[miningmx.com] — WESCOAL Holdings (Wescoal) has succeeded in its urgent application to set aside attempts by Sutha Civils and BSM Mining to liquidate subsidiary Wescoal Mining.
Wescoal brought the application in the North Gauteng High Court on November 3 on the basis that the winding-up application by BSM Mining was part of a strategy intended to embarrass Wescoal and extort payment of a debt.
Wescoal added it had evidence BSM was acting in concert with Sutha and the two had embarked on a programme since March to harass Wescoal.
In a statement published on the JSE Stock Exchange News Service on Thursday, Wescoal said acting Judge Hiemstra had interdicted Sutha and BSM from proceeding with the two winding-up applications.
According to the Wescoal statement Judge Hiemstra said in his judgement that: “The respondents have in concert embarked on a relentless campaign, not only by means of frivolous and unfounded litigation applications but also through the financial press and criminal charges, to coerce the applicants (Wescoal and Wescoal Mining) to pay the debts that are not due by them.
“This is a gross abuse of the processes of the Court and the provisions of the Companies At. The abuse is so outrageous that it calls for punitive cost orders.’
