WhatsApp Evidence in Business Disputes: A Landmark Liquidation Case in South Africa

WhatsApp Evidence in Business Disputes: A Landmark Liquidation Case in South Africa

In South Africa’s fast-paced business world, communication has shifted from boardrooms to smartphones. WhatsApp messages have become a powerful tool in resolving business disputes and, as a recent Western Cape High Court case shows, they can make or break a company when legal battles reach the courtroom.

At Mayet & Associates, we understand how easily informal chats can become decisive legal evidence. This case illustrates why businesses must take digital communication seriously, especially when debts and contracts are at stake.

The Case: Boreholes, Bills, and WhatsApp Promises

Gerritsen Drilling, a specialist borehole company, was contracted by Blydskap Holdings to drill three boreholes on a farm near Velddrif. Two were successful, but complications in the third brought work to a halt.

Invoices were issued, payments were delayed, and by December 2024, Blydskap owed more than R500,000. When promises to pay failed to materialise, Gerritsen Drilling applied to liquidate Blydskap.

The Game-Changer: WhatsApp as Court Evidence

The deciding factor was not complex contracts or technical reports, it was WhatsApp.

  • The company director repeatedly promised payments via WhatsApp (“we will pay this month”).
  • Delays were explained in chats (“the accountant will process today or tomorrow”).
  • Even excuses about waiting for client payments were captured in real time.

These casual messages were admitted as evidence and carried significant weight. The court found they provided a clear, reliable record of the company’s acknowledgment of its debt.

Why Blydskap’s Defences Collapsed

Blydskap argued that:

  • The invoices were “pro forma” and not payable.
  • Payment could be withheld until technical borehole reports were delivered.
  • It had a counterclaim of more than R1 million in damages.

The court dismissed these arguments. Partial payments proved the invoices were binding. The WhatsApp trail showed no conditions about reports. The counterclaim was only raised after the liquidation process began, weakening its credibility.

What the Court Decided

The judge ruled that Blydskap was commercially insolvent even if its assets exceeded liabilities on paper, it simply could not pay debts as they fell due. The company was placed under provisional liquidation, with control passing to the Master of the High Court.

This confirms a key principle in South African insolvency law: solvency is not just about balance sheets, but about the ability to pay creditors on time.

Lessons for Businesses in South Africa

This case carries important lessons for business owners, directors, and entrepreneurs:

  1. WhatsApp is legally binding evidence. Informal promises can confirm liability.
  2. Invoices even “pro forma” ones matter. Courts will look at substance, not labels.
  3. Counterclaims must be genuine. Raising them late may appear as a stalling tactic.
  4. Cash flow is king. Insolvency is about liquidity, not just asset value.

Protect Your Business with the Right Legal Advice

At Mayet & Associates, we specialise in:

  • Business dispute resolution and debt recovery.
  • Liquidation and insolvency law in South Africa and Lesotho.
  • Digital evidence in court, including WhatsApp, emails, and electronic records.
  • Corporate and commercial legal services to safeguard your contracts and cash flow.

📌 Takeaway: Your WhatsApp messages could decide the future of your business. If you’re facing unpaid debts, threatened with liquidation, or concerned about how digital communication may affect your case, it is critical to get expert legal advice.

Contact Mayet & Associates today for professional assistance in business disputes, liquidation matters, and corporate law.