South Africa Case Law

Cooper N.O and Others v VAB Sales and Distribution (Pty) Ltd (1498/22)

Cooper N.O and Others v VAB Sales and Distribution (Pty) Ltd (1498/22) [2024] ZAWCHC 379; [2025] 1 All SA 178 (WCC) (19 November 2024)

Court

Western Cape High Court, Cape Town

Case number

1498/22

Judge

S Mthimunye

The court found that all four payments made by Cape Basic Products (Pty) Ltd (in liquidation) to VAB Sales and Distribution (Pty) Ltd after the commencement of winding up constitute void dispositions under section 341(2) of the Companies Act. The respondent’s argument that Savers Lane Holdings (Pty) Ltd was a separate entity was rejected, as evidence established that Savers Lane was merely the trading name of the third applicant. The payments were not made in the ordinary course of business but were preferential, giving the respondent an unfair advantage over other creditors. The court determ…

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• Winding Up Of Companies
• Void Dispositions
• Preferential Payments
• Creditor Protection
• Companies Act Section 341
• Liquidation Orders

Standard Bank of South Africa Ltd v Swartz and Others (1175/2022)

Standard Bank of South Africa Ltd v Swartz and Others (1175/2022) [2024] ZASCA 28 (22 March 2024)

Court

Supreme Court of Appeal

Case number

1175/2022

Judges

Mbatha, Gorven, Molefe, Bloem, Keightley

The SCA held that no business rescue application was properly before court and that the High Court had to enforce a prior consent order, granting final liquidation and sequestration.

• Business Rescue
• Liquidation Orders
• Sequestration
• Compromise Of Dispute
• Enforcement Of Court Orders
• Business-rescue

Usher N.O v Abrina 284 (Pty) Limited and Another (15185/22P)

Usher N.O v Abrina 284 (Pty) Limited and Another (15185/22P) [2023] ZAKZPHC 102 (6 October 2023)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

15185/22P

Judge

A.M. Annandale

The court found that the business rescue practitioner had established reasonable grounds for concluding that there was no reasonable prospect of rescuing the respondent. The amended business rescue plan was dependent on a capital injection that was not forthcoming despite multiple extensions. The respondent was commercially insolvent, unable to meet its operational expenses, and alternative avenues suggested by the intervening creditor were speculative and lacked factual foundation. The practitioner had considered and responded to all proposed alternatives, and the facts demonstrated that liq…

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• Business Rescue
• Winding Up
• Companies Act Section 141
• Creditor Rights
• Liquidation Orders

Hlumisa Technologies (Pty) Ltd and Another v Nedbank Ltd and Others (3304/2019)

Hlumisa Technologies (Pty) Ltd and Another v Nedbank Ltd and Others (3304/2019) [2019] ZAECGHC 124; 2020 (4) SA 553 (ECG) (10 December 2019)

Court

Eastern Cape High Court, Grahamstown

Case number

3304/2019

Judge

M.J. Lowe

The court held that the filing of an application for rescission of a final liquidation order does not automatically suspend the operation and execution of that order. The correct procedure for seeking suspension is to apply under Rule 45A of the Uniform Rules of Court. The court found that the applicants' reliance on common law and repealed Rule 49(11) was misplaced, and that the legislature's intention is clear from the current statutory framework. Automatic suspension would lead to abuse and frustrate the operation of court orders, particularly in liquidation matters. The application was th…

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• Liquidation Orders
• Suspension Of Judgments
• Rule 45a
• Rescission Applications

Budge and Others v Glyn-Cuthbert and Others (1046/2016)

Budge and Others v Glyn-Cuthbert and Others (1046/2016) [2018] ZASCA 18 (16 March 2018)

Court

Supreme Court of Appeal

Case number

1046/2016

Judges

Shongwe, Willis, Saldulker, Mbha, Van der Merwe

The Supreme Court of Appeal found that the first respondent did not repudiate the dissolution of partnership agreement. The conduct of both parties, including ongoing attempts to implement the agreement and acquiescence to certain payments, indicated that the agreement remained operative. The failure to incorporate Rusco was immaterial, and the so-called repudiation letter did not amount to a repudiation. The enrichment claim for repayment of the management fee to REM failed because the payment was acquiesced to and not at the expense of Wavelengths. The claim for repayment of remuneration to…

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• Dissolution Of Partnership
• Repudiation
• Unjust Enrichment
• Liquidation Orders
• Management Fee Dispute
• Costs Orders

Missouri Trading CC and Another v ABSA Bank and Others (8598/2011)

Missouri Trading CC and Another v ABSA Bank and Others (8598/2011) [2014] ZAKZDHC 6; 2014 (4) SA 55 (KZD) (20 March 2014)

Court

Kwazulu-Natal High Court, Durban

Case number

8598/2011

Judge

Koen

The court held that reinstatement of a deregistered close corporation under section 82(4) of the Companies Act 71 of 2008 operates prospectively from the date of reinstatement, not retrospectively from the date of deregistration. The absence of express retrospective wording in the current Act, contrasted with previous legislation, indicates a deliberate legislative choice. Deregistration dissolves the corporation, and its corporate personality ceases until reinstatement. Liquidation orders and other acts done during the period of deregistration are ordinarily void unless validated by a just a…

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• Deregistration Of Close Corporation
• Reinstatement Under Companies Act
• Retrospective Vs Prospective Effect
• Liquidation Orders
• Bona Vacantia
• Just And Equitable Relief

Crown Hill Prop 3 CC v Body Corporate Villa Luca (31765/2011)

Crown Hill Prop 3 CC v Body Corporate Villa Luca (31765/2011) [2013] ZAGPPHC 95 (11 April 2013)

Court

North Gauteng High Court, Pretoria

Case number

31765/2011

Judge

Mabena

The High Court granted rescission of a default judgment and set aside a liquidation order after finding the applicant had shown good cause and a bona fide defence.

• Rescission Of Judgment
• Service Of Process
• Sectional Title Disputes
• Liquidation Orders
• Rescission-of-judgment
• Service-of-process