Distell Limited v Melody Hills Trading Proprietary Limited (10404/2013, 10403/2013) [2015] ZAKZDHC 36 (24 April 2015)

Distell Limited v Melody Hills Trading Proprietary Limited (10404/2013, 10403/2013) [2015] ZAKZDHC 36 (24 April 2015)

The court found that the applicant had established, on a balance of probabilities, that it is a creditor of the respondent in the amount of R2 001 523.24, arising from deliveries of liquor products. The respondent's denial of operations and deliveries in the Western Cape was found to be untruthful and lacking in candour, contradicted by documentary evidence, minutes of directors' meetings, and correspondence. The respondent failed to object to statements of account and letters of demand, and its director acquiesced to communications regarding the debt. The respondent's assertion of substantial assets did not demonstrate the existence of readily realisable assets to pay its debts. The...

Citation
[2015] ZAKZDHC 36
Parties
Applicant: Distell Limited; Respondent: Melody Hills Trading Proprietary Limited; Respondent: 888 Liquor Depot (Pty) Ltd
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
24 April 2015
Case Number
10404/2013, 10403/2013
Procedural Posture
Winding Up Application / Return Date of Rule Nisi; Confirmation of Provisional Liquidation Orders
Outcome
Final liquidation orders confirmed against both respondents.
Judges
Ntshangase
Legal Topics
Winding Up of Company, Commercial Insolvency, Creditor Standing, Delivery of Goods, Proof of Indebtedness
Commercial and Corporate Civil Procedure Winding Up of Company Commercial Insolvency Creditor Standing Delivery of Goods Proof of Indebtedness

Case Brief

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Parties

Distell Limited

Applicant

Melody Hills Trading Proprietary Limited

Respondent

888 Liquor Depot (Pty) Ltd

Respondent

Procedural Posture

Winding Up Application / Return Date of Rule Nisi; Confirmation of Provisional Liquidation Orders

Legal Issues

  1. 1 Whether the applicant is a creditor of the respondent entitled to bring the winding up application.
  2. 2 Whether the respondent is unable to pay its debts as and when they fall due.
  3. 3 Whether the applicant has discharged the onus to prove delivery of goods and the respondent's indebtedness.

Ratio Decidendi

The court found that the applicant had established, on a balance of probabilities, that it is a creditor of the respondent in the amount of R2 001 523.24, arising from deliveries of liquor products. The respondent's denial of operations and deliveries in the Western Cape was found to be untruthful and lacking in candour, contradicted by documentary evidence, minutes of directors' meetings, and correspondence. The respondent failed to object to statements of account and letters of demand, and its director acquiesced to communications regarding the debt. The respondent's assertion of substantial assets did not demonstrate the existence of readily realisable assets to pay its debts. The...

Court Disposition

Final liquidation orders confirmed against both respondents.

Orders

  • The provisional liquidation orders in cases 10403/2013 and 10404/2013 are confirmed as final.
  • Costs shall be costs in liquidation.