Court rules against Standard Bank in Vavi foreclosure case

THE Gauteng High Court has rejected an application by Standard Bank to authorise the foreclosure of a mortgage bond it granted over the primary residence of South African Federation of Trade Unions (Saftu) general secretary Zwelinzima Vavi and his wife Norma.

- ZELDA VENTER

Standard Bank asked for a money judgment and leave to execute it against the residence of the Vavis.

Their indebtedness arises from a mortgage bond passed over the property in Sandton, Johannesburg.

Judge Stuart Wilson noted that a court asked to authorise the foreclosure against a debtor's primary residence must be satisfied that to do so would be proportionate.

"Foreclosure is generally proportionate when there is little meaningful prospect of the debt secured against the residence being recovered in some other way, and when the interest of the creditor in obtaining payment outweighs the interest of the debtor in retaining ownership of their home," he said.