Case Law[2025] ZAGPPHC 1363South Africa
Ndebele and Another v Smith and Others (Appeal) (A62/2024 ; 34898/2021) [2025] ZAGPPHC 1363 (17 December 2025)
High Court of South Africa (Gauteng Division, Pretoria)
17 December 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Ndebele and Another v Smith and Others (Appeal) (A62/2024 ; 34898/2021) [2025] ZAGPPHC 1363 (17 December 2025)
Ndebele and Another v Smith and Others (Appeal) (A62/2024 ; 34898/2021) [2025] ZAGPPHC 1363 (17 December 2025)
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sino date 17 December 2025
SAFLII
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personal/private details of parties or witnesses have been
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Policy
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: A62/2024
Court
a
quo
Case
NO: 34898/2021
(1) REPORTABLE: NO
(2) OF INTEREST TO OTHER
JUDGES: NO
(3) REVISED.
Date:
17 December 2025
Signature:
K. La M Manamela
In
the matter between:
PRINCE
NDEBELE
First
Appellant
PEEZEE
PROPERTY MARKETING (PTY) LTD
Second
Appellant
and
JOHANNES
PETRUS SMITH
First
Respondent
SKYDANCE
TRUST
Second
Respondent
SANDRA
ISABELLA WILCOCKS
N.O.
Third
Respondent
THE
SHERIFF OF THE HIGH COURT OR
HIS
DEPUTY, PRETORIA EAST
Fourth
Respondent
THE
REGISTRAR OF DEEDS OFFICE, PRETORIA
Fifth
Respondent
DATE
OF JUDGMENT:
This judgment is issued by the Judges whose names
are reflected herein and is submitted electronically to the
parties/their legal
representatives by email. The judgment is further
uploaded to the electronic file of this matter on Caselines by the
Judge’s
secretary. The date of the judgment is deemed to be 17
December 2025.
JUDGMENT
Khashane
Manamela, AJ (Baqwa, J and Ledwaba, AJ concurring)
[1]
This is an appeal against the decision or judgment of this Division,
as constituted by Baloyi-Mbembele AJ (‘the
court
a quo
’
),
unfavourable to the
first
appellant (being the second respondent in the court
a
quo
),
Mr
Prince Ndebele (‘Mr Ndebele’) and the second appellant
(being the first respondent in the court
a
quo
),
Peezee
Property Marketing
(‘Peezee’)
and favourable to the first respondent. Mr Ndebele is the sole
director of Peezee.
[2]
Peezee is the registered title holder to the property described as
Erf 1[…],
Silver Lakes Extension 4 Township, Registration
Division JR, Gauteng Province (‘the Property’). The first
respondent
(being the applicant in the court
a quo
), Mr
Johannes Petrus Smith (‘Mr Smith’), is entitled to
ownership or registration of title in his name of the - still
to be
divided - portion of the Property, described as Portion 1 of Erf 1[…]
Silver Lakes Extension 4 Township, Registration
Division JR, Gauteng
Province (‘Portion 1’).
[3]
Mr Smith launched an application in this Division against Peezee and
Mr Ndebele (jointly,
‘the appellants’) for Mr Ndebele to
be directed to sign relevant documents for the transfer of title in
respect of
Portion 1 and registration thereof by the Registrar of
Deeds, Pretoria, cited as the fifth respondent. In the event of
failure
by Mr Ndebele in this regard, the court was requested to
direct that the Sheriff: Pretoria East (‘the Sheriff’),
the
fourth respondent, step in and sign the relevant transfer
documents.
[4]
The application was opposed by the appellants. Skydance Trust (‘the
Trust’),
cited as the second respondent, and its trustee, Ms
Sandra Isabella Wilcocks (‘Ms Wilcocks’), cited as the
third respondent,
noted their intention to abide the outcome of the
application before the court
a quo
.
With no substantial relief sought directly against
the Registrar of Deeds
and the Sheriff,
they took no part in the proceedings before the court
a
quo
.
[5]
On 3 March 2023, the court
a
quo
handed
down judgment whose terms were unfavourable to Peezee (‘the
Judgment’).
[1]
Dissatisfied with the outcome, the appellants launched this appeal to
this Full Court against the Judgment with leave of the court
a
quo
.
[6]
The appeal came before us on 10 September
2025.
Mr T Mpahlwa appeared for the
appellants and Mr ZE Fakude appeared for the first respondent (i.e.
Mr Smith). This judgment was reserved
following the hearing of
submissions by counsel
. But following the
hearing and when this judgment was about to be handed down, the
appellants launched an application for the recusal
of the Full Court.
Application for
recusal
[7]
On 3 December 2025, the appellants launched an application in terms
of which they
sought the ‘[r]ecusal of the presiding judges
from further conduct of the appeal’ and for ‘[f]resh
hearing of
the appeal before different judges’.
[2]
This was almost after three months from the date on which the matter
was heard and this judgment was reserved, on 10 September
2025.
[8]
The grounds or premise of the recusal application is derived from
what is alleged
to have been said by this Full Court or one or more
of the judges comprising this Full Court. The essence of the recusal
appears
to be located in the following paragraphs of the supporting
affidavit to the application:
8.
Shortly before the end of the proceedings on the day, I am advised
that a suggestion was
made by Judge Baqwa to the effect that I may
have committed fraud in the process or the first applicant’s
acquisition of
the property in issue in the appeal proceedings. I am
told that the suggestion was followed by questions posed by my and
the first
applicant’s counsel (“Adv Mpahlwa”)
particularly asking whether or not I had indeed committed fraud
(“cause
of complaint”).
9.
Not long after the above suggestion and line of questioning the
appeal proceedings adjourned.
[3]
…
25.
I am advised by Adv Mpahlwa that, in the course of his submissions in
reply, whilst dealing with either
the issue of non-joinder or the
issue of the suspensive condition at issue in the appeal, an
accusation came from Judge Baqwa that
“
maybe
your client committed fraud
”
.
The suggestion, I am advised, was followed by a direct question from
Judge Baqwa to Adv Mpahlwa to the effect that “
did
your client commit fraud
”
?
