Gupta companies lose court bid to stop Bank of Baroda from closing accounts

The Gupta companies have lost the first skirmish in their legal battle to force the Bank of Baroda (BoB) to keep their bank accounts open.

The companies wanted an “interim relief ” order to ensure their bank accounts stay open pending their application for an interim interdict to the same effect, which will only be heard in the High Court in Pretoria on December 7.

They also wanted to stop the bank’s demand that four of the companies – Annex Distribution, Confident Concepts, Sahara Computers and VR Laser Services – must repay their loans by the end of September.

Their main application to set aside BoB’s decision to no longer do business with any of the Gupta companies will only be heard some time next year.

Judge Hans Fabricius handed down a lengthy written judgment, but read out only his final summary and order, dismissing the application with costs.

He said our law did not recognise a cause of action of an “interim interdict”, the Gupta companies had not pleaded a cause of action based on Section 34 of the constitution, and they had not established the common-law requirements for an interim order.

“The balance of convenience weighs heavily in favour of a party which seeks to uphold and preserve the integrity of the established financial system and the rule of law,” he said.

The high court earlier confirmed that the finance minister had no authority to interfere in the decision of South Africa’s four major banks to close the bank accounts of the Guptas’ Oakbay group of companies.