No. 7/2018
INSOLVENCY
Cap. 6:07
(2) The estate of the debtor remains in the custod) and under the control of
the liquidator until it reverts to the debtor in terms of a composition or compromise
contemplated in Part XXII or Part XXIII, or until the property is re-\ ested in the debtor
or the debtor's estate because of the setting aside of the liquidation order or liquidation
resolution.
(3) If the liquidator vacates his or her office or dies or becomes incompetent
to exercise his or her powers and perform his or her duties, the estate falls under the
custody and control of any remaining liquidator or, if there is none, under the custody
and control of the Master, until the appointment of a new liquidator.
(.:.1-) After the expiry of e\'ery caveat entered in terms of section 18(3), 49( 10),
or I 08(3) in respect of the property of a debtor any act of registration in respect of
such property brought about by such debtor is valid in spite of the fact that the property
formed part of the insolvent estate.
(5) If a debtor who is or was insolvent unlawfully disposes of immovable
property which forms part of his or her insolvent estate, the liquidator may recover the
value of the property so disposed of(a)
from the debtor or former debtor; or
(b)
from any person who, knowing such property to be part of the insolvent
estate, acquired such property from the debtor or former debtor; or
(c)
from any person who acquired such property from the debtor or former
debtor without giving sufficient value in return, in which case the amount
so recovered must be the difference between the value of the property
and any value given in return.
(6) The execution of a judgment in respect of property of the debtor, or the
enforcement of a security interest by a creditor under Part VII of the Movable Property
Security Interests Act [Chapter 14:35] must be stayed(a)
as soon as the sheriff or creditor becomes aware of the issuing of a
liquidation order against the debtor, unless the Court orders otherwise:
(b)
as soon as the sheriff or creditor becomes aware of the adoption of a
liquidation resolution by the debtor in terms of section 10, or the notice
given to adopt a liquidation resolution in terms of section 9:
Provided that the sheriff must hold over such execution of a judgment or the
creditor must hold over the enforcement of a security interest until such time as he
or she is satisfied that the resolution in question has been filed or registered with the
necessary authority in terms of section 9(2)(a) or section 10(2), failing which he must
continue \Vith the execution of the judgment or enforcement of the security interest
as if the liquidation resolution in question under section 10 had not been adopted, or
notice given of the intention to pass a resolution under section 9.
(7) ff costs in connection with the sale in execution of assets of the debtor have
already been incurred when the execution of a judgment or enforcement of the security
interest is stayed as contemplated in subsection 6(a), the Master may on the application
of the liquidator, on the conditions he or she finds just and subject to confirmation of
the sale price by the Master or by resolution of a meeting of creditors of the estate,
apprm e the continuation of the sale for the benefit of the insolvent estate, in which case
the costs of the sale before or after liquidation must be deducted from the proceeds.
(8) The liquidator of an insolvent estate is entitled to recmer from a creditor of
the debtor the net amount of any payment in pursuance of the execution of any judgment
made or in pursuance of the enforcement of any security interest to such creditor after
the granting of the first liquidation order, or after the adoption of a liquidation resolution
21R
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