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MRL3701: Insolvency Law
May/June 2025 & May/June 2024 — Exam Revision Guide
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[LAW] Mercantile Law — Law Faculty
Exam Revision Guide
MRL3701
Module Code:
Insolvency Law
Module Name:
May/June 2025 & May/June 2024
Papers Covered:
100 per paper
Total Marks:
Mrs Z Taljaard; Ms E Mbiriri
Examiners:
Insolvency Act 24 of 1936
Prescribed Act:
Hockly’s Law of Insolvency (10th ed)
Prescribed Text:
Every question is answered in full. Study the reasoning, not just the conclusion —
that is where the marks live.
Exam Revision Notes | MRL3701 | 2024–2025
,MRL3701 | Exam Revision Insolvency Law
PAPER 1 — UNIVERSITY EXAMINATIONS: MAY/JUNE
2025
MRL3701 Insolvency Law | 100 Marks | 4 Hours
First examiner: Mrs Z Taljaard | Second examiner: Ms E Mbiriri
Key Concept
Exam Structure (2025): Question 1 carries 50 marks and contains four sub-sections
covering case-law matching, true/false statements, multiple-choice, and a compul-
sory sequestration problem. Question 2 carries 25 marks and focuses on effects of
sequestration and the trustee’s powers. Question 3 carries 25 marks covering voidable
dispositions, rehabilitation, and business rescue.
Page 2 of 36
,MRL3701 | Exam Revision Insolvency Law
QUESTION 1 50 marks
Question 1.1 — Case Law Matching 15 marks
Question: Match the case name in Column A with the correct ratio decidendi in Col-
umn B and then with the correct area of insolvency law in Column C. You may draw a
table or write the answers in sentence form. (15 marks)
Answer:
Page 3 of 36
, MRL3701 | Exam Revision Insolvency Law
Column B — Ratio Decidendi
Column A — Case Column C —
Area of Law
The sequestration of a debtor’s estate
Walker v Syfret NO establishes a concursus creditorum — Purpose of a seques-
1911 AD 141 a situation where all creditors’ claims tration order
crystallise simultaneously, preventing
individual execution.
Section 21 of the Insolvency Act 24 of
Sarrahwitz v Maritz 1936 authorises the Master to allow the Vesting of the assets
NO & Another 2015 trustee to attach property of the solvent of the solvent spouse
(4) SA 491 (CC) spouse, even though that spouse is not
the insolvent.
Section 21 is constitutional provided its
Harksen v Lane NO & temporary deprivation of the solvent Vesting of the assets
Others 1998 (1) SA 300 spouse’s property is not arbitrary and of the solvent spouse
(CC) does not constitute expropriation.
When determining whether a disposition
Hendriks NO v was made in the ordinary course of busi- Ordinary course of
Swanepoel 1962 (4) ness, an objective test is applied — the business
SA 338 (A) court asks what a reasonable merchant
would regard as normal commercial
dealings.
A second meeting of creditors was in-
Ex Parte Snooke 2014 valid because proper notice was not Meetings of creditors
(5) SA 426 (FB) given and the trustee’s report lacked and proof of claims
sufficient information to enable creditors
to make informed decisions.
A trust can be regarded as a “debtor”
Magnum Financial within the meaning of the Insolvency Sequestration of a
Holdings v Summerly Act and may therefore have its estate trust
Trust 1984 (1) SA 160 sequestrated.
(W)
Page 4 of 36
]]
MRL3701: Insolvency Law
May/June 2025 & May/June 2024 — Exam Revision Guide
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[LAW] Mercantile Law — Law Faculty
Exam Revision Guide
MRL3701
Module Code:
Insolvency Law
Module Name:
May/June 2025 & May/June 2024
Papers Covered:
100 per paper
Total Marks:
Mrs Z Taljaard; Ms E Mbiriri
Examiners:
Insolvency Act 24 of 1936
Prescribed Act:
Hockly’s Law of Insolvency (10th ed)
Prescribed Text:
Every question is answered in full. Study the reasoning, not just the conclusion —
that is where the marks live.
Exam Revision Notes | MRL3701 | 2024–2025
,MRL3701 | Exam Revision Insolvency Law
PAPER 1 — UNIVERSITY EXAMINATIONS: MAY/JUNE
2025
MRL3701 Insolvency Law | 100 Marks | 4 Hours
First examiner: Mrs Z Taljaard | Second examiner: Ms E Mbiriri
Key Concept
Exam Structure (2025): Question 1 carries 50 marks and contains four sub-sections
covering case-law matching, true/false statements, multiple-choice, and a compul-
sory sequestration problem. Question 2 carries 25 marks and focuses on effects of
sequestration and the trustee’s powers. Question 3 carries 25 marks covering voidable
dispositions, rehabilitation, and business rescue.
Page 2 of 36
,MRL3701 | Exam Revision Insolvency Law
QUESTION 1 50 marks
Question 1.1 — Case Law Matching 15 marks
Question: Match the case name in Column A with the correct ratio decidendi in Col-
umn B and then with the correct area of insolvency law in Column C. You may draw a
table or write the answers in sentence form. (15 marks)
Answer:
Page 3 of 36
, MRL3701 | Exam Revision Insolvency Law
Column B — Ratio Decidendi
Column A — Case Column C —
Area of Law
The sequestration of a debtor’s estate
Walker v Syfret NO establishes a concursus creditorum — Purpose of a seques-
1911 AD 141 a situation where all creditors’ claims tration order
crystallise simultaneously, preventing
individual execution.
Section 21 of the Insolvency Act 24 of
Sarrahwitz v Maritz 1936 authorises the Master to allow the Vesting of the assets
NO & Another 2015 trustee to attach property of the solvent of the solvent spouse
(4) SA 491 (CC) spouse, even though that spouse is not
the insolvent.
Section 21 is constitutional provided its
Harksen v Lane NO & temporary deprivation of the solvent Vesting of the assets
Others 1998 (1) SA 300 spouse’s property is not arbitrary and of the solvent spouse
(CC) does not constitute expropriation.
When determining whether a disposition
Hendriks NO v was made in the ordinary course of busi- Ordinary course of
Swanepoel 1962 (4) ness, an objective test is applied — the business
SA 338 (A) court asks what a reasonable merchant
would regard as normal commercial
dealings.
A second meeting of creditors was in-
Ex Parte Snooke 2014 valid because proper notice was not Meetings of creditors
(5) SA 426 (FB) given and the trustee’s report lacked and proof of claims
sufficient information to enable creditors
to make informed decisions.
A trust can be regarded as a “debtor”
Magnum Financial within the meaning of the Insolvency Sequestration of a
Holdings v Summerly Act and may therefore have its estate trust
Trust 1984 (1) SA 160 sequestrated.
(W)
Page 4 of 36
