Case Law[2025] ZAWCHC 264South Africa
Communicare NPC v Matunzi and Others (Appeal) (A285/2024) [2025] ZAWCHC 264 (23 June 2025)
High Court of South Africa (Western Cape Division)
23 June 2025
Judgment
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## Communicare NPC v Matunzi and Others (Appeal) (A285/2024) [2025] ZAWCHC 264 (23 June 2025)
Communicare NPC v Matunzi and Others (Appeal) (A285/2024) [2025] ZAWCHC 264 (23 June 2025)
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION)
Case
no.: A285/2024
In the matter between:
COMMUNICARE
NPC
(Registration
No 1929/01590/08)
Appellant
And
HELEN
ZANDILE MATUNZI
(Identity
number: 8[...])
First
Respondent
RICO
MOTOBISHI
(Passport
No: P[...])
Second
Respondent
SHAUN
BENTHAM
(Identity
number: 7[...])
Third
Respondent
SAMANTHA
VALENCIA NAGEL
(Identity
number: 8[...])
Fourth
Respondent
PUMZA
GUZA
(Identity
number: 7[...])
Fifth
Respondent
SMITH
CHINAGOROM HERBET
(Date
of birth: 1986/06/13)
Sixth
Respondent
ZIMKITHA
IWUEZI
(Identity
number: 6[...])
Seventh
Respondent
LUCK
VINGOOD IWUEZI
(Identity/Registration
No. P[...])
Eighth
Respondent
YOLANDA
BRIDGETTE WILLIAMS
(Identity
number: 7[...])
Ninth
Respondent
LLEWELLYN
JOSEPH PRINS
(Identity
number: 8[...])
Tenth
Respondent
ALZONA
USHAAN JANSEN
(Identity
number: 8[...])
Eleventh
Respondent
CITY
OF CAPE TOWN
Twelfth
Respondent
ALL
OTHER OCCUPANTS OF THE PROPERTY
HOLDING
TITLE UNDER FIRST TO ELEVENTH
RESPONDENTS
Thirteenth
Respondent
Coram:
Francis J et Pangarker J
Hearing date:
25 April 2025
Judgment delivered
electronically: 23 June 2025
JUDGMENT
PANGARKER J (FRANCIS J
concurring)
Introduction
[1]
This appeal emanates from a judgment and
order granted by the Acting Magistrate of the Cape Town Magistrates’
Court upholding
two points
in limine
with costs in an eviction application brought by the appellant in
terms of section 4 of the Prevention Illegal Eviction
and Unlawful
Occupation of Land Act 19 of 1998 (PIE Act).
The eviction
application
[2]
In February 2019, the appellant instituted
eviction applications out of the Cape Town Magistrates’ Court
against various respondents
in six matters under case numbers
1303/2019, 1960/2023, 8277/2022, 1869/2022, 4033/2023 and 4865/2023,
respectively. By agreement
between the parties, the applications were
consolidated and heard under case number 1303/2019, being the matter
of Helen Matunzi,
which is the only appeal before us.
[3]
The appellant approached the Court
a
quo
on the basis that it is the
registered owner of the immovable property situated at Erf 1[...],
known as 1 A[...] Huise, J[...]
Street, Brooklyn (the property),
having concluded a residential lease agreement with Ms Matunzi, the
first respondent, which would
commence on 15 February 2015. In terms
of the agreement, rental was payable at R1655 per month and a deposit
due of R3310. The
appellant alleged that subsequent to the first
respondent taking occupation of the property, she breached the
agreement in that
she failed to comply timeously with its payment
terms, resulting in arrears.
[4]
The appellant’s legal representatives
made contact with the first respondent between October 2018 to
January 2019, but despite
promises to settle the arrears, the latter
failed to remedy the breach. On 30 October 2018, the appellant’s
legal representatives
dispatched a notice of cancellation which
informed the first respondent that failing settlement of the arrears,
the lease would
be cancelled on expiry of the notice period and, in
such event, the first respondent and those occupying the property
with her
were afforded one calendar months’ notice to vacate
the premises.
