C. OF A (CIV) NO 1/92)
IN THE LESOTHO COURT OF APPEAL
In the matter between
MASECHELE KHAKETLA Appellant
and
IKETSETSENG PRIVATE SCHOOL Respondent
HELD AT MASERU
Coram: Ackermann,
Steyn and
Kotze J.J.A.
JUDGMENT KOTZe J.A.:-
This appeal concerns affairs of the Iketsetseng Private School (the school) situate at plot 153 Cathedral Area, Maseru.
On ,14th December 1990 MOLAI J. in the High Court granted to the school (as applicant, now respondent, but to be referred to hereafter as applicant) against the appellant (as respondent and to be referred to as such hereafter) a rule nisi calling upon the respondent inter alia to show cause why
respondent shall not hand over the property of the applicant to Messrs R.V. and L. Lechesa - two trustees duly appointed in terms of the constitution of the applicant;
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respondent shall not hand over the management and/or administration of the applicant to the executive committee duly appointed in terms of the constitution of the applicant;
respondent shall not desist forthwith from managing and/or administering applicant.
On 10 th February 199 2 MOLAI J. confirmed the rule and decreed that respondent pay three quarters of the costs. The respondent now appeals against the confirmation of the rule. The present proceeding is an appeal by the respondent against the order of 10th February 1992.
The applicant's founding affidavit is deposed to by T. Kulehile, "in his capacity as chairman of the executive committee and governing body of the applicant and authorised by a resolution of the said executive committee".
In her answering affidavit the respondent challenged the legal capacity and locus standi of the applicant. Before us this issue was not pursued, counsel announcing at the outset that the appeal would be confined to the "central issue" which, as will appear, falls within a narrow compass.
The "central issue" is simply, as the applicant contends and the respondent denies, whether (1) the management of the school resides in an executive committee composed in terms of a constitution adopted on 6th February 1962 by the governing body
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of the school and (2) the property of the school is vested in the trustees mentioned in paragraph (a) of the rule nisi for and on behalf of the governing body. The respondent's denial is based on the contention that there is no proof of the contractual adoption of the constitution and consequently that an executive committee or governing body ever existed. The respondent' s version is that the school was, at all material times, run on an ad hoc basis by her and two other ladies in the capacity of "proprietors and founders" of the school.
The constitution relied on by the applicant is annexed to the founding affidavit as IPS2. It is headed "IKETSETSENG PRIVATE SCHOOL CONSTITUTION as adopted at the Special General Meeting of the Governing Body held at. the School on February 6, 1962." Its provisions inter alia include the following:
There shall be and is hereby constituted a Governing Body for Iketsetseng Private School, the objects of which shall be:
To acquire the ownership and control of the undertaking known as IKETSETSENG PRIVATE SCHOOL, hitherto conducted on the grounds of the Basutoland High School, together with all the property and assets, movable and immovable, and all its liabilities.
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To carry on the said School as a Kindergarten and Primary School for the education of children.
For the better attainment of the above objects the -Governing Body shall have power:
(i) To purchase, take on lease, or to exchange, hire or otherwise acquire any movable or immovable property and any rights or privileges which may be convenient or necessary for the conduct of the School or the extension thereof; and in particular any land,
buildings, servitudes, furniture or equipment. Any assets so acquired shall be vested in the two Trustees hereinafter mentioned.
(ii). To borrow, raise and acquire any money or funds necessary as the Governing Body may think fit, and in particular by way of
overdraft, loan from bankers, or others, or by debentures or by mortgage or Notarial Bond on any of its property, present or in
future.
(iii) To take any other steps, and to do all other such things as may be deemed necessary or expedient for the well-being of the School,
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(iv) To create any Reserve Fund for the furtherence of the objects of the School, and Bursaries, Scholarships and Prizes for the benefit of pupils; and any pension, medical benefit or other funds for the benefit of servants, staff and employees and to execute the necessary deeds in connection therewith.
The Governing Body shall consist of the parents and guardians of the pupils of the School for the time being, who shall, ipso facto, become members thereof on the acceptance of their children or wards as pupils of the School, and shall cease to be members thereof on their children or wards ceasing to be pupils of the School.
The Governing Body shall meet at least once annually, and shall elect a Chairman and two-Vice-Chairmen, an Executive Committee, and such other Committees or sub-committees as it may deem necessary for the maintenance and administration of the School.
The property of the School, present and future, shall be vested in 2 (two) Trustees for and on behalf of the Governing Body. They shall be, ipso facto, members of the Committee, and shall be elected at any General Meeting of the Governing Body and shall hold office until a successor or successors shall have been appointed at another General Meeting of the Governing Body. Provided that if a Trustee dies or resigns in the period
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intervening between any two general meetings the Committee may appoint someone to act in his stead until the next general meeting.
On behalf of the Governing Body the Management of the School shall be vested in the Executive Committee (herein referred to as the Committee) which shall consist of the Chairman of the Governing Body, the Vice-chairman, the Trustees and the Principal of the School and two members of the Governing Body elected at the Annual General meeting. The Governing Body and/or the Committee shall have the power to elect or co-opt any persons, whether members of the Governing Body or not, who, in their opinion, will be of assistance in furthering the objects of the Governing Body.
The Financial Year of the Governing Body shall be from 1st January to 31st December. Proper books of account and an annual Balance Sheet and Revenue and Expenditure Account shall be prepared which shall be duly audited by someone or more persons appointed therefor by the Committee, whose fee shall be voted by the Committee. Thereafter they shall be presented by the Committee to the Annual General Meeting of the Governing Body, together with a report by the Committee on the work done by it during the year; the report shall embody a report by the Principal on the work of the School during the same period."