[4]
[9]
The deponent to the affidavit in support of the recusal application
is Mr Ndebele,
the first appellant in this appeal. He does not say he
was in Court when the matter was heard or that he had access to the
recording
or transcript of the proceedings of this Court. What he
says is that he sourced his information from Mr T Mpahlwa, the
appellants’
counsel. Mr T Mpahlwa deposed to a confirmatory
affidavit.
[5]
[10]
We, constituted as the Full Court seized with this appeal, are aware
of the test and the legal
principles governing recusal applications.
And we have considered the relevant authorities, including those
cited in the application,
and have reflected on the allegations made
against this Court. It is our view that the statements attributed to
the Court or its
judges do not support the notion of this Court’s
preconceived or conceived view of fraud or criminality on the part of
Mr
Ndebele. In fact, what occurred in Court during the hearing of
this appeal was nothing more than a quest by the Court to find out
the truth on all aspects of the matter. Therefore, the allegations of
actual bias by this Court or any of its constituent judges
against Mr
Ndebele or any apprehension of bias by him is misplaced and without
merit. The application for recusal is unmeritorius.
Background facts
[11]
A brief narration of the facts in the background to this matter is
warranted. This would be constituted
from the facts which are common
cause between the parties. To the extent that a fact may be disputed,
I will point this out. The
source of the material under this part is
significantly the documents before the
court
a quo
and
the transcribed record of proceedings before that court.
[12]
On 22 August 2013, Mr Smith, as the seller, and the Trust represented
by Ms Wilcocks, as the
purchaser, concluded a sale and purchase
agreement in respect of
the
Property (‘the
2013
Sale Agreement’).
[6]
The
title to the Property was duly transferred and registered in the name
of the Trust on 7 October 2013 under title deed number
T[…].
[13]
On 22 January 2016, the City of Tshwane Metropolitan Municipality
(‘Tshwane Municipality’)
approved the subdivision of the
Property into proposed Remainder of Erf 1[…] (comprising 1008
square metres) and proposed
Portion 1 of Erf 1[…] (comprising
1009 square metres), subject to specified conditions. It is stated
that the Silver Lakes
Homeowners Association also approved the
proposed subdivision.
[14]
On 18 October 2018, the Trust sold Portion 1 back to Mr Smith (‘the
Portion 1 Agreement’).
[7]
Clause
2 of the Portion 1 Agreement reads as follows:
The
purchase price of the property is
R0.00
(ZERO)
since
this transaction reverse transfer back to the purchaser, Portion 1 of
subdivided property as agreed upon by the parties in
the addendum to
the original purchase agreement dated 22 August 2013
[8]
[15]
Evident from clause 2 of the Portion 1 Agreement, quoted above, is
the reference to the so-called
‘addendum to the original
purchase agreement dated 22 August 2013’ (‘the 2013
Addendum’). The ‘original
purchase agreement’
refers to the 2013 Sale Agreement in terms of which Mr Smith sold
the
Property to the
Trust.
[9]
Mr Smith and the Trust are said to have agreed in terms of the 2013
Addendum the transfer back of Portion 1 to Mr Smith once the
Property
is subdivided. The existence of the 2013 Addendum was disputed by the
appellants before the court
a
quo
and
is still a bone of contention in the appeal before us.
[16]
On 3 August 2020, an agreement was concluded in terms of which the
Trust sold to Peezee the proposed
Remainder of Erf 1[…] (‘the
2020 Sale Agreement’).
[10]
It is vital to point out that what was sold to Peezee was not the
entire Property, although the subsequent transfer to Peezee (and
the
registration in its name) was of the Property in its entirety and
undivided.
[11]
[17]
Peezee, on 20 November 2020, caused a mortgage bond to be registered
over the entire Property
in favour of Absa Bank Limited (‘Absa’)
to secure the repayment of the amount of R4 995 000 lent and
advanced
by Absa to Peezee and an additional amount of R999 000
for costs and fees (‘the mortgage bond’). The former
amount
represented part of the purchase price of R5 550 000
for the Property under the 2020 Sale Agreement.
[18]
On 29 October 2020, the Trust and Peezee concluded a further
agreement (to the 2020 Sale Agreement)
in which it was agreed and/or
recorded, among others, that: (a) Portion 1 was a subject matter of a
subdivision, already approved
by Tshwane Municipality; (b) Portion 1
was not the subject matter of the sale to Peezee, and (c) Peezee and
the Trust were desirous
of transferring the Property to Peezee, but
Portion 1 - once formally subdivided - would be transferred back
to
Mr Smith
(‘the
2020 Addendum’).
[12]
[19]
According to Peezee, it signed the 2020 Addendum on condition that
the written consent of Absa
, as
the
bondholder, to the terms there
of
is
obtained (‘the Suspensive Condition’). This was disputed
by Mr Smith in the papers before the court
a quo
.
[20]
On
20 November 2020,
title
to the Property (in its entirety, including Portion 1) was registered
by the Registrar of Deeds in the name of Peezee under
title deed
number T[…].
[13]
[21]
In June 2021, Mr Smith – through his attorneys – sent
documents to Mr Ndebele, as
the director of Peezee, for signing in
order to effect the transfer of Portion 1 into the name of Mr Smith.
The signed documents
were not received back by Mr Smith from Mr
Ndebele or Peezee.
[22]
On 15 July 2021, Mr Smith initiated the application before the court
a quo
, essentially, for Peezee - through the person of Mr
Ndebele as its sole director - to be directed to sign the transfer
documents
relating to Portion 1.
[23]
The court
a
quo
,
on 3 March 2023, granted relief in terms favourable to Mr Smith (i.e.
the Judgment).
[14]
Dissatisfied with the Judgment, the appellants launched this appeal
with leave of the court
a
quo
.
