South Africa Case Law

Bell v Bruwer N.O. and Others (971/2016)

Bell v Bruwer N.O. and Others (971/2016) [2016] ZAFSHC 212 (15 December 2016)

Court

Free State High Court, Bloemfontein

Case number

971/2016

Judge

J.P. Daffue

The court found that the applicant was a concurrent creditor with locus standi and that the trust was factually and commercially insolvent. The trustees themselves supported sequestration. The evidence showed that the trust had abandoned its business, the farm was deserted, and no financial assistance had materialized despite repeated promises. There was a reasonable prospect that sequestration would be to the advantage of creditors, including the possibility of dividends to concurrent creditors from insurance proceeds and sale of assets. The court rejected IDC's speculative turnaround plan a…

Source excerpt

• Final Sequestration
• Advantage To Creditors
• Secured Creditor Priority
• Costs Orders
• Insolvency Act
• Concurrent Creditors

ABSA Bank Ltd v Fraser and Another (386/2005)

ABSA Bank Ltd v Fraser and Another (386/2005) [2005] ZASCA 107; [2006] 2 All SA 1 (SCA) (24 November 2005)

Court

Supreme Court of Appeal

Case number

386/2005

Judges

Mpati, Cameron, Nugent, Mlambo, Nkabinde

The Supreme Court of Appeal held that section 33(1) of the Prevention of Organised Crime Act does not exclude the interests of concurrent creditors in restrained property. The Act does not confer a preference for the defendant's legal expenses or the State's claim over proven concurrent creditor claims. The High Court retains a wide discretion to entertain applications by persons with claims in restrained property and may direct payments to such creditors before satisfaction of a confiscation order. The court below erred in finding that it was precluded by section 33(1) from taking account of…

Source excerpt

• Prevention Of Organised Crime Act
• Restraint Order
• Confiscation Order
• Concurrent Creditors
• Legal Expenses
• Creditor Intervention

Ilic v Parginos (55/83)

Ilic v Parginos (55/83) [1984] ZASCA 164; [1985] 1 All SA 467 (A) (30 November 1984)

Court

Supreme Court of Appeal

Case number

55/83

Judges

Wessels, Jansen, Cillié, Smalberger, Vivier

The court held that a composition under the Insolvency Act binds all concurrent creditors, even those who did not prove or vote, and reduced the award accordingly.

• Insolvency Act Composition
• Concurrent Creditors
• Statutory Novation
• Contractual Interpretation
• Insolvency-act-composition
• Concurrent-creditors