The points
in
limine
[5]
The first respondent opposed the
eviction application and raised various points
in
limine
, two of which were dismissed and
one of which was withdrawn by the respondent. The remaining two
points
in limine,
which
fall to be determined on appeal were, firstly, that the appellant
failed to follow due process in accordance with the Regulations
of
the Social Housing Act, and secondly, that there was insufficient
engagement with the Social Housing Regulatory Authority.
Notice of appeal
[6]
The appellant appeals the order upholding
of the two points
in limine
and
substantiated its grounds of appeal in its Notice of Appeal as
follows:
“
1.
In considering the remaining two points and in upholding them, the
Learned Acting Magistrate
firstly failed to distinguish between
social housing stock and non-social housing stock.
2.
The Learned Acting Magistrate further failed to consider the ambit of
the Social
Housing Regulatory Authority’s legislative mandate
and further failed to properly consider the purpose of the Social
Housing
Act.
3.
The Learned Acting Magistrate further erred by failing to appreciate
and understand
that a project which has not received the benefit of
public funding, and which was not an approved project for the
purposes of
the Social Housing Act, would not be subject to the
Social Housing Act and its regulations, nor would it be subject to
oversight
by the Social Housing Regulatory Authority.
4.
By failing to properly consider and understand the nature of the
enquiry before
him, the Learned Acting Magistrate further acted
beyond the scope of his authority, by extending the mandate of the
Social Housing
Regulatory Authority beyond what it was legislatively
required and empowered to do.
5.
The Learned Acting Magistrate erred in finding that Social Housing
Regulatory
Authority had, or ought to have jurisdiction over
properties which did not fall within their jurisdiction, and over
properties
which fell outside of the scope of the Social Housing Act.
6.
By granting costs against the Appellant.”
[1]
[7]
Before turning to a consideration of the
appeal, a matter of clarity is required. In the concluding paragraph
of the judgment, the
Acting Magistrate granted an order dismissing
the application with costs. It is evident from the Notice of Appeal
that the appellant
is of the view that this constitutes a dismissal
of the entire eviction application in case number 1303/2019.
[8]
I disagree with the appellant’s
understanding of paragraph 51. On a closer reading of the judgment,
it seems to relate to
case number 3079/2022, and not to 1303/2019 and
the points
in limine
which
were argued and form the subject of the judgment and this appeal.
Thus, this judgment proceeds on the assumption that only
the points
in limine
and
not the substantive merits of the application, were determined.
Proceedings in the
Magistrates’ Court
[9]
The parties’ legal
representatives agreed with the Acting Magistrate that the points
in
limine
would be determined first. The
appellant’s averment in the application was that the property
did not form part of its social
housing scheme and was thus not
social housing stock but its private property.
[10]
In
very lengthy and protracted proceedings before him, which included
several postponements, the Acting Magistrate required an explanation
as to why the Drommedaris Pilot Project, 8 S[...] Road, Brooklyn
[2]
and the Bothasig Gardens property
[3]
were the only two properties designated as the appellants’
social housing stock.
[11]
Unfortunately, as seen later in this
judgment, this question led to a lengthy enquiry involving the
calling of managers of the SHRA,
at the behest and instruction of the
Acting Magistrate. In this regard, the latter ordered the Compliance
and Regulations Managers
of the SHRA to attend Court and present oral
testimony, which they duly did.
[12]
Rheena Hansrajh, the SHRA’s
Compliance Manager explained in detail the process whereby a property
identified by the appellant,
Communicare, would fall under the SHRA’s
oversight. The Acting Magistrate, however, required in an order which
he had granted,
a list of accredited institutions and properties
which fell under the auspices of the SHRA.
[13]
Ms Hansrajh testified that the appellant
has three social housing projects: Bothasig Phases 2 and 3, and
Drommedaris. In questions
by the first respondent’s legal
representative, she testified that properties which historically
received institutional subsidies
were classified as social housing
stock in terms of the Act. The record reflects that the Acting
Magistrate then required insight
into the SHRA’s internal
processes, its AGM report and its quarterly report. The first
respondent’s legal representative
also put to Ms Hansrajh that
there were approximately three thousand properties which are regarded
as social housing stock, funded
from institutional subsidies.
[14]
From the evidence placed before the Acting Magistrate,
it appears that in 1929 the Housing Utility League Company was
established
as a non-profit company, which subsequently changed its
name to the Citizens Housing League in 1964. In 1990, the latter
became
known as Communicare, the appellant.
