Court dismisses Standard Bank’s leave to appeal in Sekunjalo account closure case

IN ANOTHER victory for the Sekunjalo Group of companies, the Western Cape High Court yesterday dismissed – with costs – Standard Bank’s application for leave to appeal an interim interdict against the closure of the group’s bank accounts.

Judge Judith Cloete heard Standard Bank’s appeal application last Thursday as to why her ruling in September 2023 should not stand.

In an emphatic judgment yesterday, she denied Standard Bank on all five of its grounds for appeal.

She also ruled that the Sekunjalo Group, which has had judgments in favour and against it since she heard the case in 2023, “should be afforded the opportunity to place them, and their respective views on their implications, properly before the court at the next hearing”.

The 12-month interdict was handed down against Standard Bank in September last year, ordering it to refrain from closing the bank accounts, affecting the livelihoods of some 4 000 employees, until the finalisation of an Equality Court case in which Sekunjalo was challenging alleged unfair discrimination by banks in South Africa, as well as a constitutional challenge in the high court of unfair or unequal treatment, anti-competitive behaviour and discrimination.

Sekunjalo Investment Holdings chairperson Dr Iqbal Survé welcomed yesterday’s ruling.

“The past few years have been a roller-coaster of legal rulings.

“However, we are all delighted and relieved that we can now continue to go about our business without the immediate spectre of having accounts closed.

“Our main case at the Equality Court is drawing nearer, where we will be able to argue and convincingly demonstrate the abject discrimination we have been subjected to by these banks, not just Standard Bank.”

Judge Cloete also ruled that it was not in the interests of justice to grant the bank their appeal, since it “could have insisted on a much earlier date for this application to be heard”.

“Instead it waited for five months into a 12-month period.

“Second, it was only when I pointed out to its counsel during argument in reply that I could not dictate to the Supreme Court of Appeal when it should entertain the appeal if leave were to be granted that – suddenly – an undertaking was forthcoming from Standard Bank, despite its dire predictions on irreparable harm, not to close Sekunjalo Group’s accounts pending any SCA judgment.

“This is unacceptable, and in any event counsel for Sekunjalo Group were deprived of any prior notice of this undertaking and thus the opportunity to prepare and deal properly with it.”

Standard Bank said it noted the decision of the Western Cape High Court regarding its application for leave to appeal.

“Standard Bank is reviewing the judgment but can confirm that the ruling does not relate to the merits of its decision to terminate the banking relationship with the Sekunjalo Group. We are reviewing the judgment and considering next steps,” it said.