Case Law[2025] ZAWCHC 378South Africa
De Wet v Barron and Others (796/2024) [2025] ZAWCHC 378; [2025] 4 All SA 373 (WCC) (22 August 2025)
High Court of South Africa (Western Cape Division)
22 August 2025
Headnotes
Summary: Prescription – whether claim for specific performance prescribed – nature of reciprocal obligations – interruption of prescription – sections 12(3), 13(2) and 14(1) of the Prescription Act considered.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## De Wet v Barron and Others (796/2024) [2025] ZAWCHC 378; [2025] 4 All SA 373 (WCC) (22 August 2025)
De Wet v Barron and Others (796/2024) [2025] ZAWCHC 378; [2025] 4 All SA 373 (WCC) (22 August 2025)
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sino date 22 August 2025
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
and
SAFLII
Policy
FLYNOTES:
CIVIL PROCEDURE – Prescription –
Specific
performance claim
–
Transfer
of half share in property – Deed of sale did not specify
date for transfer – Obligations were immediately
due upon
signature – Had all necessary knowledge to enforce claim
from 2014 – Failed to act with reasonable diligence
–
Payments to municipality did not interrupt prescription or
constitute acknowledgment of liability – Settlement
of
arrear municipal account is not a reciprocal debt – Claim
extinguished by prescription – Application dismissed
–
Prescription Act 68 of 1969
,
ss 12(3)
,
13
(2) and
14
(1).
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
###
CASE NO
:
796/2024
REPORTABLE
In
the matter between:
DESMOND
MATTHEW DE WET
APPLICANT
and
MARK
GEORGE BARRON
FIRST RESPONDENT
THE
SHERIFF, DISTRICT OF PAARL
SECOND RESPONDENT
REGISTRAR
OF DEEDS, CAPE TOWN
THIRD RESPONDENT
STANDARD
BANK OF SA LTD
FOURTH RESPONDENT
Coram
:
MOOSA AJ
Heard
:
4 AUGUST 2025
Delivered
:
22 AUGUST 2025 (delivered electronically
to the parties)
Summary
:
Prescription – whether claim
for specific performance
prescribed – nature of reciprocal obligations –
interruption of prescription –
sections 12(3)
,
13
(2) and
14
(1)
of the
Prescription Act considered
.
ORDER
1.
The application is dismissed with costs. Counsel’s fees are
allowed on
scale B.
JUDGMENT
Moosa
AJ
Introduction
[1]
This judgment pertains to an application for specific performance. It
was issued on
12 January 2024. Pursuant to a deed of sale dated 25
July 2014, the Applicant seeks an order which would compel the First
Respondent
to take all necessary steps to effect registration of
transfer into the Applicant’s name of one-half, undivided share
in
portion 54 (portion of portion 14) of Farm no. 1202 in the
Stellenbosch Municipality, held by First Respondent under Deed of
Transfer
T[...] (“the property”).
[2]
The application was argued before me on a narrow point of law only,
namely, whether
the Applicant’s claim for transfer of the
property was unenforceable by reason that it had prescribed under the
Prescription
Act 68 of 1969 (“the
Prescription Act&rdquo
;).
[3]
If the Applicant’s claim is subject to extinctive prescription
as was plead
by the First Respondent, then that would be dispositive
of the application. Counsel for both parties agreed that,
notwithstanding
the contention in the court papers that there
are material factual disputes requiring oral testimony, the facts are
germane
to a determination of the prescription issue are common cause
so that this issue is capable of being resolved on the papers alone,
even using a robust, common-sense approach (if necessary). I agree.
See
Soffiantini v Mould
1956 (4) SA 150 (E) at 154G-H.
Issue
for adjudication
[4]
The issue which forms the subject of this judgment is a crisp
question of law, namely,
whether the Applicant’s claim
for transfer of the property has prescribed under the
Prescription
Act. If
yes, then the application must fail and is to be dismissed.
Relevant
factual matrix
[5]
The facts narrated under this heading are those common cause ones
distilled from the
pleadings which are relevant to a determination of
the prescription issue.
[6]
The Applicant and the First Respondent have been acquainted for more
than two decades.
During 2013/2014, the First Respondent experienced
financial difficulty. Consequently, he could not fulfil his monthly
loan repayment
(i.e., mortgage bond) instalments to Standard Bank of
SA Ltd (“the Bank”). The property is hypothecated to the
Bank
as security for First Respondent’s indebtedness to it
arising from a term loan. When the First Respondent defaulted on his
payments, the Bank sued. It obtained judgment and an order
authorising foreclosure. To prevent the complete loss of the property
during a sale in execution, First Respondent required the sum of
R50 000,00. Enter the Applicant to the scene.
