Business and Insolvency: Brief exploration of Section 29 of the South African Insolvency Act

According to Section 29 of the South African Insolvency Act, a court may set aside a debtor's disposal of his or her property if the disposal occurred within six months before his or her Estate was sequestrated, had the effect of preferring one of his his or her creditors to the others and immediately after the disposal, the liabilities of the debtor exceeded the value of his or her assets -


this disposal occurred in the ordinary course of business and was not intended to prefer one creditor above another.

The 2021 Judgement in Moodliar NO v Lawson Tool Distributors appeared to hold that the said exceptions are interrelated in that the dominant intention must be to pursue an ordinary course of business, which the eventually sequestrated business was entitled to do.

The above is merely a brief summary, please do not rely on it but consult with an Attorney for a deeper analysis to your particular problem.
Ismail Ayob and Partners practice in Insolvency and can assist.