South Africa Case Law

Heunes v ABSA Home Loans Guarantee Company (RF) Proprietary Limited and Others (2793/2022)

Heunes v ABSA Home Loans Guarantee Company (RF) Proprietary Limited and Others (2793/2022) [2025] ZAGPPHC 444 (6 May 2025)

Court

North Gauteng High Court, Pretoria

Case number

2793/2022

Judge

Hershensohn AJ

The court found that the applicant did not provide sufficient evidence that the payment of R1,440,000.00 was adequate to settle all arrears, default charges, and reasonable enforcement costs as required by section 129(3) of the National Credit Act. The bond account statements and correspondence from the respondents indicated that arrears remained outstanding after the payment. The right to reinstatement under section 129(3) is triggered only when all prescribed amounts are paid, and in this case, the applicant failed to demonstrate compliance. The relief sought was therefore not justified on…

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• Summary Judgment
• Sale In Execution
• Reinstatement Of Credit Agreement
• National Credit Act Section 129
• Arrears Calculation

Standard Bank of South Africa Limited v Koorbanally (4470/2020)

Standard Bank of South Africa Limited v Koorbanally (4470/2020) [2024] ZAGPJHC 1199 (26 November 2024)

Court

South Gauteng High Court, Johannesburg

Case number

4470/2020

Judge

S D J Wilson

The court removed a bank’s application from the roll after the borrowers paid arrears under a credit agreement, holding that enforcement costs had to be quantified and demanded earlier.

• National Credit Act
• Reinstatement Of Credit Agreement
• Enforcement Costs
• Mortgage Bond
• Costs Order
• National-credit-act

Land and Agricultural Development Bank of South Africa v Ntsekwa and Another (3325/2023)

Land and Agricultural Development Bank of South Africa v Ntsekwa and Another (3325/2023) [2024] ZAECMKHC 138; [2025] 1 All SA 395 (ECG); 2025 (3) SA 519 (ECMk) (19 November 2024)

Court

Eastern Cape High Court, Makhanda

Case number

3325/2023

Judge

Zono AJ

The court found that the respondents remedied their default by paying R500,000, which exceeded the arrear amount due under the credit agreement. The credit agreement was not cancelled at the time of payment, and the applicant did not account for the excess payment or quantify legal costs for enforcement. The applicant failed to provide proper Section 129(1) notice to the second respondent and did not establish that the notice reached the first respondent. As Section 129 notice is a condition precedent to instituting proceedings, the application was prematurely and improperly instituted. The c…

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• National Credit Act
• Section 129 Notice
• Remedy Of Default
• Reinstatement Of Credit Agreement
• Special Executability
• Right To Housing

Le Feuvre v Standard Bank of South Africa Limited and Others (2018/12442)

Le Feuvre v Standard Bank of South Africa Limited and Others (2018/12442) [2024] ZAGPJHC 978 (2 October 2024)

Court

South Gauteng High Court, Johannesburg

Case number

2018/12442

Judge

Adams

The applicant failed to prove that he paid all amounts overdue as required by section 129(3)(a) of the National Credit Act prior to the sale in execution. The evidence, including payment schedules and account histories, demonstrated that the account remained in arrears and the credit agreement was never reinstated. Consequently, the sale in execution and subsequent transfer were lawful. However, Standard Bank received R316,958.52 from the sale proceeds for municipal rates and taxes, which, according to the conditions of sale, should have been paid by the purchaser and not deducted from the ap…

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• National Credit Act
• Reinstatement Of Credit Agreement
• Sale In Execution
• Unjust Enrichment
• Interest Calculation
• Default Judgment

Rakale and Another v Standard Bank of South Africa and Another (2024/091779)

Rakale and Another v Standard Bank of South Africa and Another (2024/091779) [2024] ZAGPJHC 831 (28 August 2024)

Court

South Gauteng High Court, Johannesburg

Case number

2024/091779

Judge

M A Makume

The court found that urgency was self-created, as the applicants delayed bringing the application despite knowing of the sale since 2020. The requirements for an interdict were not satisfied: the applicants lost any right to the property when the agreement was cancelled and the property declared executable; they have alternative remedies, including renting and access to the sale residue. The balance of convenience favours proceeding with the sale. Reliance on Section 129(3) of the National Credit Act is misplaced, as Section 129(4) bars reinstatement after sale in execution. The purchaser was…

