Group companies and the avoiding of subpoenas in terms of sections 417 and 418 of Act 61 of 1973

By Keith Braatvedt

An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth. The first and second applicants under case 3521/2012 were ABSA Bank and Maria Ramos respectively.

The second respondent was JHJ van Rensburg NO in his official capacity as business rescue practitioner of NJO Du Plessis Building Construction Contractors CC. NJO and Van Rensburg had been the applicants for an order convening an insolvency enquiry, in terms of sections 417 and 418 of the act, into the affairs of Milkwood Construction (in liquidation). The first respondent was Paul Erasmus Jooste NO who was appointed commissioner of the enquiry in terms of the provisions of section 418 of the act.

ABSA and Ramos sought an order interdicting and restraining the commissioner from authorising further summonses against the employees of ABSA in the enquiry…

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