Case Law[2025] ZAWCHC 502South Africa
Cambrig Holdings CC v SA Mr Smart Fashion Wholesalers and Retailers CC and Another (2024/145157) [2025] ZAWCHC 502 (27 October 2025)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Cambrig Holdings CC v SA Mr Smart Fashion Wholesalers and Retailers CC and Another (2024/145157) [2025] ZAWCHC 502 (27 October 2025)
Cambrig Holdings CC v SA Mr Smart Fashion Wholesalers and Retailers CC and Another (2024/145157) [2025] ZAWCHC 502 (27 October 2025)
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sino date 27 October 2025
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IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case No.:
2024/145157
In the matter between:
CAMBRIG
HOLDINGS
CC
Applicant
and
SA MR SMART FASHION
WHOLESALERS AND
RETAILERS
CC
First Respondent
ALL THOSE HOLDING OVER
UNDER THE FIRST
RESPONDENT
AND/OR OCCUPYING THE PREMISES
Second Respondent
CORAM: GOLDEN AJ
HEARD: 16 OCTOBER 2025
DELIVERED: 27 October
2025
ORDER
The application is
granted with costs.
JUDGMENT
GOLDEN AJ:
Introduction
1.
This is an application for the ejectment of
the first respondent and all those holding title under it from
commercial premises at
Erf 1[...], Bellville, situated at Charl Malan
Street, Bellville City Centre, Bellville (“
the
premises
”). The applicant
is the registered owner of the property and its claim for ejectment
is based on the
rei vindicatio
.
The first respondent opposes the application.
The background facts
2.
The applicant and the first respondent, Mr
Smart, represented by Mr Abdi Yusuf (‘Yusuf”) concluded a
written lease agreement
on 26 November 2010 (‘the written lease
agreement”) in terms whereof the applicant had leased the
premises to the first
respondent for the trade of a wholesale and
retail business. The express material terms of the written
lease directly relevant
to the application, are the following:
2.1
The lease would be for a period of 5 (five)
years, commencing on 1 April 2011 [clause 2];
2.2
The monthly rental would be R18 000.00
escalating annually by 10% payable in advance on or before the first
day of every month
without deduction [clause 3.1];
2.3
The
domicilium
citandi et executandi
of the first
respondent was the premises, together with the email address of
a[...] [clause 22];
2.4
The first respondent would have the option
to renew the lease agreement for a further 5 (five) years, provided
that 6 (six) months’
written notice is provided prior to the
termination date [clause 25.1]; and
2.5
Upon termination of the lease agreement,
whether by effluxion of time or by cancellation, the first respondent
would re-deliver
the leased premises to the applicant in good order
and condition, fair wear and tear excepted [clause 28].
3.
Mr Manfred Shevel (“Shevel senior”)
passed away in January 2016 whereafter his son, Mr Russel Shevel
assumed the operations
of the applicant.
4.
Russel Shevel, on behalf of the applicant,
delivered to the first respondent a notice to terminate the lease on
9 September 2024
as it intended to undertake a major renovation to
the building. The notice to terminate informed the first respondent
via Yusuf
that the renovations would begin on 1 November 2024 and
that the first respondent would need to vacate the premises on 31
October
2024.
The first respondent was given 53 (fifty-three)
days’ notice to vacate.
5.
The first respondent did not vacate the
premises which resulted in the applicant’s attorneys addressing
a letter dated 8 November
2024 to the first respondent which recorded
that the lease had terminated on 31 October 2024, the first
respondent was in unlawful
occupation of the premises and demanded
that it vacate by no later than 13 November 2024. The
letter recorded that the
applicant, as a gesture of goodwill, offers
to pay the first respondent an amount of R12 000.00 to assist it to
vacate the premises
by the said date.
6.
The respondents failed to vacate the
premises, which then resulted in the launch of this application on 6
December 2024.
The applicant’s
case
7.
The applicant alleges that the original
written lease agreement endured for a period of 5 years, commencing 1
April 2011 and that
it terminated with the effluxion of time on 31
March 2016. The first respondent had the option to renew the lease
for a further
5-year period which option had to be exercised in
writing, within 6 months of the termination date. This did not occur
but given
Yusuf’s desire to continue to occupy the premises
beyond the termination date, the parties concluded an oral
month-to-month
lease agreement.
8.
