South Africa Case Law

Del Arbre Body Corporate and Another v Mabeta and Another (057842/2022)

Del Arbre Body Corporate and Another v Mabeta and Another (057842/2022) [2023] ZAGPJHC 1262 (3 November 2023)

Court

South Gauteng High Court, Johannesburg

Case number

057842/2022

Judge

Siwendu

The court found that the Close Corporation is unable to pay its debts as required by the Close Corporations Act and Companies Act. The respondent did not dispute the debt or its due and payable status, and only made partial payments insufficient to cover arrears. The force majeure defence based on COVID-19 was rejected, as intermittent payments do not constitute absolute impossibility and financial hardship does not excuse statutory obligations. The applicants are legally obliged to collect all levies, and the respondent failed to demonstrate a bona fide and reasonable dispute of indebtedness…

Source excerpt

• Close Corporation Liquidation
• Statutory Inability To Pay Debt
• Force Majeure Defence
• Levy Arrears
• Sectional Titles Management
• Judicial Discretion In Liquidation

Firstrand Bank Limited v Ibest (Pty) Ltd (A88/2021)

Firstrand Bank Limited v Ibest (Pty) Ltd (A88/2021) [2022] ZAGPPHC 906 (22 November 2022)

Court

North Gauteng High Court, Pretoria

Case number

A88/2021

Judges

R G Tolmay, Selby Baqwa, C Sardiwalla

Appeal against dismissal of a winding-up application upheld; the respondent company was placed under final winding up.

• Winding Up Of Company
• Creditor Rights
• Company Inability To Pay Debts
• Settlement Agreement
• Judicial Discretion In Liquidation
• Company-liquidation

Future Corp (Pty) Ltd v Qingqani Ma-Afrika CC (4769/2015)

Future Corp (Pty) Ltd v Qingqani Ma-Afrika CC (4769/2015) [2016] ZAECPEHC 53 (20 September 2016)

Court

Eastern Cape High Court, Port Elizabeth

Case number

4769/2015

Judge

RB Laher

The respondent has failed to pay its admitted debt to the applicant and has not presented any credible or detailed plan for restructuring or settling its liabilities. The respondent's reliance on potential future awards and pending payments is insufficient to demonstrate solvency or justify the exercise of the court's discretion to refuse or postpone liquidation. The extended period of default and lack of liquid assets indicate both commercial and factual insolvency. The applicant, as a creditor with an unpaid debt, is entitled, ex debito justitiae, to a final winding-up order.

Source excerpt

• Winding Up Of Close Corporation
• Commercial Insolvency
• Creditor Entitlement
• Judicial Discretion In Liquidation

Macru Farming CC v Standard Bank of South Africa Ltd. (64/07)

Macru Farming CC v Standard Bank of South Africa Ltd. (64/07) [2008] ZASCA 20 (27 March 2008)

Court

Supreme Court of Appeal

Case number

64/07

Judges

Farlam, Van Heerden, Cachalia

The Supreme Court of Appeal dismissed an appeal against a final winding-up order, finding no improper inducement and no basis to postpone liquidation.

• Winding Up Of Close Corporations
• Creditor Liquidation Applications
• Commercial Insolvency
• Judicial Discretion In Liquidation
• Code Of Banking Practice
• Privileged Information Disclosure