JJP Propco (Pty) Ltd and Another v Jacaranda Haven (Pty) Ltd (37063/2018) [2019] ZAGPPHC 232 (21 June 2019)

JJP Propco (Pty) Ltd and Another v Jacaranda Haven (Pty) Ltd (37063/2018) [2019] ZAGPPHC 232 (21 June 2019)

The court found that the respondent failed to prove on a balance of probabilities that it disputes the applicants’ locus standi on bona fide and reasonable grounds. The respondent is factually insolvent, owing not less than R30 million while its only asset is an immovable property valued at R12 million. The applicants established their locus standi as creditors under the Companies Act. The respondent’s denial of indebtedness did not amount to a genuine and bona fide dispute. It is just and equitable for the respondent to be placed under provisional winding up.

Citation
[2019] ZAGPPHC 232
Parties
Applicant: JJP Propco (Pty) Ltd; Applicant: JJP Propco Medical (Pty) Ltd; Respondent: Jacaranda Haven (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
21 June 2019
Case Number
37063/2018
Procedural Posture
Urgent Application / Application for Provisional Winding Up Order
Outcome
Application granted. Respondent placed under provisional winding up.
Judges
Strijdom
Legal Topics
Provisional Winding Up, Factual Insolvency, Just and Equitable Ground, Locus Standi, Concursus Creditorum
Commercial and Corporate Civil Procedure Provisional Winding Up Factual Insolvency Just and Equitable Ground Locus Standi Concursus Creditorum

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Parties

JJP Propco (Pty) Ltd

Applicant

JJP Propco Medical (Pty) Ltd

Applicant

Jacaranda Haven (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application for Provisional Winding Up Order

Legal Issues

  1. 1 Whether the respondent is factually insolvent and unable to pay its debts.
  2. 2 Whether it is just and equitable to place the respondent under provisional winding up.
  3. 3 Whether the applicants have locus standi as creditors to bring the application.

Ratio Decidendi

The court found that the respondent failed to prove on a balance of probabilities that it disputes the applicants’ locus standi on bona fide and reasonable grounds. The respondent is factually insolvent, owing not less than R30 million while its only asset is an immovable property valued at R12 million. The applicants established their locus standi as creditors under the Companies Act. The respondent’s denial of indebtedness did not amount to a genuine and bona fide dispute. It is just and equitable for the respondent to be placed under provisional winding up.

Court Disposition

Application granted. Respondent placed under provisional winding up.

Orders

  • The respondent company is placed under provisional winding up.
  • All persons with a legitimate interest are called upon to show cause why a final winding up order should not be granted on the specified date.