South Africa Case Law

Absa Bank Limited v Frans (2169/2024)

Absa Bank Limited v Frans (2169/2024) [2025] ZAWCHC 154 (28 March 2025)

Court

Western Cape High Court, Cape Town

Case number

2169/2024

Judge

P. S. Van Zyl

The defendant breached the debt review order by making sporadic and insufficient payments. In terms of section 88(3) of the National Credit Act, once default occurs, the debt rearrangement terminates automatically and the credit provider is entitled to enforce the original credit agreement. Subsequent payment of arrears does not reinstate the debt review arrangement. The defendant's reliance on section 86(10)(b) is misplaced, as automatic termination under section 88(3) is not precluded by that provision. The defendant has no bona fide defence to the plaintiff's claim, and the court's discret…

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• National Credit Act
• Debt Review Orders
• Summary Judgment
• Default Under Credit Agreement
• Termination Of Debt Review
• Enforcement Of Security

Hollard Insurance Company Limited v Lynco Projects (Pty) Limited and Others (1173/2023)

Hollard Insurance Company Limited v Lynco Projects (Pty) Limited and Others (1173/2023) [2024] ZAMPMBHC 86 (17 December 2024)

Court

Mbombela High Court, Mpumalanga

Case number

1173/2023

Judge

TV Ratshibvumo

The High Court enforced a guarantee indemnity, holding that supervening impossibility in the underlying contract did not defeat the independent reimbursement claim.

• Guarantee And Indemnity
• Suretyship
• Enforcement Of Security
• Attorney And Client Costs
• Guarantee-and-indemnity
• Supervening-impossibility

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

Firstrand Bank Limited v JDI Research (Pty) Ltd and Others (2022/9043)

Firstrand Bank Limited v JDI Research (Pty) Ltd and Others (2022/9043) [2023] ZAGPJHC 573 (21 April 2023)

Court

South Gauteng High Court, Johannesburg

Case number

2022/9043

Judge

D I Berger

The court found that the applicant complied with Uniform Rule 41A by serving the required notice and stating its reasons for opposing mediation. The National Credit Act does not apply to the facts, as the first respondent is a juristic person and the agreement is a large agreement. The third respondent admitted signing the deed of suretyship and was aware of its nature. Her claims of duress and mistake were not substantiated; economic duress is not recognised in South African law, and she failed to show that any mistake was reasonable. The applicant established its entitlement to enforce the…

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• Suretyship
• Enforcement Of Security
• Uniform Rule 41a
• National Credit Act Exclusion
• Duress
• Mistake

Telkom SA SOC Ltd v Pillay (27532/21)

Telkom SA SOC Ltd v Pillay (27532/21) [2023] ZAGPJHC 296 (3 April 2023)

Court

South Gauteng High Court, Johannesburg

Case number

27532/21

Judge

T P Mudau

The court found that the respondent, by signing the deed of suretyship, bound himself as surety and co-principal debtor for the debts of R&R Wholesalers arising from the dealer agreement with Telkom. The evidence, including contemporaneous email correspondence and the wording of the suretyship, established that the respondent was aware of the nature and scope of the security provided. The respondent failed to discharge the onus of proving iustus error or any misrepresentation by Telkom. The court held that the suretyship covered the debt claimed and was enforceable against the respondent. The…

Source excerpt

• Suretyship
• Rectification Of Contract
• Dealer Agreement
• Enforcement Of Security
• Quantum Of Debt

Nedbank Limited v Labuschagne and Another (1393/2020)

Nedbank Limited v Labuschagne and Another (1393/2020) [2020] ZAFSHC 210 (12 November 2020)

Court

Free State High Court, Bloemfontein

Case number

1393/2020

Judge

Opperman

The court found that the defendants did not raise any issue for trial and failed to disclose a bona fide defence that is good in law. The defence based on the realization of securities was speculative and vague, and the indebtedness was undisputed. The court noted that the liquidation of Zara Boerdery had been ordered, further undermining the defendants' position. The rationale for summary judgment, as set out in Joob Joob Investments, was applied: summary judgment is appropriate where no genuine defence exists. The court granted summary judgment in favour of the plaintiff for the amounts cla…

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• Summary Judgment
• Suretyship
• Rectification Of Contract
• Enforcement Of Security
• Interest On Debt

National Empowerment Fund v C-Pro Construction (Pty) Ltd and Others (10191/2017)

National Empowerment Fund v C-Pro Construction (Pty) Ltd and Others (10191/2017) [2017] ZAGPJHC 406 (28 November 2017)

Court

South Gauteng High Court, Johannesburg

Case number

10191/2017

Judge

Fisher

The High Court held that C-Pro breached a cession of contract proceeds, entitling the National Empowerment Fund to enforce its security and recover amounts due.

• Cession Of Contractual Rights
• Enforcement Of Security
• Loan Agreement Breach
• Urgent Interdict
• Cession-of-contractual-rights
• Enforcement-of-security

Nedbank Ltd v McGovern (57075/14)

Nedbank Ltd v McGovern (57075/14) [2015] ZAGPPHC 57 (6 February 2015)

Court

North Gauteng High Court, Pretoria

Case number

57075/14

Judge

M F Legodi

The High Court granted summary judgment, holding that Nedbank validly terminated debt review under the National Credit Act and could enforce the agreement.

• National Credit Act
• Debt Review Termination
• Installment Sale Agreement
• Enforcement Of Security
• Summary Judgment
• National-credit-act

Firstrand Bank Ltd t/a Wesbank v Jili (5200/2012)

Firstrand Bank Ltd t/a Wesbank v Jili (5200/2012) [2013] ZAKZDHC 5 (25 February 2013)

Court

Kwazulu-Natal High Court, Durban

Case number

5200/2012

Judge

Kruger

The court held that the plaintiff was entitled to summary judgment for the return of the vehicle. The defendant defaulted on the debt rearrangement order, and in terms of Section 88(3) of the National Credit Act and relevant case law, the plaintiff could enforce its rights under the credit agreement without further notice or rescission of the court order. Payment of arrears after summons did not reinstate the debt rearrangement order. The defendant failed to show a bona fide defence to the plaintiff's claim.

Source excerpt

• National Credit Act
• Debt Rearrangement Order
• Summary Judgment
• Default Under Credit Agreement
• Enforcement Of Security