Land en Landbou Bank van Suid Afrika v Rosseau NO (312/91) [1992] ZASCA 222; 1993 (1) SA 513 (AD); (27 November 1992)

Land en Landbou Bank van Suid Afrika v Rosseau NO (312/91) [1992] ZASCA 222; 1993 (1) SA 513 (AD); (27 November 1992)

The Supreme Court of Appeal held that section 63(1) of the Land Bank Act only authorizes the Bank to seize and sell assets of a company that are specially mortgaged to the Bank. The plain wording of the section, both in Afrikaans and English, restricts the Bank's right of parate execution to such assets. The court...

Source-derived case information.

Citation
[1992] ZASCA 222
Parties
Appellant: Land- en Landboubank van Suid-Afrika; Respondent: Jean Jacques Rosseau NO
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Case Number
312/91
Procedural Posture
Civil Appeal / Appeal From the Northern Cape Division, Following a Motion Application and Provisional Liquidation Order.
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Kumleben, Hoexter, F H Grosskopf, Van den Heever, Van Coller
Legal Topics
Statutory Interpretation, Parate Execution, Special Mortgage, Liquidation Procedure
Banking and Finance Civil Procedure Statutory Interpretation Parate Execution Special Mortgage Liquidation Procedure

Source-derived case record

Summary, issues, holding and outcome

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Parties

Land- en Landboubank van Suid-Afrika

Appellant

Jean Jacques Rosseau NO

Respondent

Procedural Posture

Civil Appeal / Appeal From the Northern Cape Division, Following a Motion Application and Provisional Liquidation Order.

  1. 1 Whether section 63(1) of the Land Bank Act permits the Bank to seize all assets of a company in the absence of a special mortgage.
  2. 2 Whether the Bank's right of parate execution applies to assets not specially mortgaged to it.
  3. 3 Interpretation of the phrase 'spesiaal aan die bank verhipotekeer is' in section 63(1).

Ratio Decidendi

The Supreme Court of Appeal held that section 63(1) of the Land Bank Act only authorizes the Bank to seize and sell assets of a company that are specially mortgaged to the Bank. The plain wording of the section, both in Afrikaans and English, restricts the Bank's right of parate execution to such assets. The court rejected the Bank's argument that the statute should be interpreted more broadly, finding no justification in the Act for disregarding the explicit limitation. The court emphasized that the legislature's intention must be derived from the language of the statute, and that the absence of the phrase 'al is dit nie spesiaal aan die bank verhipotekeer nie' in section 63(1), which...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two advocates.