Case Law[2025] ZAGPJHC 1204South Africa
Weststrate v Botha (2024/144235) [2025] ZAGPJHC 1204 (19 November 2025)
Headnotes
Summary
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## Weststrate v Botha (2024/144235) [2025] ZAGPJHC 1204 (19 November 2025)
Weststrate v Botha (2024/144235) [2025] ZAGPJHC 1204 (19 November 2025)
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
Case
Number:
2024-144235
(1)
REPORTABLE:
NO
(2)
OF INTEREST TO OTHER JUDGES:
NO
(3)
REVISED:
YES
In
the matter between:
ANTHONIS
WESTSTRATE
Applicant
and
ABEL
ALBERTUS BOTHA
Respondent
(Identity
Number: 7[…])
Summary
Provisional
sequestration – attachment of disposable property of
insufficient value to satisfy a judgment debt satisfies the
requirements of
section 8(b)
of the
Insolvency Act 24 of 1936
–
defences and issues rendered res judicata not available to the
respondent in disputing the debt – benefit to creditors
to be
determined on the basis of there being
reason
to believe, not as a likelihood, but a prospect not too remote,
that as a result of investigation and inquiry assets
might be
unearthed that will benefit creditors
JUDGMENT
DANIELS
AJ
[1]
This is an application for the provisional sequestration of the
respondents’ estate.
The
uncontroversial facts
[2]
During April 2018, the parties concluded an agreement for the sale
and purchase of shares. The applicant would acquire 1% of
the issued
share capital in the entity, Talgar Ltd (Mauritius) for R3 million
and 15% of the share capital in BillBee Ltd (Mauritius)
for R1, 5
million.
[3]
The applicant paid the purchase price for the shares (to the
respondent). In terms of their agreement, the applicant was entitled
to exercise an option, that, once exercised, would oblige the
respondent to repurchase the shares. The option was exercised and
the
payment (or repayment) transpired to be problematic.
[4]
The respondent offered 5% of the shares in Synchroplex (Pty) Limited
as a part payment towards the amount owed to the applicant
for the
BillBee Limited shares. The Synchroplex shares were allocated a value
of R1 million, and the respondent made a further
payment of R250,
000.
[5]
This left the amount of R3, 250, 000 as due and payable, and this
amount remained unpaid.
[6]
The dispute as to the respondent’s non-payment was referred to
arbitration. Adv Helberg SC was appointed as the arbitrator
and on 27
July 2021 an award was published, by agreement between the applicant
and the respondent. In terms of the award, the respondent
would
inter
alia
pay to the applicant R3, 250, 000 by 31 August 2021 and
interest (calculated at the prime rate) from 30 September 2019 to 31
August
2021.
[7]
The respondent did not pay any amount towards the awarded amount and
the applicant, on 1 December 2021, launched an application
for the
award to be made an order of court in terms of
section 31
of the
Arbitration Act, 42 of 1965.
[8]
The respondent gave notice of his intention to oppose the
application, but no answering affidavit was delivered and ultimately,
on 9 November 2022, the award was made an order of court and the
respondent was ordered to pay to the applicant R3, 250, 000 together
with interest calculated at 7% from 1 September 2019 to date of
payment.
[9]
No payment has been made pursuant to the court order and the
respondent was (when the founding affidavit was deposed to) indebted
to the applicant in the amount of R4, 478, 145.14 (being the capital
amount of R3, 250, 000 together with accrued interest).
[10]
It is common cause that this debt remains unpaid and this is the debt
on which the applicant relies for
locus standi
to seek the
order for provisional sequestration.
[11]
The respondent (an advocate) appeared in person. Whilst the facts as
they have been set out above are uncontroversial, the
respondent did
not, at the hearing, meaningfully participate. The points and issues
raised in the respondents’ answering
affidavit and the heads of
argument that were delivered on his behalf were, however, not
abandoned and those points and issues
are accordingly addressed
below.
[12]
The respondent – at least with reference to the founding
affidavit and heads of argument – contends that:
12.1.
whilst the “underlying debt” (which I understand to be a
reference to the 2018 share transaction) was made up of credit
agreements as contemplated in the National Credit Act 34 of 2005
(“the NCA”), the applicant ought to have been registered
as a credit provider and the failure to have done so, impacts
on
enforceability (of the “underlying debt”);
12.2.
the applicant has not established that the respondent committed an
act
of insolvency; and
12.3.
the applicant has not established an advantage to
creditors
.
The
issues raised in opposition to the application
The
NCA and the underlying debt
[13]
In the arbitration, the respondent placed reliance on the NCA as a
defence to the claim by the applicant. This is apparent
from the
respondent’s arbitration pleadings that were attached to the
affidavits in this application. That notwithstanding,
the disputes
were settled and the award was accordingly published, by agreement
(on 27 July 2021).
