Case Law[2024] ZAGPPHC 675South Africa
Kgoele v Key Results Properties (Pty) Ltd and Others (94127/2016 ; 64481/2017) [2024] ZAGPPHC 675 (1 July 2024)
High Court of South Africa (Gauteng Division, Pretoria)
1 July 2024
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Kgoele v Key Results Properties (Pty) Ltd and Others (94127/2016 ; 64481/2017) [2024] ZAGPPHC 675 (1 July 2024)
Kgoele v Key Results Properties (Pty) Ltd and Others (94127/2016 ; 64481/2017) [2024] ZAGPPHC 675 (1 July 2024)
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sino date 1 July 2024
FLYNOTES:
PROPERTY – Agreement of sale –
Misrepresentation
–
Applicant
and late husband signed documents they believed were for loan –
Attempting to avoid sale by auction of their
home –
Approached by agents of respondent – Respondent continued
scheme to defraud applicant – Evidence
and circumstances do
not suggest that applicant consented to sell her property to
respondent – Sale agreement and lease
agreements declared
void and invalid because contracts are tainted by fraudulent
misrepresentation – Transfer declared
void and registrar of
deeds ordered to register property in name of applicant.
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
# IN THE HIGH COURT OF
SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
# GAUTENG DIVISION,
PRETORIA
GAUTENG DIVISION,
PRETORIA
Case No: 94127/2016
Case No: 64481/2017
(1)
Reportable: NO
(2)
Of interest to other judges: NO
(3)
REVISED: YES
SIGNATURE:
DATE: 01 July 2024
In the matter between:
MMAMABIRI LEAH
KGOELE
Applicant
(ID Number: 4[...])
And
KEY RESULTS PROPERTIES
(PTY) LTD
First Respondent
(REG NO:
2007/025924/07)
ERNST PHILLIPUS
BLIGNAUT
Second Respondent
THE REGISTRAR OF DEEDS
PRETORIA
Third Respondent
SOUTH AFRICAN HOME
LOANS
Fourth Respondent
# JUDGMENT
JUDGMENT
## LESO AJ
LESO AJ
INTRODUCTION
1.
This is an application for cancellation of the
registration and transfer of the property described as Erf 1[...],
Theresapark Extension
1, Pretoria, Registration Division J.R.,
Province of Gauteng in favour of the first respondents in terms of
provisions of Section
6(1) and (2) of the Deeds Registries Act, Act
47 of 1937 (“the Act”), and to cancel all rights accorded
to the first
respondent by virtue of title deed with title deed
Number: T2[...]
and to register the above
property in the name of the applicant.
## BACKGROUND
BACKGROUND
2.
This case involves a dispute over the transfer of
property located at Erf 1[...], Theresapark Extension 1, Pretoria,
Registration
Division J.R., Province of Gauteng which was transferred
from the applicant to the first respondent in 2008. The applicant
(Leah)
alleges that the transfer of the property to the first
respondent, Money Box Inv 136 (now known as Key Results Properties)
was
induced by misrepresentation. The Leah seeks an order to declare
the transfer of the property void and the property restored to
her
ownership.
3.
The applicant (Leah) instituted two applications
before this court. The first application is under case number:
94127/2016 for the
rescission of the Eviction Order granted by the
Court in favour of Key Results Properties (the first respondent) on
21 February
2019. The second application is in terms of the
provisions of Section 6(1) and (2) of the Deeds Registries Act 47 of
1937 (“the
Act”) under case number 64481/2017.
4.
The first respondent opposed both applications and
the parties agreed that the court would hear the applications
simultaneously.
The Court will first determine the Section 6
application because the application also impacts the rescission
application. If the
applicant succeeds the rescission application
also succeeds. A complete eviction application, inclusive of the
annexures is attached
to the rescission application however the
founding papers to the eviction application are not relevant for
purposes of deciding
the Section 6 application.
5.
South African Home Loans (Pty) Ltd (“SAHL”)
is joined in the proceedings as a party who has a direct and
substantial
interest in this application because it is a mortgagee in
respect of the property in dispute.
## COMMON CAUSE FACTS
COMMON CAUSE FACTS
6.
