SRA can sell over E1.6m cars - court
MBABANE – The Swaziland Revenue Authority can now sell, alienate, and dispose of the over E1.6 million worth of motor vehicles belonging to TT Global.
The order was issued by High Court Judge Bheki Maphalala yesterday.
This was after the judge allowed the piercing of the corporate veil into the directorship of Nagra Motors. Piercing of a corporate veil is a term employed in the corporate world when one seeks to look beyond the company into its directors.In its urgent application filed with the court, TT Global sought an order of court declaring it an honest purchaser of the vehicles.
It also sought an order restraining and interdicting the SRA from removing the motor vehicles from its premises pending finalisation of the matter and in the event they had been removed, an order for restoration.
TT Global was represented by Mduduzi Mabila while Noel Mabuza represented the Swaziland Revenue Authority. TT Global was incorpo-rated and registered on April 18, 2011 and it commenced business subseq-uently. On July 12, 2011, TT Global concluded a sale and cessionary agreement with Nagra Motors in terms of which it purchased 53 motor vehicles for E1 657 500.
Nagra Motors further ceded its right in terms of the agreement with debtors to TT Global.
By the sale agreement, TT Global acquired all the rights of Nagra Motors in relation to the agreement with the debtors and outstanding balances. Nagra Motors also agreed to transfer and register 29 motor vehicles in the name of TT Global.
On August 18, 2011, SRA served TT Global with a notice in terms of which the 40 motor vehicles were detained pending further investigation of Contravening Section 87 of the Customs and Excise Act of 1971. A further 29 vehicles were detained the following day.
In addition to that, an embargo was effected on TT Global’s premises in terms of which no motor vehicle would be removed or brought into the company’s premises.
TT Global failed, on September 1, 2011, to have the embargo withdrawn by the SRA.
The SRA refused to withdraw the embargo unless it concluded firm agreement with Nagra Motors.
They both failed in their attempt to locate Nagra Motors’ directors.
Therefore, the SRA went against TT Global. The vehicles were towed from TT Global on January 16, 2012. An attempt by TT Global to stop the removal failed.
Dismissing the application, Judge Maphalala held that the evidence clearly showed that TT Global was established by Nagra Motors and that Rashid Minhaz, who has majority shares in both TT Global and Nagra Motors, was the brainchild behind the formation of TT Global. "In light of the conclusion to which I have arrived that the agreement between the applicant (TT Global) and Nagra Motors is a sham concluded for the sole purpose of evading the creditors of Nagra Motors," Judge Maphalala held.
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