On 28 November 2009, the plaintiff won a bid at ABC Auctioneers to purchase an Isuzu KB 280 motor vehicle sold on behalf of the defendant. The vehicle was sold "voetstoots" (as it stood). After purchase, the plaintiff discovered two problems: an inconsistency between the vehicle registration number and the vehicle, and that no import duty had been paid when the vehicle was imported from South Africa. The plaintiff paid US$3,434.00 in import duty and storage charges to ZIMRA. In August 2009, the plaintiff sold the vehicle to Prosper Mayengahama for US$9,500.00. The vehicle was subsequently seized by South African Police for being stolen, and Mayengahama sued the plaintiff for a refund and damages. The plaintiff issued summons against the defendant on 29 November 2013, claiming refund of the purchase price, the amount paid to ZIMRA, and the amount he was being sued for by Mayengahama, alleging the defendant passed defective title. Summons was served on 5 December 2013. The defendant filed a special plea on 29 January 2014 that the claim had prescribed under s 15(d) of the Prescription Act as the cause of action arose on 28 November 2009, more than three years before summons was served.
The special plea succeeded. The plaintiff's claim was dismissed with costs.
1. Under s 16(3) of the Prescription Act, a creditor is deemed to have become aware of the identity of the debtor and the facts from which the debt arises if he could have acquired knowledge thereof by exercising reasonable care. 2. The running of prescription under s 17(1)(c) (interruption when a debtor is outside the country) is a defense available to debtors, not creditors. 3. A creditor who fails to exercise reasonable care to discover facts giving rise to a debt cannot rely on actual later discovery to delay the commencement of prescription. 4. Prescription begins to run when a creditor could reasonably have become aware of the facts giving rise to the debt, not when they actually became aware of those facts, where reasonable care was not exercised. 5. Service of summons, not merely issue of summons, is essential to interrupt the running of prescription.
The court observed that where a special plea or exception is filed out of time under r 138, the appropriate remedy is striking off from the roll rather than dismissal, as dismissal suggests consideration of merits while striking off addresses the procedural defect and leaves it open for the party to rectify. However, the court noted that in the interests of justice and efficiency, where the court has already heard the merits and no prejudice would result, it may exercise discretion under r 4C to condone the delay and determine the matter on its merits rather than requiring a fresh hearing before a potentially different judge. The court also commented that the policy behind prescription is to penalize the tardy litigant, and that under s 14 of the Prescription Act, prescription is a matter of substantive law (extinguishing the debt) rather than procedural law (merely barring the remedy).
This case provides important guidance on the application of Zimbabwe's Prescription Act in debt claims, particularly regarding: (1) the interpretation of when a creditor becomes aware of facts from which a debt arises under s 16(3); (2) the requirement that creditors exercise reasonable care in becoming aware of the facts giving rise to a debt; (3) the application of s 17(1)(c) regarding interruption of prescription when a party is outside the country - clarifying this defense is available to debtors, not creditors; and (4) the court's discretion under r 4C to condone procedural irregularities where hearing the matter on its merits advances the interests of justice and avoids duplication of effort. The case reinforces that prescription is a matter of substantive law that extinguishes the debt, not merely bars the remedy, and serves to penalize tardy litigants.