The Western Cape High Court has granted a provisional sequestration order against a Cape Town businessman over a R6 million debt.
Image: Super Group
The Western Cape High Court has granted a provisional sequestration order against a Cape Town businessman after finding that he failed to satisfy a nearly R6 million judgment debt owed to Fleet Africa, a fleet management and leasing unit of JSE-listed Super Group.
The court also raised concerns about transactions involving assets transferred to a company linked to the businessman’s son, saying they warranted further investigation by a trustee.
In a judgment handed down this month, Acting Judge Van Zyl ruled in favour of Fleet Africa following years of litigation linked to a vehicle lease agreement.
Fleet Africa forms part of Super Group’s mobility operations and operates across South Africa, Kenya and Lesotho, providing fleet leasing, maintenance and vehicle management services to both public and private sector clients.
According to Super Group’s 2025 annual report, Fleet Africa generated revenue of R1.24 billion in the year to June 2025, up 9.7% year-on-year, while operating profit rose 11.4% to R286.1 million. The business improved its operating margin to 23.1% from 22.7% previously.
The dispute before the court dates back to 2016, when MK Exotics leased vehicles from Fleet Africa and businessman Mahmood Khatib signed surety for the agreement.
After MK Exotics defaulted, Fleet Africa pursued claims of almost R6 million. The matter eventually went to arbitration after the defendants argued the dispute should be handled through that process.
The arbitrator awarded Fleet Africa R5.99 million in November 2022, with the award later made an order of court in January 2024. The judge noted that “MK and the first respondent did not play any meaningful part in the arbitration despite being invited to do so”.
A writ of execution was issued against Khatib in April 2024 and movable assets, including household items and four vehicles, were attached.
However, Khatib’s son later claimed ownership of one vehicle and said the other three belonged to a company called South African Destination Management Company (SADMC), where he was sole director.
The son also claimed SADMC had bought Khatib’s home and its contents in May 2024, with transfer taking place in July that year.
According to the judgment, Khatib later informed the sheriff that he owned no movable or immovable assets and could not satisfy the debt. The court found that this amounted to an act of insolvency under the Insolvency Act.
Van Zyl said there was reason to believe sequestration could benefit creditors because further investigation might uncover assets or transactions that warranted scrutiny.
The judgment noted that SADMC was established after summons had already been issued against Khatib and questioned how the company operated, given that the son was a university student at the time.
The court said “one requires little imagination to realise that all of this may well be a sham, and that SADMC was established so that the first respondent could avoid owning assets in his own name”. The judge said the matter warranted investigation by a trustee under insolvency proceedings.
A significant part of the case also centred on whether Fleet Africa, cited as “a division” of Supergroup Africa, had proper legal standing to bring the application.
The court rejected the challenge, finding that the description in court papers was acceptable and that there was no confusion about the identity of the creditor pursuing the claim.
The provisional sequestration order will return to court in August, when interested parties will have an opportunity to argue why a final sequestration order should not be granted.
IOL BUSINESS