Case Law[2025] ZAGPPHC 1368South Africa
Limosa Investments 239 (Pty) Ltd and Another v Chrisal Investments (Pty) Ltd and Another (2025/024858 ; 2025/192741) [2025] ZAGPPHC 1368 (12 December 2025)
High Court of South Africa (Gauteng Division, Pretoria)
12 December 2025
Headnotes
and unequivocally reaffirmed the enforceability of oral agreements in African National Congress v Ezulweni Investments (Pty) Ltd [2023] ZASCA 159. In that matter, the ANC denied the existence of a binding contract on the basis that its internal supply chain procedures had not been followed and that its officials lacked authority to bind the organisation. The SCA dismissed these arguments, finding that the conduct and communications of the ANC’s representatives established actual authority, that consensus was proven, and that the extensive performance rendered under the oral agreement demonstrated the parties’ intention to contract.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Limosa Investments 239 (Pty) Ltd and Another v Chrisal Investments (Pty) Ltd and Another (2025/024858 ; 2025/192741) [2025] ZAGPPHC 1368 (12 December 2025)
Limosa Investments 239 (Pty) Ltd and Another v Chrisal Investments (Pty) Ltd and Another (2025/024858 ; 2025/192741) [2025] ZAGPPHC 1368 (12 December 2025)
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sino date 12 December 2025
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IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE NO: 2025-024858
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE: 12/12/2025
SIGNATURE
In the matter between:
LIMOSA
INVESTMENTS 239 (PTY) LTD
First
Applicant
ALAN
DOW
Second
Applicant
And
CHRISAL
INVESTMENTS (PTY) LTD
First
Respondent
METROPROP
(PTY) LTD
Second
Respondent
AND
CASE NO: 2025-192741
MUNICIPAL
EMPLOYEE PENSION FUND
First
Applicant
CHRISAL
INVESTMENTS (PTY) LTD
Second
Applicant
METROPROP
(PTY) LTD
Third
Applicant
And
LIMOSA
INVESTMENTS 239 (PTY) LTD
t/a
SPEED WORX
First
Respondent
ALAN
DOW
Second
Respondent
JUDGMENT IN THE
SECTION 18 APPLICATION
AND THE APPLICATION
FOR LEAVE TO APPEAL
TD SENEKE, AJ
INTRODUCTION
1.
The Applicants brought an application for
leave to appeal my whole judgment and court order dated 4 September
2025.
2.
The Respondents brought a section 18(3)
application on 17 October 2025 seeking the following orders:
“
1.
That non-compliance with the Rules of the above
Honourable Court with reference to timeframes and service be condoned
and that this application be heard as urgent in terms of Rule
6(12)(a).
2.
The operation and execution of the Judgment and the Order granted by
the Honourable Mr Justice
Seneke AJ against the Respondents on 4
September 2025 under case number 2025-024858 is not suspended and
shall be of full force
and effect and enforceable, pending:
2.1
the finalisation of the Application for Leave to Appeal launched by
the Respondents on 30 September 2025 against
the Order of Mr Justice
Seneke AJ dated 4 September 2025;
2.2
the finalisation of any subsequent appeal(s), or the expiry of the
time period for the launching of any subsequent
appeal(s).
3.
The Sheriff of the High Court is directed and authorised to execute
the Order granted by Mr Justice
Seneke on 4 September 2025.
4.
That the Respondents be ordered to pay the costs of this application
on the scale as between attorney
and client, alternatively that the
Respondents be ordered to pay the costs of this application including
the cost upon employment
of senior counsel to be calculated on Scale
C as contemplated in Rule 67A, read with Rule 69 of the Uniform Rules
of Court.
”
THE GROUNDS FOR
LEAVE TO APPEAL
3.
The grounds for leave to appeal are
contained in the notice of application for leave to appeal. The
grounds are stated as follows:
“
3.
Failure to Consider Material Facts and the Merits:
3.1
The Applicants respectfully submit that the Honourable Court erred in
failing to properly consider the totality
of the material facts and
merits placed before it. The Court declined to permit Counsel for the
Applicants an opportunity to advance
oral submissions, thereby
effectively denying the Applicants their fundamental constitutional
right to be heard.
3.2
This constitutes a breach of the audi alteram partem principle, which
lies at the heart of South African administrative
and judicial
proceedings. Section 34 of the Constitution of the Republic of South
Africa, 1996 enshrines the right of every person
to have any dispute
that can be resolved by the application of law decided in a fair
public hearing before a court. By limiting
the Applicants to the
papers, without affording oral submissions, the Court curtailed this
constitutional guarantee.
