Judicial Management as a Debt Evasion Tactic

• No certificate of appointment issued to provisional judicial manager
• No security bond lodged
• Order not advertised
• No creditors’ meetings convened
• Process used to frustrate legitimate creditor claims
• No reasonable probability of business recovery
• Application made in bad faith to delay execution

The court ordered:

1. Discharge of provisional judicial management order granted on May 22, 2012
2. Costs awarded against first respondent on attorney-client scale
3. Warning to legal practitioners about potential personal costs orders in future similar cases

Key Implications:

• Reinforces courts’ intolerance of abuse of judicial management process
• Establishes precedent for swift discharge of improperly obtained orders
• Warns against using judicial management as delay tactic
• Emphasizes need for good faith in judicial management applications