- Gardner and Another v Margo and Another0.10 MB
The Supreme Court of Appeal upheld the appeal against the order of the South Gauteng High Court (Case no 511/09) and set aside the order of the court a quo, however, it dismissed the appeal against the order of the South Gauteng High Court (Case no 564/09).
Gardner owed Margo a certain amount of money and the SCA in an earlier judgment (Gardner & another v Margo 2006 (6) SA 33 (SCA)) ordered Gardner and OTR Mining Ltd to pay Margo a certain amount plus interest thereon at the rate of 15.5% per annum from 1 September 1998 to date of payment. The dispute was on whether or not the in duplum rule was applicable. Two conflicting judgments were delivered by the South Gauteng High Court on the same set of facts. The SCA found that the in duplum rule was applicable. In general terms it simply means that a creditor is not entitled to claim interest in excess of the capital outstanding. The nub of the judgment of the SCA is that the in duplum rule is suspended if and when proceedings are pending.