Kransfontein Beleggings (Pty) Ltd v Corlink Twenty Five (Pty) Ltd and Others

The applicant, Kransfontein Beleggings (Pty) Ltd, was a secured creditor of Corlink Twenty Five (Pty) Ltd by virtue of a registered general and special notarial bond over movable property. Corlink experienced financial distress and sold three farms and certain movable assets to the Gert Trust with the consent of mortgage bondholders Absa Bank Ltd and GWK. Corlink was subsequently placed in business rescue, and a business rescue plan was adopted which did not recognise the applicant as a secured creditor. The applicant opposed the plan and later brought an application in the High Court seeking to set aside or amend the plan to recognise its secured claim and to preserve a ringfenced amount from the sale proceeds. The High Court dismissed the application due to the applicant’s failure to join all affected creditors. The applicant sought leave to appeal to the Supreme Court of Appeal.

The application for leave to appeal was dismissed with costs.

The case confirms the strict application of the doctrine of non-joinder in business rescue litigation and underscores that all creditors whose rights may be affected must be joined. It also clarifies that courts lack authority to partially amend or tailor an adopted business rescue plan, reinforcing the primacy of creditor approval under the Companies Act.