Rossgro Feed (Pty) Ltd v Van der Westhuizen (766/2021)
Rossgro Feed (Pty) Ltd v Van der Westhuizen (766/2021) [2023] ZALMPPHC 89 (28 September 2023)
The court found that the defendant's special plea of compromise had no merit because the business rescue plan was not implemented and did not bind the liquidator. The defendant, as director of Procprops, placed orders for feed from the plaintiff knowing that Procprops had no credit facility and was not creditworthy. The defendant used Serfontein's account without authority and failed to clarify the arrangement or provide evidence to support his version. The defendant signed an acknowledgment of debt in both his personal and representative capacities, accepting liability should Procprops fail…
Source excerpt
- Reckless Trading
- Personal Liability Of Directors
- Acknowledgement Of Debt
- Business Rescue
- Compromise Of Claim
- Fraudulent Conduct