Case Law[2023] ZAGPPHC 1199South Africa
Lismer Properties CC and Others v Bhorat and Others (45028/20) [2023] ZAGPPHC 1199 (20 September 2023)
High Court of South Africa (Gauteng Division, Pretoria)
20 September 2023
Headnotes
by the 1st Applicant own the property. Prior thereto the property, together with another property situated at 24 Lagoon Drive, Umhlanga, was owned by the 2nd Respondent as the sole member of the 1st Applicant. Following the 1st Respondent being placed under final sequestration in the above Honourable on 25 Mach 2018 and the appointment of the trustees on 24 October 2018, the trustees instituted an application on 10 June 2019 against the 2nd Respondent for a caveat to be registered against the two properties. The parties reached a settlement on the matter and concluded an agreement which was made an order of court on 7 May 2020. The terms of which were the following:
Judgment
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## Lismer Properties CC and Others v Bhorat and Others (45028/20) [2023] ZAGPPHC 1199 (20 September 2023)
Lismer Properties CC and Others v Bhorat and Others (45028/20) [2023] ZAGPPHC 1199 (20 September 2023)
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sino date 20 September 2023
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: 45028/20
REPORTABLE: YES/NO
OF
INTEREST TO OTHER JUDGES: YES/NO
REVISED
20/09/2023
In the matter
between:-
LISMER
PROPERTIES CC
FIRST APPLICANT
RENETTE LEATHERN
N.O.
SECOND
APPLICANT
JERIFANOS
MASHAMBA N.O.
THIRD APPLICANT
WILLIAM LEATHERN
N.O.
FOURTH
APPLICANT
And
AHMED DAWOOD
BHORAT
FIRST
RESPONDENT
SHEHNAZ LIBANDA
SECOND
RESPONDENT
YUSUF BHORAT
THIRD
RESPONDENT
RIAZ BHORAT
FOURTH
RESPONDENT
RAIESA BHORAT
FIFTH
RESPONDENT
ALL OTHER
UNLAWFUL OCCUPANTS
OF UNIT 5, SAN
REMO, PAMIN ROAD,
BEDFORVIEW
OCCUPYING THROUGH
THE FIRST TO
FIFTH RESPONDENT
SIXTH
RESPONDENT
EKURHULENI
METROPOLITAN MUNICIPALITY
SEVENTH
RESPONDENT
This
judgment was handed down electronically by circulation to the
parties’ representatives by email. The date of hand-down
is deemed to be 20 September 2023.
JUDGMENT
KHUMALO
NV J
Introduction
[1]
In this Application, the Applicants seek an order
in
terms of the Prevention of Illegal Eviction from and Unlawful
Occupation of Land Act, Act 19 of 1998 (“the PIE Act”),
for the eviction of the Respondents
and
all unknown persons occupying with and through the Respondents, a
property described as Unit 5 San Remo, 1[…]
Panim Road, Bedfordview (“the property”).
[2]
The property is
registered in
the name of Lismer properties, the 1
st
Applicant, a close corporation duly registered in terms of the
Company Laws of South Africa and whose sole member is the 2
nd
Applicant.
[3]
The 2
nd
Applicant, Ms Rianne Leatharn together with Mr J
Mashamba and Mr W Leatharn, who are the 3
rd
and 4
th
Applicant respectively, are joint trustees appointed in the insolvent
estate of Mr Ahmed Dawood Bhorat, the 1
st
Respondent.
[4]
The 1
st
Respondent is a broker, an importer and exporter
of goods. He resides in the property with the 2
nd
to 5
th
Respondents who are his family members. The 2
nd
Respondent, Shehnaz Limbada is the 1
st
Respondent’s wife to whom she is married by way of Muslim
customary marriage. Their children, Yusuf Bharat, a businessman
and Raisane Bharat a businesswoman are cited as the 3
rd
and 5
th
Respondent respectively. The 4
th
Respondent is a businessman also resident in the property. The
Ekurhuleni Metropolitan Municipality
is
joined as the 6
th
Respondent.
