ZASCA 72 (25 May 2011) - Company Law Hub

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ORDER
On appeal from: North Gauteng High Court (Pretoria) (Fabricius AJ sitting as court of
first instance):
1. The appeal is upheld with costs.
2. The order of the court a quo is set aside and re placed by the following:
‘1. The payments amounting to R192 710.00 made to t he defendant are set aside in
terms of s 29 of the Insolvency Act 24 of 1936.
2. The defendant is ordered in terms of s 32(3) of the Act to pay the amount of
R192 710.00 to the plaintiffs together with interes t thereon at the prescribed rate from date
of judgment to date of payment.
3. The defendant is ordered to pay the costs of sui t.’
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JUDGMENT
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HEHER JA (NAVSA, SNYDERS, SHONGWE JJA AND MEER AJA concurring):
[1] This is an appeal against a judgment of Fabrici us AJ in the North Gauteng High
Court, Pretoria with leave of the learned judge.
[2] The appellants, the joint liquidators of MP Fi nance Group CC, who are engaged in
winding-up the consolidated estate commonly referre d to as the Krion pyramid scheme,
instituted action under s 29 of the Insolvency Act 24 of 1936 against the respondent, Mr
Botha, as an alleged investor in the scheme. They c laimed that within six months of the
liquidation of the scheme on 5 April 2002 it had pa id amounts totalling R192 710.00 to the
respondent at a time when its liabilities exceeded its assets and that the effect of those
payments was to prefer him above the general body o f the scheme’s creditors. They
sought orders setting aside the disposition and for payment of the amounts thus disposed
of.
[3] The action was defended. The respondent set up various defences. In so far as