Nedbank Limited v Steyn and Others

Nedbank and other commercial banks instituted actions for default judgment against executors/executrixes of deceased estates based on loan agreements secured by mortgage bonds. In the Steyn matter, the deceased died in June 2012, the executrix was appointed in December 2012, and the estate was not finalised. The bonded property was in significant arrears. Nedbank issued summons and sought payment, an order declaring the mortgaged properties specially executable, and writs of execution. The High Court (Mabuse J) removed the applications from the roll, holding that the banks were required to follow the statutory claims procedure under the Administration of Estates Act 66 of 1965 instead of instituting common-law actions.

The six appeals were upheld with no order as to costs. In the Steyn matter, the High Court’s order was set aside and replaced with an order granting default judgment in favour of Nedbank, including payment of the debt, interest, and an order declaring the mortgaged properties specially executable. The other five matters were remitted to the High Court for reconsideration in light of this judgment.

The case authoritatively confirms that creditors of deceased estates are not confined to the statutory claims procedure under the Administration of Estates Act and may pursue common-law actions against executors. It resolves conflicting High Court authority and affirms long-standing precedent, providing certainty to banks and other creditors dealing with deceased estates.