Case Law[2024] ZAWCHC 288South Africa
Infusion Social Club Camps Bay (Pty) Limited v Camps Bay Investment Trust (Pty) Limited and Another (20608/2024) [2024] ZAWCHC 288 (30 September 2024)
High Court of South Africa (Western Cape Division)
30 September 2024
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Infusion Social Club Camps Bay (Pty) Limited v Camps Bay Investment Trust (Pty) Limited and Another (20608/2024) [2024] ZAWCHC 288 (30 September 2024)
Infusion Social Club Camps Bay (Pty) Limited v Camps Bay Investment Trust (Pty) Limited and Another (20608/2024) [2024] ZAWCHC 288 (30 September 2024)
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sino date 30 September 2024
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case No.:
20608/2024
In the matter between:
INFUSION
SOCIAL CLUB CAMPS BAY (PTY)
Applicant
LIMITED
[Registration Number:
2023/782936/07]
and
CAMPS
BAY INVESTMENT TRUST (PTY)
First Respondent
LIMITED
[Registration Number:
2022/871627/07]
THE
SHERIFF OF THE COURT, CAPE TOWN,
Second Respondent
WEST
Date of hearing: 27
September 2024
JUDGMENT DELIVERED ON
30 SEPTEMBER 2024
GORDON-TURNER, AJ:
Introduction
1.
Until its ejectment on 23 September 2024,
the applicant was occupant of certain commercial premises being Shop
4, Central Parade,
Victoria Road, Camps Bay, Cape Town (
the
premises
). The applicant was
ejected from the premises, under a warrant of ejectment, by the
Second Respondent (
the Sheriff
)
pursuant to the judgment of and under an order granted by the
Honourable Justice Wille (
Wille J
)
on 11 July 2024 under case number 14487/2024 (
the
eviction order
) at the instance of the
first respondent.
2.
In
its notice of motion, the applicant seeks an urgent hearing and the
grant of orders, “
pending
the finalisation of the appeal process that the applicant is intent
upon exhausting
”
[1]
,
as follows:
2.1.
Suspending the warrant of ejectment issued
against the applicant pursuant to the eviction order and acted upon
by the Sheriff;
2.2.
Immediately reinstating the applicant into
the premises;
2.3.
Suspending the operation of the eviction
order; and
2.4.
Interdicting the respondents from executing
the eviction order;
3.
The relief has been sought on three court
days’ notice to the respondent.
4.
The application is opposed. Answering
and replying affidavits have been filed.
5.
Both the founding papers and the first
respondent’s succinct answering papers included a broad
reference to the papers that
had served before Wille J in the
eviction proceedings, in which the historic disputes between the
parties are set out in detail.
Given the very short notice
afforded to the first respondent (
the
respondent
), those detailed allegations
had not been repeated in the answering affidavit. Counsel for
the respondent, Mr Fehr, handed
up a copy of the court file under
cover of an identificatory affidavit from his instructing attorney,
and urged me to have regard
thereto.
6.
The historic disputes giving rise to the
eviction order are largely irrelevant to the issues I am required to
decide. Just
as much of the founding affidavit is devoted to
setting out those disputes, it is unnecessary to review the material
that underpinned
Wille J’s judgment: the present proceedings
are neither a review nor an appeal. However, there is force in
Mr Fehr’s
submission that I can usefully have regard to Wille
J’s reasons for the eviction order, as the learned Judge
summarised therein
the parties’ respective contentions
regarding prejudice either would suffer if the applicant continued to
occupy the premises,
or not. The same elements of prejudice are
relevant to evaluating the balance of convenience when considering
the interdictory
relief sought in the present application. Mr
Fehr provided me with a copy of Wille J’s reasons, without
objection by
the applicant.
7.
The Sheriff’s return of service on
the ejectment was not part of either party’s papers. The
Sheriff did not participate
in the proceedings.
Background to the
litigation
8.
On 4 March 2024 the applicant and the
respondent concluded a lease in respect of the premises as well as an
addendum to the lease
in terms of which the applicant would rent the
premises for the purposes of operating a restaurant and bar. In
effect the
applicant took over the premises from another occupant,
Firefly Café (Pty) Ltd (
Firefly
)
which had operated a café style restaurant at the premises. On
8 March 2024, the applicant concluded a sale agreement with
Firefly,
conditional upon the applicant acquiring security of tenure in the
premises. In terms of the sale agreement, the applicant
purchased
from Firefly business equipment in the premises, and undertook to
settle arrear rental due by Firefly to the respondent.
Pursuant
to an addendum concluded the same day, Firefly’s liquor licence
was to be transferred to the applicant, and
the payment terms for
acquisition of the movables were varied.
9.
On 1 March 2024 the applicant took
occupation of the premises.
10.
Disputes set in between the applicant and
the respondent from early March 2024.
11.
On 5 April 2024 the applicant perceived
that locks were changed at the premises preventing applicant from
having access to the premises.
The applicant brought a spoliation
application which was opposed by the respondent, and heard on 2 May
2024 by Ndita J. The
application was granted in favour of the
applicant on 9 May 2024.
12.
