Adelakun N.O and Another v Worldpay LLC (3484/19 and 3485/19) [2024] ZAWCHC 129 (26 April 2024)
The court found that the applicants, including Mr. Adelakun, the Trust, Touch of Fame Group, and Touch of Energy Corporation, failed to establish any exceptional circumstances or bona fide defence that would justify rescission of the sequestration orders under section 149(2) of the Insolvency Act or Rule 42(1)(a). The applicants had fully participated in the original proceedings, were legally represented, and had unsuccessfully appealed the orders to the Supreme Court of Appeal and Constitutional Court. The alleged exoneration in foreign criminal proceedings was irrelevant to the civil standard required for sequestration, which was based on proven indebtedness and acts of insolvency. The...
- Citation
- [2024] ZAWCHC 129
- Parties
- Applicant: Jyde Aremu Breimmo Adelakun N.O.; Applicant: Jyde Aremu Breimmo Adelakun; Applicant: Touch of Fame Group; Applicant: Touch of Energy Corporation; Respondent: Worldpay LLC; Respondent: Zeenath Kajee N.O.; Respondent: Thabisile Dlamini-Smit N.O.
- Court
- Western Cape High Court, Cape Town
- Jurisdiction
- South Africa
- Judgment Date
- 26 April 2024
- Case Number
- 3484/19 & 3485/19
- Procedural Posture
- Urgent Application / Application for Rescission of Sequestration Orders and Declaratory Relief; Heard and Judgment Delivered
- Outcome
- Applications for rescission of sequestration orders dismissed with punitive costs.
- Judges
- V C Saldanha
- Legal Topics
- Sequestration Orders, Rescission Application, Jurisdiction Challenge, Abuse of Process, Creditor Claims, Company Representation
Case Brief
Summary, issues, holding and outcome
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Parties
Jyde Aremu Breimmo Adelakun N.O.
Applicant
Jyde Aremu Breimmo Adelakun
Applicant
Touch of Fame Group
Applicant
Touch of Energy Corporation
Applicant
Worldpay LLC
Respondent
Zeenath Kajee N.O.
Respondent
Thabisile Dlamini-Smit N.O.
Respondent
Procedural Posture
Urgent Application / Application for Rescission of Sequestration Orders and Declaratory Relief; Heard and Judgment Delivered
Legal Issues
- 1 Whether the applicants have established grounds for rescission of the sequestration orders under section 149(2) of the Insolvency Act or Rule 42(1)(a).
- 2 Whether the applicants have demonstrated exceptional circumstances or a bona fide defence to justify rescission.
- 3 Whether the South African court had jurisdiction over the sequestration proceedings given the choice of law clause in the Bank Card Merchant Agreement.
Ratio Decidendi
The court found that the applicants, including Mr. Adelakun, the Trust, Touch of Fame Group, and Touch of Energy Corporation, failed to establish any exceptional circumstances or bona fide defence that would justify rescission of the sequestration orders under section 149(2) of the Insolvency Act or Rule 42(1)(a). The applicants had fully participated in the original proceedings, were legally represented, and had unsuccessfully appealed the orders to the Supreme Court of Appeal and Constitutional Court. The alleged exoneration in foreign criminal proceedings was irrelevant to the civil standard required for sequestration, which was based on proven indebtedness and acts of insolvency. The...
Court Disposition
Applications for rescission of sequestration orders dismissed with punitive costs.
Orders
- The applications for rescission of the sequestration orders in respect of both the first and second application are dismissed.
- The further relief including the declaratory orders sought in paragraphs 2 and 3 of the second application are likewise dismissed.
Full Case Text
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