The month-to-month agreement, according to
the applicant, was the basis upon which the first respondent
continued to occupy the
premises.
9.
The applicant alleges that the
month-to-month agreement terminated on 31 October 2024,
alternatively, it cancelled the month-to-month
agreement when the
application was launched.
10.
It alleges that 53 days’ notice to
vacate the premises was reasonable and that the first respondent was
given additional time
hereafter.
The first respondent’s
case
11.
The first respondent opposes the
application on the basis that:
11.1
There is a binding lease agreement in
place, the extension whereof Yusuf had orally agreed with Shevel
senior between 1 October
2015 and January 2016 prior to his (Shevel
senior’s) passing. According to Yusuf, who deposed to the
answering affidavit
on behalf of the first respondent, this
effectively meant that the first respondent would be entitled to
lease the premises from
1 April 2016 to 31 March 2021 with
a further option to renew for the period 1 April 2021 to 31
March 2026 given
that the lease made provision for a renewal for a
further period of 5 (five) years. According to the first respondent,
the oral
agreement with Shevel senior was that it could continue to
occupy the premises on the same terms and conditions of the written
lease.
11.2
Given the oral agreement with Shevel senior
that the first respondent could continue to occupy the property for
as long as it wanted,
Russel Shevel had effectively agreed on the
applicant’s behalf that the first respondent could occupy the
premises until
31 March 2026.
11.3
The first respondent alleges that there was
no notice of cancellation addressed to it and its rights to occupy
the property has
therefore not been terminated.
11.4
The lease period was extended in the year
2021 to 31 March 2026, and for as long as the first respondent has
not breached the lease
agreement, the applicant cannot cancel the
lease which remains extant at least until 31 March 2026.
11.5
Accordingly, the first respondent denies
that it continues to occupy the premises in terms of a lease
agreement for an indefinite
period and on a month-to-month basis
subject to reasonable notice.
12.
The first respondent contends, to the
extent that the Court finds that the notice of cancellation was
properly delivered to it,
that 53 days’ notice was unreasonable
given that it had been trading at the premises for over 17 years.
It alleges
that it could not, after 17 years of trade, find a
suitable, comparable and profitable location for its business in 53
days and
that a “
poor and rushed decision
”
could lead to the collapse of its business and have serious
consequences for its staff.
Evaluation of the
facts
13.
Two important material common cause facts
are: i) that the written lease agreement ended by effluxion of time
on 31 March 2016,
and ii) the first respondent did not exercise the
option to renew the lease in terms of clause 25.1 thereof by giving
written notice
of a renewal for a five-year period.
14.
Clause 25.1 provides that:
25.1
At the termination of the main period of this Lease, the LESSEE shall
have the option to re-new the
Lease for a further period of five
years provided the LESSEE shall have given written notice of 6 (six)
months prior to the termination
date, of the LESSEE’S intention
to exercise such option
.
15.
The allegation that no proper notice to
vacate was given to the first respondent in that the notice was
addressed to Abdi Yusuf
t/a Mr Smart when Yusuf is not a sole
proprietor, is without merit. The cover page of the written lease
agreement itself expressly
records that the first respondent is
represented by Yusuf and clause 22 provides that any notice may be
given by way of email,
which [email] addresses the parties choose as
their domicilium address. But there is no dispute that the first
respondent had received
notice as the application itself evidences
this.
16.
That the lease was not terminated because
of a breach of the lease agreement is inconsequential to the outcome
of the application.
17.
It is clear on the facts that the
continuation of the lease agreement continued on a month-to-month
basis after the written lease
agreement terminated by the effluxion
of time on 31 March 2016.
18.
The first respondent’s position is
summed up in paragraph 18 of its answering affidavit. It alleges that
Yusuf had orally
agreed with Shevel senior that the first respondent
could continue to occupy the premises on the same terms and
conditions of the
written lease agreement. Yusuf then alleges in the
same paragraph that “
Effectively,
this meant that the first respondent would be entitled to lease the
premises from 1 April 2016 to 31 March 2021 with
a further option to
renew for the period 1 April 2021 to 31 March 2026
”.
In paragraph 20 he alleges that after Shevel senior’s passing,
he met with Russel Shevel who mentioned that the first
respondent
could occupy the premises for as long as it wanted and for as long as
it continues to pay rent. He alleges that “
Effectively,
Russel Shevel, on behalf of the applicant, permitted occupation by
the first respondent beyond 31 March 2026
”.