Ms
Hansrajh confirmed that properties belonging to the appellant which
were not classified as social housing, did not fall under
the social
housing Regulations, thus the appellant did not report to the SHRA
regarding such properties, but only on the three
aforementioned
social housing stock. She also confirmed, to the extent that she
could, that the appellant had private and social
housing stock and
that the SHRA was unable to obtain details on the source of the
funding of certain stock. Her explanation, when
pressed by the Acting
Magistrate, was that if proved that stock was institutionally
subsidised, then it fell under social housing
stock and was to be
regulated by SHRA.
[15]
In what may only be described as a debate
between the legal representative for the first respondent and the
Acting Magistrate during
Ms Hansrajh’s testimomy, it became
apparent that Ms Matunzi deduced that because certain properties in
Brooklyn were accredited
as social housing and because of the “
say
so”
of the first to eleventh and
thirteenth respondents, therefore the property in question in case
number 1303/2019 must therefore
be social housing stock.
[16]
Ms Hansrajh testified further that the SHRA
had no evidence that the property was funded through public funds,
and stood firm that
it was not part of the appellant’s initial
application for accreditation to SHRA. The appellant had indicated in
its application
for accreditation that such property was
unsubsidised.
[17]
Ms Hansrajh painstakingly explained to the
Court that her task involved looking at the appellant’s
accreditation application,
the projects listed on such application,
which housing were considered as being institutionally subsidised and
comparing such information
against the list of properties mentioned
in the six applications. She also explained that it was not uncommon
for institutions
such as the appellant to own private housing stock
as well as government funded stock. The witness confirmed that the
properties
mentioned on the list were not government-funded, however,
she testified that she was unable to say whether A[...] Huise was
subsidised
by public funds, but according to the appellant’s
records, the property was unsubsidised.
[18]
Significantly, Ms Hansrajh testified that
private stock meant that there was no government funding and that
often private stock
was available to an institution to supplement its
income. An institution, such as the appellant, would invest in
private rental
properties.
[19]
The second witness required by the Court
a
quo
was Sithengwa Dladla. Mr Dladla’s
portfolio as Regulations Manager of SHRA involved mainly the
enforcement of the Act. He
provided a forensic report into the
investigation of Communicare, authored by an independent auditor, and
was required to read
the report into the record. Part of the report
dealt with the history of social housing, the Act, and the
establishment of the
appellant.
[20]
The report recommended that the SHRA was,
inter alia
,
to perform a verification to determine which of the appellant’s
properties were social housing stock and which were private
housing
stock. Mr Dladla also confirmed that after the previous hearing, the
SHRA was able to compare the properties listed in
the eviction
application with the list of properties registered on the appellant’s
name and found the property referred to
in Ms Matunzi’s
application, to be private stock. There was no institutional subsidy
received for the property.
[21]
On being pressed by the Acting Magistrate,
Mr Dladla testified that the SHRA could not confirm or determine
whether the appellant
received loans linked to mortgage bonds for the
property in question. The rest of his evidence dealt with the Act,
ownership of
the property and institutional funding. The forensic
report was admitted into evidence by the Acting Magistrate.
The judgment and order
[22]
The
Acting Magistrate relied on
Occupiers,
Berea v De Wet NO and Others
[4]
to motivate that a Court hearing on eviction application in terms of
the PIE Act, must play an active role in the adjudication
of such
mater and should engage in active judicial management, hence his
calling of the SHRA witnesses.
[23]
In his judgment, the Acting Magistrate
questioned whether the properties in the six applications should be
regarded as social housing
stock. He found that it was common cause
from the Title Deeds registered over the properties that it had
benefitted from public
funding, which constitutes an institutional
subsidy, and hence the properties in the six applications were
regarded as social housing
stock. He held further that the property
“
under discussion”
should
have been registered as social housing and been regulated by the
SHRA. Furthermore, in the judgment he stated that it appeared
that
there was no indication that the SHRA fulfilled the necessary
controls and administration.
[24]
The Acting Magistrate was also of the view
that the SHRA should have been more involved in decisions to evict
occupants from social
housing stock where they failed to pay rental.
