Case Law[2025] ZAGPPHC 1083South Africa
Intergame Properties (Pty) Ltd and Others v GO2 H2O (Pty) Ltd (34726/2022) [2025] ZAGPPHC 1083 (29 September 2025)
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Intergame Properties (Pty) Ltd and Others v GO2 H2O (Pty) Ltd (34726/2022) [2025] ZAGPPHC 1083 (29 September 2025)
Intergame Properties (Pty) Ltd and Others v GO2 H2O (Pty) Ltd (34726/2022) [2025] ZAGPPHC 1083 (29 September 2025)
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sino date 29 September 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
No: 34726/2022
(1) REPORTABLE: NO
(2)
OF INTEREST TO THE JUDGES: NO
(3)
REVISED: NO
DATE:
29 September 2025
SIGNATURE:
In
the matter between:
INTERGAME
PROPERTIES (PTY) LTD
First Applicant
INTERNATIONAL
GAME TRADING CC
Second Applicant
GLEN
AFRIC SPRINGWATER CC
Third Applicant
and
GO2
H2O (PTY) LTD
Respondent
JUDGMENT
GOUWS,
AJ
INTRODUCTION
[1]
This application concerns the status of two written lease agreements,
respectively
concluded between the first applicant and the
respondent, and the first through third applicants and the
respondent, during July
2020.
[2]
It is common cause that both leases contained a series of suspensive
conditions which
had to be fulfilled within a “reasonable
period”, failing which the agreements would automatically
lapse.
[3]
The applicants’ case is that none of these conditions were
fulfilled, and that
the agreements have accordingly lapsed.
Declaratory orders relating to both agreements are sought to this
effect.
[4]
In respect of the first lease agreement, which concerned the lease of
water rights
and a portion of a six-hectare portion of land, the
suspensive conditions included:
[4.1] the obtaining of
all necessary licences and permits required by South African law, the
Department of Health and the Department
of Water Affairs;
[4.2] the
submission of an application for an extension of the existing water-
use licence, which must include reports of
a geologist and an EIA
(environmental impact assessment) report;
[4.3]
the granting of all registrations that may be required by local
council;
[4.4] application
and registration with the South African National Bottled Water
Association (“SANBWA”);
[4.5]
installation of a constant waterflow monitoring system;
[4.6] the
appointment of a land surveyor to survey and record the co-ordinates
of the leased portion to be registered with
the deeds office;
[4.7]
the registration of servitudes relating to water use;
[4.8] the
registration of servitudes for roads and excess roads to the existing
factory; and
[4.9] the obtaining
of special zoning, including business rights for the factory,
bottling, distribution, residential and/
or other.
[5]
In respect of the second lease agreement, the suspensive conditions
were similar:
[5.1] the obtaining
of requisite licences required under South African law, and permits
from the Department of Water Affairs
and the Department of Health;
[5.2]
the application for an amended or extended water-use licence;
[5.3]
obtaining all general registrations with the local council;
[5.4]
application and registration with SANBWA;
[5.5]
the installation of a flow monitoring system to regulate abstraction;
[5.6] appointment
of a land surveyor to record and survey the co-ordinates of the one
hectare, as well as six hectare portions
of the property to be leased
by the applicants.
ASPECTS
IN DISPUTE
[6]
The applicants’ case is advanced in broad terms: they allege
that the respondent
failed to comply with any of the suspensive
conditions.
[7]
The respondent, by contrast, deals with each condition individually.
It claims that
the monitoring system was installed in April 2021;
that SANBWA membership was already secured in 2019 and awaited
operational status;
that a provisional health approval was obtained
in August 2021; that professionals were appointed to prepare the
water-use application
and conduct the survey; and that preparatory
steps were taken regarding rezoning, building plans and environmental
approvals.
[8]
The respondent contends that the applicant prevented the fulfilment
of the outstanding
conditions by forcefully and unlawfully evicting
the respondent from the leased premises during July 2021, which made
further progress
impossible.
[8]
A further dispute concerns the effect of clause 7 of the lease
agreement, which provides
that operations were to commence within
five months of occupation. The applicants, in the replying affidavit,
contends that this
period ought to be attributed also to the
suspensive conditions, meaning that 5 months constituted a reasonable
period within which
these conditions were to be fulfilled.