[7]
By agreement, the Applicant advanced the much-needed sum of
R50 000,00. This
was paid to the Bank, thereby averting the sale
in execution completely.
[8]
The R50 000 advance was not given as a loan. By agreement in
writing, that payment
was made in fulfilment of a contractual
obligation included as a ‘special condition’ in a deed of
sale entered into
between the Applicant and the First Respondent at
Queenstown, Eastern Cape on 25 July 2014 (“the deed of sale”).
[9]
In terms of clause 23, and for the financial benefit of the First
Respondent, the
deed of sale stipulated that the ‘Seller &
Purchaser hereby authorises Attorneys Bowes McDougall Inc on date of
signature
of this Deed of Sale to pay over an amount of R50 000,00
… of the purchase price to Standard Bank to cancel the Sale
in
Execution which is scheduled to be held on Monday 28/7/2014’.
[10]
The deed of sale executed on 25 July 2014 is the contract forming the
basis for the Applicant’s
cause of action against the First
Respondent for specific performance. Clause 4 thereof is headed
‘Transfer’. It provides
for transfer of the property to
the Applicant after compliance with clauses 2 and 3 of the deed of
sale.
[11]
For present purposes, it is necessary to quote clauses 2, 3, 4 and 6
of the deed of sale in full,
as well as the relevant part of the
breach clause. They read as follows:
‘
2.
PURCHASE
PRICE
2.1
The purchase price is the sum of
R130 000.00 (ONE HUNDRED AND
THIRTHY THOUSAND RAND)
which amount has been paid in full.
2.2
The SELLER accepts responsibility for payment of half of all the
outstanding debt in respect
of the property.
2.3
It is herewith recorded that the
PROPERTY
is bonded in favour
of Standard Bank, Mortgage Bond Number B81292/2004 for the amount of
R230 000.00 (TWO HUNDRED AND THIRTHY THOUSAND RAND)
. An
amount of approximately
R277 000.00 (TWO HUNDRED AND SEVENY
SEVEN THOUSAND RAND
is outstanding.
2.4
An amount of R55 135.65
(FIFTY FIVE THOUSAND ONE HUNDRED AND
THHIRTY FIVE RAND AND SIXTY FIVE CENTS)
is due to the
Stellenbosch Municipality for arrear and annual rates and taxes.
2.5
All costs incidental to the registration of the transfer and mortgage
bond and rates shall
be paid to the
SELLER’S
Conveyancers within 14 (fourteen) days of being called upon to do so
by such Conveyancers.
2.6
Both the
SELLER
and
PURCHASER
shall be required to sign
any transfer and bond documentation to give effect to the
registration of the transfer and/or bond within
7 days of being
called upon to do so.
3.
COST OF TRANSFER
The
PURCHASER
shall pay all transfer costs incurred in respect of
the transfer of the
PROPERTY
, including transfer duty and
costs of this Deed of Sale, and any
VALUE ADDED TAX
on such
costs, which amounts shall be paid immediately upon request of the
SELLER’S
Conveyancers and provided for in Clause 2.5
hereof.
4.
TRANSFER
Transfer
of the
PROPERTY
shall be passed by the
SELLER’S
Conveyancers, Bowes McDougall Incorporated and shall be given and
taken upon the
PURCHASER
and
SELLER
having complied
with Clause 2.1, 2.2, 2.3, 2.4, 2.5 and 3 hereof. …
6.
RATES AND TAXES
6.1
Both the
SELLER
and
PURCHASER
shall be responsible for
all arrears rates and taxes and sewerage charges levied against the
property.
6.2
Both the
SELLER
and
PURCHASER
undertake that all arear
rates and taxes and refuse removal and sewerage charged levied
against the property and all service charges
will be paid in full on
transfer and that the Municipal account will be paid in full and will
be up to date when the property is
transferred. …
10.
BREACH
…
10.2
Similarly in the event of the
SELLER
failing to fulfil, on due date, any of the terms and conditions of
this Deed of Sale, the
PURCHASER
will
be obliged to give the
SELLER TEN
(10) days written notice, from the date of delivery of a written
notice to the
SELLER
to rectify their breach, failing which the
PURCHASER
will be entitled:
(a)
to cancel the sale by registered letter addressed to the
SELLER
and to claim any damages which he /she may have suffered; or
(b)
to claim delivery of the
PROPERTY
against payment of the
purchase price.’
[12]
Applicant complied with some of his contractual obligations. This
included the special condition
in clause 23 of the deed of sale.
Clause 2.1 records that the Applicant paid the purchase price of
R130 000,000 in full. He
partially complied with his obligations
under clause 6 read with clause 2.4 of the deed of sale. This he did
by paying R20 570,00
of the arrear municipal charges totalling
R55 135.65. He made payments to
Stellenbosch municipality in periodic instalments. This
occurred during the period between 14 October 2016 to 18 February
2021 (see
annexure DMD6).
