Cap. 6:07
INSOLVENCY
No. 7/2018
PART IV
LIQUIDATION ORDERS AND COMMENCEMENT Of LIQUIDATION
14
Provisional liquidation order
(I) The Court may grant a provisional order for the liquidation of the estate
of a debtor if the Court is satisfied on the face of the documents that the applicable
requirements of section 4, 5 or 6 hm·e been complied with and
(a)
in the case of a debtor other than a natural person or partnership, the debtor
has resolved that it be liquidated by the Court in terms of a liquidation
resolution, as long as the debtor is not pre\·ented by law, agreement or
any other legally enforceable reason, from passing such resolution; or
(c)
in the case of a debtor other than a natural person, partnership or trust, it
is just and equitable that the debtor should be liquidated; or
(b)
the Court is satisfied on the face of the documents that(i)
in the case of a natural person there is reason to belie\·e that the
liquidation of the estate of the debtor will be to the advantage of
his or her creditors; and
(ii)
the debtor's liabilities exceed his or her assets or the debtor is unable
to pay its debts in terms of section 3; and
(iii) any of the following, where applicable, is not more appropriate than
liquidationA.
corporate rescue proceedings in terms of Part XXIII; or
B.
a compromise in terms of section 148: or
C.
a pre- or post-liquidation composition in terms of section 119
or 120.
(2) A Court granting a provisional liquidation order may simultaneously grant
a rule nisi calling upon all interested parties and the respondent to appear on a date
mentioned in the rule and to show cause why the debtor's estate should not be liquidated
finally.
(3) The return day of the rule nisi may on the application of the respondent be
anticipated for the purpose of discharging the order for provisional liquidation if 24
hours direct notice is given to the applicant.
(4) If the Court does not grant a provisional liquidation order it may grant
an order in terms of section 15 if it is satisfied that no one will be prejudiced by such
an order without a provisional order in terms of this section, dismiss the application,
postpone the hearing thereof to a determined date, or make any other order it considers
just.
(5) When a provisional liquidation order is granted the registrar must ensure that
the particulars which must in terms of section 4(2) and 6(3)(d) appear in the heading
of the application, also appear on the order.
(6) If there are reasonable grounds to believe that a debtor who is a natural
person, or the management of a debtor which is not a natural person. may t1ee the
country to avoid prosecution or to take assets out of the reach of creditors. the Court
may, when it grants a provisional or f]nalliquidation order, or at any time thereafter
on an application by the liquidator. issue an order that the passport of such person be
handed to the liquidator for the period stated in the order.
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