SERI represents a Soweto family in a rescission application challenging a default judgment against them and the sale-in-execution of their home by a bank. In 2002, the Thwala's bond account went into arrears after both the husband and wife lost their jobs. Thereafter, First National Bank (FNB) obtained default judgment against them in August 2003, and then entered into payment arrangements with them in terms of which the bank undertook to stop the sale in execution subject to the Thwalas making further payments towards the bond. On receiving these further payments, FNB stopped the sale-in-execution and continued to run the bond account as if it had never obtained a default judgment. Seven years later, the bank reneged on its agreement and proceeded to sell the property in execution without first approaching a court for leave to do so. In February 2012, the new owner launched an eviction application against the family.
SERI has filed its heads of argument and FNB now has 10 days to file its heads, and then the matter will be allocated for hearing - possibly in May or June 2013.