Judgment for IP Members

October 2019

An interesting judgment handed down by Levenberg AJ:

The Furniture Bargaining Council brought an application for the compulsory winding up of the respondent, the application was opposed on the basis that the respondent was not commercially insolvent, despite the fact that the debt was a judgment debt. The opposition was withdrawn on 19 August and the matter set down for 2 September 2019.

On the date of hearing, the attorneys for the applicant handed the Court a CIPC document indicating that the respondent had been placed in voluntary liquidation by way of a shareholder’s resolution on 28 August 2019, the document did not indicate whether the resolution was taken in terms of Section 351 of the previous Companies Act or in terms of Section 80 of the Companies Act. The Court expressed its disapproval that no details had been captured by CIPC.

The Court concluded that the compulsory winding up application preceded the voluntary liquidation and granted the final winding up order.

This judgment was kindly sent to us by Mr S Trakman.

Judgment: Furniture Bargaining Council v AXZS Industries (Pty) Ltd.