Accordingly, the two remaining points
in
limine
were upheld and the appellant
was ordered to pay the costs. Further findings were made in respect
of another property forming the
subject of case name 3079/2022, which
did not form part of the applications before the Court
a
quo
.
The Social Housing Act
and Regulations
[25]
In
order to address the grounds of appeal it is necessary to first
consider the relevant legislation applicable to social housing.
The
Preamble to the Act sets out the aims and purpose of the Act as
requiring of all spheres of government to prioritise the needs
of the
poor in respect of housing development, the promotion and
establishment of socially and economically viable communities
and
safe living conditions
[5]
. The
Preamble also recognises the need for the regulation of social
housing and the dire need for affordable rental housing for
low to
medium income households.
[26]
The term “
social
housing”
is defined in section 1
of the Act as:
“
Definitions
1.
In this Act, unless the context indicates otherwise –
“
social
housing”
means a rental or co-operative housing
option for low to medium income households at a level of scale and
built form which requires
institutional management, and which is
provided by social housing institutions or other delivery agents in
approved projects in
designated restructuring zones with the benefit
of public funding as contemplated in this Act;
[27]
Aside from the above, I must emphasise that
it is common cause in the appeal that the appellant is a social
housing institution,
which is defined as follows:
“
social
housing institution”
means an
institution accredited or provisionally accredited under this Act
which carries or intends to carry on the business of
providing rental
or co-operative housing options for low to medium income households
(excluding immediate individual ownership
and a contract as defined
under the Alienation of Land Act, 1981 (Act No 68 of 1981), on an
affordable basis, ensuring quality
and maximum benefits for
residents, and managing its housing stock over the long term;
[6]
[28]
Section 7 establishes the
SHRA
which
is accountable to the National Minister of Housing. Furthermore,
sections 11 and 12 convey the functions and intervention
powers of
the SHRA. From a reading of the Act and its Preamble, it is apparent
that, firstly, the Act applies to social housing
only, and secondly,
the functions and powers of the SHRA apply to social housing only. In
that case, it must be so, as argued by
the appellant, that the SHRA’s
powers and functions are legislated by the Act and that it cannot act
beyond or outside of
its legislated mandate. Thus, the SHRA has no
authority, regulatory or otherwise, in respect of properties which
are not defined
as social housing stock, such as privately owned
property or private vacant land that did not have the benefit of
public funding.
[29]
It is also important to note from the
Preamble that the SHRA’s core function is to regulate all
social housing institutions
which obtain or have obtained public
funds. Having regard to the above initial parameters, the application
of the Act and the ambit
of the SH
R
A’s
legislative mandate, where an institution such as the appellant did
not obtain public funds for a particular project or
property, and/or
where the particular property owned by the relevant institution is
not social housing, then the Act does not apply
and the regulatory
function of the SHRA also finds no application. This conclusion is
self-evident and logical.
[30]
Furthermore,
the Act applies to institutions that received accreditation by the
SHRA which allow such social housing institution
access to grants
under the social housing programme. Public funding would then be
granted for an approved social housing project
in terms of which the
social housing institution would acquire, develop, convert or upgrade
buildings for social housing
[7]
.
Section
11(3)(b) of the Act prescribes one of the functions of the SHRA to be
that of accreditation of social housing institutions
which meet
accreditation criteria as a social housing institution, for purposes
of applying for grant funding as allowed in section
11(3)(a) of the
Act.
[31]
The
appellant submits that having regard to the legislative framework,
the SHRA only has jurisdiction over social housing stock
when regard
is had to the definitions in section 1, as set out above, read with
the provisions of sections 11 and 12. Having regard
to the text,
context and purpose of the legislation, I agree with these
submissions
[8]
. The SHRA is the
Regulatory Authority, with an important role, key to the development,
awareness and support of social housing
development, but its powers
and authority are strictly limited to social housing stock.
[32]
Regulation 3 of the Social Housing
Regulations addresses the qualifying criteria for accreditation of
social housing institutions.
Regulation 3(7) which the first
respondent refers to in the answering affidavit, sets out the
requirements necessary for an effective
tenant/membership management,
such as staffing resources, a tenant/membership plan, communication
strategies, complaints management
systems, surveys, consultation and
empowerment programme and the like.
