Nedbank Limited v Baba (6535/2024) [2025] ZAWCHC 176 (25 April 2025)

Nedbank Limited v Baba (6535/2024) [2025] ZAWCHC 176 (25 April 2025)

The respondent is liable as surety and co-principal debtor for Bestinver's debt under the written agreements. The National Credit Act does not apply to the loan or suretyship agreements due to the size and nature of the transaction. The respondent's explanation for late filing is accepted, but he has failed to present a bona fide defence to the applicant's claim. The funds held in trust by the applicant's attorneys are not for the applicant's benefit and do not extinguish the debt. The applicant is entitled to judgment and is not required to await the outcome of related litigation or payment of dividends from liquidators. The respondent's request for postponement is an indulgence, not a...

Citation
[2025] ZAWCHC 176
Parties
Applicant: Nedbank Limited; Respondent: Moussa Baba
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
25 April 2025
Case Number
6535/2024
Procedural Posture
Civil Application / Opposed Motion for Summary Judgment on Suretyship
Outcome
Judgment granted in favour of the applicant against the respondent for payment of R 15 000 000.00 plus interest and costs.
Judges
E Nel
Legal Topics
Suretyship Liability, Certificate of Balance, Condonation of Late Filing, Large Agreement Exclusion Nca
Banking and Finance Civil Procedure Suretyship Liability Certificate of Balance Condonation of Late Filing Large Agreement Exclusion Nca

Case Brief

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Parties

Nedbank Limited

Applicant

Moussa Baba

Respondent

Procedural Posture

Civil Application / Opposed Motion for Summary Judgment on Suretyship

Legal Issues

  1. 1 Whether the respondent is liable as surety and co-principal debtor for the debts of Bestinver Company South Africa (Pty) Ltd under the loan agreement.
  2. 2 Whether the respondent's late filing of opposing papers should be condoned.
  3. 3 Whether pending litigation regarding the sale of immovable property and funds held in trust justifies postponement or dismissal of the applicant's claim.

Ratio Decidendi

The respondent is liable as surety and co-principal debtor for Bestinver's debt under the written agreements. The National Credit Act does not apply to the loan or suretyship agreements due to the size and nature of the transaction. The respondent's explanation for late filing is accepted, but he has failed to present a bona fide defence to the applicant's claim. The funds held in trust by the applicant's attorneys are not for the applicant's benefit and do not extinguish the debt. The applicant is entitled to judgment and is not required to await the outcome of related litigation or payment of dividends from liquidators. The respondent's request for postponement is an indulgence, not a...

Court Disposition

Judgment granted in favour of the applicant against the respondent for payment of R 15 000 000.00 plus interest and costs.

Orders

  • The respondent is ordered to pay the applicant the sum of R 15 000 000.00 together with interest at the prevailing prime interest rate less 4.75% per annum, calculated daily and compounded monthly from 15 February 2024 to date of final payment, both days inclusive.
  • The respondent is ordered to pay the applicant's costs of suit on the attorney and client scale.