South Africa Case Law

Passenger Rail Agency of South Africa v Unahina Business Solutions (Pty) Limited (A2023/041004)

Passenger Rail Agency of South Africa v Unahina Business Solutions (Pty) Limited (A2023/041004) [2024] ZAGPJHC 554 (30 April 2024)

Court

South Gauteng High Court, Johannesburg

Case number

A2023/041004

Judges

Wright, M Van Nieuwenhuizen

The appellant failed to meet the requirements for rescission of the default judgment. No adequate reasons for default were provided, and no bona fide defence on the merits was raised. The technical defences advanced—application of section 133 of the Companies Act, lack of jurisdiction, lack of locus standi, and non-joinder—were all found to be unsustainable. Section 133 did not apply as PRASA was not in business rescue; jurisdiction was established by PRASA's head office being in Johannesburg; locus standi was validly derived from the deed of cession; and non-joinder of Biggietech was not req…

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• Rescission Of Default Judgment
• Cession Of Book Debts
• Jurisdiction Of Magistrates Court
• Locus Standi
• Non Joinder
• Companies Act Section 133

Business Zone 747 (Pty) Ltd v UMK Build (Pty) Ltd and Others (D13054/2022)

Business Zone 747 (Pty) Ltd v UMK Build (Pty) Ltd and Others (D13054/2022) [2024] ZAKZDHC 9 (5 March 2024)

Court

Kwazulu-Natal High Court, Durban

Case number

D13054/2022

Judge

R Singh

The High Court held the borrower liable for repayment despite alleged misappropriation by attorneys, and enforced sureties and cession-based security.

• Loan Agreement
• Suretyship
• Cession Of Book Debts
• Enforcement Of Security
• Summary Judgment
• Loan-agreement

Linde and Associates NO 131 INC v Nedbank Limited and Others (2023/051824)

Linde and Associates NO 131 INC v Nedbank Limited and Others (2023/051824) [2023] ZAGPJHC 1382 (28 November 2023)

Court

South Gauteng High Court, Johannesburg

Case number

2023/051824

Judge

R Shepstone

The High Court dismissed leave to appeal, holding that revoking a power of attorney did not destroy Medicross’s security under a cession of book debts.

• Powers Of Attorney
• Cession Of Book Debts
• Asset Preservation Interdict
• Leave To Appeal
• Security For Debt
• Leave-to-appeal

Dr LJ Faul and Associates NO 14 Incorporated and Others v Medicross Healthcare Group (Pty) Ltd (28795/2019)

Dr LJ Faul and Associates NO 14 Incorporated and Others v Medicross Healthcare Group (Pty) Ltd (28795/2019) [2022] ZAGPJHC 512 (8 August 2022)

Court

South Gauteng High Court, Johannesburg

Case number

28795/2019

Judge

Nochumsohn

The court found that the Respondent was contractually obliged to pay the consultancy fees for January and February 2019 under the Financing and Loan Agreement, as the trio of agreements remained binding until 28 February 2019. The Exit Agreement did not expressly remove or novate these obligations, and its silence on the point could not be interpreted as a release of the Respondent's liability. The waiver of claim for excess loan account was irrelevant due to the absence of evidence regarding the value of the book debt and the agreed quantum of the claim. The Respondent's unconditional tender…

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• Contractual Interpretation
• Loan Agreement
• Cession Of Book Debts
• Novation
• Interest On Judgment Debt

Prevance Bonds (Pty) Limited v Voltex (Pty) Limited (43914/17)

Prevance Bonds (Pty) Limited v Voltex (Pty) Limited (43914/17) [2021] ZAGPPHC 818 (2 December 2021)

Court

North Gauteng High Court, Pretoria

Case number

43914/17

Judge

E van der Schyff

The court found that rectification of an application for credit incorporating a cession of book debts is allowed in law after the winding-up of the company whose book debts were ceded. The court did not follow the earlier decision in Nedbank v Chance, noting conflicting judgments and the need for legal certainty. The third respondent's arguments regarding misdirection and procedural fairness were rejected, as the audi et alteram partem principle was observed and the factual basis for rectification was addressed in written submissions. The court held that the liquidator is the appropriate part…