3.3
The Court further erred by confining its determination exclusively to
the expiry of the written lease agreement
in July 2024, thereby
failing to engage with the pleaded case advanced by the Applicants.
3.4
The Applicants’ case was not solely premised on the written
lease, but rather on a broader factual and
legal matrix, including
the existence of a longstanding verbal agreement concluded in 2002
between the late father of the Second
Applicant and Mr Christodoulou,
acting on behalf of the Respondents.
3.5
The existence of this agreement has, at various points, been
acknowledged by the Respondents themselves and
has been partially
performed, thereby rendering it legally enforceable under the common
law principles of contract as recognised
in South African
jurisprudence.
3.6
The Court also failed to appreciate that the Applicants’
refusal to sign the renewal addendum was not
an arbitrary act of
non-compliance but stemmed from a substantive and reasonable
objection to a clause requiring closure of their
car wash business.
3.7
This car wash operation has been conducted continuously on the
premises for more since 2003, forming an integral
part of the
Applicants’ business and livelihood. To require its closure as
a precondition to renewal amounted to an unreasonable
contractual
imposition, contrary to the doctrine of fairness and good faith
recognised in our contract law.
3.8
By disregarding these critical factual and legal considerations, the
Court effectively reduced the Applicants’
case to a narrow
technical enquiry regarding the expiry of the written lease, thereby
overlooking the broader equitable and legal
principles which
underpinned their right to remain in occupation. This failure to
consider the merits in their totality not only
undermines the
Applicants’ substantive rights but also offends against the
constitutional imperative of just and equitable
resolution of
disputes under Section 34 of the Constitution.
3.9
The Supreme Court of Appeal held and unequivocally reaffirmed the
enforceability of oral agreements in African
National Congress v
Ezulweni Investments (Pty) Ltd
[2023] ZASCA 159.
In that matter, the
ANC denied the existence of a binding contract on the basis that its
internal supply chain procedures had not
been followed and that its
officials lacked authority to bind the organisation. The SCA
dismissed these arguments, finding that
the conduct and
communications of the ANC’s representatives established actual
authority, that consensus was proven, and
that the extensive
performance rendered under the oral agreement demonstrated the
parties’ intention to contract.
3.10 Applying
the reasoning in Ezulweni to the present matter, the oral agreement
between Mr. Christodoulou and the Applicant’s
father bears all
the hallmarks of a binding and enforceable contract in South African
law:
3.10.1 Consensus: The
parties agreed to the terms of occupation and usage of the premises.
3.10.2 Performance:
Both parties honoured their obligations under the agreement
consistently for years, thereby confirming its binding
nature.
3.10.3 Authority by
conduct: Just as the ANC’s officials in Ezulweni were held to
have authority by virtue of their actions
and communications, so too
did the Applicant's father and Mr. Christodoulou, through their
longstanding dealings, demonstrate authority
to bind themselves and
their estates.
3.11 The Court a
quo’s failure to give proper weight to this oral agreement is
thus at odds with the clear legal principles
articulated in Ezulweni,
which affirm that oral agreements, once proven by consensus and
performance, are legally binding and enforceable
even in the absence
of written formalities.
3.12 It is
respectfully submitted that there are therefore reasonable prospects
of success on appeal, as the Court a quo misapplied
binding precedent
of the SCA and failed to apply the principles that oral contracts,
once honoured and performed, are valid and
enforceable under South
African law.
4.
(b) Ignoring Constitutional and Socio-Economic Rights
4.1
Section 22 - The Right to Trade, Occupation, and Livelihood
4.1.1
Section 22 of the Constitution of the Republic of South Africa, 1996,
provides that “Every citizen has the
right to choose their
trade, occupation or profession freely the practice of a trade,
occupation or profession may be regulated
by law.”
4.1.2 The
Constitutional Court has consistently emphasised that the protection
of section 22 is not confined to the
initial act of choosing a trade
or occupation, but also extends to the preservation of one’s
ability to continue such trade
or enterprise in a lawful manner.
4.2
The Applicants have, for over two decades, conducted lawful
commercial activities from the premises in question,
thereby securing
both their own livelihood and the sustenance of their dependants and
employees. The eviction order erroneously
granted by the Court below
directly impairs their constitutionally protected right to trade and
pursue a livelihood, in circumstances
where no lawful regulatory
basis, nor proportionate justification, was advanced.
