Case Law[2025] ZAGPJHC 517South Africa
Rent a Tank JHB (Pty) Limited v Fuelgiants (Pty) Limited (2025/012156) [2025] ZAGPJHC 517; 2025 (5) SA 527 (GJ) (19 May 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
19 May 2025
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# South Africa: South Gauteng High Court, Johannesburg
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## Rent a Tank JHB (Pty) Limited v Fuelgiants (Pty) Limited (2025/012156) [2025] ZAGPJHC 517; 2025 (5) SA 527 (GJ) (19 May 2025)
Rent a Tank JHB (Pty) Limited v Fuelgiants (Pty) Limited (2025/012156) [2025] ZAGPJHC 517; 2025 (5) SA 527 (GJ) (19 May 2025)
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sino date 19 May 2025
FLYNOTES:
COMPANY – Winding up –
Statutory
formalities
–
Effective
notice – Purpose of notice requirements – To ensure
affected parties are informed and can participate
in proceedings –
No substantial compliance – Notices often affixed to
incorrect addresses or served on single
individuals without
ensuring broader dissemination – Lack of diligence in
verifying details of respondent – Reliance
on outdated or
incorrect documentation – Non-compliant and procedurally
defective applications dismissed or removed
from roll.
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
No: 2025-012156
(1)
REPORTABLE: Yes/No
(2)
OF INTEREST TO OTHER JUDGES: Yes/No
In
the matter between:
RENT
A TANK JHB (PTY) LIMITED
Applicant
and
FUELGIANTS
(PTY) LIMITED
Respondent
Case
No: 2024-110421
In
the matter between:
CHRISTIAAN
CERVAAS HERBST
Applicant
and
EXECUKIT
(PTY) LIMITED (in business rescue) Respondent
Case
No: 2025-012071
In
the matter between:
VOLTEX
(PTY) LIMITED
Applicant
and
SINDISWA
NKANGANE
Respondent
Case
No: 2024-081809
In
the matter between:
ABSA
BANK LIMITED
Applicant
and
ALLO
ROWED PROPERTIES CC
Respondent
Case
No: 2025-014518
In
the matter between:
ROSSGRO
BILLING (PTY) LIMITED
Applicant
and
RAINBOW
CASH ‘N CARRY (PTY) LIMITED
Respondent
Case
No: 2024-135130
In
the matter between:
CHAB
TRUCK & TRAILERS REPAIRS (PTY) LIMITED Applicant
and
AD
TRAILERS SALES & REPAIRS (PTY) LIMITED
Respondent
Case
No: 2022-028800
In
the matter between:
CREDIT
GUARANTEE INSURANCE CORPORATION Applicants
OF
AFRICA LIMITED AND OTHERS
and
HABITECH
FINANSIERING (PTY) LIMITED
Respondent
Case
No: 2024/052414
In
the matter between:
KAGISO
RATLOO MOOKANE AND 18 OTHERS
Applicants
and
SAKHILE
EZWENI GROUP (PTY) LIMITED
Respondent
JUDGMENT
/ REASONS
Handed
down electronically by circulation to the parties’ legal
representatives by email and/or by uploading to Caselines.
Gilbert
AJ:
1.
These extensive reasons are intended to give guidance to those
approaching the dedicated insolvency court, or any other
court, as to
what is required in relation to what is colloquially known as the
statutory formalities for the grant of liquidation
and sequestration
orders.
2.
These reasons are aimed at preventing the enrolment of liquidation
and sequestration applications that are manifestly non-compliant,
and
so alleviating the burden on court resources caused by such
applications. This is especially relevant now upon the commencement
in this Division of the pilot project of the dedicated insolvency
court. Considerable judicial resources would have been saved
had
non-compliant applications not been enrolled in the first place or
timely steps taken to address the deficiencies so that the
matters
could be finally disposed of when called.
3.
Liquidation and sequestration orders have far-reaching consequences.
4.
This
is, for a respondent, self-evidently so, affecting the status of the
respondent. There are all the consequences provided for
in the
insolvency legislation. For example, upon the grant of a liquidation
order, all the property of the respondent company is
deemed to be in
the custody and under the control of the Master until a provisional
liquidator is appointed,
[1]
whereafter the provisional liquidator and then final liquidator
administers the estate according to his or her statutory powers.
The
directors, management and other office bearers lose their power to
direct and manage the respondent company, including to effect
valid
transactions on behalf of the company.
[2]
Upon the grant of a sequestration order, the respondent is divested
of his or her estate and the estate is vested in the Master
until a
trustee is appointed, and thereafter in the trustee.
[3]
5.
The effect of these orders goes beyond the interests of the applicant
creditor and the respondent debtor.
6.
Of particular concern are the rights and interests of the
respondent’s employees, not only as potential creditors
but as
employees. Hence the introduction in both the
Insolvency Act, 1936
and the Companies Act, 1973 of detailed provisions to specifically
protect the interests of employees. Particularly relevant for
present
purposes are the statutory provisions discussed later in this
judgement requiring that employees be given effective notice
of
liquidation and sequestration proceedings relating to their
respondent employer, and, if a provisional order is granted, of
that
order.
7.
Upon
a sequestration or liquidation order being granted, a
concursus
creditorum
is
established, which has the effect that nothing may be done that
would result in the diminishing of the assets in an insolvent
estate or which would prejudice the rights of creditors.
[4]
8.
It is not only the interests of the creditors in the form of the
distribution they may receive through their participation
in the
concursus that are in play, but also the interests of those that did
business with and were paid by the respondent company
before the
grant of a liquidation order.
9.
Section
348 of the Companies Act, 1973 provides that a winding-up of a
company by the court shall be deemed to commence at the time
of the
presentation to the court of the application for the winding-up. In
nearly all cases there is a delay between when the application
is
presented to the court and when a winding-up order may be granted.
This could be days (if the application is brought on an urgent
basis), or months or even in some instances, years. This statutory
retrospective deeming date of the commencement of the winding-up
of
the company has serious consequences for those that did business with
a respondent company between the launch of the application
and the
date the liquidation order is made. Every disposition made during
that period, including any payment made to a creditor
even in good
faith (such as payments made to employees during that period, such as
for salaries) is automatically voided upon the
grant of the
liquidation order, unless the court orders otherwise.
[5]
This would include payments made to employees during that period,
such as for salaries.
10.
Given what may be a lengthy delay between the presentation of the
application for winding-up and the grant of a winding-up
order, there
is substantial scope for a whole array of dispositions, even if made
in good faith, to be automatically voided. This
is but one of the
serious consequences of the granting of a winding-up order, and which
informs the need to expeditiously finalise
winding-up proceedings,
once launched.
11.
There are many other far-reaching consequences of sequestration and
winding-up orders for an array of persons. What is
set out above is
simply illustrative of those serious consequences.
