Case Law[2023] ZAGPPHC 1784South Africa
Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2023] ZAGPPHC 1784 (27 September 2023)
High Court of South Africa (Gauteng Division, Pretoria)
27 September 2023
Headnotes
by the Respondents in the First Respondent.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2023] ZAGPPHC 1784 (27 September 2023)
Labuschagne v Farm to Table Meats (Pty) Ltd and Others (041961/22) [2023] ZAGPPHC 1784 (27 September 2023)
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sino date 27 September 2023
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NUMBER: 041961/22
REPORTABLE: YES/NO
OF
INTEREST TO OTHER JUDGES: YES/NO
REVISED
DATE:
27/9/2023
In
the matter between:
LEONARDUS
JOHANNES LABUSCHAGNE
APPLICANT
And
FARM
TO TABLE MEATS (PTY) LTD
FIRST
RESPONDENT
JOHANNES
FREDERICK VAN DER WALT
SECOND
RESPONDENT
CAREL
JOHN VAN HEERDEN
THIRD
RESPONDENT
SEAN
LEON LABUSCHAGNE
FOURTH
RESPONDENT
STEFAN
GEORGE VAN HEERDEN
FIFTH
RESPONDENT
ANDREW
VRELE DU TOIT
SIXTH
RESPONDENT
JUDGMENT
BURGER
AJ
[1]
In the matter before me the Applicant applies for an order to evict
the First Respondent from
his property.
[2]
The Respondents, save for the Fourth Respondent, resist the
application.
MISS-JOINDER
[3]
Although not raised by the Respondents as a point
in limine
,
the question of miss-joinder of the Second to Sixth Respondents was
raised by the Third Respondent in the Answering Affidavit
and I
intend to deal first with this issue before I move on to the main
issues of the Application.
[4]
The Applicant meticulously dealt with every Respondent in the
Founding Affidavit and clearly stated
convincing reasons why the
Respondents were cited in this Application.
[5]
The Third Respondent, in his opposition, merely averred the
following:
“
AD PARAGRAPHS
2.2 TO 2.7 THEREOF
:
43.
43.1
The contents of these paragraphs are noted;
43.2
There are, however, no legitimist (
sic
) grounds for joining
the Second to Sixth Respondents in this matter. It seems that the
Applicant joined the mentioned Respondents
merely because they are,
or were at some stage, directors of the First Respondent. That is
inappropriate;
43.3
The Second to Sixth Respondents will, consequently, for this reason
alone, seek an order in terms of which
the application, in as far as
they are concerned, is dismissed and that the Applicant be ordered to
pay the mentioned Respondents
costs of this application, to be taxed
on a scale as between attorney and client;
43.4 As
I have stated earlier the Fourth Respondent, who only recently
received these (
sic
) application and opposed it, will file his
answering affidavit in due course.” (Caselines: 03-20 and 03-21
to the Answering
Affidavit)
[6]
The Second, Fourth, Fifth and Sixth Respondents did not depose off
Affidavits in support of the
Answering Affidavit.
[7]
The Third Respondent, disingenuously so, also did not take this Court
into his confidence to note
the correct state of affairs with regards
to the interest held by the Respondents in the First Respondent.
[8]
The position in relation to joinder was summarised in
Mashike and
Ross NNO and Another v Senwesbel Limited and Another
[2013] 3 All SA
20
(SCA)
at paragraph 20 as follows:
“
[20] Where a party
has a direct and substantial interest in any order a court may make,
or if such order cannot be sustained or
carried into effect without
prejudicing that party, the joinder of that party is necessary unless
the court is satisfied that that
party waived his or her right to be
joined or agreed to be bound by the order. The enquiry as to
non-joinder is a matter of substance
and not of form:
‘
The substantial
test is whether the party that is alleged to be a necessary party for
purposes of joinder has a legal interest in
the subject-matter of the
litigation, which may be affected prejudicially by the judgment of
the Court in the proceedings concerned
. . .”
[9]
I am satisfied that the Respondents have a legal interest in the
subject-matter of this Application
and the “defence”
raised by the Third Respondent in this respect, stands to be
rejected.
BACKGROUND
[10]
To enable me to come to a just and fair conclusion, I need to start
at the very onset of the relationship
between the Applicant and First
Respondent.
