Stewarts & Lloyds Trading (Booysens) (Pty) Ltd instituted action against the Vhembe District Municipality for payment of R698 885 arising from a ceded contractual claim linked to a water reticulation project. The combined summons was served at the municipality’s offices and bore its official date stamp, but the municipality failed to enter an appearance to defend. Default judgment was granted under Uniform Rule 31(2). After a writ of execution was issued and the sheriff attached movable assets, the municipality applied for rescission of the default judgment, alleging improper service, non-compliance with s 3 of the Institution of Legal Proceedings Against Certain Organs of State Act 40 of 2002, and the existence of a bona fide defence. The Limpopo High Court dismissed the rescission application, leading to an appeal to the Supreme Court of Appeal.