[13]
The founding papers records that the Applicant took steps for the
first time in January 2021
to ensure that transfer took place. This
was more than six years after the deed of sale was executed on 25
July 2014. The Applicant
was unsuccessful. He avers that the First
Respondent was not contactable at that time. This averment is
undisputed.
[14]
The Applicant subsequently contacted the First Respondent on 1
February 2021. On the pleadings,
this is the first time when the
Applicant called on the First Respondent to give him transfer of the
property. Applicant refers
to this as an ‘informal request’.
In reply, the First Respondent informed the Applicant that the latter
should reach
out to the former’s attorney, Mr L Fortuin. The
Applicant duly complied.
[15]
On 1 February 2021, when the Applicant reached out to Mr Fortuin
telephonically, the latter informed
the Applicant that, in his (Mr
Fortuin’s) view, the deed of sale was unenforceable by reason
that the property in question
was agricultural land, which could not
be sold without ministerial approval first being given under the
Subdivision of Agricultural
Land Act 70 of 1970. It is common cause
that such approval had not been obtained.
[16]
According to the founding papers, a substantial delay exceeding two
years then ensued. The delay
on the Applicants’ part was partly
due to the advice received from some attorney firms approached by him
to enforce his claim
under the deed of sale, which indicated that a
claim for transfer was unenforceable. Other law firms took no action
regarding his
case. The Applicant became despondent as a result of
this and failed to pursue the matter with any vigour. Finally, in
August 2023,
the Applicant appointed Etienne Fourie & Co
Attorneys (“EF & Co”). They launched the present
application.
[17]
Prior to initiating this application on 12 January 2024, EF & Co
commenced their work by
conducting a property search at the Deeds
Office. This was done in August 2023. It was then that EF & Co
discovered that there
was an endorsement on the Deed of Transfer
T[...] which pertains to the property held by the First Respondent.
In terms thereof,
the property is exempted from the requirement of
prior ministerial consent for any sale. Accordingly, the absence of
ministerial
consent did not then, and does not now, serve as a bar to
registration of transfer as sought by the Applicant on the strength
of
rights arising from the deed of sale.
[18]
On 13 October 2023, EF & Co sent a formal letter of demand to the
First Respondent in terms
of clause 10.2 of the deed of sale. In
terms of that demand, the Applicant insisted on registration of
transfer of the property
into his name pursuant to the deed of sale.
On 30 November 2023, the First Respondent replied. He recorded his
refusal to effect
transfer. In his reply, no mention was made about
prescription.
[19]
The First Respondent’s refusal to comply with the terms of the
Applicant’s demand
for transfer culminated in this application
being launched in early January 2024. In his answering affidavit, the
First Respondent
averred, inter alia, that the Applicant’s
claim for transfer lapsed through the operation of extinctive
prescription.
## Submissions
by the parties’ counsel
Submissions
by the parties’ counsel
[20]
Applicant’s counsel, Mr Karuaihe contended that although the
Applicant’s claim for
transfer constitutes a debt that is
subject to the
Prescription Act, prescription
has not commenced (“the
primary argument”). Mr Karuaihe argued, in the alternative,
that while prescription may have
commenced once the deed of sale was
entered into, its progression was subsequently interrupted and/or had
not been finalised by
the time this application was launched on 12
January 2024 and was served on 24 January 2024 (“the secondary
argument”).
[21]
The primary argument is predicated on the submission that
prescription would only begin to run
once the First Respondent’s
debt to the Bank, being the Fourth Respondent, is settled in full by
the end of the loan term,
which debt is secured by the mortgage bond
mentioned in clause 2.3 of the deed of sale. Mr Karuaihe submitted
that compliance by
the First Respondent with his financial obligation
to the Bank by the end of the loan term is a pre-requisite for the
Applicant’s
entitlement to enforce his claim for transfer.
Although the loan period was unclear on the papers, counsel for both
parties were
ad idem that the loan term had not yet elapsed. The
First Respondent was still servicing that debt to the Bank by way of
monthly
instalments.
[22]
Mr Karuaihe argued that the settlement of the term loan debt, which
is secured by the mortgage
bond registered over the entire property,
is a condition precedent for the transfer of the property as outlined
in clause 4 of
the deed of sale. Therefore, the Applicant is
precluded from demanding settlement of that debt, and has been so
precluded at all
times material since the date of execution of the
deed of sale. Mr Karuaihe submitted that, for this reason, the
Applicant had
not demanded settlement of the debt to the Bank, which
would allow for cancellation of the mortgage bond and
registration
of transfer into his name.
