LLR Properties (Pty) Limited and Another v Sasfin Bank Ltd and Another (A5064/2021; 10763/2020) [2022] ZAGPJHC 408 (14 June 2022)

LLR Properties (Pty) Limited and Another v Sasfin Bank Ltd and Another (A5064/2021; 10763/2020) [2022] ZAGPJHC 408 (14 June 2022)

The appeal succeeded because service of summons was not properly effected at the correct domicilium addresses for the appellants, constituting a procedural defect under rule 42(1)(a) and rendering the default judgment erroneously granted. Furthermore, the appellants established a prima facie bona fide defence by denying the authenticity of the signatures on the agreements and alleging fraud. The court held that at the rescission stage, it is not necessary to fully evaluate the merits of the defence, only to determine if a triable issue exists. The respondents failed to prove that the appellants were in wilful default or that their defence was unsustainable at law. Consequently, the...

Citation
[2022] ZAGPJHC 408
Parties
Appellant: LLR Properties (Pty) Limited; Appellant: Ramatshila–Mugeri, Lesley Lufuno; Respondent: Sasfin Bank Limited; Respondent: Sunlyn (Pty) Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
14 June 2022
Case Number
A5064/2021; 10763/2020
Procedural Posture
Civil Appeal / Full Court Appeal From Dismissal of Rescission Application
Outcome
Appeal upheld; default judgment rescinded; costs awarded to appellants including costs of two counsel.
Judges
Dippenaar, Yacoob, Manoim
Legal Topics
Rescission of Judgment, Service of Process, Default Judgment, Fraudulent Signature, Bona Fide Defence
Civil Procedure Commercial and Corporate Rescission of Judgment Service of Process Default Judgment Fraudulent Signature Bona Fide Defence

Case Brief

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Parties

LLR Properties (Pty) Limited

Appellant

Ramatshila–Mugeri, Lesley Lufuno

Appellant

Sasfin Bank Limited

Respondent

Sunlyn (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Full Court Appeal From Dismissal of Rescission Application

Legal Issues

  1. 1 Whether service of summons was validly effected at the correct domicilium addresses for the appellants.
  2. 2 Whether the default judgment was erroneously granted due to procedural defects in service.
  3. 3 Whether the appellants established a bona fide defence to the respondents' claims under rule 31(2)(b).

Ratio Decidendi

The appeal succeeded because service of summons was not properly effected at the correct domicilium addresses for the appellants, constituting a procedural defect under rule 42(1)(a) and rendering the default judgment erroneously granted. Furthermore, the appellants established a prima facie bona fide defence by denying the authenticity of the signatures on the agreements and alleging fraud. The court held that at the rescission stage, it is not necessary to fully evaluate the merits of the defence, only to determine if a triable issue exists. The respondents failed to prove that the appellants were in wilful default or that their defence was unsustainable at law. Consequently, the...

Court Disposition

Appeal upheld; default judgment rescinded; costs awarded to appellants including costs of two counsel.

Orders

  • The appeal is upheld with costs, including the costs of the application for leave to appeal and the costs of two counsel, where employed.
  • The order of the court a quo is set aside and replaced with: (1) The default judgment granted on 19 August 2020 is rescinded and set aside; (2) A notice of intention to defend is to be delivered within ten days of date of this order; (3) The respondents are directed to pay the costs of the application.