Relief sought, the
opposition mounted and the Judgment of the court a quo
[24]
The
Property
in its entirety measures about
2017
square metres in extent. It is currently registered in the name of
Peezee. Peezee, as stated above, only purchased from the
Trust in
terms of the 2020 Sale Agreement, a portion of the Property and not
the entire Property, although the Property - in its
entirety and
undivided – was transferred to Peezee. But, the appellants had
agreed (through the 2020 Addendum to the 2020
Sale Agreement) to the
transfer of Portion 1
to
Mr Smith. And, t
he
2020 Addendum also contains a term, added by hand by Mr Ndebele
beneath his signature on behalf of Peezee that, it is ‘[s]igned
subject to written consent of Bondholder, and applicable terms &
conditions & the following of any relevant legal procedures’.
[15]
This, essentially, is the contractual landscape which predicated the
issues before the court
a
quo
.
[25]
The appellants consider the above insertion in manuscript to the 2020
Addendum to constitute
a suspensive condition in favour of Absa.
According to the
appellants,
ABSA had already approved the loan to Peezee by then in respect of
the entire Property. The
latter
issue gave rise to a point in
limine
to
the effect that the application by Mr Smith ought to be dismissed on
the basis of the non-joinder of Absa, despite its direct
and
substantial interest in the matter before the court
a
quo
.
[16]
This is disputed by Mr Smith.
[26]
The relief which was sought by Mr Smith in the application before the
court
a quo
was essentially that: (a) Mr Ndebele be directed
to sign the documents for the transfer of Portion 1 into the name of
Mr Smith;
(b) in the event that Mr Ndebele failed to do so, the
Sheriff be authorised to step in and sign the relevant transfer
documents;
(c) the Registrar of Deeds be directed to register Portion
1 into the name of Mr Smith, and (d) the appellants be punished with
costs order of the application.
[27]
As stated above, in the end, the application was only opposed by the
appellants. The Trust and
Ms Wilcocks, after what appears to be an
assurance that no costs order would be sought against them,
substituted their notice to
abide the outcome for their notice of
opposition. There were - in addition to what is stated
above - other grounds
of opposition raised by the appellants before
the court
a
quo
.
But in the end the court
a
quo
found
all of them unmeritorius and made an order along the lines of the
relief sought by Mr Smith, but only held the appellants
liable to pay
only normal costs of the application (i.e. the Judgment).
[17]
This appeal represents the dissatisfaction of the appellants with the
Judgment.
Grounds
of
appeal
[28]
Following the delivery of the Judgment, the appellants were granted
leave to appeal
on 5 July 2023. The notice
of appeal, dated 25 July 2023, did not specify any grounds of appeal,
but simply sought the reversal
of the Judgment or the order made
therein.
[29]
In the leave to appeal, eight grounds were listed for the intended
appeal, as follows:
[29.1] The
court
a quo
characterised the cause of action in the
application as being for a declaratory order and for specific
performance. The court, erroneously,
granted an order in the form of
the latter – instead of the former - despite a case not made
out for specific performance.
For, example, the alleged contract
between Peezee and the Trust did not exist, due to the non-fulfilment
of the suspensive condition
in their contract. These were the first
and second grounds of appeal.
[29.2] The
court
a quo
, erroneously, mentioned the 2013 Addendum between
Mr Smith and the Trust, which gave rise to the proceedings, as if its
existence
has been established. Without it being in written form, the
purported alienation of land would have been invalid for want of
compliance
with
section 2(1)
of the
Alienation of Land Act 68 of
1981
. This is the third ground of appeal.
[29.3] The
fourth ground of appeal referred to the evasion of tax laws or
liability by Smith and/or the Trust in the
transactions or agreements
relating to the disposal (through sale or donation) of the Property
and/or Portion 1.
[29.4] the
application was fatally defective due to the failure to join or
non-joinder of Absa Bank, a bondholder in
respect of the Property
with a direct and substantial interest in the subject matter of the
application (i.e. the fifth ground
of appeal).
[29.5] In
terms of the sixth ground of appeal, the court
a quo
was
criticised for its alleged failure to deal with the grounds of
opposition raised by the appellants. The court was credited by
the
appellants for its referral to: (a) Mr Smith’s quest to enforce
a non-enforceable conditional obligation, and (b) the
wording of
clause carrying the suspensive condition in the 2020 Addendum. But
the court is said to have erred for not finding that
without the
suspensive condition being fulfilled, the underlying contract did not
come into existence and, thus, had no force or
effect.
[29.6] As a
seventh ground of appeal, the appellants contended that, Potion 1 as
a piece of land or immovable property
did not exist as, despite the
sub-division of the Property, approved by the Tshwane Municipality in
January 2016, the actual subdivision
of the Property never took
place. Therefore, Portion 1 does not exist as the only immovable
property is the Property registered
in the name of Peezee in the
relevant title deed.
[29.7] The
eighth and last ground of appeal was that the court
a quo
erred
in not making factual findings, but deciding the application on the
basis of untested factual allegations.
[30]
In
the heads of argument filed
by
counsel for the appellants, the following rubrics emerge for
discussion by way of grounds of appeal: (a) requirements for a case
based on specific performance were not met for the court
a quo
to
grant the relief in the Judgment and Mr Smith had sought declarator;
(b) requirements for a declaratory order not met; (c) the
suspensive
condition in the 2020 Addendum was not fulfilled; (d) incorrect
application of the test for non-joinder; (e) non-existence
of the
2013 Addendum; (f) the 2020 Addendum never came into existence;
(g) non-existence of Portion 1, and (h) possible tax
evasion
emanating from the transactions. I will consider the grounds of
appeal and the rubrics from appellants’ counsel written
argument for purposes of the issues to be determined to dispose of
this appeal, next.
Issues
requiring determination
[31]
Before, deducing issues requiring determination for the disposal of
the current appeal before
this Court, one ought to be reminded of the
durable authority in
Western
Johannesburg Rent Board and Another v Ursula Mansions (Pty) Ltd
[18]
that
an appeal should not be directed against the reasons given for
judgment, but rather the substantive order made by the court.
