South Africa Case Law

Unlimited Group (Pty) Ltd v Mamogale (D13829/2023)

Unlimited Group (Pty) Ltd v Mamogale (D13829/2023) [2024] ZAKZDHC 64 (16 September 2024)

Court

Kwazulu-Natal High Court, Durban

Case number

D13829/2023

Judge

Mossop

The court found that both the applicant and respondent had obtained taxed costs orders against each other, with the respondent's Labour Court costs order exceeding the applicant's High Court costs order. The requirements for set-off were met: both debts were liquidated, due, and mutually owed. Set-off operates automatically by law and does not require consent. The applicant's argument that the respondent's legal costs were paid by his insurer was rejected as irrelevant; the insurance contract is res inter alios acta. As a result, the applicant was no longer a creditor of the respondent and la…

Source excerpt

• Sequestration
• Set Off
• Costs Orders
• Act Of Insolvency
• Creditor Status

Commissioner for The South African Revenue Services v Porrit N.O. and Others (9260/2013)

Commissioner for The South African Revenue Services v Porrit N.O. and Others (9260/2013) [2022] ZAKZPHC 53 (16 September 2022)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

9260/2013

Judge

Mathenjwa AJ

The High Court granted SARS leave to amend its particulars of claim in a liquidation-related dispute, finding no new cause of action or relevant prejudice.

• Amendment Of Pleadings
• Income Tax Debt
• Liquidation And Distribution
• Creditor Status
• Doctrine Of Election
• Amendment-of-pleadings

Schnell NO and Others v FMI Trading (Pty) Ltd (60068/19)

Schnell NO and Others v FMI Trading (Pty) Ltd (60068/19) [2022] ZAGPPHC 387 (2 June 2022)

Court

North Gauteng High Court, Pretoria

Case number

60068/19

Judge

Pillay

The High Court granted a provisional winding-up order against FMI Trading (Pty) Ltd after finding the company was factually insolvent and the fourth applicant was a creditor.

• Company Winding Up
• Factual Insolvency
• Creditor Status
• Shareholder Loans
• Financial Statement Misrepresentation
• Company-winding-up

Knoop N.O. and Others v Boardware (Pty) Ltd (AR236/21)

Knoop N.O. and Others v Boardware (Pty) Ltd (AR236/21) [2022] ZAKZPHC 13 (22 April 2022)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR236/21

Judges

Steyn, Chili, Hadebe

The High Court held that a mistaken overpayment to a company in liquidation was not a provable insolvency claim, and ordered direct repayment.

• Unjustified Enrichment
• Condictio Indebiti
• Liquidation Procedure
• Creditor Status
• Insolvency Act Section 44
• Liquidation-procedure

De Jager N.O and Another v Mantis Investments Holdings (Pty) Ltd and Another (3711/2018)

De Jager N.O and Another v Mantis Investments Holdings (Pty) Ltd and Another (3711/2018) [2021] ZAECGHC 120 (2 December 2021)

Court

Eastern Cape High Court, Grahamstown

Case number

3711/2018

Judge

Beneke

The court held that the Master’s acceptance of ECDC’s claim against the company in liquidation constitutes an administrative act with legal effect until set aside on review. This acceptance confers creditor status on ECDC, which is binding in rem and precludes the defendants from revisiting or contesting the indebtedness or the claim in subsequent proceedings unless exceptional circumstances exist. The defendants failed to demonstrate any exceptional circumstances or hardship that would justify deviation from the principle. The court found that the defendants are not lawfully entitled to revi…

Source excerpt

• Insolvency Act Section 31
• Collusive Disposition
• Creditor Status
• Administrative Action
• Res Judicata
• Liquidation Proceedings

Linde v Richard Wayne Rawlins N.O. and Others (EL 860/20)

Linde v Richard Wayne Rawlins N.O. and Others (EL 860/20) [2021] ZAECELLC 18 (15 June 2021)

Court

Eastern Cape High Court, East London Local Court

Case number

EL 860/20

Judge

Tokota

The court found that the applicant is a creditor of the Trust, as he invested R500,000 and the Trust acknowledged its indebtedness in writing. The claim is liquidated, as the amount is fixed and certain. The respondents' argument that the investment's value fluctuates is irrelevant, given the written acknowledgment of debt. The court rejected the allegation of duress, finding no credible evidence of threats or intimidation; mere discomfort or disagreement does not constitute duress. The notice signed by the trustees constituted an act of insolvency under section 8(g) of the Insolvency Act. Th…

Source excerpt

• Insolvency Act Section 8g
• Liquidated Claim
• Creditor Status
• Duress
• Advantage To Creditors

True North Holdings (Pty) Limited and Another v M D Individually Designed Handcrafted Jewellery (Propietary) Limited (41251/2019)

True North Holdings (Pty) Limited and Another v M D Individually Designed Handcrafted Jewellery (Propietary) Limited (41251/2019) [2020] ZAGPJHC 373 (25 November 2020)

Court

South Gauteng High Court, Johannesburg

Case number

41251/2019

Judge

L R Adams

Final liquidation was refused because the alleged debts arose from an unrealized joint venture and were bona fide disputed on reasonable grounds.

• Company Liquidation
• Bona Fide Dispute
• Winding Up Proceedings
• Creditor Status
• Joint Venture Dispute
• Company-liquidation

Rooplal NO v Firmanox Proprietary Limited (43508/2019)

Rooplal NO v Firmanox Proprietary Limited (43508/2019) [2020] ZAGPJHC 288 (20 November 2020)

Court

South Gauteng High Court, Johannesburg

Case number

43508/2019

Judge

P.A. Meyer

The High Court granted a final winding-up order against Firmanox after finding VBS Mutual Bank was a creditor and Firmanox’s dispute was not reasonable.

• Company Liquidation
• Creditor Status
• Disputed Debt
• Winding Up Order
• Companies Act 1973
• Plascon Evans Rule

Havenga v Diovision (Pty) Limited (86173/2014)

Havenga v Diovision (Pty) Limited (86173/2014) [2017] ZAGPPHC 1207 (15 June 2017)

Court

North Gauteng High Court, Pretoria

Case number

86173/2014

Judge

M J Teffo

The High Court granted provisional winding-up of the respondent after finding the applicant was a creditor and the dispute over commission was not bona fide.

• Provisional Winding Up
• Locus Standi
• Estate Agency Affairs Act
• Commission Claim
• Bona Fide Dispute
• Creditor Status

Tresso Trading 490 (Proprietary) Limited T/A Nexxus Corporation v Orion Cold storage (Proprietary) Limited (13638/2013)

Tresso Trading 490 (Proprietary) Limited T/A Nexxus Corporation v Orion Cold storage (Proprietary) Limited (13638/2013) [2014] ZAWCHC 43 (24 March 2014)

Court

Western Cape High Court, Cape Town

Case number

13638/2013

Judge

D H Zondi

The court found that the applicant had not established a prima facie case for the relief sought, as the respondent's defence raised material disputes of fact regarding the existence of the debt and the respondent's role as agent or principal. The respondent's financial statements demonstrated solvency, and its denial of indebtedness was supported by reasonable grounds and documentation. The court held that the probabilities were evenly balanced and that the matter could not be resolved on the papers. Accordingly, the application was postponed and referred to oral evidence to determine whether…

Source excerpt

• Provisional Winding Up
• Bona Fide Dispute Of Debt
• Agency Relationship
• Creditor Status
• Oral Evidence Referral