12.
Axiomatically, respondents and the trade unions, failing which the
employees themselves, need to be given adequate notice
of proceedings
that bring about these far-reaching consequences so they can take
advice and decide whether to oppose those proceedings
or otherwise
participate in the proceedings.
13.
These concerns that adequate notice must be given before a
sequestration or liquidation order is granted are evident from
the
amendment of the relevant insolvency statutes by way of the
Insolvency Second Amendment Act 69 of 2002
with effect from 1 January
2003.
14.
Insofar as sequestration applications are concerned,
section 9(4A)
was inserted into the Insolvency Act:
“
(4A)
(a) When a petition is presented to the court, the petitioner must
furnish a copy of the petition—
(i)
to every registered trade union that, as far as the petitioner can
reasonably ascertain, represents any of the debtor’s employees;
and
(ii)
to
the employees themselves—
(aa)
by affixing a copy of the petition to any notice board to which the
petitioner and the employees have access inside the debtor’s
premises; or
(bb)
if there is no access to the premises by the petitioner and the
employees, by affixing a copy of the petition to the front
gate of
the premises, where applicable, failing which to the front door of
the premises from which the debtor conducted any business
at the time
of the presentation of the petition;
(iii)
to
the South African Revenue Service; and
(iv)
to
the debtor, unless the court, at its discretion, dispenses with the
furnishing of a copy where the court is satisfied that it
would be in
the interest of the debtor or of the creditors to dispense with it.
(b)
The petitioner must, before or during the hearing, file an affidavit
by the person who furnished a copy of the petition which
sets out the
manner in which paragraph (a) was complied with.”
15.
If a
rule nisi
is granted provisionally sequestrating the
estate of a respondent debtor,
section 11
of the
Insolvency Act was
amended to provide for service of the provisional order. Of
particular relevance for present purposes are
sections 11(2A)
and
11
(4):
“
(2A)
A copy of the rule nisi must be served on-
(a)
any trade union referred to in subsection (4);
(b)
the debtor's employees by affixing a copy of the petition to any
notice board to which the employees have access inside
the debtor's
premises, or if there is no access to the premises by the employees,
by affixing a copy to the front gate, where applicable,
failing which
to the front door of the premises from which the debtor conducted any
business at the time of the presentation of
the petition; and
(c)
the South African Revenue Service.
…
.
(4)
For the purposes of serving the rule nisi in
terms of subsection (2A), the sheriff must establish whether
the
employees are represented by a registered trade union and determine
whether there is a notice board inside the employer's premises
to
which the employees have access.”
16.
Corresponding provisions are found by way of the amendment of the
Companies Act, 1973.
17.
Section 346(4A) provides that:
“
(4A)(a)
When an application is presented to the court in terms of this
section, the applicant must furnish a copy of
the application –
(i)
to every registered trade union that, as far as the applicant can
reasonably ascertain, represents any of the employees of the company;
and
(ii)
to the employees themselves -
(
aa)
by affixing a copy of the application to any notice board to which
the applicant and the employees have access inside
the premises of
the company; or
(bb)
if there is no access to the premises by the applicant and the
employees, by the affixing a copy of the application to
the front
gate of the premises, where applicable, failing which to the front
door of the premises from which the company conducted
any business at
the time of the presentation of the application.
”
(b)
The applicant must, before or during the hearing, file
an affidavit by the person who furnished a copy of the application
which sets out the manner in which paragraph (a) was complied with”.
18.
In relation to the service of a winding-up order once granted,
section 346A of the Companies Act, 1973 as inserted provides:
“
(1)
A copy of a winding-up order must be served on-
(a)
every trade union referred to in subsection (2);
(b)
the employees of the company by affixing a copy of
the application to any notice board to which the employees
have
access inside the debtor's premises, or if there is no access to the
premises by the employees, by affixing a copy to the
front gate,
where applicable, failing which to the front door of the premises
from which the debtor conducted any business at the
time of the
presentation of the application;
(c)
the South African Revenue Service; and
(d)
the company, unless the application was made by
the company.
(2)
For the purposes of serving the winding-up order in
terms of subsection (1), the sheriff must establish whether
the
employees of the company are represented by a registered
trade union and determine whether there is a notice board
inside the
premises of the company to which the employees have access.
19.
These provisions have been in place now for over two decades and have
been the subject of many judgments, both reported
and unreported.
20.
It is with considerable concern that a pattern emerged from the
sequestration and liquidation applications that had been
enrolled
before the court for the week, particularly on the unopposed roll.
Little, if any, regard was had to these provisions
and the
requirement that the applications, or provisional orders, as the case
may be, needed to be brought to the notice of the
respondent and
employees. Notably where effective notice had been given, generally
opposition was forthcoming or there was some
other reaction to the
proceedings.
21.
The
following observations can be made from the unopposed matters that
were enrolled before what was the first week of the dedicated
insolvency court in the Gauteng Division of the High Court. This
court is a pilot, the objective of which is to divert all insolvency
related applications to the dedicated insolvency motion court,
whether unopposed or opposed, on the general unopposed motion roll,
the general opposed motion roll or the urgent motion roll.
[6]
22.
As
a result the sequestration and liquidation applications that would
otherwise have been heard that week by diverse general unopposed
motion courts
[7]
were instead
heard by a single court. This allowed what may be a prevailing
pattern across these type of matters to be discerned.
23.
Of the twelve unopposed liquidation or sequestration applications
enrolled for the week, only three were compliant when
it came to the
requirement for effective notice to employees.
24.
In several of the matters where there had not been effective notice
to respondents or employees, the deficiencies in the
application went
beyond the statutory formalities and related also to the substantive
merits of the applications. As it would transpire,
some of these
matters were removed for one or other reason before or immediately
upon being called in court and so without any
engagement on the
matter by the court. This judgment does not directly concern those
matters. Suffice it to state a failure on
the part of the applicants
to give effective notice to respondents or employees was generally
symptomatic of an overall disregard
for or inattentiveness to what
was required for a well-founded liquidation or sequestration
application, both substantively and
procedurally.
25.
Rather this judgment concerns those unopposed matters that remained
enrolled and where orders were sought notwithstanding
the ineffective
notice to the respondent and/or employees and other deficiencies,
whether procedurally or substantively.
26.
It is not surprising that no opposition was forthcoming in those
matters notwithstanding the serious consequences if the
orders sought
were granted. It may be that the respondents and employees were
unaware that applications had been enrolled for the
liquidation or
sequestration of the respondent, as the case may be, because of the
ineffective notice of the proceedings.
27.
In each instance because of this non-compliance, the order being
sought could not be granted. In some instances, this
necessitated a
removal of the matter from the roll so that the deficiencies could be
addressed. In other instances, the applications
were dismissed where
the deficiencies also went to the merits of the applications.
