Barclays Nasionale Bank Bpk v Registrateur van Aktes, Transvaal 1975 (4) SA 936 (T)

Barclays Nasionale Bank Bpk v Registrateur van Aktes, Transvaal 1975 (4) SA 936 (T)

Issue: Whether a bank can register a mortgage bond over a property that is owned by a company, even if the company is not registered as the owner of the property in the Deeds Office.

Facts:

Barclays Nasionale Bank Bpk (Barclays Bank) advanced a loan to a company, ABC (Pty) Ltd (ABC). ABC agreed to secure the loan by registering a mortgage bond over its property in the Deeds Office.

ABC was not registered as the owner of the property in the Deeds Office. However, ABC had a valid title to the property.

Barclays Bank attempted to register a mortgage bond over the property, but the Registrar of Deeds refused to register the mortgage bond because ABC was not registered as the owner of the property in the Deeds Office.

Barclays Bank brought an application to the Transvaal Provincial Division of the Supreme Court of South Africa (TPD), seeking an order compelling the Registrar of Deeds to register the mortgage bond. The Registrar of Deeds argued that he was not obliged to register the mortgage bond because ABC was not registered as the owner of the property in the Deeds Office.

Key Facts:

• Barclays Nasionale Bank Bpk (Barclays Bank) advanced a loan to a company, ABC (Pty) Ltd (ABC).
• ABC agreed to secure the loan by registering a mortgage bond over its property in the Deeds Office.
• ABC was not registered as the owner of the property in the Deeds Office. However, ABC had a valid title to the property.
• Barclays Bank attempted to register a mortgage bond over the property, but the Registrar of Deeds refused to register the mortgage bond because ABC was not registered as the owner of the property in the Deeds Office.
• Barclays Bank brought an application to the Transvaal Provincial Division of the Supreme Court of South Africa (TPD), seeking an order compelling the Registrar of Deeds to register the mortgage bond. The Registrar of Deeds argued that he was not obliged to register the mortgage bond because ABC was not registered as the owner of the property in the Deeds Office.

Court's Decision:

The TPD held that Barclays Bank was entitled to have the mortgage bond registered over the property, even though ABC was not registered as the owner of the property in the Deeds Office. The TPD reasoned that the Deeds Act does not require a property to be registered in the name of the owner before a mortgage bond can be registered over the property.

The TPD also reasoned that it would be unfair to Barclays Bank if it was unable to register the mortgage bond, since Barclays Bank had advanced a loan to ABC on the understanding that the loan would be secured by a mortgage bond over the property.

Application of the Law to the Facts of the Case:

The TPD applied the law to the facts of the case and found that Barclays Bank was entitled to have the mortgage bond registered over the property. The TPD ordered the Registrar of Deeds to register the mortgage bond over the property.

Conclusion:

The TPD's decision in Barclays Nasionale Bank Bpk v Registrateur van Aktes, Transvaal 1975 (4) SA 936 (T) is a significant case because it clarifies the law relating to the registration of mortgage bonds over properties that are owned by companies. The decision emphasizes that a bank can register a mortgage bond over a property that is owned by a company, even if the company is not registered as the owner of the property in the Deeds Office.

The decision also provides guidance to banks and companies on their rights and obligations when registering mortgage bonds over properties that are owned by companies. Banks should be aware that they are entitled to register mortgage bonds over properties that are owned by companies, even if the companies are not registered as the owners of the properties in the Deeds Office. Companies should be aware that they can register mortgage bonds over their properties in order to secure loans from banks.