Rea Vaya bus operating company, Pio-Trans, emerged victorious in a litigation instituted by Gioberti Investments to have the bus company liquidated.
Mochele Noge, the former CEO of Pio-Trans, through his company Gioberti had filed an application with the Johannesburg High Court to have Pio-Trans liquidated.
However, the application was dismissed with costs this week by Judge Fiona Dippenaar. Noge, through his company, sought the final winding down of Pio-Trans, claiming it was unable to pay its debts.
Noge contended that his company was owed an amount of R679 807 for unpaid services rendered to Pio-Trans during July to November 2022. However, Dippenaar handed down a judgment on Monday in favour of Pio-Trans.
“The applicant was aware of disputes pertaining to his employment and the respondent’s challenges to the validity of the agreement prior to launching of the present application. The applicant, however, persisted in launching the application, knowing its claim was bona fide disputed on reasonable grounds.
“In my view, the respondent has met the required threshold.
“It follows that the application must fail on this basis alone. Having reached this conclusion, it is necessary to determine the remaining issues, including whether the applicant has established the commercial insolvency of the respondent as contended for. There is no reason to deviate from the normal principle that costs follow the result. The application is dismissed with costs,” reads the judgment.
In court papers, Noge said the agreement between Pio-Trans and Gioberti was valid. Dippenaar stated in her judgment that Pio-Trans had challenged the validity of the agreement, as the Rea Vaya’s bus operating company had contended that Noge was employed in his individual capacity as CEO in terms of appointment, but refused to sign an employment contract, despite being instructed to do so.
Noge said he would not appeal the judgment.
Meanwhile, former chairperson of Pio-Trans, advocate Nomazotsho Memani, has appealed the recent judgment handed down against her.
Memani had taken the City of Johannesburg MMC for transport Kenny Kunene, transport director Dorothy Mabuza, including the Joburg metro, MEC of transport and the minister of the same portfolio and others, to court in her quest to challenge the dissolution of the board she chaired.
Memani was fired by the shareholders of Pio-Trans. She handed her resignation letter to the company on June 1.
For more business news from Sunday World, click here.
Follow @SundayWorldZA on Twitter and @sundayworldza on Instagram, or like our Facebook Page, Sunday World, by clicking here for the latest breaking news in South Africa