28.
In each instance, judicial resources were wasted in the court having
to read papers and then hear the applications where
if regard was had
to the notice and other statutory requirements, these matters would
not have been enrolled in the first instance
or otherwise removed
from the roll sufficiently in advance so as to address the
deficiencies.
29.
Particularly
concerning was that in the court roll that had been published during
the preceding week, the attention of the litigants’
legal
practitioners was directed to the notice and service requirements in
sections 346(4A) and 346A of the Companies Act, 1973
and sections
9(4A) and 11 of the Insolvency Act, 1932, including the judgments of
Bravura
Capital (Pty) Ltd v Drive Path Trade & Invest (Pty) Limited
t/a Southern Energy
[8]
and
CC v DC
.
[9]
This clear direction notwithstanding, in most of the matters before
me on the unopposed roll, no regard had been had to this directive,
and if regard was had to the directive, the legal practitioners for
the applicants nonetheless persisted in moving for an order
where
manifestly there had been non-compliance.
30.
In each instance, I enquired whether it would be appropriate not only
for there to be no order of costs arising from what
was effectively a
wasted court attendance, but that an order should be granted
precluding both the attorney and counsel (where
counsel appeared on
behalf of an applicant) from recovering a fee from their client
attendant upon the wasted appearance. In each
instance, either
submissions were made as to why the court should not grant such an
order or it was accepted that such an order
may be appropriate.
31.
The submissions as to why such an order should not be made were not
persuasive. Particularly as not only should the formalities
as
described above be familiar to any legal practitioner that appears in
insolvency matters, but also as there were specific directions
forewarning of the requirement for effective notice and service in
the published court roll.
32.
Nothing that is set out in this judgment should be new. The statutory
requirements introduced for purposes of effective
notice to the
respondent and employees has now been in place for over 22 years.
There are several judgments dealing with this
requirement, including
those as specifically referenced in the published roll. These matters
should not have been enrolled or,
if enrolled, should not have been
persisted with.
33.
Legal practitioners have been cautioned in several practice
directives of this Division that orders of this kind precluding
the
legal practitioners from recovering a fee from their clients may be
granted where there has not been proper regard to the process
and/or
which has resulted in a waste of judicial resources.
34.
Before turning to each matter, and for ease of reference, I repeat
what is set out in
Bravura Capital
when it comes to the notice
requirements in respect of liquidation applications and in
CC v DC
when it comes to notice requirements in sequestration applications.
35.
Bravura Capital
was an instance of an applicant seeking a
winding-up of the respondent based upon inability to pay its debts.
There had been non-compliance
with section 346(4A)(a)(ii) of the
Companies Act in that the employees had not been adequately furnished
with a copy of the application,
and that precluded a final order from
being granted.
36.
Wallis JA in
EB Steam Company (Pty) Limited v Eskom Holdings
SOC Limited
2015 (2) SA 526
(SCA) at paragraphs 16, 17 and 23
held that although it is peremptory that the employees be furnished a
copy of the application,
the modes of doing so as set out in
subsections (aa) and (bb) of section 346(4A)(a)(ii) of the Companies
Act are directory such
that the effective furnishing of the
application can be achieved by other means. The court must be
satisfied that the method adopted
was reasonably likely to make the
application papers accessible to the employees.
37.
In
Bravura Capital
, the applicant sought to rely upon a return
of service that reflected that the application had been served upon
employees at the
registered address by affixing a copy of the process
to the principal door at the registered address. The applicant did
not file
an affidavit by the person who furnished the affidavit to
employees (which in this instance would be the deputy sheriff), as
required
in terms of section 346(4A)(b) and instead relied upon the
deputy sheriff’s return of service.
38.
Often
both attorneys and sheriffs fail to see the distinction between
service of process, which is regulated by Uniform Rule 4,
and the
effective furnishing of the application to the specified persons as
required by section 346(4A) of the Companies Act, 1973.
Section
346(4A) does not require “service” of the application,
but that the application be “furnished”
to the particular
person. “Service” ordinarily and in the context of court
process, refers to the delivery of the document
by the sheriff or
deputy sheriff, in terms of the rules of the particular court. In
contrast, “furnish” does not require
formal service by
the sheriff
[10]
but, in the
context of section 346(4A), that a copy of the application be
furnished to the particular person in a manner that is
reasonably
likely to bring that application to the attention of the person, or,
in the context of employees, reasonably likely
to make the
application accessible to those employees.
39.
Section 346(4A), relating to the
furnishing
of the
application, can be contrasted to section 346A of the Companies Act,
1973 relating to the
service
of the winding-up order, once
granted. The latter section expressly refers to “service”
of the order, and so requires
service of the order by sheriff. And in
effecting such service, the sheriff is required to have regard not
only to the relevant
rules of court, such as Uniform Rule 4, but also
the specific requirements of section 346A.
40.
When a provisional order is sought, the court is not concerned with
the service of the order in terms of section 346A
(as there is no
order), but instead whether there has been effective furnishing of
the application to employees (and the other
parties listed in section
346(4A)).
41.
In
Bravura Capital
I detailed why in that instance I was not
satisfied that the application had been furnished in such a way that
it was reasonably
likely to make the application papers accessible to
the employees. That then raised the consequence of non-compliance
with section
346(4A).
42.
Wallis JA in
EB Steam
furnished the answer - in those
circumstances the court may still grant a provisional order. In
EB Steam
a final liquidation order was sought and granted
by the court
a quo
. On appeal, Wallis JA found in paragraph 26
that the court
a quo
should instead have granted a provisional
winding up order, giving directions if necessary, on how the
employees are to be
served with the papers.
43.
I accordingly found in
Bravura Capital
that it was not open to
me in that matter to grant a final winding-up order as there had been
non-compliance. I went on to find
that a provisional order should
nevertheless be granted notwithstanding the deficiency in furnishing
the application to the employees.
44.
A point of distinction between
Bravura Capital
and the present
matters is that
Bravura Capital
was fully opposed and so it
was appropriate in those circumstances that the deficiencies in
notice could be cured before the return
date. In the present
instances there is no opposition but where such opposition may have
been forthcoming had there been effective
notice of the application
to the respondent and/or employees. As observed, those matters where
there had been effective notice,
opposition was generally forthcoming
or there was some or other reaction to the application.
45.
To use the language of Wallis JA in
EB Steam
at
paragraph 8, the legislative purpose of those sections “
is
not directed at providing a technical defence to the [respondent],
invoked to avoid or postpone the evil hour when a winding-up
order or
sequestration order is made
”. In contrast, in unopposed
matters where there is no effective furnishing of the application to
the respondent and/or employees,
the position is different as the
respondent and/or its employees are denied the opportunity to put
forth meritorious opposition
that may otherwise have been
forthcoming.
46.
