South Africa Case Law

Schipper v Tirisano Property Group (Pty) Ltd and Others (22983/23; 16033/2023; 18657/2023; 3973/2024)

Schipper v Tirisano Property Group (Pty) Ltd and Others (22983/23; 16033/2023; 18657/2023; 3973/2024) [2024] ZAWCHC 125 (8 May 2024)

Court

Western Cape High Court, Cape Town

Case number

22983/23; 16033/2023; 18657/2023; 3973/2024

Judge

Blumberg

The court found that Tirisano Property Group (Pty) Ltd failed to establish a reasonable prospect of rescue as required by section 131(4) of the Companies Act. The proposals for restoring solvency were speculative, unsupported by reliable evidence, and contradicted by chronic financial distress and failed attempts to raise finance. The majority creditor, Courthiel, opposed business rescue and would not support any plan, which is a legitimate obstacle. The company had been mismanaged with reckless disregard for creditors, and the delay in seeking business rescue undermined the appropriateness o…

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• Business Rescue
• Provisional Liquidation
• Creditor Intervention
• Just And Equitable Winding Up
• Companies Act Section 131
• Standing Of Creditors

Vantage Mezzanine Fund II Partnership and Another v Hopeson and Others (2022-045978)

Vantage Mezzanine Fund II Partnership and Another v Hopeson and Others (2022-045978) [2024] ZAGPJHC 235 (8 March 2024)

Court

South Gauteng High Court, Johannesburg

Case number

2022/045978

Judge

Manoim

The court held that its previous order amending the particulars of claim was not final, definitive, or dispositive of the parties' rights, and thus not appealable under the Zweni test. The issue of whether the plaintiffs, as creditors, have standing to seek disqualification of directors under section 162 of the Companies Act is a factual enquiry to be determined at trial, not a point of substantive law finally decided at this stage. The court rejected the argument that leave of the court is required before issuing summons under section 157(1)(d), following previous decisions and noting that t…

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• Leave To Appeal
• Standing Of Creditors
• Delinquent Directors
• Companies Act Section 162
• Public Interest Standing

Pruta Securities (Jersey) Limited v Roper N.O and Others (EL1522/2023)

Pruta Securities (Jersey) Limited v Roper N.O and Others (EL1522/2023) [2023] ZAECELLC 31 (24 October 2023)

Court

Eastern Cape High Court, East London Local Court

Case number

EL1522/2023

Judge

T.V Norman

The court held that a post-commencement financier had standing, but upheld objections on non-joinder and non-service, postponing the business rescue dispute.

• Business Rescue
• Joinder Of Parties
• Urgent Interdict
• Post Commencement Finance
• Service Of Process
• Standing Of Creditors

First National Bank Ltd v Matebese N.O and Another (5311/2017)

First National Bank Ltd v Matebese N.O and Another (5311/2017) [2018] ZAECGHC 115 (15 November 2018)

Court

Eastern Cape High Court, Grahamstown

Case number

5311/2017

Judge

Plasket

The court found that the executor had failed to submit a liquidation and distribution account as required by section 35(1) of the Administration of Estates Act, and no extension had been granted by the Master. The applicant, as a creditor with a claim based on a loan agreement secured by a mortgage bond, retained an interest in the estate even if the claim was disputed or lodged late. The High Court had jurisdiction over the matter, and the mortgage bond did not restrict proceedings to the magistrate's court. The respondent's points in limine were without merit. The applicant was entitled to…

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• Administration Of Estates Act
• Executor Duties
• Liquidation And Distribution Account
• Standing Of Creditors