Case Law[2025] ZAGPPHC 1221South Africa
Tsa Mamelodi Oils (Pty) Ltd and Others v Mandi Oil (Pty) Ltd and Others (20057/2025) [2025] ZAGPPHC 1221 (19 November 2025)
High Court of South Africa (Gauteng Division, Pretoria)
19 November 2025
Headnotes
the liquor licence has vested in the insolvent estate of the lessee. The Appellate Division found that the liquor licence was essential to the goodwill of the business. At 728 E-F the following is stated in this regard:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
South Africa: North Gauteng High Court, Pretoria
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## Tsa Mamelodi Oils (Pty) Ltd and Others v Mandi Oil (Pty) Ltd and Others (20057/2025) [2025] ZAGPPHC 1221 (19 November 2025)
Tsa Mamelodi Oils (Pty) Ltd and Others v Mandi Oil (Pty) Ltd and Others (20057/2025) [2025] ZAGPPHC 1221 (19 November 2025)
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sino date 19 November 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
CIVIL PROCEDURE – Interdict –
Misrepresentation
and appropriation
–
Owners
of goodwill attached to filling station business – Intention
to sell goodwill of business – Goodwill vests
in the
landlord – Respondents’ attempt to sell goodwill was
unlawful and prejudicial to applicants’ interests
particularly given pending sale – Continued
misrepresentation could jeopardize applicants’ ability to
deliver
vacant possession and undermine concluded sale –
Interdict granted.
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO:
200576/2025
(1) REPORTABLE:
YES
/NO
(2)
OF INTEREST TO THE JUDGES:
YES
/NO
(3)
REVISED.
DATE:
19 NOVEMBER 2025
SIGNATURE:
In
the matter between:
TSA
MAMELODI OILS (PTY) LTD
First
Applicant
TIYANI
VAVANUNA MBALATI N.O.
Second
Applicant
BANGISITA
BERNARD MKHONDO N.O.
Third
Applicant
GLORIA
GWEBU N.O.
Fourth
Applicant
and
MANDI
OIL (PTY) LTD
First
Respondent
GANDHI
PII MOGOLEGO
Second
Respondent
TOTALENERGIES
MARKETING SOUTH AFRICA (PTY) LTD
Third
Respondent
JUDGMENT
LABUSCHAGNE
J
[1]
The applicants applied for urgent relief pertaining to
a filling
station in Mamelodi. The first applicant is the owner of the
land on which a filling station has been operated
for 16 years by the
first respondent and its predecessors in terms of lease agreements.
[2]
The second, third and fourth applicants are trustees
of a family
trust (the Mbalati Trust) which entered into a lease agreement with
the first respondent, leasing the filling station
and certain
outbuildings to the first respondent. This lease has run from
2019 to November 2024 and expired (according to
the applicants) on 01
November 2024. The respondents contend that it has extended the
lease to 2029. This is disputed
by the applicants. There
are pending eviction proceedings in terms of which the applicants
seek to evict the respondents
for, inter alia, failure to pay rent.
[3]
The applicants contend in argument that one of the suspensive
conditions of the lease was not complied with and the lease is
consequently invalid. The suspensive condition relates to the second
respondent binding himself as surety for the liabilities of the first
respondent. This is not an issue before me but before the
court
hearing the eviction application.
[4]
Attached to the application was a letter of 08 October
2025, in terms
of which the first respondent confirmed that it would not be renewing
the lease beyond 2029 and intends selling
the goodwill of the
business it had built up over 16 years for R18,5 million. The
respondents offered the applicants a right
of first refusal to
purchase the goodwill and gave them 90 days within which to respond.
[5]
In an answering letter the applicants retorted that the
goodwill was
not attached to the respondents but belongs to the family trust as
lessor.