Interference on appeal
[33]
In
the absence of a demonstrable error, the Court
a
quo’s
factual findings are presumed to be correct
[9]
.
In
Makate
v Vodacom
[10]
,
the Constitutional Court emphasised that in the case of a
misdirection on the facts, the appellate Court is entitled to draw
its own conclusions from the facts as they appear from the record,
and where it is convinced that the Court
a
quo
was clearly wrong in its conclusion, the appellate Court will
reverse the incorrect decision.
Discussion
[34]
With the above in mind, I have regard to
the remaining points
in limine
which formed the subject of the Acting Magistrate’s judgment.
At paragraph 10 of the judgment, he made a finding that no
due
process was followed by the appellant yet also found that the
appellant had made concerted efforts to liaise with the respondents
prior to commencing litigation. The Acting Magistrate found that in
certain cases, agreements were reached with the respondents
to settle
arrear rental and that such agreements were, however, reneged on as
some respondents failed to respond thereto. My understanding
from the
judgment is that the Acting Magistrate recognised that these
agreements were concluded in terms of private leases with
the
appellant.
[35]
In addition, the Acting Magistrate had
already decided the point
in limine
that there was no pre-litigation
nor meaningful engagement, yet the judgment later indicates that the
second, fourth and fifth
points
in
limine
would be dealt with
collectively. On a close reading of the judgment, particularly from
paragraph 34 onward, it then transpires
that the fourth point is not
discussed further as indicated. Unfortunately, the confusion in the
judgment was foreshadowed by the
protracted and disjointed
proceedings in the Court
a quo
which
are addressed later herein.
[36]
In view of these aspects, which set the scene for the
remaining points
in limine
which the Acting Magistrate was
required to determine, it was thus required of him to have
appreciated and understood the limitation
of the SHRA’s
legislative mandate, its authority and the extent thereof within the
parameters of the Act. However, he failed
to do so.
[37]
In
respect of the second point
in
limine,
described
in the judgment as “
non-compliance
with Social Housing Regulatory Authority”
,
the Acting Magistrate found that it was common cause that the
properties under discussion benefitted from public funding, and
in
this regard, relies on “
the
title deeds registered over the properties concerned”
[11]
.
He
refers to the Certificate of Registered Title T[...] in respect of
Erf 1[...] Cape Town, 9[...] J[...] Street, Brooklyn.
The Certificate
of Registered Title should be read with the Windeed Search which
indicates that the property was registered in
the appellant’s
name in July 1975. The evidence of Ms Hansrajh confirms that 1 A[...]
Huise forming the subject of the eviction
application in this appeal,
is situated at 9[...] J[...] Street, Brooklyn. The first respondent’s
legal representative submitted
that because the Title Deed refers to
the Act, therefore it must be accepted that public funds were
utilised to purchase the property,
Erf 1[...]. The submission, in my
view, was not correct because the Title Deed is not evidence that
because a bond was passed in
favour of the Citizen’s Housing
League, the appellant’s predecessor, therefore it must be so
that public funds were
used to buy the particular property.
[39]
In my view, the reliance on the Title Deed is based on the
incorrect assumption that it is proof that public funding was used to
purchase 1 A[...] Huise in Brooklyn. The appellant acquired the
property in 1975 and the vague suggestion that the application
of the
Act’s provisions is retrospective, is unsustainable. Given that
the points
in limine
were raised by the first respondent, it
was incumbent on the latter to have proved that the property was
purchased with public
funds and thus constitutes social housing stock
which must therefore be regulated by the SHRA. The first respondent
failed to do
so and neither of the SHRA managers summoned to appear
and testify before the Acting Magistrate, provided evidence which
would
or should have caused the latter to reach a conclusion, as he
did, that the property benefitted from public funding and was thus
social housing stock.
[40]
The Acting Magistrate’s conclusion
that it was common cause that the properties benefitted from public
funding, was wrong.
From the affidavits filed in the application, the
further documents provided and the testimonies of Ms Hansrajh and Mr
Dladla,
there was simply no factual basis to conclude that it was
common cause that the property was purchased from public funds.