[19]
[32]
Contrary to this fundamental principle of appeals, some of what is
labelled grounds of appeal
are, effectively, directed at the
reasoning of the court
a quo
in
the Judgment rather than
the substantive
order(s) made by that court. Prominently featuring in this basket is
the sixth and eighty grounds of appeal, stated
above.
[33]
The primary issues that emerge for determination which, significantly
comport with what is put
forward as grounds of this appeal are the
following: (a) t
he suspensive
condition in the 2020 Addendum was not fulfilled; (b) non-joinder of
Absa; (c) non-existence of the 2013 Addendum
and the implications of
section 2(1)
of the
Alienation of Land Act 68 of 1981
, and (d)
non-existence of Portion 1. The secondary or ancillary issues that
will arise from the discussion or serve as support
of the identified
primary issues are the following: (i) requirements for a claim for
specific performance; (ii) requirements for
a declaratory order, and
(iii) possible tax evasion emanating from the transactions. I have
adopted – as self-explanatory
subheadings – the issues
for determination above albeit in no particular order to facilitate
the discussion to follow.
Non-existence
of the 2013 Addendum
[34]
The series of transactions material to this matter started with the
sale of the Property by Mr
Smith to the Trust in 2013 (i.e.
the
2013
Sale Agreement). When Portion 1 of the Property was sold back by the
Trust to Mr Smith in 2018 in terms of the Portion 1 Agreement,
it was
recorded therein that there is no purchase price or consideration
payable in the transaction as it was a ‘reverse
transfer back
to the purchaser … as agreed upon by the parties in the
addendum’ to
the
2013
Sale Agreement.
[20]
[35]
It is common cause that no written document containing the 2013
Addendum has been produced. It
is the appellants’ case that the
2013 Addendum does not exist, as it was never concluded. Also, this
caught the attention
of the court
a quo
when the application
was heard and counsel for Mr Smith couldn’t provide proof of
its existence or whereabouts upon such enquiry
by that court. But,
evidently, this did not inhibit the court a
quo
from reaching
the Judgment. This, according to counsel for the appellant, is an
appealable error on the part of that court.
[36]
It is submitted on behalf of the appellants that the 2013 Addendum is
a deed of alienation from
which Mr Smith’s right to Portion 1
emanates and the fact that it is not in written form offends the
provisions of the
Alienation of Land Act
68 of 1981 (‘ALA’).
This, it is further submitted, renders the alleged sale and/or
transfer of title in respect of
Portion 1 from the Trust to Mr Smith
in terms of the Portion 1 Agreement void
ab
initio
for
want of compliance with the formalities prescribed by the ALA.
[21]
[37]
Section 2(1)
of the ALA is pertinent to this part of the
determination. It provides one of the formalities applicable to
alienation of land
as follows:
No alienation of land
after the commencement of this section shall, subject to the
provisions of
section 28
, be of any force or effect unless it is
contained in a deed of alienation signed by the parties thereto or by
their agents acting
on their written authority.
[38]
The following relevant terms or concepts are defined in
section 1
of
the ALA: (a) ‘alienate’ means -
in relation to
land – ‘sell, exchange or donate, irrespective of whether
such sale, exchange or donation is subject
to a suspensive or
resolutive condition, and “alienation” has a
corresponding meaning’, and (b) ‘
deed
of alienation’ refers to ‘
a document or documents
under which land is alienated’.
[39]
The appellants say the 2013 Addendum is not a compliant ‘deed
of alienation’, if
it exists, as it is not in writing. Mr Smith
is equivocal about its existence and hasn’t furnished proof.
[40]
But, whether the 2013 Addendum exists in verbal form or is a fiction
doesn’t matter. It
is my view that it did not alienate (i.e.
sell, exchange or donate) Portion 1. For if it did, there would have
been no need for
the Portion 1 Agreement between
the same parties. Actually, the reverse transfer of Portion 1 to Mr
Smith would have occurred simultaneously
with the transfer of title
over the remainder of the Property from Mr Smith to the Trust in
2013. For the
2013 Addendum was, exactly that, an addendum to
the
2013 Sale Agreement, the actual ‘deed of
alienation’. Whatever form it took, the
2013 Addendum
was merely an agreement about a future alienation
not the alienation itself. The future or actual alienation is in
terms of the
Portion 1 Agreement. Therefore, there is no merit in
this ground.
Portion 1 is
non-existent
[41]
The appeal is also pivoted on the ground that Portion 1 doesn’t
exist, despite its
description as
such in the agreements and other documents relating to this matter.
The appellants also point to the fact that Portion
1 is said to be
held under both deed of transfer NO: T[…] and deed of transfer
NO: T[…], to support its case of a
phantom Portion 1. The
former title deed number accords with that of the Property when it
was sold by Mr Smith to the Trust and
the latter when it was sold by
the Trust to Peezee.
[42]
I find this ground and the submissions made in its support quite
abstract or even artificial.
From the beginning it was clear to the
appellants that apart from the piece of land transferred to Peezee
only part of property
was sold. It is common cause that Tshwane
Municipality approved the subdivision in terms of which the Property
would become
Remainder of Erf 1
[…]
,
Silverlakes, Extension 4 Township and Portion 1 would become Portion
1 of Erf 1
[…]
, Silverlakes,
Extension
4
Township. This postulation
of land ownership wasn’t consummated due to what led to the
proceedings before the court
a quo
, being the appellants’
failure or refusal to sign the transfer papers for Portion 1 to be
formally separated in title from
the rest.
[43]
Therefore, this ground, also, lacks merit to support the appeal. I
have also noted that, it is
submitted on behalf of Mr Smith, that
this ground of appeal was raised only for the first time in this
appeal and was not contained
in the opposing papers before the court
a quo
. There is no explanation in this regard by the
appellants. That would add to the reasons for its dismissal.
S
uspensive
condition in the 2020 Addendum was not fulfilled
[44]
As already stated, Peezee and the Trust concluded the 2020 Sale
Agreement for the purchase of
a portion of the Property. The Property
still had to be subdivided to reflect that Peezee does not have the
right of ownership
of the entire square metreage of the Property. To
this end, the appellants and the Trust augmented the 2020 Sale
Agreement through
the 2020 Addendum.
