Bhekintsha Business Enterprise CC v Absa Bank Ltd (NCT/61/2009/141(1)(P)) [2010] ZANCT 34 (12 March 2010)

Bhekintsha Business Enterprise CC v Absa Bank Ltd (NCT/61/2009/141(1)(P)) [2010] ZANCT 34 (12 March 2010)

The Tribunal found that it does not have jurisdiction to adjudicate complaints relating to credit agreements entered into prior to the commencement of the National Credit Act. The applicant's complaints arose from a vehicle lease agreement concluded before the relevant provisions of the NCA became effective. The Tribunal's powers are strictly limited to those conferred by statute, and only a court may declare a contract void under section 89(5) of the Act. The transitional provisions of the NCA do not apply retrospectively to the applicant's agreement, as the predecessor legislation did not contain equivalent provisions. Furthermore, the complaints against the National Credit Regulator...

Citation
[2010] ZANCT 34
Parties
Applicant: Bhekintsha Business Enterprise CC; Respondent: Absa Bank Limited
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
12 March 2010
Case Number
NCT/61/2009/141(1)(P)
Procedural Posture
Review Application / Jurisdictional Ruling After Application and Submissions
Outcome
Application dismissed for lack of jurisdiction.
Judges
FK Manamela, N Sephoti, X May
Legal Topics
National Credit Act, Jurisdiction of Tribunal, Credit Agreement Act, Prohibited Conduct, Administrative Fine
Banking and Finance Civil Procedure National Credit Act Jurisdiction of Tribunal Credit Agreement Act Prohibited Conduct Administrative Fine

Case Brief

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Parties

Bhekintsha Business Enterprise CC

Applicant

Absa Bank Limited

Respondent

Procedural Posture

Review Application / Jurisdictional Ruling After Application and Submissions

Legal Issues

  1. 1 Does the National Consumer Tribunal have jurisdiction to adjudicate complaints arising from credit agreements entered into before the commencement of the National Credit Act?
  2. 2 Can the Tribunal declare a contract void or pronounce on its legality under section 89(5) of the National Credit Act?
  3. 3 Are the complaints against the National Credit Regulator and Ombudsman for Banking Services meritorious and within the Tribunal's powers?

Ratio Decidendi

The Tribunal found that it does not have jurisdiction to adjudicate complaints relating to credit agreements entered into prior to the commencement of the National Credit Act. The applicant's complaints arose from a vehicle lease agreement concluded before the relevant provisions of the NCA became effective. The Tribunal's powers are strictly limited to those conferred by statute, and only a court may declare a contract void under section 89(5) of the Act. The transitional provisions of the NCA do not apply retrospectively to the applicant's agreement, as the predecessor legislation did not contain equivalent provisions. Furthermore, the complaints against the National Credit Regulator...

Court Disposition

Application dismissed for lack of jurisdiction.

Orders

  • The Tribunal has no jurisdiction to pronounce on the legality of the contract; this issue may be referred to a court.
  • The Tribunal does not have jurisdiction to adjudicate complaints relating to the conduct of ABSA Bank under the Credit Agreements Act, 75 of 1980.