Mr Nicolaas Johannes Swart, a farmer whose estate was sequestrated in 2005, sued the trustees of his insolvent estate and the Master of the High Court for damages under section 82(8) of the Insolvency Act 24 of 1936. Before their formal appointment, one trustee conditionally accepted offers to purchase immovable property belonging to the insolvent estate, subject to the Master’s consent. After their appointment as provisional trustees, the trustees applied for and obtained the Master’s authorisation under section 80bis of the Act to sell the properties prior to the second meeting of creditors. The properties were transferred to the purchaser, and the sale was later approved by creditors. Mr Swart alleged that the trustees lacked authority at the time of acceptance, failed to comply with section 82(1), and caused him loss by selling the properties at an undervalue.
Condonation for the late filing was granted, but leave to appeal was refused with costs.
The case affirms the principle that administrative acts, including authorisations by the Master of the High Court, remain legally effective until set aside on review. It clarifies the interaction between sections 80bis and 82 of the Insolvency Act, confirming that sales authorised by the Master prior to the second meeting of creditors fall outside section 82. The judgment reinforces limits on raising new constitutional challenges at the apex court and underscores the importance of proper administrative-law review procedures.