[14]
Whilst the settlement presumably puts paid to any entitlement to rely
on the NCA as a defence, the NCA related issues were
in any event
also not raised in the subsequent application that resulted in the
award being made an order of court. The court order
is clear in its
terms and it is simply not open to the respondent, to again contend
for an unenforceable underlying debt.
[15]
The settlement, the arbitration award and thereafter, the court order
(individually, or collectively) renders any dispute about
the
enforceability of the underlying debt res judicata.
[16]
The
exceptio
rei iudicatae
is founded on public policy, which requires that litigation should
not be endless and on the requirement of good faith, which does
not
permit of the same thing being demanded more than once.
[1]
It is considered an abuse and vexatious to try and obtain the
re-trial on a decided issue by simulating a different cause of
action.
[17]
The same principle applies to raising new, or different defences when
proceedings (where it was open to a respondent or defendant,
to raise
such defences) have been finally determined.
[18]
Thus, whilst it is not open to the respondent to contend, again, for
non-compliance on the part of the applicant with the NCA,
the
respondent has also not challenged the court order. No appeal was
noted against the order, and no steps have been taken to
rescind, or
vary the order. The order is accordingly evidence of the debt in its
own terms and reliance on issues that might have
impacted on the
underlying debt is without merit. Fundamentally, in view of the court
order, any debate about the nature, extent
or enforceability of the
underlying debt is wholly irrelevant.
Act
of insolvency
[19]
The applicant relies on a number of acts of insolvency. For present
purposes, section 8(b)
Insolvency Act no 24 of 1936
will
suffice.
[20]
This section provides, as follows:
‘
(b) If
a court has given judgment against him and he fails, upon the demand
of the officer whose duty it is to execute
that judgment, to satisfy
it or to indicate to that officer disposable property sufficient to
satisfy it, or if it appears from
the return made by that officer
that he has not found sufficient disposable property to satisfy the
judgment…’
[21]
The applicant has provided a copy (attached to the founding
affidavit) of the Sheriff’s return, after a warrant of
execution
(following on the court order) had been issued, and having
attempted to execute on the judgment on the respondent’s
residential
address, on 22 May 2023.
[22]
In the return of service, the Sheriff says this:
‘
I
demanded the payment of the judgment debt from the EXECUTION DEBTOR.
As the EXECUTION DEBTOR was unable to pay the judgement debt
and
costs in full or in part, I judicially attached the movable property
of the EXECUTION DEBTOR as discribed
[sic]
in the attached
notice of attachment’
[23]
An inventory of attached movables is then provided, as follows:
1
x SONY TELEVISION SET 1550.00
1
x DEFY FRIDGE 1250.00
1
x 3 PIECE LOUNGE SUITE WITH COFFEE TABLE 3500.00
1
x YELLOW WOOD WALL UNIT 7500.00
1
x YELLOW WOOD DINING ROOM SUITE (8 X CHAIRS AND TABLE) 12500.00
5
x ROSE WOOD CABINETS 3500.00
1
x WOODEN TABLE 1000.00
1
x L-SHAPED DESK 850.00
6
x OFFICE CHAIRS 1200.00
1
x MAHOGANY TABLE AND 4 X CHAIRS 7000.00
1
x ANTIQUE OAK WALL UNIT 4500.00
1
x BEDROOM SUITE (HEADBOARD AND DRESSER) 2000.00
1
x THINKCENTRE COMPUTER WITH MONITOR 1350.00
1
x HP PRINTER 450.00
1
x ANTIQUE 5 PIECE COUCHES WITH 6 COFFEE TABLES 6500.00
2
x DSTV DECODERS 1000.00
3
x DVD-PLAYERS 1400.00
1
x PLAYSTATION 4 CONSOLE 1850.00
2
x ANTIQUE TABLE AND STAND 3500.00
[24]
A “Total Estimated Value” (of the attached goods) in the
amount of R62, 400.00 is recorded thereafter. The value
of the
attached goods (in this, or any other value) is nowhere near
sufficient to satisfy the debt in question, and the respondent
does
not say otherwise.
[25]
Instead, the respondent contends, in the heads of argument, that
because
some
property was attached, the return could not be
considered to be
nulla bona
, and then (it follows) that an act
of insolvency had not been committed. This contention is without
merit. The judgment debt is
(without interest added) the amount of
R3, 250, 000 and in
Mars: The Law of Insolvency
, the following
is said (with my emphasis added):
‘
If,
notwithstanding the debtor’s failure when required so to do to
satisfy the writ or indicate disposable property, the execution
officer himself finds disposable property, no act of insolvency has
been committed.
Therefore, if the debtor either satisfies
the writ or indicates disposable property to satisfy it
,
or if the execution officer himself finds disposable property, there
is no act of insolvency.’
[26]
It would make no sense if, as the respondent suggests, an attachment
of
some
disposable property (even in a negligible amount)
could thwart the operation of
section 8(b).
