Baumann and Others v Pharmatech (Pty) Ltd (12584/2017) [2017] ZAGPPHC 887 (7 December 2017)

Baumann and Others v Pharmatech (Pty) Ltd (12584/2017) [2017] ZAGPPHC 887 (7 December 2017)

The court found that the respondent admitted owing a substantial amount to the applicants and was unable to pay its debts. Even accepting the respondent's contention regarding defective goods, a significant balance remained outstanding. The applicants complied with the statutory requirements for security for costs, and the certificate issued by the Master was valid. The allocation of the matter to Johannesburg did not preclude the Pretoria court from hearing the case, as both parties agreed and the judge was empowered to proceed. The requirements for a provisional winding up order were satisfied.

Citation
[2017] ZAGPPHC 887
Parties
Applicant: Dion Baumann; Applicant: DB Fine Chemicals (Pty) Ltd; Applicant: DB Fine Specialities (Pty) Ltd; Respondent: Pharmatech (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
7 December 2017
Case Number
12584/2017
Procedural Posture
Urgent Application / Provisional Winding Up Application
Outcome
Provisional winding up order granted; rule nisi issued.
Judges
GC Wright
Legal Topics
Winding Up, Company Indebtedness, Certificate of Security, Compliance With Companies Act
Commercial and Corporate Winding Up Company Indebtedness Certificate of Security Compliance With Companies Act

Case Brief

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Parties

Dion Baumann

Applicant

DB Fine Chemicals (Pty) Ltd

Applicant

DB Fine Specialities (Pty) Ltd

Applicant

Pharmatech (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Provisional Winding Up Application

Legal Issues

  1. 1 Whether the respondent is indebted to the applicants in an amount sufficient to justify winding up.
  2. 2 Whether the respondent is unable to pay its debts as contemplated by the Companies Act.
  3. 3 Whether the applicants have complied with the statutory requirements for security for costs.

Ratio Decidendi

The court found that the respondent admitted owing a substantial amount to the applicants and was unable to pay its debts. Even accepting the respondent's contention regarding defective goods, a significant balance remained outstanding. The applicants complied with the statutory requirements for security for costs, and the certificate issued by the Master was valid. The allocation of the matter to Johannesburg did not preclude the Pretoria court from hearing the case, as both parties agreed and the judge was empowered to proceed. The requirements for a provisional winding up order were satisfied.

Court Disposition

Provisional winding up order granted; rule nisi issued.

Orders

  • A rule nisi is issued, returnable on 7 May 2018, calling upon the respondent and all interested persons to show cause why the provisional winding up should not be made final.
  • This order is to be served on the respondent, the Master, SARS, any employees of the respondent, and any trade union of which such employees are members.