Sand and Co and Others v Pinchuk and Other [1912] ZAWLD 7 (28 March 1912)

lnsol·vency.-[f ndue Preference.-Sale to Creditoi- in
Part Satisfaction of Debt.-Remedy available to
Trustee.-lnterdict.

A bona :fide sale by a person when clearly in insolvent circwrnstance.~
will not be set aside as ,an it11due preference
merely on the ground that zJart of the piirchase
price has been satisfied by setting off a debt due by_
the seller to the.purchase1·. When the result of such
set-off has been to unduly pref~r the purchase; for'
· the amount thereof before the other creditors of the
-~eller, the zJroper course j 01· the latter's· trustee to
-:pursue is to sue the purchaser for the amount whereby
he has been prefened. Where such a course will
adequately protect the general body of creditors the
·Coitrt will not interdict the purchaser for dealing
with the property pitrchased. (Aboo and Abdool Carrim's
Trustee vs. Eb1·ahim, 1907, T.S. 65, and
Randles Brothe1·s and Hudson vs. Brewer, 1908, T.S.
673, disting·itished.)