Janse Van Rensburg and Another v Griffiths (2101/2002)
Janse Van Rensburg and Another v Griffiths (2101/2002) [2014] ZAECPEHC 20; [2014] 2 All SA 670 (ECP) (25 March 2014)
The court found that the payments made by Usapho Trust to the defendant within six months prior to sequestration were voidable preferences under section 29 of the Insolvency Act. All elements required by section 29 were established, including that the payments constituted dispositions, were made within the relevant period, and preferred the defendant above other creditors. The only remaining issue was whether the payments were made in the ordinary course of business. Applying a broad, objective test and considering the illegal nature of Usapho Trust's business as a pyramid scheme, the court h…
Source excerpt
- Insolvency Act Section 29
- Voidable Preferences
- Pyramid Scheme Illegality
- Ordinary Course Of Business
- Harmful Business Practices
- Interest On Impeachable Dispositions