South Africa Case Law

Exxaro Coal Mpumalanga (Pty) Ltd v TDS Projects Construction and Newrak Mining JV (Pty) Ltd and Another (169/2021)

Exxaro Coal Mpumalanga (Pty) Ltd v TDS Projects Construction and Newrak Mining JV (Pty) Ltd and Another (169/2021) [2022] ZASCA 76 (27 May 2022)

Court

Supreme Court of Appeal

Case number

169/2021

Judges

Schippers, Nicholls, Gorven, Mabindla-Boqwana, Meyer

The SCA held that TDS failed to justify an interdict stopping payment under a demand guarantee, because no injury was proved and a remedy was available.

• Demand Guarantee
• Interdict
• Performance Guarantee
• Banker Customer Relationship
• Final Interdict Requirements
• Demand-guarantee

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017)

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017) [2018] ZAGPPHC 6 (12 March 2018)

Court

North Gauteng High Court, Pretoria

Case number

52590/2017

Judge

N Mavundla

The court dismissed an urgent bid to stop Bank of Baroda from closing its South African banking operations and found no contempt of the earlier order.

• Interim Interdict
• Banker Customer Relationship
• Contractual Termination
• Contempt Of Court
• Constitutional Right To Trade
• Balance Of Convenience

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017)

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017) [2017] ZAGPPHC 639 (9 October 2017)

Court

North Gauteng High Court, Pretoria

Case number

52590/2017

Judge

Makgoka

The court found that the applicants had established a prima facie right to reasonable notice before termination of their banking relationships, and that the bank's notices may not have afforded sufficient time under the circumstances. The applicants demonstrated that closure of their accounts would cause irreparable harm to their businesses and employees, while the bank's claim of reputational harm was speculative and unsupported by concrete evidence. The balance of convenience favoured the applicants, given the potential impact on thousands of workers and the absence of alternative remedies.…

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• Banker Customer Relationship
• Interim Interdict
• Reasonable Notice
• Public Policy In Contract
• Reputational Harm
• Urgent Application Procedure

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017)

Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017) [2017] ZAGPPHC 608; 2018 (1) SA 562 (GP) (21 September 2017)

Court

North Gauteng High Court, Pretoria

Case number

52590/2017

Judge

Fabricius

The court held that there is no recognized cause of action for an 'interim-interim' interdict outside the established requirements for interim interdicts. The applicants failed to plead or establish a prima facie right to the relief sought, did not demonstrate that the bank's termination notices were invalid or that reasonable notice was lacking, and did not show irreparable harm or absence of alternative remedies. The contractual terms expressly permitted termination and calling up of loans at the bank's discretion. The bank's decision was justified by reputational, regulatory, and complianc…

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• Banker Customer Relationship
• Interim Interdict
• Reasonable Notice
• Contractual Termination
• Public Policy In Contract
• Money Laundering Compliance

Standard Bank of South Africa Ltd v Mokoena (A59/2015)

Standard Bank of South Africa Ltd v Mokoena (A59/2015) [2016] ZAFSHC 69 (12 May 2016)

Court

Free State High Court, Bloemfontein

Case number

A59/2015

Judges

Daffue, Van Zyl, Reinders

The High Court upheld a bank’s appeal, finding the respondent failed to prove a R600,000 cash payment and that the overdrawn account claim was made out.

• Banker Customer Relationship
• Onus Of Proof
• Proof Of Payment
• Unauthorised Transfer
• Reversal Of Entry
• Banker-customer-relationship

Duro Pressings (Pty) Ltd (In Liquidation) and Others v Mercantile Bank Limited (11588/2015)

Duro Pressings (Pty) Ltd (In Liquidation) and Others v Mercantile Bank Limited (11588/2015) [2016] ZAGPJHC 147 (21 April 2016)

Court

South Gauteng High Court, Johannesburg

Case number

11588/2015

Judge

Keightley

The court held that post-liquidation receipts paid into the bank account were proceeds of pre-liquidation sales and not part of the insolvent estate.

• Banker Customer Relationship
• Concursus Creditorum
• Perfection Of Security
• Sale Of Secured Assets
• Liquidator Costs
• De Bonis Propriis Orders

Lyttleton Auto Body CC and Others v ABSA Bank Limited (70894/14)

Lyttleton Auto Body CC and Others v ABSA Bank Limited (70894/14) [2015] ZAGPPHC 477 (22 May 2015)

Court

North Gauteng High Court, Pretoria

Case number

70894/14

Judge

Dodson

Rescission of a default judgment was refused because the applicants' alleged damages claim had prescribed and could not operate as set-off against the overdraft claim.

• Rescission Of Judgment
• Set Off
• Prescription
• Banker Customer Relationship
• Suretyship
• Rescission-of-judgment

ABSA Bank Ltd v Intensive Air (Pty) Ltd (In Liquidation) and Others (2011 (2) SA 275 (SCA);

ABSA Bank Ltd v Intensive Air (Pty) Ltd (In Liquidation) and Others (2011 (2) SA 275 (SCA); [2011] 3 All SA 2 (SCA)) [2010] ZASCA 171; 31/2010 (1 December 2010)

Court

Supreme Court of Appeal

Case number

31/2010

Judges

Harms, Cachalia, Snyders, Shongwe, Bertelsmann

The court held that the respondents failed to prove that the funds in the ticket account belonged to the company rather than to Louw personally. The account was opened and conducted in Louw's name, and there was no evidence of any agreement with the bank to treat the funds as those of the company. The existence of a loan account in the company did not establish a contractual relationship between the bank and the company. The bank was entitled to set-off the credit balance in Louw's personal account against his personal indebtedness. The appeal was upheld, and the order of the full court was s…

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• Banker Customer Relationship
• Set Off
• Company Liquidation
• Dispositions Without Value

McCarthy Ltd v ABSA Bank Ltd (511/08)

McCarthy Ltd v ABSA Bank Ltd (511/08) [2009] ZASCA 118; 2010 (2) SA 321 (SCA) ; [2010] 1 All SA 435 (SCA) (25 September 2009)

Court

Supreme Court of Appeal

Case number

511/08

Judges

Nugent, Lewis, Van Heerden, Leach, Tshiqi

The Supreme Court of Appeal held that the trial court misdirected itself by focusing on whether the bank was contractually bound to avoid negligence in its collecting function, rather than considering whether the bank was negligent in paying the cheques. The appellant's claim was properly construed as alleging breach of the mandate to exercise reasonable care when paying cheques. The evidence presented was sufficient for a reasonable court to find that ABSA ought to have made further enquiry before paying the cheques, and its failure to do so could be considered negligent. The knowledge acqui…

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• Negligent Payment Of Cheques
• Banker Customer Relationship
• Implied Terms Of Contract
• Standard Of Care
• Absolution From The Instance
• Causation Of Loss

Bredenkamp and Others v Standard Bank of South Africa Ltd and Another (09/7907)

Bredenkamp and Others v Standard Bank of South Africa Ltd and Another (09/7907) [2009] ZAGPJHC 30; 2009 (6) SA 277 (GSJ) (31 July 2009)

Court

South Gauteng High Court, Johannesburg

Case number

09/7907

Judge

Lamont

The court held that Standard Bank could terminate the banking relationship on reasonable notice and dismissed the application, finding no constitutional unfairness.

• Banker Customer Relationship
• Contractual Termination
• Constitutional Fairness
• Public Policy
• Freedom Of Contract
• Banker-customer-relationship