Thereafter the respondent forewarned the
applicant that it was taking steps to have the applicant ejected from
the premises without
prejudice to its rights to claim damages for
holding over. The respondent delivered the eviction application on 26
June 2024. It
was heard by Wille J on 10 July 2024. Judgment in
favour of the respondent was granted on 11 July 2024.
13.
The eviction order provided that the matter
was determined to be an urgent one. It confirmed the valid
cancellation of the lease
agreement (with the addendum) concluded
between the parties dated 4 March 2024. The applicant and all
those holding under
it were ordered to vacate the premises and
restore full and complete possession of the premises to the
respondent by no later than
17h00 on 26 July 2024 (i.e. 15 calendar
days after the grant of the eviction order), failing which the
Sheriff was authorised to
evict on 27 July 2024.
14.
On 26 July 2024, the applicant delivered an
application for leave to appeal against the eviction order, running
to some ten pages.
15.
On 12 September 2024, Wille J heard the
application.
16.
The day before the scheduled hearing of the
application for leave to appeal, the applicant’s attorneys
addressed correspondence
to the respondent’s attorneys
recording that in the event that leave to appeal was refused, its
instructions were to petition
the Supreme Court of Appeal (
SCA
)
for leave to appeal. The applicant requested an undertaking
that the respondent would stay execution of the warrant of execution
“
pending the determination and
outcome of our anticipated petition to
[the
SCA]”. Failing such undertaking an urgent application for
interdictory relief would be brought. The respondent
was reminded
that as an appeal had been noted the provisions of section 18(1) of
the Superior Courts Act 10 of 2013 (
the
Act
) were of operation.
17.
The respondent’s attorneys replied on
11 September that the respondent refused to furnish the undertaking
to stay execution.
The respondent’s attorney recorded:
“
...
as soon as Judge Wille refuses your
client’s leave to appeal there is no pending appeal suspending
the operation and execution
of the eviction order and, thus, our
client will be entitled to execute the order as it intends to do.
Any urgent application
seeking to suspend the operation of the
order without a petition to the SCA would not be based on any legal
right and our client
would oppose such application.
Finally
we note that in terms of section 18(1) and 18(3) of
[the
Act],
our client is entitled to pursue
an application to enforce an order even if there is a pending
petition to the SCA (and even before
such petition is made) and we
are instructed that our client would consider pursuing such
application as a counter-application
to any ill-conceived urgent
application your client may bring.”
18.
The applicant’s attorneys addressed a
further letter to the respondent’s attorneys on 13 September
2024 (while judgment
on the leave to appeal application was still
awaited from Wille J) denying the respondent’s accusations that
it was abusing
the process of court, referring to the respondent’s
refusal to provide an undertaking to stay execution pending a
petition
to the SCA, and decrying this as “
an
inherent departure from the provisions and intent of Section 18(1) of
[the Act]”. The applicant
contended that it was incumbent upon the respondent to institute an
application under section
18(3) of the Act. The respondent was
requested to reconsider its position so that an application (such as
the present matter)
could be avoided, failing which punitive costs
would be sought against the respondent. No response was
forthcoming.
19.
Thus were the battle lines drawn.
20.
On 20 September 2024 Wille J handed down
judgment refusing leave to appeal (
the
refusal order
).
21.
The same afternoon the applicant served an
urgent application under case number 20543/2024 upon the respondent
seeking a stay of
execution, as had been forewarned in their
correspondence. In the respondent’s answering affidavit
those proceedings
were characterised (like the present application)
as “
an abuse of process with an
ulterior motive aimed at, amongst others, extending its presence on
the Premises
”.
22.
In
a sharp change of tactics, instead of opposing that application, the
respondent caused the Sheriff to attend at the premises
the very next
day, Saturday 21 September 2024. Counsel for the applicant, Mr Seale,
appearing with Mr Zazeraj, repeatedly emphasised
that the effecting
of an ejectment on a Saturday is unusual. That may well be so,
but service of court process on a Saturday
is permissible.
[2]
The applicant’s attorneys advised the Sheriff of the
applicant’s intention to apply for leave to appeal and drew
attention to section 18(1) of the Act. After intervention by
members of the South African Police Services, the Sheriff desisted
from the ejectment, but only until Monday 23 September 2024,
when the ejectment of the applicant was effected. The
applicant
withdrew its first application (as having been overtaken by events),
and thereafter the present application was delivered.
This
application, so I was advised by counsel, is substantially similar to
the withdrawn application save that relief is
now sought for
reinstatement of occupation of the premises.
The case on the
papers and the case in argument
23.
The cases presented in the parties’
respective affidavits can be summarised thus:
23.1.
The respondent adopted the position that
unless and until the applicant applied to the SCA for leave to appeal
against the eviction
order, effect should be given thereto.
23.2.
The
applicant’s retort, in effect, was that the correspondence
directed to the respondent’s attorneys has the effect
of
‘noting an appeal’, which by operation of section 18(1)
of the Act
[3]
suspends the
eviction order. The applicant contends that it was incumbent
upon the respondent to apply for an order in terms
of section 18(3)
of the Act
[4]
for leave to
execute the eviction order, pending the appeal that the applicant is
intent upon prosecuting.
23.3.
