ABSA Bank Home Loans Guaranteee Company (RF) (Pty) Ltd and Another v Kamanga

The applicants, ABSA Bank Home Loans Guaranteee Company (RF) (Pty) Ltd and ABSA Bank Limited, instituted action against the respondent for payment of outstanding amounts arising from a mortgage loan agreement. The respondent defaulted on his bond repayments in respect of his primary residence. In response to the summons and subsequent application for summary judgment, the respondent filed a notice of intention to plea, appearing in person, in which he admitted being in arrears but pleaded personal circumstances and requested indulgence, proposing reduced instalments to cure the arrears. The bank considered but rejected the proposal on the basis that it did not cover even the interest due under the loan.

Summary judgment was granted. The defendant was ordered to pay R5 590 996.40 to the first plaintiff, together with interest at the prime lending rate plus 1.25% per annum from 22 December 2023 to date of final payment, and costs on the attorney and own client scale.

The case reaffirms the principles governing summary judgment in South African civil procedure, particularly that a defendant must disclose a bona fide defence and not merely rely on personal circumstances or pleas for indulgence. It also underscores that courts will not rewrite mortgage loan agreements or compel credit providers to accept unviable repayment proposals, while recognising the operation of section 129 of the National Credit Act.