Molose N.O and Others v Nonxuba and Others (1440/2023; 1441/2023)
Molose N.O and Others v Nonxuba and Others (1440/2023; 1441/2023) [2023] ZAECELLC 38; 2024 (3) SA 145 (ECEL) (5 December 2023)
The applicants failed to establish, even on a prima facie basis, that Nonxuba Inc stole the trust funds or that there is a shortfall in the trust account. The evidence shows a credit balance sufficient to cover the applicants' claims. Without direct evidence of theft or a deficit, no debt as envisaged by section 9(1) of the Insolvency Act has been established. The applicants also did not demonstrate factual insolvency of Nonxuba Inc or the respondents. Section 19(3) of the Companies Act applies to contractual debts, and while the mandate to recover damages created a contractual relationship,…
Source excerpt
- Provisional Sequestration
- Personal Liability Company
- Director Liability
- Medical Negligence Awards
- Trust Account Shortfall