The respondent opposed the application on
the basis that the relief sought is incompetent, for the following
reasons:
23.3.1.Urgency
has not been established;
23.3.2.The
applicant has already been evicted in terms of a lawful court order
which was not suspended in terms of Section 18(1)
of the Act;
23.3.3.There
is no prayer to set aside the eviction order or the execution thereof
– which could only be granted if there
is a reviewable
irregularity in the process, which is not the applicant’s case;
23.3.4.There
are no legal grounds for reinstating the applicant in the premises;
23.3.5.The
requirements for an interim interdict have not been satisfied: the
applicant has no clear or even
prima
facie
right to the relief sought, and
the applicant has an alternative remedy, which it has chosen not to
use, viz applying for leave
to appeal to the SCA; and
23.3.6.The
applicant is endeavouring to re-litigate the matter without
appealing.
23.4.
The respondent contends that the
application is abusive and vexatious and seeks its dismissal with a
punitive costs order.
24.
During the course of argument the parties’
respective positions evolved to the following:
24.1.
Mr Seale agreed that ‘noting’
an appeal via correspondence does not suffice for purposes of an
automatic suspension
of an order pursuant to section 18(1) of the
Act. This concession was correctly made in view of the express
provisions of
section 18(5) of the Act:
“
(5)
For the purposes of subsections (1) and (2), a decision becomes the
subject of an application
for leave to appeal or of an appeal, as
soon as an application for leave to appeal or a notice of appeal is
lodged with the registrar
in terms of the rules.
”
24.2.
Mr Seale’s concession diverges from
the position set out in the applicant’s affidavits summarised
above. Mr Fehr
submitted that the applicant must be held to the
case set out in its founding papers – this is correct only in
regard to
factual allegations. The Court applies the law, not
what a deponent mistakenly believes the law to be.
24.3.
Mr
Seale confirmed that the applicant’s application to the SCA
(
petition
)
was in the process of being drafted, that the applicant was committed
to delivering it (within the one month time limit permitted
by
section 17(2)(b) of the Act),
[5]
and that, for purposes of securing the relief sought in this
application, the applicant would accede to an order compelling the
lodging of its petition on an earlier date to be determined by this
Court.
24.4.
He conceded that, as pointed out by Mr Fehr
and the Court, the relief sought in the notice of motion “
pending
the finalisation of the appeal process that the applicant is intent
upon exhausting
” did not limit
the suspension of the eviction order only until the determination of
the petition. However, so submitted
Mr Seale, for purposes of
securing the relief sought in this application, the applicant will
accede to such a limit.
24.5.
Mr Fehr agreed that as soon as the
applicant lodged its petition, the eviction order would be suspended
by operation of section
18(1), so the relief sought in prayers 2, 4
and 5 of the notice of motion to stay the warrant, to stay the
operation of the order
and to interdict its execution would be
afforded to the applicant automatically by operation of law.
24.6.
The remaining point of contention between
the parties was the applicant’s desire to re-occupy the
premises, and to resume
trading pending the determination of its
petition, and the respondent’s steadfast resistance to
re-occupation of the premises
by the applicant. Lodging the
petition would not entitle the applicant to re-occupy, hence that
relief being sought in this
application. Mr Fehr submitted that
the respondent had not had an adequate opportunity to set out why
re-occupation was prejudicial
to the respondent – a factor
relevant to the balance of convenience when considering the interim
interdictory relief sought.
24.7.
The respondent maintained in the first
instance that there is no pending appeal at present, and the
application should be dismissed
with punitive costs, but as an
alternative, should the Court postpone the application with a set
timetable for the lodging of the
petition and the delivery of a
section 18(3) application by the respondent, then the respondent
undertook to leave the premises
vacant until the petition was
determined.
The ejectment: was
the respondent’s conduct lawful?
25.
The case argued on behalf of the applicant
was that the respondent had ‘stolen a march’ on the
applicant by executing
the eviction order with extraordinary
alacrity, and that by doing so in the face of the correspondence
exchanged between the parties,
it had acted improperly. This
improper conduct, so it was argued, rendered the execution unlawful.
26.
The argument was developed that the
applicant had a clear right to remain in occupation of the premises
pending its appeal process,
that this right had been infringed by the
eviction, that the applicant was suffering ongoing and irreparable
harm, (trading losses
and reputational damage), that no satisfactory
alternative remedy exists, and accordingly the applicant is entitled
to interdictory
relief and to restoration of the
status
ante quo
, namely restoration of its use
and possession of the premises.
27.
The premise of the applicant’s case
is the alleged impropriety of the ejectment effected under the
eviction order. In
essence, the applicant is aggrieved that it
was outmanoeuvred by the respondent’s change of tactics from
that indicated in
its correspondence to one of summarily
ejecting the applicant prior to it being able to apply for suspension
of the eviction order.
28.
In
developing the case of improper conduct, the applicant’s
counsel relied upon the judgment of Rogers J (as he then was)
in the
full bench decision of this Court in
P v
P
,
[6]
in which the Court roundly disapproved the conduct of a litigant who
conducted himself as if the order in his favour was operative
in
circumstances where an application for leave to appeal had been
lodged, of which he knew, or of which he had constructive
knowledge.
[7]
28.1.
The full bench in
P
v P
was determining an appeal by
the mother of three minor children against an order awarding their
primary care to their father,
and authorising him to relocate the
children to Alaska. Leave to appeal had been refused to the
mother by the court of first
instance. She applied to the SCA
for leave to appeal, which was granted, hence the full bench hearing.
