South Africa Case Law

Forty Squares (Pty) Ltd and Another v Noris Fresh Produce (Pty) Ltd t/a Golden Harvest and Others (4200/2023)

Forty Squares (Pty) Ltd and Another v Noris Fresh Produce (Pty) Ltd t/a Golden Harvest and Others (4200/2023) [2023] ZAWCHC 78; 2023 (5) SA 249 (WCC) (20 April 2023)

Court

Western Cape High Court, Cape Town

Case number

4200/2023

Judge

P.A.L. Gamble

The court found that the business rescue application was not supported by the major creditors, who collectively held the majority of the company's debt and had stated under oath they would not vote for any rescue plan. Without creditor support, no plan could be adopted, rendering the application futile. The company had no premises, workforce, or reputation, and the proposed post commencement finance was manifestly insufficient relative to the liabilities. The plan's duration was excessively long, and the projected returns were unrealistic. The application was brought hastily and appeared not…

Source excerpt

• Business Rescue
• Companies Act Section 131
• Liquidation Proceedings
• Creditor Opposition
• Post Commencement Finance
• Attorney And Client Costs

Motaung v TIS Invest (Pty) Ltd and Others (32686/2019)

Motaung v TIS Invest (Pty) Ltd and Others (32686/2019) [2019] ZAGPJHC 533 (13 December 2019)

Court

South Gauteng High Court, Johannesburg

Case number

32686/2019

Judge

E F Dippenaar

The court found that the applicant failed to provide sufficient evidence of her locus standi as a shareholder, but did not make a determinative ruling on this technical point. The central issue was whether there was a reasonable prospect of rescuing TIS Invest (Pty) Ltd. The applicant did not present adequate financial information, such as financial statements or a comprehensive list of assets and liabilities, to support her contention that TIS could be restored to solvency. The schedules of prospective contracts and back orders were speculative and unsupported by documentation or evidence of…

Source excerpt

• Business Rescue
• Locus Standi
• Reasonable Prospect Of Rescue
• Creditor Opposition
• Companies Act Section 131

Gravato N.O v Cloete (10136 / 2015)

Gravato N.O v Cloete (10136 / 2015) [2016] ZAGPPHC 207 (18 March 2016)

Court

North Gauteng High Court, Pretoria

Case number

10136 / 2015

Judge

Mavundla

The court dismissed a voluntary surrender application for defective section 4(3) compliance and failure to make full and frank disclosure of assets.

• Voluntary Surrender
• Insolvency Act Compliance
• Non Disclosure Of Assets
• Creditor Opposition
• Voluntary-surrender
• Insolvency-act-compliance