Judgment: Tamela Mezzanine Debt Fund Partnership v KT Wash Detergents and Others
13 January 2026
Dear Member
The attached judgment by Pullinger AJ handed down on 12 December 2025 clarifies the rights of creditors when a business rescue plan is rejected.
Section 153 of the Companies Act empowers the Court to set aside a creditor's vote if the rejection is deemed "inappropriate".
The Court performed a "single enquiry and value judgment" that balanced the reasons for rejection with the likely benefits of liquidation and the statutory purpose of business rescue.
The Court further clarified that the failure of a Section 153 application does not automatically end business rescue proceedings.
Kindly provided to us by Nastascha Harduth of Cliffe Dekker Hofmeyr Inc.
Take care,
René Bekker
Chief Operating Officer