28.2.
During the interval between being refused
the first application for leave and the mother receiving leave from
the SCA, the father
planned and executed the removal of the children
to Alaska. By the date of their removal the application to the
SCA had been
lodged, which had the effect of suspending the order by
the court of first instance. The full bench held that father’s
conduct was unlawful.
28.3.
The mother successfully applied for an
order that the children be repatriated to South Africa, and was
awarded punitive costs by
Cloete J. On this, Rogers J held:
“
[39]
The punitive costs order was fully justified.
Alan claimed that he was not aware, when he and the children left
South Africa on
22 April, that the petition had been lodged with the
SCA on 18 April. In terms of
s 18(5)
of the
Superior Courts Act 10 of
2013
, a decision only becomes the subject of an application for leave
to appeal when the application is lodged with the registrar. In
the
present case SPA for some reason did not immediately lodge the
founding papers in the petition with the SCA registrar. Instead
they waited for the exchange of affidavits to be completed, in
accordance with the agreed timetable, before sending complete sets
of
the papers to Bloemfontein.
[40]
Nevertheless, Alan knew that for all practical purposes an
application for leave to appeal was
pending. After all, he
filed his opposing affidavit on 10 April, and his attorneys received
Ann’s replying affidavit
on 16 April. He must have known
that Ann and her attorneys were working on the basis that the
application for leave to appeal
was pending and were quite possibly
under a misapprehension that service on Alan’s attorneys was
sufficient in law to achieve
this result. Given the earlier
correspondence,
Alan and SIA must
have known that if Ann and SPA believed Alan to be at liberty to
relocate with the children because the SCA petition
had not as yet
been lodged with the registrar, they would have insisted on a further
undertaking or sought interim protection.
...”
(my underlining)
28.4.
The facts in the present matter are
distinguishable in that (1) at the moment that the ejectment took
place no appeal was pending
in the sense defined by
section 18
of the
SCA, whereas in
P v P
the
mother had already lodged her appeal at the moment the children were
removed from the country, and (2) that the full bench in
P
v P
found the father’s conduct to
be morally reprehensible as the matter concerned the interests of
minor children, which is
not a concern in this matter.
28.5.
However, in principle, the full bench’s
strong disapprobation of the father’s conduct (albeit
obiter
)
must inform the Court’s approach in this matter. A
compelling factor in
P v P
was that the father knew at all relevant times that the mother was
intent on petitioning the SCA – just as the respondent
in this
matter knew of the applicant’s intentions as early as 11
September 2024 both to lodge a petition to the SCA, and
to apply for
interim protection. The matters are similar in that the conduct
of the party who had been successful in the
first instance was
directed at exploiting a timing advantage and creating a
fait
accompli,
thereby thwarting the
suspension that would, absent this stratagem, protect the rights of
the unsuccessful party pending appeal.
On my reading of the
judgment, this stratagem attracted trenchant criticism by the full
bench.
29.
Despite the significant distinguishing
feature that an appeal is not yet pending in this matter, the
lawfulness of the respondent’s
conduct can be assessed through
another lens. The point of focus is the eviction order.
30.
As is the usual practice in eviction
matters, an opportunity was afforded to the applicant to vacate prior
to the engagement of
the Sheriff in the ejectment. The eviction
order provided for a period of 15 days. This accords with the
15 day period
allowed in Uniform
Rule 49(1)(b)
for bringing an
application for leave to appeal. The eviction order therefore
sensibly and fairly afforded the applicant
the opportunity to
deliberate if it wished to use its procedural rights to invoke an
appeal process, and to do so if so advised.
Up to the point
within the allowed interval for doing so, the applicant could (and
did) remain in occupation of the premises.
31.
When Wille J refused leave to appeal on 20
September 2024, he did not specify a similar
spatium
deliberandi
in the refusal order within
which the applicant’s appeal rights were to be exercised,
alternatively within which period the
applicant was to vacate.
However, Wille J’s silence on this aspect is not
reasonably interpreted as requiring
immediate
vacation by and authorising
immediate
ejectment of the applicant. The refusal order must be
interpreted against the background of the statutory framework and in
the context of Wille J’s earlier eviction order, in which
he took care to balance the respective rights of the parties.
No
wording in his refusal order suggests that Wille J diverged from this
position; nor, with respect could he have done so
given the
procedural rights afforded by the legislature in Section 18(1) of the
Act.
32.
I do not interpret the refusal order as
conveying any intention by Wille J to deprive the applicant of its
procedural rights. His
refusal order did not need to spell out
that the applicant enjoyed another
spatium
deliberandi
: this was necessarily
implied both by the structure of his antecedent eviction order and
the statutory provisions referred to.
33.
Section 18(1) of the Act cannot be
reasonably interpreted as authorising successful litigants to
immediately execute upon orders
so as to thwart the unsuccessful
litigant’s right of appeal and the concomitant protection of a
suspension of the order under
appeal.
33.1.
Section 17(2)(b) of the Act provides that
leave to appeal must be applied for within one month after the
refusal of leave. Clearly,
a petition cannot be filed with the
Registrar of the SCA in Bloemfontein, with all of the required
formalities and attachments,
immediately upon refusal of leave to
appeal.