ANALYSIS
[9]
It is immediately apparent that several of the conditions are
described only in broad
and unspecific terms. The first condition
refers to the obtaining of “all necessary licences and permits
required by South
African law, the Department of Health and the
Department of Water Affairs”, but nowhere do the applicants
explain what compliance
would entail, or how long it would ordinarily
take to obtain whatever licenses and permits were required. The
second condition
relates to the application for extension of an
existing water-use licence, but no evidence is given as to the
ordinary duration
of such applications, or what would constitute a
reasonable period within which to prepare and submit such an
application. As to
registration with SANBWA, the applicants do not
explain what that process involves or the expected timeframe. For the
installation
of a constant water-flow monitoring system, there is no
indication of what would constitute a reasonable period to do this.
Similarly,
the registration of servitudes and the rezoning of land
are recorded, without reference to the steps involved or their
typical
duration.
[10]
In reply, the applicant contends that all of these conditions were to
be met within 5 months
from date of occupation, to with around
November 2020.
[10]
The respondent, for its part, admits that many of the conditions had
not yet been fulfilled.
It acknowledges that the extension of the
water-use licence, the land survey, the rezoning and the servitudes
remained outstanding.
It maintains, however, that some conditions
were in fact satisfied or substantially progressed. These include the
installation
of the water-flow monitoring system in April 2021,
SANBWA membership already secured in 2019, and a provisional approval
from the
Department of Health obtained in August 2021. The respondent
explains that the outstanding conditions could not be completed
because
it was forcibly removed from the premises in July 2021, after
which it had no further access.
[11]
In addition, the respondent contends that those conditions that
remain unfulfilled remain so
because of its unlawful eviction from
the premises in July 2021, which constituted a repudiation of the
agreements. The respondent
contends that these conditions ought to be
regarded as fictionally fulfilled.
[12]
It is apposite to first deal with the issue of fictitious fulfilment,
particularly against the
backdrop of the relief sought by the
applicants. The applicants seek final relief. In such cases the
well-established principle
in
Plascon-Evans Paints Ltd v Van
Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634E–635C
applies: Where disputes of fact arise on the affidavits, a final
order may be granted only if the facts
averred by the applicant,
which have been admitted by the respondent, together with the facts
alleged by the respondent, justify
such an order. Unless the
respondent’s version is so palpably implausible, far-fetched or
clearly untenable that it can safely
be rejected on the papers, the
Court must accept it for purposes of adjudicating final relief.
[13]
The disputes in this matter are real and material. The question of
whether the respondent was
unlawfully evicted is in dispute. The
question of whether this unlawful eviction resulted in the respondent
being unable to meet
all of the suspensive conditions is in dispute.
Whether certain conditions were fulfilled or partially fulfilled is
disputed. Whether
all of the conditions were to be fulfilled within 5
months from date of occupation of the premises is disputed. And what
constitutes
a reasonable period within which these conditions were to
be fulfilled is disputed.
[14]
On the affidavits, I find nothing far-fetched or palpably implausible
about the respondent’s
version that would warrant its rejection
on the papers. On that version, the respondent’s inability to
finalise certain approvals
was directly caused by the alleged
unlawful eviction.
[15]
It is a recognized principle that no party may benefit from its own
obstructive conduct. The
dictum of Wessels, CJ in
KOENIG V JOHNSON
&
CO.
Ltd
1935 AD 262
is instructive:
“
If it is the
fault of the person in whose favour the condition is inserted that
the condition cannot be fulfilled, the law considers
the condition to
have been fulfilled as against him. The nature of the contract is
always an important element. In some cases the
person benefitted by
the non-performance of the condition can sit still and do nothing to
assist in its fulfilment; in other cases
it is his legal duty to
assist in the condition being fulfilled; and in other cases if he
deliberately and in bad faith prevents
the fulfilment of the
condition in order to escape the consequences of the contract, the
law will consider the unfulfilled condition
to have been fulfilled as
against the person guilty of bad faith.“
[16]
The applicants deal with the proposition of fictional fulfilment by
denying the forced eviction,
but also by contending that the
conditions were required to be complied with within five months of
signature – namely by
December 2020 – and accordingly,
even if the forced eviction did occur later as alleged, it was not
the cause of the non-fulfilment.
Thus, so the argument goes, nothing
would turn on the forced eviction.
[17]
There are substantial difficulties with this proposition. First, a
5-month period that relates
to the fulfilment of the suspensive
conditions is not borne out by any express term in the agreement. The
five-month period is
sought to be attributed to the suspensive
conditions by the applicants, with reference to clause 7.2 of the
respective lease agreements,
which provide that the bottling plant
had to be operational five months after signature. Ergo, so the
argument goes, five months
was a reasonable time also for the
fulfilment of the conditions.
