Administrateur, Transvaal v J D Van Niekerk & Genote Bk (730/92) [1994] ZASCA 128; 1995 (2) SA 241 (AD); (23 September 1994)

Administrateur, Transvaal v J D Van Niekerk & Genote Bk (730/92) [1994] ZASCA 128; 1995 (2) SA 241 (AD); (23 September 1994)

The court held that interest on a costs order does not run from the date the order is granted but only from the date the costs are taxed and thus become payable. Section 2 of the Prescribed Rate of Interest Act 55 of 1975 requires that interest runs from the date the judgment debt is 'payable', which, in the case of costs, is only after taxation. The common law position remains unchanged by the Act, as moratory interest is only payable on debts whose amounts are certain and ascertainable. Until costs are taxed, the debtor cannot know the extent of the obligation and is not in mora. The respondent's reliance on English authorities and arguments for fairness do not override the clear...

Citation
[1994] ZASCA 128
Parties
Appellant: Administrateur, Transvaal; Respondent: J D Van Niekerk & Genote BK
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
23 September 1994
Case Number
730/92
Procedural Posture
Civil Appeal / Appeal From Witwatersrand Local Division
Outcome
Appeal upheld; order of the court a quo set aside and replaced with an order dismissing the application with costs, including costs of two counsel.
Judges
Hefer, Nestadt, Vivier, Kumleben, Harms
Legal Topics
Costs Award, Interest on Costs, Prescribed Rate of Interest Act, Party and Party Costs
Civil Procedure Costs Award Interest on Costs Prescribed Rate of Interest Act Party and Party Costs

Case Brief

Summary, issues, holding and outcome

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Parties

Administrateur, Transvaal

Appellant

J D Van Niekerk & Genote BK

Respondent

Procedural Posture

Civil Appeal / Appeal From Witwatersrand Local Division

Legal Issues

  1. 1 Whether interest on a costs order runs from the date the order is granted or from the date of taxation.
  2. 2 Whether the Prescribed Rate of Interest Act 55 of 1975 alters the common law position regarding interest on untaxed costs.
  3. 3 Whether the respondent is entitled to interest on costs prior to taxation.

Ratio Decidendi

The court held that interest on a costs order does not run from the date the order is granted but only from the date the costs are taxed and thus become payable. Section 2 of the Prescribed Rate of Interest Act 55 of 1975 requires that interest runs from the date the judgment debt is 'payable', which, in the case of costs, is only after taxation. The common law position remains unchanged by the Act, as moratory interest is only payable on debts whose amounts are certain and ascertainable. Until costs are taxed, the debtor cannot know the extent of the obligation and is not in mora. The respondent's reliance on English authorities and arguments for fairness do not override the clear...

Court Disposition

Appeal upheld; order of the court a quo set aside and replaced with an order dismissing the application with costs, including costs of two counsel.

Orders

  • The appeal is upheld with costs, including the costs of two advocates.
  • The order of the court a quo is set aside and replaced with an order dismissing the application with costs, including the costs of two advocates.