For the Trustee to succeed with its CI claim the Trustee had to prove a the

For the trustee to succeed with its ci claim the

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For the Trustee to succeed with its CI claim, the Trustee had to prove: (a) the amount had been transferred or paid by him or his agent to the bank; (b) that such payment had been indebite (i.e. that there had been no legal or natural obligation or any reasonable cause for the payment); and (c) That it had been paid by mistake. RATIO: The Trustee failed on the following requirements: The bank did not make payment under a mistaken belief that the payment was owed. The bank did not act as an agent of the insolvent or Trustee at time of insolvency but rather made payment/transfer based on a guarantee (legal obligation/natural obligation existed) that was issued one year earlier (guarantee). The payment was not indebite, but owed (guarantee).
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Nkosi v Totalizator Agency Board [Below is sufficient] Facts: Clerk mistakenly thought that the ticket contained all the winning numbers and paid out the dividend due to the winner. Incorrect number mistake discovered, the respondent claimed the amount paid in error. A magistrate had found that the mistake of the clerk was reasonable and entered judgment in respondent's favour. Ratio: that all the elements of the condictio indebiti had been satisfied, that the appeal had to be dismissed with costs. Ratio: If something was due as a natural obligation and it was paid, it could not be recovered but if it is proved that it was undue/indebite as a natural obligation it CAN be recovered by the condictio indebiti .
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Nkosi v Totalizator Agency Board [Below is sufficient] EXPLANATION: The obligation to pay comes into existence as a ticket with correct sequence is presented. BUT the presented ticket did not contain the correct winning sequence. Therefore no natural agreement/obligation (no real debt) and payment was therefore made without it being due and the CI was applicable.
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  • Fall '18
  • Criminal defenses, condictio indebiti, Totalizator Agency Board

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