Wensley Overseas Limited v Maykent (Pty) Ltd and Others (4542/2014) [2019] ZAWCHC 178 (6 November 2019)

Wensley Overseas Limited v Maykent (Pty) Ltd and Others (4542/2014) [2019] ZAWCHC 178 (6 November 2019)

The Court found that the first variation agreement settled the overdue R3 million and its interest, and that the R20 million was no longer overdue between 1 September 2014 and 1 April 2015, thus no interest was payable for that period. The second variation agreement amended the payment terms for the R20 million,...

Source-derived case information.

Citation
[2019] ZAWCHC 178
Parties
Applicant: Wensley Overseas Limited; Respondent: Maykent (Pty) Ltd
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
6 November 2019
Case Number
4542/2014
Procedural Posture
Review Application / Final Judgment on Application to Set Aside Writ and Declare Interest Computation Method
Outcome
Application granted in part; method of interest computation proposed by respondents dismissed; writ of execution set aside; interest to be recalculated as per judgment; each party to pay its own costs.
Judges
N. Mangcu-Lockwood
Legal Topics
Settlement Agreement Enforcement, Interest Computation, Variation of Contract, Writ of Execution, Contractual Interpretation
Commercial and Corporate Civil Procedure Settlement Agreement Enforcement Interest Computation Variation of Contract Writ of Execution Contractual Interpretation

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Parties

Wensley Overseas Limited

Applicant

Maykent (Pty) Ltd

Respondent

Procedural Posture

Review Application / Final Judgment on Application to Set Aside Writ and Declare Interest Computation Method

Legal Issues

  1. 1 Is there outstanding interest payable by Maykent for the period 1 September 2014 to 1 or 8 April 2015? If so, what is the correct method of computing the interest.
  2. 2 Is there outstanding interest payable by Maykent for the period 1 April 2015 to 12 December 2016? If so, what is the correct method of computing the interest.
  3. 3 Did the email correspondence between the parties’ attorneys constitute variation or amendment of the second variation agreement?

Ratio Decidendi

The Court found that the first variation agreement settled the overdue R3 million and its interest, and that the R20 million was no longer overdue between 1 September 2014 and 1 April 2015, thus no interest was payable for that period. The second variation agreement amended the payment terms for the R20 million, providing for payment in instalments with interest at Standard Bank prime rates from 1 April 2015 on the reducing capital balance. The Court rejected Maykent’s argument that the email correspondence constituted a binding amendment or variation, as it did not comply with the written variation clause and was intended to execute, not alter, the agreement. The method of interest...

Court Disposition

Application granted in part; method of interest computation proposed by respondents dismissed; writ of execution set aside; interest to be recalculated as per judgment; each party to pay its own costs.

Orders

  • The method of computation of interest contained in annexure 'BA5' is dismissed.
  • It is declared that there is no outstanding interest payable by the respondents in respect of the period 1 September 2014 to 1 April 2015.