Leah and her late husband purchased a property
known as Erf 1[...] Theresa Extension 1, Pretoria, also known as
5[...] W[...] Street,
Theresapark, Akasia which was mortgaged by ABSA
Bank in the amount of R217 000.00(Two Hundred and Seventeen Thousand
Rand) with
the mortgage property repayment of R2 170(Two Thousand One
Hundred and Seventy Rand) per month. A Foreclosure Order was granted
in favour of ABSA after their account fell in arrears during August
2007 with the default amount of R26 020(Twenty-Six Thousand
and
Twenty Rand) for 12 months.
7.
Leah and her late husband went to the first
respondent's offices to sign some legal documents including some
contracts after the
first respondent’s agents approached them
regarding the property, two weeks before the property was sold on
auction approached
them. After signing the contracts, from 1
September 2007 they made payment to the first respondent in the
amount of R3500 every
month. From March 2008 the applicant made
payment to the first respondent in the amount of R4 200 per month
until January 2011
then a payment of R4600 per month. The last
payments were from October 2011 to August 2013 when the applicant
made monthly payments
of R5000. The total amount paid by the
applicant to the first respondent was R331 600.
8.
On or about August 2010 Leah and Her husband
became aware that the first respondent was the owner of the property
and instructed
Frank Senoko Attorneys to enquire from the first
respondent about the transfer of the property to the first
respondent's name,
the letter from part of the evidence bundle before
this court.
Allegations of
misrepresentation
9.
The merit of the applicant’s case lies in
the allegations of misrepresentation by the respondents which led to
the signing
of the documents as follows:
9.1
Memorandum of Lease Contract Agreement (Lease
Agreement for 12 months from 1 October 2007 to 30 September 2008 in
the amount of
R3500 dated and signed on 30 August 2007.
9.2
The Offer to Purchase the property for R278 300
was signed on 30 August 2007.
9.3
Power of attorney nominating Jacques Du Preez to
act as their agent prepared by the conveyancer, C Botha on 30 August
2007.
9.4
Commissioned Special Power of Attorneys prepared
by Janse Van Rensburg nominating Jacques Du Preez to act as their
agent on behalf
of Leah and her husband on 30 August 2007.
9.5
Memorandum of Lease Contract dated 13 March 2008.
9.6
Power of Attorney to Transfer prepared by Janse
van Rensburg signed by Jacques du Preez on behalf of Leah and her
husband on 07
December 2007appointing Liezel Botha as their agent
three months later. After the two had nominated Zelda Magrieta Janse
Van Rensburg
and Zelda Lerina Botha and Jacques du Preez authorized
in terms of the special power to pass transfer on behalf of the
applicant
and her husband.
9.7
On October 2009 Leah and her husband signed an
Offer to Purchase to Key Results(PTY) Ltd or Nominee, (the seller) in
relation to
the same property in the amount of R490 541.00.
10.
It is an opportune moment to indicate that all the
above-listed documents have challenges that affect their validity. I
will discuss
those challenges later.
11.
The applicant complained that the property was
illegally obtained by the respondents because the contracts and other
legal documents
to transfer the property to the first respondent were
signed under the pretence that she was receiving a loan from the
first respondent
to settle her bond. She contends that she is the
true owner of the property because the agreement between her and the
respondents
is void, therefore the property must be returned to her
because the transfer of ownership was invalid. She relied on
Quartermark Investments (Pty) Ltd v
Mkhwanazi and Another
2014 (3) SA 96
(SCA)
and Legator Mckenna Inc & v
another Shea and others 2010(1) SA 35(SCA )
in
her claim for vindication
.
12.
The applicant avers that when she and her husband
were stressed and panicking that their property was going to be
auctioned they
were approached by the agents of the first respondent
who promised to assist them in rescuing their property from auction.
After
the meeting with the agents, they went to the respondent's
office to sign the documents without reading them because they
believed
they were signing a loan agreement for the first respondent
to settle the bond with ABSA on their behalf on condition that they
would pay back the loan in instalment with interest and that their
property will serve as a security for the loan and the agreement
for
a loan had an amount which was repaid in monthly instalment. The
applicant relied on
Dole South
Africa(Pty)Ltd v Pieter Beukes (Pty) Ltd 2007(4) SA 577 (C) at 587
.
