Comparison View

Formal Consolidation |  2020 RevEd
Restriction of rights of creditor as to execution or attachment
206.—(1)  Where a creditor has issued execution against the goods or land of a company, or has attached any debt due to the company, and the company is subsequently wound up, the creditor is not entitled to retain the benefit of the execution or attachment against the liquidator, unless the creditor has completed the execution or attachment before the date of the commencement of the winding up, but —
(a)where any creditor has had notice of a meeting having been called at which a resolution for voluntary winding up is to be proposed, the date on which the creditor so had notice is for the purposes of this section substituted for the date of the commencement of the winding up;
(b)a person, who purchases in good faith under a sale by the bailiff any goods of the company on which an execution has been levied, acquires in all cases a good title to the goods against the liquidator; and
(c)the rights conferred by this subsection on the liquidator may be set aside by the Court in favour of the creditor to such extent and subject to such terms as the Court thinks fit.
(2)  For the purposes of this section —
(a)an execution against goods is completed by seizure and sale;
(b)an attachment of a debt is completed by receipt of the debt; and
(c)an execution against land is completed by sale or, in the case of an equitable interest, by the appointment of a receiver.
(3)  For the purposes of this section and section 207 —
“bailiff” includes any officer charged with the execution of any writ or other process;
“goods” includes all chattels personal.
Informal Consolidation | Amended Act 25 of 2021
Restriction of rights of creditor as to enforcement order or attachment
206.—(1)  Where a creditor has obtained an enforcement order against the goods or land of a company, or has attached any debt due to the company, and the company is subsequently wound up, the creditor is not entitled to retain the benefit of the enforcement order or attachment against the liquidator, unless the creditor has completed the execution of the enforcement order or attachment before the date of the commencement of the winding up, but —
(a)where any creditor has had notice of a meeting having been called at which a resolution for voluntary winding up is to be proposed, the date on which the creditor so had notice is for the purposes of this section substituted for the date of the commencement of the winding up;
(b)a person, who purchases in good faith under a sale by the bailiff any goods of the company on which an enforcement order has been executed, acquires in all cases a good title to the goods against the liquidator; and
[Act 25 of 2021 wef 01/04/2022]
(c)the rights conferred by this subsection on the liquidator may be set aside by the Court in favour of the creditor to such extent and subject to such terms as the Court thinks fit.
[Act 25 of 2021 wef 01/04/2022]
(2)  For the purposes of this section —
(a)an enforcement order against goods is completed by seizure and sale;
[Act 25 of 2021 wef 01/04/2022]
(b)an attachment of a debt is completed by receipt of the debt; and
(c)an enforcement order against land is completed by sale or, in the case of an equitable interest, by the appointment of a receiver.
[Act 25 of 2021 wef 01/04/2022]
(3)  For the purposes of this section and section 207 —
“bailiff” includes any officer charged with the execution of any writ or other process;
“goods” includes all chattels personal.
[Act 25 of 2021 wef 01/04/2022]