The Johannesburg High Court will be piloting a dedicated insolvency court starting on 14 April 2025, when the second court term begins.
The long-anticipated insolvency court will hear all unopposed, opposed and urgent applications relating to liquidation, business rescue, sequestration, rehabilitation, perfection applications, applications for extension of liquidators’ powers, as well as reviews of decisions of the Master of the High Court and officers presiding over insolvency enquiries.
Any matters of this nature already enrolled for hearing on the ordinary unopposed and opposed motion roll will automatically be transferred to the dedicated insolvency court roll in that week.
The Insolvency Motion Court has been designed to operate on a four-week cycle between application for a hearing date and hearing of a matter, with the intention of minimising the need for parties to approach court on an urgent basis. The first sitting of the Insolvency Motion Court will be in the week commencing 12 May 2025.
The urgent motion court will no longer entertain insolvency-related urgent applications (except during recess), ensuring that these cases are also heard in the dedicated insolvency court.
Parties involved in insolvency and related trial matters, such as the recovery of dispositions, reckless and negligent trading claims (the so-called section 424 claims) and the like, can approach the Deputy Judge President once the matter is ripe for trial, and request the allocation of a trial date.
Although the notice issued by the Deputy Judge President does not state this, it is anticipated that the dedicated insolvency court will be presided over by judges with specialised expertise in this field of law.
The establishment of a dedicated insolvency court addresses the commercial imperative of expediting the hearing of insolvency and related matters. This is a welcome development for insolvency and restructuring practitioners and clients alike.
The notice and directive issued by the Deputy Judge President of the High Court of South Africa, Gauteng Division, Johannesburg can be accessed here.
