Nedbank Limited v Master of the High Court and Another (43581/16)
Nedbank Limited v Master of the High Court and Another (43581/16) [2019] ZAGPJHC 393 (31 October 2019)
The court held that the Supreme Court of Appeal and Constitutional Court judgments in Diener are binding and dispositive of the central issue. Sections 135(4) and 143(5) of the Companies Act 71 of 2008 do not create a super-preference for the business rescue practitioner’s claim for remuneration and expenses over secured creditors. Instead, the BRP’s claim is a preferential claim against the free residue, ranking ahead of post-commencement financiers and unsecured creditors, but not ahead of pre-business rescue secured creditors. The Master’s reliance on the Murgatroyd judgment was misplaced,…
Source excerpt
- Business Rescue Proceedings
- Liquidation Preference
- Remuneration Of Business Rescue Practitioner
- Companies Act 71 Of 2008
- Insolvency Act 24 Of 1936