MRL3701
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, MRL3701 Assessment 1 Semester 2 2025
Name:
Student Number:
Module: MRL3701 – Insolvency Law
Assignment 01 – Semester 2 – 2025
a. Briefly explain the purpose of a sequestration order. (5 Marks)
A sequestration order is a court order granted under the Insolvency Act 24 of 1936,
which results in the surrender of a debtor’s estate to the Master of the High Court for
the benefit of creditors. The purpose of a sequestration order is to:
1. Ensure a structured and fair distribution of the debtor's assets among all
creditors.
2. Prevent preferential treatment of certain creditors, thus avoiding a situation
where aggressive creditors recover more than others.
3. Provide the debtor with relief from creditor harassment and an opportunity for
a fresh start through rehabilitation.
4. Appoint a trustee to administer the estate, investigate the debtor’s affairs, and
realise assets to maximise returns for creditors.
5. Promote legal certainty and commercial fairness in insolvency proceedings.
In essence, sequestration aims to balance the rights of both creditors and the insolvent
individual by applying a regulated process that benefits the collective rather than
individual interests.
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)
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, MRL3701 Assessment 1 Semester 2 2025
Name:
Student Number:
Module: MRL3701 – Insolvency Law
Assignment 01 – Semester 2 – 2025
a. Briefly explain the purpose of a sequestration order. (5 Marks)
A sequestration order is a court order granted under the Insolvency Act 24 of 1936,
which results in the surrender of a debtor’s estate to the Master of the High Court for
the benefit of creditors. The purpose of a sequestration order is to:
1. Ensure a structured and fair distribution of the debtor's assets among all
creditors.
2. Prevent preferential treatment of certain creditors, thus avoiding a situation
where aggressive creditors recover more than others.
3. Provide the debtor with relief from creditor harassment and an opportunity for
a fresh start through rehabilitation.
4. Appoint a trustee to administer the estate, investigate the debtor’s affairs, and
realise assets to maximise returns for creditors.
5. Promote legal certainty and commercial fairness in insolvency proceedings.
In essence, sequestration aims to balance the rights of both creditors and the insolvent
individual by applying a regulated process that benefits the collective rather than
individual interests.
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)