I have already set out above the serious consequences of the grant of
a liquidation order and so why a court should not
readily grant even
a provisional order of winding-up where there has not been effective
notice to the respondent and/or its employees
or substantial steps
taken to achieve that.
47.
The judgment in
CC v DC
is to similar effect but in the
context of the notice requirements of section 9(4A) of the Insolvency
Act in relation to the furnishing
of sequestration applications.
48.
In that matter, too, the applicant relied upon a return of service to
establish that there had been notice given to the
employees because
it had been affixed to the principal door for the display of the
employees. As that was a fully opposed matter,
I granted a
provisional order of sequestration and where deficiencies in relation
to furnishing the application upon employees
could then be addressed
by the return date. But, again, that is distinguishable to unopposed
matters where there is no effective
furnishing of the application to
the respondent and/or employees so as to enable them to oppose.
49.
I now turn to deal with each matter.
Rent
A Tank JHB (Pty) Limited v FuelGiants (Pty) Limited – Case No:
2025-012156
50.
The applicant relies upon outstanding amounts due to it in terms of a
written lease agreement pursuant to which it leased
a tanker to the
respondent. It appears from the founding affidavit that telephonic
discussions took place between the applicant’s
legal
representative and the respondent’s director and which were
followed-up by emails including the making of repayment
proposals.
The point is that there was a channel of communication between the
parties.
51.
This notwithstanding, when the time came for the application to be
served upon the respondent, the applicant contented
itself with the
sheriff serving the application at the registered address by affixing
to the principal gate. The return of service
records that:
“
Note:
The given address is known as a residential condominium type complex
known as Madeline Close and consists of various units.
This was
therefore the only manner of service possible”.
52.
No attempt was made to serve the application at the respondent’s
principal place of business, notwithstanding that
the principal place
of business in President Park, Midrand appears from the lease
agreement.
53.
Whilst it is permissible in terms of Uniform Rule 4(1)(a)(v) for
process to be served upon a company at its registered
office, it is
clear from the return of service in this instance that the distinct
possibility existed that the application would
not have come to the
attention of the respondent, attached as it was to the outer gate of
a residential complex. The photographs
showing this as attached to
the service affidavit take the matter no further. If anything, the
photographs show that the application
as affixed to the outer gate is
exposed to every passerby in the street.
54.
In a similar fashion the applicant purported to furnish the
application to employees as required in terms of section
346(4A)(a)(ii) by affixing a copy of the application to the principal
gate of the same residential complex. The return of service
again
describes the address as a ‘residential condominium type
complex’ and that the sheriff ‘was unable to locate
any
employees in the employ of the respondent at the respondent’s
principal place of business’.
55.
Although the address is described in the return of service as the
respondent’s principal place of business, this
appears not to
be so given the nature of the address. To the contrary, the place of
business is elsewhere, in Midrand, to the knowledge
of the applicant.
It is not surprising that the sheriff was unable to locate any
employees at the residential address in Roodepoort.
56.
At the very least the applicant should have sought to ascertain
whether the respondent was conducting business at the
Midrand address
and whether any employees were to be found there. As I have pointed
out above, channels of communication were open
and it should have
been easy enough for the applicant to establish where the business
address was of the respondent, and then to
attend to furnish the
application there both to the respondent itself and to employees.
These endeavours could then have been set
out in the service
affidavit filed in terms of section 346(4A)(b).
57.
It is not surprising that no opposition was forthcoming to the
application as there is no evidence that the respondent
or employees
have any knowledge of the application. What the position may have
been had more care been taken to ensure that the
application came to
the attention of the respondent and its employees is unknown.
58.
Nothing is said in the papers about any attempt to furnish the
application to any trade unions as required in terms of
section
346(4A)(a)(i).
59.
I am not satisfied that there had been substantial compliance with
section 346(4A)(a)(i) and (ii) or even (iv).
Christiaan
Cervaas Herbst N.O. v Execukit (Pty) Limited (in business rescue) –
Case No: 2024-110421
60.
The applicant as the business rescue practitioner of the respondent
sought the discontinuation of the respondent’s
business rescue
proceedings and for the respondent to be placed under final
winding-up in terms of
section 141(2)(a)(ii)
of the
Companies Act,
2008
on the basis that there was no reasonable prospect for the
respondent to be rescued.
61.
The applicant has been the business rescue practitioner since October
2023 and describes the steps taken by him during
the course of the
business rescue proceedings. This included conducting numerous
meetings with the respondent’s representatives,
consulting with
representatives of all affected parties and investigating the affairs
of the respondent. This included obtaining
and evaluating the latest
financial documentation and relating information from the respondent.
A first meeting of creditors was
held in November 2023, as required
in terms of
section 141
of the
Companies Act, 2008
. The applicant
describes how he subsequently came to the conclusion that there was
no longer a further reasonable prospect for
the respondent to be
rescued and that instead the business rescue proceedings should be
discontinued and the company placed under
final winding-up. The
applicant attached to his founding affidavit management financial
statements for the year ended 28 February
2023. These statements
show in the detailed statement of comprehensive income that some R2.6
million was spent on salaries and
wages and some R291, 000 on staff
welfare for 2023. Substantial amounts were also spent on salaries and
wages and staff welfare
the preceding year.
62.
Chapter 6 of the
Companies Act, 2008
regulating business rescue
proceedings has special regard to the position of employees. For
example,
section 144
sets out the rights of employees during a
company’s business rescue proceedings, which includes
representation by registered
trade unions or otherwise by the
employees themselves, notice of
inter alia
any court
proceedings, participation in any court proceedings arising during
the business rescue proceedings and consultation by
the business
rescue practitioner in relation to the development of a business
rescue plan.
Section 148
specifically requires of the business rescue
practitioner within ten business days of being appointed to convene
and preside over
a first meeting of any employee’s
representatives and of which notice must be given to every registered
trade union representing
any employees or to the employees
themselves, if not so represented.
63.
It is therefore extraordinary that when it came for the applicant as
the business rescue practitioner to comply with the
requirement to
furnish the application to the first respondent’s employees
and/or trade unions in terms of section 346(4A)(a)
of the Companies
Act, 1973, that the following is said by him under oath:
“
Whether
the respondent has any employees or not, falls outside my knowledge.
I am further unaware of any trade unions. A copy of
this application
will be served on the respondent’s employees and trade unions,
if any, as envisaged in Section 346(A)(a)
[sic]
by
affixing it to the notice board, alternatively the main door of the
respondent at its registered address. A return of service
will be
submitted to the above Honourable Court.”
64.
It is inconceivable, at least absent explanation, how the business
rescue practitioner given his duties and responsibilities
and the
length of time that he has been a business rescue practitioner can
state that he has no knowledge whether the respondent
has any
employees or of any trade unions. His duties as a business rescue
practitioner specifically required of him to obtain this
knowledge.
