South Africa Case Law

Globustarr Trading CO L.L.C v Mayana Properties Pty Ltd (2021/59389)

Globustarr Trading CO L.L.C v Mayana Properties Pty Ltd (2021/59389) [2025] ZAGPJHC 315; [2025] 3 All SA 160 (GJ); 2025 (4) SA 594 (GJ) (18 March 2025)

Court

South Gauteng High Court, Johannesburg

Case number

2021/59389

Judge

H A van der Merwe

The court found that Mayana Properties (Pty) Ltd is hopelessly insolvent, with liabilities far exceeding its assets and no active business to rescue. The business rescue application was brought cynically and at the last possible moment to disrupt the liquidation proceedings, and lacked any reasonable prospect of success. The evidence of alleged fraud was unsupported and the respondent's conduct amounted to an abuse of process. Applying the Supreme Court of Appeal's decision in PFC Properties, the court held that section 131(6) of the Companies Act does not suspend liquidation proceedings wher…

Source excerpt

• Company Liquidation
• Business Rescue
• Abuse Of Process
• Creditor Claims
• Section 131 Companies Act
• Costs De Bonis Propriis

Firstrand Bank Limited v Optical Mediaworx Logistics (Pty) Ltd and Another (2024/003809; 2024/024772)

Firstrand Bank Limited v Optical Mediaworx Logistics (Pty) Ltd and Another (2024/003809; 2024/024772) [2025] ZAGPJHC 238 (5 March 2025)

Court

South Gauteng High Court, Johannesburg

Case number

2024/003809; 2024/024772

Judge

E Dreyer

The High Court struck a business rescue application from the roll for defective service and granted final winding-up of the company.

• Business Rescue
• Final Winding Up
• Section 131 Companies Act
• Service Of Process
• Affected Persons Notification
• Business-rescue

STS Tyres (Pty) Ltd v Bamboo Rock Plant (Pty) Ltd (2024-012285)

STS Tyres (Pty) Ltd v Bamboo Rock Plant (Pty) Ltd (2024-012285) [2024] ZAGPPHC 490 (30 May 2024)

Court

North Gauteng High Court, Pretoria

Case number

2024-012285

Judge

GN Moshoana

The court held that rule 6(12)(c) of the Uniform Rules of Court does not permit reconsideration of a provisional liquidation order granted in non-urgent proceedings. The applicant's reliance on this rule was misplaced, as the order was made in normal unopposed motion proceedings. The court further found that the making of a business rescue application under section 131(6) of the Companies Act, 2008 suspends only the process of realisation of assets in liquidation, not the granting of a winding-up order. The provisional liquidation order issued by Collis J was therefore not a nullity, even tho…

Source excerpt

• Provisional Liquidation
• Business Rescue
• Rule 6 12 C
• Section 131 Companies Act
• Abuse Of Process

Orion Real Estate Limited v ERF 195 Elma Park Limited and Others (3708/2021)

Orion Real Estate Limited v ERF 195 Elma Park Limited and Others (3708/2021) [2023] ZAGPJHC 501 (17 May 2023)

Court

South Gauteng High Court, Johannesburg

Case number

3708/2021

Judge

Gilbert AJ

The High Court converted a liquidation into business rescue by consent, joined SBD Investments, ordered transfer of Erf 257, and directed costs to follow the business rescue.

• Business Rescue Conversion
• Affected Party Intervention
• Section 131 Companies Act
• Section 341 Companies Act 1973
• Consent Order
• Costs In Business Rescue

Body Corporate of Candice Glades v Derrocks Attorneys and Another (2021 / 4629)

Body Corporate of Candice Glades v Derrocks Attorneys and Another (2021 / 4629) [2022] ZAGPJHC 382 (6 June 2022)

Court

South Gauteng High Court, Johannesburg

Case number

2021 / 4629

Judge

Molahlehi

The court found that the respondent was indebted to the applicant and failed to pay the amounts due under the overdraft and loan agreements. The respondent's defences regarding alleged overcharging and entitlement to unit trust proceeds were rejected as unfounded. The business rescue application did not suspend the liquidation proceedings because the statutory requirements for notification and service to all affected persons, including major creditors, were not met. The court held that strict compliance with section 131(6) of the Companies Act is required to trigger suspension, and in this ca…

Source excerpt

• Winding Up Of Company
• Business Rescue Suspension
• Credit Facility Dispute
• Section 131 Companies Act
• Section 345 Companies Act

Dolphin Management and Others v Belmont Development Company (Pty) Limited and Others (4704/2015)

Dolphin Management and Others v Belmont Development Company (Pty) Limited and Others (4704/2015) [2015] ZAECGHC 151 (10 December 2015)

Court

Eastern Cape High Court, Grahamstown

Case number

4704/2015

Judge

S M Mbenenge

The court granted a business rescue application, finding the company financially distressed and that rescue had a reasonable prospect of success.

• Business Rescue
• Financial Distress
• Section 131 Companies Act
• Section 163 Companies Act
• Creditor Protection
• Business-rescue

CCMA, LLC v Royal Limpopo Resources (Pty) Ltd (29448/13)

CCMA, LLC v Royal Limpopo Resources (Pty) Ltd (29448/13) [2014] ZAGPPHC 221 (7 March 2014)

Court

North Gauteng High Court, Pretoria

Case number

29448/13

Judge

BAM

The court postponed a winding-up application sine die after learning the respondent had initiated business rescue proceedings and was not yet shown to be non-compliant with section 131.

• Business Rescue
• Winding Up
• Section 131 Companies Act
• Postponement Of Application
• Business-rescue
• Winding-up

Lidino Trading 580 CC v Cross Point Trading (Pty) Ltd , In re: Mabe v Cross Point Trading 215 (Pty) Ltd (2130/2012)

Lidino Trading 580 CC v Cross Point Trading (Pty) Ltd , In re: Mabe v Cross Point Trading 215 (Pty) Ltd (2130/2012) [2012] ZAFSHC 155 (23 August 2012)

Court

Free State High Court, Bloemfontein

Case number

2130/2012

Judge

Kruger

The court refused business rescue and granted provisional liquidation, finding no workable rescue plan, no ongoing business, and a deadlock between the directors.

• Business Rescue
• Liquidation
• Deadlock Between Directors
• Just And Equitable Winding Up
• Section 131 Companies Act
• Oppression