Dinath and Another v Iginla and Another (079671/2023) [2024] ZAGPPHC 1225 (22 November 2024)

Dinath and Another v Iginla and Another (079671/2023) [2024] ZAGPPHC 1225 (22 November 2024)

The court found that the payments made by Joshua Iginla Ministries NPC to purchase a farm in the First Respondent's name constituted a disposition without value under section 26 of the Insolvency Act. The funds originated from SNS, which operated an unlawful Ponzi scheme and was liquidated, making the payments to JIM NPC impeachable and due for repayment to SNS's liquidators. The Respondents failed to provide any evidence that JIM NPC was solvent at the time of the disposition or that value was received in exchange for the payments. The constitutional argument regarding freedom of religion was not properly raised in compliance with Rule 16A and was therefore disregarded. The bank...

Citation
[2024] ZAGPPHC 1225
Parties
Applicant: Imran Dinath N.O.; Applicant: Nomvuyo Yvonne Seriti N.O.; Respondent: Joshua Lasisi Iginla; Respondent: Zimasa Stella Iginla
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 November 2024
Case Number
079671/2023
Procedural Posture
Urgent Application / Opposed Application for Setting Aside Disposition Without Value Under Insolvency Act
Outcome
Application granted. Payments totalling R3,986,869.25 set aside as disposition without value under section 26 of the Insolvency Act. Respondents ordered to repay the amount with interest and costs.
Judges
Nharmuravate
Legal Topics
Insolvency Act Section 26, Disposition Without Value, Liquidation Proceedings, Collusive Transactions, Church Donations, Creditor Protection
Civil Procedure Commercial and Corporate Insolvency Act Section 26 Disposition Without Value Liquidation Proceedings Collusive Transactions Church Donations Creditor Protection

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Parties

Imran Dinath N.O.

Applicant

Nomvuyo Yvonne Seriti N.O.

Applicant

Joshua Lasisi Iginla

Respondent

Zimasa Stella Iginla

Respondent

Procedural Posture

Urgent Application / Opposed Application for Setting Aside Disposition Without Value Under Insolvency Act

Legal Issues

  1. 1 Whether the payments made by Joshua Iginla Ministries NPC to purchase a farm in the First Respondent's name constituted a disposition without value under section 26 of the Insolvency Act.
  2. 2 Whether the Applicants, as joint liquidators, have locus standi to bring the application.
  3. 3 Whether the bank statements relied upon by the Applicants are privileged and inadmissible.

Ratio Decidendi

The court found that the payments made by Joshua Iginla Ministries NPC to purchase a farm in the First Respondent's name constituted a disposition without value under section 26 of the Insolvency Act. The funds originated from SNS, which operated an unlawful Ponzi scheme and was liquidated, making the payments to JIM NPC impeachable and due for repayment to SNS's liquidators. The Respondents failed to provide any evidence that JIM NPC was solvent at the time of the disposition or that value was received in exchange for the payments. The constitutional argument regarding freedom of religion was not properly raised in compliance with Rule 16A and was therefore disregarded. The bank...

Court Disposition

Application granted. Payments totalling R3,986,869.25 set aside as disposition without value under section 26 of the Insolvency Act. Respondents ordered to repay the amount with interest and costs.

Orders

  • The payments made by Joshua Iginla Ministries NPC for the benefit of the First Respondent amounting to R3,986,869.25 in purchasing the farm situated at Nooitgedacht no 534 portion 85 are set aside in terms of section 26(1) of the Insolvency Act of 1936.
  • The First Respondent, alternatively the Respondents, are ordered to pay the sum of R3,986,869.25 to the Applicants with interest at 7.25% per annum until date of final payment.