13.
In opposition the first respondent refutes the
applicant's claim of lack of intention and lack of knowledge on the
basis that the
very nature and meaning of the various documents
signed by the applicant appear clearly from the content of the
documents signed
by the applicant and her husband, meaning the
applicant knew exactly what he was signing.
14.
The first respondent relies on the
caveat
subscriptor
rule and disputes the
applicant’s allegations of misrepresentation and lack of
intention to sell and pass transfer of the
property while admitting
all other facts or circumstances that led to the signing of the
documents except the allegation on what
the agents communicated to
the applicant.
15.
The first respondent's arguments were to the
effect that the Section 6 application is not
bona
fide
because the applicant has no
defence in light of the documents signed. The facts in the founding
affidavit deposed by the applicant
do not demonstrate that the
applicant and her husband signed the contracts presented to them in
iustus error
and
the authority of
Dole
referred
to by the applicant is distinguishable from the facts of the
applicant's case because in paragraph 587 of Dole, it is stated
that
a party to a contract who has concluded
same whilst labouring under a bona fide and reasonable mistake as to
its contents will not
be bound by the provisions thereof.
In
the same breath, the counsel representing the respondents admitted
that the contracts are not to the best of the standard of
a legally
binding contract.
16.
At the end of his arguments, counsel for the first
respondent raised the
point in limine
that the property is encumbered by a
mortgage bond bearing mortgage bond number: 2[...]
for
an amount of R320,000.00 in favour of South African Home Loans (Pty)
Ltd (“SAHL”) registered on 11 March 2008 and
argued with
reliance on
Plascon Evans Rule(see
Plascon-Evans Paints Limited v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3)
SA 623
(A)
that the applicant cannot
succeed in obtaining the relief applied for in the notice of motion
because there she should have foreseen
that a dispute of fact would
arise however she elected to proceed by way of application
proceedings.
17.
I was surprised when the counsel for the
respondent only raised this issue at the end of his submission
because this was not one
of the issues to be dealt with by the court
in the joint minutes. It is clear from the respondent's replying
affidavit and the
subsequent submissions that all the averments in
the founding are not in dispute. The affidavit contains sufficient
evidence and
factual averments necessary to support the applicant's
cause of action. It is not necessary to seek oral evidence because
the respondent
raised is not a dispute of fact but a dispute of law
which the court swiftly deals with hereunder.
## ISSUES TO BE DETERMINED
ISSUES TO BE DETERMINED
18.
Whether the applicant made a case for cancellation
of the title deed in the name of the first respondent and the
restoration of
the property in her name.
## DISCUSSION AND APPLICABLE
LAW
DISCUSSION AND APPLICABLE
LAW
19.
The dispute relates to the contracts signed by the
applicant which caused the transfer of the property to the first
respondent’s
name. The applicable law is a law of contract
where the capacity to contract, the purpose of an agreement or
contract, the capacity,
the offer, the acceptance, awareness and
consideration form the essential elements to make a contract legally
binding as expressed
in literature and case law. The first respondent
did not deny that his agents went to the applicant's home two weeks
before the
applicant's property was to be sold on auction. The
circumstances of the case suggest that objectively, the parties had
the capacity
and the intention to enter or create legally binding
contracts on 30 August 2007. The remaining issue in terms of the
above elements
is whether the applicant was aware of the purpose of
the contracts which she was signing.
20.
The applicant's case is that the first respondent
and its agents coerced her to sign the contract by misrepresenting
the purpose
of the agreements between them. She denied that she
intended to sell her property to the first respondent and denied the
monthly
payments to the first respondent were for rental but for loan
repayment.
21.
The onus is on the applicant to prove
misrepresentation. She must prove that she did not consent to sell
her property and she relied
upon the untrue statement which induced
her to enter into the contract to succeed with her claim for
misrepresentation. Consequently,
the transfer of the property to the
first respondent will be void because the agreements or contracts
signed by the applicant will
be declared unlawful and nullified as if
they never existed.
22.