[11]
The Applicant is the owner of Rietfontein, a 206-hectare farm in the
district of Bronkhorstspruit, Gauteng
Province. It is a crop/feed
production and livestock farm, with a modern sheep abattoir facility
erected on a portion thereof.
The farm, together with its
improvements and as a going concern, was valued respectively at R
19 890 000-00 (by an estate
agent during September 2021)
and R 38 900 00-00 (by a registered professional valuer during
August 2021). (Caselines: Annexures
“F1” and “F2”
to the Founding Affidavit) The latter was a well-reasoned and
articulated report.
[12]
The Applicant acquired the above property during 1994 and erected and
operated a seemingly successful commercial
abattoir thereon.
[13]
In 2018, when the Applicant was already in his seventies, he decided
to down-scale and rent the business
and the land out to a person or
entity who could continue with the business.
[14]
The Applicant subsequently concluded lease agreements with entities
which belonged to the Fourth Respondent,
his biological son. Due to
financial constraints of the lessee, said lease agreements were
cancelled some time after conclusion.
I pause here to note that the
aforementioned agreements contained similar stipulations with regards
to improvements to the leased
property as contained in the initial
agreement between the Applicant and the First Respondent.
(Caselines:Annexures “E1”
and “E2”) I will
deal comprehensively with latter agreement shortly.
[15]
Enter the First and Third Respondents.
[16]
During late 2020, the Applicant was approached by the Second and
Third Respondents, representing the First
Respondent. They showed
interest to buy the property of the Applicant. It is clear from the
facts before me that the Applicant
proverbially lend an ear to the
approach by the Second and Third Respondents because of the intended
involvement of the Fourth
Respondent in the activities of the First
Respondent on the Property of the Applicant.
[17]
The Parties could
ab initio
not agree on a purchase price but
decided to enter into an initial agreement which would regulate the
relationship between the
Parties. The Parties before me disagreed on
which Party drew up and presented the initial agreement to the other.
I find this dispute
of fact to be immaterial in reaching the
conclusion I did. The
contra proferentem
rule might have had
some value if the Parties were
ad
idem
with who the
author of the initial agreement was, but only if it operated in
favour of the Applicant. It would not have had any
effect on position
of the Respondents.
[18]
Be that as it may, the initial agreement, signed by the Applicant and
the Second Respondent on behalf of
the First Respondent, contained
the following important clauses:
“
IN TERMS OF WHICH
the above parties [" the Parties”] have already approved
the following salient provisions:
1.
The Company shall acquire the Land from the Landowner for a purchase
consideration to be
agreed upon, which purchase consideration shall
be discharged by the Company on a deferred basis. Ownership of the
Land shall only
be transferred to the Company on condition that the
full purchase consideration is either paid in full or payment thereof
is secured
to the satisfaction of the Landowner.
2.
Pending the transfer of the Land to the Company,
the Company
shall be given occupation, risk, benefit and possession of that
portion of the Land associated with the existing sheep
abattoir
facility already established and operated on the Land
. The
right afforded to the Company shall include the right to have proper
access to the relevant portion of the Land.
Monthly
occupational rent in an amount to be agreed upon shall be payable to
the Landowner by the Company
.
3.
With effect from date of signature of this document, the
Company shall be entitled, at its cost and expense and without any
recourse
to the Landowner, to effect all improvements and/or
alterations to the existing sheep abattoir facility already
established and
operated on the Land, subject to the nature and
extent of such improvements and/or alterations being approved in
writing by the
Landowner prior to any such improvements and/or
alterations being undertaken. The approval of the Landowner shall not
be unreasonably
withheld, delayed or refused.
4.
In the event of the transaction(s) as envisaged by this
document not proceeding, the Company shall have no claim for
compensation
against the Landowner in respect of such improvements
and/or alterations, unless the reason for the transaction not
proceeding
can be attributed to actions or omissions on the part of
the Landowner, in which event the Landowner shall be liable to the
Company
for the reasonable and market related costs of the
improvements and/or alterations effected to the Land, or any part
thereof
.
5.
In order to give effect to the provisions of this document, the
Parties agree and undertake
to negotiate the conclusive terms and
enter into the following formal and definitive agreement as soon as
reasonably possible following
signature of this document:
5.1
An Agreement of Sale by and between the Landowner and the Company, in
terms of which the Company will
be acquiring the Land and occupying a
portion thereof.
6.