[45]
The appellants, or in fact, Mr Ndebele, says he signed the 2020
Addendum subject to a written
consent being obtained from the
bondholder ‘and applicable terms & conditions & the
following of any relevant legal
procedures’.
[22]
It is argued that this constitutes a suspensive condition which was
never met and, thus, prevented the 2020 Addendum being consummated
or
fulfilled. The suspensive condition is in favour of Absa, as the
bondholder over the Property. Therefore, the terms of the 2020
Addendum were of no force and effect and failed to come into
existence, the appellants’ contention concludes. Mr Smith
denies
that the 2020 Addendum was subject to a suspensive condition,
but does not deny the existence of the suspensive condition.
[46]
According to the authors of
Claassen's
Dictionary of Legal Words and Phrases
[23]
the phrase ‘
suspensive
condition’ refers to a condition which has ‘the
effect of deferring the commencement of the operation
of a juristic
act until the determination, in the appropriate sense, of the
contingency specified in the condition; correlative
to resolutive
condition’.
[47]
In my view there is no need to determine whether what is claimed
to be a
suspensive condition is indeed one or even
to trawl through case law and other authorities on the constitution
and effect of
suspensive conditions in contracts.
[
48]
A proper point of departure on this issue is a consideration of the
relevant objective facts.
The 2020 Addendum containing the suspensive
condition in favour of Absa, mooted by the appellants, was concluded
on 29 October
2020. It is common cause that the mortgage bond was
only passed or registered over the Property on 20 November 2020.
Therefore,
there was no bondholder as at the date of the 2020
Addendum. But, it is the appellant's case that ABSA had already
approved its
finance by then in respect of the entire Property. The
latter assertion is surprising considering the appellants or Peezee -
to
their knowledge - never bought the entire Property.
[49]
Counsel for Mr Smith’s submissions on the issue include what
appears next. The appellants
have not
alleged
being subjected to any form of duress or force to conclude the 2020
Addendum. Further, the appellants do not say that this
agreement is
invalid, unenforceable in law or both, the submission continues.
Also, it is submitted that the appellants’
encumbrance of the
entire Property by a mortgage bond in favour of Absa was malicious
and solely intended to frustrate his client,
Mr Smith. The 2020
Addendum is valid and enforceable between the parties. Counsel
invokes the legal principle of
pacta
sunt servanda
(agreements
are to be observed)
[24]
to
support the submission that as a valid and enforceable agreement
inter
partes
(between
the parties)
[25]
the 2020
Addendum ought to be honoured by the parties.
[50]
The suspensive condition did not specify who of the two parties (i.e.
the Trust, as the seller,
or Peezee, as the purchaser) had the
obligation to obtain the written consent of the bondholder. Also, no
timeframe was suggested
for compliance with this obligation. Further,
the 2020 Sale Agreement only referred to an immovable property
being purchased
by Peezee as comprising approximately 1200 in extent.
This, obviously, means that the 2020 Sale Agreement alone and
without
more was incapable of the transfer of the entire Property.
For it is in the 2020 Addendum that, transfer of the Property, as a
whole, is provided for and a reading of the following clauses
therefrom would bear this:
4.
In terms of the diagram, the parties intend to sell and transfer to
the purchaser the portion
identified as the proposed Remainder of Erf
1[…] Silver Lakes Extension 4 Township.
5.
The remainder of the property described as the Portion 1 of Erf 1[…]
Silver Lakes
Extension 4 Township is the subject matter of the
property that is not being sold to the Purchaser.
6.
The parties are desirous to transfer the whole of the undivided
property to the purchaser
and that once the subdivision is capable of
being transferred, Portion 1 of Erf 1[…] Silver Lakes
Extension 4 Township will
be transferred back to the seller’s
nominated party being Johannes Petrus Smith …
[26]
[51]
Therefore, the transfer of the Property as a whole was only possible
through the reading of the
2020 Sale Agreement as incorporating the
2020 Addendum. This is logical, as
addenda
are
nothing more than ‘
additions,
supplements
’
.
[27]
The appellants were or Peezee was instrumental in the transfer of the
Property without the fulfilment of the so-called ‘suspensive
condition’. It appears that the appellants did not seek the
consent of Absa, as a bondholder, in doing this.
[52]
Overall, it is submitted on behalf of the appellants that, the
non-fulfilment of the suspensive
condition in the 2020 Addendum
renders this agreement of no force and effect and, thus,
unenforceable. The corollary of this is
that Mr Smith is precluded
from claiming the transfer and registration of Portion 1 in his name.
I do not agree. The impugned agreement
is binding between the parties
as established by the registration of the entire Property in the name
of Peezee. As for Absa, in
whose favour the condition was purportedly
inserted, there is no timeframe in getting their consent.
Practically, this may have
to be done for purposes of lodging the
relevant documents with the Registrar of Deeds. And the existence of
a mortgage bond in
favour of Absa over the entire Property, takes me
to the next ground of appeal.
Non-joinder of Absa
[53]
Another ground of this appeal concerns what the appellants consider
the non-joinder of Absa.
As stated above, the appellants used the
Property in its entirety to secure financing from Absa. This was done
whilst the appellants
were not only aware of the terms of the
2020
Addendum, but were (or at least Peezee was) parties to same.
[54]
For some reason the appellants appear to hold a view that they are
not bound by some or all of
the terms of the 2020 Addendum. I agree
with the submission made on behalf of Mr Smith that Peezee
voluntarily concluded this agreement.
Mr Ndebele is on record in
stating that he is the one who caused the suspensive condition to be
included in the 2020 Addendum,
which confirms its binding effect on
Peezee or the appellants. One wonders whether he disclosed the
existence of its terms to Absa
when securing the mortgage loan. The
enquiry we made at the hearing of the matter regarding possible fraud
concerns this aspect
and the possibility that a misrepresentation may
have been made to Absa to the effect that Peezee owns the whole
Property. As indicated
above, we did not hold any particular view and
merely sought the situation explained. But instead of an explanation,
if there is
any, what we highlighted above unfolded and the –
post hearing - recusal application being the climax.
