INSOLVENCY LAW MRL3701 ASSIGNMENT 2 2ND SEM 2024
Q1
Dispositions which prefers one creditor above another voidable preference
What must be proved Section 29(1) allows the court to set aside a disposition
meeting the following requirements and the onus is on the trustee to prove them:
a. that the insolvent made the disposition;
b. not more than 6 months before the sequestration of his estate or his death;
and
c. if the disposition had the effect of preferring one of the insolvent’s creditors
above another and immediately after the disposition was made, the liabilities
of the insolvent exceeded the value of his assets.
Q2
Disposition intended to prefer one creditor: undue preference
What must be proved Section 30 allows the court to set aside a disposition meeting
the following requirements and the onus is on the trustee to prove them:
a. that the insolvent made the disposition;
b. at any time before sequestration;
c. with the intention of preferring one of his creditors above another; and
d. when he made the disposition, his liabilities exceeded his assets.
Q3
In South African insolvency law, the trustee of Simphiwe’s insolvent estate may have
grounds to recover the R80,000 paid to his father-in-law. This recovery would be
based on the principles of voidable preferences under the Insolvency Act 24 of
1936.
Voidable Preferences
A voidable preference occurs when an insolvent debtor makes a payment or
transfers an asset to one creditor in preference to others, shortly before the
Q1
Dispositions which prefers one creditor above another voidable preference
What must be proved Section 29(1) allows the court to set aside a disposition
meeting the following requirements and the onus is on the trustee to prove them:
a. that the insolvent made the disposition;
b. not more than 6 months before the sequestration of his estate or his death;
and
c. if the disposition had the effect of preferring one of the insolvent’s creditors
above another and immediately after the disposition was made, the liabilities
of the insolvent exceeded the value of his assets.
Q2
Disposition intended to prefer one creditor: undue preference
What must be proved Section 30 allows the court to set aside a disposition meeting
the following requirements and the onus is on the trustee to prove them:
a. that the insolvent made the disposition;
b. at any time before sequestration;
c. with the intention of preferring one of his creditors above another; and
d. when he made the disposition, his liabilities exceeded his assets.
Q3
In South African insolvency law, the trustee of Simphiwe’s insolvent estate may have
grounds to recover the R80,000 paid to his father-in-law. This recovery would be
based on the principles of voidable preferences under the Insolvency Act 24 of
1936.
Voidable Preferences
A voidable preference occurs when an insolvent debtor makes a payment or
transfers an asset to one creditor in preference to others, shortly before the