The aforementioned agreements shall be indivisible transactions and
shall embody the salient
provisions as expressed in this document as
well as such additional terms which are customary to transactions and
agreements of
the nature intended.” (Caselines: Annexure “D”
to the Founding Affidavit) (My emphasis)
[19]
The Parties engaged in ongoing negotiations regarding the purchase
price and in the meanwhile the First Respondent
occupied the abattoir
and paid rent to the Applicant. This was seemingly to give effect to
clause 2 of the initial agreement referred
to in paragraph 11
supra
.
Payment by the First Respondent were made punctually and continued
until July 2022. According to the Applicant, the First Respondent
even unilaterally increased the monthly rental with 6% during
December 2021. The Respondents did not gainsay the aforementioned
before me.
[20]
It is important to note that the initial agreement did not afford the
First Respondent a right of first refusal.
[21]
It is common cause that the First Respondent erected a cold storage
facility on the Property of the Applicant.
[22]
The First Respondent obtained a valuation of the property in the
amount of
R 12 818 157-00
and made an offer to the Applicant of R 13 million. The First
Respondent unfortunately did not attach
said valuation to the
Answering Affidavit. The offer was declined by the Applicant.
[23]
The Applicant was obviously convinced that the property was much more
valuable and obtained the valuations
referred to in paragraph 4
supra
which confirmed his convictions. I pause here to note that the Third
Respondent accused the Applicant of dishonesty by averring
the
following in the Answering Affidavit:
“
23.
The Applicant, acting
mala fide
and contrary to the terms of the agreement, public
policy and the principle of Ubuntu, insisted on a further valuation.
The Applicant
then acquired the valuation attached to the founding
papers as Annexure "F2". This valuation is for
R38,900,000.00 and,
significantly, relies on the improvements made by
the First Respondent to the property for its valuation. This
valuation is, however,
ridiculous. It seems that the Applicant was
never
bona fide
and it is a reasonable conclusion that the
Applicant, intentionally and fraudulently, duped the Respondents into
improving the
property under circumstances where the Applicant never
had the intention of selling the property to the Respondents.”
The above accusation is
factually incorrect and misguided as the valuation by the registered
valuator (Annexure “F2”)
was obtained by the Applicant
before the valuation by Remax. (
Vide
: Paragraph 11
supra
)
[24]
Towards the end of 2021, it must have become clear that the Parties
are in deadlock with regards to negotiations
pertaining to a purchase
price of the Property. Negotiations towards the conclusion of a
written lease agreement started in all
earnest as the Applicant
insisted that the oral lease agreement be formalised.
[25]
It is common cause that the Parties failed to agree on the terms of
said agreement despite “numerous”
proposals forwarded by
the Applicant to the First Respondent. The Applicant, as a result,
dispatched a letter (Caselines: Annexure
”G2” to the
Founding Affidavit) on 22 June 2022 giving notice to the First
Respondent that, if the Parties were unable
to enter into a
written lease agreement, the First Respondent must vacate the
Property by 31 July 2022.
[26]
The First Respondent failed to pay the agreed monthly rent to the
Applicant at the end of August 2022. The
First Respondent instead
elected to pay the rent into the Trust account of his attorneys of
record. Before me it was submitted
on behalf of the Respondents that
the rent is still being paid into the Trust Account of the
Respondent’s attorneys and payment
thereof was tendered.
[27]
As a result, on 1 September 2022, the attorneys of record on behalf
of the Applicant forwarded a letter to
the First Respondent calling
on the latter to rectify the breach of the verbal lease agreement by
9 September 2022.
[28]
On 9 September 2022 at 14:47 the Attorneys of the First Respondent
forwarded a letter to the Applicant stating
inter alia
that:
[28.1] the First
Respondent is not in breach of the verbal lease agreement; and
[28.2] the monthly
rent will be retained in the Trust account of the attorneys of the
First Respondent and the First Respondent
will retain occupation of
the property until the Applicant has reimbursed the First Respondent
for the improvements to the Property
alternatively provided
sufficient security for the improvements should the Applicant sell
the Property to a third party.
[29]
One would have expected that the First Respondent would, at that
point in time, reduce all its complaints
against the Applicant to
writing. The complaints about the untoward behaviour of the Applicant
towards the employees of the First
Respondent as well as the
Applicant’s purported breach of the oral/initial agreement are
notably absent from the response
of the First Respondent.