Common
cause facts
[5]
The trustees through the members’ interest held by the 1
st
Applicant own the property. Prior thereto the property, together with
another property situated at 24 Lagoon Drive, Umhlanga, was
owned by
the 2
nd
Respondent as the sole member of the 1
st
Applicant. Following the 1
st
Respondent being placed under
final sequestration in the above Honourable on 25 Mach 2018 and the
appointment of the trustees on
24 October 2018, the trustees
instituted an application on 10 June 2019 against the 2
nd
Respondent for a caveat to be registered against the two properties.
The parties reached a settlement on the matter and concluded
an
agreement which was made an order of court on 7 May 2020. The terms
of which were the following:
[5.1]
The 2
nd
Respondent and Lismer bound themselves jointly and
severally to pay the trustees an all-inclusive sum of R4 645 000.00.
[5.2]
The sum of R4 065 000.00 was due on 22 June 2020.
[5.3]
The remainder of R600 000.00 was due from the sale
of the proceeds of
the property in Mhlanga.
[5.4]
In the event
of any default, the defaulting party agrees
to pay the costs on an
attorney and own client scale, including collection commission.
[5.5]
In the event of any breach the parties agree that on
non or late
payment of any payments, the Applicant will immediately be entitled
in their sole or absolute discretion to claim full
payment of what is
due, plus 2 % percent monthly interest or alternatively;
[5.6]
to claim transfer of the full member’s interest
of the 2
nd
Respondent in the 1
st
Applicant into the name of the 2
nd
Applicant who is to hold same on behalf of all the trustees.
[6]
On 22 June 2020 when no payment was
forthcoming from the 2
nd
Respondent and the amount became
due, a letter was sent to the 2
nd
Respondent’s
attorneys placing her on terms for the R4 065 000.00. The attorneys
impressed upon her that no late payment
was going to be accepted and
that the breach clause will be operative from close of business on
that day. This was countenanced
by numerous phone calls from the 1
st
Respondent requesting a meeting without mentioning what was to be
discussed in the meeting. There was no payment and the 2
nd
Respondent also failed to sign the CK10 documents for the transfer of
the property to the 1
st
Applicant as agreed. The transfer
documents where therefore signed by Mr Sybrand on behalf of the 2
nd
Respondent as provided in the court order. The 2
nd
Respondent was then divested of the member’s interest in the
property, with the registration of the transfer thereof to the
name
of the 2
nd
Applicant into the 1
st
Applicant
registration having taken place on 29 June 2020. The Respondents
remained in the property.
The
Applicants’ version
[7]
According to the Applicant there is no lease
agreement or any other basis on which the Respondents
are occupying
the property. The parties discussed a short term tenancy against
monthly payments of rents pending the sale and transfer
of the
property to the Bhorat family or a new owner. However, no agreement
was ever concluded as there was no decision taken as
joint trustees
to enter into any lease agreement nor was consent given by the 1
st
Applicant. The insolvent also had no authority to enter into an
agreement with the trustees and no written agreement was signed
with
anyone. The trustees are duty bound to liquidate the assets of the
insolvent including the property held in Lismer. They need
to sell
the property on public auction without any occupants.
[8]
On 27 July 2020 the occupants were furnished
with a notice to vacate the property affording them 30
days within
which to do so. Also to furnish an undertaking within 7 days that
they will do so. The 1
st
Respondent on receipt of notice
to vacate sent an email alleging that he has agreed with 2
nd
Applicant to pay rental until the debt owed to the Trustees was
soughted. In a reply Mr Tintinger, the Applicant’s attorney
put
it on record to the Respondents that no lease agreement exists
between Lismer or the trustees and any of the Respondent. In
addition, that the trustees will not revisit the court order or
contract that has been dealt with. It was also made clear that
there
was no lease agreement concluded on the property. On the question
whether the trustees will consider an offer to purchase
from the 3
rd
Respondent, it was indicated that the trustees will only consider an
offer to purchase for an amount of R6,7 Million with a non-
refundable deposit of R500 000.00.
