Case Law[2025] ZAWCHC 400South Africa
Gerritsen Trading CC t/a Gerritsen Drilling SA v Blydskap Holdings (Pty) Ltd (2024/146798) [2025] ZAWCHC 400 (27 August 2025)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Gerritsen Trading CC t/a Gerritsen Drilling SA v Blydskap Holdings (Pty) Ltd (2024/146798) [2025] ZAWCHC 400 (27 August 2025)
Gerritsen Trading CC t/a Gerritsen Drilling SA v Blydskap Holdings (Pty) Ltd (2024/146798) [2025] ZAWCHC 400 (27 August 2025)
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sino date 27 August 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
COMPANY
– Winding up –
Commercial
insolvency –
Unable
to pay debts – WhatsApp messages revealed repeated
acknowledgement of debt and promised settlement – Indicated
reliance on incoming payments to settle accounts – Failed to
provide financial records or evidence of realisable assets
–
Defences were not genuine or reasonable – Discretion to
refuse liquidation not justified by potential prejudice
to
employees – Company was commercially insolvent –
Placed under provisional liquidation – Companies Act
61 of
1973, s 346(1)(b).
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
### JUDGMENT
JUDGMENT
Not
Reportable
Case
no: 2024-146798
In
the matter between:
GERRITSEN
TRADING CC
APPLICANT
t/a
GERRITSEN DRILLING SA
(Registration
Number: 2008/032582/23)
and
BLYDSKAP
HOLDINGS (PTY) LTD
RESPONDENT
(Registration
Number: 2019/423758/07)
Registered
Address: 1[…] R[…] Avenue, Kenilworth, Cape Town,
Western Cape
Neutral
citation:
Coram:
COOKE AJ
Heard
:
13 August 2025
Delivered
:
27 August 2025
ORDER
[1]
The respondent
is
placed under provisional liquidation, and its assets are placed in
the hands of the Master of the High Court
.
[2]
A rule
nisi
is issued calling upon the respondent
and all interested parties to show cause on
7
OCTOBER 2025
why, if
any, the following order should not be made:
(a)
a final liquidation
order be granted; and
(b)
the costs of this
application be costs in the liquidation, including costs of counsel
on Scale B
.
[3]
A copy of the provisional order shall
be served in the following manner:
(a)
by the sheriff on
the respondent at
1
[…]
R
[…]
Avenue, Kenilworth, Cape Town, Western
Cape
;
(b)
by the sheriff on
the employees of the respondent at
Klipfontein
Farm, B
[…]
R
[…]
Road, Velddrif, Western Cape
;
(c)
by the sheriff on
the registered trade union(s) of the employees of the respondent at
Klipfontein Farm, B
[…]
R
[…]
Road, Velddrif, Western Cape
;
(d)
on the South
African Revenue Service situated in Cape Town;
(e)
on the Master of
the High Court situated in Cape Town; and
(f)
by publication in
The
Cape Times
and
Die
Burger
newspapers.
[4]
The application for
condonation of the late delivery of the answering affidavit and heads
of argument by the respondent is granted,
with the costs of the
application to be paid by the respondent,
including
costs of counsel on Scale B.
# JUDGMENT
JUDGMENT
[1]
Over the last ten
years, the use of WhatsApp has become ubiquitous. It is now an
essential social tool for many people. As appears
from this matter,
WhatsApp is also increasingly being used in business dealings. As an
unfiltered contemporaneous record, WhatsApp
communications can also
be of assistance to a court of law. In some instances, they will
serve as the best evidence in relation
to a disputed issue - a
reliable guide to what was really in the minds of the parties. This
is such a case.
[1]
[2]
This is an
application for the provisional liquidation of the respondent
(‘Blydskap’). The application has its provenance
in an
agreement concluded between the parties in terms of which the
applicant (‘Gerritsen Drilling’) was to drill boreholes
for Blydskap. The terms of the agreement are disputed. It is,
however, common cause that in February 2024, Gerritsen Drilling
drilled three boreholes on a farm owned by Blydskap located in the
Sandveld region near Velddrif. The first two boreholes were
successful and Blydskap was satisfied with the work. In relation to
the third borehole, however, the drilling penetrated a confined
aquifer where the pressure was high enough to cause water to rise
unaided to the surface (the technical term for this is ‘artesian’).
