South Africa Case Law

Duet and Magnum Financial Services CC (In Liquidation) v Koster (168/09)

Duet and Magnum Financial Services CC (In Liquidation) v Koster (168/09) [2010] ZASCA 34; 2010 (4) SA 499 (SCA) ; [2010] 4 All SA 154 (SCA) (29 March 2010)

Court

Supreme Court of Appeal

Case number

168/09

Judges

Nugent, Heher, Van Heerden, Theron, Seriti

The Supreme Court of Appeal held that the statutory right given to liquidators under the Insolvency Act to seek a declaration setting aside impeachable transactions is a 'debt' for purposes of the Prescription Act. This right accrues once the necessary statutory events have occurred, typically upon the appointment of a liquidator. Prescription commences to run from that date, not from the date when the court makes the declaration. The court overruled the contrary decision in Barnard and Lynn NNO v Schoeman, confirming that the right is subject to prescription and that the claim in this case h…

Source excerpt

• Prescription Act
• Liquidator Rights
• Impeachable Transaction
• Setting Aside Dispositions
• Statutory Remedies