[9]
On 5 August 2020, the 3
rd
Respondent’s attorney sent a letter to the Applicants attorneys
alleging that there were talks about a rental payable for
the
property and a lease agreement concluded although admitting that
there was no signed lease agreement. An offer to purchase
on behalf
of the 3
rd
Respondent was made for R5 900 000.00 with a
R500 000.00 deposit. On 14 August 2020 the Applicants attorneys
confirmed again that
there was no lease agreement, indicating that
the discussion between the 2
nd
Applicant and the 1
st
Respondent did not amount into an agreement. He pointed out that no
lease agreement was signed as confirmed by 3
rd
Respondent’s attorney. The Respondents were warned about the
eviction and the offer to purchase that has been rejected.
[10]
On the question of 3
rd
Applicant talking to the 1
st
Respondent, the Applicants further point out that there was indeed
only talks about such an agreement pending the purchase of the
property by one of the 1
st
Respondent’s son. To that
end they gave instructions to their attorneys for the drafting of the
lease agreement to be considered
by the trustees for Lismer. The
lease was to be concluded with a specified person to be liable for
the payment of occupational
rent. Before the lease was finalized, the
trustees decided that given their history of litigation against the
1
st
and 2
nd
Respondent they had no desire to
contract with any of them and create any tenancy whatsoever. If
the Respondents wanted to
buy the property they could do so without
the trustees being bound to them. As a result, they never even
considered the proposed
written lease agreement that was prepared in
draft. Furthermore, there is no indication of the persons with whom
the purported lease agreement was concluded. The 1
st
Respondent told them that he does not earn an income and if he does
he is obliged to disclose to the trustees. Also there is no
term of
the lease agreed upon. The 1
st
Respondent alleges
that there was an agreement to pay the rent until the debt is sorted
out, when there was no debt to sort out
as the member’s
interest was taken over by the 1
st
Applicant instead of
payment of a debt, as per the settlement agreement.
Justness
and equitableness of the Eviction
[11]
The Applicants pointed out that they are prejudiced by the unlawful
occupation of the property by the Respondent
in that the net equity
to be realised for the benefit of the insolvent estate is diminished
every passing day. Further, it is clear
that from what was offered
for the property by 3
rd
Respondent as a purchase
consideration using a generally accepted rule of thumb for
occupational interest of 1% of the purchase
price, the estate is
prejudiced of an amount of R60 0000 per month due to the unlawful
holding over which cannot be made of any
good by any of the 1
st
Respondent who alleges the existence of an agreement.
[12]
The 1
st
Applicant, Lismer, is by far the single largest
asset from which Applicants can levy some realization for the benefit
of the creditors.
Since 2016, the Respondents have been occupying the
property without paying rental and the Absa bond over the property
which has
diminished the equity in the estate to the detriment and
prejudice of the creditors. There has not been any compensation for
the
Respondents’ occupation for a period of three years much to
the detriment of the creditors, one of whom is SARS, with a proved
claim of R40 million against the estate. Even if the Respondents rely
on a lease agreement, in terms of the notice to vacate any
right has
been terminated. The Respondent have also been asked in a letter
dated 20 August 2020, to pay for damages resultant from
their
unlawful holding over that is equivalent to a rental amount which
they have also refused to do.
[13]
The Respondents are also using municipality services without paying
for them as well as the bond which Lismer
will be held liable for to
the detriment of the creditors.
[14]
The Applicants point out that the purpose of the application is to
evict the Respondent so that the property
can be sold vacant for the
benefit of the creditors with proved claims of R49 000.000.00. The
trustees are duty bound to liquidate
the insolvent assets and
distribute the proceeds to the creditors. It is therefore imperative
that the Respondents vacate the premises.
As a
result of the Respondent’s holding over the property, it hasn’t
been able to be marketed in order to sell it for
the benefit of
creditors, making it just and equitable for the Respondents to be
evicted from property
as they have no right to remain in the
property.
[15]
The Applicants, as a result consider it just
and equitable the immediate eviction of the Respondents
from the
property
as prayed for in the relief sought in
the draft order.
[16]
They point out to have been advised that through the 2
nd
and 3
rd
Respondent the Respondents are able to afford
rental for alternative accommodation.
Respondent’s
version
[17]
The Respondents allege that the discussions on the lease alluded to
by the Applicants culminated into conclusion
of an oral lease
agreement. They dispute the allegations that before the agreement was
finalized the Applicants decided not to
have any tenancy with them of
any kind with the result that the lease was not finalized.
