Export Harness Supplies (Pty) Limited v Pasdec Automotive Technologies (Pty) Limited

Export Harness Supplies (Pty) Ltd (the applicant in the High Court and appellant in the full court) instituted liquidation proceedings against Pasdec Automotive Technologies (Pty) Ltd, relying on an alleged unpaid debt exceeding R6 million. The applicant initially relied on a statutory demand under s 345(1)(a) of the Companies Act 61 of 1973, but the demand was incorrectly addressed to a different company. Pasdec disputed the indebtedness and alleged that, on the true account, Export Harness Supplies was indebted to it. The High Court dismissed the liquidation application. On appeal, a majority of the full court granted a final winding-up order. Pasdec then appealed to the Supreme Court of Appeal with special leave.

The appeal was upheld with costs. The order of the full court granting final liquidation was set aside and replaced with an order dismissing the appeal with costs. The application to admit further evidence under s 22 of the Supreme Court Act was dismissed with costs.

The case reaffirms the strict evidentiary burden required for a final winding‑up order and underscores the application of the Plascon‑Evans rule in liquidation proceedings. It clarifies that insolvency under s 345(1)(c) must be specifically alleged and proved, and cannot be inferred merely from a disputed debt. The judgment also confirms the limits on admitting new evidence on appeal under s 22 of the Supreme Court Act.