[41]
The further conclusion at paragraph
37 of the judgment that:
“…
the
funding received, falls under the definition of “institutional
subsidy”. It should therefore be regarded as social
stock
housing”,
was
thus tainted by an incorrect conclusion which was followed by further
errors in the judgment insofar as the role and ambit of
the SHRA’s
involvement and regulatory oversight in respect of the property in
question. Ms Hansrajh and Mr Dladla confirmed
the appellant’s
version that the said property was not social housing stock and that
private stock was unsubsidised. In the
result, the finding was
incorrect because 1 A[...] Huise, 9
[...]
J[...]
Street, Brooklyn was not social housing stock, as the appellant
stated in its founding affidavit, and in those circumstances,
it did
not fall under the auspices and regulation of the SHRA.
[42]
While the Acting Magistrate’s
exposition of the role and purpose of the SHRA cannot be faulted, his
later finding that the
property should have been registered as social
housing stock, that the SHRA should have regulated these properties,
and that in
the case of social housing stock, there was no indication
that the SHRA “
executed the
necessary controls and administration”,
were all incorrect. These sweeping statements and findings were
simply not supported by the evidence presented in the proceedings
before the Court
a quo
.
[43]
I agree with the appellant’s
submission that the Acting Magistrate, notwithstanding his
acknowledgement that Ms Hansrajh had
differentiated that private
stock was unsubsidised and did not receive public finding, erred when
he failed to properly consider
the provisions of the Social Housing
Act. He accordingly, furthermore, failed to appreciate that
privately-owned property such
as 1 A[...] Huise, was not subject to
the Act and Regulations, nor to the oversight of the SHRA.
[44]
I thus agree with the appellant’s
submission that by extending the powers of the SHRA to include
private housing stock, the
Acting Magistrate impermissibly extended
the mandate and authority of the SHRA as delineated in the Preamble
and sections 11 and
12 of the Act. As such, the Acting Magistrate
acted beyond his authority and
ultra
vires
the provisions of the Act.
[45]
In my view, the Acting Magistrate’s
reliance on the
Berea
judgment requires closer scrutiny in this appeal as he sought to rely
on the Constitutional Court’s judgment to motivate
and support
his approach in the matter and the call for witnesses and further
evidence from the SHRA. It is correct that the
Berea
judgment calls for a pro-active approach from Courts in eviction
applications in terms of PIE, but on a proper reading of the
judgment, this pro-active approach must be placed in context.
[46]
In
Berea,
the
Court addressed,
inter
alia,
the
approach and duty of Courts generally in PIE applications but
specifically where there was a consent to eviction. It referred
to
Port
Elizabeth Municipality v Various Occupiers
[12]
and other judgments when discussing the role of Courts in the enquiry
into whether it is just and equitable to evict a person and
the
further consideration of relevant circumstances as contemplated in
sections 4(6), 4(7) and 6(1) of the PIE Act, as follows:
“
[41]
The prohibition in section 26(3) is given effect to through the
enactment of PIE. This Act goes further
and enjoins the courts
to order an eviction only “if it is of the opinion that it is
just and equitable to do so, after considering
all the relevant
circumstances” as contemplated in section 4(6) and (7) and
section 6(1).
[42]
This Court in Port Elizabeth Municipality emphasised the new approach
that courts must adopt
in eviction matters. A court must take
an active role in adjudicating such matters. As this Court
stated:
“
The court is
thus called upon to go beyond its normal functions and to engage in
active judicial management according to equitable
principles of an
ongoing, stressful and law-governed social process. This has
major implications for the manner in which
it must deal with the
issues before it, how it should approach questions of evidence, the
procedures it may adopt, the way in which
it exercises its powers and
the orders it might make. The Constitution and PIE require
that, in addition to considering the
lawfulness of the occupation the
court must have regard to the interests and circumstances of the
occupier and pay due regard to
broader considerations of fairness and
other constitutional values, so as to produce a just and equitable
result.”
(footnotes omitted)
[47]
It is clear from the above authorities, that the active
judicial management referred to in
PE Municipality
and
Berea
must be based on equitable principles. The
procedures adopted, the approach to evidence, and the exercise of a
Court’s powers
in eviction applications must still be centred
in equity, more particularly when determining whether it is just and
equitable to
evict, and if so, the Court’s consideration of
relevant circumstances as referred to in the PIE Act.
