South Africa Case Law

Firstrand Bank Ltd trading inter alia as First National Bank v Dr Bongani Investments 066 CC (2037/2023)

Firstrand Bank Ltd trading inter alia as First National Bank v Dr Bongani Investments 066 CC (2037/2023) [2025] ZALMPPHC 69 (2 April 2025)

Court

Limpopo High Court, Polokwane

Case number

2037/2023

Judge

Makoti

The High Court ordered the final liquidation of a close corporation after finding it commercially insolvent and rejecting lis alibi pendens and service objections.

• Close Corporation Liquidation
• Commercial Insolvency
• Just And Equitable Winding Up
• Service Requirements
• Lis Alibi Pendens
• Close-corporation-liquidation

Darne N.O v Druids Garden (Pty) Ltd (2023/091315)

Darne N.O v Druids Garden (Pty) Ltd (2023/091315) [2024] ZAGPPHC 400 (9 April 2024)

Court

North Gauteng High Court, Pretoria

Case number

2023/091315

Judge

Labuschagne

The court found that the existence of the applicant's claim against the respondent is bona fide disputed on reasonable grounds, particularly due to objective evidence indicating a conversion of the loan into shares and subsequent conduct by the deceased and the respondent. As a result, liquidation proceedings are not competent. Additionally, the application failed to comply with the peremptory service requirements of section 346(4A) of the Companies Act, as it was not properly served on a trade union or employees as required. The court held that non-compliance with these statutory requirement…

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• Company Liquidation
• Bona Fide Debt Dispute
• Service Requirements
• Conversion Of Loan To Equity

ABSA Bank Limited v Lucent Properties 18 CC (13088/2017)

ABSA Bank Limited v Lucent Properties 18 CC (13088/2017) [2022] ZAGPJHC 685 (13 September 2022)

Court

South Gauteng High Court, Johannesburg

Case number

13088/2017

Judge

MAKUME

The High Court granted ABSA Bank a final winding-up order against Lucent Properties 18 CC after holding that the debt was admitted and enforceable.

• Final Winding Up
• Creditor Liquidation
• Settlement Agreement
• Service Requirements
• Insolvency Act
• Company Act Section 346a

FirstRand Bank Limited v Da Silva (17/32539)

FirstRand Bank Limited v Da Silva (17/32539) [2022] ZAGPJHC 387 (10 June 2022)

Court

South Gauteng High Court, Johannesburg

Case number

17/32539

Judge

Mudau

The applicant established a prima facie case for the provisional sequestration of the respondent by demonstrating that the respondent is indebted to the applicant under a written suretyship agreement and that his liabilities substantially exceed his assets. The respondent failed to provide credible evidence disputing his indebtedness or demonstrating solvency. The court found that the deponent to the founding affidavit was duly authorised and possessed the requisite knowledge. Statutory service requirements were satisfied, as the applicant took reasonable steps to serve employees and made the…

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• Suretyship Liability
• Provisional Sequestration
• Advantage To Creditors
• National Credit Act Exclusion
• Service Requirements
• Disputed Debt

Solotrade 1088 (Pty) Ltd v Kortec Auto (Pty) Ltd (M486/2019)

Solotrade 1088 (Pty) Ltd v Kortec Auto (Pty) Ltd (M486/2019) [2021] ZANWHC 80 (23 November 2021)

Court

North West High Court, Mafikeng

Case number

M486/2019

Judge

R D Hendricks

The court found that the respondent is commercially insolvent, as it cannot pay its admitted debt to the applicant and its liabilities exceed its assets. The technical requirements for the liquidation application were met, and the respondent's financial position, despite some improvement, remains insufficient to discharge its debt. Although the respondent pleaded for the court to exercise its discretion against liquidation due to the interests of other creditors and employees, the court determined that a provisional liquidation order is appropriate. This allows interested parties, including o…

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• Company Liquidation
• Commercial Insolvency
• Creditor Petition
• Court Discretion In Liquidation
• Service Requirements
• Costs In Liquidation

National Housing Finance Corp Ltd v Housing Association Blaauwberg (21304/2009)

National Housing Finance Corp Ltd v Housing Association Blaauwberg (21304/2009) [2010] ZAWCHC 11 (9 February 2010)

Court

Western Cape High Court, Cape Town

Case number

21304/2009

Judge

Cleaver

The High Court granted a provisional winding-up order against Housing Association Blaauwberg, finding it unable to pay its debts and that liquidation was just and equitable.

• Provisional Liquidation
• Unable To Pay Debts
• Just And Equitable Winding Up
• Creditor Rights
• Urgency In Liquidation
• Service Requirements

Moodliar NO and Others v Hendricks NO and Others (7403/2009)

Moodliar NO and Others v Hendricks NO and Others (7403/2009) [2009] ZAWCHC 153; 2011 (2) SA 199 (WCC) (8 September 2009)

Court

Western Cape High Court, Cape Town

Case number

7403/2009

Judge

Davis

The court found that, although there were disputes regarding strict compliance with service requirements under section 346(4)(a), there was substantial compliance, particularly with SARS. The financial position of Cape Kingdom was tenuous, with liabilities far exceeding assets, even on the respondents' own figures. The powers sought by the applicants were necessary for the proper administration of the company, given the lack of cooperation from Stander and the complexity of the issues, including the need for legal advice and the ability to terminate leases and contracts. The court held that t…

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• Provisional Liquidation
• Powers Of Liquidator
• Service Requirements
• Creditor Standing
• Company Insolvency