Judgment: Mhlonipheni v Mezepoli Melrose Arch, and Others
10 June 2020
The applicants in each of the applications sought orders placing the first respondent in each application under supervision and commencing business rescue proceedings in terms of Section 131 (4) (a).
None of the respondent companies had traded since the national lockdown on 27 March 2020 and they raised the defence of “force majeure”.
The Court found that it was reasonably possible that the respondent companies could be returned to solvency alternatively that a better outcome for shareholders, creditors and employees would result than through liquidation. The test set out in Section 128 (1)(b)(iii) was satisfied and the applications were granted.
The judgment was kindly sent to us by Dr Eric Levenstein of Werksmans