Case Law[2025] ZAGPJHC 60South Africa
Trustees for Time Being of Mlanduli Residence Trust v Noordman and Others (095370/23) [2025] ZAGPJHC 60 (27 January 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
12 January 2024
Headnotes
as follows: ‘It is clear that the threshold for granting leave to appeal against a judgment of a High Court has been raised in the new Act. The former test whether leave to appeal should be granted was a reasonable prospect that another court might come to a different conclusion, see Van Heerden v Cronwright & Others 1985 (2) SA 342 (T) at 343H. The use of the word “would” in the new statute indicates a measure of certainty that another court will differ from the court whose
Judgment
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## Trustees for Time Being of Mlanduli Residence Trust v Noordman and Others (095370/23) [2025] ZAGPJHC 60 (27 January 2025)
Trustees for Time Being of Mlanduli Residence Trust v Noordman and Others (095370/23) [2025] ZAGPJHC 60 (27 January 2025)
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sino date 27 January 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO:
095370
/23
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
In the matter between:
THE TRUSTEES FOR THE
TIME BEING OF THE
MLANDULI RESIDENCE
TRUST, IT409/2013
Applicant
AND
OTTILE
ANTON NOORDMAN N.O.
First Respondent
DONOVAN THEODORE
MAJIEDT N.O
Second Respondent
THE CITY OF
JOHANNESBURG
METROPOLITAN
MUNICIPALITY
Third Respondent
JUDGMENT
THIS
JUDGEMENT HAS BEEN HANDED DOWN REMOTELY/ELECTRONICALLY AND SHALL BE
CIRCULATED TO THE PARTIES BY WAY OF E- MAIL/ UPLOADING
ON CASELINES
AND/OR COURT ONLINE. ITS DATE OF HAND DOWN SHALL BE DEEMED TO BE
JANUARY 27, 2025
Introduction
1.
This matter appeared before me on January 14, 2025 as an application
for Leave to Appeal against judgment dismissing application
for
postponement.
2.
On November 26, 2024, Applicant applied for postponement of the
hearing, and this was opposed by the Respondents. I then
issued an
order
ex tempore
dismissing the postponement application and
granted the order in terms of draft order marked “X” as
prayed for in the
notice of motion. Reasons for the decision were
delivered on December 18, 2024.
3.
Applicant’s grounds of appeal are as follows:
3.1 The court erred
in failing to take notice of the applicant’s notice of
intention to oppose delivered in the application
for eviction, which
notice was duly delivered on 12 January 2024. This is in
circumstances where:
3.1.1
Counsel for the applicant appeared in the unopposed motion court to
address the court and inform that
there is a pending application to
compel discovery in terms of Rule 35(7) of the Uniform Rules of Court
(“the Rules”).
3.1.2
The learned judge erred in not having regard to the factual
submission made and erred in granting
the order stating that there is
no application for postponement before the court by the applicant.
3.2 In concluding
that there is no application for postponement by the applicant before
the court, the court misdirected itself
as there is no need for such
application in the High Court. It, however, appears that the court
mistakenly had regard to Rule 31
of the Magistrate’s Court
Rules.
3.3 The court erred
in failing to have regard to the applicant’s notice in terms of
Rule 35(14), followed by an application
to compel discovery in terms
of Rule 35(7). This is in circumstances where:
3.3.1 The applicant duly
delivered a notice in terms of Rule 35(14) on 26 January 2024.
3.3.2
Failing to make discovery, the respondent delivered a notice in terms
of Rule 30, on 4 April
2024, alleging that the provisions of Rule
35(14) do not apply to application proceedings.
3.4 On 2 September
2024, the applicant duly delivered its application to compel
discovery in terms of Rule 35(7) of the Rules.
3.5 Without having
regard to the applicant’s application to compel discovery and
with no notice of intention to oppose,
the respondent simply ignored
the steps taken in these proceedings by the applicant and enrolled
the main application for hearing
in the unopposed court.
3.6 It is trite
that the time for the delivery of an answering affidavit is suspended
if a notice in terms of Rule 35(14)
is delivered, followed by an
application to compel compliance with the notice.
