The Court held that a newly adopted policy concerning the appointment of insolvency practitioners was unlawful insofar as it fettered the master’s discretion by establishing a rote alphabetical system for the appointment of liquidators.  The exercise of all public power, including policy formulation, must conform with the Constitution and the doctrine of legality.  Rationality is required in the exercise of all public power, including measures adopted under s 9(2) of the Constitution.  The Court held that the master appoints insolvency practitioners and must apply a discretion when making appointments, but the new policy is inconsistent with the Constitution and invalid for the following reasons:

  • It did not relate to the purpose for which the power was given as well as the information available to the functionary exercising the power.
  • It changed a feature of the industry’s regulatory framework that required a proper match between liquidator / trustee and a particular estate.
  • It was unlikely to achieve its objectives.
  • It created a rigid and inflexible regime in which the master effectively became a rubber stamp and was compelled to appoint a designated person by rote from fixed lists arranged alphabetically and on race and gender lines.

Saripa v Minister of Justice [2015] 4 BLLR 329 (HC) per Katz AJ [dated 13.01.2015].