South Africa Case Law

Smith N.O and Another v Magnus N.O and Others (4220/2022; 4221/2022; 4222/2022)

Smith N.O and Another v Magnus N.O and Others (4220/2022; 4221/2022; 4222/2022) [2025] ZAFSHC 109 (20 March 2025)

Court

Free State High Court, Bloemfontein

Case number

4220/2022; 4221/2022; 4222/2022

Judges

Mhlambi, Loubser, Daniso

The court found that the payments made by the business rescue practitioner to the respondents after the commencement of winding-up proceedings were not bona fide, not made in the ordinary course of business, and improperly preferred certain creditors over others. The business rescue practitioner acted outside the scope of the adopted business rescue plan and without proper creditor approval. The respondents were aware of the company's financial distress and the pending liquidation application. The courts a quo misapplied the law by validating the payments under section 341(2) of the Companies…

Source excerpt

• Business Rescue
• Void Dispositions
• Companies Act 1973
• Preferent Creditors
• Liquidation Proceedings
• Judicial Discretion

Shackleton Credit Management Pty Ltd v Tshabalala and Others (804/2018)

Shackleton Credit Management Pty Ltd v Tshabalala and Others (804/2018) [2024] ZAFSHC 367 (15 November 2024)

Court

Free State High Court, Bloemfontein

Case number

804/2018

Judge

Opperman

High Court interlocutory ruling condoned late filing, upheld a non-joinder point, and allowed joinder of the Registrar of Deeds and Herholdts Lighting Division.

• Joinder Of Parties
• Rule 46a Executability
• Condonation Of Late Filing
• Preferent Creditors
• Sale In Execution
• Joinder-of-parties

Bailey N.O. and Another v Enderstein Van Der Merwe Inc (9400/2022)

Bailey N.O. and Another v Enderstein Van Der Merwe Inc (9400/2022) [2023] ZAWCHC 251 (12 October 2023)

Court

Western Cape High Court, Cape Town

Case number

9400/2022

Judge

Mantame

The High Court set aside payments by the insolvent Laumas Trust to attorneys for legal fees incurred by Mr Massyn and related entities under section 26(1)(b).

• Insolvency Act Section 26
• Disposition Without Value
• Trust Liability
• Preferent Creditors
• Ponzi Scheme Liquidation
• Insolvency-act-section-26

Theko and Others v Sinokuhle Developments Consultants (Pty) Ltd and Others (4937/2021)

Theko and Others v Sinokuhle Developments Consultants (Pty) Ltd and Others (4937/2021) [2022] ZAMPMBHC 89 (14 December 2022)

Court

Mbombela High Court, Mpumalanga

Case number

4937/2021

Judge

Mashile

The court dismissed employees’ urgent application to stay a final liquidation order, holding they lacked locus standi because their contracts were only suspended, not terminated.

• Locus Standi
• Liquidation Proceedings
• Severance Pay
• Preferent Creditors
• Locus-standi
• Liquidation-proceedings

City of Johannesburg Metropolitan Municipality v Sheriff of the High Court Randburg South West and Others (42498/2016)

City of Johannesburg Metropolitan Municipality v Sheriff of the High Court Randburg South West and Others (42498/2016) [2019] ZAGPPHC 104 (19 March 2019)

Court

North Gauteng High Court, Pretoria

Case number

42498/2016

Judge

AC Basson

The High Court dismissed the City of Johannesburg’s application, finding the Sheriff complied with Rule 46 in a sale in execution and that the City’s declaratory issues were academic.

• Sale In Execution
• Municipal Debt Collection
• Preferent Creditors
• Uniform Rules Of Court
• Service Of Process
• Sale-in-execution

Commissioner of South African Revenue Services v Beginsel NO and Others (15080/12)

Commissioner of South African Revenue Services v Beginsel NO and Others (15080/12) [2012] ZAWCHC 194; 2013 (1) SA 307 (WCC); 75 SATC 87 (31 October 2012)

Court

Western Cape High Court, Cape Town

Case number

15080/12

Judge

P B Fourie

The High Court held that SARS was not a preferent creditor in business rescue, upheld adoption of the plan, and refused to convert the company to liquidation.

• Business Rescue
• Creditor Voting Rights
• Preferent Creditors
• Insolvency Act Interpretation
• Substantial Compliance
• Liquidation Vs Business Rescue

Mabaso and Others v Barnard NO and Others (6962/2011, 15956/2012)

Mabaso and Others v Barnard NO and Others (6962/2011, 15956/2012) [2012] ZAGPPHC 187 (31 August 2012)

Court

North Gauteng High Court, Pretoria

Case number

6962/2011,15956/2012

Judge

J.W Louw

Former employees of an insolvent company sought payment of preferent claims and freezing orders. The court held their claims were premature and dismissed the applications.

• Liquidation And Distribution Account
• Preferent Creditors
• Employee Claims In Liquidation
• Free Residue
• Condonation Of Late Affidavits
• Liquidation-and-distribution-account

Sheriff for the Magistrate Court Kuilsriver and Another v Registrar of Deeds Cape Town and Another (9815/2011)

Sheriff for the Magistrate Court Kuilsriver and Another v Registrar of Deeds Cape Town and Another (9815/2011) [2011] ZAWCHC 109 (24 June 2011)

Court

Western Cape High Court, Cape Town

Case number

9815/2011

Judge

Bozalek

The court held that section 66(4) of the Magistrates' Courts Act only causes an attachment to lapse after one year if the property is subject to a claim preferent to that of the judgment creditor. In this case, ABSA Bank was the only preferent creditor, and thus the attachment did not lapse. The Registrar of Deeds' refusal to pass transfer based on the lapse of the attachment was incorrect. The requirements of judicial oversight set out in Japhta and Gundwana were satisfied, as the magistrate had declared the property executable. There was no basis for joining the Minister of Justice, nor for…

Source excerpt

• Magistrates Courts Act Section 66
• Warrants Of Execution
• Preferent Creditors
• Transfer Of Immovable Property
• Judicial Oversight