When dealing with the issue of misrepresentation
the court in
Quartermark Investments
(Pty) Ltd v Mkhwanazi and Another
2014
(3) SA 96
(SCA) defines a misrepresentation ‘
as
a false statement of fact, not law or opinion, made by one party to
another before or at the time of the contract, concerning
some matter
or circumstance relating to it’
.
The fact that the first respondent sent agents to the applicant a few
days before the auction, invited her to their office to
sign several
legal documents and contracts then took payment from the applicant a
month after the contracts were signed supports
when it was not even
the owner of the property which it and later took possession of
supports the applicant's case that that the
applicant not only
misrepresented the true purpose of the contracts but had intention to
defraud her and deprive her of her ownership
of the property. I will
later explain why the first respondent's actions were fraudulent when
I discuss the issues I observed on
the signed contracts.
23.
The applicant denies that she consented to sell
her property to the first respondent and that the contracts she
signed were induced
by misrepresentation. In
Quartermark
the court said the following about
misrepresentation:
‘
A
party seeking to avoid a contract on the ground of misrepresentation
must prove that:
(a)
the representation relied upon was made; (b) it was a representation
as to a fact; (c) the representation was false; (d) it
was material,
in the sense that it would have influenced a reasonable person to
enter into the contract; and (e) it was intended
to induce the person
to whom it was made to enter into the transaction sought to be
avoided.’
The applicant was
already losing her property in two weeks when she was approached by
the respondent’s agents. It was after
meeting the agents that
led to the signing of the contract thereafter the applicant made
monthly payments to the first respondent
until she paid the
outstanding mortgage of R331 600 while she enjoyed undisturbed
occupation of the property until 2019. The chain
of events clearly
indicates that the respondents indeed lied to the applicant before or
during the signing of the agreements. It
is reasonable to accept that
the representation or misrepresentation by the respondent that she
consented to a loan agreement to
save her property from execution was
material in the sense that it influenced her to enter into a contract
to which she would not
have.
24.
In Absa Bank Ltd v Fouche 2003(1) SA 176 SCA
180 and Karoo & Eastern Board of Executors & Trust Co v Farr
1921 AD 413
the following was said with
reference to policy consideration: A
representation
is not regarded as wrongful merely because it is false and actually
misled the other contracting party, the facts
or facts to which the
representation relates must fall within the compass of the norm
protecting the interest of the negotiating
parties against
misrepresentation
.
The
misrepresentation must be material or relate to material facts and
the facts are material if they are likely to induce someone
to enter
into the contract
. The fact that the
applicant’s property was going to be sold in two weeks because
she was in default of payment of the Bond,
the fact that the first
respondent sent agents to the applicant before the auction, then
settled the full outstanding Bond with
Absa in full while the
applicant remained in occupation of the property is material facts
which are likely to induce someone to
conclude a contract.
25.
In Brink v Humphries & Jewell (Pty) Ltd
[2005]
2 All SA 343
(SCA) the court found that ‘
the
appellant had acted under a misapprehension in signing the credit
application form. The next step was the objective enquiry
as to
whether the reasonable man would have been misled…
’
The
applicant's version that she believed that she was consenting to the
loan agreement is more probable and the argument by first
respondent’s argument that the applicant was aware that she was
signing a sale agreement because of headings or nature and
meaning of
the various documents signed by the applicant is not plausible
because one of the elements awareness in creating a legally
binding
contract is awareness or meeting of minds. The applicant's case is
that she did not read the documents and contracts presented
because
she was aware that she was signing a loan agreement as presented to
her by the first respondent justifies the applicant's
claim of
iustus
error
and the first respondent's
defence of maxim
caveat subscriptor
cannot stand because the circumstance
and the fact of the case prove that the applicant made a reasonable
mistake in signing a contract
without reading them.
26.
The following was held in relation to
caveat
subscriptor rule
in
Brink
‘
The caveat subscriptor rule
is based on the doctrine of quasi mutual assent. A party to a
contract can rely on iustus error to repudiate
his apparent assent to
a contractual term if he has not, by his conduct, led the other
party, as a reasonable man, to believe that
he was binding himself.
If the other party caused the iustus error through misrepresentation,
then the party relying on the defence
is not bound by the contract.
