Spar Group Limited v Meadowview Trading 147 CC t/a Meyerton Spar and Tops (2022/013036) [2022] ZAGPJHC 637 (5 September 2022)

Spar Group Limited v Meadowview Trading 147 CC t/a Meyerton Spar and Tops (2022/013036) [2022] ZAGPJHC 637 (5 September 2022)

The applicant is entitled to leave to perfect its security under the two General Notarial Bonds, as the respondent remains indebted and the applicant faces the risk of losing its secured status in the event of liquidation. The court found that the applicant does not have an alternative remedy and that the respondent failed to demonstrate that the terms of the Bonds are unconscionable or contrary to public policy. The discretion to refuse specific performance should only be exercised where another remedy exists, which is not the case here. The applicant has made out a case for the relief sought, and the order is granted as per the draft provided.

Citation
[2022] ZAGPJHC 637
Parties
Applicant: Spar Group Limited; Respondent: Meadowview Trading 147 CC t/a Meyerton Spar and Tops
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
5 September 2022
Case Number
2022/013036
Procedural Posture
Urgent Application / Application for Leave to Perfect Security Under Notarial Bonds
Outcome
Application granted; leave to perfect the Bonds is granted in terms of the draft order marked 'X'.
Judges
Strydom
Legal Topics
Notarial Bond Perfection, Specific Performance, Security Rights, Public Policy, Urgent Interdict
Commercial and Corporate Civil Procedure Notarial Bond Perfection Specific Performance Security Rights Public Policy Urgent Interdict

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Parties

Spar Group Limited

Applicant

Meadowview Trading 147 CC t/a Meyerton Spar and Tops

Respondent

Procedural Posture

Urgent Application / Application for Leave to Perfect Security Under Notarial Bonds

Legal Issues

  1. 1 Whether the applicant is entitled to leave to perfect its security under two General Notarial Bonds.
  2. 2 Whether the court should exercise its discretion to refuse specific performance of the Bonds.
  3. 3 Whether the terms of the Bonds are unconscionable or contrary to public policy.

Ratio Decidendi

The applicant is entitled to leave to perfect its security under the two General Notarial Bonds, as the respondent remains indebted and the applicant faces the risk of losing its secured status in the event of liquidation. The court found that the applicant does not have an alternative remedy and that the respondent failed to demonstrate that the terms of the Bonds are unconscionable or contrary to public policy. The discretion to refuse specific performance should only be exercised where another remedy exists, which is not the case here. The applicant has made out a case for the relief sought, and the order is granted as per the draft provided.

Court Disposition

Application granted; leave to perfect the Bonds is granted in terms of the draft order marked 'X'.

Orders

  • Leave is granted to the applicant to perfect its security under the two General Notarial Bonds registered in its favour.
  • The order is granted in terms of the draft order marked 'X' as provided to the court by the applicant.