Case Law[2025] ZAGPJHC 1144South Africa
DCV Alternative Power Solutions CC t/a DCV Lintely Supply v Pretorius (2022/048135) [2025] ZAGPJHC 1144 (10 November 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
27 August 2024
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## DCV Alternative Power Solutions CC t/a DCV Lintely Supply v Pretorius (2022/048135) [2025] ZAGPJHC 1144 (10 November 2025)
DCV Alternative Power Solutions CC t/a DCV Lintely Supply v Pretorius (2022/048135) [2025] ZAGPJHC 1144 (10 November 2025)
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sino date 10 November 2025
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
CASE
NO: 2022-048135
(1)
REPORTABLE NO
(2)
OF INTREST TO OTHER JUDGES NO
(3)
REVISED YES
In
the matter between
DCV
ALTERNATIVE
POWER SOLUTIONS
CC
T/A DCV LINTEL SUPPLY
Applicant
and
IVAN ALAN EDWARD
PRETORIUS
(ID
number 7[…])
Respondent
JUDGMENT
ANDRÉ
GAUTSCHI AJ
[1]
This is the return day of a provisional sequestration order. The
applicant seeks confirmation of the rule and to place
the estate of
the respondent into final sequestration. The respondent seeks a
discharge of the rule and dismissal of the
application.
[2]
Two odd events occurred shortly
prior to the hearing before me. The first was that the respondent
delivered a supplementary answering
affidavit two court days before
the hearing, without any explanation as to why it was delivered that
late or seeking any indulgence.
This was not the first time that the
respondent had done something at the last minute. He delivered a
notice of intention to oppose
late on 24 April 2024, causing the
matter enrolled for 7 May 2024 to be removed from the roll, with the
respondent
agreeing to pay the wasted costs on a punitive scale.
His answering affidavit was delivered on 27 August 2024, the day
before the set down date of 28 August 2024. The last minute delivery
of documents smacks of a stratagem to delay any impending hearing.
The second was that another creditor, using the same attorneys
as the
applicant, delivered an intervening application on 25 October 2025,
the Saturday prior to the hearing before me on Monday
27 October
2025.
[3]
At the outset of the hearing,
applicant’s counsel, Mr J M Hoffman, indicated that he wished
the application to proceed. For
that purpose he was prepared to have
the late supplementary answering affidavit admitted and to waive the
applicant’s right
to reply thereto. Respondent’s counsel,
Mr C E Thompson, indicated that if the intervening application
remained, the respondent
wished to have an opportunity to answer
thereto. That caused me to enquire of the intervening creditor’s
counsel, Mr L Hollander,
what he intended to do about the intervening
application. He indicated at first that it was conditional and could
simply wait in
the wings to see which way the wind blew at the
hearing before me. Once I indicated that that was not acceptable,
after a short
stand down Mr Hollander informed me that the
intervening application would be withdrawn, to allow argument in the
application to
proceed.
[4]
The provisional
sequestration order was granted on 2 September 2025 by Wasserman AJ.
He had before him the founding papers, an answering
affidavit and a
replying affidavit, as well as a supplementary affidavit handed up to
him from the Bar at the hearing. Mr Hoffman
read excerpts from the
transcript of the previous hearing to me, from
which
it was clear that counsel
then appearing for the respondent, Mr Stander
[1]
,
had consented to the supplementary affidavit being admitted. That
caused Mr Thompson to advise me that neither he nor his attorney
(the
respondent’s present attorneys, not being the attorneys of
record at the time of the previous hearing) was aware of
the fact
that the supplementary affidavit had been handed to Wasserman AJ and
formed part of the papers before the court (as opposed
to simply
having been uploaded onto CaseLines). Attached to that affidavit
there were two letters, virtually identical, one with
prejudice and
the other without prejudice, written by the respondent’s then
attorney, offering to compromise the debt. The
applicant intended to
rely on this as a third offer to compromise, being an additional act
of insolvency in terms of section 8(e)
of the Insolvency Act, No 24
of 1936 (“the
Insolvency Act&rdquo
;)
[2]
.