[30]
The Attorneys of the Applicant subsequently gave notice of the
cancellation the verbal lease agreement in
a letter forwarded to the
attorneys of the First Respondent on 20 September 2022.
[31]
Although some negotiations between the Parties took place after the
date of cancellation, I deem it not to
be material to reach a finding
herein.
[32]
Lastly, the First Respondent seemingly continues unfettered in its
operations on the Property of the Applicant.
LEGAL
POSITION
Motion
Proceedings in General
[33]
When called upon to decide in motion proceedings, the words of Heher
JA in
Wightman t/a JW Construction v Headfour (Pty) Ltd and
Another 2008 [3] SA 371 SCA
at 375 find application:
“
Recognizing that
the truth almost always lies beyond mere linguistic determination the
courts have said that an applicant who seeks
final relief on motion
must in the event of conflict accept the version set up by his
opponent unless the latter's allegations
are in the opinion of the
court not such as to raise a real, genuine or
bona fide
dispute of fact or are so far-fetched or clearly untenable that the
court is justified in rejecting them merely on the papers:
Plascon-Evans Paints Ltd v Van Riebeek Paints (Pty) Ltd
[1984]
ZASCA 51
;
1984 (3) SA 623
A
at 634 E – 635C.
A real, genuine and
bona
fide
dispute of fact can only exist where the court is satisfied
that the party who purports to raise the dispute has in his affidavit
seriously and unambiguously addressed the facts stated to be
disputed. There will of course be instances where a bare denial meets
the requirement because there is no other way open to the disputing
party and nothing more can therefore be expected of him. But
even
that may not be sufficient if the fact averred lies purely within the
knowledge of the averring party and no basis is laid
for disputing
the veracity or accuracy of the averment….
There is thus a
serious duty imposed upon the legal advisor who settles the answering
affidavit to ascertain and engage with facts
which his client
disputes and to reflect such disputes fully and accurately in the
answering affidavit.
If that does not happen it should come
as no surprise that the court takes a robust view of the matter.”
(My emphasis)
[34]
This principle was echoed by Harms DP in
National Director of
Public Prosecutions v Zuma
[2009] ZASCA 1
;
2009 (2) SA 277
(SCA)
at paragraph 26:
“
Motion
proceedings, unless concerned with interim relief, are all about the
resolution of legal issues based on common cause facts.
Unless
the circumstances are special, they cannot be used to resolve factual
issues because they are not designed to determine
probabilities.
It is well established under the Plascon-Evans rule that where in
motion proceedings disputes on fact arise
on the affidavits, a final
order can be granted only if the facts averred in the applicant’s
(Mr. Zuma’s) affidavits,
which have been admitted by the
respondent (the NDPP), together with the facts alleged by the latter
justifies such order.
It may be different if the respondent’s
version consists of bold or uncreditworthy denials, raises fictitious
disputes of
fact, is palpably implausible, far-fetched or so clearly
untenable that the court is justified in rejecting them merely on the
papers.”
Common
Law on Evictions
[35]
As far back as 1931 this Court in
Graham v Ridley
1931 TPD
476
confirmed the common law position that all an Applicant has to prove
to obtain an eviction order is that it is the lawful owner
of the
premises and that the Respondent is in occupation of the premises
against its will. This was reinforced in
Chetty v Naidoo
1974 (3)
SA 13
(A)
at 20A-E where the court held the following:
“
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. . .”
Pacta
Sunt Servanda
[36]
The principle of freedom of contract and the corollary principle that
agreements seriously entered into should
be enforced (
pacta sunt
servanda
) is trite in our law. Our Apex Court noted the
following in
Barkhuizen v Napier
[2007] ZACC 5
;
2007 (5) SA 323
(CC)
at
paragraph 57:
“
Public policy, as
informed by the Constitution, requires in general that parties should
comply with contractual obligations that
have been freely and
voluntarily undertaken. This consideration is expressed in the
maxim
pacta sunt servanda
, which, as the Supreme Court of
Appeal has repeatedly noted, gives effect to the central
constitutional values of freedom and dignity.
Self-autonomy, or
the ability to regulate one’s own affairs, even to one’s
own detriment, is the very essence of freedom
and a vital part of
dignity.”