[18]
The 1
st
Respondent alleges that prior thereto on 8 July
2020, the 1
st
Applicant represented by the 2
nd
and 4
th
Applicant and the 2
nd
and 3
rd
Respondent acting on their own behalf and on behalf of the 1
st
,
4
th
and 5
th
Respondent entered into an oral
agreement of lease, the terms of which were the following:
[18.1]
The Respondents would be allowed to remain in the
property until registration of transfer in favour of
a third party
takes place. They will be paying an amount of R42 000 per month for
rental calculated at 1% of the forced sale value
of the property.
[18.2]
The 1
st
Applicant would prepare a written lease agreement so as to record
what has been agreed upon by the parties.
[19]
Further that on 8 July 2020 the 1
st
Respondent was sent a WhatsApp message by the 4
th
Applicant stating that “ We will send Lease agreement through
for entry between Lismer and Shehnaz and Yusuf jointly and
severally
liable at 42 0000pm-calculated at 1% of forced value” which he
claims to be consistent with the terms of the lease
agreement that a
written document would be sent for signature by the 2
nd
and 3
rd
Respondent so as to record the terms of the lease
agreement already agreed upon with the 1
st
Applicant for
their tenancy.
[20]
The lease agreement was concluded not long after the transfer of the
member’s interest to the 2
nd
Applicant who could
then transact regarding the property and did exactly that to bring
about certainty to their position. This
not only protected the
Respondent’s interest but also advanced the interest of the
insolvent estate.
[21]
As a result he alleges their occupation to have been
lawful being regulated by a lease agreement which entitles
them to
remain in the property until registration of transfer in favour of a
third party and therefore the Application to have
been premature.
[22]
The 1
st
Respondent also disputes that it was up for the
Applicants to terminate their tenancy as alleged to have been done by
way of written
notice on 27 July 2023 and indicate an intention to
hold the Applicants to the terms of the lease which they insist they
are entitled
to enjoy until transfer of the property is effected.
[23]
The 1
st
Respondent also indicated that prior
the transfer of the member’s interest they had no obligation to
enter into a lease agreement
as property was owned by the 2nd
Respondent. It only became necessary for them to regularize their
occupancy after the transfer
of the property when ownership changed.
Also alluding to the fact that the property is also occupied by
his daughter and
the 5
th
Respondent’s nine- year old
son.
[24]
The 1
st
Respondent denies that their
occupation is unlawful and therefore compelled to leave the property
but instead maintain that they
have a right to remain in occupation
until the property is sold and transfer to a third party has taken
place. He further maintains
that the Applicants have no right to
evict them until then.
[25]
He confirmed that the 1
st
Applicant (at the
time owned by 2
nd
Respondent) failed to honour the
settlement agreement that was made an order of court due to a family
friend reneging on a loan
agreed upon and the Umhlanga property to
have been auctioned in September 2020 for an amount of R6 000
000.00.
[26]
The Respondent although admitting to the letters and response of the
Respondent’s attorney dated 24
June 2020, he denies that he or
the 2
nd
Respondent gave the attorney any instruction in
that regard.
[27]
In respect of their occupation, the 1
st
Respondent argues that prior to the transfer there was no need to
regularize their stay as the 2
nd
Respondent was still a
holder of 100% member’s interest in the 1
st
Applicant and their occupation with her consent.
[28]
He refutes the allegation that 2
nd
Respondent
confirmed that there was no lease agreement on 6 July 2020 as the
agreement was entered into on 8 July 2020. Further
that the
Applicants’ decision not to furnish the Respondents with a
recording of what was agreed upon terminated the agreement.
He argued
that it did not detract from its validity or binding effect since the
purpose of an agreement was just for recording.
[29]
1
st
Respondent points out that he did not
enter into the agreement personally but benefitted from it as he
resides in the premises
as well.
[30]
He also confirms that he received a text message from
4
th
Applicant on 8 July 2020 wherein he confirms that they
will send the lease through for signing by the 2
nd
and 3
rd
Respondent in the terms orally agreed upon.
[31]
He admits receiving the letter RL 21 but disputes the
Applicants’ denial of a conclusion of a lease agreement,
that
it is genuine, arguing that the dispute of facts is material to the
determination of the application and was in the circumstances
foreseeable.
