Eskom v Rollomatic Engineering (Edms) Bpk 1992 (2) SA 725 (A)

Eskom v Rollomatic Engineering (Edms) Bpk 1992 (2) SA 725 (A)

Issue: Whether a mortgagor can retain possession of property that is subject to a mortgage bond even after the mortgagee has obtained an order of ejectment.

Facts:

Eskom (the mortgagee) advanced a loan to Rollomatic Engineering (Edms) Bpk (the mortgagor). The mortgagor agreed to secure the loan by registering a mortgage bond over its property.

The mortgagor defaulted on the loan and Eskom obtained an order of ejectment against the mortgagor. The mortgagor refused to vacate the property and Eskom applied to the court for an order to evict the mortgagor.

Key Facts:

• Eskom advanced a loan to Rollomatic Engineering.
• Rollomatic Engineering agreed to secure the loan by registering a mortgage bond over its property.
• Rollomatic Engineering defaulted on the loan and Eskom obtained an order of ejectment against Rollomatic Engineering.
• Rollomatic Engineering refused to vacate the property and Eskom applied to the court for an order to evict Rollomatic Engineering.

Court's Decision:

The Appellate Division of the Supreme Court of South Africa (AD) held that Eskom was entitled to evict the mortgagor from the property. The AD reasoned that a mortgagee is entitled to possession of the mortgaged property once the mortgagor has defaulted on the loan and the mortgagee has obtained an order of ejectment.

The AD also reasoned that it would be unfair to Eskom if the mortgagor was allowed to retain possession of the property even after Eskom had obtained an order of ejectment. The AD found that Eskom had a legitimate interest in protecting its security interest in the property.

Application of the Law to the Facts of the Case:

The AD applied the law to the facts of the case and found that Eskom was entitled to evict the mortgagor from the property. The AD ordered the mortgagor to vacate the property and to pay Eskom's costs.

Conclusion:

The AD's decision in Eskom v Rollomatic Engineering (Edms) Bpk 1992 (2) SA 725 (A) is a significant case because it clarifies the law relating to the rights of mortgagees and mortgagors after the mortgagee has obtained an order of ejectment. The decision emphasizes that a mortgagee is entitled to possession of the mortgaged property once the mortgagor has defaulted on the loan and the mortgagee has obtained an order of ejectment.

The decision also provides guidance to mortgagees and mortgagors on their rights and obligations. Mortgagees should be aware that they are entitled to evict mortgagors from mortgaged property once they have obtained an order of ejectment. Mortgagors should be aware that they are not entitled to retain possession of mortgaged property even after a mortgagee has obtained an order of ejectment.