Gauteng Judge President Dunstan Mlambo has ordered a full Bench to sort out the tangle of inconsistent home repossession judgments, reports GroundUp. The landmark case to decide how banks should deal with home repossessions will now be heard on 28 and 29 August in the Gauteng High Court (Johannesburg). Mlambo also wants the court to establish under what circumstances judges should set reserve prices on repossessed homes.

Court rules were changed late last year to allow judges to set reserve prices when homes are sold at sheriffs' auctions to stop them being sold for a fraction of their worth. Despite this, some courts in Gauteng continue to authorise the auctioning of houses without reserve prices.

The forthcoming case will clarify how and when judges should set reserve prices.

As reported by GroundUp, Given Nkwane's home, valued at R470 000, was sold for R40 000 at auction by Standard Bank after he defaulted on his home loan. This prompted former Public Protector Thuli Madonsela to tweet, '... I consider this judgment to be grossly unjust and inequitable. It is a setback regarding social justice. Should this matter be taken on appeal, it would be great if all those concerned about social justice join in as amici curiae.'

Lungelo Lethu Human Rights Foundation, represented by the Legal Resources Centre, has been admitted as a friend of the court (there is no applicant in this case, only friends of the court). Lungelo Lethu founder King Sibiya argues in an affidavit that there should be clearer directions for judges in setting reserve prices, and only in exceptional circumstances should a home be sold without a reserve price.

Absa and Standard Bank, in their affidavits, say that sales in execution are a last resort, and describe the lengths to which they go to avoid home repossessions.

Full GroundUp report