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South Africa decisions
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Engelbrecht N.O. and Others v Stadler (11100/2015) [2024] ZAWCHC 10 (26 January 2024)
The High Court held that payments made by an insolvent to a company controlled by the defendant were recoverable, but reduced the claim for certain third-party account payments.
Pollock N.O and Others v Nesane and Others [2023] ZAGPPHC 430; 2020/56445 (18 May 2023)
The High Court dismissed a late postponement request and upheld an unopposed section 31 Insolvency Act application, setting aside dispositions and ordering repayment, penalties, interest, and costs.
Duet and Magnum Financial Services CC (In Liquidation) v Koster (168/09) [2010] ZASCA 34; 2010 (4) SA 499 (SCA) ; [2010] 4 All SA 154 (SCA) (29 March 2010)
The Supreme Court of Appeal held that the statutory right given to liquidators under the Insolvency Act to seek a declaration setting aside impeachable transactions is a 'debt' for purposes of the Prescription Act. This right accrues once the necessary statutory events have occurred, typically upon the appointment of a liquidator. Prescription commences to run from that date, not from the date when the court makes the declaration. The court overruled the contrary decision in Barnard and Lynn NNO v Schoeman, confirming that the right is subject to prescription and that the claim in this case h…
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Duet and Magnum Financial Services CC (in liquidation) v Koster (22665/2005) [2009] ZAGPHC 16 (4 February 2009)
The court held that the plaintiff's claims, as formulated, constitute a 'debt' under the Prescription Act. The requirement of a preliminary order setting aside the disposition does not delay the commencement of prescription. Prescription begins to run when the creditor is aware or should be aware of the identity of the debtor and the facts giving rise to the claim. The court found no distinction in principle between the present case and previous cases dealing with similar preliminary hurdles. The reasoning in Barnad NO v Bezuidenhout and Burley Appliances v Grobbelaar NO was followed, and the…
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Western Flyer Manufacturing (Pty) Ltd v Dewrance N.O and Others (819/04) [2005] ZANWHC 10; 2007 (6) SA 459 (B) (1 January 2005)
The High Court dismissed a creditor’s section 32 insolvency application for lack of proper upfront indemnity, improper citation in the trustees’ name, and because the challenged disposition flowed from a court order.
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