The act, process, or practice of taking legal action in a court of law.
High Court & Magistrate’s Court Civil Litigation
Litigation is the process of taking legal action. At CNG, we focus on civil disputes between natural persons and those between juristic entities. The Court we chose to bring such disputes before, depends on the complexity of the matter, place where the parties live or carry on business and the amount of the claim.
The main difference is that the District Magistrates Court has a monetary jurisdiction of R200 000.00, the Regional Court of R400 000.00 and the High Court has jurisdiction of R400 000.00 or more.
A process whereby one party is unable to pay or owes a monetary debt to another. Debt Collection comes in a wide range of forms and amounts. Here at CNG Attorneys, we collect debt on behalf of a wide range of companies and individuals no matter how small. We ensure our Clients have the best chance of recovering their money owed.
One of the most common problems faced by Body Corporates is owners of Units who default in payment of their levy account. These levies are owed to the Body Corporate in Sectional Title schemes and/or Homeowners Associations. The money is used for the upkeep, maintenance and development of the building and common property such as swimming pools, staircases and other common areas.
CNG assists many Body Corporates in the collection of outstanding Levies either on a soft collection basis and/or by way of Litigation. We consider this area of law as one of our specialties.
In South African Law a landlord enjoys special protection in terms of the collection of arrear rental from his/her tenants (“lessee”). Such special protection is known as a landlord’s hypothec. This is a common law legal remedy, in addition to any contractual remedies, and in terms of which a landlord is authorised to attach the movable property of the tenant to secure payment of the outstanding rental.
CNG has a wide portfolio of Landlords and tenants that we assist on a monthly basis in respect of both commercial and residential properties. There are various ways to resolve these disputes and we always have our Clients best interests in mind before litigating.
Evictions and Ejectments
Eviction is the wide term used to legally evict natural persons from premises within which they reside. This eviction can take place for a number of reasons such as breach of the lease agreement by defaulting in payment of rental.
In matters concerning residential property, we have to follow what is known as the PIE Act (Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998).
Ejectment is the term used to legally evict natural or juristic persons such as companies from commercial premises that they occupy. Mostly common law is applied to Ejectments, making it a simpler procedure to follow.
Debt review, also known as debt counselling, is a process provided for in section 86 of the National Credit Act 34 of 2005 whereby a consumer may apply to Court, through a debt counsellor, to be declared “over-indebted”. It is a debt solution aimed at South African consumers who are unable to pay all their debts and manage their finances. This process is a form of debt rehabilitation for the consumer whereby a Debt Counsellor attempts to enter into a debt rearrangement agreement with the consumer’s creditors. In the event that the Court declares a consumer to be over-indebted, the debt rearrangement will be made an order of court.
CNG works closely with Debt Counsellors and the Banks to create the best possible solution for the restructuring of the consumer’s debt, while still ensuring the best repayment to the bank.
Foreclosures and Banking Law
Foreclosure is a legal process in which the lender (such as a Bank) endeavours to recover the money loaned to a borrower who has defaulted on a loan agreement and/or stopped making payment. This is done by the sale of assets used as collateral for the amount lent. For example, a mortgage bond may be registered over houses or land (immovable property) as security for a debt. When the borrower defaults on any term of loan agreement, the lender will foreclose on the property, make application to Court to declare the immovable property executable and attempt to sell the property in execution by way of a Sheriff’s auction.
These proceedings are usually brought out of the High Court due to the complexity of the loan agreements.
Applications for Liquidation and Sequestration
Liquidation The liquidation process is a process in which a company proceeds to declare itself as being insolvent or where a creditor of the company brings an application to court in order to have the company declared insolvent. The direct consequence of this is that the company may no longer proceed to operate its business. The Companies Act No 71 of 2008 and more specifically Sections 79 to 83, provides the procedure to be followed when winding up a company, either voluntarily or through a court order. It is a formal process declaring a business insolvent.
Sequestration Can be voluntary and involuntary. Voluntary sequestration is a process whereby a natural person/ individual or trust apply to court to be declared bankrupt and therefore incapable of managing their own affairs. Your estate is then surrendered to the court and a curator is appointed to manage the sale of assets and distribution of the funds/benefits to the creditors. It is a formal way of declaring a person insolvent.
Compulsory or involuntary surrender involves a Court Application where the Applicant is the creditor of the debtor and not the debtor himself. In terms of the Insolvency Act, Act 24 of 1936, a person is automatically rehabilitated after a period of 10 years has expired from date of provisional sequestration. Or, an insolvent can apply to Court for rehabilitation before the 10 years have expired.