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AI summary
The Supreme Court of Appeal dismissed an appeal about eight payments made by Cape Basic Products to Blue Label after provisional liquidation. The court held that the payments were void dispositions under s 341(2) of the Companies Act 61 of 1973 and that the liquidators could recover them with interest.
It may be relevant to liquidation disputes concerning payments made after provisional winding-up and to arguments about whether a recipient was the true disponee.
Evidence from source
The appeal is dismissed with costs.
Supports: The outcome of the appeal
The liquidators of Cape Basic Products (Pty) Ltd (CBP) launched an application to recover eight payments, totalling R347 531.81 made to Blue Label Distribution (Pty) Ltd (Blue Label), on the basis that they were void dispositions
Supports: The summary that the case concerned recovery of eight payments made after liquidation
The payments were made by CBP to Blue Label. It is undisputed that no monies were repaid by Blue Label to CBP.
Supports: The summary that the payments were made and later treated as repayable