4.3
Section 25(1) of the Constitution provides that “No one may be
deprived of property except in terms
of law of general application,
and no law may permit arbitrary deprivation of property.”
4.4
The Applicants’ long-standing possession of the premises, their
substantial improvements effected in
good faith, and their ongoing
business operations create legally cognisable property interests.
These are not merely contractual
in nature but are protected under
the broader conception of property in section 25, which extends to
occupation and improvements
that carry patrimonial value.
4.5
Beyond sections 22 and 25, the Honourable Court was constitutionally
obliged to take into account the socio-economic
implications of its
order on the Applicants’ employees and their dependants.
Section 9 guarantees the right to equality,
section 10 guarantees the
right to dignity, while sections 26 and 27 enshrine the rights of
access to adequate housing, health
care, food, water, and social
security.
4.6
The Applicants’ employees, who stand to lose their employment
as a direct result of the eviction, are
breadwinners and primary
caregivers within their households. Their loss of income necessarily
undermines the realisation of socio-economic
rights for themselves
and their families.
4.7
It is accordingly submitted that the Court a quo, by disregarding the
Applicants’ rights under sections
22 and 25 of the
Constitution, and by failing to weigh the socio-economic implications
of eviction within the broader constitutional
framework (sections 9,
10, 26, and 27), erred materially in both fact and law. The order
granted is not only constitutionally deficient
but also inconsistent
with the foundational values of dignity, equality, and freedom
enshrined in section 1 of the Constitution.
4.8. The
Honourable Court erred by failing to consider that the Applicants
possessed an existing right to occupation
following the exercise of
their right of renewal which was subsequently accepted by Respondents
and thus gave rise to a binding
legal right to continue occupation
whilst the parties negotiated the lease agreement in good faith.
5.
Selective Consideration of Arguments:
5.1
It is respectfully submitted that the Honourable Court materially
erred in law and fact by affording disproportionate
weight to the
submissions advanced by the Respondents, whilst manifestly failing to
engage with the Applicants’ detailed
arguments, authoritative
authorities, and the factual context presented. This selective
consideration constitutes a misdirection,
rendering the reasoning and
outcome of the Court constitutionally and legally unsound.
5.2
The exercise of judicial discretion in South African law is anchored
in the twin pillars of fairness and equity.
By failing to analyse or
address the Applicants’ submissions, the Court a quo abdicated
its duty to conduct a balanced and
comprehensive evaluation, thereby
transgressing the principles of rationality and procedural fairness
entrenched in our law.
5.3
The Constitution reinforces the imperative of fair adjudication in
section 34, which guarantees “the
right to have any dispute
that can be resolved by the application of law decided in a fair
public hearing before a court.”
The Court’s omission to
properly consider the Applicants’ authorities and factual
contentions undermines this fundamental
right, as it effectively
deprived the Applicants of an equitable opportunity to have their
case adjudicated on its merits.
5.4
The principle of judicial impartiality requires courts to objectively
evaluate all material before them, giving
neither undue preference
nor unjustified disregard to any party’s submissions. The
Honourable Court’s selective engagement
with the parties’
arguments reflects a departure from this foundational principle,
resulting in an order that cannot be said
to have emanated from the
application of sound judicial discretion.
5.5
The Court’s selective focus on the Respondents’
narrative, to the exclusion of the Applicants’
submissions,
constitutes a failure to apply these established legal norms,
rendering the resultant order substantively and procedurally
unfair.
6.
Competing Car Wash and Unfairness:
6.1
It is respectfully contended that the Honourable Court further erred
in failing to consider a material fact
of significant probative
value, namely that the Respondents, in bad faith, erected and
commenced operations of a directly competing
car wash business
immediately adjacent to that of the Applicants. This factual context
is not peripheral, but rather central to
assessing the equity and
constitutionality of the eviction order granted.
6.2
The conduct of the Respondents falls to be characterised as
opportunistic, mala fide, and anti-competitive.
By permitting
themselves to remain in proximity whilst operating an identical
business, the Respondents have engaged in conduct
that is inimical to
the principles of fairness, good faith, and commercial morality which
underpin both contractual and edictal
dealings in South African law.
6.3
The constitutional dimension of this omission is equally stark.
Section 22 of the Constitution, which guarantees
the right to freely
choose and carry on a trade or occupation, necessarily includes
protection against arbitrary or mala fide interference
by private
actors whose conduct undermines fair competition and sustainable
livelihood. By failing to interrogate the effect of
the Respondents'
competing business, the Court a quo sanctioned conduct that is both
anti-competitive and destructive of the Applicants'
constitutional
rights.
