In a split decision, the Constitutional Court yesterday dismissed an application for leave to appeal against the dismissal of an exception in the Western Cape High Court. The ground for the exception was that a statutory notice in terms of section 127 (2) of the National Credit Act (NCA) by ordinary mail is insufficient and not in compliance with the provisions of the NCA.

First Rand Bank instituted action against the applicant for payment of an amount of R224 880.27 allegedly outstanding in terms of a credit agreement under the NCA. The bank alleged that it caused a notice in terms of section 127(2) of the NCA to be sent to the applicant and attached a copy of the notice to the particulars of claim. After filing a plea that contained an allegation that the notice was sent by ordinary mail only, the applicant also filed an exception to the claim, as lacking averments necessary to sustain a cause of action.

Baliso v Firstrand Bank Limited t/a Wesbank [2016] ZACC 23