[23]
In the alternative, Mr Karuaihe submitted that, in accordance with
s
14(1)
of the
Prescription Act, prescription
was interrupted by each
and every payment made by the Applicant to the local authority
pursuant to clause 6 of the deed of sale.
Mr Karuaihe submitted that,
based on this reasoning, the running of prescription was interrupted
until 18 February 2021, being
the date of the Applicant’s last
payment to the Stellenbosch municipality. He argued that since the
application was launched
and served on the First Respondent within
three years from that last payment date, Applicant’s claim has
not prescribed and
is still extant and enforceable in law.
[24]
Mr Karuaihe also relied on
s 13(2)
of the
Prescription Act. With
reference to
Botha and Another v Rich NO and Others
2014 (4)
SA 124
(CC) para 43, he submitted that clause 6 of the deed of sale
created reciprocal obligations for himself and the First Respondent
regarding the arrear local authority debts levied on the property.
He argued that the First Respondent’s debt to the
local
municipality had not prescribed by the time when this application was
launched on 12 January 2024 and served on 24 January
2024.
Consequently, so he argued, the First Respondent acknowledged his
liability, which meant that the prescription could not
have been
completed.
[25]
The First Respondent's attorney, Mr Vorster SC, cited
Blaauwberg
Meat Wholesalers CC v Anglo Dutch Meats (Exports) Ltd
2004 (3) SA
160
(SCA) and
Road Accident Fund and Others v Mdeyide
2011 (2)
SA 26
(CC) to argue that the Applicant's claim for property transfer
is a ’debt’ under the
Prescription Act which
has
prescribed because of his inaction, which lasted for more than three
years. He contended that the inaction was Applicant’s
failure
to take steps timeously to enforce his transfer claim.
[26]
Mr Vorster SC pointed to Applicant’s failure to demand
performance of the First Respondent’s
financial obligations
imposed by the deed of sale. This includes, but is not limited to,
payment of the arrear municipal charges
and settlement of the debt
owed to the Bank so that the mortgage bond could be cancelled and
transfer effected. Mr Vorster SC argued,
relying on
Uitenhage
Municipality v Molloy
[1997] ZASCA 112
;
1998 (2) SA 735
(SCA) at 742E - 743C, that
the Applicant’s failure for more than 9 years to use clause
10.2 of the deed of sale to demand
performance of the First
Respondent’s obligations under the deed of sale and to sue for
transfer renders the claim for transfer
prescribed.
## Discussion
of the relevant prescription principles and their application in casu
Discussion
of the relevant prescription principles and their application in casu
[27]
The defence of prescription places an evidential burden on the party
raising it. Thus, the First
Respondent must prove that Applicant’s
claim is extinguished by the lapse of a time period imposed by
s 11
of the
Prescription Act. See
Mcleod v Kweyiya
2013 (6) SA 1
(SCA) para 10. Accordingly, the First Respondent must establish
that the Applicant failed to meet the standard of diligence
required
by
s 12(3)
of the
Prescription Act. If
a prima facie case for
prescription is proved, then the onus shifts to the Applicant. See
Grimbeek v Jacobo
(922/2017)
[2018] ZASCA 131
(27 September
2018) para 21.
[28]
As appears from my summary of counsels’ submissions, a key
issue to be resolved is whether
prescription has begun to run. This
is the subject of
s 12
of the
Prescription Act. Accordingly
, it is
necessary to quote this provision so far as it is relevant to this
application.
Section 12(3)
reads:
‘
A
debt shall not be deemed to be due until the creditor has knowledge
of the identity of the debtor and of the facts from which
the debt
arises: Provided that a creditor shall be deemed to have such
knowledge if he could have acquired it by exercising reasonable
care.’
[29]
Based on
s 12(3)
, prescription begins to run as soon as a
‘debt’ becomes ‘due’, or when knowledge of
the debt becoming
due can reasonably be expected of a creditor.
Prescription is judicially interrupted when a process initiating a
lawsuit for the
recovery of a debt is issued, whether by summons or
application, and served on a debtor. In the case of breach of
contract, a creditor’s
remedy is either to cancel a contract
and claim damages; or to keep the contract alive and claim specific
performance (as in this
case). See
Rademeyer v Ferreira
2025
(2) SA 1
(CC) para 59.
[30]
For purposes of
s 12(3)
, the Applicant is ‘the creditor’;
First Respondent is ‘the debtor’. For the purposes of the
Prescription Act, the
term ‘debt’ is undefined. This term
has, however, been the subject of judicial interpretation as to its
import. See
Off-Beat Holiday Club and Another v Sanbonani Holiday
Spa Shareblock Ltd and Others
2017 (5) SA 9
(CC) paras 43 - 44;
Lotter and Another v Lona Fruit Cape (Pty) Ltd and Another
(19818/23)
[2025] ZAWCHC 196
(12 May 2025) paras 59 - 60.
