A R2.35-million Porsche 911 Carrera S has reached the end of a two-year legal road trip after Capitec Bank won a Supreme Court of Appeal (SCA) battle to recover the luxury sports car from a company that defaulted on its payments, entered business rescue and was eventually liquidated.
This week, the country’s second-highest court ordered Ubuntu Family Health Centre Grayston (Pty) Ltd to immediately hand the 2020 Porsche 911 Carrera S back to Capitec.
The judgment brings to an end a remarkable fight that began after the health centre fell behind on payments for the high-performance German sports car.
Ubuntu bought the Porsche for R2.35-million through an instalment sale agreement under which Capitec advanced R2.115-million.
The company was required to make 59 monthly payments of R31,638.68, followed by a hefty R634,500 final payment.
Ownership remained with Capitec until the debt was fully settled.
READ MORE: Porsche to become “leaner, faster, more desirable”
Porsche payment trouble begins
According to the judgment, Ubuntu defaulted and Capitec sent a letter of demand on October 26, 2023.
Ubuntu undertook to settle its arrears by November 17 but failed to do so, prompting Capitec to cancel the agreement.
The same day, Capitec’s attorney Dwaine Brooks and bank representatives went to Ubuntu’s premises to recover the Porsche.
Ubuntu director Ridwaan Adams, who had paid R100,000 towards the arrears, refused to allow them to remove the vehicle and declined to disclose its whereabouts, according to the judgment.
Capitec nevertheless gave Ubuntu another chance.
At a meeting four days later, Adams proposed paying R500,000 by November 28 and discussed how the remaining debt could be settled over six months. Ubuntu also agreed to arrange for the Porsche to be viewed.
Neither undertaking was fulfilled.
On December 1, Capitec sent WH Auctioneers to collect the Porsche, but Adams refused them access and insisted they needed a court order.
Capitec went to court three days later.
READ MORE: Porsche global sales dip 15% in Q1 as product shifts impact supply
Business rescue could not save Porsche
There was another twist.
Shortly before Capitec launched its urgent application, Ubuntu had adopted a resolution placing itself into business rescue.
The Gauteng High Court subsequently ruled against Capitec, finding that the Companies Act’s moratorium on legal proceedings against companies in business rescue protected Ubuntu’s possession of the Porsche.
Ubuntu was liquidated in May 2024.
The SCA has now overturned the High Court decision.
Judge of Appeal Fayeeza Kathree-Setiloane said earlier court decisions made clear that business rescue could not prevent an owner from recovering property that a company neither owned nor lawfully possessed.
Once Capitec validly cancelled the agreement on November 17 2023, Ubuntu no longer had a lawful right to keep the Porsche.
“The moratorium in s 133 does not extend to vindicatory proceedings,” the court found.
The SCA said the High Court had been bound by existing precedent and had erred in dismissing Capitec’s application.
Capitec’s appeal was upheld with costs, with Ubuntu ordered to “forthwith deliver” the Porsche to the bank.
After two years of litigation, the chequered flag has finally fallen.
- Capitec Bank won a Supreme Court of Appeal (SCA) case to recover a 2020 Porsche 911 Carrera S from Ubuntu Family Health Centre Grayston (Pty) Ltd.
- Ubuntu defaulted on payments for the Porsche, initially paying R100,000 but failing to settle arrears or allow repossession attempts.
- Ubuntu entered business rescue, which initially protected it from repossession, but was liquidated in May 2024.
- The SCA ruled that business rescue protections do not prevent owners from reclaiming property not lawfully possessed by companies in business rescue.
- The court ordered Ubuntu to immediately return the Porsche to Capitec, ending two years of legal dispute.
A R2.35-million Porsche 911 Carrera S has reached the end of a two-year legal road trip after Capitec Bank won a Supreme Court of Appeal (SCA) battle to recover the luxury sports car from a company that defaulted on its payments, entered business rescue and was eventually liquidated.
This week, the country's second-highest court ordered Ubuntu Family Health Centre Grayston (Pty) Ltd to immediately hand the 2020 Porsche 911 Carrera S back to Capitec.
The judgment brings to an end a remarkable fight that began after the health centre fell behind on payments for the high-performance German sports car.
Ubuntu bought the Porsche for R2.35-million through an instalment sale agreement under which Capitec advanced R2.115-million.
The company was required to make 59 monthly payments of R31,638.68, followed by a hefty R634,500 final payment.
Ownership remained with Capitec until the debt was fully settled.
READ MORE: Porsche to become “leaner, faster, more desirable”
According to the judgment, Ubuntu defaulted and Capitec sent a letter of demand on October 26, 2023.
Ubuntu undertook to settle its arrears by November 17 but failed to do so, prompting Capitec to cancel the agreement.
The same day, Capitec's attorney Dwaine Brooks and bank representatives went to Ubuntu's premises to recover the Porsche.
Ubuntu director Ridwaan Adams, who had paid R100,000 towards the arrears, refused to allow them to remove the vehicle and declined to disclose its whereabouts, according to the judgment.
Capitec nevertheless gave Ubuntu another chance.
At a meeting four days later, Adams proposed paying R500,000 by November 28 and discussed how the remaining debt could be settled over six months. Ubuntu also agreed to arrange for the Porsche to be viewed.
Neither undertaking was fulfilled.
On December 1, Capitec sent WH Auctioneers to collect the Porsche, but Adams refused them access and insisted they needed a court order.
Capitec went to court three days later.
READ MORE: Porsche global sales dip 15% in Q1 as product shifts impact supply
There was another twist.
Shortly before Capitec launched its urgent application, Ubuntu had adopted a resolution placing itself into business rescue.
The Gauteng High Court subsequently ruled against Capitec, finding that the Companies Act's moratorium on legal proceedings against companies in business rescue protected Ubuntu's possession of the Porsche.
Ubuntu was liquidated in May 2024.
The SCA has now overturned the High Court decision.
Judge of Appeal Fayeeza Kathree-Setiloane said earlier court decisions made clear that business rescue could not prevent an owner from recovering property that a company neither owned nor lawfully possessed.
Once Capitec validly cancelled the agreement on November 17 2023, Ubuntu no longer had a lawful right to keep the Porsche.
“The moratorium in s 133 does not extend to vindicatory proceedings,” the court found.
The SCA said the High Court had been bound by existing precedent and had erred in dismissing Capitec's application.
Capitec's appeal was upheld with costs, with Ubuntu ordered to “forthwith deliver” the Porsche to the bank.
After two years of litigation, the chequered flag has finally fallen.
