A health clinic’s bid to keep a R2.1m Porsche 911 Carrera S after defaulting on its finance agreement has failed, with the SCA ordering the luxury vehicle to be returned to Capitec Bank.

The court found Ubuntu Family Health Centre Grayston no longer had a lawful right to possess the Porsche after its agreement with Capitec was cancelled following its failure to service the R31 000 monthly instalment, says The Sowetan.

The judgment, handed down on Wednesday by Judge Fayeeza Kathree-Setiloane, centred on whether the clinic’s entry into business rescue could prevent Capitec from repossessing the vehicle.

According to the judgment, Capitec financed R2 115 000 of the Porsche’s R2.35m purchase price.

Ubuntu was required to repay the amount over 60 months, including 59 monthly instalments of R31 638.68, followed by a balloon payment of R634 500.

Ownership of the Porsche remained with Capitec until all amounts owed under the agreement had been paid, but the clinic fell behind on its payments.

Capitec sent a demand on 26 October 2023, giving Ubuntu seven days to settle its arrears. The clinic failed to do so.

On 17 November Capitec cancelled the agreement. Later that day, Capitec’s attorney and representatives went to the clinic’s premises in Sandton to take possession of the Porsche.

However, Ubuntu director Ridwaan Adams, who had made a R100 000 payment towards the arrears, refused to allow them to take the vehicle and declined to disclose where it was.

Kathree-Setiloane said Capitec had validly cancelled the agreement ‘prior to the commencement of business rescue. Ubuntu was thus in unlawful possession of the Porsche, entitling Capitec to institute vindicatory proceedings for its return.’

She said the law did not allow business rescue to protect a company from proceedings to recover property it no longer had a lawful right to possess. 

Full Sowetan report