19.
The first respondent’s case is that
the lease period was extended beyond March 2016 and again in the year
2021 “
just as it was extended in
the year 2016
”. The import
of this allegation is that the lease period had been extended for the
period 1 April 2021 to 31 March
2026 based on an alleged conversation
Yusuf had with Russel Shevel which Yusuf had interpreted to mean that
the lease was extended
beyond March 2026. In other words, that the
second extension of the lease had been orally agreed with Russel
Shevel like it was
purportedly done with Shevel senior prior to his
passing. It is on this basis that the first respondent denies that
the lease continued
month-to-month as the lease was orally extended
for a further 5-year period from 1 April 2021 to 31 March 2026.
20.
The first respondent’s opposition is
without merit.
21.
It is not in dispute that no written
extension of the lease occurred when it terminated on 31 March 2016
and that the first respondent
did not exercise the option to renew
for a further 5-year period as required by the express terms of the
written lease. The parties
also did not conclude a further written
lease agreement after this time.
The fact that there may have
been an oral agreement between Shevel senior and Yusuf that the first
respondent may continue to occupy
the premises hereafter does not
detract from this position. It is difficult to advance this position
further given that the first
respondent had not placed anything
before the Court to corroborate that it may have been anything more
than this. All that the
first respondent relies upon is an alleged
oral agreement between Shevel senior and Yusuf. No details of the
discussion are given
as to the place of the conversation, whether an
increased rental was agreed or whether it was agreed that it would be
for 5 years
as contemplated in the written lease agreement.
22.
Assuming that the court were to accept the
first respondent’s version that the lease was orally extended
between Yusuf and
Shevel senior on the same terms and conditions as
the written lease which endured until notice was given to vacate,
then it must
follow that the first respondent had to exercise its
option to extend the lease in terms of the provisions of the written
lease
which required it to give written notice of the extension 6
months prior to the end of the lease term. Written notice would have
had to be given to Russel Shevel for the second alleged 5-year
extension until March 2026. On the first respondent’s own
version, this was not done. But even if the court were to accept the
first respondent’s version that the lease was extended
“
just
as it was extended in the year 2016
”
until March 2026, then the first respondent had to at least have
orally communicated this extension to Russel Shevel, which,
on its
own version, it also did not do. All the first respondent alleges is
that Yusuf met with Russel Shevel after his father’s
passing
(the first respondent does not say when) and that Russel Shevel
mentioned that for as long as the first respondent continues
to pay
rent, it could continue to occupy the premises for as long as it
wanted. Although Russel Shevel admits that he and Yusuf
met, they
only exchanged pleasantries and did not discuss the terms of the
lease.
23.
The first respondent also does not rely on
either an express or tacit extension of the lease, in respect of both
extensions. It
seeks to rely on what “
effectively
”
the alleged oral exchanges with Shevel senior and Russel Shevel meant
in relation to the extension of the lease.
24.
Even if I were to give the first respondent
the benefit of the doubt that the lease was orally extended between
him and Shevel senior
beyond March 2016 to March 2021 on the same
terms and conditions of the written lease agreement, the lease made
no provision for
a second
5 - year renewal period from
March 2021 until March 2026, nor can this be imported into the terms
of the lease agreement. The express
terms of the written lease
agreement did not make provision for a second 5-year extension to
March 2026. The first respondent’s
version that the lease had
been extended until March 2026 is not borne out by the facts and is
also implausible.
25.
Thus, the undisputed facts show that: i)
the option to renew for a 5-year period until March 2021 was not
validly exercised in terms
of the provisions of the written lease;
ii) even if there was an [oral] extension of the lease for 5 years to
March 2021, there
was no option to renew for a second 5-year period
from March 2021 to March 2026, and iii) the first respondent did
nothing to convey
to Russel Shevel, whether in writing or otherwise,
that it wanted to extend the lease for a further 5-year period to
March 2026.
The legal consequence of this is that the
lease could only have continued month-to-month post March 2021
(giving the first respondent
the benefit of the doubt that the lease
was validly extended for 5 years from March 2016 to March 2021) until
it was terminated.