[28]
There was absolutely no need for anything more than an explanation to
the Court.
[55]
It is the appellants’ case that Absa had a direct and
substantial interest in the matter
before the court
a quo
,
arising from its rights or interests in terms of the mortgage bond
procured by Peezee over the entire Property. This is disputed
by Mr
Smith.
[56]
In the Judgment, the court
a quo
dealt with the non-joinder of
Absa, as quoted
verbatim
but only in the material respect, in
the following paragraphs:
[12.] It is the
first and second respondent's aurgument that Absa should be joined,
as ABSA has direct and substantial interest
in the matter…
[13.] The court in
Judicial Service Commission and Another v Cape Bar Council and
another
held that …
[15.]
The applicant in this matter do not have an agreement with
ABSA, Peez property secured a bond from ABSA being aware
of the
condition of the subdivision and knew that Portion 1 belonged to the
applicant. ABSA has recourse against Peez property,
not the
applicant. The issue of non-joinder cannot be used to punish the
applicant for the results that was created by Peez property.
[29]
[quoted
verbatim
,
but without footnotes]
[57]
The authority cited in the preceding paragraph captures the correct
position of our law, although
what is stated in the last paragraph
from the Judgment, quoted above – with respect – was not
necessary, even if it
did not detract from the correct position held
by that court. The court
a
quo
merely
expanded on its view that Absa lacked a direct and substantial
interest in the subject-matter before it. It is precisely
for that
reason that we should be reminded
that
an appeal does not lie against the reasons given for judgment, but
rather the substantive order made by the court.
[30]
[58]
The primary vehicle for joinder in the high court is rule 10 of the
Uniform Rules. Its provisions
are rendered applicable to applications
by virtue of the provisions of rule 6(14). It provides, among others,
for joinder of persons
as respondents
in
one application where the question arising between the respondents or
any of them and the applicant ‘depends upon the determination
of substantially the same question of law or fact’, as would
arise if the respondents were sued separately.
[31]
[59]
The learned author of
Erasmus:
Superior Court Practice
[32]
provides
an immensely aidful commentary on the legal principles pivoting the
test for joinder, as follows:
[t]he
test is whether or not a party has a ‘direct and substantial
interest’ in the subject matter of the action, that
is, a legal
interest in the subject matter of the litigation which may be
affected prejudicially by the judgment of the court. A
mere
financial interest is an indirect interest and may not require
joinder of a person having such interest. The mere fact
that a
party may have an interest in the outcome of the litigation does not
warrant a non-joinder plea. The rule is that any
person is a
necessary party and should be joined if such person has a direct and
substantial interest in any order the court might
make, or if such an
order cannot be sustained or carried into effect without prejudicing
that party, unless the court is satisfied
that he has waived his
right to be joined.
[33]
[quoted
without footnotes]
[60]
And,
the learned author
, further, states
that:
[a]part
from the obligatory joinder of a party who has a direct and
substantial interest in the subject matter of the litigation,
a
defendant may be joined under the common law on grounds of
convenience, equity, the saving of costs and the avoidance of
multiplicity
of actions.
[34]
[quoted
without footnotes]
[61]
Counsel for the appellants, further from what is attributed to him
above, criticised the dismissal
by the court
a
quo
of his clients’ non-joinder
objection. His criticism was, primarily, on the basis that that court
applied a wrong test for
joinder
.
[62]
To recap: the test for joinder is whether a person to be joined has
‘a direct and substantial
interest in the subject-matter of the
litigation’ which may lead to the prejudice of such party that
has not been joined.
[35]
[63]
The court
a
quo
,
cited the decision in
Judicial
Service Commission and Another v Cape Bar Council and Another
.
[36]
This, unequivocally, confirms that the court
a
quo
was
aware of the correct test for joinder. In
Judicial
Service Commission
the
Supreme Court of Appeal (‘the SCA’) agreed with the
dismissal of a point in
limine
raised
by the Judicial Service Commission (‘the JSC’) of
non-joinder of the candidates for judicial appointment, who
were
interviewed by the JSC, in an application by the Cape Bar Council.
The latter complained about the JSC’s decision to
only fill one
of three vacancies advertised. The JSC argued that part of the relief
sought ‘had a direct bearing on the interests
and rights’
of the candidate(s). But, the SCA disagreed and confirmed – as
settled law - the fact that ‘joinder
of a party is only
required as a matter of necessity – as opposed to a matter of
convenience – if that party has a
direct and substantial
interest which may be affected prejudicially by the judgment of the
court in the proceedings concerned’.
[37]
[64]
I understand the above test to comprise the following components: (a)
a direct and substantial
interest in the subject matter before a
court, and (b) possible prejudice to that party if not joined, due to
existence of a ‘direct
and substantial interest’ holding
on its part. Although, these components need to be considered
jointly, as opposed to individually,
it is reasonable to imagine that
a person may have substantial interest in a matter, which interest
may not be direct. And,
that the indirect nature of such interest,
substantial or not, would render the possibility of prejudice remote
or even unlikely.
In such an instance, joinder wouldn’t be
necessary.
[65]
The relief sought and granted by the court
a
quo
for
the subdivision of the Property to allow Mr Smith to own Portion 1
does not appear to have any prejudice to Absa, as a holder
of
security or mortgage bond over the entire Property.
[38]
It has no direct bearing on the mortgage bond and does not deprive
Absa of its rights of security borne thereby. This is the very
reason
why the issues raised for determination before the court
a
quo
and
in this appeal did not deal with the terms and conditions of Absa’s
security. All that was said is that Absa’s consent
ought to be
obtained in terms of the suspensive condition in the 2020 Addendum.
