South Africa Case Law

Truval Manufacturers and Another v United Merchants CC (in liquidation) and Others (2021/30511)

Truval Manufacturers and Another v United Merchants CC (in liquidation) and Others (2021/30511) [2023] ZAGPJHC 1248 (31 October 2023)

Court

South Gauteng High Court, Johannesburg

Case number

2021/30511

Judge

W G La Grange

The court found that Truval Manufacturers CC demonstrated a sufficient interest to intervene in the conversion application, as the relief sought by Enyuka could potentially affect Truval's property rights and security as a creditor, particularly if the date of liquidation is altered and impeachable transactions are reconsidered. Although Truval's application was unsatisfactory and lacked detail regarding its intended opposition, the possibility of its rights being adversely affected justified granting leave to intervene. The court reserved costs for determination at the hearing of the convers…

Source excerpt

• Intervention Application
• Winding Up
• Creditor Rights
• Voidable Preference
• Notarial Bond
• Setting Aside Voluntary Liquidation

Strydom N.O and Others v Van Zyl (345/2022)

Strydom N.O and Others v Van Zyl (345/2022) [2023] ZANWHC 55 (17 May 2023)

Court

North West High Court, Mafikeng

Case number

345/2022

Judge

A H Petersen

The High Court dismissed an exception to a claim involving alleged voidable preferences by a company in liquidation, finding the pleading sufficiently disclosed a cause of action.

• Exception Procedure
• Voidable Preference
• Company Liquidation
• Pleading Requirements
• Exception-procedure
• Company-liquidation

Bester N.O. and Another v Pieters (13994/2021)

Bester N.O. and Another v Pieters (13994/2021) [2022] ZAWCHC 76; 2023 (1) SA 466 (WCC) (11 May 2022)

Court

Western Cape High Court, Cape Town

Case number

13994/2021

Judge

Kusevitsky

The High Court ordered the respondent to repay interest paid from trust sale proceeds, finding the funds belonged to the insolvent trust estate.

• Insolvency Act
• Trust Property
• Unjust Enrichment
• Voidable Preference
• Cession
• Issue Estoppel

Eckhoff N.O. and Another v Hartshorne and Another (13640/2020)

Eckhoff N.O. and Another v Hartshorne and Another (13640/2020) [2022] ZAWCHC 68 (29 April 2022)

Court

Western Cape High Court, Cape Town

Case number

13640/2020

Judge

Kusevitsky

Joint liquidators sought to set aside a payment to creditors under sections 26, 29, 30 and 31 of the Insolvency Act, but the High Court dismissed the application.

• Insolvency Act Impeachable Transactions
• Voidable Preference
• Undue Preference
• Collusive Dealing
• Disposition Without Value
• Insolvency-act

Moodliar N.O and Others v Lawson Tool Distributors (Pty) Ltd (7855/2016)

Moodliar N.O and Others v Lawson Tool Distributors (Pty) Ltd (7855/2016) [2021] ZAWCHC 99; 2022 (2) SA 220 (WCC) (7 May 2021)

Court

Western Cape High Court, Cape Town

Case number

7855/2016

Judge

Bozalek

The court found that the payments made by Vusela to the defendant were regular, consistent, and in accordance with the terms of the credit facility. The evidence showed that Vusela needed building supplies to continue trading and that the payments were made to maintain its business operations, not to prefer the defendant over other creditors. There was no direct evidence of Vusela's intention to prefer, and the relationship between Vusela and the defendant was entirely at arm's length. The court held that the most plausible inference was that Vusela's dominant intention was to keep its busine…

Source excerpt

• Voidable Preference
• Insolvency Act Section 29
• Ordinary Course Of Business
• Intention To Prefer
• Companies Act Section 339
• Burden Of Proof

Jackson v Louw N.O and Another (CA&R 149/17)

Jackson v Louw N.O and Another (CA&R 149/17) [2018] ZAECGHC 141; [2019] 2 All SA 145 (ECG) (13 December 2018)

Court

Eastern Cape High Court, Grahamstown

Case number

CA&R 149/17

Judges

D Van Zyl, J E Smith, G H Bloem

The court held that the agreements regarding the livestock and equipment constituted voidable preferences under section 29 of the Insolvency Act. The Trust was the owner of the heifers and younger animals, and the equipment, at the time of disposition. The surrender of these assets to the appellant was not in the ordinary course of business, but rather arose from the Trust's insolvency and inability to meet its obligations. The evidence did not support a finding of collusion or fraudulent intent under section 31. The trial court's order was set aside and replaced with an order setting aside o…

Source excerpt

• Insolvency Act
• Voidable Preference
• Collusive Dealing
• Secured Creditor Rights
• Ordinary Course Of Business
• Statutory Pledge

De Wet N.O. and Another v R G and Associates (9406/2017)

De Wet N.O. and Another v R G and Associates (9406/2017) [2018] ZAWCHC 30 (26 February 2018)

Court

Western Cape High Court, Cape Town

Case number

9406/2017

Judge

N P Boqwana

The High Court set aside payments to an attorney’s trust account as impeachable dispositions under the Insolvency Act and ordered repayment to the liquidators.

• Insolvency Act
• Impeachable Disposition
• Voidable Preference
• Liquidation
• Trust Account Misuse
• Insolvency-act

Akbur and Another v Button NO and Others (AR529/2016)

Akbur and Another v Button NO and Others (AR529/2016) [2017] ZAKZPHC 68 (15 June 2017)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR529/2016

Judges

Koen, Poyo Dlwati, Bezuidenhout

The High Court upheld an appeal against a voidable-preference order, finding the liquidators relied on inadmissible evidence and unresolved disputes of fact.

• Voidable Preference
• Insolvency Act Section 29
• Motion Proceedings
• Hearsay Evidence
• Liquidation
• Burden Of Proof

Sasfin Bank Limited and Others v DCB Auto Spares Close Corporation (37622/2015)

Sasfin Bank Limited and Others v DCB Auto Spares Close Corporation (37622/2015) [2016] ZAGPJHC 347 (5 October 2016)

Court

South Gauteng High Court, Johannesburg

Case number

37622/2015

Judge

B Mahalelo

The High Court dismissed an exception to particulars of claim arising from an invoice discounting agreement and an alleged set-off arrangement.

• Exception Procedure
• Invoice Discounting Agreement
• Cession Of Book Debts
• Voidable Preference
• Collusive Disposition
• Exception-procedure

Nel N.O and Others v Bank of Baroda (11602/14)

Nel N.O and Others v Bank of Baroda (11602/14) [2016] ZAKZDHC 19 (12 May 2016)

Court

Kwazulu-Natal High Court, Durban

Case number

11602/14

Judge

Koen

Leave to amend particulars of claim was refused because the proposed Insolvency Act allegations did not plead a disposition to the defendant or sufficient facts.

• Pleading Requirements
• Insolvency Act Dispositions
• Collusive Disposition
• Voidable Preference
• Amendment Of Particulars Of Claim
• Civil-procedure