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MRL3701 - 2022 First Semester - Assignment 1

The document is an assignment submission for a law student named Xolani Vincent Mahlangu. It discusses the requirements for voluntary surrender or sequestration in South African insolvency law. It states that for a debtor to successfully apply for voluntary surrender, they must prove to the court that they are insolvent by showing their liabilities exceed their assets. They must also prove that sequestration would benefit creditors. The document uses the example of a debtor named Alice applying for voluntary surrender but argues her application would not be successful because sequestration would not benefit her creditors.

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165 views

MRL3701 - 2022 First Semester - Assignment 1

The document is an assignment submission for a law student named Xolani Vincent Mahlangu. It discusses the requirements for voluntary surrender or sequestration in South African insolvency law. It states that for a debtor to successfully apply for voluntary surrender, they must prove to the court that they are insolvent by showing their liabilities exceed their assets. They must also prove that sequestration would benefit creditors. The document uses the example of a debtor named Alice applying for voluntary surrender but argues her application would not be successful because sequestration would not benefit her creditors.

Uploaded by

XOLANI
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MRL3701 - 2022 First Semester - Assignment 1

FULL NAMES: XOLANI VINCENT MAHLANGU

STUDENT NUMBER: 57830932

ASSIGNMENT 01 – FIRST SEMESTER

UNIQUE NUMBER: 174849

DUE DATE: 11 APRIL 2022

LECTURER: Ms. Z Taljaard

………………………………………………………………………………………………………………………………………………………………….
The debtor himself (or his agent) may apply to court for acceptance of the surrender of
his estate. This is known as voluntary surrender. The court may accept the surrender of
a debtor’s estate only if it is satisfied that the debtor’s estate is, in fact, insolvent; the
debtor owns realizable property of sufficient value to defray all costs of the
sequestration which will, in terms of Insolvency Act 24 of 1936,1 be payable out of the
free residue of his estate and that the sequestration will be to the advantage of
creditors.2

One of the requirements for a successful sequestration is that the court must be
satisfied that debtor’s total liabilities exceeds the value of all of his assets. The debtor
must own sufficient property to meet the costs of sequestration. A debtor who has no
assets and only liabilities cannot surrender his estate. In Ex parte Collins 1927 WLD
172,3 the court refused to grant an application for surrender because the debtor had
only liabilities.

For Alice to succeed in her action to apply for Voluntary Surrender. She must prove to
the court that she is indeed insolvent. She must satisfy the court that her total liabilities
exceed the value of all of her assets and prove that sequestration will be to the
advantage of creditors. Alice’s action to apply for voluntary Surrender is motivated by
the fact that she owes too many people and cannot afford to pay them, she wants to
apply for sequestration to avoid/escape the responsibility of paying her debts. Her
application for surrender will not be successful because her sequestration will not be to
the advantage of her creditors if granted.

1Insolvency Act 24 of 1936


2 Sharrock R, Van der Linde K & Smith A Hockly’s Insolvency Law 9th edition (Juta,
Cape Town, 2012)
3 Ex parte Collins 1927 WLD 172
ACADEMIC HONESTY DECLARATION

1. I understand what academic dishonesty entails and am aware of Unisa’s policies in this regard.

2. I declare that this assignment is my own, original work. Where I have used someone else’s work, I
have indicated this by using the prescribed style of referencing. Every contribution to, and quotation
in, this assignment from the work or works of other people has been referenced according to this
style.

3. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off
as his or her own work.

4. I did not make use of another student’s work and submitted it as my own.

NAME: XOLANI VINCENT MAHLANGU

SIGNATURE: ………………………………………………….............……….…………………………………………….

STUDENT NUMBER: 57830932

MODULE CODE: MRL3701

DATE: 11 April 2022

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