South Africa Case Law

FirstRand Bank Limited v Coningsby and Another (6749/2021; 6750/2021)

FirstRand Bank Limited v Coningsby and Another (6749/2021; 6750/2021) [2021] ZAGPJHC 744 (26 November 2021)

Court

South Gauteng High Court, Johannesburg

Case number

6749/2021; 6750/2021

Judge

L R Adams

The court found that the applicant established all jurisdictional requirements for provisional sequestration under section 9 of the Insolvency Act: a liquidated claim exceeding R100, acts of insolvency committed by the respondents through written admissions of inability to pay, and factual insolvency demonstrated by liabilities exceeding assets. The court held that sequestration would benefit creditors by enabling asset realisation and investigation. The respondents' defences were rejected as lacking merit, and no special circumstances justified the exercise of discretion to refuse sequestrat…

Source excerpt

• Insolvency Act Section 8g
• Provisional Sequestration
• Advantage To Creditors
• Liquidated Claim
• Acts Of Insolvency

Linde v Richard Wayne Rawlins N.O. and Others (EL 860/20)

Linde v Richard Wayne Rawlins N.O. and Others (EL 860/20) [2021] ZAECELLC 18 (15 June 2021)

Court

Eastern Cape High Court, East London Local Court

Case number

EL 860/20

Judge

Tokota

The court found that the applicant is a creditor of the Trust, as he invested R500,000 and the Trust acknowledged its indebtedness in writing. The claim is liquidated, as the amount is fixed and certain. The respondents' argument that the investment's value fluctuates is irrelevant, given the written acknowledgment of debt. The court rejected the allegation of duress, finding no credible evidence of threats or intimidation; mere discomfort or disagreement does not constitute duress. The notice signed by the trustees constituted an act of insolvency under section 8(g) of the Insolvency Act. Th…

Source excerpt

• Insolvency Act Section 8g
• Liquidated Claim
• Creditor Status
• Duress
• Advantage To Creditors

Corporate Money Managers (Pty) Ltd and Others v Kruger (77058/09)

Corporate Money Managers (Pty) Ltd and Others v Kruger (77058/09) [2013] ZAGPPHC 42 (12 February 2013)

Court

North Gauteng High Court, Pretoria

Case number

77058/09

Judge

P M Mabuse

The High Court granted final sequestration of the respondent’s estate after finding him insolvent, unable to pay a judgment debt, and with insufficient assets.

• Final Sequestration
• Insolvency Act Section 8g
• Suretyship
• Deed Of Cession
• Judgment Enforcement
• Insolvency

First Rand Bank Ltd v Janse Van Rensburg (3846/2011, 3847/2011)

First Rand Bank Ltd v Janse Van Rensburg (3846/2011, 3847/2011) [2012] ZAECPEHC 1; [2012] 2 All SA 186 (ECP) (17 January 2012)

Court

Eastern Cape High Court, Port Elizabeth

Case number

3846/2011, 3847/2011

Judge

GG Goosen

The court held that the mere fact of an application for debt review under section 86 of the National Credit Act, as reflected in a credit bureau report, does not constitute an act of insolvency under section 8(g) of the Insolvency Act. Section 8(g) requires a written notice from the debtor to the creditor that unequivocally states an inability to pay debts. The credit bureau report did not contain such a statement, nor was it communicated by the respondents themselves or by an authorized agent. The authorities cited, including First Rand Bank Ltd v Evans, do not support the proposition that a…

Source excerpt

• Insolvency Act Section 8g
• National Credit Act Debt Review
• Acts Of Insolvency
• Written Notice Requirement

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