Worldplay LLC v Firstrand Bank Limited and Others; Worldplay LLC v Adelakun NO and Another; Worldplay LLC v Adelakun (19409/2018; 3484/2019; 3485/2019) [2020] ZAWCHC 1 (6 January 2020)

Worldplay LLC v Firstrand Bank Limited and Others; Worldplay LLC v Adelakun NO and Another; Worldplay LLC v Adelakun (19409/2018; 3484/2019; 3485/2019) [2020] ZAWCHC 1 (6 January 2020)

The court found that Worldpay LLC had established, through bank statements and a detailed chronology, the flow of misappropriated funds from its accounts to those controlled by Adelakun and the Trust. The respondents failed to provide any legitimate explanation for the transfers or to substantiate their denials of fraud. The evidence demonstrated that the respondents are factually insolvent and have committed acts of insolvency as contemplated by the Insolvency Act. The applicant's claim was found to be liquidated and substantial, conferring locus standi for the sequestration applications. The court rejected all in limine objections and found no bona fide dispute of fact. It was held that...

Citation
[2020] ZAWCHC 1
Parties
Applicant: Worldpay LLC; Respondent: Firstrand Bank Limited; Respondent: The Trustees for the time-being of the JHYHDE International Trust; Respondent: Adelakun, Jyde; Respondent: Adelakun, Jyde Aremu Breimmo N.O.; Respondent: Dube, Thandikhaya Michael N.O.
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
6 January 2020
Case Number
19409/2018; 3484/2019; 3485/2019
Procedural Posture
Urgent Application / Final Orders on Sequestration and Anti Dissipation Interdict
Outcome
Final sequestration orders granted against Adelakun and the Trust; costs to be costs in the sequestrations.
Judges
Steyn
Legal Topics
Final Sequestration, Anti Dissipation Interdict, Fraudulent Transfer, Insolvency Act Section 12, Money Laundering, Locus Standi
Civil Procedure Commercial and Corporate Banking and Finance Final Sequestration Anti Dissipation Interdict Fraudulent Transfer Insolvency Act Section 12 Money Laundering +1 more

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Parties

Worldpay LLC

Applicant

Firstrand Bank Limited

Respondent

The Trustees for the time-being of the JHYHDE International Trust

Respondent

Adelakun, Jyde

Respondent

Adelakun, Jyde Aremu Breimmo N.O.

Respondent

Dube, Thandikhaya Michael N.O.

Respondent

Procedural Posture

Urgent Application / Final Orders on Sequestration and Anti Dissipation Interdict

Legal Issues

  1. 1 Whether Worldpay LLC has proved a liquidated claim against Adelakun and/or the Trust based on cyber fraud.
  2. 2 Whether the requirements for final sequestration orders under section 12(1) of the Insolvency Act have been met.
  3. 3 Whether the respondents are factually insolvent and have committed acts of insolvency.

Ratio Decidendi

The court found that Worldpay LLC had established, through bank statements and a detailed chronology, the flow of misappropriated funds from its accounts to those controlled by Adelakun and the Trust. The respondents failed to provide any legitimate explanation for the transfers or to substantiate their denials of fraud. The evidence demonstrated that the respondents are factually insolvent and have committed acts of insolvency as contemplated by the Insolvency Act. The applicant's claim was found to be liquidated and substantial, conferring locus standi for the sequestration applications. The court rejected all in limine objections and found no bona fide dispute of fact. It was held that...

Court Disposition

Final sequestration orders granted against Adelakun and the Trust; costs to be costs in the sequestrations.

Orders

  • Final sequestration orders are granted in cases 3484/19 and 3485/19.
  • The costs of the sequestrations, including reserved costs in respect of any extensions of return days or postponements, save where orders in this regard have already been made, will be costs in the sequestrations.