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South Africa decisions
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Jordaan and Another v Le Roux and Others (070088/23) [2025] ZAGPPHC 651 (20 June 2025)
The High Court confirmed the provisional sequestration of the first respondent, finding acts of insolvency and reason to believe creditors may benefit.
Rayal Industrial (Pty) Ltd v Khan (076126/2023) [2025] ZAGPPHC 500 (13 May 2025)
The court found that the respondent’s late answering affidavit should be condoned in the interests of justice, as the applicant was not severely prejudiced and had filed a replying affidavit. On the merits, the applicant established a prima facie claim for a liquidated amount exceeding R90 million, supported by unchallenged evidence of fraudulent misappropriation by the respondent. The respondent’s defence consisted of blanket denials and unsupported allegations regarding the applicant’s deponent, which were rejected for lack of evidence and credibility. The respondent admitted participation…
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Globustarr Trading CO L.L.C v Mayana Properties Pty Ltd (2021/59389) [2025] ZAGPJHC 315; [2025] 3 All SA 160 (GJ); 2025 (4) SA 594 (GJ) (18 March 2025)
The court found that Mayana Properties (Pty) Ltd is hopelessly insolvent, with liabilities far exceeding its assets and no active business to rescue. The business rescue application was brought cynically and at the last possible moment to disrupt the liquidation proceedings, and lacked any reasonable prospect of success. The evidence of alleged fraud was unsupported and the respondent's conduct amounted to an abuse of process. Applying the Supreme Court of Appeal's decision in PFC Properties, the court held that section 131(6) of the Companies Act does not suspend liquidation proceedings wher…
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Alleluia Ministries International NPC v Kings Vision Holdings (Pty) Ltd and Others (2024/077307) [2025] ZAGPJHC 68 (31 January 2025)
The High Court dismissed an urgent application to prevent a claim being treated as abandoned under section 359 of the Companies Act 61 of 1973.
Van Der Merwe and Associates Incorporated v Muller N.O and Others (117119/2023) [2024] ZAGPPHC 991 (2 October 2024)
The court found that the funds held in trust by the applicant, Van Der Merwe and Associates Incorporated, constitute assets of the insolvent company and must be recovered by the liquidators in terms of section 391 of the Companies Act 61 of 1973. The fourth claimant, Mr Viljoen, as a judgment creditor, does not have a legal entitlement to direct payment of the funds held in trust, but retains the right to lodge a claim as a creditor of the insolvent estate. The court relied on established principles that, upon liquidation, all assets—including those held in trust or attached in execution—vest…
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Standard Bank of South Africa Ltd v Tornado Boerdery en Algemene Handelaars CC (131/2022) [2024] ZANCHC 61 (12 July 2024)
The High Court granted provisional liquidation against the respondent after finding it financially distressed, unable to pay its debt, and that business rescue had failed.
SA Concerts (Pty) Ltd and Others v All Encompassing Switching (Pty) Ltd (045881/2024) [2024] ZAGPPHC 449 (17 May 2024)
The court found that the respondent is indebted to the first applicant in an amount exceeding R100.00, as evidenced by the VMW records and the respondent's own admissions. The respondent failed to reconcile and pay the debt despite statutory demand and did not raise any bona fide or substantive defence to the claim. The alleged damages and criminal complaints were irrelevant to the liquidation proceedings. The urgency of the matter was established by the respondent's ongoing failure to reconcile and discharge its debts, which placed all creditors at risk. The court held that service requireme…
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Adelakun N.O and Another v Worldpay LLC (3484/19 and 3485/19) [2024] ZAWCHC 129 (26 April 2024)
The court found that the applicants, including Mr. Adelakun, the Trust, Touch of Fame Group, and Touch of Energy Corporation, failed to establish any exceptional circumstances or bona fide defence that would justify rescission of the sequestration orders under section 149(2) of the Insolvency Act or Rule 42(1)(a). The applicants had fully participated in the original proceedings, were legally represented, and had unsuccessfully appealed the orders to the Supreme Court of Appeal and Constitutional Court. The alleged exoneration in foreign criminal proceedings was irrelevant to the civil standa…
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Shivanand and Another v Krugkor Franchise (Pty) Ltd and Others (A2023/034940) [2024] ZAGPJHC 389 (18 April 2024)
The High Court dismissed an appeal seeking rescission of Shivcom CC’s winding-up order, finding no exceptional circumstances and imposing attorney-and-client costs.
IPP Mining and Materials Handling (Pty) Ltd v Keaton Mining (Pty) Ltd (2023/101248) [2024] ZAGPPHC 200 (27 February 2024)
The court found that the respondent failed to pay its debts after proper delivery of a section 345 notice, establishing grounds for liquidation. The respondent's urgent business rescue application was not properly issued and served in accordance with section 131(6) of the Companies Act 71 of 2008, as it was filed from the incorrect division, lacked a case number, and did not provide proof of service to all affected persons. The Supreme Court of Appeal in Lutchman clarified that strict compliance with service and notification requirements is necessary to suspend liquidation proceedings. The re…
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