Narasimooloo v Nedbank Limited and Others (12867/2017) [2023] ZAKZDHC 84 (3 November 2023)

Narasimooloo v Nedbank Limited and Others (12867/2017) [2023] ZAKZDHC 84 (3 November 2023)

The court found that the barring order issued by Balton J, which prevented the third respondent from instituting any action after 31 October 2022, created the necessary certainty for the first respondent to be satisfied that there is no longer any risk of a claim. As no action was instituted by the BRP and the business rescue proceedings were not finalised, the conditions for retaining the security no longer exist. The court held that the applicant is entitled to the cancellation of the security cessions and the reversion of ownership of the policies. The court declined to award punitive costs, noting that the matter is commercial in nature and that costs incurred after 16 November 2021...

Citation
[2023] ZAKZDHC 84
Parties
Applicant: Govindarajaloo Narasimooloo; Respondent: Nedbank Limited; Respondent: Liberty Life; Respondent: A Vengadesan N.O.
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
3 November 2023
Case Number
12867/2017
Procedural Posture
Civil Application / Final Determination After Supplementary Affidavits and Prior Adjournment
Outcome
Application granted. Security cessions cancelled. Ownership of policies reverts to applicant. Each party to pay its own costs incurred after 16 November 2021.
Judges
G M Harrison
Legal Topics
Security Cession, Business Rescue, Insurance Policy Cession, Declaratory Relief
Commercial and Corporate Civil Procedure Security Cession Business Rescue Insurance Policy Cession Declaratory Relief

Case Brief

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Parties

Govindarajaloo Narasimooloo

Applicant

Nedbank Limited

Respondent

Liberty Life

Respondent

A Vengadesan N.O.

Respondent

Procedural Posture

Civil Application / Final Determination After Supplementary Affidavits and Prior Adjournment

Legal Issues

  1. 1 Whether the security cessions granted by the applicant in favour of the first respondent in respect of two insurance policies should be cancelled.
  2. 2 Whether the applicant is entitled to relief following the barring of the third respondent from instituting action after 31 October 2022.
  3. 3 Whether the first respondent is justified in retaining security given the absence of any further claims or jeopardy.

Ratio Decidendi

The court found that the barring order issued by Balton J, which prevented the third respondent from instituting any action after 31 October 2022, created the necessary certainty for the first respondent to be satisfied that there is no longer any risk of a claim. As no action was instituted by the BRP and the business rescue proceedings were not finalised, the conditions for retaining the security no longer exist. The court held that the applicant is entitled to the cancellation of the security cessions and the reversion of ownership of the policies. The court declined to award punitive costs, noting that the matter is commercial in nature and that costs incurred after 16 November 2021...

Court Disposition

Application granted. Security cessions cancelled. Ownership of policies reverts to applicant. Each party to pay its own costs incurred after 16 November 2021.

Orders

  • The security cessions granted by the applicant in favour of the first respondent in respect of policies 15834567000 and 15834927000 are declared to be cancelled.
  • The second respondent is directed to amend its record to reflect that the ownership of the policies has reverted to the applicant.