Liebenberg and Another v Tariomix (Pty) Ltd t/a Forever Diamonds and Gold (In Liquidation) and Others (2167/2024) [2024] ZANWHC 166 (5 June 2024)

Liebenberg and Another v Tariomix (Pty) Ltd t/a Forever Diamonds and Gold (In Liquidation) and Others (2167/2024) [2024] ZANWHC 166 (5 June 2024)

The court held that the business rescue application had not been properly made, as there was no evidence of service and notification to all affected parties, and thus section 131(6) of the Companies Act was not triggered to suspend liquidation proceedings. Even if properly made, section 131(6) only suspends the...

Source-derived case information.

Citation
[2024] ZANWHC 166
Parties
Applicant: Louis Petrus Liebenberg; Applicant: Magdelena Petronella Kleynhans; Respondent: Tariomix (Pty) Ltd t/a Forever Diamonds and Gold (In Liquidation); Respondent: Hermanus Johannes Vaughn Victor N.O.; Respondent: Johanna Minnie Magandele N.O.; Respondent: Varoline Mamakgolo Ledwaba N.O.; Respondent: Commissioner: Retired Judge Cynthia Pretorius; Respondent: The Master of the High Court; Respondent: The Commissioner for the South African Revenue Services; Respondent: Zaheer Cassim N.O.
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
5 June 2024
Case Number
2167/2024
Procedural Posture
Urgent Application / Final Order and Reasons Following Urgent Application
Outcome
Application dismissed with costs on an attorney and client scale, including costs for two counsel.
Judges
A H Petersen
Legal Topics
Business Rescue Application, Powers of Liquidators, Interim Interdict, Section 131 6 Companies Act, Section 19 and 69 Insolvency Act
Civil Procedure Commercial and Corporate Business Rescue Application Powers of Liquidators Interim Interdict Section 131 6 Companies Act Section 19 and 69 Insolvency Act

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Parties

Louis Petrus Liebenberg

Applicant

Magdelena Petronella Kleynhans

Applicant

Tariomix (Pty) Ltd t/a Forever Diamonds and Gold (In Liquidation)

Respondent

Hermanus Johannes Vaughn Victor N.O.

Respondent

Johanna Minnie Magandele N.O.

Respondent

Varoline Mamakgolo Ledwaba N.O.

Respondent

Commissioner: Retired Judge Cynthia Pretorius

Respondent

The Master of the High Court

Respondent

The Commissioner for the South African Revenue Services

Respondent

Zaheer Cassim N.O.

Respondent

Procedural Posture

Urgent Application / Final Order and Reasons Following Urgent Application

  1. 1 Whether the pending business rescue application suspends the liquidation proceedings under section 131(6) of the Companies Act.
  2. 2 Whether the provisional liquidators and commissioner may continue statutory enquiries and asset attachments during the pendency of the business rescue application.
  3. 3 Whether the applicants have established grounds for an interim interdict against the liquidators and commissioner.

Ratio Decidendi

The court held that the business rescue application had not been properly made, as there was no evidence of service and notification to all affected parties, and thus section 131(6) of the Companies Act was not triggered to suspend liquidation proceedings. Even if properly made, section 131(6) only suspends the process of realisation and distribution of assets, not the powers or office of the liquidators, who remain obliged to secure assets for creditors. The applicants failed to establish a prima facie right or irreparable harm, as their allegations were broad and unsupported by cogent evidence. Remedies exist for third parties aggrieved by asset attachments, and the respondents...

Court Disposition

Application dismissed with costs on an attorney and client scale, including costs for two counsel.

Orders

  • The application is dismissed with costs on an attorney and client scale, including the costs consequent to the employment of two counsel.
  • Reasons for the order are provided in this judgment.