Gerritsen Drilling stopped drilling on 1 March 2024 and to date, it
has performed no further work on the farm.
[3]
Gerritsen Drilling
rendered several invoices for the work done. Sporadic payments were
made by Blydskap, but the charges remained
largely unpaid. On 12
December 2024 this liquidation application was launched. At the time,
Gerritsen Drilling claimed that it
was owed R514 023.80 by Blydskap.
It is not disputed, however, that since the application was launched,
the sum of R108 118.51
was paid by Blydskap.
[4]
It was agreed by
the parties that Blydskap would deliver its answering affidavit by 31
March 2025. This was confirmed in a timetable
contained in a court
order dated 8 April 2025. The answering affidavit, however, was only
delivered late on the afternoon of Friday,
8 August 2025, just a few
days before the matter was due to be heard on Wednesday, 13 August
2025. The day before the hearing,
Blydskap served a condonation
application. A replying affidavit was also delivered on that day. On
the day of the hearing, Blydskap
provided the court with the
condonation application and heads of argument stretching to 45 pages.
[5]
At the hearing,
counsel for Gerritsen Drilling informed the court that his client did
not oppose the granting of condonation in
relation to the late
delivery of the answering affidavit and heads of argument. He
confirmed also that it did not require further
time to supplement the
replying affidavit.
[6]
Having regard to
the nature of the application, I consider that it is especially
important that all the relevant information be
placed before this
court. Gerritsen Drilling will not be prejudiced as it delivered a
reply and does not seek further time to supplement
the reply.
Liquidation applications are also inherently urgent, and Gerritsen
Drilling could be prejudiced if there is a delay
in the determination
of the application. I therefore accept that it is in the interests of
justice that the affidavit be admitted,
and I am willing to condone
the late delivery of the affidavit and the heads of argument. Counsel
for Blydskap accepted that his
client must pay the costs of the
application for condonation.
[7]
I turn now to
consider the merits of the liquidation application. In my view, the
matter may be assessed conveniently under four
headings:
(a)
Does Gerritsen
Drilling have standing to bring the application? More particularly,
is Gerritsen Drilling a ‘creditor’
as contemplated by s
346(1)(
b
)
of the Companies Act 61 of 1973 (‘the Act’)?
(b)
Is Gerritsen
Drilling’s claim disputed on bona fide (genuine) and reasonable
grounds (the so-called Badenhorst rule)? If so,
the application would
be an abuse of process.
(c)
Has it been proved
to the satisfaction of the court that Blydskap is unable to pay its
debts, as contemplated by s 345(1)(
c
)
of the Act?
(d)
Even if the
requirements for a liquidation are established, should the court
nonetheless exercise its discretion against granting
a liquidation
order?
[8]
Before turning to
these four questions, I address a preliminary objection raised by
Blydskap in terms of which the authority to
institute the proceedings
was challenged. This objection may be addressed briefly. The deponent
to the founding affidavit (Mr Coetsee)
alleged that he was duly
authorised to institute the application. This allegation was admitted
in the answering affidavit. In any
event, the remedy of a respondent
who wishes to challenge the authority of a person allegedly acting on
behalf of a purported applicant
is provided for in uniform rule
7(1).
[2]
Blydskap did not
avail itself of this procedure.
Standing
[9]
It is
well-established that in an opposed application for provisional
liquidation, the applicant must establish its entitlement
to an order
on a prima facie basis. This means that the applicant must show that
the balance of probabilities on the affidavits
is in its favour. This
would include the existence of the applicant’s claim where such
is disputed.
[3]
[10]
It is common cause
that Gerritsen Drilling drilled three boreholes for Blydskap and
rendered invoices in relation to this work.
Blydskap contends,
however, that the invoices were only issued for ‘administrative
purposes’. Although the invoices
are marked ‘pro forma’,
it appears from the remarks on the invoices that a final tax invoice
would be issued after
payment was received. It may have been that the
invoices were marked ‘pro forma’ for tax reasons. Perhaps
Gerritsen
Drilling was concerned that there may be a delay in payment
and did not wish to incur a liability to pay VAT or income tax prior
to receiving payment. But, in any event, it would have been apparent
to Blydskap that it was required to pay the amounts set out
in the
invoices, notwithstanding the ‘pro forma’ label. Indeed,
the evidence shows that various payments corresponding
to the figures
in the invoices were made to Gerritsen Drilling, and by the time the
application was heard, most of the charges
in relation to the first
borehole, and some in relation to the second borehole, had been paid.
