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South Africa Ruling

North West High Court, Mafikeng

Botes t/a JHLS Botes Vervoer v Standard Bank of South Africa Limited (M85/15) [2015] ZANWHC 72 (30 October 2015)

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01

Holding and result

The court found that the issue of whether a further section 129 notice is required after a debtor defaults, is served with a section 129 notice, enters into a restructuring agreement, and then defaults again, is a matter of importance and not settled in law. Given the reasonable possibility that another court may reach a different conclusion, leave to appeal should be granted to the Supreme Court of Appeal. The order confirming cancellation of the installment sale agreements and authorizing repossession of the vehicles is amended to exclude agreement 'E', clarifying the scope of the order.

Court disposition

Leave to appeal granted to the Supreme Court of Appeal against the whole judgment delivered on 3 September 2015. Paragraph 1 of the previous order is amended to exclude agreement 'E'. Costs of the application for leave to appeal are costs in the appeal.

Orders

  • Paragraph 1 of the order granted on 27 September 2015 is amended by deleting 'B-J' and replacing it with 'B to D and F to J'.
  • The respondent (J H L S Botes t/a JHLS Botes Vervoer) is granted leave to appeal to the Supreme Court of Appeal against the whole of the judgment delivered on 3 September 2015.
  • Costs of the application for leave to appeal shall be costs in the appeal.

02

Material facts

Parties

Johannes Hendrikus Lambertus Stepahus Botes t/a JHLS Botes Vervoer

Applicant Counsel: Adv Viljoen

The Standard Bank of South Africa Limited

Respondent Counsel: Adv Cowley

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Judgment Confirming Cancellation of Installment Sale Agreements.

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends that after defaulting and receiving a section 129 notice, he entered into a restructuring agreement with the creditor. Upon defaulting again, he argues that he is entitled to a further section 129 notice before the creditor may lawfully cancel the agreement. The applicant maintains that the absence of a second notice constitutes procedural unfairness and that another court may reasonably find in his favour.
Respondent
The respondent asserts that the debtor was properly served with a section 129 notice after the initial default and that the subsequent restructuring agreement did not create an obligation to serve a further section 129 notice upon a second default. The respondent maintains that the agreements were validly cancelled and the vehicles lawfully repossessed, and that the judgment should stand.

05

Court’s reasoning

  1. 01

    National Credit Act 34 of 2005

    A creditor is required to serve a section 129 notice before cancelling a credit agreement upon default, but the necessity of a further notice after a restructuring agreement and subsequent default is debatable.

  2. 02

    S v Smith 2012 (1) SACR 567 (SCA)

    Leave to appeal should be granted where there is a reasonable possibility that another court may reach a different conclusion.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the issue of whether a further section 129 notice is required after a debtor defaults, is served with a section 129 notice, enters into a restructuring agreement, and then defaults again, is a matter of importance and not settled in law. Given the reasonable possibility that another court may reach a different conclusion, leave to appeal should be granted to the Supreme Court of Appeal. The order confirming cancellation of the installment sale agreements and authorizing repossession of the vehicles is amended to exclude agreement 'E', clarifying the scope of the order.

Obiter and limits

  • The question of repeated section 129 notices in the context of restructuring agreements is likely to recur and merits appellate consideration.
  • Both counsel agreed that the matter is suitable for determination by the Supreme Court of Appeal.

Court disposition

Leave to appeal granted to the Supreme Court of Appeal against the whole judgment delivered on 3 September 2015. Paragraph 1 of the previous order is amended to exclude agreement 'E'. Costs of the application for leave to appeal are costs in the appeal.

  • Paragraph 1 of the order granted on 27 September 2015 is amended by deleting 'B-J' and replacing it with 'B to D and F to J'.
  • The respondent (J H L S Botes t/a JHLS Botes Vervoer) is granted leave to appeal to the Supreme Court of Appeal against the whole of the judgment delivered on 3 September 2015.
  • Costs of the application for leave to appeal shall be costs in the appeal.

Source and reliance status

North West High Court, Mafikeng

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Judgment reading view

Judgment text

The complete available source text.

Source document

North West High Court, Mafikeng

Ruling

[2015] ZANWHC 72

IN THE HIGH COURT OF SOUTH AFRICA

NORTH WEST PROVINCIAL DIVISION, MAHIKENG

CASE NO: M85/15

In the matter between:

JOHANNES

HENDRIKUS LAMBERTUS STEPAHUS BOTES

T/A

JHLS BOTES VERVOER

APPLICANT

and

THE STANDARD BANK OF SOUTH AFRICA

LIMITED RESPONDENT

JUDGMENT (LEAVE TO APPEAL)

Landman J:

Introduction

[1] Mr J H L S Botes trading as JHLS Botes Vervoer, the respondent in the main action brought by the Standard Bank of South Africa Ltd, the applicant in the main action, seeks leave to appeal against my order confirming the cancellation of eight installment sale agreements and the authorization for the Sheriff to seize and handover eight vehicles being the subject of the agreements. Originally the notice of motion related to nine such agreements but agreement marked ‘E’

was to be left out of account. Paragraph 1 of the order was framed too widely and included “E” but the absence of “E”

in paragraph 2 of the order and paragraph 1 of my judgment makes it clear that “E” was not and is not a subject of the order. I therefore amend paragraph 1 of the order accordingly.

[2] The grounds upon which leave to appeal is sought has been set out in the application for leave to appeal. Essentially the question is whether another court may reasonably come to the conclusion that a debtor who has defaulted and not complied with his obligations in terms of instalment sales agreements who was served with a section 129 notice and with whom the creditor entered into a ‘restructuring agreement’ and who gain defaulted in his payments, is entitled

to a further section 129 notice before the creditor may cancel the agreement?

[3] In the light of the arguments advanced by both counsel this issue is clearly one of some importance and deserves the attention of a court of appeal as there is a reasonable possibility that it may reach a different conclusion to that which I reached. The point is a succinct one and merits the attention of the Supreme Court of Appeal. Both counsel agreed (regardless of the notice of application) that should I grant leave to appeal, it should be the Supreme Court of Appeal.

Order

[4] In the circumstances I make the following order:

1. Paragraph 1 of the order granted on 27 September 2015 is amended by deleteing “B-J” and replacing it with: ‘B to D and F to J’.

2. The respondent (J H L S Botes trading as JHLS Botes Vervoer) is granted leave to appeal to the Supreme Court of Appeal against the whole of my judgment delivered on 3 September 2015.

3. The costs of the application for leave to appeal shall be costs in the appeal.

A A Landman

Judge of the High Court

Appearances

Date of hearing:

30 October2015

Date of Judgment:

5 October 2015

For the Applicant:

Adv Cowley instructed by Maree & Maree Attorneys

For the Respondent:

Adv Viljoen instructed by Van Rooyen Tlhapi & Wessels Inc

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

S v Smith 2012 (1) SACR 567 (SCA)

Case cited

National Credit Act 34 of 2005

Legislation

Legislation referenced in the available case record.

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