South Africa Case Law

ABSA Bank Limited v Go On Supermarket (Pty) Limited (The Spar Group Limited intervening) (9442/2022)

ABSA Bank Limited v Go On Supermarket (Pty) Limited (The Spar Group Limited intervening) (9442/2022) [2022] ZAGPJHC 173 (24 March 2022)

Court

South Gauteng High Court, Johannesburg

Case number

9442/2022

Judge

Adams

The court found that ABSA was entitled to perfect its security under the general notarial bond during business rescue proceedings, as business rescue constitutes a form of judicial management, triggering ABSA's rights under the bond. The business rescue practitioner's consent to the perfection was valid, and symbolic possession through the practitioner as ABSA's agent was sufficient to establish a real right of pledge. The Spar Group Limited was granted leave to intervene due to its substantial interest as a major creditor and holder of a special notarial bond. The court agreed that assets su…

Source excerpt

• Perfection Of Notarial Bond
• Business Rescue
• Priority Of Security Rights
• Pledge And Real Rights
• Urgent Interdict
• Creditor Intervention

Diocese of Klerksdorp of the Roman Catholic Church v Southern Life Association Ltd. (133/90)

Diocese of Klerksdorp of the Roman Catholic Church v Southern Life Association Ltd. (133/90) [1992] ZASCA 49 (30 March 1992)

Court

Supreme Court of Appeal

Case number

133/90

Judges

F H Grosskopf, Hoexter, Hefer, Smalberger, Milne

The respondent (Southern) held prior cessions over the insurance policies, supported by signed acknowledgements of loan and retention of the policy documents. These cessions were perfected before the appellant's cessions and gave the respondent a security right recognised by the Insolvency Act. Upon liquidation, the right of set-off was lost, but the respondent's security remained effective. The appellant's rights under its cessions were subject to the respondent's prior security. There was no genuine dispute of fact regarding the authenticity or priority of the cessions, and no grounds exist…

Source excerpt

• Cession In Securitatem Debiti
• Priority Of Security Rights
• Liquidation And Concursus Creditorum
• Set Off In Insolvency
• Insurance Policy Loans

Landboukredietraad v Vrystaat Lewendehawe and Others (121/89)

Landboukredietraad v Vrystaat Lewendehawe and Others (121/89) [1989] ZASCA 120 (28 September 1989)

Court

Supreme Court of Appeal

Case number

121/89

Judges

Joubert, Hefer, Nestadt, Kumleben, Nicholas

The court held that the State’s rights under the Landboukrediet Act were not displaced by a cooperative’s prior statutory pledge over livestock.

• Statutory Pandrecht
• Priority Of Security Rights
• Interpretation Of Statutes
• Insolvency Distribution
• Statutory-pledge
• Security-priority