Zwelinzima Vavi, the general secretary of the South African Federation of Trade Unions, and his wife, Norah Noluthando Vavi, successfully averted Standard Bank’s attempt to seize their luxurious Sandton home.
The bank’s attorneys approached the Johannesburg High Court on Tuesday, requesting that a bond debt of R1.68-million be paid off, with R85 000 still outstanding.
The Vavis’ luxurious home, located in one of Johannesburg’s picturesque suburbs, faced foreclosure after the couple fell behind on their mortgage payments by approximately four months three years ago.
However, Judge Stuart David James Wilson stated that the couple has since made amends, paying their monthly installments for 18 months and reducing their arrears from R170 000 to R85 000.
Wilson, citing a landmark 2011 Constitutional Court ruling (Gundwana v Steko Development), said foreclosure must be proportionate, meaning the bank’s need to get paid must outweigh the Vavis’ right to keep their home.
He further said that Standard Bank did not present the case.
Application postponed indefinitely
“Standard Bank has placed nothing before me that explains why execution against the Vavis’ home is a proportionate means of recovering the arrears,” said Wilson.
“It is at least possible that the Vavis have baulked at paying legal costs of twice the value of their current arrears.
“It seems to me that the Vavis would be entitled to rehabilitate the loan agreement by paying their arrears and then debating the reasonableness of those costs with Standard Bank as a separate issue.”
In the absence of more information, said the judge: “I cannot presently conclude that foreclosure against the Vavis’ home is a proportionate means of liquidating their arrears.
“The application will be postponed sine die [a matter is adjourned or postponed indefinitely, without a specific date set for resumption].
“Standard Bank may renew the application if and when it adduces evidence that foreclosure would be proportionate.”
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