Nkata v Firstrand Bank Limited and Others [2016] ZACC 12 (21 April 2016)

Peremption – effect of settlement agreement – appellants signed a
settlement acknowledging validity of a judgment which they previously sought to set
aside – appellants perempted from further challenge to validity of judgment.
Res judicata – appellants’ rescission application against a default judgment dismissed
– appellants applying again to declare the default judgment a nullity – latter application
effectively sought same relief as in the rescission application – defence of res judicata
correctly upheld.

National Credit Act 34 of 2005 – s 103(5) read with s 101(1)(g) – whether collection costs as defined includes all legal costs incurred in enforcing credit agreement – whether s 103(5) applies for as long as the consumer remains in default irrespective of whether judgment has been granted – collection costs, as defined and referred to in s 101(1)(g) – to be given its common law meaning by drawing a distinction between the collection fees charged by an attorney prior to litigation and the costs awarded in an action to recover the debt – legal costs commence with a summons and do not as a general rule allow for pre-litigation costs to be recovered from the losing litigant – the judgment entered is for the capital sum fixed at a particular date together with interest – thus s 103(5) does not apply post-judgment – appeal upheld.

Reinstatement of mortgage bond which had been cancelled as a result of a sale in execution of immovable property – sale in execution eventually set aside -bond, as security of a debt, to be reinstated — cancellation of the bond had not extinguished the debt.