[6]
The applicants consequently seek urgent relief restraining
the
respondents from representing that they own the goodwill, in their
attempts to sell the business. The first respondent is intent
on
selling the goodwill for its own benefit. The respondents argue that
the 90 days given the applicants to purchase the goodwill
has not
expired. If this is an indication that the respondents will only
thereafter offer the business and its goodwill to outside
parties,
then the applicants would not be able to be in court timeously to
interdict such conduct in the normal course. I am therefore
satisfied
that the matter is urgent.
[7]
The respondents have raised a number of points
in limine
.
These include urgency. Urgency is not a point in limine. It is an
essential part of the onus of an applicant in urgent court
proceedings. I have dealt with urgency. The second point
in
limine
is that the first applicant lacks
locus standi
.
It is merely the owner of the property and is not a party to the
lease agreement. It however does not seek any relief either.
As owner
of the land its proprietary rights are implicated by a threatened
sale of the business by the respondents. It therefore
has locus
standi as an interested party.
[8]
The respondents thirdly contend that the Mbalati Family
Trust is not
properly before court. It has three trustees but the resolution
pertaining to the institution of the application
was signed by only
two of the trustees. The fourth applicant (who is the third
trustee) did not sign it, although she is
cited as a party to the
court proceedings. She did file a confirmatory affidavit supporting
the application.
[9]
The fourth point
in limine
is that the applicants effectively
seek final relief but have not pleaded all the elements of a final
interdict. The respondents
contend that the applicants have not
established a clear right, that irreparable harm is reasonably
apprehended and that they do
not have an alternative remedy.
THE FACTS
[10]
From the papers it is apparent that the respondents believe that the
goodwill of the filling station vests in the first respondent and
intend realising that goodwill for its benefit.
[11]
The Mbalati Family Trust concluded a lease agreement with the first
respondent
on 09 August 2019. In terms thereof, the first
respondent leased the premises where the filling was situated on Erf
1[...],
Mamelodi, including the building used as staff facilities.
The premises would only be used for the sale of petrol, diesel,
paraffin, sale of other petroleum products and for purposes ancillary
to the service/filling station business, including a convenience
store.
[12]
The lease period run out on 01 November 2024. There is a
dispute
on whether the lease was extended or not. The
applicants contend that it was not extended, or validly extended,
whilst the
respondents contend that it was extended until 2029.
[13]
The first applicant sold the immovable property by public auction on
13 March 2024 and the buyer is avoiding taking transfer of the
immovable property, whilst the respondents remain in possession.
[14]
On 08 October 2025 the attorney for the first respondent wrote a
letter
paragraph 2 of which reads:
“
2.
Our client further instructs us that it does not intend to renew the
lease
agreement beyond 2029 and it therefore intends to sell its
positive brand reputation and goodwill for an amount R18 500 000.00
(eighteen million five hundred thousand Rand) to any suitable buyer,
however your client is afforded the right of first option
to purchase
the business together with its intangible asset, being its goodwill,
within a period of 90 days (ninety days) of receipt
of this notice.”
[15]
In a letter in response to the aforesaid, the attorney for the
applicants
advised that the position of the applicants is that the
lease was invalid and that no renewal could therefore have taken
place.
In response to the offer of the sale of goodwill, the
following is stated:
“
8.
In light of our client’s application (
for
eviction - my insertion)
and
the relief sought herein, concerning as your client puts it, ‘its
positive brand reputation and goodwill’, this
letter serves to
inform your client that the Total reputation and goodwill belongs to
our client and cannot be sold by your client,
as our client is in the
process of selling it. We therefore have instructions to demand
confirmation from your client that
it will immediately refrain from
marketing the brand reputation and goodwill and that your client will
not sell the brand reputation
and goodwill, at least pending the
final adjudication of our client’s application and the relief
sought therein.”