This section, on a proper
construction, contemplates the availability of disposable property of
a value that is sufficient to satisfy
a judgment debt.
[27]
The applicant, in any event, is not obliged to rely only on an act of
insolvency.
Section 10(b)
of the
Insolvency Act contemplates
actual,
factual insolvency as an alternative to an act of insolvency and I do
not believe that, on the papers before me, there
can be any doubt
about the respondent’s inability to pay his debts, and his
factual insolvency. The respondent’s contention
to the effect
that the proposed sequestration of his estate will not yield a
benefit to creditors supports this fact and, in any
event, the
failure to pay a debt that is due is in itself indicative of an
inability to do so. The respondent, notably, has not
presented any
evidence that could support a finding to the effect that he is able
to pay the debt and the fact that this sizable
debt has remained
unpaid, for years, similarly bears testimony to an obvious inability
to pay it.
Benefit
to creditors
[28]
In
Commissioner,
South African Revenue Services v. Hawker Aviation Partnership &
Others
[2]
it is held, as follows:
‘
[29]
The question is whether the Commissioner has established that
sequestration would render any benefit to creditors, given
that the
partnership is now defunct. The answer seems to lie in those
decisions that have held that a Court need not be satisfied
that
there will be advantage to creditors in the sense of immediate
financial benefit. The Court need be satisfied only that there
is
reason to believe - not necessarily a likelihood, but a prospect
not too remote - that as a result of investigation and
inquiry assets
might be unearthed that will benefit creditors.’
[29]
Hawker Aviation
is on point and the question of a benefit to
creditors ought to be considered against this background.
[30]
The respondent has presented no evidence of his financial affairs,
despite being a director or shareholder of companies and
practicing
as an advocate.
[31]
Notably, the respondent did receive (in 2018) a substantial amount of
money from the applicant, and whilst this has not been
repaid, it is
not known whether the respondent, instead of repaying the amount he
received, appropriated it towards the acquisition
of any asset, or,
for that matter, whether it was used to settle other obligations.
[32]
The respondent has (and at least, historically, had) interests in
companies and when the applicant sought an order to declare
an
immovable property executable, a third party intervened claiming to
have purchased the property, and paid for it in 2018. However,
the
property remained registered in the respondent’s name at the
time and this may be indicative of an arrangement that was
designed
to place assets beyond the reach of creditors.
[33]
It is obviously not possible to find, at this stage, whether this
arrangement was in fact intended to avoid creditors, and
such a
finding, at this stage, is not required. I am, however, satisfied
that there is a prospect (not too remote) of disposable
assets and/or
impeachable transactions being unearthed, that will benefit
creditors.
Conclusion
[34]
For these reasons, I am satisfied that a proper case has been made,
and that the applicant is entitled to an order for provisional
sequestration of the respondent’s estate.
Order:
I
accordingly make the following order:
1.
The estate of the respondent is placed under provisional
sequestration and the respondent (and any party with an interest)
may
show cause on 2 February 2026 at 10:00 or so soon thereafter as the
application may be heard, why:
1.1.
the respondent’s estate should not be finally
sequestrated; and
1.2.
the costs of this application be costs in the sequestration.
2.
This provisional order of sequestration is to be served as follows:
2.1.
On
the respondent at his residential address and by e-mail to
4[…]
;
2.2.
On any employees of the respondent and trade unions
representing the employees of the respondent, if any, at the
respondent’s
residential address;
2.3.
On the South African Revenue Service; and
2.4.
By publication in the Government Gazette and in a newspaper
circulating in the area of the respondent’s residential
address.
J.
DANIELS
Acting
Judge of the High Court
GAUTENG
DIVISION, JOHANNESBURG
This
judgment was prepared by Acting Judge Daniels. It is handed down
electronically by circulation to the parties or their legal
representatives by email, by uploading to the electronic file of this
matter on Caselines, and by publication of the judgment to
the South
African Legal Information Institute. The date for hand-down is deemed
to be 17 November 2025.
HEARD
ON: 12 November 2025
DELIVERED
ON: 19 November 2025
REASONS:
19 November 2025
For
the Applicant:
Adv. R Stevenson
Instructed
by:
Truter Jones Inc.
For
the respondent:
Appearance in person
[1]
African
Farms & Townships Ltd v. Cape Town Municipality
1963 (2) SA 555
(A) at 564
[2]
[2006] ZASCA 51
;
2006
(4) SA 292
(SCA) at
[[29]
and
Lynn
&
Main
Inc
v.
Naidoo
and
Another
2006
(1) SA 59
(N) at [31] and further,
Meskin
& Co v. Friedman
1948
(2) SA 555
(W)
at
558,
London
Estates (Pty) Ltd v. Nair
1957
(3) SA 591
(N)
at
592F, and
Lotzof
v. Raubenheimer
1959
(1) SA 90 (O)
.
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