It was not stated that the agreements between the
appellants or
Peezee and Absa have similar requirements as to Absa’s consent
to those in the 2020 Addendum, including the
so-called ‘suspensive
condition’. Put differently, no evidence was led before the
court
a
quo
or
in argument before this Court that Absa advanced the loan secured by
the mortgage bond on condition that it would be required
to consent
to the terms of the 2020 Addendum or even the 2020 Sale Agreement
itself. Absa, actually, may have been unaware and,
even, not made
aware of the proposed subdivision by Peezee or its proprietor and
director Mr Ndebele. Therefore, any joinder of
Absa would, also, have
not directly contributed to the subject matter before the court
a
quo
.
Absa’s rights and interests are contained in contractual
instruments separate from those which served before that court.
[66]
I say this also mindful of what Mr Ndebele said in the answering
affidavit regarding his telephone
talk with some unnamed
‘representative of ABSA Bank’ who advised (without a
confirmatory affidavit) of Absa’s
position to require payment
from Mr Smith for cancellation of the mortgage bond commensurate with
the size of the portion released
from the encumbrance.
[39]
[67]
But, equally, Absa cannot be held to have informally waived joinder
to the proceedings,
[40]
in the
event that joinder was necessary. For such extra-judicial notice of
waiver or to abide the outcome would suffice if it were
unequivocal
and preceded by proper information to the waiving or abiding party of
the nature and purpose of the proceedings.
[41]
This, in my view, can only be achieved by joinder or at least service
of the complete set of papers through which the proceedings
are
initiated and not the informal telephone talk alluded to by Mr
Ndebele above. None of these was done in respect of Absa in
this
matter and, thus, no waiver of joinder is imputed to Absa.
[68]
Absa may have
some
form of interest in this matter. But, its interest, substantial as it
may possibly be, is not direct and, even if it is direct,
does not
lead to any prejudice on the part of Absa, due to it not having being
a party in proceedings before the court
a
quo
.
The impugned order made by the court
a
quo
for
the subdivision of the land or Property over which Absa holds
security by way of a mortgage bond does not deprive Absa of its
real
right of security over the immovable property.
[42]
[69]
It
is important to also note that the authorities do not permit of a
mechanical, technical or ritualistic application of the joinder
rule.
[43]
I have
considered the probable
effect
of the order granted by the court
a
quo
,
once executed. It is true that Absa may have to be consulted
regarding its mortgage bond over the Property. But, the assertion
of
Absa’s security rights can never serve to cancel out (or to
expropriate, this being said liberally or loosely) Mr Smith’s
rights as to property (i.e. Portion) and
vice
versa
.
Therefore, the dismissal of the non-joinder point in
limine
by
the court
a
quo
was
proper and was no misdirection on the part of that court. This ground
of appeal does not, also, support the appeal.
[70]
Before I move to the next point, I should also state my rejection of
the appellants’ contention
that any order of the court
regarding the Property would be unenforceable against Absa as a
registered bondholder, due to non-joinder.
The order of the court is
always enforceable unless and until set aside by another order of the
court.
[44]
Other grounds of
appeal
[71]
The appellants have also raised other grounds of appeal or aspects
critical of the Judgment of
the court
a
quo
.
These include a thesis developed on the distinguishing factors of
declaratory orders and orders for specific performance or their
requirements. It is trite that the Court is not limited to the
contents of the notice of motion or the nature and extent of such
contents, but may grant relief indicated and found established by
satisfactory evidence on the papers.
[45]
Therefore, I do not find the material grounds in this regard
meritorious or the criticism earned.
[72]
The appellants – in support of the upholding of this appeal –
also alleged possible
contravention by Mr Smith and/or the Trust of
the laws and rules relating to transfer duty, capital gains tax and
donations tax
concerning the transactions involved in this matter. I
do not consider any determination of these within the scope of this
appeal.
Also, I agree with counsel for Mr Smith that, as with the
ground that Portion 1 is non-existent, this too is a novel argument
on
the part of the appellants not contained in their opposition
papers before the court
a quo.
[73]
I must also add that I find it ironic that the appellants made the
effort to make the tax evasion
allegations against the respondents,
even at this appeal stage, but the appellants, themselves, still
found the judicial enquiry
of this Court worthy of a recusal
application, disposed of above.
[46]
Be that as it may, the alleged tax evasion may be appropriately
pronounced upon by the relevant authorities, but can never serve
as a
ground for the reversal of the orders made (in the Judgment of the
court
a
quo
)
through this appeal.
Conclusion and
costs
[74]
The appeal fails on all bases advanced by the appellants, including
those not specifically dealt
with above and regarding the costs order
made by the court
a quo
.
[75]
Regarding costs, I do not consider anything warranting deviation or
departure from the convention
that the appellants, as the
unsuccessful parties, ought to be held liable for costs of their
pursuit of this appeal. Therefore,
a term will be included in the
order I propose below to the effect that Mr Ndebele and Peezee
are
liable to pay the costs of this appeal, jointly and severally.
Order
[76]
In the result, I propose that an order be made by the Court in
the following terms:
1.
the appeal is dismissed, and
2.
the first and second
appellants are liable, jointly and severally, to pay the costs of the
appeal, the one paying the other to be
absolved.
Khashane
Manamela
Acting
Judge of the High Court
I
agree
LGP
Ledwaba
Acting
Judge of the High Court
I
agree, and it is so ordered.
Selby
Baqwa
Judge
of the High Court
Date
of Hearing
: 10 September 2025
Date
of Judgment
: 17 December 2025
Appearances
:
For
the First and Second Appellants
:
Mr
T Mpahlwa
Instructed
by
: Pule Inc,
Johannesburg
c/o John Nkulu Attorneys,
Pretoria
For
the First Respondent
: Mr ZE
Fakude
Instructed
by
: Ehlers
Fakude Inc, Pretoria
[1]
Par
[56] below for the full terms of the order made in the Judgment.
[2]
Application
for recusal, CaseLines (‘CL’) 068-2.
[3]
CL 068-7.
[4]
CL 068-17.
[5]
CL 068-30 to
31.
[6]
Founding
affidavit (‘FA’) annexure ‘JPS2’, CL 001-21
to 28.
[7]
FA
annexure
‘JPS3’, CL 001-29 to 33.