An
Improvement Lien
[37]
To rely on a lien, the Respondent(s) must allege and prove:
[37.1] lawful
possession of the object (
Vide
:
Roux v Van Rensburg
[1996] ZASCA 54
;
[1996]
3 All SA 499
(A)
);
[37.2] that the
expenses were necessary for the salvation of the thing or useful for
its improvement;
[37.3] the actual
expenses and the extent of the enrichment of the Applicant/Plaintiff
(both must be given because the lien
covers only the lesser of the
two amounts) (
Vide
:
Rhoode v De Kock and another
[2013] 2
All SA 389
(SCA)
); and
[37.4] that there
was no contractual arrangement between the parties (or a third
person) in respect of the expenses (
Vide
:
Brooklyn House
Furnishers (Pty) Ltd v Knoetze & Sons
[1970] 3 All SA 332
(A)
).
[38]
In addition, when the leased premises is situated on farmland, the
following
dicta
by Brandt JA – traversing into history
and visiting the very origin of our current legal position on the
issue – in
Business Aviation Corporation v Rand Airport
Holdings [2006] SCA 72 (RSA)
find application:
“
[6]
An appropriate starting point for a discussion of the questions
raised by the appeal appears to be a
statement of the generally
accepted principle that in Roman Dutch Law, following Roman Law,
lessees were originally in the same
position as
bona fide
possessors
as far as claims for improvements to leased properties
were concerned. It follows that, absent any governing provisions in
the
contract of lease, lessees, like
bona fide possessors
, had
an enrichment claim for the recovery of expenses that were necessary
for the protection or preservation of the property (called
impensae
necessariae
) as well as for expenses incurred in effecting useful
improvements to the property (called
impensae utiles
).
[7]
Malpractices amongst lessees led, however, to legislation by the
Estates of Holland on two occasions,
which severely restricted their
right to compensation for improvements. The first enactment was
promulgated on 26 September 1658.
It is to be found in the Groot
Placaet-Boeck part 2 cols 2515-2520 under the rubric ‘Placaet
vande Staten van Hollandt, tegens
de Pachters ende Bruyckers vande
Landen’. The provisions of this placaet were re-enacted in
almost identical terms on 24
February 1696 in a ‘Renovatie-placaet’
(see GPB part 4 cols 465-7). Because the provisions of the two
placaeten were
so similar, reference is often made to ‘the
placaet’, singular, meaning the earlier one of 1658.
[8]
Four articles of the placaeten dealt with claims for improvements,
namely, articles 10 to 13.
Of these the most important for present
purposes was article 10, which is translated as follows by W E Cooper
Landlord and Tenant
Second Edition page 329 note 3:
‘
Provided,
nevertheless, that whenever the owner of any lands, takes them for
himself, or lets them to others, he is bound to pay
the old lessee,
or his heirs,
compensation for the structures, which the lessee
had erected with the consent of the owner
, as well as for
ploughing, tilling, sowing and seed corn, to be taxed by the court of
the locality, without, however, the lessees
being allowed to continue
occupying and using the lands, after the expiration of the term of
the lease, under the pretext of (a
claim for) material or
improvements, but
may only institute their action for
compensation after vacating (the lands)
.’ (My emphasis)
.
. .
[15] …
One of these malpractices, described in the preamble, was that the
lessees retained and continued
to occupy the leased property after
the expiration of the lease period, without entering into a new lease
and against the will
of the owners, ‘onder pretext’,
inter alia
, of ‘beterschappe’ (improvements) and
‘timmeragie’ (erection of structures). (See also
Spies
v Lombard
1950 (3) SA 469
(A)
at 478F-479H.) What the lessees
actually did in practice, so we are told by
Bodenstein Huur van
Huizen en Landen volgens het Hedendaagsch Romeinsch-Hollandsch Recht
on page 120, was to abuse their common law right of retention arising
from an enrichment lien by deliberately effecting costly
improvements
to the leased property, for which they knew the owners could not
afford to compensate them, so as to effectively deprive
the owners of
their property permanently. (See also
Lessing v Steyn
1953 (4) SA
193
(O)
at 199D-E.)”
[39]
The Placaaten thus stipulate that a lessee has the right to claim
compensation only after he had evacuated
the property and accordingly
had no lien or right of retention. It is trite that the Placaaten
have been received into South African
law and have been applied by
the courts.
DISCUSSION
[40]
I have considered the written and oral submissions of the Parties. In
addition, I have also had the benefit
of considering the relevant
judgments contained in the respective Heads of Argument by the
Parties. I am indebted to the Parties
for their efforts in this
regard.
