appellant should
address the legality of corporate actions in a separate application against the
relevant parties, once the first respondent is reinstated, as he currently lack, locus
standi to do so, due to his deregistration. The Applicant was found to be bona fide,

standi to do so, due to his deregistration. The Applicant was found to be bona fide,
and no unlawful activity was attributed to him. The court acknowledged an initial
incorrect property description, which was later corrected, but found that the Applicant

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and Sheriff always had a clear understanding of the property. Consequently, the
court found there had been "substantial compliance" with the sale conditions.
Bona Fides of Applicant the Applicant was found to have acted in good faith by
purchasing the property at auction, complying with all required processes, and
incurring significant expenses. The court held that he should not be penalized for the
appellant's omissions, as all necessary processes for the Applicant's ownership,
save for the final registration, occurred before the property became bona vacantia,
but for the registration.

THE APPEAL

[7] At the outset of the appeal hearing, the court posed several questions to the
appellant's counsel, Adv. Cohen.
• Counsel confirmed that the appellant never opposed the reinstatement
of the company, 8 Mile Investments 559 Pty Ltd.
• Counsel confirmed that their draft order requested the court to undo the
execution sale based on "unlawful corporate activities," rather than validating
the corporate activities and sale.
• The court also noted the appellant's concerns, including non-
compliance with Rule 46, an execution order granted on a wrong property, a
void sale that was later backdated, and an alleged fraudulent representation
to the Registrar of Deeds. Counsel confirmed these were indeed their
concerns.
• When the court questioned him on its core finding, that the
counterapplication was improper, counsel for the appellant argued that they
never relied on a counterapplication. Instead, they raised these issues to
demonstrate "illegal corporate activity" that should not have been condoned
by the court. Counsel submitted that to succeed, the Applicant had to prove
the validity of the corporate activities, and that the appellant was prejudiced by
these irregularities. They contended that the court should not sanction non-
compliance with court orders and rules, and therefore, the issue should be a
matter for an appeal court to decide.

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[8] The appellant also stood by his grounds and reasons in the written application
filed for leave to appeal and submitted that costs in this matter must be reserved for
the court hearing this appeal.

[9] Adv. M. Rodriques the counsel for the Applicant opposing the appeal referred
the Court to the Appellants replying affidavit par 87 on 02- 249 where he stated:
“Upon the re- registration of the first respondent, it will be necessary for
proceedings to be instituted by the first respondent to:
87.1 To declare the transfer of the property …. Void ab initio and that it be set aside.
87.2 Direct the fourth respondent to cancel the title deed held by the applicant …
until such time a valid and lawful sale and transfer occurs”

[10] Counsel submitted her client only prayed for the re -instatement order the
court granted. This was granted as the court found the Applicant was bona fide and
had and interest as he bought the property with no control over the process of how
he became owner thereof. She submitted the appellant did use their application for
his counter application even though his replying affidavit clearly stated, what he
raised in the main, was to be reserved for “after the first respondent’s re-registration.”

[11] She submitted that the appellant's application was opportunistic and an effort
to remain in the property. She pointed out that everything regarding the sale was
dealt with before the deregistration of the first respondent, and the appellant, being
fully aware of the situation, did nothing to prevent it. He caused the deregistration of
the first respondent, which led to the property becoming bona vacantia, and this
forced the Applicant to bring the reinstatement application because the registration of
the property in his name was the only thing that fell within the deregistration period.
She argued that he cannot now claim "illegal corporate activity" to set aside a
process he could have prevented.

process he could have prevented.

[12] Newlands Surgical Clinic v Peninsula Eye Clinic protects bona fide
interested persons (like the applicant) who can suffer substantial loss. It allows a
court a discretion and t he court's primary consideration would be to uphold the
interests of the bona fide third party to prevent prejudice. Therefore, any alleged
unlawful corporate activity that occurred during the execution process leading to the

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sale of the property would be a matter to be addressed by the reinstated company
and the parties involved in those alleged activities, not the bona fide buyer.

[13] The only other issues requiring consideration were the ABSA letter and costs.

[14] On cost Adv Cohen in submission in the appeal application conceded that this
was not a “run of the mill case”. I agree.
On the ABSA letter, there was no specific address in the appeal application. The
papers suggested the Court was wrong to consider the contents, as it was objected
to and filed late, and the appellant had no right of reply. Although this is true, this
matter was heard in the Opposed Motion Court, and the court itself queried whether
Rule 46 was complied with, particularly regarding the reserve price. The letter was
submitted to address this query, and it clarified the process. There was nothing in the
submissions to suggest the content was untrue.

THE APPEAL TEST

[15] The test for granting leave to appeal in South Africa is governed by Section
17(1)(a) of the Superior Courts Act No. 10 of 2013. Leave to appeal may only be
granted if the judge or judges are of the opinion that:
• The appeal would have a reasonable prospect of success; or
• There is some other compelling reason why the appeal should be
heard, including conflicting judgments on the matter under consideration.
The interpretation of "would" indicates a higher threshold than the previous
test of "might" come to a different conclusion, implying a measure of certainty
that another court will differ from the current judgment.
The Supreme Court of Appeal has emphasized that there must be
"reasonable prospects of success" and not merely an arguable case or a
mere possibility of success.

[16] Due to specific findings made supra, I find that this appeal on all grounds
raised would have no reasonable prospect of success and there is no other
compelling reason the appeal should be heard or the matter considered.

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ORDER

[17] As a result, I make the following order:
The application for leave to appeal is dismissed.
The Appellant is ordered to pay the costs of the application.

PJ DU PLESSIS
ACTING JUDGE OF THE HIGH COURT
JOHANNESBURG

For the Applicant:
Adv M Rodriques
Instructed by: Kaveer Guiness Incorporated

For the Appellant
(Second Respondent):
Adv S Cohen
Instructed by Allan Levin & Associates

Date of hearing: 12 August 2025

Date of judgment: 14 August 2025