In Brief
This case examined whether a sale of an insolvent's property by the Official Receiver remains protected under Section 37 of the Provincial Insolvency Act after annulment of insolvency, despite the underlying transaction being based on fabricated documents. An appellant inherited a partnership share; he was declared insolvent and the Receiver sold the share to another party in 1983. When the insolvency was later annulled in 1996, the trial court found the documents proving the pre-insolvency contract were forged and cancelled the sale deed. The High Court reversed this, relying on Section 37. The Supreme Court restored the trial court's order, holding that Section 37 protection applies only to sales that are 'duly made'—meaning based on valid, bona fide, and final orders. Since the order authorizing the sale was set aside and the transaction was fraudulent, Section 37 did not apply.
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