Absa Technology Finance Solutions (Pty) Ltd v Fulela Trade and Invest 21 (Pty) Ltd t/a Caltex The Downs Service Station and Another

The first respondent hired a generator, initially from Easytech and thereafter from the appellant, Absa Technology Finance Solutions (Pty) Ltd, under a Master Rental Agreement (MRA) concluded on 14 April 2008. The second respondent signed the MRA as surety and co‑principal debtor. Absa sued in the Gauteng Local Division for arrear rental payments amounting to R296 422,94 and for return of the generator. The respondents raised defences including misrepresentation, duress, and cancellation of the agreement. The trial court granted absolution from the instance on the basis that Absa had failed to prove it was entitled (had locus standi) to conclude the MRA, holding that there was no proof that Absa owned the generator or had rights to lease it.

The appeal was upheld with costs. The order of absolution from the instance and the associated costs order were set aside, and the matter was remitted to the trial court for determination of the remaining issues. The appellant was ordered to pay the respondents’ costs relating to the application to supplement the record, limited to relevant documents.

The case reaffirms fundamental principles of South African civil procedure: courts may not decide cases on unpleaded issues, nor require a party to prove facts that are admitted and common cause. It also confirms that ownership is not a prerequisite for a valid lease and that a lessee may not challenge a lessor’s title once use and enjoyment are provided. The judgment further underscores standards of judicial conduct towards counsel.