ABSA Bank Limited v Loumarles Landgoed (Pty) Ltd (2023/131314) [2025] ZAGPPHC 773 (7 August 2025)

ABSA Bank Limited v Loumarles Landgoed (Pty) Ltd (2023/131314) [2025] ZAGPPHC 773 (7 August 2025)

The court found that the respondent is commercially insolvent, having failed to pay substantial debts due to the applicant for several years, with no evidence of liquid or readily realisable assets to meet its liabilities as they fall due. The respondent's repeated but unsuccessful attempts to sell its property since at least 2018, absence of financial statements or independent valuations, and lack of a viable ongoing sale process demonstrate an inability to pay debts. The court held that, even if the respondent's assets may exceed its liabilities, the inability to pay debts when due constitutes commercial insolvency. The applicant, as an unpaid creditor, is entitled ex debito justitiae...

Citation
[2025] ZAGPPHC 773
Parties
Applicant: ABSA Bank Limited; Respondent: Loumarles Landgoed (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
7 August 2025
Case Number
2023/131314
Procedural Posture
Urgent Application / Provisional Winding Up Application
Outcome
Provisional winding-up order granted against the respondent.
Judges
Stone AJ
Legal Topics
Winding Up of Companies, Commercial Insolvency, Creditor Rights, Just and Equitable Liquidation, Company Debt Enforcement
Commercial and Corporate Civil Procedure Winding Up of Companies Commercial Insolvency Creditor Rights Just and Equitable Liquidation Company Debt Enforcement

Case Brief

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Parties

ABSA Bank Limited

Applicant

Loumarles Landgoed (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Provisional Winding Up Application

Legal Issues

  1. 1 Whether the respondent is unable to pay its debts as contemplated in section 344(f) read with section 345 of the Companies Act, 61 of 1973.
  2. 2 Whether it is just and equitable to grant a provisional winding-up order against the respondent under section 344(h) of the Companies Act.
  3. 3 Whether the applicant, as a creditor, is entitled to a winding-up order ex debito justitiae.

Ratio Decidendi

The court found that the respondent is commercially insolvent, having failed to pay substantial debts due to the applicant for several years, with no evidence of liquid or readily realisable assets to meet its liabilities as they fall due. The respondent's repeated but unsuccessful attempts to sell its property since at least 2018, absence of financial statements or independent valuations, and lack of a viable ongoing sale process demonstrate an inability to pay debts. The court held that, even if the respondent's assets may exceed its liabilities, the inability to pay debts when due constitutes commercial insolvency. The applicant, as an unpaid creditor, is entitled ex debito justitiae...

Court Disposition

Provisional winding-up order granted against the respondent.

Orders

  • The respondent is provisionally wound up.
  • A rule nisi is issued, calling upon the respondent and all interested parties to show cause on 28 October 2025 why a final winding-up order should not be granted.