Ukubona 2000 Electrical CC and Another v City Power Johannesburg (Pty) Ltd (155/03)
Ukubona 2000 Electrical CC and Another v City Power Johannesburg (Pty) Ltd (155/03) [2004] ZASCA 65; 2004 (6) SA 323 (SCA) (1 June 2004)
The court held that section 84(1) of the Insolvency Act creates a statutory hypothec only in favour of a creditor/seller who is the owner of the goods at the time of the debtor's insolvency. The definition of 'instalment sale transaction' in the Credit Agreements Act includes transactions where the purchase price is payable in one lump sum at a future date. However, since the appellants were not owners of the components at the time of Drivecor's liquidation—their suppliers had reserved ownership and had not been paid—they could not benefit from the statutory hypothec. The legislative intent w…
Source excerpt
- Statutory Hypothec
- Instalment Sale Transaction
- Credit Agreements Act
- Ownership Transfer
- Insolvency Act