6.4
The principle of good faith (bona fides), long recognised as a
cornerstone of South African contract law,
though not an independent
cause of action, nevertheless informs the interpretation,
development, and enforcement of contractual
rights and obligations.
The Respondents’ opportunistic conduct, coupled with their
pursuit of eviction, demonstrates a lack
of good faith and renders
the order inequitable and constitutionally unfair.
6.5
The eviction order granted by Court a quo is without consideration of
the Respondents’ mala fide and
anti-competitive conduct, was
not only inequitable but also constitutionally indefensible. It
undermines the values of fairness,
ubuntu, and good faith which the
Constitution and our jurisprudence demand must guide all legal and
commercial interactions.”
BACKGROUND
4.
On 12 July
2018, the Municipal Employee Pension Fund and Chrisal Investments
(Pty) Ltd (Respondents) and Limosa Investments 239
(Pty) Ltd and Alan
Dow, in his capacity as a Director and duly authorised in terms of a
resolution (Applicants) concluded a memorandum
of agreement of lease.
5.
The lease
agreement was over the years extended when the parties concluded
addendums to the lease agreement. The lease agreement
ended by
effluxion of time on 31 July 2024.
6.
There was an
attempt to extend the lease agreement through an addendum, however,
the attempt fell through when the Applicants refused
to sign the
addendum to extend the lease as it did not include the carwash
business.
7.
The Applicants
claimed that it had a 20 year verbal consent by Mr Christoudoulou to
operate the carwash and it was part and parcel
of its lease for at
least 20 years without any problem or complaints from the
Respondents. The Applicants stated that the Respondents
have even
installed the pressure pump after the completion of the renovations
to the building.
8.
The
Respondents responded to the Applicants’ assertions by pointing
out that the current lease agreement was silent as far
as the
situation of the carwash is concerned, they further stated that in
fact it has never been part of the lease agreement.
9.
After the
expiry of the written lease, on 31 July 2025, and in the absence of a
new signed agreement by both parties, the Applicants
continued their
occupation with the consent and knowledge of the Respondents and
continued to pay monthly rental.
10.
The Applicants
assert that the conduct gave rise to a tacit relocation of the lease
on a month to month basis, governed by the same
material terms and
usage rights as the previous lease. They stated further that the
continued acceptance of rental to date by the
Respondents affirm this
position.
11.
On 4 April
2025, the Respondents wrote a letter to the Applicants. The purpose
of the letter was to terminate the month to month
lease and to inform
the Applicants that they were required to vacate the leased premises
on 31 May 2025.
PROVISIONS
OF THE SUPREME COURT ACT AND CASELAW
12.
Section 17(1)
of the SCA provides as follows:
“
1.
Leave to appeal may only be given where the Judge or Judges concerned
are of the opinion that:
(a)
(i) the appeal would have a reasonable prospect of success; or
(ii)
there is some other compelling reason why the
appeal should be heard, including conflicting judgment on
the matter
under consideration;
(b)
The decision sought on appeal does not fall within the ambit of
section 16(2)(a); and
(c)
Where the decision sought to be appealed does not dispose of all the
issues in the case, the appeal
would lead to a just and prompt
resolution of the real issues between the parties.”
13.
The test
regarding the prospects of success has been covered in the heads of
argument by both Applicants and Respondents.
14.
Mr
Erasmus cited cases like
Ramakatsa
,
[1]
Caratco
[2]
and the
Mont
Chevaux Trust
[3]
cases in the Respondents’ heads of argument.
15.
Ramakatsa
held
that the prospect of success must not be remote and “there must
be reasonable chance of success”.
[4]
16.
Caratco
held
that even if the court is unpersuaded that there are prospects of
success, it must enquire into whether there is a compelling
reason to
entertain the appeal.
[5]
17.
Both parties
cited the
Mont
Chevaux Trust
case which held that the test regarding the prospects of success has
also to be applied to the merits of the proposed appeal, before
leave
should be granted. There must be a measure of certainty that another
court will differ from the Court whose judgment is sought.
THE
CASE FOR THE APPLICANTS IN THE APPLICATION FOR LEAVE TO APPEAL
18.
The case is
based on the tacit relocation of the lease on a month to month basis,
governed by the same material terms and usage
rights as the previous
lease. Even though this ground of appeal is not apparent from the
grounds of appeal stated in the notice
of application for leave to
appeal, it finds support in paragraphs 3.3, 3.4, 3.5, 3.6, 3.7 and
3.8 of the grounds of leave to appeal.
