Umsobomvu Youth Fund v E2BA LE2 and Others (111/2011) [2011] ZAFSHC 182 (10 November 2011)

Umsobomvu Youth Fund v E2BA LE2 and Others (111/2011) [2011] ZAFSHC 182 (10 November 2011)

The applicant established its entitlement to repayment of the loan advanced to the first respondent, as no payments were made and the respondents failed to raise a valid defence. The liability of the second respondent as surety is confirmed by the deed of suretyship. The respondents' arguments regarding the applicant's alleged failure to assist or mentor the business do not constitute a legal defence to the claim for repayment. The applicant's statutory duty is to collect revenue, not to manage the respondent's business. The rule nisi perfecting the notarial bond is confirmed. The amendment to include the third to seventh respondents in the money claim is postponed sine die to allow them...

Citation
[2011] ZAFSHC 182
Parties
Applicant: Umsobomvu Youth Fund; Respondent: E2BA LE2 (PTY) LTD; Respondent: Samuel Morena LehloKa; Respondent: Thabiso Livinstone May; Respondent: Thabo May; Respondent: Lerato Msibi; Respondent: Oganne Shylock Pule; Respondent: Mojau Ramathe
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
10 November 2011
Case Number
111/2011
Procedural Posture
Civil Application / Return Day of Rule Nisi; Application for Repayment and Confirmation of Notarial Bond
Outcome
Application granted in part; rule nisi confirmed; first and second respondents ordered to pay the applicant jointly and severally.
Judges
Kruger
Legal Topics
Loan Agreement Enforcement, Suretyship Liability, Notarial Bond Perfection, Amendment of Pleadings
Commercial and Corporate Civil Procedure Loan Agreement Enforcement Suretyship Liability Notarial Bond Perfection Amendment of Pleadings

Case Brief

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Parties

Umsobomvu Youth Fund

Applicant

E2BA LE2 (PTY) LTD

Respondent

Samuel Morena LehloKa

Respondent

Thabiso Livinstone May

Respondent

Thabo May

Respondent

Lerato Msibi

Respondent

Oganne Shylock Pule

Respondent

Mojau Ramathe

Respondent

Procedural Posture

Civil Application / Return Day of Rule Nisi; Application for Repayment and Confirmation of Notarial Bond

Legal Issues

  1. 1 Whether the applicant is entitled to repayment of the loan advanced to the first respondent.
  2. 2 Whether the second to seventh respondents are liable as sureties under the deed of suretyship.
  3. 3 Whether the rule nisi perfecting the notarial bond should be confirmed.

Ratio Decidendi

The applicant established its entitlement to repayment of the loan advanced to the first respondent, as no payments were made and the respondents failed to raise a valid defence. The liability of the second respondent as surety is confirmed by the deed of suretyship. The respondents' arguments regarding the applicant's alleged failure to assist or mentor the business do not constitute a legal defence to the claim for repayment. The applicant's statutory duty is to collect revenue, not to manage the respondent's business. The rule nisi perfecting the notarial bond is confirmed. The amendment to include the third to seventh respondents in the money claim is postponed sine die to allow them...

Court Disposition

Application granted in part; rule nisi confirmed; first and second respondents ordered to pay the applicant jointly and severally.

Orders

  • The rule nisi granted on 4 August 2011 is confirmed.
  • The first and second respondents are ordered jointly and severally to pay the applicant R2,929,325.00.