R. T. Morrison Pty Ltd v Belle (CIV/APN 50 of 80) [1981] LSHC 58 (28 August 1981)

R. T. Morrison Pty Ltd v Belle (CIV/APN 50 of 80) [1981] LSHC 58 (28 August 1981)

The respondent, despite the formation of a company, continued to incur debts in his personal capacity and did not obtain creditor consent for any transfer of liability. He left Lesotho with the intention of evading his creditors, constituting acts of insolvency. The applicant discharged the onus for sequestration, and no valid opposition was filed. Sequestration is in the interests of creditors.

Citation
[1981] LSHC 58
Parties
Applicant: R. T. Morrison (Pty) Ltd.; Respondent: Walter M. Belle; Intervener: Mrs. Belle
Court
High Court
Jurisdiction
Lesotho
Judgment Date
28 August 1981
Case Number
CIV/APN 50 of 80
Procedural Posture
Application for Sequestration (insolvency) / Reasons for Judgment Following Confirmation of Sequestration Order
Outcome
Order of sequestration confirmed with costs (excluding costs occasioned on 21st November 1980).
Legal Topics
Sequestration of Estate, Acts of Insolvency, Corporate Veil, Creditor Protection
Source Language
English
Insolvency Civil Procedure Sequestration of Estate Acts of Insolvency Corporate Veil Creditor Protection

Case Brief

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Parties

R. T. Morrison (Pty) Ltd.

Applicant

Walter M. Belle

Respondent

Mrs. Belle

Intervener

Procedural Posture

Application for Sequestration (insolvency) / Reasons for Judgment Following Confirmation of Sequestration Order

Legal Issues

  1. 1 Whether respondent committed an act of insolvency under Section 8 of the Insolvency Act, 1957
  2. 2 Whether respondent was personally liable or trading as a company
  3. 3 Whether sequestration is in the interests of creditors

Ratio Decidendi

The respondent, despite the formation of a company, continued to incur debts in his personal capacity and did not obtain creditor consent for any transfer of liability. He left Lesotho with the intention of evading his creditors, constituting acts of insolvency. The applicant discharged the onus for sequestration, and no valid opposition was filed. Sequestration is in the interests of creditors.

Court Disposition

Order of sequestration confirmed with costs (excluding costs occasioned on 21st November 1980).

Orders

  • Respondent's estate is sequestrated.
  • Applicant awarded costs, excluding those of 21st November 1980.