MRL3701 Examination Answers 26 OCTOBER 2023

Question 1 1.1 Explain when a formal defect in an application for the sequestration of an insolvent estate will be considered as fatal. (5) 1.2 Explain why the court in Ex Parte Arntzen (Nedbank Ltd as Intervening Creditor) 2013 (1) SA 49 (KZP) held that creditors are more vulnerable in voluntary surrender applications than in compulsory sequestration which then gives rise to the requirement of a higher level of disclosure. (15) 1.3 One of the requirements of the Insolvency Act 24 of 1936 is that one can apply for the sequestration of an estate if you comply with section 8 of the Act. Explain what section 8 of this Act refers to and also describe the main purpose that this section of the Act serves. (10) 1.4 Critically discuss the case of Amod v Khan 1947 (2) SA 432 (N) with reference to the relevant legislation. (10) 1.5 Explain how section 27 of the Insolvency Act 24 of 1936 has the potential to violate section 9(3) of the Constitution of the RSA, 1996. In your answer you should include a discussion on Transformative Constitutionalism. (10)