[41]
First and foremost, I am in agreement with the submission by counsel
for the Applicant that the Answering
Affidavit, deposed to by the
Third Respondent, leaves much to be desired. One would expect much
more diligence and precision when
settling an important document in a
matter of this magnitude and that the matter before me requires and,
to be blunt, deserves.
Except for the linguistic impurities, the
Opposing Affidavit contains the following:
“
3.
Motion proceedings in the
current matter is completely appropriate.
4.
There are numerous
factual disputes that cannot be resolved on the papers before this
Honourable Court.” (Caselines: 03-3
to the Answering Affidavit)
This clearly amounts to a
contradictio in terminis
.
[42]
It is trite that an Applicant must make out his/her/its case in the
Founding Affidavit. The phrase “An
applicant must stand or fall
by his/her founding affidavit” is often referred to in
judgments of the various Courts. (
Vide
:
Director of
Hospital Services v Mistry
1979 (1) SA 626
(A)
at 635H-636C. See
also
Ramosebudi v Mercedes Benz Financial Services South Africa
(Pty) Ltd (51196/2017) [2019] ZAGPPHC (20 March 2019)
at
paragraph [11].) I am of the view that a Respondent in motion
proceedings should be treated on equal footing.
[43]
I find that the Parties ‘seriously entered’ into the
initial agreement. I base my findings on
the following:
[43.1] the First
Respondent was allowed to occupy the sheep abattoir facility on the
Property of the Applicant;
[43.2] a verbal
lease agreement
in re
occupational rent flowed from the
initial agreement; and
[43.3] serious
negotiations regarding a purchase price flowed from the initial
agreement.
It follows that the
Parties obviously considered themselves bound by the provisions of
the initial agreement.
[44]
It is common cause that the Respondents did not obtain written
consent from the Applicant prior to effecting
improvements on the
Property. Upon close scrutiny of the “improvements”
reflected in Annexure “AA1” to
the Answering Affidavit
(Caselines: 03-35 and 03-36), construction work commenced on 21
October 2020 and concluded on 22 January
2021. I find it difficult to
believe that construction of the cold storage facility and offices
commenced prior to the conclusion
of the initial agreement on 10
November 2020. The Third Respondent, a seasoned business man running
a multi-million Rands enterprise
like the abattoir, would have
committed financial suicide to spend millions of Rands on
improvements on somebody else’s property
without anything in
writing to protect himself and the First Respondent.
[45]
In addition to the aforementioned and also reflected in Annexure
“AA1”, I noted more that R 1
million’s worth of
items listed which can never be described as “improvements”.
In this regard I refer to
inter alia
a Grundfos Pump, 2 Strap
Machines, a Vacuum Machine, a Mincer, Offal Trolleys, 2 Scales
et
cetera
.
[46]
It must have been quite clear to the Respondents that the Parties
would not be able to agree on a purchase
price for the Property by
September 2021. Annexure “AA1” reflects 13 “improvements”
from September 2021
to December 2021 and 8 “improvements”
in 2022. The aforementioned is clearly what the Court had in mind in
paragraph
38
supra
when it referred to malpractices by
lessees.
[47]
It is common cause that the Applicant is the owner of the Property
concerned and the Respondents occupy same
against the will of the
Applicant. In addition, I find that the First Respondent breached a
material term of the lease agreement
by stopping to pay the monthly
rent to the Applicant and did not rectify the breach when called upon
to do so.
[48]
Before me counsel for the Respondents denied that the First
Respondent was in breach of the lease agreement
but averred that the
Applicant was rather in breach. Counsel based his contention on the
premises that the Applicant offered the
property for sale to a third
party. I find this difficult to comprehend. I already noted in
paragraph 20
supra
that the initial agreement between the
Parties did not contain a clause which provided the First Respondent
a right of first refusal.
To claim that the Applicant breached the
lease agreement, is ill-conceived and stands to be rejected.
[49]
Of importance is that the verbal agreement of lease between the
Parties has been cancelled by the Applicant
and cannot be revived by
this Court. Without an agreement in place, the First Respondent
cannot continue to be in possession of
the Property and is thus in
unlawful possession of the Property.
[50]
The Respondents based their defence on an improvement lien. A lien,
in general, does not entitle the possessor
to use the object, but
only to hold it as security until his claim is satisfied by the
debtor (
Rekdurum (Pty) Ltd v Weider Gym Athlone (Pty) Ltd
1997 (1)
SA 646
(C)
). The First Respondent is conducting business as usual
to this day. This, in itself, disqualifies the Respondents to rely on
a
lien.