[18]
There is no evidence before me that would drive a conclusion that the
suspensive conditions were
all required to be fulfilled when the
plant became operational. I cannot simply derive from the affidavits
that conditions such
as zoning, business rights, registration of
servitudes for roads, and the appointment of a land surveyor, serves
as preconditions
for the plant becoming operational. It might very
well be that the plant is required to be operational before some of
the conditions
can be met. This corresponds to the assertions of the
respondent, where it contends that some of the compliances could only
be
achieved when the plant became operational. Date off operation
does accordingly not automatically correspond to date of fulfilment
of one or more of the suspensive conditions.
[19]
The respondent also points out that the 5- month period, as sought to
be attributed to the suspensive
conditions through clause 7.2, is
wholly insufficient, when measured against statutory prescribed
timelines. Water-use licence
amendments ordinarily take more than 12
months. Rezoning applications under SPLUMA often take a year or
longer, and environmental
approvals under NEMA require extensive
procedural compliance extending well beyond five months. Similarly,
SANBWA certification
presupposes an operational plant, which itself
could not be realised within that short period.
[20]
In addition, the reliance on the 5-month period in any event carries
little or no probative value,
as it was advanced for the first time
in the replying affidavit. It is trite that a case must be made out
in the founding papers,
and not in reply.
[21]
That leads to the second fundamental difficulty with the applicants’
case. The founding
affidavit does not enumerate what the conditions
are that was agreed to be met. I had previously remarked that some of
these conditions
are stated in a generalised manner. The term that
provides for the obtaining of “all necessary licenses and
permits required
under South African law” serves as an example.
What would those be? This observation is somewhat mitigated by the
respondent
dealing pertinently in the answering affidavit with what
exact licenses or approvals were contemplated by the parties.
[22]
More significant, is that the conditions that were enumerated are
furthermore fundamentally different.
It stands to reason that what
would constitute a reasonable time for fulfilment of one condition
would not necessarily relate to
another. Each would be subject to
independent evaluation. I have not been favoured with any evidence
that would allow for objective
analysis as to what would constitute a
reasonable time for fulfilment of the separate conditions. The
applicant has resided with
a blanket allegation that five months was
reasonable for all of the conditions to be met.
[23]
I have already dealt with the difficulties that I have with this
submission.
[24]
The onus lies on the applicants to establish what the conditions
were, what would constitute
a reasonable time for fulfilment of each
condition, and ultimately that the conditions were not fulfilled
within a reasonable time.
Absent express agreement between the
parties as to when the conditions are to be fulfilled, and without
evidence showing, for example,
how long it should reasonably take to
obtain a water-use licence amendment, to complete rezoning, to secure
environmental authorisations,
or to obtain SANBWA operational
compliance, I cannot make such findings. The respondent, by contrast,
drew attention to statutory
timelines that relate to some of these
conditions that typically extend beyond five months.
[25]
As I had previously remarked, the application is plagued by a myriad
of factual disputes that
ought more appropriately to be determined by
a trial court. Absent such a referral, and applying
Plascon-Evans
,
I am constrained to accept, for purposes of determination of this
application, the respondent’s version that the applicants’
eviction prevented fulfilment of those suspensive conditions that
remain unfulfilled. On this version, the applicants would not
be
entitled to rely on the non-fulfilment of the conditions, having
themselves caused the non-fulfilment through their intentional
conduct.
[23]
In addition, the applicants have failed to discharge the onus of
illustrating, in the founding affidavit, the exact nature
and extent
of the conditions that were to be fulfilled, what a reasonable time
was within which each would have to be fulfilled,
and correspondingly
that such a reasonable time has lapsed for each condition.
[18]
In the result, I cannot find that the agreements have lapsed as
prayed for.
Resultantly
I make the following order:
1.
The application is dismissed.
2.
The applicants, jointly and severally, are ordered to pay the
respondent’s
costs of the application on Tariff scale B.
SG
GOUWS
ACTING
JUDGE OF THE HIGH COURT, PRETORIA
APPEARANCES:
FOR
APPLICANTS:
ADV DA DE KOCK
Cell:
0833248125
Email:
danelo@gkchambers.co.za
Instructed
by:
CLARINDA KUGEL ATTORNEYS
Tel: 012 344 6579
Email: johan@kugel.co.za;
assistant@kugel.co.za
FOR
RESPONDENT: FJ NEL
Cell: 0829757592
Email:
fj@clubadvocates.co.za
Instructed
by :
BARNARD & PATEL INCORPORATED
Email:
litigation@bpinc.co.za
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