ABSA Bank v Relmar Investments (26514/2010) [2011] ZAWCHC 479 (27 October 2011)
- Citation
- [2011] ZAWCHC 479
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Western Cape High Court, Cape Town
- Panel
- Henney R
- Case number
- 26514/2010
More details
- Court
- Western Cape High Court, Cape Town
- Panel
- Henney R
- Case number
- 26514/2010
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the respondent failed to establish any valid reason why the final liquidation order should not be granted. The respondent was unable to pay its debts, and the alleged promise of working capital by the applicant was denied and, in any event, was not raised as a defence in previous proceedings. The respondent's opposition was therefore without merit, and the requirements for final liquidation were satisfied.
Court disposition
Final liquidation order granted against the respondent with costs in liquidation.
Orders
- The respondent is finally liquidated.
- Costs are awarded in liquidation.
02
Material facts
Parties
ABSA Bank
ApplicantRelmar Investments (Pty) Ltd
Respondent03
Procedural history
Posture
Liquidation Application / Final Order
04
Questions and positions
Legal issues
- 01
Whether the respondent has shown sufficient cause why the final liquidation order should not be granted.
- 02
Whether the respondent is able to pay its debts.
- 03
Whether alleged promises by the applicant's representative affect the liquidation proceedings.
Party arguments
- Applicant
- The applicant argued that the respondent is unable to pay its debts and that there is no valid reason to refuse the final liquidation order. The applicant denied any promise to provide working capital to the respondent.
- Respondent
- The respondent opposed the final liquidation order, claiming that a representative of the applicant promised to provide working capital, which was not honoured, resulting in the respondent's inability to conduct business properly. The respondent argued this should prevent liquidation.
05
Court’s reasoning
Legal principles
- 01
Companies Act 61 of 1973
A company may be finally liquidated if it is unable to pay its debts and fails to show sufficient cause against liquidation.
- 02
Standard Bank of SA Ltd v Court of Appeal 1995 (3) SA 123 (A)
Alleged promises not pleaded or raised in prior proceedings cannot constitute a valid defence to liquidation.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the respondent failed to establish any valid reason why the final liquidation order should not be granted. The respondent was unable to pay its debts, and the alleged promise of working capital by the applicant was denied and, in any event, was not raised as a defence in previous proceedings. The respondent's opposition was therefore without merit, and the requirements for final liquidation were satisfied.
Obiter and limits
- The respondent's failure to raise the alleged promise in earlier proceedings undermines its credibility.
- The court emphasised that mere allegations unsupported by evidence cannot prevent liquidation.
Court disposition
Final liquidation order granted against the respondent with costs in liquidation.
- The respondent is finally liquidated.
- Costs are awarded in liquidation.
Source and reliance status
Western Cape High Court, Cape Town
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Western Cape High Court, Cape Town
Judgment
IN DIE HOOGGEREGSHOF VAN SUID-AFRIKA
(WES-KAAP HOE HOF, KAAPSTAD)
SAAKNOMMER: 26514/2010
DATUM: 27 OKTOBER 2011
In die saak tussen:
ABSA
BANK …....................................................................................Appellant
en
RELMAR
INVESTMENTS ….............................................................Respondent
UITSPRAAK
HENNEY, R:
In die saak van Absabank, die applikant, en Relmar Investments (Edms) Beperk, die respondent, is daar 'n bede dat respondent finaal
gelikwideer word. Daar was alreeds 'n voorlopige bevel toegestaan. Voor die bevel finaal gemaak was, was daar 'n aansoek gewees vir die verlenging van die bevel nisi, en het die respondent die aansoek geopponeer. Die bevel was vroeer hierdie jaar deur Traverso, ARP gemaak. Die finale bevel vir die likwidasie van die maatskappy is toe later geopponeer.
Ek is van oordeel dat op die stukke die respondent nie 'n behoorlike saak uitgemaak het oor waarom die finale bevel nie toegestaan moet word nie. Dit is so dat die respondent nie eens in staat is om sy skulde te betaal nie. Daar is al meer as vonnis meer as 'n jaar gelede teen die respondent verleen. Die respondent se argument dat hy deur 'n verteenwoordiger van die applikant bqlowe was dat daar werkskapitaal aan horn verskaf sal word wat nie eerbiedig was nie en as gevolg hiervan die maatskappy in 'n posisie geplaas was om nie behoorlik besigheid te dryf nie, omdat die belofte nie nagekom is nie, was deur die applikant ontken. In elk geval, dit was nooit aangevoer as 'n verweer in 'n verstekvonnis aansoek en ook in 'n summiere vonnis aansoek deur die respondent teen die applikant in hierdie hof wat hierdie likwidasie aansoek voorafgegaan het nie.
Derhalwe word die bevel dat die respondent gelikwideer word finaal toegestaan met koste in likwidasie.
HENNEY, R
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