[31]
In casu, the Applicant is owed a ‘debt’ as envisaged by
s
12(3)
, namely, a contractual duty by the First Respondent to transfer
the property, being an obligation to deliver corporeal goods in
the
form of immovable property. See
Ethekwini Municipality v
Mounthaven (Pty) Ltd
2019 (4) SA 394
(CC) para 8. This is
uncontroversial. While it is trite that a ‘debt’ under
the
Prescription Act includes
an obligation arising from a contract
for specific performance (
Tsie v Brenner and Others
2024 JDR
1130 (GJ) para 29), the issue arising is: when does such a claim fall
due?
[32]
In
Trinity Asset
Management (Pty) Ltd v Grindstone Investments 132 (Pty) Ltd
2018
(1) SA 94
(CC)
para
47, the apex court held as follows:
‘
In
sum, the relevant principles may, in my view, be restated as follows.
A contractual debt becomes due as per the terms of that
contract.
When no due date is specified, the debt is generally due immediately
on conclusion of the contract. However, the parties
may intend that
the creditor be entitled to determine the time for performance, and
that the debt becomes due only when demand
has been made as agreed.
Where
there is such a clear and unequivocal intention, the demand will
be a condition precedent to claimability, a necessary
part of the
creditor's cause of action, and prescription will begin to run only
from demand
…’
(my emphasis added)
[33]
In casu, the deed of sale does not specify an exact date when the
First Respondent is obliged
to give registration of transfer and
Applicant is entitled to receive transfer. Since the contract is
silent on when performance
is due, it must be regarded as due on the
date of the conclusion of the deed of sale, unless ‘a clear and
unequivocal intention’
appears from its terms to the effect
that transfer only becomes due once demand for it is made.
[34]
The contract must be construed in order to ascertain if such an
intention applies in this case.
Contractual interpretation entails a
unitary exercise (not a process occurring in stages) in which proper
consideration is given
to the objective content of the document being
construed. Concerning commercial contracts, as with the deed of sale
in casu, the
provisions of the contract are to be given a sensible,
business-like meaning which is appropriate in their commercial
context so
as to best give effect to the underlying purpose of the
parties’ agreement. See
Natal Joint Municipal Pension Fund v
Endumeni Municipality
2012 (4) SA 593
(SCA) paras 18 - 22.
[35]
As a result, the content of the deed of sale related to the
alienation of agricultural land,
its broader context, and purpose
must be understood to determine when transfer became due and
enforceable. Although clause 4 does
not indicate a specific date for
transfer, it indicates the timing thereof, namely, ‘[t]ransfer
… shall be given and
taken upon the PURCHASER and SELLER
having complied with Clause 2.1, 2.2, 2.3, 2.4, 2.5 and 3 thereof’.
[36]
Clause 4 read in conjunction with clauses 2 and 3 are couched in a
way that renders the timing
of compliance with the duties in these
clauses to be immediate, in the sense that the duties are to be
performed immediately after
signature, failing which the remedy in
clause 10 may be invoked by the innocent party. Accordingly, I find
that ‘the debt’
owed to Applicant (that is, transfer of
the property) became ‘due’ immediately on 25 July 2014
(subject to compliance
with clauses 2.1 to 2.5 and 3, which
obligations were immediately due). A contrary intention does not
appear clearly and unequivocally.
Therefore, the Applicant was
entitled to enforce his right to transfer as far back as the 2014
calendar year (see further the discussion
under the next heading).
[37]
Even if the deed of sale were interpreted as rendering the duty to
pass transfer as becoming
‘due’ within a reasonable time
(not immediately) from the execution of the contract on 25 July 2014,
then I hold that
the Applicant still delayed pursuing his claim more
than three years beyond any date which would, in the circumstances,
qualify
as a ‘reasonable time’ computed the date of
execution of the deed of sale. See
Tsie
v Brenner
supra para 34.
[38]
These factual considerations all align neatly with the decision in
Drennan Maud &
Partners v Pennington Town Board
[1998] ZASCA 29
;
1998 (3) SA 200
(SCA) at 290H-I in relation to the exercise of ‘reasonable
care’ as required of a diligent creditor by
s 12(3)
of the
Prescription Act. In
that case, the SCA held:
'In
my view, the requirement "exercising reasonable care"
requires diligence not only in the ascertainment of the facts
underlying the debt, but also in relation to the evaluation and
significance of those facts. This means that the creditor is deemed
to have the requisite knowledge if a reasonable person in his
position would have deduced the identity of the debtor and the facts
from which the debt arises.'
