Trustees in Insolvent Estate of Smith v Johnstone McCaig [1880] ZASCCGH 29 (12 July 1880)

Insolvent Ordinance, §§ 83, 84, 88.-Undue Preference

H. S. knowing his affairs to be in an unsound condition, sold to one J. M., who was his creditor in respect of two promissory notes, seven ostriches, J. M. engaging to meet the notes in consideration of this sale. H. S. shortly after became insolvent. Held, on action for the rescission of the sale being brought by his trustees against J. M., that the sale was not void under § 83 of tlie Insolvent Ordinance, but was an undue preference under § 84. J. M. was however declared entitled to prove his claim in respect of the promissory notes, on the insolvent estate.