Miles Plant Hire (Pty) Ltd v Commissioner for the South African Revenue Service

SARS obtained a final winding-up order against Miles Plant Hire (Pty) Ltd in the Gauteng Division of the High Court on 3 October 2013 based on substantial unpaid tax debts. Miles’ sole director, Ms Melanie Pandaram, had admitted to submitting false income tax and VAT returns, resulting in tax evasion and criminal convictions. Miles had a long history of non-compliance with tax obligations and failed attempts to compromise its tax debt, including an invalid Companies Act s 155 compromise and unsuccessful business rescue proceedings. Although leave to appeal the winding-up order was granted, Miles failed to prosecute the appeal in compliance with the Supreme Court of Appeal rules, leading to the appeal lapsing. Miles then applied for condonation and reinstatement of the appeal.

The application for condonation was dismissed. Ms Melanie Pandaram was ordered to pay SARS’ costs of the condonation application and of opposing the lapsed appeal de bonis propriis on the attorney-and-client scale, including the costs of two counsel.

The case reinforces the strict approach of the Supreme Court of Appeal to compliance with its procedural rules and confirms that flagrant, unexplained breaches may lead to refusal of condonation irrespective of prospects of success. It also underscores the court’s protection of finality in insolvency proceedings and its willingness to grant punitive personal costs orders against directors who abuse court processes.