The Supreme Court of Appeal has ruled that Sekunjalo Independent Media must repay about R459 million to the Southern African Clothing and Textile Workers’ Union (SACTWU).
The matter stems from a R150-million loan advanced in 2013 to support Sekunjalo’s acquisition of Independent Media. Over time, the debt escalated due to accumulated interest and eventually formed the basis of the legal challenge.
SACTWU approached the courts seeking repayment, arguing that Sekunjalo had failed to meet its obligations under the loan agreement.
Sekunjalo tried to resist repayment
However, Sekunjalo Independent Media and Sekunjalo Investment Holdings, the defendants in the matter, sought to resist repayment.
The defendants argued that the agreement had not been properly authorised and should therefore not be enforceable. They contended that this weakened the creditor’s claim.
The Supreme Court of Appeal on Friday found that the reliance on alleged defects in internal authorisation could not be used to escape clear repayment obligations. The court emphasised that where commercial agreements are concluded and acted upon, parties cannot later invoke technicalities to avoid their financial commitments.
The SCA upheld the plaintiff’s claim with costs
In its ruling, the court ordered the repayment of about R459-million, including interest and costs, in what is seen as a decisive outcome in favour of the creditor.
“The order of the high court is set aside and substituted with the following order: The plaintiff’s claim is upheld with costs, including costs of three counsel, Sekunjalo Independent Media (Pty) Ltd is liable to pay to SACTWU Investments Group (Pty) Ltd the amount of R458 606 995.07, calculated as set out in Annexure A, attached to the parties’ agreement.
“Sekunjalo Independent Media (Pty) Ltd is liable to pay interest from 29 August 2023 until the date of payment, on any amount then and thereafter outstanding in respect of the amount payable to SACTWU Investments Group (Pty) Ltd at the default interest rate provided in the loan agreement,” reads the court document.
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