33.2.
In section 18(3) of the Act, the
legislature provided a mechanism for the successful litigant
under
exceptional circumstances
to maintain
the operation of the order under appeal. That mechanism imposes
a heavy
onus
upon the successful litigant seeking an order that the order under
appeal is not suspended. That litigant must prove “
on
a balance of probabilities that he or she will suffer irreparable
harm if the court does not so order and that the other party
will not
suffer irreparable harm if the court so orders
”.
34.
Explaining
why the suspension of an order under appeal is necessary, the learned
author Erasmus
[8]
comments: “
the
purpose of this rule as to the suspension of a judgment on the noting
of an appeal is
to
prevent irreparable damage from being done to the intending
appellant
,
either by levy under a writ of execution of execution of the judgment
in any other matter appropriate to the nature of the judgment
appealed from”
.
(my underlining)
35.
The
SCA has held
[9]
that: “
The
immediate execution of a court order, when an appeal is pending and
the outcome of the case may change as a result of the appeal,
has the
potential to cause enormous harm to the party that is ultimately
successful”.
36.
The
very wording of sections 18(1) and 18(3) of the Act conveys the value
the legislature has placed upon a right of appeal
[10]
:
suspension of the order under appeal is automatic and the litigants
are restored to a position as if the order under appeal had
not been
granted; this differs only in exceptional circumstances where the
Court orders otherwise upon the successful party discharging
the
onus
upon
it. On execution orders granted under section 18(3), the SCA
has held
[11]
that “
A
further safeguard against the risk of harm being caused by an
execution order is the automatic right to an urgent appeal given
by s
18(4). Pending such an appeal, the statute expressly provides in
s18(4)(iv)that the operation of the suspension order is itself
suspended.
”
37.
The statutory regime is directed, as a
general rule, at preserving the
status
quo
prior to the grant of an order
under appeal, until such time as the litigants’ procedural
rights on appeal have been exercised.
This is the context in
which the respondent’s conduct must be evaluated.
38.
The respondent attempted to justify its
immediate ejectment of the applicant on two bases:
38.1.
The respondent alleges that the applicant
had tarried before bringing the leave to appeal application before
Wille J as part of
a strategy to protract its occupation of the
premises, and the respondent apprehended that this strategy would be
repeated. This
accusation is not borne out by the facts. The
applicant brought its (first) application for leave to appeal within
the prescribed
time limits. The respondent took no steps to enforce
the eviction order between 11 July 2024 and the hearing of the leave
to appeal
application on 12 September 2024. Immediately upon
the grant of the refusal order, the applicant took steps to protect
its
position pending the next application for leave to appeal, which
is in the process of being prepared, in order to lodge within the
prescribed time limits (or such shorter period as this Court may
direct).
38.2.
The respondent submits that the applicant
has poor prospects of success on appeal, a conclusion with which I
was urged to agree
by considering Wille J’s reasons for the
eviction order and his judgment on the leave to appeal application.
I decline
to make such a finding as it would be inappropriate
that I do so: such a finding is the prerogative of the judges of the
SCA assigned
to determine the applicant’s petition. Even
if it is found that the applicant has poor prospects on appeal, the
respondent
cannot now be judge in its own cause, assume that a
finding in its favour will be made, and act in a manner that subverts
the applicant’s
right to apply for leave to appeal.
39.
In my view, the respondent’s hasty
ejectment of the applicant is not justified. The respondent
knew that the applicant
intended to exercise its further right to
apply for leave to appeal, that the applicant had requested an
undertaking to maintain
the
status quo
to obviate the need to approach the
Court to do so, and that the applicant had, in fact, issued and
served such an application,
yet, in calculated fashion, the
respondent arranged and caused the ejectment of the applicant to
proceed within one court day of
the refusal order being granted. The
respondent thereby engineered a scenario where, due to the time that
would elapse before
a petition and an appeal (if any) was determined,
even if successful on appeal the applicant could be frustrated from
taking up
occupation because the respondent would have been able to
relet the premises. The speedy execution of the eviction order,
before the petition could be filed, was undoubtedly directed at
circumventing the applicant’s right to apply for leave to
appeal from the SCA, or at the very least, at rendering success on
appeal a pyrrhic victory. The respondent’s conduct
in
doing so was unlawful.
40.
I
emphasise that in making this finding, I do not suggest that
successful litigants are generally prohibited from executing upon
orders in their favour until the time limit within which an appeal
may be brought has expired. This must be decided on the particular
facts of each case. For example, an unsuccessful litigant may
have conveyed, in unequivocal terms, that it does not intend
to
pursue an appeal, in which event prompt execution of the order would
not be a frustration of its appeal rights, and would not
be
unlawful.
[12]
The
particular facts of this case, on the other hand, render the conduct
of the respondent unlawful.
The relief to be
granted
41.
Mr Seale submitted that the applicant had a
clear right to remain in occupation of the premises pending its
appeal process, and
it was upon this right that the applicant’s
claim to interdictory relief was based. Mr Fehr submitted on
behalf of
the respondent that if I found the applicant to enjoy a
clear right to undisturbed possession of the premises pending appeal,
I
would be making new law. I disagree.
