No. 7/2018
INSOLVENCY
Cap.6:07
creditor above the other, and if he or she is an associate of the debtor, also proves that
he or she was not aware and had no reason to suspect that the debtor's liabilities would
exceed the \'aiue of his or her assets immediately after the making of the disposition.
(2) For the purposes of subsection (1) it is presumed, unless the contrary is
prmed, that a disposition was made not in the ordinary course of business if(a)
it was made by way of payment of a debt that was not due and payable
or not legally enforceable;
(b)
it embodied payment in an unusual form or a form otherthan that originally
agreed upon.
(3) Any disposition of his or her property by a debtor at a time \Vhen his or
her liabilities exceed his or her assets, made with the intention of preferring one of his
or her creditors above another, may be set aside by the court if the application for the
liquidation of the estate of the debtor is presented to the registrar within three years
after the making of the disposition.
(4) For the purposes of this section a surety of a debtor, or a person by law in
a position analogous to that of a surety, is deemed to be a creditor of the debtor.
(5) Every disposition of property made under a power of attorney, whether
revocable or irrevocable is, for the purposes of this section, deemed to have been made
at the time at which the transfer or delivery or mortgage of such property took place.
27
Collusive dealings for prejudicial disposition of property
( 1) Any transaction entered into by a debtor before or after the Iiquidation of
his or her estate in collusion with another person for disposing of property belonging
to the debtor or the debtor's estate in a manner which had the effect of prejudicing his
or her creditors or preferring one creditor above another, may after the liquidation of
his or her estate be set aside by the court.
(2) Any person who was a party to such collusion is liable to make good any
loss thereby incurred by the insolvent estate and must pay for the benefit of the estate,
by way of penalty, such sum as the court may determine, which sum may not be more
than the amount by which he or she would have benefited if the disposition had not been
set aside, and if he or she is a creditor he or she also forfeits his or her claim against
the insolvent estate.
(3) The compensation and penalty referred to in subsection (2) may be recovered
in any proceedings for the setting aside of the transaction in question.
28
Application of sections 22, 24 and 25 to certain debtors
(I) Sections 24, 26 and 27 apply to a debtor other than a natural person or
partnership if such debtor has been liquidated in terms of this Act and is unable to pay
its debts, or after the commencement of corporate rescue proceedings in terms of Part
XXIII.
(2) For the purposes of applying sections 24, 26. 27 and 33( 4) to a debtor
that is a debtor other than a natural person or partnership, the event that is deemed to
correspond to the presentation of the application for liquidation of a debtor is(a)
where the liquidation order has superseded a voluntary liquidation, the
registration of the special rcsol uti on or resolution, as the case may be, to
Iiquidate the debtor; and
(b)
where the liquidation order has superseded a voluntary liquidation by
creditors in terms of section 9, the giving of standard notice to creditors
of the liquidation resolution to liquidate the debtor; and
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