Appointment of Trustee; Effects of Sequestration

Section 25

Estate to remain vested in trustee until composition or rehabilitation

(1) The estate of an insolvent shall remain vested in the trustee until the insolvent is re-invested therewith pursuant to a composition as in section 119 provided, or until the rehabilitation of the insolvent in terms of section 127 or 127A: Provided that, subject to the provisions of subsection (3), any property which immediately before the rehabilitation is vested in the trustee shall remain vested in him after the rehabilitation for the purposes of realization and distribution.

[Sub-s. (1) substituted by s. 2 of Act No. 6 of 1972 and by s. 4 (a) of Act No. 122 of 1993.]


(2) When a trustee has vacated his office or has been removed from office or has resigned or died the estate shall vest in the remaining trustee, if any; otherwise it shall vest in the Master until another trustee has been appointed.


(3) After the expiry of every caveat entered in terms of section 17 (3), 18B or 127A in respect of the property of an insolvent any act of registration in respect of such property brought about by him shall be valid in spite of the fact that the property formed part of his insolvent estate.

[Sub-s. (3) added by s. 4 (b) of Act No. 122 of 1993.]


(4) If a person who is or was insolvent unlawfully disposes of immovable property or a right to immovable property which forms part of his insolvent estate, the trustee may, notwithstanding the provisions of subsection (3), recover the value of the property or right so disposed of—

(a)    from the insolvent or former insolvent;

(b)    from any person who, knowing such property or right to be part of the insolvent estate, acquired such property or right from the insolvent or former insolvent; or

(c)    from any person who acquired such property or right from the insolvent or former insolvent without giving sufficient value in return, in which case the amount so recovered shall be the difference between the value of the property or right and any value given in return.

[Sub-s. (4) added by s. 4 (b) of Act No. 122 of 1993.]