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South Africa decisions
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G.D v G.J.D and Others (2427/2020) [2025] ZAECQBHC 22 (29 July 2025)
The High Court set aside an urgent order suspending business rescue, holding that affected employees and creditors were not joined and would be prejudiced.
Geldenhuys and Others v Orthotouch Limited and Others (42334/2014) [2025] ZAGPJHC 743 (24 July 2025)
The High Court dismissed an amendment and rescission application challenging a 2014 scheme of arrangement, finding no erroneous grant or material non-disclosure.
Standard Bank of South Africa and Another v Setshabelo Trading 647 (Pty) Ltd and Another (3085/2025) [2025] ZAFSHC 208 (7 July 2025)
The High Court held that a business rescue resolution was adopted while liquidation proceedings were still pending, contrary to section 129(2)(a) of the Companies Act.
MasterCard Foundation v Africa Founders Ventures NPC and Others (2025/067947) [2025] ZAGPJHC 685 (4 July 2025)
The court found that the business rescue resolution was invalid due to the failure to notify the applicant, a creditor and affected person, as required by section 129(3) of the Companies Act. The Foundation’s status as a creditor was established by its claim for repayment of rebranding costs and return of the Remaining Grant, both acknowledged by AFV. The practitioner’s conduct in using business rescue for an informal wind-down, refusing to terminate proceedings despite clear insolvency and lack of prospects for rescue, and disregarding legal authority constituted an abuse of process. The cou…
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Kurt Robert Knoop and Others v Tegeta Exploration and Resources (Pty) Ltd and Others (312/2024) [2025] ZASCA 96 (30 June 2025)
The Supreme Court of Appeal held that, under the Companies Act, once a company is placed under business rescue, the business rescue practitioners assume full management control, superseding the board of directors. Directors are thus deprived of the authority to independently appoint attorneys or initiate litigation on behalf of the company without the practitioners' approval. The mere production of a power of attorney by a director does not satisfy Rule 7 of the Uniform Rules of Court unless the director is authorized to issue it. The High Court erred in finding that the attorneys were author…
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Aviation Co-Ordination Services (Pty) Ltd v Mango Airlines SOC Limited and Others (2022/058326) [2025] ZAGPJHC 609 (17 June 2025)
The High Court held that a business rescue plan could not compel cession of creditors’ claims to an investor, and declared the plan invalid and unenforceable.
Caydavul and Another v Kamal Cape Town Iron and Steel Co (Pty) Ltd (JS619/23) [2025] ZALCJHB 223 (9 June 2025)
The plaintiffs remained employed by the defendant until their dismissal on 12 December 2023. The lay-off period was not lawfully extended by agreement, and the defendant conceded that no such agreement existed. The plaintiffs tendered their services throughout the relevant period, except during the business rescue period when they were paid. The defendant's argument that the second plaintiff's entitlement to remuneration was affected by the lapse of his work permit was rejected, as the employment contract was not rendered void and the defendant continued to treat him as an employee. The plain…
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First Rand Bank Ltd and Another v Azrapart (Pty) Ltd and Another (4437/2024) [2025] ZAFSHC 162 (5 June 2025)
The court placed Azrapart under business rescue after finding it financially distressed and unconvinced by claims of an imminent R2.6 billion Redcore funding injection.
Industrial Development Corporation of South Africa Limited and Another v Kalagadi Manganese (Pty) Ltd (661/2024) [2025] ZASCA 70 (30 May 2025)
The SCA held that the loan agreement’s arbitration clause was peremptory, stayed the application pending arbitration, and upheld the appeal.
Blue House Investments (Pty) Ltd v Uys and Others (16 May 2025) (20261/2024) [2025] ZAWCHC 205 (16 May 2025)
The court granted relief allowing the applicant to perfect and register a pledged member’s interest after loan and pledge breaches, despite a later business rescue plan.
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