Sellner's Trustees v National Bank of The Orange River Colony Ltd [1908] ZAHCORC 14 (7 April 1908)

Insolvency. - Undue preference. - Contemplation of sequestration. - Intention to prefer.-Secs. 84 and 86 of chap. 104 of the Law Book, and sec. 11 of Law 14 of 1899.

S, an insolvent, at the time when he was being pressed by his creditors and had admitted that he was unable,to pay them in full, and within six months of the date when his ,estate was sequestrated, paid N Bank £300 and passed a mortgage bond, for £850 μpon certain farm property in security for pa!lt advances previously unsecured in consideration of the release of an erf hypothecated to the same bank together with two other erven under a first bqnd for £1000 and a second for £500. Neither of these two last bonds had been reduced. S had sold and transferred the erf released to R, who had paid him £350 for it. Held, that S had uuntemplated insolvency at the time he gave the power to pass the bond and when he paid the .£300, and that he intended to prefer N Bank.