The part payments made by Blydskap,
and the messages described below,
give the lie to the contention that the pro forma invoices were only
issued for administrative
purposes.
[11]
The WhatsApp
messages exchanged between Mr Rabie, Blydskap’s sole director,
and Mr Gerritsen, who is described as the sole
director of Gerritsen
Drilling, reveal that Mr Rabie accepted that his company was liable
to Gerritsen Drilling:
a.
On 29 April 2024,
Mr Gerritsen enquired of Mr Rabie whether payment would be made the
following day (ie by the end of the month),
to which Mr Rabie
responded ‘Ons maak so’ (we will do so).
b.
Then on 6 August
2024, Mr Gerritsen enquired how the financial matters were looking in
relation to a payment, to which Mr Rabie
responded ‘Gaan julle
die maand betaal’ (we are going to pay this month).
c.
On 1 October 2024,
a different creditor (Mr Reinke) asked Mr Rabie when his outstanding
account would be paid. In response, Mr Rabie
said ‘Die maand.
Volle bedrag. Twee betalings soos fondse loskom. Vir regverdigheid
gaan ek vir Pierre
[4]
voortrek derhalwe
twee betalings.’ (This month. Full payment. Two payments as
funds become available. For fairness, I will
prefer Pierre therefore
two payments.)
d.
In early November
2024, Mr Gerritsen sent several WhatsApp messages to Mr Rabie
recording that no payment had been made. Eventually,
on 14 November,
Mr Rabie advised that he had spoken to his accountant and ‘(s)y
sal eers vandag of môre by betalings
kom. Jammer daaroor.’
(She will only get to payments today or tomorrow. Sorry about that.)
e.
No payment was
received, and further WhatsApp messages were exchanged between them
culminating in a message from Mr Gerritsen to
Mr Rabie on 28 November
2024 in which Mr Gerritsen asked if Mr Rabie could please arrange for
payment of the outstanding amount
by no later than 30 November 2024.
Mr Rabie wrote back ‘Korteliks daars voorsiening gemaak vir
betaling. Ons het fakture
uitgereik aan kliente en sodra hulle betaal
diens ons jou rekening’ (In short, provision has been made for
payment. We have
issued invoices to clients and as soon as they pay,
your account will be serviced.)
f.
In response, Mr
Gerritsen advised Mr Rabie that 30 November 2024 was his cut off
point.
[12]
Needless to say, no
payment was made by the end of November, and the application was duly
issued a couple of weeks later.
[13]
The WhatsApp
messages are admitted. There is, however, no attempt by Blydskap to
explain the messages. Nor is there any suggestion
that they should be
given a meaning other than their natural meaning. In my view, the
messages should therefore be taken at face
value.
[14]
According to Mr
Rabie, he informed Mr Gerritsen on 22 April 2024 that he would only
pay the invoices once the defects relating to
the third borehole had
been repaired, and once he had received the SANS reports.
[5]
Mr Gerritsen,
on the other hand, alleges that Mr Rabie never asked him for these
reports and his company is exercising a right of
retention over such
documents until payment is made.
[15]
To place Mr Rabie’s
allegation in context, as shown above, on 29 April 2024, just a week
after the alleged discussion, Mr
Rabie indicated in a WhatsApp
message that he would make payment by the end of the month. Not a
word about the third borehole or
the SANS reports. In addition,
Blydskap continued to make payments to Gerritsen Drilling in relation
to the first borehole on 10
May 2024 and 1 June 2024. Even after the
liquidation application was brought, further payments were made on 21
December 2024 in
respect of the first two boreholes. In so far as Mr
Rabie’s account is at odds with the contemporaneous record, as
well as
his conduct, I do not accept that his account is probable.
[16]
Even if there were
defects in relation to the third borehole, this does not explain why
Blydskap did not pay the significant amounts
owing in respect of the
second borehole.
