The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
This was an appeal against a decision of the court allowing an ex parte motion for the winding up of the appellant. The appeal was premised on the ground that the ex parte order was made against other parties who were not parties to the proceedings and were deprived of the right to be heard. The appellant further argued that the ex parte order was made without notice of the motion seeking the said orders being served on them which was regarded as contravening Order 4 of the Companies Winding-up Rules (the rules). The appellant also alleged abuse of court process by the respondent.
The respondent opposed the appeal by pointing out that issues raised by the appellant were substantial issues which cannot be dealt with in a preliminary objection. The respondent further disputed allegations of abuse of court process arguing that they at no point maintained two similar cases against the appellant.
The court held that where an order made by a court affects the interest of a non-party to a suit, the said party whose interest has been affected should complain. It ruled that it was out of place for the appellant to complain on behalf of the other parties. The court further pointed out that Order 4 of the rules does not allow freezing of assets and that the respondent breached Order 4 by filing an ex parte without serving a notice on the appellant. Thus the appeal was upheld.
In this case the applicant sought relief to set aside an ex parte order. The case illustrates the enquiry into determining who can rightly sue in the name of a corporation.
The court considered whether the High Court had made a consent order, or an ex parte order. The court held that though the order against the fifth respondent was a consent order, the order against the applicant was ex parte because the applicant was not present. The court held that the law gives the remedy to set aside an ex parte order and that it had the power under s 93 of the Civil Procedure Code (CPC) to enlarge the time period for an application.
The court considered the issue as to who was entitled to bring an action for and on behalf of the applicant. The court held that it was the company alone that could initiate or defend proceedings and not a shareholder of the company. The court held that it appeared that there were disputes regarding the internal management of the applicant. Thus, the shareholders or counsel who had initiated the application were not authorised persons.
The application was dismissed and the rest of the arguments regarding extension of time to file the application were set aside without determination.