Provisional winding-up order issued to Paarl businessman over Drakenstein municipal debts

The Western Cape High court has issued provisional winding-up orders against two companies owned by Paarl businessman Gerhard Meyer. File picture.

The Western Cape High court has issued provisional winding-up orders against two companies owned by Paarl businessman Gerhard Meyer. File picture.

Published Feb 18, 2021

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Cape Town - The Western Cape High court has issued provisional winding-up orders against two companies owned by Paarl businessman Gerhard Meyer.

Meyer is the sole shareholder and director of De Oude Paarl Trading (Pty) Ltd which owns property in Paarl. Meyer’s other company, Castle Ultra 300 (Pty) Ltd, rents the property and sublets it to a commercial tenant at a rental of just over R107 000 a month, excluding VAT.

Drakenstein municipality acted against both companies over unpaid property rates, service charges and unpaid electricity accounts.

In his ruling Judge Ashley Binns-Ward said: “It is not in dispute that the municipality is a creditor of the respondent companies.

“The municipality has a claim for unpaid property rates and service charges against the property-owning respondent and a claim for unpaid electricity accounts against the tenant company.

“In my judgment the respondents (the two companies) have not shown that the companies are able to pay their debts. On the contrary, it appears from the papers on a balance of probabilities that they are indebted to the municipality in a sum considerably greater than R104 079.”

According to the court papers, De Oude Paarl Trading (Pty) said the rates were incorrectly assessed and among other reasons alleged a failure by the municipality to make the appropriate adjustments after the property in question had been the subject of a consolidation of several erven a few years ago.

Executive director for corporate services at Drakenstein municipality Seraj Johaar said: “The municipality wishes to reserve comment as the judgment for liquidation is a provisional one, pending the final hearing scheduled for April 15.”

Cape Argus

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