Moodliar N.O and Others v Lawson Tool Distributors (Pty) Ltd (7855/2016)
Moodliar N.O and Others v Lawson Tool Distributors (Pty) Ltd (7855/2016) [2021] ZAWCHC 99; 2022 (2) SA 220 (WCC) (7 May 2021)
The court found that the payments made by Vusela to the defendant were regular, consistent, and in accordance with the terms of the credit facility. The evidence showed that Vusela needed building supplies to continue trading and that the payments were made to maintain its business operations, not to prefer the defendant over other creditors. There was no direct evidence of Vusela's intention to prefer, and the relationship between Vusela and the defendant was entirely at arm's length. The court held that the most plausible inference was that Vusela's dominant intention was to keep its busine…
Source excerpt
- Voidable Preference
- Insolvency Act Section 29
- Ordinary Course Of Business
- Intention To Prefer
- Companies Act Section 339
- Burden Of Proof