Judgment: MM Tayob NO and Others v TH Samons NO and Others

03 September 2025

Dear Member

This matter was brought in the urgent court in the High Court of South Africa (Gauteng North Division) and revolves around a dispute between two business rescue practitioners, the applicant and the respondent, regarding the appointment of the applicant as the business rescue practitioner for three state-owned companies: Northwest Transport Investments (NTI), Northwest Star (NWS) and Atteridgeville Bus Services (ABS).

The urgency was to address a humanitarian crisis due to unpaid salaries of employees. The Court accepted that the matter was urgent, and the parties agreed that salaries would be paid.

The Applicant claimed that he had the necessary standing to bring the application as the appointed business rescue practitioner. The Court found that his appointment was invalid as it did not comply with the Companies Act.

The Court criticised both applicant and respondent for allowing their conflict to subvert the business rescue process allowing the most vulnerable and dependent on the process, to be placed in harm's way.

The judgment highlights procedural and legal requirements for appointing business rescue practitioners and underscores the importance of adhering to statutory provisions.

Kindly sent to us by Gareth Cremen of Cox Yeats Inc.

Take care,

René Bekker
Chief Operating Officer

  Judgment: MM Tayob NO and Others v TH Samons NO and Others. Case No:130746-2025