THE Free State High Court has ruled in favour of Sasfin Bank Limited and Sunlyn (Pty) Ltd in a debt recovery case against Bloemfontein-based company Makatsang Cleaning Services (Pty) Ltd and its two guarantors, Gert Stefanus Venter and Francois Du Toit.
Presiding over the case, Judge Loubser delivered a verdict requiring the defendants to settle an outstanding debt of R520 900.01, in addition to interest and legal costs.
The case revolved around a defaulted rental agreement for office equipment initially entered into by Makatsang Cleaning Services with Itec.
Venter and Du Toit had personally guaranteed the payments under this agreement.
After Makatsang defaulted on its payments, the debt was transferred to Sasfin Bank through a series of cessions, a legal process that reassigns the debt obligation from one party to another.
However, the defendants contested the validity of these cessions, asserting they were unaware of the transfers and disputing the outstanding amount claimed.
Despite their objections, Sasfin’s legal coordinator, Minenhle Moyo, presented thorough documentation outlining the transfer of debt rights: initially from Itec to Absa Finance, then from Absa to Sunlyn and finally to Sasfin.
Her evidence, which underscored Makatsang’s breach of contract, was left unchallenged during the trial, strengthening Sasfin’s case.
In his ruling, Judge Loubser confirmed the validity of the cession agreements, stating that the certificate of balance submitted by Sasfin was reliable proof of Makatsang’s outstanding debt.
The court ordered Venter and Du Toit to pay R520 900.01, with interest accruing at a rate of 16.25 percent per annum from 1 April 2019 until the debt is fully paid.
Furthermore, the defendants were ordered to cover all legal costs, including fees associated with the summary judgment application, on an “attorney and client” scale – indicating a higher cost responsibility due to the nature of the case.
This judgment reaffirms the enforceability of cession agreements and personal guarantees in debt collection and emphasises the importance of robust documentation in supporting claims in court. – Staff Reporter