Johannesburg - The ANC Youth League will fight an application to have it provisionally sequestrated over the R4 million debt it owes Gallagher Estate Convention Centre, a lawyer said on Monday.
“The ANCYL was given two weeks to file an opposing affidavit by the High Court in Johannesburg after it indicated over the weekend that it would oppose our application,” said Phillip Patlansky, for Gallagher.
Atterbell Investments, trading as Gallagher Estate, said the ANCYL owed it more than R4 million for four events it held at the centre in June 2011. In April this year it asked the court to place the ANCYL under final liquidation or provisionally sequestrate it.
According to an affidavit by the convention centre's chief executive Adolf Venter, a default judgment was handed down on the matter in September 2011.
Patlansky said the ANCYL was ordered to file its opposing papers within 15 days, after which Gallagher Estate would have 10 days to file answering affidavits.
“The case was postponed without a date. Legal costs have been reserved,” he said.
In March, another liquidation case against the league was settled out of court. High Court Judge Phillip Boruchowitz discharged a provisional liquidation order made in November last year.
The original liquidation order against the league was applied for by Bloemfontein events company Z2 Presentations, which had originally been tasked with running the ANCYL's 2008 national conference in the Free State. The conference left the company R15m out of pocket after the league did not pay its bill.
A hotel, trading as Palanquin Hospitality Management and based in Bloemfontein, claimed R1.5m from the ANCYL, lawyer Steven van Rensburg said during a new court application in January.
Palanquin, which is in liquidation, provided accommodation for the conference delegates.
Sapa