[48]
In my view, neither
Berea
nor
PE
Municipality
allow for a situation as that which transpired
in the proceedings before the Acting Magistrate, where he exceeded
his authority
and sought to extend the powers of the SHRA, as the
regulatory authority, beyond the ambit of the Social Housing Act,
under the
auspices of his “
judicial management”
of
the matter. The findings and conclusions in the judgment were not
equitable, and decisions were based on a misunderstanding
of the
facts and misinterpretation of sections of the Act, namely that the
property was institutionally subsidized and that the
Title Deed is
proof of public funding.
[49]
Clause
6.5.6 of the lease agreement allows the landlord to collect
information from the tenant in order to compile tenant
registers,
which may be used by the SHRA, provincial or local government
authority. This is the only reference to the SHRA in the
lease
agreement and in my view, does not alter the conclusion that the
judgment was incorrect to find that the appellant’s
private
stock fell under the authority and regulation of the SHRA. The
parties could agree to be bound by the Act, but that does
not mean
that the SHRA’s powers extend to the appellant’s private
stock
[13]
.
[50]
In my view, the Acting Magistrate’s finding that the
SHRA had a role to play and had regulatory powers over the
appellant’s
private stock was
ultra vires
the Act. Thus,
I conclude that the Court
a
quo
erred when it upheld the point
in
limine
that there was non-compliance
with the SHRA’s authority.
[51]
In
respect of the point
in
limine
that no due process was followed, it is telling that the first
respondent does not identify in her answering affidavit what the
“due
process” was, except to refer to Regulation 3(7). This
Regulation has no applicability to privately-owned property
but even
if it were applicable to the parties’ agreement, it is evident
from clause 6.5 of the lease agreement, that the
appellant sought
information from the tenant for reasons including legal and
regulatory requirements
[14]
,
for compiling tenant registers
[15]
,
was required to determine support structures
[16]
and for compliance with various management and administrative
functions. To this extent, it cannot be said that due process
was not followed in relation to the first respondent and accordingly,
the decision to uphold this point
in
limine
was wrong. Interference on appeal is thus warranted in the
circumstances.
[52]
It is evident that the appellant is a
social housing institution and that 1 A[...] Huise, 9
[...]
J[...] Street, Brooklyn, is privately owned by it.
Thus, it does not form part of the appellant’s social housing
stock, a
fact which the Acting Magistrate should have been alive to.
Furthermore, as the registered owner of the property, the appellant
elected to exercise its right as owner and lessor to terminate the
lease agreement with the first respondent in view of the alleged
material breach of the provisions of the lease agreement.
[53]
Whether
the first respondent is an unlawful occupier or not is an aspect yet
to be determined by the Court
a
quo.
It
is also evident from the application and the evidence presented
during the hearing that the appellant is not a normal landlord
and if
one has regard to some of the provisions of the lease, it is also
clear that it operates in a particular space in respect
of low-income
housing
[17]
. In view of the
above findings, the appeal will be upheld.
Concluding
observations
[54]
I am cognisant that this is an appeal and
not a review of the proceedings in the Cape Town Magistrates’
Court. However, I
am also of the view that it would be remiss to turn
a blind eye to the numerous incorrect decisions and procedural
deficits adopted
by the Acting Magistrate which unfortunately are
glaring from the very lengthy and voluminous record. In view of the
fact that
the parties are agreed that the eviction applications are
still to be determined and that the matters are to be referred to the
Magistrates’ Court for such hearing, the aspects addressed
below are thus necessary.
[55]
The comments are not meant to cause
the Acting Magistrate any embarrassment but are intended to highlight
errors which had the result
of unnecessarily protracting and delaying
the eviction proceedings. Firstly, notwithstanding finding that the
application regarding
property at 2
[...]
G
[...]
Flat, 9
[...]
J[...]
Street, Brooklyn, was not before him, meaning that he should not have
made any decisions and findings regarding such matter,
the Acting
Magistrate nevertheless dismissed the application. Secondly, he
allowed the first respondent’s legal representative
to include
a lease agreement related to an unrelated property not forming part
of the matters before him and to attach same to
an order which he had
granted.