19.
Mr Riley
submitted that the tacit relocation required the Respondents to enter
into fair and good faith negotiations with the Applicants
in
considering an extension or renewal of the lease agreement.
20.
Mr Riley
submitted that the Respondents were required to enter into these fair
and good faith negotiations as they continued to
charge legal costs
as part of the rental obligations. Mr Riley submitted that
effectively the lease agreement continued despite
the cancellation on
4 April 2025.
21.
The other
ground was competing carwash and unfairness. Under this ground, the
Applicants assert that the Respondents, in bad faith,
erected and
commenced operations of a directly competing carwash business
immediately adjacent to that of the Applicants. The Applicants
state
that the factual context is not peripheral but rather central to
assessing the equity and constitutionality of the eviction
order.
22.
The fourth
grounds lack merit and I need not say more about them, save to state
that they were not part of the application that
was brought by the
Applicants under case number 024858/2025. The Applicants are
attempting to introduce a case which did not serve
before me on 4
September 2025. This is legally impermissible.
23.
The fifth
ground lacks merit. Both counsel were engaged at the hearing of this
application. The matter ultimately turned on whether
on the version
of the Applicants there was still an existing lease agreement between
the Applicants and the Respondents. Counsel
for the Applicants
conceded that the lease agreement was terminated when the month to
month lease agreement when the Applicants
were notified of the
termination on 4 April 2025 and told to vacate the premises on 31 May
2025.
24.
I
debated the issue of tacit relocation with Mr Erasmus. Mr Erasmus
referred me to the matter of
Winkelshoek
[6]
which dealt with tacit relocation. He submitted that a tacit
relocation of an agreement can be cancelled on reasonable notice.
In
this case, a reasonable notice was a period of one calendar month.
[7]
25.
Mr Erasmus
referred me to clause 12.3, the cancellation clause in the lease
agreement. The clause states that should the Landlord
cancel the
lease agreement and the tenant disputes the landlord’s rights
to do so, and remain in occupation of the premises,
pending the
determination of the dispute then:
“
12.3.1.
The tenant shall continue to pay on due date all amounts due by the
tenant in terms of this lease agreement.
12.3.2.
The landlord shall be entitled to recover and accept those payments
and the acceptance thereof shall
not in any manner whatsoever affect
the Landlord’s claim to cancellation of the lease agreement of
any other nature whatsoever.”
26.
Regarding the
inclusion of legal cost, Mr Erasmus referred me to clause 12.2 of the
lease agreement which provides that in the event
of the Landlord
instructing its attorneys to take measures for the enforcement of any
of the Landlord’s rights under this
lease, the tenant shall pay
on written demand within three (3) days to the Landlord such
collection charges and other legal costs
on an attorney and own
client basis, as shall be lawfully charged by such attorneys to the
Landlord on demand made thereto
by the Landlord. Any payment made by
the tenant after legal action has been instituted, shall be
appropriated first towards such
legal costs, collection charges, and
attorney and client charges at the Landlord’s sole discretion.
27.
I agree with
Mr Erasmus’ submission regarding the termination of the month
to month tacit relocation of the lease agreement.
28.
With
regard to the submission by Mr Riley that the Respondents were
obliged to enter into a fair and bona fide negotiations with
the
Applicants, Mr Erasmus referred me to paragraph 22 of the
Roazar
CC v The Falls Supermarket
,
[8]
which states that:
“
The
Falls does not state how long the negotiations were required to take
place and the contract is silent on this issue. It also
does not
state what criterion would be used to determine whether either of the
parties was negotiating in good faith. What it says,
however, is that
the negotiations to conclude renewal terms of the agreement commenced
as early as 2014, but that the negotiations
did not bear fruit
because it refused to pay the rental due in terms of the two
ancillary agreements. This version seems to suggest
that the period
of approximately two years was not long enough and that the fact that
Roazar wished to be paid money due in terms
of the two ancillary
agreements must be said to show bad faith on its part. It is however
not clear how the court should have determined
what period of
negotiations would have been fair and what criterion should have been
used to measure whether Roazar was indeed
negotiating in bad faith as
alleged.”
29.
