SA Airlink (Pty) Ltd v South African Airways (SOC) Limited (in Business Rescue) and Others

SA Airlink and South African Airways (SAA) operated in a long-standing alliance governed by licence and commercial agreements. Under these agreements, Airlink’s tickets could be sold through SAA’s booking systems, with SAA collecting revenue and periodically remitting it to Airlink after deductions. Shortly before SAA was placed under business rescue on 5 December 2019, SAA received substantial revenue from Airlink ticket sales for November and early December 2019. After business rescue commenced, SAA did not remit these amounts. Airlink contended that the revenue was its own money held by SAA as agent, or alternatively that the debt arose post‑commencement of business rescue. Airlink brought urgent proceedings in the High Court to recover the funds without obtaining consent from the business rescue practitioners or leave of court.

The appeal was dismissed with costs, including the costs of two counsel.

The case affirms the breadth and importance of the statutory moratorium in s 133 of the Companies Act and clarifies that it applies to all legal proceedings against a company in business rescue unless leave is granted. It also provides authoritative guidance on distinguishing between agency relationships and debtor‑creditor relationships in commercial arrangements, and on when a debt is considered to be ‘owed’ for purposes of business rescue.