The battle over a R2.35 million 2020 Porsche 911 Carrera S Coupé ended up before the Supreme Court of Appeal after a Sandton family health centre stopped paying Capitec over R31,000 per month.
IOL reports Ubuntu Family Health Centre Grayston financed the vehicle through Capitec, which questioned whether it was needed for the company’s business rescue proceedings.
The vehicle was financed over five years with monthly instalments of R31,638.68 and a final payment of R634,500, but became the centre of a Supreme Court of Appeal dispute instead.
Capitec financed R2.115 million of the purchase price, with the bank retaining ownership until the full amount was settled.
Ubuntu was meant to make 59 payments before settling the outstanding balloon in the 60th month, but fell behind on its instalments.
In October 2023, the bank issued a letter of demand giving the clinic seven days to settle the outstanding amount or face cancellation.
Ubuntu agreed to pay the outstanding amount, but failed to do so, prompting the cancellation of the agreement and Capitec seeking to recover the vehicle that was still its property.
When the bank visited the centre to take possession of the Porsche, Ubuntu’s director, Ridwaan Adams, who had paid R100,000 towards the arrears, refused to release the car or disclose its location.
The bank gave the clinic a further extension to raise funds and propose a settlement, when Adams offered to pay R500,000 to settle the arrears and repay the remaining debt over six months.
By 29 November 2023, Ubuntu entered business rescue, and when Capitec’s appointed auctioneer arrived on 1 December 2023 to collect the car, the director again refused access.
The business rescue ended in liquidation on 24 May 2024, and the High Court ruled that the clinic remained in lawful possession of the vehicle, protected by the business rescue moratorium.
The court ruled that unlawful possession involved conduct like theft, fraud or robbery, rather than losing a contractual right to retain the vehicle, which Capitec appealed.
The Supreme Court of Appeal rejected the High Court’s interpretation and ruled that the protection did not extend to Ubuntu’s Porsche since Capitec already cancelled the finance agreement before business rescue proceedings began.
It upheld Capitec’s appeal and ordered Ubuntu to return the Porsche immediately.
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