In
the matter between
Mohamed’s
Leisure Holdings (Pty) Ltd v Southern Sun Hotel Interests (Pty)
Ltd
,
[9]
the Court held the following:
“
[24]
Parties enter into contractual agreements in order for a certain
result to materialise. The fact that parties enter into
an agreement
gives effect to their constitutional right of freedom to contract,
however, the carrying out of the obligations in
terms of that
contractual agreement relates to the principle of pacta sunt
servanda. In Brisley v Drotsky
[2002] ZASCA 35
,
2002 (4) SA 1
(SCA)
Cameron JA held that judges must exercise ‘perceptive
restraint’ lest contract law becomes unacceptably uncertain.
Cameron JA noted that the judicial enforcement of terms, as agreed
to, is underpinned by ‘weighty considerations of commercial
reliance and social certainty’. In the majority judgment in
Barkhuizen, Ngcobo J endorsed Cameron JA’s broader conception
of the law of contract as reflected in Brisley and affirmed that the
Constitution requires parties to honour contractual obligations
that
were freely and voluntarily undertaken. The court further went on to
say:
‘
While
it is necessary to recognise the doctrine of pacta sunt servanda,
courts should be able to decline the enforcement of …
a clause
if it would result in unfairness or would be unreasonable.’
[29]
In this case there is no complaint that the impugned clause is
objectively unconscionable. No allegation is made
that the lease
agreement was not concluded freely. There is also no evidence or
contention advanced by either of the parties that
there was an
unequal bargaining power between them. On the contrary, there is
ample evidence that the parties contracted with each
other on the
same equal footing. In other words it cannot and neither was the
respondent's case that there was an injustice which
may have been
caused by the inequality of bargaining power. Evidently the
respondent was at all material times aware or must have
been aware of
the implications of the cancellation clause. When the respondent
committed the first breach in June 2014, its attention
was drawn to
the fact that in the event of a further breach in the future, the
appellant will invoke the provisions of clause 20
and cancel the
agreement and evict them from the premises. It is disingenuous on the
part of the respondent to now contend that
by cancelling the
agreement and not affording them an opportunity to remedy the breach,
the appellant wanted to snatch at a bargain.
The facts demonstrate
that the appellant did not cancel the agreement or communicate its
intention to do so immediately upon non-payment
of the October
rental. It waited for a period of 12 days to lapse before it
cancelled the agreement.
[30]
The fact that a term in a contract is unfair or may operate harshly
does not by itself lead to the conclusion that
it offends the values
of the Constitution or is against public policy. In some instances
the constitutional values of equality
and dignity may prove to be
decisive where the issue of the party’s relative power is an
issue. There is no evidence that
the respondent’s
constitutional rights to dignity and equality were infringed. It was
impermissible for the high court to
develop the common law of
contract by infusing the spirit of ubuntu and good faith so as to
invalidate the term or clause in question.
[32]
The result may well be unpalatable to the respondent. It must
therefore bear the consequences of its agent’s
(bank) failure
in paying the October rental on due date. Its defence was clearly to
restrict the lawful reach of the contract and
to limit what can be
regulated by way of a contractual agreement between parties, in
circumstances where the terms of the contract
were clear and
unambiguous. In this case the parties freely and with the requisite
animus contrahendi agreed to negotiate in good
faith and to conclude
further substantive agreements which were renewed over a period of
time. It would be untenable to relax the
maxim pacta sunt servanda in
this case because that would be tantamount to the court then making
the agreement for the parties.”
30.
I agree with
the approach of the Supreme Court of Appeal. Both judgments confirm
that contractual matters must be approached on
the basis of the terms
of those contracts. In this case, I come to the conclusion that the
termination of the month to month tacit
relocation of the lease
agreement was valid.
31.
Mr Erasmus has
submitted that the zoning scheme did not authorise the operation of
the carwash on the premises. He has referred
me to the Tshwane Town
Planning Scheme at paragraph two (2), uses permitted, paragraph three
(3), uses with consent, paragraph
18, physical barriers and paragraph
23.
32.
Mr Riley has
countered this argument by submitting that the Applicants have been
allowed to operate the carwash despite the contravention
of the
zoning scheme. He asserts that the concerns of the Respondents that
they might incur municipal penalties if the City of
Tshwane becomes
aware of the contravention of the zoning scheme should not be treated
with the seriousness that it presents.
33.
I do not agree
with Mr Riley that a party can willy-nilly ignore and contravene a
zoning town planning scheme. As Mr Erasmus has
submitted
contravention of the zoning town planning scheme is frowned upon by
the Courts. It is indeed a violation of section 26
of Spatial
Planning and Land Use Management Act (SPLUMA).
34.
This Court
cannot countenance the contravention of the law which will have the
effect of implicating the Rule of Law. The application
for leave to
appeal has no prospects of success. I come to the conclusion that the
application for leave to appeal must be dismissed
with costs.