[16]
In
Slims (Pty) Ltd and Another v Morris NO
1988 (1) SA 715
(A), the Appellate Division (as it then was) dealt with a lessee who,
upon termination of a lease, only retransferred the property,
but not
a liquor licence. The question arose to whom the goodwill
attaches. The Court
a quo
had held that the liquor
licence has vested in the insolvent estate of the lessee. The
Appellate Division found that the liquor
licence was essential to the
goodwill of the business. At 728 E-F the following is stated in
this regard:
“
In
Receiver
of Revenue Cape v Cavanah
supra
Innes ACJ in fine at p 465 that:
‘
Insofar as a
licenced house is concerned, the connection between the licence and
the goodwill is so close that the cases in which
they are separately
dealt with must be few indeed. And it was the circumstances
which probably led to Dr Greer’s candid
admission that there
was no distinction between them …
…
Take away the
license and the goodwill perishes, because the business of the
Phoenix Hotel as a licensed hotel cannot be carried
on at all.”
[17]
At 279 A the Appellate Division stated per Nicholas AJA:
“
The ownership
of the goodwill, an inseparable part of which is the privilege of
selling liquor, is a
jus
in re
,
which exists independently of any
jus
in personam
constituted
by the lease.
The trustee has
restored to the lessor only the premises. Until he redelivers
also the goodwill (which requires that he takes
the steps necessary
to retransfer the liquor license), the Phoenix Hotel will not have
the enjoyment of the goodwill attached to
a licensed hotel, and will
be deprived of that asset.
(Cf. Bosman, Powis and
Company v Norton (supra) at 207).”
[18]
The goodwill attaches to the premises, and those premises need to be
restored at the termination of the lease. By parity of
reasoning that includes the restoration of an empowering certificate
to operate a filling station in terms of the Minerals Resources and
Petroleum Products Act
[19]
I was referred to
Rissik Street One Stop CC t/a Rissik Street
Engen and Another v Engen Petroleum Ltd
2024 (4) SA 447
(CC) as
countervailing authority. I have read the judgment, but it is
not on point. In that matter Engen had no claim to
the goodwill but
might have received the benefit of it in a sale by evicting Rissik
Street One Stop. This was found to be
inequitable, and Rissik
Street One Stop was permitted to remain in possession of the filling
station pending a sale so that it
can realise the goodwill it had
built up over the years. In the present matter the question is
different.
[20]
My conclusion is that goodwill vests in the landlord, the Mbalati
Trust,
and not the first respondent. To this extent, the applicants
had cause for concern.
[21]
However, a point
in limine
was taken that the landlord (the
family trust) was not properly before court and could therefore not
assert the rights. The second,
third and fourth applicants are the
trustees of the family trust and the trust is the lessor in terms of
the written lease agreement
with the first respondent.
[22]
The respondents sought information in terms of Rule 35(12) and
obtained
a copy of a resolution pertaining to the current proceedings
passed by the majority of the trustees.
[23]
The document is headed “special resolution” and reads as
follows:
“
It is hereby
agreed, on the 15
th
day of
September 2025, by the majority of the trustees of:
Mbalati Family Trust
(Registration Number
IT208/11) that:
1.
Any action/application deemed necessary may be instituted against
Madi Oil (Pty) Ltd and its directors on behalf of the Mbalati Family
Trust.
2.
The Mbalati Family Trust authorises Tiyani Vavanuna Mbalati to act
As the duly authorised agent and fully authorised representative,
and
that he may sign any documentation on behalf of the Mbalati Family
Trust concerning any instructions given to Jordaan &
Smit
Attorneys in respect of any legal matter herein.
signed
TV MBALATI
Trustee
signed
BB MKHONDO
Trustee”
[24]
From the aforesaid it is apparent that two of the three trustees have
signed. In terms of the Trust Deed, the founder was required to
be one of the decision makers until he died. He passed
away in
2012. The difficulty however is the absence of the signature of
the third trustee on the resolution.
[25]
The applicants’ counsel contends that the Trust Deed of the
family
trust permits resolutions to be taken by majority. This
is in accordance with clause 8.2 of the Trust Deed. The
challenge
however does not relate to the validity of the vote but to
the validity of the resolution to institute the current proceedings
on behalf of the family trust. The first is an internal matter. The
second external.