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• Urgent Interdict
• Sale In Execution
• Section 129 Nca
• Joinder Of Parties
• Reinstatement Of Credit Agreement

Naidoo (formerly Padayachee) v Changing Tides 17 (Pty) Ltd NO and Others (1885/2009)

Naidoo (formerly Padayachee) v Changing Tides 17 (Pty) Ltd NO and Others (1885/2009) [2024] ZAKZDHC 55 (23 August 2024)

Court

Kwazulu-Natal High Court, Durban

Case number

1885/2009

Judge

G M Harrison

The court found that the applicant's payment of arrears and subsequent conduct of both parties resulted in the reinstatement of the credit agreement, extinguishing the cause of action for the original summons and default judgment. The first respondent's reliance on the 2013 default judgment for execution in 2021 was improper, as the debt had been discharged and the agreement reinstated. The sale in execution and transfer to the second respondent were declared invalid, and the title deed was ordered to be reinstated in the applicant's name. The second respondent, as an innocent purchaser, was…

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• Sale In Execution
• Reinstatement Of Credit Agreement
• Uniform Rule 46a
• Right To Housing
• Default Judgment
• Transfer And Title Deed

Nedbank Limited v Pheto (43927/2020)

Nedbank Limited v Pheto (43927/2020) [2023] ZAGPPHC 1162 (6 September 2023)

Court

North Gauteng High Court, Pretoria

Case number

43927/2020

Judge

P A Van Niekerk

The court found that the respondent paid R150,000 towards the arrears following a section 129 notice, which included legal fees in the calculation. The applicant failed to provide due notice to the respondent regarding the nature and extent of legal costs prior to the payment. The legal costs were neither agreed nor taxed, and the respondent was not placed in a position to determine their reasonableness. Applying the Constitutional Court's decision in Nkata, the agreement was reinstated by operation of law when the respondent paid the arrears, even though legal costs were not paid. The applic…

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• National Credit Act
• Reinstatement Of Credit Agreement
• Section 129 Notice
• Default Judgment
• Legal Costs
• Consumer Protection

Muchenje and Another v Investec Bank Ltd (17072/22)

Muchenje and Another v Investec Bank Ltd (17072/22) [2023] ZAGPPHC 665 (4 August 2023)

Court

North Gauteng High Court, Pretoria

Case number

17072/22

Judge

Skosana

The High Court held that Investec’s purported cancellation of a home loan was invalid and that the agreement was reinstated after the applicants remedied default.

• National Credit Act
• Declaratory Relief
• Contract Cancellation
• Reinstatement Of Credit Agreement
• Specific Performance
• National-credit-act

Majola v BMW Financial Services South Africa (Pty) Limited and Another (2488/2018)

Majola v BMW Financial Services South Africa (Pty) Limited and Another (2488/2018) [2020] ZAKZDHC 52 (26 October 2020)

Court

Kwazulu-Natal High Court, Durban

Case number

2488/2018

Judge

Masipa

The applicant failed to provide a reasonable and complete explanation for the delay in filing the rescission application, as required for condonation. The explanation was vague and did not cover the entire period of delay. On the merits, although the applicant did not receive proper service of the summons and s 129 notice, she did not pay the full arrears required to reinstate the credit agreement before judgment was granted. The payment of R33,000 was insufficient to settle the arrears, which had escalated to R45,694.65. Therefore, the applicant did not establish a bona fide defence. As both…

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• Rescission Of Judgment
• Condonation
• Service Of Process
• National Credit Act
• Reinstatement Of Credit Agreement

Mothlabane v ABSA Bank Limited (2318/2017)

Mothlabane v ABSA Bank Limited (2318/2017) [2019] ZAECPEHC 60 (25 September 2019)

Court

Eastern Cape High Court, Port Elizabeth

Case number

2318/2017

Judge

Goosen

The applicant provided a reasonable explanation for her default, having relied on the bank's assurance that payment of the arrears would halt legal proceedings. Her version was supported by the account statements and was not contradicted by the respondent. The applicant raised a bona fide defence with prospects of success, namely that the credit agreement was reinstated by payment of the arrears, or alternatively, that an agreement was reached not to proceed with legal action upon such payment. The respondent failed to challenge the applicant's factual averments and did not provide evidence t…

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• Rescission Of Judgment
• Default Judgment
• National Credit Act
• Mortgage Bond Enforcement
• Reinstatement Of Credit Agreement