Such misrepresentation need not be fraudulent. Innocent
misrepresentation suffices where it is material,
and the signatory
can rescind the contract because of the misrepresentation, provided
he can show that he would not have entered
into the contract if he
had known the truth
. The fact that the
first respondent claim that the applicant is bound by the agreements
because he has signed while the counsel
representing both could not
explain the irregularities in the contract is incomprehensible.
27.
The fact that the first respondent expected the
applicant to have known and or appreciated what she was agreeing to
is not plausible
neither does the knowledge by the applicant form a
basis for the creation of a legally binding contract. The first
respondent's
defence that the applicant is bound by the contracts
because of what is contained in their headings supports the
applicant's case
that the documents were not explained to her. The
first respondent’s reliance on the headings or nature and
meaning of the
various documents signed by the applicant is
frivolous.
28.
There are two versions before me as to what the
parties agreed to in August 2007. From the events and the
circumstances. The first
respondent did not dispute the version of
events that led to the conclusion of the contracts as averred by the
applicant. The only
objection related to the circumstance that led to
the conclusion of the contracts and the fact that the applicant was
not specific
about the names of the agents. The rest of the
respondent's argument is technical and repetition of the applicant’s
case.
The applicant's version is that the first respondent approached
her and her late husband with the promise to assist them in rescuing
the house from being auctioned by settling the bond at ABSA Bank on
their behalf on condition that the applicant and the respondent
would
pay back the loan in instalments. The inescapable conclusion is that
the applicant's version is the more probable one.
29.
It is now convenient to deal with the issues of
the problems which are clear from the contracts and other legal
documents as listed
in paragraph 9 and my finding on fraudulent
misrepresentation.
29.1
Offer to Purchase the property signed on 30 August
2007 is incomplete and Ellen J De Wet is a purchaser, not the first
respondent.
The transfer of the applicant's property to the first
respondent on the strength of this document is fraudulent.
29.2
The Power of Attorney nominating Jacques Du Preez
to act as their agent prepared by the conveyancer, C Botha on 30
August 2007 is
not un- commissioned. This constitutes fraud.
29.3
There was no purpose in concluding the first lease
agreement with the respondent because he was not even the owner of
the property
and it was absolutely unnecessary to conclude the second
lease agreement while there was, according to the respondent, a
binding
lease agreement which was still in force. The lease
agreements signed by the applicant were induced by fraud and are
invalid.
30.
The court could not overlook the fact that most of
the documents do not fit the required standard of a simple contract
or a legally
binding document. The circumstances surrounding the
signing of such contracts are questionable. During the hearing, the
court raised
concern about the chronology of events that led to the
transfer of the property into the hands of the first respondent to
which
the counsel could not respond. The counsel representing the
respondent distanced himself from making any submissions regarding
this issue.
31.
The respondent relies on the offer to purchase of
9 October 2009 where the respondent sold the immovable property to
the applicant
in the amount of R490 641.00 after the applicant had
paid the full bond amount to the first respondent, this is not
idealistic.
The fact that the applicant continued to pay for the
property he no longer owned and had to buy it again with twice the
amount
of the original bond she had secured is a travesty.
32.
It is
clear from the sequence of events that the respondent continued their
scheme to defraud the applicant by attempting to sell
her a property
that she has fully paid for. It is apparent from the sequence of
events that the applicant was put in the lion’s
den to coerce
her in her desperate and weakest moment to sign off their property to
them. The respondent defence that the state
of the legal documents
signed by the applicant is left to be desired. in
African
Realty Trust Ltd v Holmes
1922
AD 389
at
403
it
was said:
'But,
as a Court, we are after all not concerned with the motives which
actuated the parties in entering into the contract, except
insofar as
they were expressly made part and parcel of the contract or are part
of the contract by clear implication
.'
In this case, the lease agreements were used to masquerade as a loan
agreement in that way the applicant would not notice the
true
intention or motive of the respondents to transfer her property. It
was not unreasonable for the applicant to believe that
she had signed
a loan agreement which he paid back.
33.
There is no logic in the first respondent's
submission that the applicant entered into a sale agreement with the
plaintiff on condition
that she pay the first respondent rental on
the property it did not own. The applicant started paying rents in
September 2007 while
property was only registered in the first
applicants in 2008.In
Brink
the
court found that a hidden deed of suretyship incorporated in a credit
application constituted a trap for the unwary.
