13/04/2026
Considering Using Sequestration to Recover Levies? Think Again
Body corporates face a familiar problem. Owners fall into arrears. Levies go unpaid. Legal costs mount. The temptation is to reach for the most forceful remedy available.
Sequestration may seem like that remedy. If an owner will not pay, why not have them declared insolvent?
A recent Gauteng High Court judgment offers a clear warning. A body corporate sought the sequestration of a unit owner for levy arrears exceeding R1.4 million. With such a substantial debt, the body corporate’s frustration was understandable. But the application failed.
The court held that the body corporate had not met the statutory requirements under the Insolvency Act. In particular, it had not shown that sequestration would be to the advantage of creditors. The court also noted that the body corporate had other ex*****on remedies available and emphasised that sequestration proceedings are not intended to function as a debt-collection mechanism.
Read more:
Unpaid levies can leave body corporates out of pocket and out of patience. When conventional debt recovery feels too slow, sequestration may seem like the obvious next step. But a recent High Court judgment is a reminder that sequestration is not a debt-collection shortcut. The court refused an ap...