[32]
He also confirmed that he does not dispute that they will not be left
homeless but however points to the
provisions of the
Disaster
Management Act 57 of 2002
that provides that “a person may not
be evicted from their land and or home or place of residence unless a
competent court
has granted an order authorizing the eviction or
demolition.” Whilst there is no motivation from the Applicants
why the relief
herein must be granted.
[33]
He argues that their occupation is not intended to frustrate or block
the sale of the property and denies
that it is to the disadvantage of
the creditors since the property can still be marketed and
advertised. They have never frustrated
that and their lease is up to
the period of the property being sold.
[34]
On those allegations he alleges the Respondents have a
right to remain in the property until the property is transferred
to
a new owner.
Replying
Affidavit
[35]
In reply the Applicants accept that there were talks between the 4
th
Applicant and the 1
st
Respondent pertaining to the lease
agreement possibly to be concluded when one of the 1
st
Respondent’s son was looking into making an offer to purchase
the property, but no agreement in relation to the terms of
the lease
were ever confirmed either orally or in writing. They deny that the
WhatApp messages that have been attached indicate
any agreement to
have been concluded and point out that the message sent on that day
at 11:21:06 by 4
th
Applicant does not establish the
existence of such a contract. They allege the wording of the
conversation on 8 July 2020 to be
very clear when the 4
th
Applicant said “We will send Lease agreement through for entry
between Lismer and Shehnaz and Yusuf jointly and severally
liable at
R42 000 per month, calculated at 1% of forced sale value.” No
such agreement was sent to either of the two to be
entered into –
prior to the agreement being finalized they decided not to conclude
any agreement with any of the Respondents.
[36]
None of the Respondents have ever made any payment
towards rental for the many years that the 1
st
Respondent
had been declared insolvent. Neither did any of the Respondents pay
the alleged rental amount, utility bills or towards
the applicable
rates. The Applicants allege that they insisted on the payment of R42
0000 as holding over damages as pointed out
by the attorneys in the
letter to the Respondents dated 20 August 2023 and not as an
acknowledgement of tenancy.
[37]
The Applicants denied that there are any material
dispute of facts, neither an oral lease agreement in existence
nor do
the Respondent have any lawful entitlement to occupy the property.
Also that the WhatsApp message does not amount to a recording
of
the agreement.
[38]
It pointed out that the insolvent estate derives no
benefits but is only accumulating losses arising out of the
continued
occupation of the property by the Respondents.
[39]
Except for pointing out that a child stays in the
property, nothing is said if the child’s has any particular
circumstances that would result in any prejudice suffered by the
child due to eviction or leaving the property.
Issues
arising
[40]
The ownership of the property not being in dispute, the issues to be
determined are:
(i)
whether the Respondents are in unlawful occupation and as a result
can be subjected to an
eviction, (the converse being whether the
Respondents have made a case for them to remain in the property), if
so
(ii)
if there is justification for immediate eviction (a case has been
made by the Applicants for
immediate eviction)
Legal
framework
[41]
The starting point being ownership, and occupation of the property,
p
rovided
the procedural requirements have been met,
that
not being in dispute, the
principle
as set out
in
Chetty
v Naidoo
[1]
,
is applicable, that “once the plaintiff succeeds in proving
ownership and that the defendant is in occupation, the
onus shifts to
the defendant to show that his occupation is lawful. The Court
in
Chetty
[2]
stated
the following that is of significance:
“
The
incidence of the burden of proof is a matter of substantive law
(
Tregea
and Another
v.
Godart
and Another
,
1939
A.D. 16
at
p. 32), and in the present type of case it must be governed,
primarily, by the legal concept of ownership. It may be difficult
to
define
dominium
comprehensively
(cf.
Johannesburg
Municipal Council
v.
Rand
Townships Registrar and Others
,
1910
T.S. 1314
at
p. 1319), but there can be little doubt (despite some reservations
expressed in
Munsamy
v.
