Aussenkehr Farms (Pty) Ltd v Trio Transport CC (499/2000) [2002] ZASCA 28; [2002] 3 All SA 309 (A); 2002 (4) SA 483 (SCA) (28 March 2002)

Aussenkehr Farms (Pty) Ltd v Trio Transport CC (499/2000) [2002] ZASCA 28; [2002] 3 All SA 309 (A); 2002 (4) SA 483 (SCA) (28 March 2002)

The Supreme Court of Appeal held that the cession in securitatem debiti was intended to secure only the overdraft facility. Upon extinction of the overdraft, the cession terminated by mutual agreement between the bank and the plaintiff, and the rights against debtors revested in the plaintiff. The court found that the defendant's acknowledgment of liability and request for extension of time to pay interrupted prescription, and that the prescriptive period had not run its course by the time the plaintiff's claim was amended. The defendant could not rely on the written terms of the cession to challenge its termination, as both parties to the cession agreed on its meaning and application....

Citation
[2002] ZASCA 28
Parties
Appellant: Aussenkehr Farms (Pty) Ltd; Respondent: Trio Transport CC
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 March 2002
Case Number
499/2000
Procedural Posture
Civil Appeal / Appeal From Cape High Court Judgment
Outcome
Appeal dismissed with costs.
Judges
Smalberger, Marais, Navsa, Mpati, Lewis
Legal Topics
Cession in Securitatem Debiti, Locus Standi, Interruption of Prescription, Termination of Cession
Commercial and Corporate Civil Procedure Cession in Securitatem Debiti Locus Standi Interruption of Prescription Termination of Cession

Case Brief

Summary, issues, holding and outcome

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Parties

Aussenkehr Farms (Pty) Ltd

Appellant

Trio Transport CC

Respondent

Procedural Posture

Civil Appeal / Appeal From Cape High Court Judgment

Legal Issues

  1. 1 Whether the cession in securitatem debiti terminated upon extinction of the overdraft facility.
  2. 2 Whether the plaintiff had locus standi to claim payment from the debtor prior to termination of the cession.
  3. 3 Whether prescription of the debt was interrupted by the debtor's acknowledgment of liability and request for extension of time to pay.

Ratio Decidendi

The Supreme Court of Appeal held that the cession in securitatem debiti was intended to secure only the overdraft facility. Upon extinction of the overdraft, the cession terminated by mutual agreement between the bank and the plaintiff, and the rights against debtors revested in the plaintiff. The court found that the defendant's acknowledgment of liability and request for extension of time to pay interrupted prescription, and that the prescriptive period had not run its course by the time the plaintiff's claim was amended. The defendant could not rely on the written terms of the cession to challenge its termination, as both parties to the cession agreed on its meaning and application....

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.