[8]
Portion
1 Agreement (i.e.
FA
annexure
‘JPS3’) clause 2, CL 001-30.
[9]
Par
[12] above.
[10]
FA
annexure
‘JPS4’, CL 001-34 to 45.
[11]
Par [20] below.
[12]
FA
annexure
‘JPS6’, CL 001-49 to 51.
[13]
Answering Affidavit
(‘AA’) annexure ‘PN2’, CL008-82.
[14]
Par
[56] below for the full terms of the order made in the Judgment.
[15]
The
2020
Addendum signature page, CL 001-50.
[16]
Pars
[53]-[70] below, on the non-joinder ground of appeal.
[17]
Judgment of the court
a
quo
dated
3 March 2023, CL 0-1 to 8.
[18]
Western
Johannesburg Rent Board and Another v Ursula Mansions (Pty) Ltd
1948
(3) SA 353 (A).
[19]
Western
Johannesburg Rent Board v Ursula Mansions
1948
(3) SA 353
(A) at 354-355, cited with approval in
Cape
Empowerment Trust Ltd v Fisher Hoffman Sithole
2013
(5) SA 183
(SCA) [39]
.
See also
President
of the Republic of South Africa and Another v Tembani And Others
2025 (2) SA 371
(CC)
[73]-[74].
[20]
FA
annexure
‘JPS3’, CL 001-29 to 33.
[21]
Section
28(2), read with section 2(1), both of the ALA. See also
Rockbreakers
and Parts (Pty) Ltd v Rolag Property Trading (Pty) Ltd
(498/08)
[2009] ZASCA 102
;
2010 (2) SA 400
(SCA);
[2010] 1 All SA 291
(SCA)
(18 September 2009) [5]-[7].
[22]
The
2020
Addendum signature page, CL 001-50.
[23]
RC
Claassen and M Claassen,
Claassen's
Dictionary of Legal Words and Phrases
(Juta
2025).
[24]
Hiemstra VG and Gonin
HL,
Trilingual
Legal Dictionary
(3rd
edn, Juta 1992).
[25]
Ibid
.
[26]
2020
Addendum par 001-49.
[27]
Hiemstra and
Gonin,
Trilingual
Legal Dictionary
.
[28]
Pars
[7]-[10] above.
[29]
Judgment, CL 0-5 to 0-6.
[30]
See the authorities cited
in footnote 19 above.
[31]
Rule 10(3) of the Uniform
Rules.
[32]
DE
van
Loggerenberg,
Erasmus:
Superior Court Practice
(Service
26, Jutastat e-publications May 2025) (‘
Erasmus:
Superior Court Practice
’
)
RS
27, 2025, D1 Rule 10-3 to 10-5
.
[33]
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 10-3 to 10-5
.
[34]
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 10-9
.
[35]
Absa
Bank Ltd v Naude NO
2016
(6) SA 540
(SCA) [10];
115 Electrical
Solutions (Pty) Ltd and Another v
City of Johannesburg Metropolitan
Municipality and Another
(86870/19)
[2021] ZAGPPHC 146 (16 March 2021) [76];
Eugene
Prinsloo v Donovan Theodore Majiedt N.O and Another
(257/2024)
[2025] ZASCA 74
(30 May 2025) [13]-[14].
[36]
Judicial
Service Commission and Another v Cape Bar Council and Another
(818/2011)
[2012] ZASCA 115
;
2012 (11) BCLR 1239
(SCA);
2013 (1) SA 170
(SCA);
[2013] 1 All SA 40
(SCA) (14 September 2012) (‘
Judicial
Service Commission v Cape Bar Council
’
).
[37]
Judicial
Service Commission v Cape Bar Council
[12].
[38]
I consider the facts in
Standard
Bank of South Africa Ltd v Swartland Municipality And Others
2011
(5) SA 257
(SCA) distinguishable from in this matter.
[39]
AA par 21, CL 008-51.
[40]
Fluxmans
Incorporated v Lithos Corporation of South Africa (Pty) Ltd (No
2)
2015
(2) SA 322 (GJ)
at 328F-G.
See
also
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 10-8.
[41]
In
Re Boe Trust Ltd And Others NNO
2013
(3) SA 236
(SCA) [20];
Amalgamated
Engineering Union v Minister of Labour
Amalgamated
Engineering Union v Minister of Labour
1949
(3) SA 637
(A) at 659-660
.
See
also
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 10-8.
[42]
Lizelle
Kilbourn and Maryna Botha,
The
ABC of Conveyancing
(Juta,
2023) par 38.6.2.
[43]
Wholesale
Provision Supplies CC v Exim International CC
1995
(1) SA 150
(T)
at
158D-E;
Rosebank
Mall (Pty) Ltd And Another v Cradock Heights (Pty) Ltd
2004
(2) SA 353
(W)
at
368C-E;
Bester
NO And Others v Mirror Trading International (Pty) Ltd t/a MTI (in
Liquidation) And Others
2024
(1) SA 112
(WCC)
[24].
See further
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 10-8.
[44]
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development
Company Ltd and Others
(619/12)
[2013] ZASCA 5
;
[2013] 2 All SA 251
(SCA) (11 March 2013) [17];
Minister
of Home Affairs And others v Somali Association of South Africa And
Another
2015
(3) SA 545
(SCA) [34];
Munsamy
And Another v Astron Energy (Pty) Ltd And Others
2022
(4) SA 267
(GJ) [46].
See
also
Oudekraal
Estates (Pty) Ltd V City Of Cape Town And Others
2004
(6) SA 222
(SCA) [26] on validity of unlawful administrative actions
until set aside.
See
further
Erasmus:
Superior Court Practice
RS
27, 2025, D1 Rule 42-5.
[45]
Port
Nolloth Municipality v Xhalisa And Others; Luwalala And Others v
Port Nolloth Municipality
1991
(3) (C) at 112D-G;
Somali
Association of South Africa And Others v Refugee Appeal Board And
Others
2022
(3) SA 166
(SCA) [97].
[46]
Pars [7]-[10] above.
sino noindex
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