South Africa Case Law

Sentraalwes (Koop) Bpk v Meester van die Hooggeregshof en Andere (241/90)

Sentraalwes (Koop) Bpk v Meester van die Hooggeregshof en Andere (241/90) [1992] ZASCA 9; 1992 (3) SA 86 (AD); [1992] 2 All SA 39 (A) (5 March 1992)

Court

Supreme Court of Appeal

Case number

241/90

Judges

C P Joubert, E M Grosskopf, Vivier, F H Grosskopf, Van Coller

Section 88 of the Insolvency Act 24 of 1936 does not apply to special notarial bonds over specified movable property that do not confer any preference, as such bonds do not grant a statutory or common law preference over the free residue of the insolvent estate. The appellant's claim, secured by a special notarial bond, was correctly treated as a concurrent claim by the trustees, notwithstanding their erroneous reliance on section 88. The legislative intent and previous judicial interpretation confirm that only bonds conferring preference are subject to section 88, and the special notarial bo…

Source excerpt

• Insolvent Estate Distribution
• Special Notarial Bonds
• Preferent Claims
• Interpretation Of Statutes