42.
The undisputed facts are that the applicant
was in undisturbed and peaceful possession of the premises from 9 May
2024 (when the
spoliation by respondent was remedied) until 23
September 2024 (when the ejectment at the instance of the respondent
took place).
43.
I have found the conduct of the respondent
in causing the ejectment to take place, in the particular
circumstances of this matter,
to be unlawful.
44.
The
Court bears the duty to ensure that both procedural and substantive
justice is served. That is not a novel concept. Even in
adversarial
litigation such as the present matter, litigants must conduct
themselves with due regard to the procedural rights of
their
adversaries, and when, by design, they fail to do so, they may be
acting unlawfully, which the Court is entitled, indeed
enjoined, to
redress. As held by the Navsa JA,
[13]
“
The
principle of legality, a cornerstone of the Constitution, applies to
government and governed alike.
”
45.
Our
Courts do not passively accept a
fait
accompli
engineered by a litigant. For example, where building works
take place unlawfully, demolition of the works
[14]
is ordered.
46.
Similarly, the Court enjoys the power to
unravel the unlawful conduct of the respondent, and, pending the
filing of its petition
to the SCA, to restore to the applicant
undisturbed possession of the premises as enjoyed prior to the
ejectment. This I
intend to order.
47.
Mr Fehr submitted that account should be
taken of prejudice to the respondent in the event of the applicant
re-occupying the premises.
The Court hearing an
application under section 18(3), and not this Court, should evaluate
the allegations regarding
prejudice to the respondent. In the
reasons for the eviction order, prejudice to the respondent was
described as
potential
loss of business of other tenants,
exposure
to liability against other tenants who may have been entitled to
cancel their lease agreements with the respondent, and loss of
insurance cover over the building in which the premises are situated
(my italics). Two of these elements are framed in tentative
terms, and all fall short of Wille J finding irreparable harm to the
respondent or that exceptional circumstances exist (which
he was not
required to determine in the eviction proceedings). Requiring
this Court make such findings, without full papers
from both parties
dealing with all the requirements under section 18(3), is to subvert
the statutory provisions governing appeals.
48.
Mr
Seale submitted that the Court can locate its power to suspend the
eviction order, and with it the power to restore possession
of the
premises to the applicant, in Rule 45A.
[15]
Mr Fehr correctly submitted that Rule 45A relates to the
staying of orders and the execution of orders rather than the setting
aside of orders duly executed. Regarding the setting aside of
orders, he referred to the judgment in
Brummer
v Gorfil Brothers Investments (Pty) Ltd
[16]
in which Spoelstra J held that where execution has already been
completed (as it has in this case) the court can only interfere
if
there was a reviewable irregularity in the process which prejudiced
the debtor and ulterior motives or hidden agendas become
irrelevant.
That judgment pertained to an attempt to set aside a sale in
execution of the plaintiff’s right, title
and interest in a
pending action before the court so as to deprive the debtor of the
right to proceed with his action. Spoelstra
J declined to
assist the plaintiff because the rights of other persons – the
purchasers at the sale in execution - were involved.
He found
that the rights of the parties had altered as a result of the sale of
the right at an auction and the matter did
not merely involve the
stopping of a process without the alteration or deprivation of any
existing rights of the parties.
49.
In this matter, the Court is not
constrained by any alteration of the parties’ respective rights
flowing from the ejectment
of the applicant.
50.
I have already found that the order was not
“duly” executed because the ejectment of the applicant,
in the circumstances
of this matter, was unlawful, and that
reinstatement will be ordered.
51.
The applicant has made it clear that, in
this application, it seeks only suspension, not setting aside of the
eviction order and
the warrant of execution.
52.
The
order for reinstatement to the premises obviates the conceptual
challenge of suspending steps that have already been executed,
including the ejectment of the applicant from the premises. This
problem was considered in
O’Sullivan
v Mantel and Another
,
[17]
the court holding
[18]
that
ejectment is not complete until the occupier and those claiming to
occupy through him as well as his belongings have been
removed and
the keys of the premises handed over to the execution creditor.
53.
The applicant’s prayers for
suspension of the warrant and suspension of the eviction order can,
however, sensibly be granted
if occupation of the premises is
restored.
54.
Apart
from the provisions of Rule 45A, the Court has an inherent discretion
to order a stay of a sale in execution and to suspend
the
operation of an ejectment order granted by it. It is a
discretion which must be exercised judicially but which is not
otherwise limited
[19]
.
In their commentary on Rule 45A, the learned authors Erasmus
et
al
of
Superior
Court Practice
point out that as a general rule a court will grant a stay of
execution where real and substantial justice requires such a stay
or,
put otherwise, where injustice will otherwise be done, such as where
the underlying
causa
of the judgment debt is being disputed or no longer exists, or when
an attempt is made to use for ulterior purposes the machinery
relating to the levying of execution. The underlying
causa
in this instance is intended to be the subject of an appeal; the
respondent has used the machinery of execution to stifle the efficacy
of prosecuting an appeal.
55.
The
general principles for the granting of a stay in execution were
summarized as follows in Gois t/a Shakespeare’s Pub
v Van
Zyl
[20]
:
“
(a)
A court will grant a stay of execution where real and substantial
justice requires it or where
injustice would otherwise result.