Gengemma
,
1954
(4) S.A. 468
(N)
at pp. 470H-471E) that one of its incidents is the right of exclusive
possession of the
res
,
with the necessary corollary that the owner may claim his property
wherever found, from whomsoever holding it. It is inherent
in the
nature of ownership that possession of the
res
should
normally be with the owner, and it follows that no other person may
withhold it from the owner unless he is vested with some
right
enforceable against the owner (e.g., a right of retention or a
contractual right). The owner, in instituting a
rei
vindicatio
,
need, therefore, do no more than allege and prove that he is the
owner and that the defendant is holding the
res
—the
onus
being
on the defendant to allege and establish any right to continue to
hold against the owner (cf.
Jeena
v.
Minister
of Lands
,
1955
(2) S.A. 380
(A.D.)
at pp. 382E, 383). It appears to be immaterial whether, in stating
his claim, the owner dubs the defendant’s holding
“unlawful”
or “against his will” or leaves it unqualified
(
Krugersdorp
Town Council
v.
Fortuin
,
1965
(2) S.A. 335
(T)).”
[42]
The
evidential onus
is
therefore of
material
consideration.
T
he
owner is entitled to approach the court on the basis of ownership and
the Respondent’s unlawful occupation. As per Chetty
supra
,
the occupier carries the evidential onus to prove an entitlement (a
right enforceable against the owner) to occupy the property.
[43]
The question which therefore arises in casu is whether through the
1
st
Respondent’s version, the Respondents had proven a lawful basis
to remain in the property.
[44]
The Respondents allege to have such a lawful basis as a result of the
existence of an oral agreement of lease
concluded in terms of
WhatsApp text messages between the 1
st
Respondent and the
4
th
Applicant. The lease agreement according to the
messages was intended to be concluded between 1
st
Applicant and 2
nd
and 3
rd
Respondent to be
terminable on registration of transfer of the property to a third
party or new owner. The 1
st
Respondent and the Applicant
had also agreed that after the lease agreement has been reduced to
writing, the terms recorded, the
intended parties were going to
proceed and sign it. According to the 1
st
Respondent that
conversation resulted in an oral agreement of lease that is binding
between the parties. The 1
st
Respondent also raised
a question of dispute of facts arguing that the matter should have
been on action instead of Application
so that the true facts can be
determined at trial, an instance that should have been foreseen by
the Applicants. As a result the
Application should be dismissed.
[45]
The Applicants on the other hand confirm the WhatsApp conversation
regarding the lease to have taken place
between the 1
st
Respondent and the 4
th
Applicant but dispute that it
resulted in any agreement being concluded as there was no recordal
(written lease agreement) that
took place nor was there any such
agreement signed by the intended parties due to the fact that the
trustees decided against it.
[46]
The question whether the said exchange
resulted in an oral lease agreement is a question of law, as
there is
no dispute on the context and content of the exchange, but for the
legal interpretation of the said exchange, whether
or not it resulted
in an oral agreement being concluded. The argument therefore
that there is a material dispute of facts
and therefore the matter
should be send on trial for determination thereof is of no
consequence. The court in determining
the issues took counsel
from
Tamarillo
(Pty ) Ltd v B N Aitken (Pty) Ltd
[3]
that “if on the facts stated by the Respondent together
with the admitted facts in the Affidavits the Applicant is
entitled
to the relief, the court will make an order, giving effect to such
findings. In granting claims established by admitted
or undisputed
facts, the court does not exercise a discretion”.
[47]
It is first important to take cognisance of the fact that the
exchange was between the 1
st
Respondent, who has
acknowledged in his affidavit and indicated to the Applicants as
trustees that as an insolvent who has no income,
he could not
conclude or enter into any lease agreement, and the 4
th
Applicant. In that case he agreed with 4
th
Applicant that
the terms of lease agreement will be recorded for entry (which simply
means for conclusion or to be entered into)
between the 1
st
Applicant and the 2
nd
and 3
rd
Respondent. The
intended parties were therefore for conclusion of the agreement, to
sign the recorded terms of lease, which never
occurred.