[17]
Blydskap’s
counsel submitted that no demand for payment had been made and
Blydskap was never placed in mora. This submission
is difficult to
square with the evidence of pro forma invoices, statements and
requests for payment in the WhatsApp exchanges,
all culminating in an
email dated 29 November 2024 in which Mr Gerritsen pointed out that
the debt had been owing since March 2024
and he asked Mr Rabie to
arrange payment of the outstanding amount no later than 30 November
2024. Not to mention the fact that
several of the invoices were paid
by Blydskap.
[18]
It was also
contended in the answering affidavit that the part payments had been
made as an indulgence to Gerritsen Drilling to
ease its supposed cash
flow problems. This contention does not sit comfortably with the
WhatsApp exchanges and, to my mind, is
improbable.
[19]
Having regard to
the WhatsApp exchanges, read with the invoices, statements and other
correspondence, I am satisfied that Gerritsen
Drilling has
established, on a prima facie basis, that it is a creditor of
Blydskap and thus entitled to seek the liquidation of
the company. It
matters not, for the purposes of this application, precisely when the
invoices were rendered. Nor does it make
a difference if certain
small amounts fall to be deducted from the amount owing. These do not
detract from the essential fact that
Blydskap owes money to Gerritsen
Drilling.
[20]
Blydskap’s
counsel, with some justification, criticised Gerritsen Drilling in so
far as the founding affidavit was deposed
to by one of its attorneys,
and no confirmatory affidavit by Mr Gerritsen was delivered until
over three months later. Even then,
the confirmatory affidavit was of
the type criticised in
Drift
Supersand (Pty) Limited v Mogale City Local Municipality
,
[6]
and this affidavit
failed to have regard to the fact that certain payments had been made
since the founding affidavit was signed.
The affidavit should not
have confirmed the founding affidavit without qualification. To this
criticism, I may add that Gerritsen
Drilling should have addressed
the issues with the third borehole in its founding papers.
[21]
Nonetheless, in my
view, Gerritsen Drilling’s claim is established on common cause
facts, particularly the documentary record.
On an overall view of the
affidavits, and notwithstanding the hearsay in the founding
affidavit, I am satisfied that Gerritsen
Drilling has established on
a balance of probabilities that it is a creditor of Blydskap and thus
has standing to bring this application.
The
defences raised by Blydskap
[22]
The second question
is linked to the first. Except here, Blydskap bears the onus of
proving that it has a genuine and reasonable
defence.
[7]
A court may reach
this conclusion even though on a balance of probabilities (based on
the papers), the applicant’s claim has
been made out.
[8]
[23]
The defences raised
by Blydskap may be summarised as follows:
(a)
Payment of the debt
was withheld by Blydskap due to Gerritsen Drilling’s failure to
properly perform specialist drilling services
and tests in respect of
the three boreholes. Blydskap admits that there is an unpaid balance
of R379 271.29 but asserts that
this amount is not due and
payable
[9]
because Gerritsen
Drilling failed to properly perform and Blydskap elected to withhold
performance until the defects have been addressed.
According to
Blydskap, the non-payment of the debt therefore results from a
contractual dispute, not insolvency.
(b)
Gerritsen Drilling
never deducted the amounts for costs of transfer, transport,
establishment and setup regarding certain invoices,
and did not
deduct certain costs in respect of the water production testing for
the second borehole.
(c)
The defects with
the drilling services resulted in Blydskap suffering damages and as a
result, it has a counterclaim against Gerritsen
Drilling which it
intends prosecuting. The damages are provisionally calculated at
R1 050 000.
[24]
In support of its
defences, Blydskap relies upon the terms of an oral agreement
supposedly concluded on 23 November 2023 on a telephone
call between
Mr Gerritsen and Mr Rabie. On Blydskap’s telling of the
agreement, there are no less than fifteen terms of the
agreement set
out over three pages of the answering affidavit. In my view, it is
fanciful to suggest that these parties concluded
a detailed and
complex agreement over the telephone. Not only this, but the specific
terms relied upon by Blydskap were not mentioned
in the various
WhatsApp exchanges. I am therefore not satisfied that the terms of
the agreement are as alleged by Blydskap.
[25]
The answering
affidavit is, in certain respects, contradictory. For instance, Mr
Rabie alleges in one part of the affidavit that
payment would be due
and payable after the SANS reports for each borehole were received.