(b)
The court will be
guided by considering the factors usually applicable to interim
interdicts, except where the applicant is not
asserting a right, but
attempting to avert injustice.
(c)
The court must be satisfied that:
(i)
the
applicant has a well-grounded apprehension that the execution is
taking place at the instance of the respondent(s); and
(ii)
irreparable
harm will result if execution is not stayed and the applicant
ultimately succeeds in establishing a clear right.
(d)
Irreparable harm will invariably result if there is a possibility
that the underlying causa
may ultimately be removed, i.e. where the
underlying causa is the subject-matter of an ongoing dispute between
the parties.
(e)
The court is not concerned with the merits of the underlying
dispute—the sole enquiry
is simply whether the causa is in
dispute.”
56.
I am satisfied that, given what has
transpired to date, absent an order to stay the eviction order until
a petition is filed at
the SCA, (1) the applicant has a well-grounded
apprehension that the respondent may again attempt to execute an
eject the applicant
and (2) irreparable harm will result if execution
is not stayed and the applicant ultimately, upon appeal, establishes
a clear
right (under the lease agreement) to continue occupying and
trading at the premises. Real and substantial justice requires
a stay of execution and a suspension of the eviction order until the
applicant files its petition at the SCA, whereupon the protections
afforded by section 18(1) of the Act will come into operation.
57.
Similarly,
and taking account of the overlapping requirements for a stay under
Rule 45A, I am satisfied that the applicant has established
the
requirements for the grant of an interim interdict,
[21]
pending the filing of its petition to the SCA.
57.1.
I
emphasise that the right to be protected by the interdict is that of
possession of the premises that existed, as a fact, at the
moment of
respondent unlawfully executing the eviction order, and which is to
be restored by the order I intend to grant. In protecting
that
right
with an interdict, the Court is not making any finding in regard to
the respective rights of the parties arising from the lease
agreement
which is the subject of their disputes, and which will be the subject
of the intended appeal, in the event of leave being
granted to the
applicant. The interim interdict does no more than restore and
preserve the
status
quo
pending the determination of rights of the parties, and does not
involve or affect a final determination of these rights.
[22]
57.2.
The element of a well-grounded apprehension
of harm has been established.
57.3.
The applicant enjoys no satisfactory
alternative remedy: the respondent’s contention that the filing
of the petition affords
an alternative remedy is not an answer –
the applicant requires protection in the intervening period prior to
filing, by
reason of the respondent's conduct to date.
57.4.
In considering the balance of convenience,
I have weighed, among other factors already deliberated above, the
prejudice to the applicant
if the interdict is withheld against the
prejudice to the respondent if it is granted. The duration of
the interim interdict
is limited to the period up to filing of the
applicant’s petition to the SCA, at which point the respondent
can file an application
under section 18(3) of the Act (if so
advised). The balance of convenience favours the grant of the
interim interdict.
58.
Finally, I am satisfied that the applicant
could not be afforded substantial redress at a hearing in due course.
Much as the
correspondence and affidavits incorrectly set out
the legal position in certain respects, it was clear at all times
that the purpose
of this application was to restore and maintain the
status quo
until
such time as the applicant filed its petition to the SCA. This
necessarily required an urgent approach to this
Court.
59.
The applicant is entitled to a period of a
month (30 calendar days) from date of the removal order to lodge its
petition. Ten
days of that period have elapsed. The applicant
proposed that it file it be ordered to file its petition within ten
days of this
Court’s order, which amounts to 14 calendar days.
Although the six calendar day difference is not significant, as
the
applicant is prepared to commit to a shorter timeframe, this will
be so ordered.
60.
The applicant is entitled to costs as
following the result. The matter is not of such complexity as
to warrant the employment
of two counsel. For the reasons that
the respondent’s conduct has been criticised in this judgment,
punitive costs
are appropriate.
61.
I had intended to hand down this judgment
on Friday 27 September 2024 and so indicated to the parties. As
neither the Court
nor Mr Fehr had seen the applicant’s heads of
argument until the commencement of argument, Mr Fehr requested an
opportunity
to file written submissions in answer, particularly as he
perceived a shift in the applicant’s case. I granted him
leave to do so later that day. In the final result, I received
those submissions together with a legible electronic copy of
Wille
J’s reasons for the eviction order, by email after court hours.
I also received by email from the applicant’s
counsel a copy of
the applicant’s heads of argument. This was followed the
following morning by brief written submissions
in reply from the
applicant’s counsel. In the circumstances, the handing
down of judgment was delayed by another court
day until I had an
opportunity to assimilate all the submissions from counsel, which are
appreciated and have been of great assistance.
62.
I order as follows.
63.
Pending the lodging and institution
of the applicant’s petition to the Supreme Court of Appeal,
seeking leave to appeal the
judgment and order of the Honourable Mr
Justice Wille, under Case No: 14487/2024, dated Thursday, 11 July
2024 (“
the judgment under
appeal”
):
63.1.
The warrant of ejectment issued
against the applicant under case number 14487/2024 and acted upon by
second respondent is suspended;
63.2.
The applicant shall be immediately
reinstated into the premises it was ejected from on Monday, 23
September 2024, namely Shop 4,
Central Parade, Victoria Road, Camps
Bay, Cape Town;
63.3.
