Judgment: Thomson & De Kock Construction v HMM Terblanche NO & Others

11 June 2020

This judgement pertains to an opposed application brought by the applicant, a proved creditor, against the appointed Insolvency Practitioners in the insolvent estate of Cape Vernacular Properties CC (In Liquidation). In August 2014 the respondents filed the First Liquidation and Distribution Account which indicated the applicant as a secured creditor based on an improvement and salvage lien but ranked their claim behind another secured creditor, mortgage bond holder.

The applicant objected and their objection was upheld by the Master. The Master’s decision was taken on review but the Court ruled on 21 February 2018, in favour of the Master. This order was appealed before a Full Bench which, on the 3 May 2019, upheld the order of the Court a quo.

The respondents lodged an amended Liquidation and Distribution Account, which was duly confirmed on 23 July 2019. The applicant approached the respondents for payment but the respondents had sold the only asset in the estate to the other secured creditor on terms which provided that the purchase price constituted a deemed interim award to the creditor. The Court found the actions of the respondents to reveal a manifest failure to act impartially and in the interest of creditors.

This judgment was kindly sent to us by Mr. Bessie Bester of Mazars.

  Judgment: Thomson & De Kock Construction v HMM Terblanche NO & Others

  Part 2: Thomson & De Kock Construction v HMM Terblanche NO & Others