Judgment: SA Airlink v SAA

March 2020

Judgment: Case No: 2020/01078

On 17 January 2020 Airlink approached the High Court on an urgent basis for the following relief:

1. Leave to sue SAA in terms of Section 133(1)(b) of the Companies Act;
2. A declaratory order that monies owed by SAA are not “debts owed” as contemplated in Section 154(2) of the Act or are not debts owed by SAA immediately before the beginning of the business rescue process, and are not debts subject to the provisions of Section 154(2) and
3. Payment by SAA (in business rescue) of the sum in excess of R510 million.

The Court found that an applicant seeking an order in terms of Section 133(1) must establish a prima facie case and provide reasons why the proceedings were necessary and appropriate (Arendse & Others v Van der Merwe & Another NNO 2016 (6) SA 490 (GJ)). Airlink failed to make out a case to lift the moratorium on legal proceedings against SAA in business rescue. The application was dismissed with costs.

This judgment was kindly sent to us by Adv. J Suttner SC.

  Judgment: SA Airlink v SAA