CSTM Update release GAUTENG LOCAL DIVISION, JOHANNESBURG CASE NUMBER 15402/11

ESTATE AGENCY AFFAIRS BOARD: CSTM UPDATE RELEASE:

CONSTANTIA SECTIONAL TITLE MANAGERS

IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION, JOHANNESBURG CASE NUMBER 15402/11

During 24 May 2011 the South Gauteng High Court granted a temporary interdict in favour of the Estate Agency Affairs Board’s (the Board) pursuant to a high court application in terms of section 32(6) of the Estate Agency Affairs Act, in terms of which Constantia Sectional Title Managers PTY LTD was interdicted from operating as an estate agent, was interdicted from operating their trust accounts, and any other bank accounts held in terms of the Estate Agency Affairs Act. A curator bonis was also appointed by the court to control and administer such trust, savings or other interest bearing account, with such rights, duties and powers as the court deemed fit.

In light of aforementioned application by the Board, the late Mr L. Moepi was finally appointed as curator bonis on the 3rd of August 2011, soon thereafter the liquidators of CSTM counter-applied to the High Court to rule that the monies held in the bank accounts of CSTM be paid into the Insolvent estate of the liquidated company, CSTM, and be dealt with in terms of the provisions of the Insolvency Act. This was opposed by the board through its attorneys, and the board persisted in its application for the curator to be allowed to deal with the trust monies. During 2013 the curator bonis Mr L. Moepi was killed and Mr Vusumuzi Masilela was substituted as curator bonis.

On the 19th of June 2015 in the matter between The Estate Agency Affairs Board and Another v Constantia Sectional Title Managers and Others, the Johannesburg high court handed down judgment in favour of the Estate Agency Affairs Board application, the high court’s judgment is as follows:

Mr Vusumzi Masilela in his capacity as the curator bonis of the trust accounts of CSTM is authorised in regard to the Company's trust bank accounts, under the supervision of the Board to:

  1. to pay creditors of the company from the funds in the accounts in his sole discretion and under the supervision of the Board and in particular
  1. To pay funds from the Nedbank accounts referred to above which can be identified as having been paid by specific trust creditors or for the account of specific trust creditors and in respect of which no withdrawals have been made to the specific trust creditors.
  1. To pay funds other than funds referred to in (a) to all known creditors of the company who lodge a claim with the curator bonis pro-rata as if in a concursus creditorium.
  1. To pay funds from the various First National Bank accounts which were deposited by unit holders who can be identified to the specific trust creditors who are reflected as the account holders.
  1. To pay funds from the various First National Bank Springs, accounts(other than funds referred to in (c) which were deposited by unit holders who cannot be identified to all known creditors of the company who lodge claims with the curator bonis pro rata as if in a concursus creditorium.

In light of the above, claimants who have not submitted claims to the curator as advised by the Board in correspondence must submit their claims to the curator Mr Vusumzi Masilela, at enquiries@ngidi.co.za . The curator will consider the claims in terms of the court order. Once the curator has drafted his final report to the board regarding the monies paid to claimants, and the residual amounts owing to the claimants, the board will be in a position to submit claims to the Board’s claims committee for resolution.

Claimants are reminded that the appointment of a curator to manage and administer the bank accounts of CSTM means that claimants are not required to excuss by means of civil proceedings against CSTM, and against all persons who may be liable for the loss suffered. However claimants must lay a criminal complaint against CSTM and furnish the board with the criminal case details.

Consideration of Claims by the Board after the curator has determined trust creditors and paid claimants, will be subject to the curator’s final report, criminal case details submitted by claimants, and the claims process. In this regard claimants must ensure that their completed complaint initiation form (claim form) is attested to by a commissioner of oaths; a copy of the management agreement is attached thereto together with documents which evidence that the claimed amount was held by CSTM in trust. Claimants must also ensure that a copy of their claim has been submitted to the curator in the aforementioned manner.

Your kind co-operation in expediting all claims by complying with all requirements of the Act, and processes as submitted above will avoid unnecessary delay, and would be appreciated.


Judgement documents can be downloaded from the bottom of the main page



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