MEC for Department of Education, Eastern Cape v Meleng Youngson Ngxabi

The respondent, trading as Tabankulu Bookshop, supplied stationery to various Eastern Cape schools between 2010 and 2014, resulting in a debt of R495,894.37 owed by the MEC for the Department of Education, Eastern Cape. Litigation ensued and was settled through mediation, culminating in a court order granted on 23 May 2023. Paragraph 3 of that order awarded interest of R1,385,119.26, which exceeded the capital amount. When payment was to be effected, the applicant contended that the interest contravened the common-law in duplum rule and sought a variation of the order under Rule 42(1)(a) of the Uniform Rules of Court. The respondent opposed the application, arguing that the order was granted with the applicant’s consent and that the requirements for rescission or variation under Rule 42 were not met.

The application for variation was granted. The interest payable in terms of the order dated 23 May 2023 was limited by application of the in duplum rule. No order as to costs was made.

The case reaffirms the application of the common-law in duplum rule in limiting interest to the amount of outstanding capital and confirms that a court order awarding interest contrary to this principle may be varied under Rule 42(1)(a). It also clarifies that absence from court due to mediation and bona fide settlement expectations does not necessarily bar relief under Rule 42.