Stewart NO and Another v Bekker and Others (2349/11, 3006/11, 3008/11)
Stewart NO and Another v Bekker and Others (2349/11, 3006/11, 3008/11) [2012] ZAFSHC 230 (4 December 2012)
The court held that the payments received by the defendants from the illegal pyramid scheme operated by the Minnes constituted dispositions without value under section 26 of the Insolvency Act. Applying the principles from Fourie v Edeling, the trustees were entitled to recover only the excess amounts received by the defendants over their original investments, not the invested capital itself. The plaintiffs' initial claims for the full amounts were incorrect and contributed to the protracted litigation. Both parties were found to have contributed to the drawn-out proceedings by failing to mak…
Source excerpt
- Insolvency Act Section 26
- Illegal Pyramid Scheme
- Disposition Without Value
- Banks Act Section 11
- Harmful Business Practice
- Expert Witness Costs