Smith N.O and Another v Magnus N.O and Others (4220/2022; 4221/2022)
Smith N.O and Another v Magnus N.O and Others (4220/2022; 4221/2022) [2023] ZAFSHC 307 (4 August 2023)
The court found that the payments made by the business rescue practitioner to the respondents after the liquidation application but before the provisional liquidation order fell within the ambit of section 341(2) of the Companies Act 61 of 1973. However, exercising its discretion, the court held that these payments were made bona fide in respect of valid and secured claims under lease agreements, benefiting the creditors as a whole. The respondents had a preferent and secure claim, acknowledged by all parties, and the payments were necessary to obtain the proceeds of the crop. The court concl…
Source excerpt
- Company Liquidation
- Business Rescue
- Void Dispositions
- Preferent Claims
- Ratification Of Payments