MRL3701
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Insolvency Law
a. Briefly explain the purpose of a sequestration order.
(5 Marks)
A sequestration order is a legal mechanism under South African insolvency law by
which a debtor’s estate is surrendered to the Master of the High Court and placed under
the control of a trustee, who administers it for the benefit of creditors. The primary
purpose of a sequestration order is to ensure a fair, orderly, and equitable
distribution of the insolvent debtor's assets among all creditors according to the rules
of insolvency. This prevents any one creditor from executing against the estate to the
detriment of others.
The sequestration process also protects the insolvent debtor from individual
creditors’ legal actions and provides an opportunity to rehabilitate after a set period.
Furthermore, it serves the public interest by promoting confidence in commercial
dealings, as it ensures that debts are resolved in a transparent and regulated manner.
b. With reference to case law, discuss whether Thandeka and Owen can
successfully apply for the sequestration of both estates in a single application.
(5 Marks)
Although Thandeka and Owen are married out of community of property and thus
maintain separate estates, the possibility of submitting a single application for the
sequestration of both estates has been considered by South African courts.
In Ex parte Klopper NO: In re estate J F C Knobel 2001 (2) SA 379 (T), the court held
that each estate must be dealt with separately in a sequestration application. This is
because the Insolvency Act 24 of 1936 contemplates the sequestration of a single
estate, and does not make provision for the joint sequestration of separate estates,
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Insolvency Law
a. Briefly explain the purpose of a sequestration order.
(5 Marks)
A sequestration order is a legal mechanism under South African insolvency law by
which a debtor’s estate is surrendered to the Master of the High Court and placed under
the control of a trustee, who administers it for the benefit of creditors. The primary
purpose of a sequestration order is to ensure a fair, orderly, and equitable
distribution of the insolvent debtor's assets among all creditors according to the rules
of insolvency. This prevents any one creditor from executing against the estate to the
detriment of others.
The sequestration process also protects the insolvent debtor from individual
creditors’ legal actions and provides an opportunity to rehabilitate after a set period.
Furthermore, it serves the public interest by promoting confidence in commercial
dealings, as it ensures that debts are resolved in a transparent and regulated manner.
b. With reference to case law, discuss whether Thandeka and Owen can
successfully apply for the sequestration of both estates in a single application.
(5 Marks)
Although Thandeka and Owen are married out of community of property and thus
maintain separate estates, the possibility of submitting a single application for the
sequestration of both estates has been considered by South African courts.
In Ex parte Klopper NO: In re estate J F C Knobel 2001 (2) SA 379 (T), the court held
that each estate must be dealt with separately in a sequestration application. This is
because the Insolvency Act 24 of 1936 contemplates the sequestration of a single
estate, and does not make provision for the joint sequestration of separate estates,