But later in the affidavit, he alleges
that he told Mr Gerritsen that
the agreement was that he would only pay once the whole project was
completed. The inconsistencies
in the affidavit are an indication
that the defence is not genuine and reasonable.
[26]
In relation to the
withholding defence, Blydskap called in aid the principle of
reciprocity (
exceptio
non adimpleti contractus
).
[10]
It argued that it
is entitled to withhold payment until Gerritsen Drilling has complied
with its obligations, and in particular
has provided SANS reports to
Blydskap. To succeed with this argument, Blydskap would have to show
that Gerritsen Drilling was obliged
to provide the SANS reports
before or at the same time as payment is made.
[11]
There is, however,
no mention of the SANS reports in the WhatsApp exchanges. In
addition, the invoices include notes stipulating
that the drilling
reports and the pump test reports will be issued after payment has
been received. I understand the ‘drilling
report’ to be a
reference to the SANS report. It is clear from the invoices that
Gerritsen Trading intended withholding the
reports required by
Blydskap as a means of ensuring and incentivising payment. On the
affidavits to hand, I am not persuaded that
the provision of SANS
reports was reciprocal to the payment obligation.
[27]
As regards the
alleged failure to deduct amounts, in my view it does not help
Blydskap if certain amounts fall to be deducted from
the invoices. If
a creditor establishes a case for liquidation, where a portion of the
amount of the debt is disputed by the debtor,
or the precise amount
of the debt is uncertain, such a dispute will not constitute a
defence. The whole of the debt must be disputed
on genuine and
reasonable grounds.
[12]
[28]
In support of the
counterclaim, Blydskap relied upon a report from Groundwater and
Earth Science South Africa (Pty) Ltd (‘GEOSS’).
This
report appears to have only been commissioned in April 2025, several
months after the application was launched. In his answering
affidavit, Mr Rabie alleged that GEOSS confirmed that Gerritsen
Drilling made a mistake by drilling into an artesian water body.
As I
read the report, this is not necessarily correct. The criticisms
levelled at Gerritsen Drilling concern inadequacies in the
record-keeping. It is not clear to me how these administrative
inadequacies caused the borehole to be artesian.
[29]
In addition, even
on Blydskap’s account, the drilling of the third borehole was
‘halted due to complications arising
from the site’s
complex geological conditions’. It is not evident to me that
the failure to anticipate these geological
conditions constituted a
contractual breach by Gerritsen Drilling.
[30]
A week after the
problem with the third borehole arose, Mr Rabie sent an email to Mr
Gerritsen suggesting that they should look
at drilling a fourth
borehole and requesting a half-price discount. Furthermore, within a
month of the problem arising, Mr Rabie
sent his company’s
formal details to Mr Gerritsen for the purposes of generating an
invoice. This contemporaneous communication
indicates that, at that
stage at least, Mr Rabie did not blame Mr Gerritsen for the problem
with the third borehole.
[31]
If Blydskap
sincerely believe that it enjoyed a counterclaim, then it is
inexplicable that Mr Rabie continued to indicate that the
accounts
would be paid throughout 2024 and indeed made payments. Furthermore,
the counterclaim was not articulated until after
the liquidation
application had been brought and I infer that it was contrived as a
means of opposing the liquidation application.
This is a case where,
like in
Afgri
,
the inertia of Blydskap in pursuing its right of action alleged in
the counterclaim generates a considerable sense of unease about
the
genuineness of its contestation.
[13]
[32]
In the
circumstances, I do not consider that the defences and counterclaim
raised by Blydskap are genuine and reasonable. It has
not been shown
that Blydskap sincerely wishes to contest the claim and believes it
has reasonable prospects of success.
[14]
The application is
accordingly not an abuse of the court’s processes.
Inability
to Pay Debts
[33]
I come now to the
third question, namely whether it has been satisfactorily proved that
Blydskap is unable to pay its debts. Once
again, the WhatsApp
exchanges tell a story.
[34]
Blydskap enlisted
the assistance of Mr Reinke of Anton Reinke Irrigation (Pty) Ltd to
assist with irrigation on the farm. Mr Reinke
attended a meeting that
was held on the farm on 22 April 2024 when the parties discussed the
problems with the third borehole.
