Pick n Pay has been told by the Supreme Court of Appeal to return R21.6 million. This money came from the sale of a franchise store in Midrand that later went out of business.
The court said Pick n Pay had no right to take the money on its own after the store’s owner was liquidated. The judges said the money must go back to the team handling the liquidation.
What Happened with the Midrand Store
The store in San Ridge Square was owned by a company called Lashka 167. In 2017, Lashka sold the store to Enthrall Trading for R25 million. The money was kept safely in the trust account of White & Case Attorneys.
Lashka was supposed to tell the lawyers how to pay its debts. It gave payment instructions for its bank loan from FNB, but not for what it owed Pick n Pay, which was R13.5 million.
In 2018, Lashka went into final liquidation. This means the company was officially closed and its money had to be shared fairly among all people it owed.
Visit our Latest News section now for more updates.
Pick n Pay Took the Money Anyway
In 2019, more than a year after the store closed, Pick n Pay gave its own payment instructions and received R21.6 million from the trust account. The company believed it still had the right to do this based on the old sale agreement.
But the liquidators-the people in charge of dividing Lashka’s money-said this was wrong. They argued that once a company is liquidated, no one can take money without going through the correct legal steps.
Court Says Pick n Pay Was Wrong
In 2022, the High Court agreed with the liquidators. It said Pick n Pay should not have taken the money directly. It needed to follow the proper liquidation process like all other creditors.
Pick n Pay tried to appeal the decision. But on 2 July 2025, the Supreme Court of Appeal said the same thing: Pick n Pay’s actions were not allowed.
The court said once Lashka was shut down, the sale agreement was no longer valid. Pick n Pay could not skip the legal process and help itself to the money.
Why This Matters
This ruling shows that when a business is liquidated, all debts must be paid through the official process. No one is allowed to jump the line, even if they are a big company.
The R21.6 million must now go back to the liquidators, who will divide it fairly among everyone that Lashka owed. The court also made Pick n Pay pay for the legal costs.
Timeline of Events
| Date | What Happened |
|---|---|
| 2017 | Store sold for R25 million |
| Feb 2018 | Lashka went into liquidation |
| June 2019 | Pick n Pay took R21.6 million |
| 2022 | Liquidators took the case to court |
| 2 July 2025 | Court ruled Pick n Pay must pay it back |
Related News:-
Hi, I’m Amandeep Singh, a content writer at Ramnath Intercollage. I share updates on jobs, internships, and scholarships across South Africa using official and trusted sources. My aim is to make every post easy to read and helpful for anyone looking to apply.
