MRL3701 Assignment 2 2025

MRL3701 Assessment 1 OPENS FOR SUBMISSION: 6 May 2025 DUE DATE: 13 May 2025 QUESTION: Kabelo’s estate was sequestrated in 2021 and he has not yet been rehabilitated. Dennis was appointed as the trustee of the insolvent estate. The assets in Kabelo’s estate were insufficiento cover the sequestration costs. As a result, all his creditors had to pay a contribution and theconcurrent creditors did not receive dividends. Kabelo recently won a motor vehicle worth R200 000 in a competition which was run by theMall of South Africa. When Dennis heard of the news, he claimed delivery of the car. Kabelreally likes the car and wants to keep the car. Kabelo comes to you for advice. He wants to know whether he has to deliver the car to thetrustee or if there are ways he could keep the car. By referring to relevant legislation, adviseKabelo. ANSWER In terms of section 20(1)(a) of the Insolvency Act 24 of 1936 The effect of sequestration is that the insolvent is divested of their estate and the estate vestsin the Master of the High Court and, subsequently, in the trustee upon their appointment¹. Thimeans that all property of the insolvent at the date of sequestration, as well as any propertacquired by the insolvent during insolvency, forms part of the insolvent estate².