As shown above, the WhatsApp record
reveals that on 1 October 2024, Mr Reinke asked Mr Rabie when his
outstanding account would
be paid. In response, Mr Rabie said two
payments would be made as funds become available. In similar vein, in
November 2024, Mr
Rabie indicated that he would only be able to pay
Gerritsen Drilling’s account after receiving payment from
clients.
[35]
It appears from
these communications that, as of October / November 2024, Blydskap
was unable to pay its debts as they fell due.
This indicates that
Blydskap was unable to meet the current demands upon it in the
ordinary course of its business, and it was
therefore in a state of
commercial insolvency.
[15]
[36]
The WhatsApp
exchanges also disclose that in July 2024, Blydskap was experiencing
difficulties with SARS (‘SARS nog hardegat’
– SARS
are still stubborn). This is consistent with Blydskap not being able
to meet its financial obligations.
[37]
There is no
intimation that Blydskap’s financial position has improved. It
is instructive that Blydskap has not put up any
evidence regarding
its current financial position, save for a letter from its auditors
confirming that Blydskap ‘is solvent,
and that the company’s
assets exceed its liabilities’. This is far from adequate proof
of Blydskap’s commercial
solvency. Gerritsen Drilling’s
attorney contacted the author of this letter who advised that he had
not considered whether
Blydskap had the financial means to settle its
debts as and when they become due.
[38]
Documentation
relating to the purchase of the farm was annexed to the answering
affidavit and the purchase price for two properties
may be discerned
from this documentation. But the extent to which the properties are
encumbered by mortgages is not clear. Blydskap
has not suggested that
it has any realisable assets which could be used to pay its debts. As
in
Electrolux
,
Blydskap did not indicate anywhere in its answering affidavit that it
has the assets, resources or sources of income to pay its
debts as
and when they fall due, or to pay the debt owing to Gerritsen
Drilling.
[16]
[39]
Mr Rabie claimed
that he had been requested by his attorneys to provide financial and
management accounts, but he was waiting for
financial reports from
the auditors. Even if a financial report from the auditors was
absent, Blydskap should have been able to
furnish its attorneys with
management accounts. I also would have expected Blydskap to provide
an indication of its assets and
liabilities and its income and
expenses. No such information has been provided even though Blydskap
took eight months to prepare
its answering affidavit.
[40]
In all the
circumstances, I am satisfied that Gerritsen Drilling has shown that
Blydskap is unable to pay its debts.
Discretion
[41]
Generally speaking,
an unpaid creditor has a right to a liquidation order against a
company which has not discharged its debts.
Once a creditor has
satisfied the requirements for such an order, the court may not
decline to grant the order on a whim. There
must be a particular
reason why the order is withheld.
[17]
The court exercises
a narrow discretion when deciding a liquidation application and will
not be easily swayed towards exercising
its discretion in favour of a
debtor which has not discharged its debts.
[18]
[42]
Blydskap relies
upon the following factors in its heads of argument:
(a)
It and several
third parties would be prejudiced by a provisional liquidation order.
According to Blydskap, it provides direct employment
to ten
employees, and their families are dependent on their income.
(b)
If an order is
granted, the action proceedings that Blydskap contemplates will come
to an end and it will effectively be prevented
from having its
legitimate claim against Gerritsen Drilling determined.
(c)
Blydskap is solvent
and can pay its liabilities as and when they are due, owing and
payable.
[43]
It is instructive
that Blydskap does not suggest that its financial position is likely
to improve. Nor does it place any evidence
before the court which
shows that it will, in due course, be able to pay its debts. If I
were to exercise my discretion in favour
of Blydskap, it is likely
that this will serve only to prolong the inevitable.
[44]
The potential
prejudice is not such as to warrant a refusal of the application. The
employees will not necessarily lose their jobs
if the company is
placed in provisional liquidation, and interested parties, including
the employees, may place evidence before
the court on the return day
should they wish to do so. Furthermore, the contemplated action
proceedings will not necessarily be
frustrated by a liquidation. If
the liquidators consider that there is merit in the counterclaim,
they could institute such a claim
against Gerritsen Drilling. As to
the solvency of Blydskap, this aspect has been addressed above. I am
therefore not persuaded
that the factors raised by Blydskap are
sufficient to justify the exercise of my discretion in its favour.