[48]
Legally the 1
st
Respondent cannot conclude a contract on
behalf of the 2
nd
and 3
rd
Respondents unless he
was furnished with a power of attorney authorising him to do so. It
was therefore reasonable and expected
that the 2
nd
and 3
rd
Respondent, having been identified to be the intended parties
to conclude the agreement would have been required, as agreed,
to
sign the recorded terms or the written agreement in order to be bound
by the terms discussed by the 1
st
Respondent and 4
th
Applicant. The 1
st
Respondent also did not present himself
to have been an agent of the 2
nd
and 3
rd
Respondent. The 1
st
Applicant as represented by the
trustees and 2
nd
and 3
rd
Respondent who were
not part of the WhatsApp conversation could only enter into such an
agreement by signing the recorded terms
in agreement. .
[49]
Consequently, in the absence of the written agreement signed by the
2
nd
and 3
rd
Respondent, about whom
nothing more has been mentioned except that they were going to sign
the recorded agreement in conclusion
thereof, no lease agreement was
concluded on their behalf, orally or otherwise. Even the email sent
by the 1
st
Respondent in response to an eviction notice
served on the Respondents on 27 July 2020, he did not allege an
existence of an agreement
orally concluded by the 2
nd
and
3
rd
Respondent or their acceptance of the terms. The
1
st
Respondent instead alleged to have an agreement with
the 4
th
Applicant (not 1
st
Applicant) to pay
rent until the debt was sorted and sought to enforce such agreement.
The allegation contradicts both his assertion
that a lease agreement
was concluded between 1
st
Applicant and 2
nd
and
3
rd
Respondent and that according to that agreement the
Respondents were to stay in the property until it was sold and
registered in
the new owner’s name.
[50]
Conversely, a trustee cannot bind his co-trustees unless if they have
given him authority in writing to do
so. In casu, absence such
authority or sanction from the other trustee on whose behalf the
members interest is being held
in the 1
st
Applicant, the
4
th
Applicant or both the 2
nd
and 4
th
Applicant could not be found to have validly concluded the lease
agreement that was discussed and to have bound the 1
st
Applicant thereto without the 3
rd
Applicant’s
authority. It is their evidence that their collective decision
ultimately was not to enter into any agreement
with any of the
Respondents and therefore no lease agreement was prepared or
concluded.
[51]
The Respondents accept that the notice to vacate was served on them
on the 27 of July 2020, terminating their
occupancy. Also that the
offer to purchase by the 3
rd
Respondent did not culminate
into a sale. The Respondent have therefore failed to justify their
continued occupation of the property.
[52]
To secure an eviction in
terms of PIE, the relevant sub-sections in s 4 of the Act, read:
‘
(7)
If an unlawful occupier has occupied the land in question for more
than six months at the time when the proceedings are initiated,
a
court may grant an order for eviction if it is of the opinion that it
is just and equitable to do so, after considering all the
relevant
circumstances, including, except where the land is sold in a sale of
execution pursuant to a mortgage, whether land has
been made
available or can reasonably be made available by a municipality or
other organ of state or another land owner for the
relocation of the
unlawful occupier, and including the rights and needs of the elderly,
children, disabled persons and households
headed by women
.
(8)
If the court is satisfied that all the requirements of this section
have been complied with and that no valid defence has been
raised by
the unlawful occupier, it must grant an order for the eviction of the
unlawful occupier, and determine—
(a)
a just and equitable date on which the unlawful occupier must vacate
the land under the circumstances; and
(b)
the date on which an eviction order may be carried out if the
unlawful occupier has not vacated the land on the date contemplated
in paragraph (a).
(9)
In determining a just and equitable date contemplated in subsection
(8), the court must have regard to all relevant factors,
including
the period the unlawful occupier and his or her family have resided
on the land in question.’
[53]
In
Ndlovu
v Ngcobo; Bekker and Another v Jika
[4]
the court set out the procedural threshold to be satisfied by an
applicant for eviction. This is evident from what
appears
below:
[18]
The court, in determining whether or not to grant an order or in
determining the date on which the property has to be vacated
(section
4(8)), has to exercise a discretion based upon what is just and
equitable. The discretion is one in the wide and not the
narrow sense
(cf
Media Workers Association of South Africa and others v
Press Corporation of South Africa Ltd
(“
Perskor
”)
1992 (4) SA 791 (A) at 800,
Knox D
’
Arcy
Ltd and others v Jamieson and others
1996 (4) SA 348
(A) at 360G–362G). A court of first instance, consequently,
does not have a free hand to do
whatever it wishes to do and a court
of appeal is not hamstrung by the traditional grounds of whether the
court exercised its discretion
capriciously or upon a wrong
principle, or that it did not bring its unbiased judgment to bear on
the question, or that it acted
without substantial reasons (
Ex
parte Neethling and others
1951 (4) SA 331
(A) at 335E,
Administrators, Estate Richards v Nichol and
another
1999 (1) SA 551 (SCA) at 561C–F).