Ex
facie
the two lease agreement which the
applicant was made to sign created a perfect disguise for the
respondent and a trap for the applicant
to believe that he was
actually paying back the loan. The contracts will then be cancelled
on the basis fraudulent misrepresentation
by the first respondent.
34.
It is common cause that the respondents obtained a
default court order for the eviction of the applicant on 21 February
2019 and
that court order is still in force and is binding on the
applicant. The eviction order was erroneously obtained by the first
respondent
because the first respondent was not the lawful owner of
the property. The requirement for eviction is ownership which is
lacking
in the case of the first respondent. The above order must be
rescinded in order to restore the property to the applicant.
35.
The circumstance of this case requires the law of
natural justice which aim to secure justice and to prevent
miscarriage of justice
should apply under these circumstances. The
applicant did not only lose ownership of her property but she is
being evicted from
the home she has fully paid with interest. The
contracts were solely for the benefit of the first respondent and the
transactions
with the first respondent left the applicant and her
family in a worse-off position. It is time that justice is seen to be
done
not only by
vindication
but
ensuring that there is nothing that connects the applicant to the
respondents and that the applicant’s right of ownership
is
restored without any obligations. This is the only way to ensure
reasonableness, equity and fairness under natural justice.
36.
In
Beadica
231 CC and Others v Trustees
for
the time being of the
Oregon
Trust and Others
[2020]
ZACC 13
and
ST
v CT
[2018] ZASCA 73
,
2018 (5) SA 479
(SCA)
the
court held that ‘the determination whether an agreement offends
public policy entails the weighing-up of competing values.
The court
had to determine the extent to which a court may refuse to enforce
valid contractual terms on the basis that it considers
that
enforcement would be unfair, unreasonable or unduly harsh is a
burning issue in the law of contract in our new constitutional
era.
The applicant has fully paid the bond on the property, she has been
paying the Municipal account which included property rates
and the
account was in her name. She stayed in an undisturbed occupation
until the first respondent obtained an eviction against
in her
absence. On the other hand, the first respondent used the property to
make money out of the applicant by recovering the
full outstanding
bond that it paid to Absa
37.
The applicant has fully paid the bond on the
property and she is entitled to transfer ownership of the property
into her name. The
respondent must return the property to the
applicant by signing all transfer and necessary documents.
38.
The applicant has fully paid the bond on the
property and she is entitled to transfer ownership of the property
into her name. The
respondent must return the property to the
applicant by signing all transfer and necessary documents. The
respondent paid in full
the outstanding mortgage of R331 600 to Absa.
39.
I am aware that South African Home Loans (Pty) Ltd
(“SAHL”) has an interest in the matter because the
property in dispute
serves as a security. Unfortunately, this is not
the time and place to deal with the third party's interest because
the property
was unlawfully tendered by the first respondent as
security. The applicant sought an order that the first respondent be
liable
to settle in full the existing bond held by the fourth
respondent, pay all transfer and related costs and take necessary
steps
and sign all documents necessary to effect the transfer of the
property known as Erf 1[...], 5[...]
W[...]
street, Theresapark, Pretoria, Gauteng to the
applicant within two months from the date of the order. The court
will not grant this
order because the bond is contaminated by fraud
that led to the unlawful transfer of the property to the first
respondent.
40.
The order that the first respondent should
continue to pay the bond will be scandalous because the first
respondent cannot use the
applicant's property as security without
her consent nor can it obtain a mortgage bond over the property in
dispute because it
is not the owner of the property despite the
registration of the property in its name. The bond with the third
party is compromised.
In any event, I have no intention to force the
applicant into a relationship that never existed or a relationship
that was formed
by lies. The applicant should be allowed to enjoy his
property free from bond or any obligations.
## CONCLUSION
CONCLUSION
41.
The evidence before me and the circumstances of
this case does not suggest that the applicant consented to sell her
property to
the first respondent neither does the evidence suggest
that the applicant consented to rent her property from the first
respondent.