[45]
The existence of a
counterclaim which, if established, would result in a discharge by
set-off of an applicant's claim for a liquidation
order is not, in
itself, a reason for refusing to grant an order for the liquidation
of the respondent but it may, however, be
a factor to be taken into
account in exercising the court's discretion as to whether to grant
the order or not.
[19]
The discretion to
refuse a liquidation order where it is common cause that the
respondent has not paid an admitted debt is, notwithstanding
a
counterclaim, a narrow and not a broad one.
[20]
In my view, for the
reasons set out above, Blydskap’s counterclaim is not advanced
sincerely. In addition, the merits of the
counterclaim are not
without difficulties. In the result, I do not consider that the
alleged counterclaim presents a basis to exercise
my discretion
against the granting of the order.
Conclusion
[46]
The admitted
WhatsApp exchanges are decisive. They show that (a) Blydskap is
indebted to Gerritsen Drilling, (b) it does not enjoy
a genuine and
reasonable defence, and (c) it is unable to pay its debts. There is
no substantial reason to exercise a discretion
against the granting
of the order sought. It follows, to my mind, that Blydskap should be
placed into provisional liquidation.
[47]
In the
circumstances, I am satisfied that the requirements for a provisional
liquidation order have been satisfied, and I accordingly
grant the
order set out above.
Cooke
AJ:
DJ
COOKE
ACTING
JUDGE OF THE HIGH COURT
Appearances
For
applicant:
Stephan van der Meer
Representing:
Van der Meer and Partners Inc
For
respondent: Scott Pitcher
Instructed
by:
Lamprecht Attorneys
[1]
For a recent liquidation
application where WhatsApp messages were relied upon, see
Pillay
v Lopdale Energy (Pty) Ltd
[2025]
ZAGPJHC 681 (15 July 2025).
[2]
Ganes
and Another v Telecom Namibia Ltd
2004
(3) SA 615
(SCA) at 624I–625A.
[3]
Kalil v Decotex (Pty)
Ltd and Another
1988
(1) SA 943
(A) at 975J-979F;
Orestisolve
(Pty) Ltd t/a Essa Investments v NDFT Investment Holdings (Pty) Ltd
and Another
2015
(4) SA 449
(WCC) (
Orestisolve
)
para 7.
[4]
‘
Pierre’
is a reference to Mr Gerritsen.
[5]
The reports concern
South African National Standard 10299-2:2003 Part 2 – The
Design, Construction, and Drilling of Boreholes.
They are required
for registering the boreholes with the Department of Water and
Sanitation.
[6]
[2017]
4 All SA 624
(SCA) para 31.
[7]
Afgri
Operations Ltd v Hamba Fleet (Pty) Ltd
2022
(1) SA 91
(SCA) (
Afgri
)
para 6.
[8]
Orestisolve
para
8.
[9]
In other places in the
answering affidavit, it is alleged that the amount is ‘payable,
but not due’.
[10]
Cradle
City (Pty) Ltd v Lindley Farm 528 (Pty) Ltd
2018
(3) SA 65
(SCA) paras 20-24.
[11]
Mörsner
v Len
1992
(3) SA 626 (A).
[12]
Electrolux South
Africa (Pty) Ltd v Rentek Consulting (Pty) Ltd
2023 (6) SA 452
(WCC)
(
Electrolux
)
para 26.
[13]
Afgri
para
18.
[14]
See
Orestisolve
para
67. The absence of a genuine belief in the defence distinguishes
this matter from cases such as
Hülse-Reutter
and Another v HEG Consulting Enterprises (Pty) Ltd (Lane and Fey NNO
Intervening)
1998
(2) SA 208
(C). Compare
GAP
Merchant Recycling CC v Goal Reach Trading 55 CC
2016
(1) SA 261
(WCC) (
GAP
).
[15]
See
Rosenbach
& Co (Pty) Ltd v Singh’s Bazaars (Pty) Ltd
1962 (4) 593 (D&CLD).
[16]
Electrolux
para
34;
GAP
para
53.
[17]
Orestisolve
para
18.
[18]
Electrolux
para
24.
[19]
Afgri
para
7.
[20]
Ibid para 13.
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