South Africa Case Law

Juggernaut Trucking CC v Van Niekerk (2022/024156)

Juggernaut Trucking CC v Van Niekerk (2022/024156) [2023] ZAGPPHC 1767 (22 September 2023)

Court

North Gauteng High Court, Pretoria

Case number

2022/024156

Judge

de Vos

The applicant has established a reasonable prospect that investigation into the respondent's affairs, including his directorships and trusteeships, may uncover assets for the benefit of creditors. The respondent has not made a full disclosure of his interests in the trusts and companies, and the court is entitled to draw adverse inferences from this lack of transparency. The threshold for benefit to creditors is low, and the applicant need not prove the existence of assets, only that there is a prospect that assets may be revealed through inquiry. The facts and case law cited support the gran…

Source excerpt

• Provisional Sequestration
• Benefit To Creditors
• Insolvency Act
• Suretyship
• Trusts And Juristic Entities

Corruseal Corrugated KZN (Pty) Ltd and Another v Zakharov and Another (2108/2021)

Corruseal Corrugated KZN (Pty) Ltd and Another v Zakharov and Another (2108/2021) [2023] ZAWCHC 48 (6 March 2023)

Court

Western Cape High Court, Cape Town

Case number

2108/2021

Judge

P.A.L. Gamble

The court found that the payment made by Evergreen LLC after the provisional sequestration order was a donation to the respondent, which, in terms of section 20 of the Insolvency Act, vests in the provisional trustee and not in the respondent. Therefore, the applicants' claims have not been settled and they retain locus standi to seek a final sequestration order. The respondent committed acts of insolvency as evidenced by the nulla bona returns and failed to demonstrate that his assets exceed his liabilities. The court inferred actual insolvency from the respondent's inability to pay debts, a…

Source excerpt

• Sequestration
• Acts Of Insolvency
• Locus Standi
• Benefit To Creditors
• Suretyship Liability

Firstrand Bank Limited v Basson N.O. and Others (16052/2020)

Firstrand Bank Limited v Basson N.O. and Others (16052/2020) [2023] ZAGPJHC 132 (10 February 2023)

Court

South Gauteng High Court, Johannesburg

Case number

16052/2020

Judge

Redman

The applicant failed to establish factual insolvency, as there was a genuine dispute regarding the value of the Trust's assets, particularly the Mullers-Rust property. The applicant did not prove that the Trust committed acts of insolvency under section 8(b) or 8(g) of the Insolvency Act, as the sheriff's returns did not meet the required standards and the statements relied upon did not amount to admissions of inability to pay debts. Furthermore, the applicant did not demonstrate that sequestration would benefit creditors, given its position as the major creditor and the existence of first mo…

Source excerpt

• Final Sequestration
• Acts Of Insolvency
• Benefit To Creditors
• Valuation Of Assets
• Mortgage Bonds

Absa bank Limited v Lochneberg (A657/2014)

Absa bank Limited v Lochneberg (A657/2014) [2016] ZAGPPHC 866 (23 September 2016)

Court

North Gauteng High Court, Pretoria

Case number

A657/2014

Judges

A.A. Louw, D.S.S. Moshidi, V.V. Tlhapi

The High Court removed an appeal from the roll after the insolvent estate assets had been sold and transferred, making the dispute academic.

• Voluntary Surrender
• Sequestration
• Benefit To Creditors
• Sale Of Insolvent Assets
• Academic-appeal
• Insolvency

Ex parte:Bekker and Another (24420/12)

Ex parte:Bekker and Another (24420/12) [2012] ZAGPPHC 171 (11 June 2012)

Court

North Gauteng High Court, Pretoria

Case number

24420/12

Judge

Tuchten

A High Court dismissed an ex parte application to surrender a married couple’s estate, finding their disclosure incomplete and the valuation evidence unreliable.

• Insolvency Act Section 3
• Surrender Of Estate
• Duty Of Full Disclosure
• Valuation Of Assets
• Benefit To Creditors
• Insolvency

Kulenkampff and Associates v Vosloo (18194/2008)

Kulenkampff and Associates v Vosloo (18194/2008) [2008] ZAWCHC 301 (20 November 2008)

Court

Western Cape High Court, Cape Town

Case number

18194/2008

Judge

Gauntlett A J

The High Court granted a provisional sequestration order, rejecting objections based on urgency, security, alleged abuse, and lack of benefit to creditors.

• Provisional Sequestration
• Insolvency Act Section 8
• Benefit To Creditors
• Abuse Of Process
• Provisional-sequestration
• Insolvency-act-section-8

Business Partners Limited v Pieterse and Another (11183/2008)

Business Partners Limited v Pieterse and Another (11183/2008) [2008] ZAWCHC 89 (17 November 2008)

Court

Western Cape High Court, Cape Town

Case number

11183/2008

Judge

Traverso

The court dismissed an application for final sequestration, finding no real benefit to creditors and only speculative prospects of recovery.

• Final Sequestration
• Benefit To Creditors
• Secured Creditor Priority
• Impeachable Transaction
• Final-sequestration
• Benefit-to-creditors

Bethlehem Technologies London Limited v Deysel (33815/05)

Bethlehem Technologies London Limited v Deysel (33815/05) [2006] ZAGPHC 127 (2 October 2006)

Court

High Courts - Gauteng

Case number

33815/05

Judge

Pelser AJ

The High Court confirmed a final sequestration order after finding an act of insolvency, factual insolvency, and reason to believe sequestration would benefit creditors.

• Insolvency Act Section 8g
• Insolvency Act Section 12
• Act Of Insolvency
• Benefit To Creditors
• Settlement Agreement Liability
• Insolvency-act

Kolok (Pty) Ltd v Ahmed (05/20142)

Kolok (Pty) Ltd v Ahmed (05/20142) [2006] ZAGPHC 4 (24 January 2006)

Court

High Courts - Gauteng

Case number

05/20142

Judge

I W Schwartzman

The High Court refused to confirm a provisional sequestration order, finding no proved act of insolvency, no shown benefit to creditors, and defective ex parte procedure.

• Sequestration
• Act Of Insolvency
• Substituted Service
• Creditor Claim
• Benefit To Creditors
• Act-of-insolvency