SECTION
18(3) APPLICATION
35.
The parties
would be referred to as they are cited in this application.
36.
Section 18(1)
of the Supreme Court Act (SCA) provides that:
“
Subject
to subsections (2) and (3), and unless the court under exceptional
circumstances orders otherwise, the operation and execution
of a
decision which is the subject of an application for leave to appeal
or of an appeal, is suspended pending the decision of
the application
or appeal.”
37.
Section 18(3)
of the SCA provides that:
“
A
court may only order otherwise as contemplated in subsection (1) or
(2), if the party who applied to the court to order otherwise,
in
addition proves on a balance of probabilities that he or she will
suffer irreparable harm if the court does not so order and
that the
other party will not suffer irreparable harm if the court so orders.”
38.
It
is now settled law that when considering the concept of exceptional
circumstances, the Court shall take into account the prospects
or
rather absence of prospects of success on Appeal.
[10]
39.
In
Justice
Alliance
,
[11]
the Court held that the less optimistic the Court is about the
prospects of the Judgment at first instance being vindicated on
Appeal, the less inclined it will be to grant the exceptional remedy
of execution of the Judgment pending the Appeal. The
converse
equally true. The more the Court is convinced that the Judgment of
the Court of first instance will be vindicated on Appeal,
the lower
the bar to establish the requirement of “
exceptional
circumstances
”.
40.
The
case of
MV
Ais Mamas Seatrans Maritime v Owners, MV Ais Mamas
provide the following guidelines in respect of “exceptional
circumstances”:
[12]
“
Exceptional
circumstances is something out of the ordinary and of an unusual
feature, it is therefore uncommon rare or different;
the exceptional
circumstances must arise out of or be incidental to the particular
case.
Whether
exceptional circumstances exist is not a decision which depends upon
an exercise of a judicial discretion, the existence
or otherwise is a
matter of fact which the Court must decide accordingly.
Depending
on the context within it is used, the word “exceptional”
has two shades of meaning, namely the primary meaning
of unusual or
different or the secondary meaning of markedly unusual or
specifically different; and where in a statute it is directed
that a
fixed rule shall be departed from only under exceptional
circumstances effect will generally speaking be best given to the
intention of the legislator by applying a strict rather than a
liberal meaning of the phrase.”
41.
The
concept of exceptional circumstances is dealt with on the case by
case basis in terms of
Premier
for the Province of Gauteng v Democratic Alliance
.
[13]
42.
The prospects
of success are remove. The Applicants have pre-empted its right of
appeal.
The
exceptional circumstances as advanced by the Respondents
43.
The Applicants
are suffering enormous harm on a daily basis under circumstances
where there is no longer any contractual or other
relationship
between the Applicants and the First Respondent and the Respondents
have now hugely affected the Applicants by filing
an application for
leave to appeal thereby halting the eviction process.
44.
Should the
First Respondent be granted leave to appeal, it will most probably be
to a Full Court of the above Honourable Court’s
Division and
this will be catastrophic to the Applicants, their new tenant,
Sparking Auto Car Wash, the existing tenants of the
Applicants’
shopping centre, its customers and contractors.
45.
Moreover, the
Applicants have no control whatsoever over the Respondents. The
Applicants, their new tenant, Sparkling Auto Car Wash,
and
contractors have fallen victim to verbal threats and violent assaults
at the behest of the Respondents.
46.
The
Applicants’ shopping centre is under tremendous risk and the
Applicants, in not having any contractual control or meaningful
manner to hold the Respondents to any standards, are simply held to
ransom by the Respondents. The Respondents are placing other
tenants
and members of the public at risk and tarnishing the reputation of
the Applicants’ shopping centre.
47.
The
Respondents have no legal or factual basis in their grounds of
appeal. The Respondents did not advance any cogent reasons on
4
September 2025, neither any reasons contained in its application for
leave to appeal, justifying the continued unlawful possession
and
occupation of the Applicants’ property. It is evident that the
application for leave to appeal is part of a dilatory
tactic designed
to prolong the unlawful occupation and frustrate the Applicants’
rights.
48.
The landlords
are the owners of the immovable property upon which the leased
premises are situated, and in terms of section 25 of
the Constitution
of the Republic of South Africa, 1996 are entitled to deal with its
property as they deem fit. The continued breach
of the Applicants’
right as enshrined in section 25 of the Constitution, as well as the
common law, infringes upon the right
of the Applicants.