[26]
It bears noting that the first applicant’s only involvement in
these proceedings is as owner of the land, but not as lessor.
It would therefore not have the entitlement to claim the goodwill
that vests in the family trust.
[27]
Counsel for the respondent relied on the SCA case below in support of
his contention that the trust is not properly before court.
[28]
In
Shepstone and Wylie Attorneys v De Witt N.O. and Another
2023
(6) SA 419
(SCA) the following is stated:
“
[22]
In
Steyn
and Others NNO v Blockpave (Pty) Ltd
2011
(3) SA 528
(FB) (Blockpave), the court succinctly drew the
distinction between internal and external business with outsiders.
The court
held that although trustees may disagree internally on a
matter, they are prohibited from disagreeing externally.
Internal
matters may be debated and put to a vote, thereafter the
voice of the majority will prevail. However, in so far as the
Trust
is required to deal with external business all trustees are
required to participate in the decision-making.
[23]
In
Coetzee v Peet Smit Trust en
Andere
2003 (5) SA 674
(T), the court also held that unless the trust deed contained
provisions to the contrary, there was legally no reason to follow
a
different rule. In the case of trusts, joint and unanimous
conduct in the alienation, handing and management of trust assets
was
a prerequisite.”
[29]
At paragraph [25] the following was stated:
“
[25]
As held by this Court in
Le
Grange
,
the trustees, when dealing with trust property, are required to act
jointly. Even when the trust deed provides for a majority
decision, the resolutions must be signed by all the trustees. A
majority of the trustees may take a valid internal decision,
but a
valid resolution that binds a trust externally must be signed by all
trustees, including the absent or the dissenting trustee.
It is
a fundamental rule of trust law, which this Court restated in
Nieuwoudt
NO and Another v Vrystaat Mielies (Edms) Bpk
[2004] 1
All SA 396
(SCA), that in the absence of a contrary provision in the
trust deed, the trustees must act jointly if the Trust estate is to
be
bound by their acts. The rule derives from the nature of the
trustees’ joint ownership of the trust property.
Since
co-owners must act jointly, trustees must also act jointly.
[26]
It therefore follows that where a trust deed requires that the
trustees must act
jointly if the Trust is to be bound, a majority
decision will not bind the Trust where one of the trustees, such as
in this case,
did not participate in the decision-making. … In
the case where the majority decision prevails, all trustees are still
required
to sign the resolution. In Land and Agricultural
Development Bank of SA v Parker and Others (Parker)
2005 (2) SA 77
(SCA);
[2004] 4 All SA 261
(SCA), this Court held that when
dealing with third parties, even if the Trust instrument stipulates
that the decision can be made
by the majority of trustees, all
trustees are required to participate in the decision making and each
has to sign the resolution.
The court in Blockpave restated the
aforesaid principles in Parker. It went on to state that a
trust operates on resolutions
and not on votes. This is
significant as the Trust does not explicitly provide that external
decisions may be taken by a
majority vote.”
[30]
If this were the current position, the Mbalati Trust would not
properly
be before court. However, the SCA decision in
Shepstone and Wylie was overturned by the Constitutional Court in
August 2025.
The distinction between internal decisions and outward
execution thereof was found to be invalid. By contrast, the question
was
whether the trust deed required unanimity or whether it permitted
decisions to be taken by a majority.
[31]
In
Shepstone and Wylie Attorneys v Abraham Johannes de Witt NO and
other
[2025] ZACC 14
(1 August 2025)
the Constitutional Court
stated per Tolmay AJ from par [53]:
“
[53]
…
In terms
of
Parker
and
Nieuwoudt
,
however, the principle is that a trust deed can provide for something
other than joint action by trustees, and it can do so through
a
majority clause. The Supreme Court of Appeal majority therefore
construed the principle narrowly with no authority for doing
so.