This affidavit had not been dealt with by the respondent in his
supplementary answering affidavit, and Mr Thompson indicated that
he
wished to take instructions from the respondent
inter
alia
about
whether this letter had been written on the respondent’s
instructions and whether it had been explained to him that
such a
letter could constitute an act of insolvency. He had not been able to
get hold of the respondent on the day of the hearing,
to take
instructions, and sought a postponement in order to do so. In
reserving judgment, I reserved judgment on this aspect too.
[5]
For reasons
which
will
become clear, I decline to afford the respondent an opportunity of a
further postponement, and I shall decide the matter on
the papers
before me.
[6]
The salient facts may be stated as follows.
[6.1]
On or about 14 November 2019, the applicant obtained a court
order
against the respondent for the payment of two amounts, namely
R 976 141.78 plus interest at 10.25% and R 1 034 337.37
plus interest at 14.5%. The fact of the
judgment
debt is not in dispute. The judgment debt was joint and several with
Alleyroads Construction (Pty) Ltd and Alleyroads Supply
(Pty) Ltd in
respect of the first amount, and joint and several with Alleyroads
Construction (Pty) Ltd in regard to the second
amount.
[6.2]
On 15 February 2021, the
respondent through his
attorney made his first offer of compromise in writing. The relevant
part reads (after dealing with the financial
position of Alleyroads
Construction (Pty) Ltd and Alleyroads Supply (Pty) Ltd):
“
Mr Pretorius,
cited herein in his capacity as surety, owns no assets
which
are capable of being liquidated for the purpose of settling this debt
and the
judgment
creditor will likely be required to go through a financial enquiry
process to determine his ability to repay part or all
of the debt.
You are no doubt aware that this is a slow, tedious and often,
fruitless exercise.”
The letter then continues
to make an offer of settlement to pay R 1 000 000, or
make some land parcels available,
or to cede some shares. As
contemplated in
section 8(e)
of the
Insolvency Act, this
is an
offer to make an arrangement with a creditor to release him partially
from his debt. This letter was first referred
to in and attached to
the
replying affidavit
.
[6.3]
The
application
for the sequestration of the respondent’s estate was launched
in 2022.
[6.4]
On 26 August 2024, just before delivery of the
answering affidavit
,
the respondent made his second offer of compromise in writing. The
relevant parts of the letter read:
“
As discussed, our
client has instructed us to make the following “
WITHOUT
PREJUDICE
”
settlement proposal and as such, our client herewith tenders payment
in the amount of R 1 000 000.00 …,
in full and
final settlement of our client’s (in his personal capacity)
liability towards your client.
…
Further be advised that
our client will be drawing these funds from its other entities and as
such, our client will only be in a
position to make such payment
within 21 days from date hereof.”
This letter is again an
offer to make an arrangement to be partially released from his debt.
It is also an acknowledgement of the
respondent’s
inability to pay the reduced amount from his own funds.
It was
also first referred to in and attached to the
replying
affidavit
.
[6.5]
After many fits and starts the
application
was eventually set down for hearing on 1 September 2025, and came
before Wasserman AJ on 2 September 2025. On that day he granted
the
provisional
sequestration
order, returnable on 27 October 2025. Wasserman AJ
clearly
thought that the
answering affidavit
revealed no defence, and granted the provisional order.
[6.6]
As already indicated, the supplementary
affidavit
was handed up to Wasserman AJ at the hearing before him. It contained
two annexures,
which
were the with and
without prejudice letters
which
the applicant relies
on as the third offer of compromise: The without prejudice letter
reads:
“
We confirm our
instructions to make the following settlement proposal
on
behalf of
our client:
[After setting out
details and value of one of the
respondent’s
companies, that owns a
property] Our client proposes the
following three options in terms of the property in settlement of his
debt:
1.
Your client can have can have (
sic
) 33% shares in the office;
2.