49.
The further
exceptional circumstances are stated as:
49.1.
The
application for leave to appeal has been pre-empted.
49.2.
The zoning of
the premises do not authorise a business of a carwash. I have dealt
with the zoning scheme in the previous paragraphs
under the grounds
of application for leave to appeal.
50.
In reply, Mr
Riley submitted that there was no urgency. He further stated that the
Applicants will suffer irreparable harm as their
business would close
if the order is granted.
51.
He submitted
that there was no proof that his clients have committed a crime. He
referred to the assertion of Mr Erasmus as
ipse
dixit.
52.
When I brought
to the attention of Mr Riley that the Respondents have in fact
obtained a Court order to interdict the Applicants
on 3 July 2025, he
was initially unaware of the Court order. He, nonetheless, replied by
saying the Court order has not been violated
and as such it can be
used to enforce the rights of the Respondents.
53.
The Court
order is annexure SAJ5 of the application in terms section 18(3). The
parties who have been cited in the Court order are
the Applicants and
the Police. The orders that were granted are:
“
That
the first and second Respondents, and any other persons, entities or
bodies, as the case may be acting through, or under, the
second
Respondent be and are hereby restrained, and interdicted, from
attending, proceeding into or being upon the first and second
Applicants’ premises, namely ERF 3[…] Faerie Glen,
Extension 9, Known as Glen Village Shopping Centre with the aim
or
other purpose of:
a.
Frustration
and interfering with the first and second Applicants’
businesses thereat;
b.
Harassing
and intimidating tenants, and employees of Sparking Auto;
c.
Interfering
with, harassing or intimidating the first and second Applicants’
managers...”
54.
The Court
order of 3 July 2025 is currently operational and has not been
challenged or set aside.
55.
The Court
order present enough legal basis for the apprehension of harm that is
being experienced by the Respondents.
56.
The Court
order reflects a fraught atmosphere which is prevailing between the
Applicants and the Respondents. Of concern is the
fact that the
conduct of the Respondents is interfering with the Applicants’
businesses, they are harassing and intimidating
tenants, and
employees of Sparkling Auto, interfering with, harassing or
intimidating the Applicants’ managers.
57.
I come to the
conclusion that the Applicants have made a case for orders in terms
of the notice of motion.
In
the result, I make the following order:
1.
The
application for leave to appeal is dismissed with cost on the scale
as between attorney and client, on scale C, inclusive of
the costs of
senior counsel.
2.
The
application in terms of Rule 18(3) is granted in terms of the Draft
Order dated 10 December 2025 which appears on Caseline
072-9.
TD SENEKE AJ
Acting Judge of the High
Court
Gauteng Division,
Pretoria
Appearances
For applicants
:
Advocate
Nigel Riley
Instructed by
:
Van Zyl
Johnson Inc
For respondents
:
Advocate Chris (MC) Erasmus
SC
Instructed
by
:
Mark
Efstratiou Inc
[1]
Ramakatsa
v African National Congress
[2021]
ZASCA 31
of 31 March 2021
[2]
Caratco
(Pty) Ltd v Independent Advisory (Pty) Ltd
(982/18)
[2020] ZASCA 17
;
2020 (5) SA 35
(SCA) (25 March 2020)
[3]
The
Mont Chevaux Trust v Tina Goosen And 18 Others
2014 JDR 2325 (LCC).
[4]
Ramakatsa
supra
at para 10
[5]
Caratco
supra
at para 2
[6]
Winkelshoek
Wynkelders (Edms) Bpk and Another v Jamadu Restaurant (Edms) Bpk
(11871/2011)
[2012] ZAWCHC 71
(31 May 2012) [2012] ZAWCHC 71
[7]
Fiat
SA v Kolbe Motors
1975
(2) SA 129
(O) at 139H – 140B
[8]
(232/2017)
[2017] ZASCA 166
(29 November 2017)
[9]
(183/17)
[2017] ZASCA 176
(1 December 2017)
[10]
University
of the Free State v Afriforum and Another
[2016] ZASCA 165
(17 November 2016) paras 14 and 15;
Minister
of Social Development Western Cape and Others v Justice Alliance of
South Africa and Another
(20806/2013)
[2016] ZAWCHC 34
(1 April 2016), para 22.
[11]
Minister
of Social Development Western Cape and Others v Justice Alliance of
South Africa and Another
supra
Para 27
[12]
2002
(6) SA 150
(C) at 156I-157C.
[13]
[2021]
1 All SA 60
(SCA)
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