Nissan South Africa (Pty) Limited v Marnitz, Nadia N.O. and Others

Nissan South Africa instructed FirstRand Bank Ltd (FNB) to pay over R12,767,468.22 to a creditor, TSW Manufacturing, but due to a clerical error the funds were transferred to a Standard Bank account belonging to Maple Freight CC, to whom Nissan owed nothing. Maple immediately realised the payment was mistaken but, on legal advice, transferred the funds between its accounts and used them in its business. When Nissan discovered the error, it demanded repayment. Maple could not repay and was placed in voluntary liquidation. About R10.5 million remained traceable. The liquidators contended the funds formed part of Maple’s insolvent estate, while Nissan argued that the traceable amount never became Maple’s property and should be returned.

The appeal was upheld. The SCA declared that R9,750,000 and accrued interest did not form part of Maple Freight CC’s insolvent estate and ordered the liquidators to release the amount to Nissan South Africa. Costs were awarded against the liquidators and the intervening party jointly and severally.

The case is a leading authority in South African law on mistaken electronic payments, confirming that an accountholder who knowingly receives a mistaken transfer acquires no entitlement to the funds. It clarifies the interaction between banking practice, unjustified enrichment, theft, and insolvency, and affirms the right of a payer to reclaim traceable mistaken funds notwithstanding the recipient’s liquidation.