65.
The applicant as business rescue practitioner is ideally placed to
know about the respondent’s employees and whether
there are any
trade unions and where they can be found so that effective notice of
the application can be given to those employees
and any trade unions.
66.
Yet all the applicant does is to have the sheriff serve a copy of the
application purportedly on the respondent’s
employees by
attaching it to the principal gate of what is stated in the return of
service to be ‘the registered address
of employees of
respondent’ in Boskruin. The return of service shows that those
premises were locked. And how the employees,
as distinct from the
respondent company, can have a registered address is not explained.
Rather this Boskruin address is the registered
address of the
respondent.
67.
A further return of service is attached to the service affidavit
reflecting that a copy of the notice of set down had
been served upon
the employees at their place of employment at West Tower, 2
nd
Floor, Nelson Mandela Square, Maude Street, Sandton by furnishing a
copy thereof to a Ms Vivian, who is described as “
Admin
”.
Nothing is said in the papers, as far as I can establish, about this
address being the place of employment of the employees.
Further, no
explanation is given as to how the furnishing of the documents to a
single person described as ‘admin’
can constitute
effective furnishing of the application to the employees. A further
return of service describes Ms Vivian as a responsible
employee. But
the same difficulty remains as to how this furnishing of the
documents to a single person, even if an employee, can
constitute
effective notice to employees generally. There is also no explanation
in an affidavit that the Sandton address is the
business address of
the respondent and therefore why it could be expected that employees
would be found at that address. In contrast,
the financial statements
show a business address, at least as at 2023, in Strijdom Park and
not in Sandton.
68.
I am not satisfied that there had been substantial compliance with
section 346(4A)(a)(i) and (ii) or even (iv).
Voltex
(Pty) Limited v Sindiswa Nkangane – Case No: 2025-012071
69.
Some years ago, during May 2019, the applicant obtained judgment
against the respondent based upon a suretyship obligation.
Nothing
further is said in the founding affidavit as to what occurred until 6
November 2024 when a notice of appointment of new
attorneys of record
was served personally on the respondent at her residential address in
Halfway House. The return of service
indicates that personal service
was effected at the respondent’s residential address on 6
November 2024, after two earlier
unsuccessful attempts had been made
on 4 and 5 November 2024 as the residence was locked.
70.
The averment is made in the founding affidavit that an initial
attempt was made to serve a re-issued warrant of execution
on 27
November 2024 at the residence but that the residence was found
locked. This was followed by a subsequent attempt on 3 December 2024
where again the residence was found locked. The sheriff stated in his
return of service that after ‘several attempts as listed
below’, he could find neither the execution debtor (the
respondent) nor any attachable assets as the residence was constantly
locked. The return of service also records that it cannot be
ascertained whether the execution debtor resides at that address in
Halfway House or has any attachable assets.
71.
The applicant contends that this constitutes sufficient evidence to
demonstrate an act of insolvency in terms of section
8(a) of the
Insolvency Act, in that the respondent has departed from her dwelling
or otherwise absents herself, with the intent
by so doing to evade or
delay the payment of her debts.
72.
Although the sheriff stated that ‘several attempts’ were
made to execute at the respondent’s residence,
as appears from
the return of service only a single attempt was made and that was on
27 November 2024. Shortly before that personal
service was achieved,
on 6 November 2024, of the notice of appointment of attorneys. And
that was after two unsuccessful attempts.
73.
Remarkably, there is a return attached to the service affidavit that
shows that the application was personally served
on the respondent at
her residence in Halfway House on 17 February 2025. This is
remarkable because the averment is that during
November 2024 the
non-service of the warrant of execution was because the respondent
was absenting herself so as to evade or delay
payment of her debts.
74.
When it came to serving the notice of substitution of attorneys of
record and the application, the applicant was able
to succeed in
obtaining personal service on the respondent, even if that meant
several earlier failed attempts because the premises
were locked. But
persistence shows that personal service could be achieved. Yet, when
it came to the attempted service of the warrant
of execution which
would form the basis for the act of insolvency, only a singular
attempt was made. It is difficult to appreciate
how it can be said
that the respondent was seeking to evade or delay payment of her
debts by absenting herself during late November
and early December
2024 where personal service was achieved both before and after that
of other documents.
75.
I
considered dismissing the application on its merits. Counsel sought
that the application rather be removed so that there could
be
supplementation of the papers to address the deficiency. I was
persuaded not to dismiss the application on its merits but to
rather
remove the application. The potential prejudice caused by a delay in
the hearing of a sequestration application arising
from the removal
from the roll of the application is not as pronounced as in the case
of a liquidation application. The grant of
a sequestration order, as
distinct from the granting of a winding-up order, does not have the
serious consequence of automatically
voiding otherwise valid
transactions that occurred during the period between the launch of
the sequestration application and the
grant of the sequestration
order.
[11]
76.
As with the other matters, the deficiencies in the papers went
further. The averment is made in the service affidavit
that the
applicant is unaware whether the respondent has any employees or
whether they belong to a registered trade union but that
nonetheless
a copy of the application will be served at the respondent’s
chosen
domicilium citandi et executandi
and residential
address for the attention of employees. There is however no proof
that this then took place.
77.
In any event, even if it did, absent further explanation this can
hardly suffice for there to be effective notice to employees.
The
respondent’s
domicilium citandi et executandi
address is
not an address relevant to employees. In any event, the
domicilium
address that appears in the acknowledgement of debt pursuant to which
judgment was granted is a different address.
78.
As
the applicant was able to make contact with the respondent, including
by way of personal service of the application upon her
on 17 February
2025, as appears from the return of service, it should have been a
simple enough task for the appropriate enquiries
to be made of the
respondent whether she had any employees, such as domestic
workers,
[12]
and if so where
they could be located so that effective notice could be given to
them.
79.
This too is another instance where no reasonable attempt was made to
give effective notice to employees.
ABSA
Bank Limited v Allo Rowed Properties CC – Case No: 2024-081809
80.
On 7 November 2024 the respondent was placed under provisional
winding-up, with a return date.
81.
The applicant creditor seeks the final winding-up of the respondent
as being deemed to be unable to pay its debts in terms
of section
345(1)(a) of the Companies Act, 1973 in that demand had been made by
the applicant of the respondent to make payment
by way of a demand
served on the respondent by leaving the demand at its registered
office and where the respondent had for three
weeks thereafter
neglected to pay the sum, or to secure or compound for it to the
reasonable satisfaction of the applicant creditor.
82.
This demand is dated April 2024. The averment is made in the
founding affidavit that it was served by sheriff upon
the respondent
at its registered address on 21 April 2023, a year earlier. However,
the return of service that is attached in proof
of this is a return
of service that relates to service of a demand upon a different
company and on a different date. This raises
concern as to whether
the applicant’s reliance on the deeming inability to pay debts
in section 345(1)(a) is well-founded
as the jurisdictional facts for
reliance upon that sub-section were lacking.