Your client can
purchase
the office at
R 5 mil and repay our client the balance after settlement
of his debt;
3.
Our client will sell the office and pay your client the indebted
amount from the proceeds of the
sale. Our client consents to your
client appointing their own conveyancer to attend to the transfer of
the property.”
The with prejudice offer
is in virtually identical terms.
[7]
The case made out in the
founding affidavit was that the applicant had made several
unsuccessful attempts to execute on the court
order against the
companies and the respondent, and had held two unsuccessful auctions
of the respondent’s shares in Alleyroads
Energy (Pty) Ltd, the
holding company of the group. It then chronicled attempts to have the
respondent’s immovable
property
declared specially
executable,
which
the respondent then sold
to another of his companies, Alleyroads Holdings (Pty) Ltd. The
applicant branded this as an act of insolvency
in terms of
section
8(c)
of the
Insolvency Act
[3
]
.
Under the heading of advantage to creditors, the applicant
inter
alia
made
the
allegation
that it would be just and
equitable for the respondent’s estate to be sequestrated
forthwith as he was unable to pay his debts.
The founding affidavit
also dealt with the required formalities.
[8]
The judgment debt is not in dispute, as I have already indicated.
Advantage to creditors, although notionally in dispute,
may quickly
be dispensed with. The respondent’s case is that he is well
able to pay the debt and, even if untrue, establishes
reason to
believe that a sequestration of his estate will be to the advantage
of creditors. The formalities are also not really
in dispute.
[9]
The respondent’s main attack is on the act of insolvency. In
his heads of argument, Mr Hoffman relied on
section 8(b)
(
nulla
bona
return),
section 8(c)
(disposition of
property
with the effect of prejudicing creditors) and
section 8(e)
(an
arrangement to be released from indebtedness) of the
Insolvency Act.
The
answering affidavit and supplementary answering affidavit raise
mainly technical points, the main one being that the respondent
had
come to meet a case under
section 8(c)
of the
Insolvency Act, that
any other alleged acts of insolvency were not relied on in the
founding affidavit, but in the replying affidavit (and supplementary
affidavit), and could therefore not be taken into account against the
respondent.
[10]
It is accepted that the
respondent
was not
able to deal in the
answering affidavit
with any
allegations
involving
section 8(e)
of the
Insolvency Act, since
the first two
letters relied on appeared for the first time in the replying
affidavit, and the third in the supplementary affidavit.
However, the
respondent’s response in his supplementary affidavit is
illuminating. As I have already indicated, he raised
mainly technical
points. With regard to
section 8(e)
, he dealt with the letter of 21
February 2021, correctly pointing out that it was a letter which
pre-dated the launching of the
sequestration application. However, he
ignored, completely, the letter of 26 August 2024, and although I
accept that counsel and
attorney for the respondent were not aware
that the supplementary affidavit had served before the court, the
respondent knew about
this affidavit, and pointedly avoided dealing
with its contents by the following statement in his supplementary
affidavit:
“
Nor can the
purported supplementary affidavit
dated
21 October 2025 be utilised in order to remedy this inherently
defective case.”
It is therefore clear to
me that the respondent pointedly avoided dealing with the problematic
letters, and that he had the opportunity,
had he wanted to use it, to
deal with the letters comprising the third offer of compromise. It is
clear to me that, had the respondent
pertinently been advised that
the applicant’s supplementary affidavit was indeed before the
court, he would still have avoided
dealing with the third offer of
compromise. For that reason, it seems to me that the request for
postponement is not justified,
and I decline to give effect to that
request.
[11]
Mr Hoffman relied on the
case of
Berrange
[4]
,
which
is to the effect that a
sequestrating creditor is entitled to rely on an act of insolvency
which
occurred after the date
of the founding papers. This is undoubtedly a salutary rule, and
especially in the present case, where the
respondent used the
opportunity to deliver a supplementary answering affidavit after the
provisional order had been granted, in
order to resist a final
sequestration order, and therefore had the opportunity to deal with
anything new in the replying or supplementary
affidavits.