[39]
The applicant also possessed all the necessary information to enforce
his claim at all relevant
points in time after the deed of sale was
completed. The Applicant knew the identity of the party liable to
give him transfer of
the property, namely, the First Respondent. He
knew the First Respondent – they had prior dealings with one
another and they
negotiated the terms of the contract directly with
each other.
[40]
The Applicant knew that his claim for transfer of the property arose
from the deed of sale. As
a result, he admits to making payment in
terms of clauses 2.1, 2.4, 6.1, and 23 in compliance with his
financial obligations for
purposes of transfer under clause 4. All
these facts enabled the Applicant to timeously demand performance
from the First Respondent
and to take legal action, whether
immediately after the deed of sale was concluded, or within a
reasonable time thereafter. He
failed to do so promptly, resulting in
prescription running its course.
[41]
On 1 February 2021, the Applicant made an informal request to the
First Respondent for transfer
of the property. He formally did so in
October 2023 under clause 10.2 of the deed of sale by way of a
demand. This application
was launched on 12 January 2024 and served
on 24 January 2024. These facts demonstrate that the Applicant knew
his debtor’s
identity, and he knew his debtor’s
whereabouts, and he knew of his right to claim transfer of the
property.
[42]
Accordingly, at all material times, it was well within the
Applicant’s control to demand
performance from the First
Respondent timeously, and to institute legal proceedings promptly. He
neglected to judicially interrupt
prescription within the legislated
three-year period in
s 11(
d
) of the
Prescription Act computed
from the date when the Applicant’s claim for transfer became
due under the deed of sale.
[43]
The Applicant’s failure to timeously demand transfer of the
property and to timeously enforce
his right to transfer by way of
legal proceedings constitute inaction on his part which, in the
context of this case, is negligent
(not innocent). His lack of
diligence and failure to exercise reasonable care has consequences
under the law.
[44]
I find that the First Respondent proved, on a prima facie basis, that
the Applicant’s claim
for transfer of the property prescribed
after the lapse of three years computed from the date when the ‘debt’
concerned
fell ‘due’ under the deed of sale, irrespective
whether that date is computed as being immediately after the
execution
of the contract concerned (as I have found was applicable
in casu), or within a reasonable time after the execution thereof on
25 July 2014 (if the alternative reasonable time standard were to be
applicable and is applied).
[45]
The Applicant
procrastinated. He demanded transfer late in 2023 and launched this
application early in 2024, being almost a decade
after his claim fell
due. This is an inordinate delay. The Applicant failed to pursue his
claim for transfer of the property with
the level of expedition and
diligence required of a creditor exercising reasonable care. The
rationale underpinning the operation
of the principle of extinctive
prescription was aptly explained by the apex court in
RAF
v Mdeyide
supra
in the following terms:
‘
This
Court has repeatedly emphasised the vital role time limits play in
bringing certainty and stability to social and legal affairs
and
maintaining the quality of adjudication. Without prescription
periods, legal disputes would have the potential to be drawn
out for
indefinite periods of time, bringing about prolonged uncertainty to
the parties to the dispute. The quality of adjudication
by courts is
likely to suffer as time passes, because evidence may have become
lost, witnesses may no longer be able to testify,
or their
recollection of events may have faded. The quality of adjudication is
central to the rule of law.' (para 8)
[46]
For all the foregoing reasons, I find that the defence of
prescription ought to succeed, unless
I am able to find merit in any
of the arguments advanced by Mr Karuaihe on the Applicant’s
behalf. It is to this question
that I now turn my attention.
Evaluation
of the Applicant’s case against prescription
[47]
Paragraphs [20] through [21] above provide an outline of Mr
Karuaihe's primary argument. Its
effect is that the running of
prescription is postponed until the date when the First Respondent
settles his loan debt with the
Bank by the end of the loan period as
agreed to between the Bank and the First Respondent. Prior to that
date, so the argument
proceeded, the ‘debt’ owed to the
Applicant by the First Respondent is not due. For the reasons
advanced hereunder,
I find that this argument is predicated on
an untenable interpretation of the deed of sale. In my view, Mr
Karuaihe’s
interpretation is both factually unsound and
destructive, as a matter of law, of the Applicant’s case for an
order to compel
transfer of the property.
[48]
If, as a matter of fact and law, the Applicant’s right to claim
transfer is dependent on
the First Respondent’s fixed term loan
with the Bank being settled in full at its expiration, then logic and
common sense
dictate that the application to compel registration of
transfer is premature and, therefore, doomed. This would be so
because it
is common cause that the fixed term loan giving rise to
the First Respondent’s secured debt to the Bank has not yet
expired;
nor has the underlying debt to the Bank been settled.
[49]
Accordingly, based on Mr Karuaihe's main contention, the Applicant
would not currently have an
enforceable right to assert transfer.