[54]
The Supreme Court of Appeal introduced an unwarranted distinction
between decisions of trustees in relation to internal and external
matters, and in so doing placed an incorrect restriction on
the
proposition that the requirement of joint action can be modified by a
trust deed. The Supreme Court of Appeal also misconstrued
provisions
which are routinely encountered in trust deeds, even if precise
formulations vary.
[55]
The Supreme Court of Appeal majority conflated two distinct actions:
the signing of the deed of surety by the two trustees, and a written
(round robin) resolution authorising the signing of the deed
of
suretyship. The majority stated that the resolution of the two
trustees at the 25 May 2013 trustee meeting and the signing of
the
deed of surety were — ‘contrary to the provisions of
clause 13.4 of the trust deed, which provides that a written
resolution signed by all trustees for the time being or their
respective alternates or proxies shall be as effective as a
resolution
taken at a meeting of trustees.’
[56]
Contrary to what the Supreme Court of Appeal majority said,
the
resolution to sign the deed of surety was not a written resolution in
terms of clause 13.4. It was a resolution taken at a
quorate meeting
of trustees in terms of clause 13.1. The resultant signing of the
deed of surety by the two trustees was not a
resolution. It was
merely the execution of the deed following the resolution. Clause 14
of the Trust Deed provides that such execution
can be done by “at
least two trustees”. That the resolution was not a clause 13.4
resolution is clear from the fact
that the resolution is recorded in
the minutes of the 25 May 2013 meeting.
Honoré’s
South African Law of Trusts
82
states in this regard that
Blockpave — ‘
sought to draw a distinction between
trustee decisions (as reflected in, for example, the minutes of
trustee meetings) and formal
‘resolutions’ signed by the
trustees. The judgment creates the impression that only the latter
would bind a trust.
However, there is no rule of trust
administration that requires such a degree of formality’
.”
[32]
In these circumstances, the resolution by two trustees was a valid
resolution
at a quorate meeting and the written and signed resolution
is consistent with clause 8.2 of the trust deed. The institution of
the current proceedings is in terms of a valid resolution of the
family trust.
[33]
This matter demonstrates a truism in advocacy, and that is to check
whether
the cases relied upon have not been overruled. The
exhilaration of finding support from the SCA may cloud the urgency of
the need
to check whether the case is still good law. It must
nevertheless be done in all matters, even in urgent matters.
[34]
As far as the last argument in limine is concerned, the founding
papers
do not expressly deal with each element of an interdict.
However, the facts of this matter are self-evident and each element
is
covered from par 45-51 of the founding affidavit.
[35]
The Mbalati Trust as owner of the goodwill of the filling
station
has a right to protect it against misrepresentation and
appropriation. If interdictory relief is not granted, the respondents
will
continue asserting their claim to the goodwill, thereby
hampering the applicants’ attempts to provide vacant possession
to
the buyer who is waiting in the proverbial wings. The delay in
obtaining redress creates may scupper the concluded sale at
auction of the premises.This constitutes a reasonable apprehension of
irreparable harm. And the applicants cannot prevent the continuation
of the respondents’ claims to the goodwill other than by
obtaining urgent relief. Despite the shortcomings in formulation,
the
facts cover the essential features of interdictory relief.
[36]
In the premises the following order is made:
1.
The matter is found to be urgent for purposes
of Rule 6(12).
2.
The first and second respondents are restrained
from representing to
the public or third parties that the first respondent and/or second
respondent are the holders, alternatively
the owners of the positive
brand reputation and goodwill attached to the business known as
Totalenergies Mamelodi East (previously
known as Total Mamelodi
East).
3.
The costs of the application are to be paid
by the respondents
jointly and severally, the one paying, the other to be absolved, on
Scale C.
LABUSCHAGNE
J
JUDGE
OF THE HIGH COURT
APPEARANCES:
COUNSEL
FOR APPLICANT
: ADV KRUGER SC
INSTRUSCTED
BY
: JORDAAN & SMITH INC
COUNSEL
FOR RESPONDENT
: ADV KWINDA
INSTRUCTSED
BY
: MAGOGELO ATTORNEYS
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