South Africa Case Law

Cowan v Hathorn NO and Others (176/2013)

Cowan v Hathorn NO and Others (176/2013) [2013] ZASCA 159 (25 November 2013)

Court

Supreme Court of Appeal

Case number

176/2013

Judges

Navsa, Brand, Malan, Pillay, Swain

The Supreme Court of Appeal held that although the indemnity required by section 32(1)(b) of the Insolvency Act was not formally furnished prior to the institution of proceedings, the statutory object was satisfied. The indemnity was offered before the summons was issued, and negotiations delayed its formalization. The indemnity ultimately covered all costs, ensuring the liquidators were protected against adverse cost orders. There was no evidence of substantial injustice to Cowan, as the liquidators were never at risk and the proceedings were not a nullity. The interruption of prescription d…

Source excerpt

• Insolvency Act Section 32
• Indemnity In Liquidation
• Irregular Proceedings
• Prescription Interruption

Hathorn NO and Others v Cowan (3218/12)

Hathorn NO and Others v Cowan (3218/12) [2012] ZAWCHC 247 (12 December 2012)

Court

Western Cape High Court, Cape Town

Case number

3218/12

Judge

K M Savage

The High Court held that late provision of indemnity under the Insolvency Act did not nullify liquidation proceedings, and granted a pleading amendment joining Olampa.

• Insolvency Act Section 32
• Irregular Steps
• Amendment Of Pleadings
• Joinder Of Parties
• Prescription Act
• Liquidation Proceedings

Ultrapolymers (Pty) Ltd v Maredi NO and Others (6171/2012)

Ultrapolymers (Pty) Ltd v Maredi NO and Others (6171/2012) [2012] ZAGPJHC 35; 2012 (4) SA 232 (GSJ) (16 March 2012)

Court

South Gauteng High Court, Johannesburg

Case number

6171/2012

Judge

FHD Van Oosten

The court held that a proved creditor could seek urgent interim relief under s 32(1)(b) of the Insolvency Act and ordered sale proceeds held in trust.

• Insolvency Act Section 32
• Locus Standi
• Interim Relief
• Prima Facie Right
• Administration Costs
• Insolvency-act

Western Flyer Manufacturing (Pty) Ltd v Dewrance N.O and Others (819/04)

Western Flyer Manufacturing (Pty) Ltd v Dewrance N.O and Others (819/04) [2005] ZANWHC 10; 2007 (6) SA 459 (B) (1 January 2005)

Court

North West High Court, Mafikeng

Case number

819/04

Judge

Pistor

The High Court dismissed a creditor’s section 32 insolvency application for lack of proper upfront indemnity, improper citation in the trustees’ name, and because the challenged disposition flowed from a court order.

• Insolvency Act Section 32
• Locus Standi
• Indemnity Requirement
• Setting Aside Dispositions
• Suretyship
• Notarial Bond