ARTICLE
14 March 2025

Johannesburg High Court Launches Dedicated Insolvency Court

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Barnard Inc.

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In an important development for businesses, creditors, and legal professionals across Gauteng, the Johannesburg High Court has introduced a pilot Dedicated Insolvency Court.
South Africa Insolvency/Bankruptcy/Re-Structuring

In an important development for businesses, creditors, and legal professionals across Gauteng, the Johannesburg High Court has introduced a pilot Dedicated Insolvency Court. This specialised forum – encompassing both a Dedicated Insolvency Motion Court (IMC) and a Dedicated Insolvency Trial Court (ITC) – marks a significant step toward expediting and streamlining insolvency-related matters.

A Specialised Environment for Faster Resolutions

Under this pilot, insolvency cases will be heard separately from general motion rolls. This includes matters such as:

  • Liquidations
  • Sequestrations
  • Business rescue applications
  • Rehabilitations
  • Related interlocutory applications

By consolidating these matters before judges with expertise in insolvency law and associated commercial disputes, the Court aims to achieve quicker turnaround times, reduce administrative bottlenecks, and ensure that urgent and complex cases receive focused attention.

Key Highlights

  • Effective Date: The new procedures take effect on 14 April 2025, with the first week of dedicated hearings commencing on 12 May 2025.
  • Four-Week Cycle: Matters will generally be set down on four weeks' notice, eliminating the need for most insolvency-related applications to seek urgent relief through the general urgent motion court.
  • Pilot Phase: This is a pilot project subject to ongoing evaluation, with the aim of eventually incorporating the Dedicated Insolvency Court into the Court's consolidated practice manual.

Why This Matters for Businesses

The streamlined process offers a proactive approach to insolvency and business rescue, providing:

  1. Faster resolution of financial distress matters.
  2. Specialised judicial oversight of proceedings that often involve complex accounting, business rescue strategies, or contested claims.
  3. Predictable timelines, helping stakeholders make informed decisions on restructuring, debt recovery, or liquidation strategies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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