Judgment: Investec Bank Ltd v NM Singh & Another

17 July 2024

Dear Members

Attached a judgment handed down on Monday by Cowen J in the High Court, Pretoria.

The applicant applied for the sequestration of the joint estate, claiming the joint estate owed more than R470 million. The indebtedness arose from various guarantees and a private bank facility the first respondent provided to Investec for the indebtedness of BIG Business Innovations Group (Pty) Ltd and 12 Infinite Innovations Proprietary Limited.

The second respondent opposed the application, seeking dismissal or stay, and claimed his consent for the guarantees was forged. The court evaluated whether the guarantees were provided in the ordinary course of the first respondent’s business, potentially exempting the need for the second respondent’s consent in terms of Section 15(4) of the Matrimonial Property Act (“MPA”).

The court found the applicant met the prima facie requirements for sequestration. The guarantees provided by the first respondent were considered valid, and the joint estate’s insolvency was established. The second respondent’s claims of forgery and opposition did not sufficiently undermine the applicant’s case. The court granted the provisional sequestration order, considering it advantageous to the creditors and within the legal framework provided by the MPA.

Kindly sent to us by Gary Oertel of ENSAfrica.

Take care,

René Bekker
Chief Operating Officer

  Judgment: Investec Bank Ltd v NM Singh & Another. Gauteng: 0179-2023