Firstrand Bank Limited v Kona and Another (20003/2014)
Firstrand Bank Limited v Kona and Another (20003/2014) [2015] ZASCA 11; 2015 (5) SA 237 (SCA) (13 March 2015)
The Supreme Court of Appeal held that an application by a credit provider for the sequestration of a consumer’s estate, relying on a claim under a credit agreement, does not constitute litigation or judicial process to enforce any right or security under the credit agreement as contemplated by section 88(3) of the National Credit Act. Therefore, the existence of a debt re-arrangement order is not a bar to the grant of a sequestration order. The court found that the respondents were in default under both the credit agreement and the debt re-arrangement order, and that there was no evidence the…
Source excerpt
- National Credit Act
- Sequestration
- Debt Rearrangement Order
- Judicial Precedent
- Credit Provider Rights