In Re: South African Co-Operative Live Stock Company Ltd [In Liquidation] [1912] ZAWLD 30 (12 September 1912)

Comparvy.- Winding-up.-Distribution.- Directions to 'Liquidators.-Proofs of Debt.-Power of Court to fix time of creditors to prove.-Unproved 01·editors scattered throughout South Africa.-Law 13 of 1895, sec. 65.-Act 31 of 1909, sec. 136 (3).

During the winding-up of a comparvy it appeared from the records of the comparvy that there were about 5,000 creditors of the comparvy scattered all over South Africa, and that they were all creditors for small amounts paid by them in respect of certain so-called debenture bonds. The bonds had not been registered in the Deeds Registry and the liquidators had
been advised by counsel that the bonds were ultra vires the company. Only a few bondholders had endeavoured to prove in the liquidation and their proofs had been rejected by the Master on grounds immaterial hereto. No appeal had been lodged against the Master's decision. The liquidators, supported by these latter bondholder, applied to the Court for directions as to the framing of thefr accoum,ts and asked the Court to declare the bonds ultra vires, the bondholders entitled to prove, after satisfaction of ordinary creditors of the company, for the amounts whereby the comparvy had been enriched at their expense, and to fix a time within which the bondholders should be entitled to prove :-Held, that as
no proofs of bondholders were before the Court the question of the validit;y of the bonds should not oe considered, but that the liquidators were entitled to ask for instructions under sec. 136 (3) of Act 31 of 1909 and, as the bondholders were scattered all over South Africa, the Court should exercise the powers provided by Law 13 of 1895, sec. 65, and fix a day before which bondholders should file their claims with the liquidator and give directions as to service.