Smith N.O. and Another v Pinnar Seed (Pty) Ltd and Another (4999/2022)
Smith N.O. and Another v Pinnar Seed (Pty) Ltd and Another (4999/2022) [2023] ZAFSHC 396 (9 October 2023)
The court found that the cession in securitatem debiti was validly concluded and ratified by the business rescue practitioner, with FNB waiving its rights to the crop proceeds. However, the payments made to the first respondent after the deemed date of liquidation fell within the scope of section 341(2) of the Companies Act, 61 of 1973, and were therefore void unless validated by the court. Applying the judicial discretion under the proviso to section 341(2), the court considered the transaction's bona fides, the benefit to the general body of creditors, and the absence of improper preference…
Source excerpt
- Company Liquidation
- Cession In Securitatem Debiti
- Business Rescue
- Void Dispositions
- Judicial Validation Of Payments