Morris NO v Airomatic (Pty) Ltd. t/a Barlows Airconditioning Company (327/88)
Morris NO v Airomatic (Pty) Ltd. t/a Barlows Airconditioning Company (327/88) [1989] ZASCA 163 (29 November 1989)
The court held that the scheme of arrangement sanctioned under section 311 of the Companies Act did not confer on the receiver the power to set aside transactions under section 29 of the Insolvency Act, as such powers are reserved for a liquidator in the context of a winding-up. The scheme binds creditors only in respect of claims existing at the date of liquidation, not in respect of claims satisfied prior to liquidation. The respondent was a creditor only for the balance of the purchase price at the relevant date, and the scheme did not create new obligations regarding goods returned prior…
Source excerpt
- Scheme Of Arrangement
- Powers Of Receiver
- Voidable Preference
- Companies Act Section 311
- Insolvency Act Section 29