[51]
It is common cause that the leased premises is situated on farmland.
It follows that the Placaaten referred
to in paragraph 38
supra
apply. Consequently, the Applicant has no lien or right of
retention in respect of the alleged development and/or improvements
to
the leased premises save for claiming for compensation after the
land has been vacated.
[52]
In summary: The Applicant is the lawful owner of the Property. The
Respondents have failed to discharge the
onus
of proving that
their possession of the Applicant’s property, and utilisation
thereof for own benefit, is lawful. The Respondents
raised fictitious
disputes of fact and their defences to the application for eviction
are clearly untenable which justifies this
Court in rejecting them
merely on the papers. I therefore find that there are no
bona fide
disputes of fact which would disentitle the Applicant to final
relief. The Applicant is thus entitled to the relief it seeks in
the
Notice of Motion herein.
[53]
In view of the above and the order I intend to make, I need not to
pronounce on the question whether the
cold storage facility
constitutes a permanent structure or not.
COSTS
[54]
The Respondent chose to resist the Application on grounds that are
bad in fact and in law. In addition, the
First Respondent still
operates its business on the Property of the Applicant without paying
rent and whilst not being in lawful
possession of the premises. The
Respondents literally captured the Property of the Applicant and then
displayed the audacity to
accuse the Applicant of being dishonest.
The Respondents furthermore abused the legal process to try and avoid
eviction. The mere
fact that the Respondents had to apply to this
Court to compel the Respondents to file their Heads of Argument, is
indicative to
the delaying tactics followed by the Respondents. The
course of action embarked upon by the Respondents should be condemned
in
the strongest terms.
[55]
The Constitutional Court, in the matter of
Public Protector v
South African Reserve Bank
[2019] ZACC 29
, dealt with the issue
of punitive cost orders. At paragraph 8 the following was stated:
“
[8]
Ours are courts of substantive justice. No litigant ought to be left
exposed to undeserved ruination
just because she did not expressly
plead non-compliance with legal requirements that are very loud in
their cry for the attention
of lady justice. 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. As correctly stated by the Labour
Appeal Court―
“
[t]he scale of
attorney and client is an extraordinary one which should be reserved
for cases where it can be found that a litigant
conducted itself in a
clear and indubitably vexatious and reprehensible [manner].
Such an award is exceptional and is intended
to be very punitive and
indicative of extreme
opprobrium
.” (
Vide
:
Plastic
Converters Association of South Africa on behalf of Members v
National Union of Metalworkers of SA
[2016] ZALAC 39
)”
[56]
In the circumstances I am of the view that this Court should show its
displeasure with the Respondents’
conduct by making a cost
award reflecting it.
[57]
As a result, I make the following order:
[57.1] That the
First, Second, Third, Fifth and Sixth Respondents (hereinafter
collectively referred to as "the Respondents”)
be ordered
to vacate the immovable property known as Portion 56 (a Portion of
Portion 4) of the Farm Rietfontein 395, Registration
Division JR,
Gauteng Province, held under Deed of Transfer T17358/1995, 206,5964
hectares in extent (hereinafter referred to as
"the Property"),
within a period of 30 days from the date upon which this order is
served upon the Defendants;
[57.2] That, in the
event that the Respondents fail or omit or refuse to vacate the
property, as provided for and envisaged
in paragraph 57.1
supra
,
the Sheriff of this Court and/or his/her Deputy be authorised and
mandated to execute this order and to evict the Respondents
from the
Property and to obtain the assistance of the South African Police
Services to assist him/her in this regard, if necessary;
[57.3] That the
Respondents be ordered to pay the costs of this application jointly
and severally, the one paying the others
to be absolved
pro tanto
,
on a scale as between attorney and client, the costs to include the
services of 2 (two) counsel.
BURGER
AJ
ACTING
JUDGE OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
FOR
THE APPLICANT:
ADV
FW BOTES SC
ASSISTED
BY:
ADV R
DE LEEUW
INSTRUCTED
BY:
VDT
ATTORNEYS
FOR
THE RESPONDENT:
ADV R
RAUBENHEIMER
INSTRUCTED
BY:
CJ
WILLEMSE & BABINSKY ATTORNEYS
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