In Ex parte Van Heerden, an important case in South African insolvency law, “It is necessary,” the court held, “to consider whether the surplus of the proceeds of the immovable property, after satisfying the mortgage bonds which have a preferential claim thereon, can be considered as ‘free residue’ within the meaning of that expression as used in the Act.” The definition of “free residue” must be taken to refer to that portion of an estate under sequestration when liquidated, which is not subject to any right of preference. [1]
1 relation: South African insolvency law.
Insolvency in South African law refers to a status of diminished legal capacity (capitis diminutio) imposed by the courts on persons who are unable to pay their debts, or (which amounts to the same thing) whose liabilities exceed their assets.
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References
[1] https://en.wikipedia.org/wiki/Ex_parte_Van_Heerden
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