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South Africa decisions
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Smith N.O and Another v Karlo Farming (PTY) Ltd (A102/2021) [2023] ZAFSHC 8 (20 January 2023)
Appeal upheld against refusal of provisional liquidation. The court found the respondent could not show the debt was bona fide disputed and ordered winding-up.
African Unity Life Limited v Prosper Funeral Solutions (Pty) Ltd (2021/55922) [2023] ZAGPJHC 22 (14 January 2023)
The High Court granted provisional winding-up of a company that admitted owing R10 million, found no bona fide dispute, and held the late affidavit should be condoned.
Servilor 70 CC t/a Tyrenology v Natcorp Specialised Logistics Solutions (Pty) Ltd (2021/3712) [2022] ZAGPJHC 80 (18 February 2022)
The High Court granted a provisional winding-up order after finding the company was prima facie indebted and had not shown a bona fide dispute on reasonable grounds.
Coogal Finance (Pty) Ltd [In Liquidation] (Registration Number 2005/027362/07) and Another v Sumeil (Pty) Ltd (Registration Number 2013/146387/07) and Another (3642/2020) [2021] ZAFSHC 200 (26 August 2021)
The court found insufficient evidence of unconscionable abuse of Coogal’s juristic personality by Nel or Sumeil to justify piercing the corporate veil under section 20(9) of the Companies Act 71 of 2008. The extracts from insolvency interrogations and financial records did not establish fraudulent or improper conduct, nor that Coogal was used as a device to conceal facts. Regarding provisional liquidation, Sumeil was not shown to be factually or commercially insolvent, and its financial statements demonstrated ability to pay debts. Although Sumeil raised a dispute regarding its indebtedness t…
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Drakenstein Municipality v Castle Ultra 300 (Pty) Ltd ; Drakenstein Municipality v De Oude Paarl Trading (Pty) Ltd (9530/2020; 9531/2020) [2021] ZAWCHC 26 (16 February 2021)
The High Court granted provisional winding-up orders against two related companies after finding the municipality had shown unpaid debt and no bona fide dispute.
OMV Proprietary Limited v Alleyroads Construction Proprietary Limited (2019/7213) [2021] ZAGPJHC 27 (2 February 2021)
The applicant failed to establish a prima facie claim for the respondent's indebtedness on a balance of probabilities, as the founding and replying affidavits lacked sufficient detail and supporting documentation such as invoices. The respondent's version, supported by evidence of defects and a bona fide dispute, could not be rejected as far-fetched or fanciful under the Plascon-Evans approach. The applicant persisted in liquidation proceedings despite a reasonable tender by the respondent, which constituted an abuse. Accordingly, the application for winding-up is dismissed, and the applicant…
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Tensile Rubber Compounds (Pty) Ltd v Rema Industries (43314/19) [2020] ZAGPPHC 60 (4 March 2020)
The applicant established on a balance of probabilities that the respondent is indebted and unable to pay its debts. The respondent's defences, including the alleged defectiveness of goods and exceptio non adimpleti contractus, do not amount to a bona fide and reasonable dispute. The respondent admitted indebtedness in correspondence and failed to comply with a payment proposal. The requirements for a final winding up order are satisfied, and the respondent's inability to pay is demonstrated by the outstanding debt and the service of a section 345 letter of demand.
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Paragon Lending Solutions (Pty) Limited v Weybridge Properties (Pty) Limited (2847/17) [2018] ZANCHC 66 (21 September 2018)
The High Court granted provisional liquidation against a company said to be unable to pay a secured loan debt and rejected its prescription and bona fide dispute defenses.
Baumann and Others v Pharmatech (Pty) Ltd (12584/2017) [2017] ZAGPPHC 887 (7 December 2017)
The High Court granted a provisional winding-up order after finding the respondent admitted a substantial debt, could not pay, and had not shown procedural non-compliance.
Gain v Mawela Properties Proprietary Limited (2013/20119) [2013] ZAGPJHC 304 (20 November 2013)
The High Court granted provisional winding-up after rejecting defences based on an alleged pactum de non petendo and lis pendens.
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