The operation of the judgment under
appeal is suspended; and
63.4.
The first and second respondents are
interdicted from executing upon the judgment under appeal.
64.
The applicant is ordered to lodge
and institute its petition to the Supreme Court of Appeal within a
period of ten (10) days from
the granting of this order.
65.
The first respondent is to pay the costs
of the application on an attorney and client scale, counsel’s
costs to be on Scale
C
.
GORDON-TURNER AJ
Appearances:
Counsel
for the Applicant:
Adv Mark Seale SC
Adv
Luke Zazeraj
Instructed
by:
Lauwrence De Swardt
LDS
Attorneys & Associates Inc
Counsel
for the First Respondent:
Adv Cei Fehr
Instructed
by:
S Krige & Mbongiseni Hlongwana
Werksmans
Attorneys
[1]
Further
attention is given to this wording below.
[2]
Rule 4(1)(c)
provides:
“
(c)
No service of any civil summons, order or notice and no proceedings
or act required in
any civil action, except the issue or execution
of a warrant of arrest, shall be validly effected on a Sunday unless
the court
or a judge otherwise directs.
”
[3]
The
section provides:
“
18
Suspension of decision pending appeal
(1)
Subject to subsections (2) and (3), and unless the court
under exceptional circumstances orders otherwise, the operation and
execution
of a decision which is the subject of an application for
leave to appeal or of an appeal, is suspended pending the decision
of
the application or appeal
.”
[4]
That section
provides:
“
(3)
A court may only order otherwise as contemplated in subsection (1)
or (2), if the party
who applied to the court to order otherwise, in
addition proves on a balance of probabilities that he or she will
suffer irreparable
harm if the court does not so order and that the
other party will not suffer irreparable harm if the court so
orders
.
”
[5]
Sec
17(2)
(b)
provides:
“
If
leave to appeal in terms of paragraph (a) is refused, it may be
granted by the Supreme Court of Appeal on application filed
with the
registrar of that court within one month after such refusal, or such
longer period as may on good cause be allowed,
and the Supreme Court
of Appeal may vary any order as to costs made by the judge or judges
concerned in refusing leave
.”
[6]
P
v P
[2020] 2 All SA 587
(WCC) (19 December 2019).
[7]
At para [28]
to para [42].
[8]
“
Superior
Court Practice
”
at page D-121.
[9]
Knoop
NO v Gupta (Execution)
2021
SA 135
(SCA) at 139 D.
[10]
The
statutory right of appeal
fleshes
out the
constitutional
right of access to courts:
“
34
Access to courts
Everyone
has the right to have any dispute that can be resolved by
application of law decided in a fair public hearing before
a court,
or, where appropriate, another independent and impartial tribunal
forum
.”
[11]
Knoop
NO v Gupta (Execution)
supra
at 139 I to 140 A.
[12]
See also
Janse
Van Rensburg v Obiang and Another
2022
JDR 2682 (WCC) at para [57] to para [60], and at para 65] to para
[67], where the conduct was being examined as potentially
contemptuous of a court order.
[13]
Van
Rensburg and Another NNO v Naidoo and Others NNO; Naidoo and Others
NNO v Van Rensburg NO and Others
2011 (4) SA 149
(SCA) at 162 H.
[14]
Van
Rensburg and Another NNO v Nelson Mandela Metropolitan Municipality
and Others
2008 (2) SA 8
(SE) at 11 H to 12 E, which was upheld on appeal in
Van
Rensburg and Another NNO v Naidoo and Others NNO; Naidoo and Others
NNO v Van Rensburg NO and Others
supra at 162 G to 163 A.
[15]
When
it was introduced by GN R1262 of 1991, it simply read “
The
court may suspend the execution of any order for such period as it
may deem fit.
”
The rule was substituted by way of an amendment in GN R1157 of 30
October 2020 which took effect from 1 December
2020 to read, with
the new wording underlined, as:
45A
Suspension of orders by the court
The court may
, on
application,
suspend the
operation and
execution of any
order for such period as it may deem fit:
Provided that in the
case of an appeal, such suspension is in compliance with section 18
of the Act.
”
[16]
1997
(2) SA 411 (T).
[17]
1981
(1) SA 664 (W).
[18]
Ibid
at 669
B; and see also 669 F.
[19]
Whitfield
v Van Aarde
1993
(1) SA 332
(E)
at
337F to G.
[20]
2011
(1)
SA 148 (LC).
In
Firm
Mortgage Solutions (Pty) Ltd v Absa Bank Ltd
2014
(1) SA 168
(WCC)
the
court, with reference to the
Gois
case,
stated the following (at 170F–G):
‘
It
is clear that what was intended in this case was that, where the
causa for the execution is a judgment, and the judgment is
placed in
dispute because an application for rescission has been brought,
grounds may well exist for the exercise of a favourable
discretion
by a court
.’
[21]
Eriksen
Motors (Welkom) Ltd v Protea Motors Warrenton and Another
1973
(3) SA 685
(A) at 691.
[22]
National
Gambling Board v Premier, Kwa-Zulu Natal and Others
[2001] ZACC 8
;
2002 (2) SA 715
CC at 730H to 731B.
sino noindex
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