But, in my view, a correct interpretation of the deed of sale
inevitably leads to the conclusion
that the Applicant's right to
demand the transfer of the property is independent of the settlement
of the underlying loan debt
owed to the Bank at the conclusion of the
term loan period.
[50]
Mr Karuaihe was constrained to concede that there is no express
provision in the deed of sale
which renders the Applicant’s
right to claim transfer suspended
or postponed until the term
loan between the Bank and the First Respondent is settled at the end
of the loan period. Mr Karuaihe
was unable to identify any clause in
the deed of sale that can be construed as supporting the claim he
made, despite my inquiry
during the hearing. As a result, Mr
Karuaihe’s primary argument is not grounded in a proper
interpretation of the deed of
sale and must fail.
[51]
The loan agreement underlying the mortgage bond and the date on which
the last instalment of
the underlying loan is due to be paid to the
Bank are not mentioned in the deed of sale. Clause 2.3 merely records
the existence
of a mortgage bond in favour of the Bank and the
balance ’outstanding’ at 25 July 2014, being
’approximately
R277 000.00’. These are significant
objective considerations which emerge from the deed of sale and they
are relevant to
its interpretation.
[52]
The objective factors mentioned here bolster my interpretation, and
concomitant view, that the deed of sale envisages the stock
standard,
customary requirement that the seller, who is the First Respondent,
must settle his indebtedness to the bondholder, who
is the Bank, by
no later than the date of registration of transfer so that ownership
of the property can be given to the Applicant,
as purchaser, without
any encumbrance in favour of the Bank. This intention underpins the
deed of sale, and is consistent with
the underlying purpose of that
agreement, namely, to pass ownership to the Applicant of an undivided
share in certain agricultural
land situate in Stellenbosch, Western
Cape.
[53]
If the intention of the contracting parties was to postpone the
Applicant’s right to receive
and to claim transfer of the
property only after the term loan between the Bank and the First
Respondent is settled at the end
of its loan period, then it can
reasonably be expected of them to state so clearly in the deed of
sale. The absence of an express
provision indicating such an
unequivocal intention speaks volumes.
[54]
Mr Karuaihe’s argument also flies in the face of the
Applicant’s pleaded position.
If the Applicant believed that
the bargain he made with the First Respondent was along the lines
contended for by Mr Karuaihe,
then it makes no sense that the
Applicant took informal steps in February 2021 to procure transfer,
and took formal steps in October
2023 by demanding transfer, and then
finally suing for transfer in January 2024.
[55]
It does not make business sense for the Applicant to pay the full
purchase price (as stated in
clause 2.1) and give the First
Respondent money from the sale price to cancel the foreclosure sale
(as stated in clause 23), then
delay his right to claim transfer
until an unspecified future date that is not recorded at all, given
the provisions recorded in
the deed of sale and the goal which the
Applicants intends to achieve (namely, to take transfer of a
half-share in agricultural
land within Stellenbosch).
[56]
For all the foregoing reasons, I reject Mr Karuaihe’s primary
argument. It does not overcome
the prescription defence pleaded in
the answering papers. I now consider Mr Karuaihe’s alternative
argument, being that the
running of prescription was not completed by
virtue of
s 13(2)
of the
Prescription Act, or
that prescription was
interrupted as envisaged by s 14(1) thereof. For present purposes,
these provisions are now quoted in full.
[57]
Sections 13(2)
and
14
(1) read as follows:
‘
13. Completion
of prescription delayed in certain circumstances.
—
…
(2) A debt
which arises from a contract and which would, but for the provisions
of this subsection, become prescribed
before a reciprocal debt which
arises from the same contract becomes prescribed, shall not become
prescribed before the reciprocal
debt becomes prescribed.
…
14. Interruption
of prescription by acknowledgement of liability.
— (1) The
running of prescription shall be interrupted by an express or tacit
acknowledgement of liability by the debtor.’
[58]
Section 13(2)
does not prevent the running of prescription in any
instance. As is evident from the heading to
s 13
and
s 13(2)
’s
contents itself,
s 13(2)
operates to prevent the completion of
prescription: ‘it serves merely to prevent prescription from
taking its toll when the
appropriate period has elapsed if there then
happens to be in existence a reciprocal debt which is not
yet prescribed’
(
Minister of Public Works and Land
Affairs and Another v Group Five Building Ltd
[1996] ZASCA 63
;
1996 (4) SA 280
(A)
at 288C).
[59]
In casu, the three-year prescription period envisaged by
s 11(
d
)
has elapsed.
Section 13(2)
would only operate to prevent prescription
from taking effect (‘taking its toll’) if the Applicant
establishes that,
arising from the deed of sale, there is,
vis-a-vis-himself and the First Respondent, a ‘reciprocal debt
which is not yet
prescribed’.