[54]
The next enquiry in terms of PIE is for the Court
to determine a just and equitable date on which the respondent
must
vacate the property. The Applicants pointed out that the Respondents
have been in unlawful occupation from 29 June 2020 after
the members’
interest in 1
st
Applicant was transferred to the 2
nd
Applicant to be held on behalf of the trustees. Further that the
Respondents have confirmed that no rental has ever been paid.
They
have not disputed their failure to pay the rates and taxes and for
municipality services, long before the takeover of the
member’s
interest. They have also not disputed that the bond at Absa has also
not been paid for a long time. The Applicant
has argued that the
Respondents’ continued occupation prejudices the claims of the
creditors, as the debts and costs being
accumulated diminishes the
nett equity of the property and or estate. The property can
also not be properly marketed.
On the other hand the
Respondents have not raised any defence against immediate eviction
sought by the Applicants .
[55]
Having considered the circumstances surrounding the Respondents’
occupation of the property, especially
that the property forms part
of an insolvent estate that needs to be realised expediently on
behalf of the creditors, a fact that
the Respondent has admitted
being aware of. The duration of the Respondents occupation of
the property without paying neither
rental for their holding up nor
the bond on the property that is owing to Absa bank. Moreover, that
the Respondents were also not
paying the rates and taxes and the
utility bills notwithstanding having acknowledged not to be
destitute. They have confirmed that
they can afford alternative
accommodation, which was evidenced, inter alia, by the 3
rd
and 4
th
Respondent’s offer to purchase the property.
The Respondents have not made out a case to be falling within a
specific
category of persons in terms of section 7 of the Act
deserving of a higher level of consideration when considering a date
for when
an eviction should take place. It would be imposing the
highest degree of injustice to further keep the Respondents in the
property
for any longer period, seeing that they are not destitute.
It is accordingly just and equitable that the Respondents be
evicted
from the property as a matter of urgency although not without
notice. I am of the view that in this matter, the following
order accords with the requirements of being just and equitable.
[56]
I therefore make the following Order:
1.
The 1
st
to 5
th
Respondents and all other persons occupying through the 1
st
to 5
th
Respondent, the premises situated at Unit 5 San
Remo, 1[…] Pamin Road, Bedfordview, are evicted and to vacate
the said property
not later than 13 October 2023;
2.
The Sheriff of the High Court in the district in which the property
is situated or his or
her lawful deputy is authorised to take such
steps as are necessary to evict the 1
st
to 5
th
Respondent from the premises in the event that the 1
st
to
5
th
Respondent do not vacate the property in the time
prescribed in Prayer 1 above;
3.
The Sheriff of the district in which the property is situated or his
or her lawful deputy
is authorised to proceed with the eviction of
the 1
st
to the 6
th
Respondents, in so far as
such authorisation is needed to give effect to an eviction in terms
of
Regulation 70
of the
Disaster Management Act; Regulations
;
4.
The 1
st
to 5
th
Respondent are ordered to pay
the costs of this Application jointly and severally, the one paying
the other to be absolved, as
between attorney and client.
N
V KHUMALO
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
For
the Applicant:
Adv J
Malherbe
Instructed
by:
Tintingers
Inc
Ref:
S A Tintinger /LEA12/0022/CW
Email:
cswanepoel@tintingers.co.za
For
the Respondent:
Adv
Y Alli
Instructed
by:
Fasken
Attorney
Pretoria
Ref:
322022.00001
Email:
hlaher@fasken.com
[1]
1974
(3) SA 13
(A
)
[2]
at
20A-E
[3]
1982
(1) SA 398 (A)
[4]
2003
(1) SA 113
(SCA)
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