[12]
After the hearing, Mr Thompson sought leave to make further written
submissions, to
which
there was no objection, and Mr Hoffman responded. The main point made
by Mr Thompson was that the
Berrange
case did not go as far as
allowing a later act of insolvency to rescue an initially defective
application. He
submitted that the
Berrange
case
dealt with the situation where a further act of insolvency had been
committed, not a later act of insolvency where none could
be proved
before. That is not what may, in my view, be extracted from the
Berrange
case. In
that case, the applicant relied on two acts of insolvency, one
(section 8(a)
of the
Insolvency Act) in
the founding affidavit and
the other
(section 8(d)
of the
Insolvency Act) in
the replying
affidavit. The SCA relied upon the later act of insolvency, and in
respect of the earlier
(section 8(a))
found that it was not necessary
to make a finding with regard to that because of the conclusion
reached on the
section 8(d)
act of insolvency.
[13]
Mr Hoffman, correctly in
my view, submits, with reference to the
Hammerle
Group
and
Chopdat
cases
[5]
that an
insolvency
application
is a matter which involves public interest and public policy, which
is why
it
is accepted law that an offer of compromise, even if made without
prejudice, can establish an act of insolvency in terms of
section
8(e)
of the
Insolvency Act
[6]
.
[14]
There is a further
accepted principle,
which
also deviates from usual
procedure, and resonates with the concept of an insolvency
application
being in the public interest and involving public policy,
namely that if the
applicant relies in his
application
on an act of insolvency but is unable to establish that it was
committed, but it is clear that the debtor is in fact
insolvent, the
court may grant a final sequestration order on the latter ground,
even if not relied on in the application
[7]
.
[15]
The second offer of compromise establishes an act of
insolvency
in terms
of
section 8(e)
of
the
Insolvency Act. That
is sufficient to allow the applicant to
succeed. It renders it unnecessary for me to deal with other aspects
raised in the
application
,
and also unnecessary for me to concern myself with the third offer of
compromise,
which
simply reinforces my refusal to accede to the respondent’s
request for a postponement.
[16]
The applicant has in my view succeeded in establishing that a final
sequestration order ought to be granted, and that
the rule should be
confirmed.
[17]
I therefore make the following order:
1
The estate of the respondent is placed under final sequestration.
2
The costs of the
application
shall be costs in the sequestration.
ANDRÉ
GAUTSCHI
Acting
Judge of the High Court
10
November 2025
Date
of hearing:
27 October 2025
Date
of judgment:
10 November 2025
For
the applicant:
Adv JM Hoffman
(instructed
by HBGSchindlers Attorneys)
For
the respondent:
Adv CE Thompson
(instructed
by NLHS Attorneys)
[1]
The
respondent
had a different counsel and attorney at that hearing.
[2]
Section 8(e)
reads:
“
A
debtor commits an act of insolvency –
…
(e)
if he makes or offers to make any arrangement with any of his
creditors for releasing him wholly or
partially from his debts;”
[3]
Section (c) reads:
“
8.
A debtor commits an act of insolvency –
…
(c)
if he makes or attempts to make any disposition of any of his
property
which
has or would have the effect of prejudicing his creditors or
preferring one creditor above another:”
[4]
Hassan
and Another v Berrange NO
2012
(6) SA 329
(SCA) at para 41
[5]
Absa
Bank Ltd v Hammerle Group
2015
(5) 215 (SCA);
Absa
Bank Ltd v Chopdat
2000
(2) SA 1088 (W)
[6]
Absa
Bank Ltd v Hammerle Group
supra
at paras 11-13;
Absa
Bank Ltd v Chopdat
supra
at 1092H-1094F
[7]
Steytler
& Co v Kasker & Allie
1935
CPD 102
;
Jackson
v Smith
1928
TPD 773
;
Corner
Shop (Pty) Ltd v Moodley
1950
(4) SA 55
(T);
Saber
Motors (Pty) Ltd v Morophane
1961
(1) SA 759
(W)
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