Van Soelen & Hellmuth v Smith's Trustee [1908] ZAHCORC 36 (2 November 1908)

Insolvency.- Voluntary surrender.-Sec. 8 of chap. 104.-Mortgage
creditor.-" Free residue."-Liability of estate for costs of obtaining
surrender.

Where the only creditor of an insolvent estate which had been voluntarily surrendered was secured by a special mortgage bond, Held, that the costs incurred in preparing the schedules and other documents required for the surrender are privileged, and that the "free residue" in sec. 8 of chap. 104 means the balance remaining after the payment of costs of realisation of the assets.