[56]
Thirdly, the Acting Magistrate also
insisted that Ms Hansrajh investigate funding of the appellant’s
projects and return to
Court to testify about the report. Despite Ms
Bruintjies, the appellant’s legal representative in the Court
a
quo
, having informed the Acting
Magistrate that the Goedehoop property which he had queried and
wanted investigated, was not part of
the applications, he nonetheless
persisted that an investigation be conducted. It is apparent that
despite concerted efforts by
the legal representative to inform the
presiding officer that 1 A[...] Huise is not the same property, the
significance of the
distinction was not appreciated by the Acting
Magistrate.
[57]
Fourthly, the Acting Magistrate also
insisted upon a forensic report and further investigation regarding
the appellant and its business,
which in my view, goes beyond what he
was called upon to decide in the determination of the points
in
limine
. Furthermore, it is concerning
that throughout the proceedings regarding the points
in
limine,
he constantly and regularly
deferred to the first respondent’s legal representative,
requesting the latter to write letters
to the SHRA for further
information which the Court wanted. These actions are concerning
because the request came from the Court
and not from one of the
parties to the proceedings, and he should thus not have abdicated
this responsibility to the legal practitioner.
[58]
In addition to the above, the Acting
Magistrate allowed witnesses to testify regarding a report related to
the appellant, which
was compiled by an external auditor, who was not
called to confirm the correctness and veracity of the content and
findings of
the report.
[59]
Regrettably, the record reflects that the
proceedings were conducted in a haphazard, disorderly fashion, with
countless interjections
during witnesses’ testimonies,
including submissions by legal representatives while witnesses
testified.
[60]
In my view, the consequences of these
combined circumstances and the Acting Magistrate’s insistence
that he had wide powers,
led to a situation where proceedings on
points
in limine,
which
should have been brief and concluded within a few hours at most,
became a remarkably and unnecessarily lengthy hearing.
[61]
Witnesses from the SHRA were required to
fly to Cape Town to testify more than once, conduct investigations
and testify regarding
a report by a third party, at the behest of the
presiding officer who misconceived the ambit of authority of the SHRA
and paid
no heed to the fact that 1 A[...] Huise was private stock.
In light of these factors, my view is that the eviction proceedings
should proceed before a different Magistrate.
Costs
[62]
Insofar as costs are concerned, the
order upholding the appeal and setting aside the Acting Magistrate’s
decision on the two
points
in limine
would have the effect that the costs order against the appellant
would also be set aside. During the hearing, counsel for the
appellant submitted that should the appeal succeed, costs should not
be awarded against the first respondent, and I am in agreement
with
this view.
Order
[63]
In the result, I would make the following order:
a.
The
appeal is upheld. No order as to costs.
b.
Paragraphs 46 and 47 of the Order granted by the Court
a quo
are substituted with the following:
“
The
points in limine are dismissed. No order as to costs.”
c.
The matter under case number 1303/2019 is referred to the Cape Town
Magistrates’
Court for hearing of the merits of the eviction
application before a different Magistrate.
M PANGARKER
JUDGE OF THE HIGH
COURT
I
agree and it is so ordered.
M FRANCIS
JUDGE OF THE HIGH
COURT
Appearances
:
For Appellant:
Adv A Lawrence
Instructed by:
Toefy Attorneys
Kenilworth
For First to Eleventh,
and Thirteenth Respondents: Mr B Dlova
Instructed
by:
Dlova Attorneys
Cape
Town
[1]
Notice
of Appeal
[2]
Excluding Drommedaris Phase 1
[3]
Excluding
Bothasig Gardens Phase 1
[4]
2017
(5) SA 346
(CC)
[5]
The
reference in the Preamble to safe living conditions which exclude
slum conditions
[6]
Section
1 of the Act
[7]
See
meaning of “approved project’ in section 1
[8]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012] ZASCA 13
par [18]
[9]
Bee
v Road Accident Fund
[2018] ZASCA 52
par [46]
[10]
2016
(4) SA 121
(CC) par [40]
[11]
Judgment,
par 36
[12]
[2004]
ZACC 7
at par
[36]
[13]
See
section 11(1) of the Act
[14]
Clause
6.5.13
[15]
Clause
6.5.6
[16]
Clause
6.5.10
[17]
See
for example, clauses 5.6, 6.5.2, 6.5.6 and 6.5.13 of lease agreement
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