A sale agreement that led to the transfer of the
applicant’s property to the first respondent and the lease
agreements signed
by the applicant is declared void and invalid
because the contracts are tainted by fraudulent misrepresentation.
42.
The court will set aside the court order if it is
satisfied that the judgment or order obtained by the respondent was
erroneously
sought or granted as it is not in dispute that the order
was obtained in the absence of the applicant
43.
The applicant has fully paid the bond on the
property and she is entitled to transfer of ownership of the property
into her name.
The respondent must return the property to the
applicant by signing all transfer and necessary documents.
44.
The
above finding finally settles the eviction order which was granted by
the because the remedy for misrepresentation is
rescission
,
similarly, the eviction order is rescinded.
45.
The applicant sought an order for the Registrar of
the Court to be authorised to sign all documents and take such steps
as necessary
to effect the transfer of the aforesaid property if the
first respondent fails or refuses to effect the transfer of the
property.
The court is not inclined to grant this relief because the
applicant has a recourse at her disposal should the first respondent
not comply with the Order.
## COSTS
COSTS
46.
It is clear from the defence or the explanation
tendered by the first respondent to this court that the first
respondent does not
appreciate the harm and the financial strain he
has subjected the applicant to. Not only in this matter but the
eviction application
and the rescission application. I could gather
from the first respondent's counsel that the first respondent's
business thrives
with a similar modus operandi when he gave a history
of the first respondent's business of buying and selling houses. The
applicants
should not have been before the courts if it was not for
the unlawful conduct of the first respondent and the court should
send
a strong message to the litigants of the first respondent
calibre that frivolous litigation should be discouraged with punitive
costs.
47.
In
Biowatch
Trust v Registrar, Genetic Resources, and Others
2009
(6) SA 232
(CC)
at para 23 the CC questioned if the punitive scale prayed for was
warranted. The CC referred to a matter between the
Public
Protector v South African
Reserve
Bank
2019
(6) SA 253
(CC) at para 8 where Mogoeng CJ noted that ‘costs on
an attorney and client scale are to be awarded where there is
fraudulent,
dishonest, vexatious conduct and conduct that amounts to
an abuse of court process.’
## THEREFORE, I MAKE THE
ORDER AS FOLLOWS:
THEREFORE, I MAKE THE
ORDER AS FOLLOWS:
ORDER
1.
The court order granted on 21 February 2019
for the eviction of the applicant is rescinded and set aside.
2.
The transfer of the property described as
of Erf 1[...], Theresapark Extension 1, Pretoria, Registration
Division J.R., Province
of Gauteng from the applicant to the first
respondent ((known as Money Box Inv 135 (Pty) Ltd) is hereby declared
void
ab initio
and
cancelled.
3.
The third respondent is ordered to cancel
the Deeds Register of Transfer in respect of the first respondent
(known as Money Box
Inv 135 (Pty) Ltd) and the Title Deed Number:
T2[...]in respect of Erf 1[...], Theresapark Extension 1, Pretoria,
Registration
Division J.R., Province of Gauteng in favour of the
first respondent; and to cancel all rights according to the first
respondent
by virtue of said title deed
4.
The third respondent is ordered to register
the property described as Erf 1[...], Theresapark Extension 1,
Pretoria, Registration
Division J.R., Province of Gauteng in the name
of Leah Khoele free from mortgage and any obligations.
5.
The first respondent is ordered to pay the
cost of this application on an attorney and client scale.
The
judgment was handed down electronically and by circulation to the
parties/legal representatives by e-mail and by uploading to
Caseline.
The date of hand- down is the date when the judgment was signed
.
J.T LESO
ACTING JUDGE OF THE
HIGH COURT,
SOUTH AFRICA, GAUTENG
DIVISION,PRETORIA
Date
of Hearing:
26
February 2024
Date
of Judgment:
01
July 2024
## APPEARANCES:
APPEARANCES:
For
the Applicant:
Frank
Senoko
076
961 8530
Email:
fsenoko@gmail.com
Counsel
for applicant SM Molele
Tel:
072 807 9127
Email:
snmoleleinc@gmail.co
For
the Respondent:
Leon
van der Watt
Contacts:
086 100 7669
Email:
leon@pvlaw.co.za
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