Food and Nutrition Products v Neumann

Food & Nutritional Products (Pty) Ltd v Neumann[1] is an important case in South African law. An exception to a special plea, it was heard in the Witwatersrand Local Division by Schabort J on May 1, 1985, with judgment handed down on June 7. The excipient's attorneys were Moss-Morris, Mendelow, Braude. The respondent's attorney was Nathan BK Luen. PN Levenberg appeared for the excipient and SJ Nochumsohn for the respondent.

It is frequently the case that legislation provides that a party may "apply" or "make application" to court for relief of a particular type. While the court may then be approached on motion, despite the foreseeability of a dispute of fact, statutory provisions of this nature will not be interpreted as rendering application proceedings peremptory in every case; sometimes proceedings by way of action will be permitted instead.[2]

In casu, the court found that the word "application," in section 424(1) of the Companies Act.[3] was not intended to have the narrow meaning of proceedings only by way of motion. Proceedings under the section might therefore be by way of action as well.

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Notes

  1. 1986 (3) SA 464 (W).
  2. Theophilopoulos 131.
  3. Act 61 of 1973. The section in question provides for an "application" to court for an order declaring that a director, or any other person, is personally responsible for the debts of the company concerned, where the business of the company has been carried on recklessly or fraudulently.
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