83.
I further enquired of the applicant’s attorney, who appeared to
move the application, whether, and leaving aside
that there was no
proof that the demand had been left at the respondent’s
registered office, the demand may be ‘stale’
and whether
it should in those circumstances sustain a winding-up application in
terms of that section.
84.
My concern that the demand may be stale was fortified by the barest
of averments made in the founding affidavit in support
of the
winding-up of the respondent. The indebtedness relied upon by the
applicant is an indebtedness arising from a suretyship
concluded in
September 2016 and where the indebtedness is stated to be outstanding
in an amount as at 19 July 2022. The certificate
of balance that
is attached to the founding affidavit in support of the balance is,
as far as I can establish, undated and again
describes the
indebtedness as at 19 July 2022.
85.
The general impression created by the founding affidavit is that it
is based upon outdated information with no attempt
to describe what
may have happened since and particularly as to whether it was
appropriate for the respondent to be placed under
winding-up because
of an alleged inability to pay its debts.
86.
This too is a case where there has been no substantial effort made to
serve the provisional order on the respondent’s
employees or
trade unions as required in terms of section 346A(1) of the Companies
Act, 1973. The applicant went no further than
having the sheriff
serve a copy of the provisional order at what is described in the
return of service as the employees’
domicilium citandi et
executandi
at an address in Linden Extension, Randburg.
Self-evidently, the employees could not have chosen a
domicilium
citandi et executandi
. Further, the return of service states that
the order was served upon a Mrs J S Badenhorst, receptionist of
Odendaal & Co Auditors.
This cannot constitute effective service
where it appears that at best the address is the auditor’s
office, albeit the registered
address of the respondent. It cannot be
expected that any employees would be found at that address.
87.
The same form of service was relied upon as service of the
provisional order on the respondent itself. Again the address
is
described in the return of service as a
domicilium citandi et
executandi,
this time of the respondent. Ordinarily and absent
explanation, a
domicilium citandi et executandi
cannot serve
as an address for service of a provisional order. Although that same
address is described in the founding affidavit
(but not in the return
of service) as the “
known registered business
” of
the respondent, the proof that is attached to the founding affidavit
of this is an extract from records of the Companies
and Intellectual
Property Commission dating back to 25 January 2023.
88.
Notably the application had also been served, for purposes of section
346(4A)(a)(ii) and (iv) at this same address. Those
returns describe
the address as an auditor’s office and where the deputy sheriff
was informed by the receptionist that the
respondent is not one of
their clients. This notwithstanding, once the provisional order was
granted, the applicant made use of
the same auditor’s address.
89.
The general impression gained from the papers is that no real attempt
was made to furnish notice of the winding-up application
(which too
was served at the Linden address) or of the provisional order once
granted to either the respondent or its employees.
A further
impression gained from the papers, where the tersest of averments are
made based on predominantly outdated information,
is an
ill-considered debt-collecting procedure without regard to the
serious consequences that the granting of a winding-up order
may
have.
90.
In my view, no justifiable purpose would be served in allowing these
proceedings to continue. I gave serious consideration
to discharging
the provisional order rather than removing it from the roll, as
sought by the applicant, particularly given the
deficiencies in
relation to the service of the section 345(1)(a) demand and concerns
whether the demand was ‘stale’.
I invited the applicant’s
attorney to make written submissions as to whether the demand was
‘stale’ and should
found the basis for a final winding-up
as well as to the fate of the application.
91.
Written submissions were furnished. During the course of preparing
this submissions, the applicant’s attorney conducted
an updated
search of the records of the CIPC and ascertained that the respondent
had been deregistered as far back as January 2024.
This was before
the liquidation application had been launched. The provisional order
has been granted while the respondent is deregistered.
92.
The applicant has indicated that it intends applying for the
re-registration of the respondent.
93.
As the respondent is presently deregistered, the appropriate order
would be to remove the matter from the roll. It will
be for the
applicant to untangle the situation it has created that would have
been avoided if the elementary step was taken to
conduct an updated
CIPC search before launching the liquidation proceedings in July 2024
instead of relying upon a search that
dated back to January 2023.
That search already reflected that at that stage the respondent was
in the process of being deregistered,
although not yet actually
deregistered.
94.
The elementary step of first ascertaining whether the respondent was
deregistered would also have avoided the wasted of
judicial
resources. Both the court that granted the provisional order and this
court on the return date has had to read and attend
to an application
that should not have been enrolled, or even launched in the
prevailing circumstances.
95.
An order will follow precluding the applicant’s legal
representatives from recovering any fees or disbursements
that relate
to the enrolment of and hearing of this application on 12 May 2025.
Rossgro
Billing (Pty) Limited v Rainbow Cash and Carry (Pty) Limited –
Case No: 2025-014518
96.
The applicant creditor launched proceedings on 4 February 2025
seeking the winding-up of the respondent. But, the applicant
avers in
a supplementary founding affidavit, after the launch of the
application the respondent placed itself under voluntary winding-up
by way of resolution. The applicant now seeks instead by way of an
amended notice of motion that the voluntary winding-up of the
respondent be converted to a winding-up by the court, with the deemed
date of commencement of the winding-up being retrospective
to when
its application for compulsory winding-up was issued on 4 February
2025.
97.
Various difficulties presented themselves. This included the absence
of any proof that the respondent had placed itself
under voluntary
winding-up. The document that was annexed in support of the averment
related to a different company and so did
not constitute proof of a
voluntary winding-up. This was readily conceded by the applicant’s
counsel. Further, the amended
notice of motion and supplementary
founding affidavit now seeking a conversion of the voluntary
winding-up to a compulsory winding-up,
both dated 9 May 2025, had not
been served at all in any form upon the respondent. Again, the
applicant’s counsel accepted
that this presented a difficulty.
A further difficulty is that in relation to the respondent being
unable to pay its debts, the
applicant relied upon a statutory demand
in terms of section 345(1)(a) of the Companies Act, 1973 but where
there was no proof
that such demand had been served upon the
respondent at its registered office as required in terms of the
section. The document
that had been attached in support of service of
the demand does not support the averment at all.
98.
But what is particularly relevant for purposes of this judgment is
that this was another instance where no attempt had
been made to give
effective notice of this application to employees. The return of
service relied upon for this purpose shows that
whilst an application
was served at the employees’ principal place of business, that
service was by way of furnishing a copy
to a Mr Abdul, who is
described as an employee. This does not constitute effective notice
to employees, at least in the circumstances
appearing from the
papers. Furnishing the application to a single employee does not
constitute effective compliance with the requirements
of section
346(4A)(a)(ii), particularly where it appears that there is access to
the premises where the employees were situated
and so absent
explanation there was no reason why the application could not be
furnished in the manner as described in terms
of
section 346(4A)(a)(ii)(aa), which is by affixing a copy of the
application to any notice board to which the applicant and
the
employees have access inside those premises.
