The Insolvency Act does not deprive an insolvent of his or her locus standi other than in those instances
mentioned in section 23(6). An insolvent retains general competency to sue and be sued. An insolvent's
disability is confined to the legal consequences arising from the fact that his or her estate vests in the trustee
who exercises all rights in respect of the property comprising the estate (Marais v Engler Earthworks (Pty) Ltd;
Engler Earthworks (Pty) Ltd v Marais 1 9 9 8 ( 2 ) S A 4 5 0 ( E ) a t 4 5 3 H I ; Voget and others v Kleynhans
2003 (2) SA 148 (C) at 153HI). Where a trustee declines to institute proceedings against a debtor of an
insolvent estate for the recovery of any benefit to which the insolvent estate is entitled, the insolvent has a
reversionary interest in the insolvent estate (see Mears v Rissik, Mackenzie NO and Mears' Trustee 1905 TS 303
at 305; Nieuwoudt v The Master and others NNO 1988 (4) SA 513 (A) at 524H525G; Marais v Engler Earthworks
(Pty) Ltd; Engler Earthworks (Pty) Ltd v Marais (supra) at 453I; Voget and others v Kleynhans (supra) at 153I
154A). Mr Acton referred to Muller v De Wet NO and others4 1999 (2) SA 1024 (W) in which it was held (at
1030DF) that an insolvent can only act in terms of his commonlaw reversionary interest where the trustee
has acted improperly in not taking the required action. On appeal to the Full Bench, the judgment was
reversed but the issue of the reversionary interest was not dealt with because the Full Bench was of the view
that the question of locus standi was not necessary for the determination of the case (Muller v De Wet NO and
others5 2001 (2) SA 489 (W) at 500I). In
View Parallel Citation
Voget and others v Kleynhans (supra) at 154A, the decision of the court a quo in Muller v De Wet NO and others
(supra) is referred to without comment and not followed. I prefer, with respect, to follow the course adopted
in Voget and others v Kleynhans (supra) which is a decision of this Division.
In Voget and others v Kleynhans (supra) the two plaintiffs were both unrehabilitated insolvents who brought
their action "with the knowledge and consent of their trustee/liquidator". Van Reenen J held (at 154BC):
Page 91 of [2004] 4 All SA 67 (C)
"In my view, the most plausible of the inferences that could be drawn from the fact that first and second plaintiffs'
trustee has knowledge of and has consented to the institution of the action by them in their own names, is that he
was not prepared to do so (cf De Polo and another v Dreyer and others 1991 (2) SA 164 (W) at 177FG).
Accordingly, first and second plaintiffs are entitled, by virtue of their reversionary interest in their sequestrated
joint estate, to institute these proceedings and do have locus standi in the first of the two senses mention in par
[6] above."
(The sense of locus standi to which the learned Judge refers is that of "a direct and substantial interest in the
right which is the subjectmatter of the litigation and the outcome thereof").
In this matter, the trustee was informed of the legal proceedings, satisfied herself that there was a serious
issue to be tried, and explicitly declined to institute proceedings. In my view, the applicant was entitled, by
virtue of his reversionary interest in his sequestrated estate, to institute these proceedings in his own name.
(ii) It was contended that the applicant had not made out a prima facie case in the founding papers. In essence,
the objection was that the applicant had not in the founding papers proved or established the basis for
authorship and therefore of ownership of the copyright in question. Mr Acton submitted that when an
objection in limine is taken by a respondent in a matter on papers that they do not disclose a cause of action,
the approach to be adopted is that set out in Hart v Pinetown Drivein Cinema (Pty) Ltd 1972 (1) SA 464 (D). Mr
Acton relied in particular on the following passage (at 469CE) in the judgment:
"It must be born in mind, however, that where proceedings are brought by way of application, the petition is not
the equivalent of the declaration in proceedings by way of action. What might be sufficient in the declaration to foil
an exception, would not necessarily, in a petition, be sufficient to resist an objection that a case had not been
adequately made out. The petition takes the place not only of the declaration but also of the essential evidence
which will be led at the trial and if there are absent from the declaration such facts as will be necessary for
determination of the issues in the petitioner's favour, an objection that it does not support the relief is sound."
(The passage is cited with approval in Pearson v Magrep Investments (Pty) Ltd and others 1975 (1) SA 186 (D)
at 187EH and in Swissborough Diamond Mines (Pty) Ltd and others v Government of the Republic of South Africa
and others 1992 (2) SA 279 (W) at 323HI).
Mr Acton also referred to Lacfin (Pty) Ltd v Le Roux 769 JOC (O) in which objection was taken in limine by the
respondent that the founding affidavit failed to disclose a cause of action. The cause of action on which the
applicant relied was, as in the present matter, infringement of
View Parallel Citation
copyright of a computer program. After setting out the requisites for establishing such a cause of action, the
learned Acting Judge states (at 781):
"It may well be that the failure to prove even one of these prerequisites, may be fatal to the plaintiff's application.
Therefore, upon the grounds and for the reasons dealt with above, the plaintiff, in my view, has failed to prove
ownership in the computer program in question and the argument in limine should succeed.". . .
On the same page, the learned Acting Judge echoes the view expressed in Hart v Pinetown Drivein Cinema
(Pty) Ltd (supra) that what might be sufficient in a declaration to foil an exception, would not necessarily, in a
Page 92 of [2004] 4 All SA 67 (C)