FirstRand Bank Limited v Bhika and Another

The plaintiff, FirstRand Bank Limited, concluded a home loan agreement (January 2011) and a further loan agreement (February 2012) with the first and second defendants, who are married in community of property, to finance the purchase of immovable property at 38 Cornelia Avenue, Framesby, Gqeberha. Amounts of R975 000 and R325 000 were advanced and secured by registered mortgage bonds over the property. The defendants fell into arrears and were in default for more than 20 business days. The bank dispatched a section 129(1) National Credit Act notice by registered post to the defendants’ chosen domicilium. After action proceedings were instituted and defended, the plaintiff applied for summary judgment, contending that the defendants’ plea disclosed no bona fide defence.

Summary judgment was granted against the first and second defendants, jointly and severally, for R1 157 861.88, together with interest calculated daily and compounded monthly from 1 October 2022 at the variable mortgage bond rate, and costs on the attorney-and-client scale.

The judgment reinforces strict requirements for defendants opposing summary judgment to disclose bona fide defences with factual substance. It affirms the application of Kubyana v Standard Bank regarding delivery of section 129 notices and confirms that technical or bald allegations of National Credit Act non-compliance will not suffice to defeat summary judgment in mortgage enforcement proceedings.