Judgment: A Limbouris & Others v J Du Toit & Others

20 August 2024

Dear Member

Attached a judgment of Kantor AJ, handed down in the Western Cape High Court on 16 August 2024.

The Court – notwithstanding section 152 (4) of the 2008 Companies Act that all creditors are bound by an adopted plan – held that there was a prima facie right to set such adopted plan aside in circumstances of alleged fraud, in particular, alleged misrepresentations by the BRP in apparent collusion with the former controller of the company.

The matter was adjudicated upon in the context of an interim interdict applied for by creditors pending the main action they intended bringing on grounds of such alleged fraud – and the BRP was duly interdicted from filing a notice of substantial implementation.

Novel legal issues emerge from this judgment which was kindly sent to us by Adv. Claire Morgan of the Cape Bar.

Take care,

René Bekker
Chief Operating Officer

  Judgment: A Limbouris & Others v J Du Toit & Others. Case No:WC 23112/2023