Mazars Recovery & Restructuring (Pty) Ltd and Others v Montic Dairy (Pty) Ltd (in liquidation) and Others (526/2021)
Mazars Recovery & Restructuring (Pty) Ltd and Others v Montic Dairy (Pty) Ltd (in liquidation) and Others (526/2021) [2022] ZASCA 135; 2023 (1) SA 398 (SCA) (13 October 2022)
The Supreme Court of Appeal held that payments made to business rescue practitioners after the commencement of liquidation proceedings, as defined by the presentation of the application for winding-up, are void under s 341(2) read with s 348 of the Companies Act 61 of 1973 unless validated by a court order. The court rejected the appellants' argument that the Companies Act 71 of 2008 creates a statutory exception for such payments, finding that ss 143(1), 135(3), and 143(5) do not confer a right to payment after business rescue has terminated and liquidation has commenced. The practitioners f…
Source excerpt
- Business Rescue
- Liquidation Proceedings
- Remuneration Of Practitioner
- Void Dispositions
- Creditor Preference