Thus, the duration of the lease was no longer for
a fixed term, at least not from April 2021, notwithstanding that it
may have
been implemented on the same terms and conditions as the
written lease agreement. (
Airports Company South Africa Ltd v
Airport Bookshops (Pty) Td t/a Exclusive Books
2017 (3) SA 128
(SCA) at paragraph [17]). Having concluded that it was a
month-to-month lease from at least 1 April 2021, it follows that the
lease must be terminated on reasonable notice (
ACSA
at
paragraphs [18] – [20]).
26.
The applicant as the owner and landlord of
the commercial premises was entitled in terms of the common law to
terminate the lease
on reasonable notice. This occurred when the
applicant gave the first respondent notice to vacate on 9 September
2024.
27.
The first respondent contends that 53 days’
notice was unreasonable for reasons that it had occupied the premises
for many
years and cannot be expected to find suitable, comparable
and a profitable location for its business within 53 days. It alleged
that a “
poor and rushed decision
could lead to the collapse of the first respondent
.”
While the Court is sympathetic with the first respondent’s
position and its staff (almost all cases involving
ejectment from
commercial premises involve businesses with staff), the difficulty is
that the first respondent did not make any
effort to place before the
court any evidence of the commercial rental market in the area where
it trades or in the surrounding
area to show what rental space is
available, at what price, and how the location of what is available,
would impact the first respondent
as a business. The allegations upon
which it relies are vague and unsatisfactory. It was incumbent upon
the first respondent to
cogently set out why it believed the notice
period was unreasonable, which it failed to do.
28.
Even if I were to find that 53 days’ notice was
unreasonable given the duration for which the first respondent had
occupied
the premises, the complaint that it was afforded
unreasonable notice has been overtaken by the passage of time. The
notice period
to vacate was also extended as the
first
respondent was ultimately afforded until 13 November 2024 to vacate,
which amounted to more than two months’ notice.
29.
The first respondent continues to occupy the premises and did
so still at the time when the application was heard on 16 October
2025. It has effectively had the benefit of an extended occupation of
more than a year to source alternative trading premises as
it knew
all along that its occupation was tenuous. The complaint of
unreasonable notice has clearly become moot given the considerable
time which the first respondent has had which it was able to leverage
while the application was being prosecuted.
30.
The applicant gave the first respondent
notice to vacate the premises on 9 September 2024, more than a year
ago. It is
entitled to the cancellation of the month-to-month
lease agreement and to an ejectment order. The first respondent has
no right
to continue to occupy the premises.
31.
Whilst there was no breach of the lease on the part of the
first respondent, it elected to oppose the application based on
unsupported
and uncorroborated allegations of a further 5-year
extension of the lease until March 2026. The allegations surrounding
the unreasonableness
of the notice period were bald and
unsubstantiated. Through its opposition the first respondent had
effectively secured for itself
an additional year to continue to
occupy the premises in circumstances when it had no factual or legal
basis to do so. The only
conclusion which the court can reasonably
draw from this conduct is that the first respondent sought to benefit
from an extended
period of occupation and sought to deliberately
delay its ejectment in circumstances where the applicant had
ultimately given it
reasonable notice to vacate. This conduct
warrants a punitive costs order.
32.
I note that the applicant had also agreed to reduce the first
respondent’s rental in May 2023 when the first respondent had
experienced financial difficulty
and that it had
also offered the first respondent financial assistance to vacate the
premises.
33.
The following Order is granted
.
ORDER
:
(a) The lease
agreement entered between the applicant and the first respondent in
respect of the lease of commercial
premises at Erf 1[...] Bellville,
known as Shop 42(a), 42 Charl Malan Street, Bellville City Centre,
Bellville (‘the premises”)
is cancelled.
(b) The First
and Second Respondents are ordered to vacate the premises by
1
December 2025
, failing which the Sheriff, or his lawfully
appointed deputy, is authorised and directed to do all things
necessary to eject the
respondents from the aforesaid premises.
(c) The first
respondent shall pay the costs of this application on the scale as
between attorney and client.
TJ GOLDEN
Acting Judge of the
High Court of South Africa
Western Cape Division,
Cape Town
APPEARANCES:
For the
Applicant:
Adv J Hamers
Instructed
by:
Ashersons Attorneys
(Per:
A Goldschmidt)
For the Respondents:
Adv M Karolia
Instructed
by:
Shaheed Dollie Inc
(Per:
J Seedat)
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