Cape Town business rescue practitioner Faizel Noor was dealt a blow in the Western Cape High Court with his failed attempt at interdicting the transfer of almost 80 000ha of land in Riversdale from his client to a new owner. A Weekend Argus report notes not only did Noor fail to interdict the transfer of a portion of Farm Melkhoute Fontein, but Judge Diane Davis commented in the judgment that the matter ‘illustrates the potential for abuse of the remedy of business rescue’.

According to court papers, Noor – together with his client, Alderbaran ( Pty) Ltd – tried to stop the transfer of the property from Alderbaran to property investment company, Trade Off 118, which had bought the land in a sale in execution in favour of the previous owner.

In court papers, Faizel Noor alleged he discovered in August last year, that Alderbaran was no longer in business rescue according to the Companies and Intellectual Properties Commission and advised Shaheed Noor to make a new application to place Alderbaran in business rescue for the second time.

Davis said the timing of the resolution to place the company under business rescue the first time was suspicious. She went on to say the resolution was not passed in good faith in that ‘there was no genuine intention to attain the objectives of the Act in regard to business rescue’.

‘I consider that both Shaheed and Faizel Noor have been guilty of an abuse of the business rescue process,’ Davies said.

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