99.
The same form of service was relied upon for furnishing the
application to the trade unions. The return of service records
that
the Mr Abdul, an employee, confirmed that the trade unions are “still
employed” at the respondent’s principal
place of
business. Self-evidently the trade unions cannot be employed, and
would not be found at the respondent’s place of
business.
100.
For all these reasons, the application was removed from the roll,
with a similar costs order as in the other matters.
Chab
Truck and Trailers Repairs (Pty) Limited v AD Trailers Sales and
Repairs (Pty) Limited – Case No: 2024-135130
101.
In this matter, as with the preceding matters, the applicant
contented itself with service of the application upon the
respondent
as well as its employees by no more than affixing a copy of the
application to the main entrance gate of what is described
as the
respondent’s registered address in New Redruth, Alberton. The
Sheriff’s return of service in each instance records
that “
No
intercom, no one is coming to the gate, private residence, premises
locked
”.
102.
Similarly, the same form of service is advanced as proof of effective
notice to the trade unions of the employees.
103.
There are indications in the papers that the respondent may be
operating from a different address and where employees
could be
located, being an address situated in Elsburg, Germiston and where
the equipment that was leased by the respondent from
the applicant
and which resulted in the indebtedness is situated. Whilst it is so
that the averment is made in the founding affidavit
that the
application will be served upon the respondent at both its registered
address and principal place of business, the remarks
made by the
sheriff in his returns of service belies the New Redruth address as
being the business address, more particularly as
those premises were
locked and constitute a private residence.
104.
Again, I was not satisfied that there had been substantial compliance
with or attempts to comply with furnishing the
application to the
respondent, the trade unions and the employees. The matter was
removed from the roll with a costs order along
the lines of the other
matters.
Credit
Guarantee Insurance Corporation of Africa Limited & Others v
Habitech Finansiering (Pty) Limited – Case No: 2022/028800
105.
The application for winding-up was launched during January 2025,
notwithstanding the case number. It appears that the
same case number
was used as that in a preceding action between the parties which
resulted in summary judgment being granted against
the respondent and
which forms the debt for purposes of the winding-up application.
106.
Again, the deficient furnishing of notice to the respondent’s
employees was evident. It is not necessary to belabour
the point any
more other than to state that this is a further instance where the
sheriff purported to serve a copy of the application
on employees at
what is described as the registered address of the respondent and
where in this instance the sheriff was specifically
informed by a
named person at the premises that there were no employees of the
respondent company at that given address. This notwithstanding,
the
applicant was content with an affixing of a copy of the application
to the main entrance, with the knowledge that there are
no employees
at that address.
107.
There is no evidence that the applicant made reasonable attempts to
ascertain whether the respondent still traded and
where the employees
may be found, notwithstanding that the summary judgment proceedings
that have led to the debt have been defended
and so where the
attorneys of record for the respondent could have been approached for
further information.
108.
As in the other matters, a similar order was made.
Kagiso
Ratloo Mookane and 18 Others v Sakhile Ezweni Group (Pty) Ltd –
Case No: 2024-052414
109.
As will appear below, this is an application plagued with
deficiencies.
110.
On 13 May 2024, and by way of a notice of motion dated 11 April 2024,
the nineteen applicants launched proceedings seeking
the final
winding-up of the respondent. The application was however only served
on the respondent from nine months later, on 15
January 2025.
111.
The applicants allege that the respondent as their erstwhile employer
is indebted to them for unpaid employment benefits.
The applicants
obtained default judgment against the respondent on 24 January 2023.
Attempts to execute upon the judgment resulted
in the attachment of
certain movable assets, which were insufficient to settle the
indebtedness. The applicants however rely upon
the deemed inability
of the respondent to pay its debts as provided for in section
345(1)(a), that is, the neglect of the respondent
to pay the sum
demanded and to secure or compound for it to the reasonable
satisfaction of the applicants consequent upon service
of a demand
upon the respondent at its registered office.
112.
The founding affidavit appears to be commissioned as it is signed by
a commissioner who has identified himself but there
is no date that
the oath was administered. There is no evidence as to when the
founding affidavit was deposed to. Although I stood
down the matter
to enable the applicants’ counsel to take instructions, this
issue was not cleared up. At most, counsel submitted
that there may
have been other versions of the affidavit and that in uploading the
documents to the electronic court file, something
had gone awry.
113.
The relevance of this is not so much as to whether the oath was
properly administered (although that may be a concern),
but rather as
to how the absence of a date to the founding affidavit features in
the delay of some nine months between when the
application was
launched on 11 April 2024 and when it was eventually served on the
respondent on 15 January 2025. I raised this
lengthy delay with the
applicants’ counsel and invited her submissions on the delay
and whether in the circumstances the
application should be dismissed
rather than removed from the roll as sought by counsel. I expressed
my concern that if a liquidation
order was granted pursuant to this
application, the retrospective deemed date of commencement of the
winding-up in terms of section
348 of the Companies Act, 1973 would
be as far back as 11 April 2024. As cautioned earlier in this
judgment, this would have the
effect of automatically voiding all
dispositions made by the respondent since 11 April 2024. By this
stage, that is a period of
some thirteen months, and should the
matter be removed so that the deficiencies can be addressed, that
period would be even longer.
114.
Having stood the matter down so that counsel could take instructions,
including as to the delay and the fate of the application,
submissions were then made from the bar that the reasons for the
delay were that there were no funds available for some time to
enable
the continued prosecution of the application, that there was a delay
in signing the founding affidavit, that there was a
delay in
obtaining a court date and that on a previous occasion when the
matter had been enrolled, it had to be removed because
papers were
not available electronically. Also, there has been settlement
negotiations. No affidavit was filed and so these submissions
were
made from the bar rather than in the form of evidence.
115.
Even accepting these submissions as made from the bar, these reasons
do not explain the specific delay that concerns
me, which is the
delay between the launch of the application on 11 April 2024 and its
service on the respondent only some nine
months later on 15 January
2025. I fail to see how a delay in the signing of the founding
affidavit is of any relevance because
presumably the founding
affidavit accompanied the notice of motion. The notice of motion
expressly refers to the founding affidavit
accompanying the
application and so the founding affidavit should have existed already
at that stage. The founding affidavit could
not have been signed
afterwards if the application had already been launched. That there
is no date indicating when the affidavit
was deposed to only deepens
the concern. Similarly, I do not see how delays in obtaining a date
and then the subsequent removal
of the matter from the roll on an
earlier occasion relates to the delay with which I am concerned. The
applicants could hardly
have sought that the matter be enrolled
before the application had been served.