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At the foot of annexure IPS2 there appears above the signature of the respondent, as "Managing Secretary", the following:
"I certify that this is a true copy of the constitution of the Iketsetseng Private School."
Despite her signed certificate that IPS2 is a true copy of the school's constitution, respondent denied in her answering affidavit that it is the constitution of the school and that any governing body was ever constituted for the school. She explained that IPS2 was drafted by the Director of Education but never put into effect. She explains in her answering affidavit:
"The words appearing at the top of this Annexure namely: 'As adopted at the Special General Meeting of the Governing Body held at the School on February 6, 1962' refer to a meeting of the aforesaid three of us held in our capacity as proprietors and founders of the school. We never formally adopted this document in the manner in which a constitution has to be adopted. We simply took note of it and agreed to submit it to the authorities ... At no time in the history of the school was there ever constituted a 'Governing Body' in the sense contemplated in clause 2 of Annexure 'IPS2' and no such body ever acquired the ownership and control of the school as is contemplated in clause l(a) of the said Annexure. Such acquisition could only have been obtained from the aforesaid 3 of us founders and proprietors of the
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school and that, only for value. At no stage did we, the founders and proprietors of the school, intend to part with the ownership and control of the school, least of all without consideration of any kind as the deponent and his colleagues seem to think can happen. Without such acquisition from us there can be no basis, in my respectful submission, for any claim to ownership of the school by any person."
Later on, according to the respondent, the Director allegedly produced a further draft C annexure A to the answering affidavit) which, in many respects corresponds word for word with IPS2. A significant departure from IPS2, however, -is that clause 3 substitutes for the figure and words "2(two) Trustees" the words "three Trustees" followed by the names of the respondent and the two other ladies referred to above. This document bears the same heading and date as IPS2 but is not certified. The respondent admits in the answering affidavit that annexure A was never adopted. Accordingly it has no bearing on the resolution of the appeal.
Additional to what is set out above the following are facts which are either common cause or not in dispute:
Over the years the respondent had been running the school as if it was her personal property.
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During the period referred to in the preceding sub-paragraph buildings and structures were erected on plot 153. Prior to the allocation of the plot and erection of the buildings and structures both the land allocating authority and the education department made it clear that such allocation and recognition of the school could not take place unless "some type of constitution appertaining" to the school came into existence- Because of this requirement the Director of Education drafted IPS2 as aforesaid. The allocation of the plot in the name of the school and the said erection ensued.
Site 153 was registered in the name of the school on 18th November 1969. IPS2 was used in support of such registration and a copy thereof is filed with the Registrar of Deeds together with an affidavit by the respondent declaring inter alia that the school is the lawful owner of the buildings and other improvements "erected with the consent of Government" on the site.
On 1st September 1990 the governing body of the school (consisting of the parents and guardians of the pupils of the school) met and elected a chairman, two vice-chairmen and an executive committee in terms of the constitution.
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On 16th September 1990 the executive committee held its first meeting and inter alia resolved that "a letter ... be written to the respondent asking her to hand over the school property including administration/management and financial reports."
Although invited to attend the meetings of 1st and 16th September 1990 the respondent failed to do so.
Pursuant to the resolution taken at the meeting of 16th September 1990 a letter was addressed to and served upon the respondent calling upon her to "make proper arrangements for the handover of the school's property" to Messrs R.V. and L. Lechesa, the trustees appointed in terms of clause 3 of the constitution and that "the management of the school should be handled by the executive committee in accordance with clause 4 of the constitution."
The respondent refuses to give effect to the resolution of the executive committee despite a demand so to do formally addressed to her by the applicant's attorneys.
It is apparent from what is set out above that in disclaiming the applicant's reliance upon IPS2 the respondent sets up a contention at complete variance therewith and a denial of its validity and existence. Moreover her disclaimer is irreconcilable with the registration of plot 153 in the name of the school
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suppported by her affidavit affirming the school's ownership. Such an approach is, in my view, not open to the respondent. It is common cause that the respondent has certified in writing that IPS2 is a "true copy of the constitution" of the school as adopted by the governing body. In so doing she made an unequivocal representation of which the following are integral portions:
that a governing body (consisting of the parents and guardians of the pupils) for the school has been established;
that the ownership and control of the school and its property (movable and immovable) vests in two trustees on behalf of the governing body; and
that the management of the school vests in the executive committee on behalf of the governing body.
It cannot be doubted that the said representation was intended to be acted upon and inevitably that parents and guardians did so act thereon by adopting the constitution. The respondent cannot be heard to contend differently. The very act of such adoption constitutes a detrimental alteration of the position of the parents and - guardians. The respondent's aforesaid representation and the consequences flowing therefrom preclude (estop) her from contending that the constitution which she certified as having been adopted does not exist as a binding instrument - cf. Peri-Urban Areas Health Board v. Breet and
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another, (1958(3) S.A. 783 (T) at 790 and authorities cited therein at 789-791. In my view it matters not whether the constitution was adopted during 1962 or during September 1990 and the appeal should accordingly be dismissed with costs. It is perhaps necessary to mention that this judgment does not purport to deal with rights, if any, which may have accrued to the respondent in running the school.
The appeal is dismissed with costs.
G P C KOTZe
Judge of the Lesotho Court of Appeal
I agree.
L W H ACKERMANN
J H STEYN