[60]
In a contract, a reciprocal obligation is a performance owed by one
contracting party to another
in circumstances where the latter
contracting party undertakes a counter-performance in exchange for a
performance received. See
Ese Financial Services (Pty) Ltd v
Cramer
1973 (2) SA 805
(C) at 809D. A reciprocal duty between
contracting parties in the sense explained here creates the kind of
‘reciprocal debt’
within the meaning of this term in the
context of
s 13(2)
of the
Prescription Act.
>
[61]
The following dictum in
Minister of Public Works and Land Affairs
v Group Five Building
supra at 288D usefully expounds on the
notion of reciprocal debts in contract:
‘
Reciprocity of
debt in law does not exist merely because the obligations which are
claimed to be reciprocal arise from the
same contract and each party
is indebted in some way to the other. A far closer, and more
immediate correlation than that is required.’
[62]
For purposes of
s 13(2)
, Mr Karuaihe relies on the duties arising
from clauses 6.1 and 6.2 of the deed of sale (read with clause 2.4).
He argues that the
liability to the Stellenbosch municipality for
arrear rates, taxes, and other local authority charges is a
‘reciprocal debt’
to which
s 13(2)
of the
Prescription
Act applies
. I disagree.
[63]
The deed of sale is a bilateral contract. In terms of clauses 6.1 and
6.2, the obligation to
pay the arrear municipal charges is a joint
debt of the Applicant and the First Respondent. The Applicant, as
purchaser, and First
Respondent, as seller and property owner, agreed
to be jointly liable to pay the arrear charges to the Stellenbosch
municipality.
This is not a reciprocal obligation which the one
contractant owes to the other. Therefore, the contractual duty
resting on Applicant
and the First Respondent to contribute to the
settlement of the arrear municipal account is not a ‘reciprocal
debt’
within the meaning and contemplation of
s 13(2)
of the
Prescription Act.
[64]
Concerning
s 14(1)
of the
Prescription Act, Mr
Karuaihe contends that
the Applicant’s payments to the Stellenbosch municipality
during the period 2016 to 2021 interrupted
the running of
prescription. I disagree. It is inconceivable that the First
Respondent, either explicitly or implicitly, acknowledged
a liability
owed by him, as debtor, to the Applicant, as creditor, resulting from
the deed of sale, based on the Applicants' numerous
payments to the
local authority over the course of five years totalling R20 570,000,
both on an individual and collective payment
basis. In this regard, I
also agree with Mr Vorster SC who pointed out that the pleadings are
devoid of an iota of evidence which
indicate that the First
Respondent was even aware that the Applicant made the various payment
relied on by Mr Karuaihe for purposes
of this argument rooted in
s
14(1)
of the
Prescription Act.
[65
]
For all these reasons, the Applicant has failed to establish facts
from which it may be justifiably
found that
s 13(2)
or
s 14(1)
of the
Prescription Act finds
application.
Costs
[66] There is
no reason why costs ought not to follow the result. At the hearing,
the debate was on the scale to be
ordered for counsel’s fees.
Mr Vorster SC contended that Scale C ought to be used because he is a
silk and a costs’
creditor ought not to be unnecessarily out of
pocket with counsel’s fees. Mr Karuaihe, on the other hand,
contended that
Scale B was more appropriate in the circumstances of
this case. He argued that the issues at stake in the application
viewed as
a whole were not complex at all, or that any complexity it
may have was not of such a nature as to warrant senior counsel. I
agree.
[67]
The First Respondent litigated in luxury by appointing a silk, and
then too appointing one from
another Province, thereby increasing his
costs even further. This matter was relatively uncomplicated: it
concerned a run-of-the
mill application to enforce compliance with
the provisions of a deed of alienation concerning certain land. On
the pleadings read
as a whole, there were no issues raised which were
of such high complexity that it required the forensic skills or other
expertise
which a senior counsel ordinarily brings to bear on a
matter.
[68]
It would be unreasonable if the Applicant were saddled with increased
party-and-party costs which
could have been reduced by the First
Respondent appointing a suitably experienced junior counsel. Speaking
proverbially, litigants
ought to choose the right horse for the right
course. This was not done here. In the circumstances, counsel’s
fees shall
be allowed on tariff scale B.
Order
[69]
In the result, the following order is made:
[69.1] The
application is dismissed with costs. Counsel’s fees are allowed
on scale B.
F.
MOOSA
ACTING
JUDGE OF THE HIGH COURT
Appearances
For Applicant:
JRS Karuaihe
Instructed by:
JJV Attorneys Inc
For
First Respondent: J
Vorster SC
Instructed
by:
Faure & Faure Attorneys (Mr L Fortuin)
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