Marcus Farming CC and Others v Land and Agricultural Development Bank of South Africa (A222/2018) [2020] ZAGPPHC 537 (19 August 2020)

Marcus Farming CC and Others v Land and Agricultural Development Bank of South Africa (A222/2018) [2020] ZAGPPHC 537 (19 August 2020)

The court held that the National Credit Act does not apply to large credit agreements concluded by juristic persons, nor to the associated deeds of suretyship. The defendants failed to raise any factual defence of merit against the summary judgment, particularly regarding the amount claimed, as they did not provide evidence to challenge the certificate of indebtedness. The appeal was dismissed as the court a quo correctly found no valid defence had been raised.

Citation
[2020] ZAGPPHC 537
Parties
Appellant: Marcus M Farming CC; Appellant: Kgabo Virginia Masenya; Appellant: Matotoo Lydia Masenya; Appellant: Pauline Mphefo Ngoetsana; Respondent: Lesetja Solomon Masenya; Respondent: Tlou Julia Masenya; Respondent: Land and Agricultural Development Bank of South Africa
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
19 August 2020
Case Number
A222/2018
Procedural Posture
Civil Appeal / Appeal Against Summary Judgment
Outcome
Appeal dismissed with costs.
Judges
CG Lamont, N Kollapen
Legal Topics
National Credit Act, Suretyship, Summary Judgment, Mortgage Bond, Reckless Credit, Prima Facie Proof
Banking and Finance Civil Procedure National Credit Act Suretyship Summary Judgment Mortgage Bond Reckless Credit Prima Facie Proof

Case Brief

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Parties

Marcus M Farming CC

Appellant

Kgabo Virginia Masenya

Appellant

Matotoo Lydia Masenya

Appellant

Pauline Mphefo Ngoetsana

Appellant

Lesetja Solomon Masenya

Respondent

Tlou Julia Masenya

Respondent

Land and Agricultural Development Bank of South Africa

Respondent

Procedural Posture

Civil Appeal / Appeal Against Summary Judgment

Legal Issues

  1. 1 Whether the National Credit Act applies to the loan and suretyship agreements in question.
  2. 2 Whether the defendants raised a valid defence to summary judgment.
  3. 3 Whether the amount claimed by the plaintiff was incorrect or disputed on a factual basis.

Ratio Decidendi

The court held that the National Credit Act does not apply to large credit agreements concluded by juristic persons, nor to the associated deeds of suretyship. The defendants failed to raise any factual defence of merit against the summary judgment, particularly regarding the amount claimed, as they did not provide evidence to challenge the certificate of indebtedness. The appeal was dismissed as the court a quo correctly found no valid defence had been raised.

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.