116.
There is therefore no cogent explanation as to the delay of nine
months between the launching of the application and
the service of
the application on the respondent. This delay in prosecution in my
view has the potential to be seriously prejudicial
not only to the
respondent but to all the other interested parties for the reasons I
have described earlier in this judgment.
117.
As to the furnishing of notice of the application to employees, there
is no evidence at all that this took place. There
is no affidavit as
required in terms of section 346(4A)(b) setting out the manner in
which notice had been given to the trade unions,
where applicable,
and to the employees. Counsel directed me to an affidavit by a person
employed by the attorneys who attended
to “serve” the
application upon the respondent’s receptionist. This affidavit
in no way pertains to giving notice
to employees. Rather it is an
affidavit that is intended to constitute proof that the application
was served upon the respondent.
118.
Notably, there is no return of service by the sheriff that the
sheriff or his or her deputy attended to serve the application
on the
respondent. The applicants appear to have contented themselves with
“serving” the application on the respondent
themselves
through their attorneys rather than through the sheriff by way of
Uniform Rule 4.
119.
While I have described above the benefit of a candidate attorney or a
well-informed messenger attending to furnish notice
on employees in
compliance with section 346(4A)(a), when it comes to furnishing a
copy of the application to the respondent’s
employees and trade
unions, ordinarily and absent explanation, when it comes to the
respondent itself, the application should,
given the seriousness of
the relief sought, be served by way of sheriff.
120.
I have also been unable to locate a certificate of tendered security
from the Master as required in terms of section
346(3) nor proof that
the application was furnished to the South African Revenue Services
as required in terms of section 346(4A)(a)(iii)
nor that a copy of
the application was lodged upon the Master as required in terms of
section 346(4) of the Companies Act, 1973.
Ordinarily, compliance
with these statutory formalities would be found in the affidavit
furnished in terms of section 346(4A)(b)
but, as stated, there is no
such affidavit.
121.
The applicants’ counsel sought rather than that the application
be dismissed, that it be removed from the roll
so that the
deficiencies could be addressed.
122.
Given that the application bristles with deficiencies and given the
potentially serious effect that a belated granting
of a liquidation
order would have by way of the operation of section 348 of the
Companies Act, 1973 in the deemed date of commencement
being
retrospective to April 2024, I dismissed the application. Should the
applicants be advised to persist in seeking the winding-up
of the
respondent, liquidation proceedings can be initiated afresh, without
the potentially serious detrimental effect described
above.
Rent
A Tank JHB (Pty) Limited v FuelGiants (Pty) Limited – Case No:
2025-012156
123.
The following order was made on 12 May 2025:
123.1.
The application is removed from the roll, no order as to costs.
123.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
client relating to
the enrolment and hearing of the application on 12 May 2025.
Christiaan
Cervaas Herbst v Execukit (Pty) Limited (in business rescue) –
Case No: 2024-110421
124.
The following order was made on 12 May 2025:
124.1.
The application is removed from the roll, no order as to costs.
124.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
client relating to
the enrolment and hearing of the application on 12 May 2025.
Voltex
(Pty) Limited v Sindiswa Nkangane – Case No: 2025-012071
125.
The following order was made on 12 May 2025:
125.1.
The application is removed from the roll, no order as to costs.
125.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
client relating to
the enrolment and hearing of the application on 12 May 2025.
ABSA
Bank Limited v Allo Row Properties CC – Case No: 2024-081809
126.
The following order is made:
126.1.
The application is removed from the roll, no order as to costs.
126.2.
The applicant’s legal representatives are precluded from
recovering any fees or disbursements from their client
relating to
the enrolment and hearing of the application on 12 May 2025.
Rossgro
Billing (Pty) Limited v Rainbow Cash ‘n Carry (Pty) Limited –
Case No: 2025-014518
127.
The following order was made on 13 May 2025:
127.1.
The application is removed from the roll, no order as to costs.
127.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
client relating to
the enrolment and hearing of the application on 13 May 2025.
Chab
Truck and Trailers Repairs (Pty) Limited v AD Trailers Sales and
Repairs (Pty) Limited – Case No: 2024-135130
128.
The following order was made on 14 May 2025:
128.1.
The application is removed from the roll, no order as to costs.
128.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
client relating to
the enrolment and hearing of the application on 14 May 2025.
Credit
Guarantee Insurance Corporation of Africa Limited & Others v
Habitech Finansiering (Pty) Limited – Case No: 2022/028800
129.
The following order was made on 14 May 2025:
129.1.
The application is removed from the roll, no order as to costs.
129.2.
Both the attorneys and counsel for the applicant are precluded from
recovering any fees or disbursements from their
clients relating to
the enrolment and hearing of the application on 14 May 2025.
Kagiso
Ratloo Mookane and 18 Others v Sakhile Ezweni Group (Pty) Ltd –
Case No: 2024/052414
130.
The following order was made on 15 May 2025:
130.1.
Application dismissed, no order as to costs.
B M
Gilbert
Acting
Judge
Dates
of hearing:
12, 13, 14 & 15 May 2025
Date
of judgment / reasons:
19 May 2025
Appearances:
Withheld
[1]
Section
361(1) of the Companies Act, 1973.
[2]
Engen
Petroleum Ltd v Goudis Carriers (Pty) Ltd (in liquidation)
2015
(6) SA 21
(GJ), para 15.
[3]
Section
20(1)
of the
Insolvency Act, 1936
[4]
Ward
v Barrett NO & Another
1963
(2) SA 546
(A) at 552D–H.
[5]
Section 341(2) of the Companies Act, 1973. As to the wide reach of
this voiding section, see the recent Supreme Court of Appeal
decisions in
Mazars
Recovery & Restructuring (Pty) Ltd and Others v Montic Dairy
(Pty) Ltd and Others
2023
(1) SA 398
(SCA) and
Pride
Milling Co (Pty) Ltd v Bekker NO and Another
2022
(2) SA 410 (SCA).
[6]
See
notice of the Office of the Deputy Judge President dated 10 March
2025.
[7]
Generally,
three
motion courts each day, with not necessarily the same judges sitting
each day and which includes acting judges,
[8]
[2021] ZAGPJHC 3 (1 February 2021)
[9]
[2020] ZAGPJHC 225 (12 August 2020)
[10]
Ex
parte De Villiers Berrange NO v Samsudin & another
[2005]
JOL 13692
(N) at p 29.
[11]
Contrast
section 341(2) as read with section 348 of the Companies Act, 1973.
[12]
See
Stratford
and others v Investec Bank Ltd and Others
2015
(3) SA 1
(CC) para 37 where the Constitutional Court found that
employees for purposes of section 9(4A) includes all employees, and
specifically
domestic employees.
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