Supreme Court rejects Gupta firm’s offer to dismiss Tegeta’s rescue practitioners

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The Supreme Court of Appeal dismissed a request by a Gupta-owned company, Oakbay, to have the Tegeta company rescue practitioners removed from office. Photo: file

The Supreme Court of Appeal dismissed an application by Oakbay, owned by Gupta, to appeal a decision rejecting its proposal to dismiss Tegeta’s rescue practitioners.

The company argued in High Court in 2019 that rescue practitioners Kurt Knoop and Johan Kloppers were conflicted and biased over the issue. In addition, they

The argument in dispute arose out of BRP’s handling of a business-to-business loan by Tegeta to its wholly-owned subsidiary Optimum Coal Mines. However, the court concluded that the intercompany loans did not create a conflict of interest.

Oakbay had argued that rescue practitioners should not have been appointed to handle the affairs of two or more companies in the same group.

In addition, they accused them of being on a “Gupta slander train”.

The court dismissed the claim after finding the argument lacked substance, prompting the company to appeal.

In dismissing Oakbay’s application for leave to appeal, the Supreme Court said the case had “no reasonable possibility that an appeal will succeed.”

The Supreme Court justices noted that when it comes to a complex group of companies controlled by the same people, there is little reason for the BRPs to interfere with arguments within the group regarding inter-company debt.

In February 2018, Tegeta and others linked to Gupta called for the rescue of their business after being unable to transact when their banking services were blocked.



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