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• Rectification Of Contract
• Cession Of Book Debts
• Liquidation Proceedings
• Secured Creditor Status

Voltex (Pty) Limited v First Strut (RF) Limited and Others (43914/17)

Voltex (Pty) Limited v First Strut (RF) Limited and Others (43914/17) [2021] ZAGPJHC 630 (5 October 2021)

Court

South Gauteng High Court, Johannesburg

Case number

43914/17

Judge

E van der Schyff

The court held that rectification of the written agreement is competent post-liquidation where the evidence establishes that a valid cession agreement was concluded prior to liquidation and the error is limited to the misdescription of a party. The applicant's real right of security existed at the time of liquidation, and rectification does not create new rights or alter the status quo. The absence of opposition from the liquidators and the uncontested evidence of the applicant's intention and the parties' dealings supported the grant of rectification. The court distinguished cases where rect…

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• Rectification Of Contract
• Cession Of Book Debts
• Concursus Creditorum
• Secured Creditor Status
• Liquidation Proceedings

FirstRand Bank Ltd v Nedbank Ltd (1249/17)

FirstRand Bank Ltd v Nedbank Ltd (1249/17) [2019] ZASCA 47 (29 March 2019)

Court

Supreme Court of Appeal

Case number

1249/17

Judges

Cachalia, Mbha, Van der Merwe, Dlodlo, Rogers

The SCA held that book debts sold to Nedbank under an invoice discounting agreement did not revert on cancellation; Nedbank’s accrued ownership remained intact.

• Contract Interpretation
• Cession Of Book Debts
• Security Cession
• Accrued Rights
• Cancellation Of Contract
• Repurchase Mechanism

DSD Trading t/a Eveready Brick and Block v eThekwini Municipality (4502/2013)

DSD Trading t/a Eveready Brick and Block v eThekwini Municipality (4502/2013) [2017] ZAKZDHC 19 (26 April 2017)

Court

Kwazulu-Natal High Court, Durban

Case number

4502/2013

Judge

M R Chetty

The court found that the plaintiff had proved its claim for payment of R217,405.90, being the total amount paid by the defendant to Siyathembana after the defendant had received notice of the cession of book debts. The evidence of the plaintiff's witness was unchallenged and consistent with the pleadings and prior affidavits. The defendant failed to provide any substantive defence, did not cross-examine the plaintiff's witness, and did not call any witnesses. The defendant's application for postponement and joinder was unsubstantiated, as no facts were presented to show Siyathembana had a dir…

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• Cession Of Book Debts
• Notice To Debtor
• Joinder Of Parties
• Municipal Liability
• Interest On Debt

Sasfin Bank Limited and Others v DCB Auto Spares Close Corporation (37622/2015)

Sasfin Bank Limited and Others v DCB Auto Spares Close Corporation (37622/2015) [2016] ZAGPJHC 347 (5 October 2016)

Court

South Gauteng High Court, Johannesburg

Case number

37622/2015

Judge

B Mahalelo

The High Court dismissed an exception to particulars of claim arising from an invoice discounting agreement and an alleged set-off arrangement.

• Exception Procedure
• Invoice Discounting Agreement
• Cession Of Book Debts
• Voidable Preference
• Collusive Disposition
• Exception-procedure

Swift Human Resources v Hamba Fishare Build (Pty)Ltd and Another (26343.2014)

Swift Human Resources v Hamba Fishare Build (Pty)Ltd and Another (26343.2014) [2016] ZAGPPHC 568 (17 May 2016)

Court

North Gauteng High Court, Pretoria

Case number

26243/2014

Judge

C Pretorius

The court found that the cession agreement entered into on 30 May 2011 transferred all rights to claim payment from Basil Read to the plaintiff, including both existing and future book debts. As a result, the defendants were divested of any right to claim payment from Basil Read, and only the plaintiff could enforce those rights. The plaintiff perfected the cession and collected payments directly from Basil Read, as confirmed by correspondence. The plaintiff failed to prove that the payments received from Basil Read were not allocated to the claim amount, and did not call the financial manage…

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• Cession Of Book Debts
• Acknowledgement Of Debt
• Suretyship
• Allocation Of Payments