The Supreme Court of Appeal (“SCA”) confirmed that section 127(8) of the National Credit Act, 2005 (“NCA”) does not confer exclusive jurisdiction on the Magistrates’ Court in respect of shortfall claims following the repossession and sale of goods under credit agreements. On 22 May 2026, the SCA delivered judgment in Dreyer NO and Another v Standard Bank and Nedbank Limited and Another v Abrahams on 22 May 2026.
The matter arose from two applications decided by different Divisions of the High Court.
In the first matter, The Standard Bank of South Africa Limited (“Standard Bank”) entered into three instalment sale agreements with the Doornfontein Trust on 14 August 2017. The Trust defaulted on its obligations, and on 23 August 2019, Standard Bank obtained an order from the High Court requiring the appellants to return various assets. Standard Bank repossessed the assets and sold them at auction, but a shortfall remained. When Standard Bank returned to the North West Division of the
