Law firm hit by liquidation attempt

It says the latest dispute involves an attempt by a Durban businessman to launch liquidation proceedings against the 130-year-old firm. The dispute is over a R5m property deal for which three guarantees were given on the firm's letterhead, signed by the firm's conveyancing director. Responding to the liquidation threat, a spokesperson for Garlicke & Bousfield said the firm had brought an ex parte application interdicting the businessman, suggesting that the proposed liquidation proceedings were in terrorem. At the centre of the wrangle is the director of a Durban stationery manufacturing company, Naren Pattundeen, who, according to papers before the court, had paid R5m into a trust account of Garlicke & Bousfield to buy three properties for his family. Pattundeen alleged this amount was misappropriated. While Judge Isaac Madondo had granted the firm an interdict stopping the liquidation proceedings on 5 January, Pattundeen claimed it was a one-sided version. Unhappy with the outcome, Pattundeen asked the court to overturn the earlier ex parte decision, on among other things, the grounds of non-disclosure of material facts, including the fact that the directors of the firm were aware of Cowan's bridging finance transactions. Judge Pillay has yet to hand down her finding. Full Sunday Tribune report (subscription needed)