3.7 The Court to
have regard to the notice in terms of Rule 35(14), followed by an
application to compel discovery in terms
of the notice, and in doing
so, encroached on the applicant’s right to a fair hearing. The
applicant was further prejudiced
in that the court, by granting the
order on an unopposed basis, took away the applicant’s right to
deliver an answering affidavit.
3.8 The applicant
is prejudiced in that the applicant is prevented from launching a
counter application. The applicant’s
counter application is of
paramount importance insofar as the Court could have cancelled the
sale agreement as the applicant expended
no less than R4 000 000.00
in respect of the property in question.
3.9 The court erred
in finding that it could proceed to grant an order on an unopposed
basis, having regard that the respondent
delivered a notice in terms
of Rule 30 of the Rules, alleging that the applicant took an
irregular step. This notice in itself
should have informed the court
that there are pending interlocutory steps taken by the respondent
which have not been brought to
finality.
3.10 It is trite
that the respondent’s proper course where any proceeding in a
cause is irregular is not to proceed
as if there had been no such
proceeding at all but to apply to the court under the subrule for an
order setting aside the irregularity.
Legal Principles on Leave
to Appeal
4.
The Supreme
Court of Appeal in Goosen and Others v Mont Chevaux Trust
[1]
stated that:
“
The appeal to
this court, however, is subject to all the limitations applicable to
appeals. The appeal is, for instance, limited
to the grounds that
were raised in the notice of appeal, must be decided only on the
appeal record…
”.
[2]
5.
Regarding Leave to Appeal,
section 17(1)
of the
Superior Courts Act
No. 10 of 2013
provides that:
“
17(1) Leave to
appeal may only be given where the judge or judges concerned are of
the opinion that-
(a)
(i) the appeal would have a reasonable prospect of success; or
(ii) there is some
other compelling reason why the appeal should be heard, including
conflicting judgments on the matter under consideration;
(b)
the decision sought on appeal does not fall within the ambit
of
section 16(2)(a)
; and
(c)
where the decision sought to be appealed does not dispose of all
the issues in the case, the appeal would lead to a just and prompt
resolution of the real issues between the parties.
”.
6.
In Acting
National Director of Public Prosecutions and Others v Democratic
Alliance and Others
[3]
the court
followed the Land Claims Court judgment in Mont Chevaux Trust
(IT2012/28) v Tina Goosen & 18 Others
[4]
and stated that:
“
The
Superior
Courts Act has
raised the bar for granting leave to leave in The Mont
Chevaux Trust (IT2012/28) v Tina Goosen & 18 Others, Bertelsmann
J held
as follows
:
‘
It is clear
that the threshold for granting leave to appeal against a judgment of
a High Court has been raised in the new Act. The
former test whether
leave to appeal should be granted was a reasonable prospect that
another court might come to a different conclusion,
see Van Heerden v
Cronwright & Others
1985 (2) SA 342
(T) at 343H. The use of the
word “would” in the new statute indicates a measure of
certainty that another court will
differ from the court whose
judgment is sought to be appealed against
’...”.
[5]
7.
The court
in Acting National Director of Public Prosecutions and Others v
Democratic Alliance and Others
[6]
further stated that:
“
When the Court
deals with an application for leave to appeal, leave may only be
given if we are of the opinion that the appeal would
have reasonable
prospects of success or if there are some other compelling
reasons
”.
[7]
7.1
In Cook v
Morrison
[8]
the Supreme Court of
Appeal stated that:
“
The existence
of reasonable prospects of success is a necessary but insufficient
precondition for the granting of special leave.
Something more, by
way of special circumstances, is needed. These may include that the
appeal raises a substantial point of law;
or that the prospects of
success are so strong that a refusal of leave would result in a
manifest denial of justice; or that the
matter is of very great
importance to the parties or to the public. This is not a closed
list
”.
[9]
8.
In MEC for
Health, Eastern Cape v Mkhitha and Others
[10]
,
the Supreme Court of Appeal followed the decision of S v Smith
[11]
and stated that:
“
Once again it
is necessary to say that leave to appeal, especially to this court,
must not be granted unless there is a reasonable
prospect of success.
Section 17(1)(a)
of the
Superior Courts Act 10 of 2013
makes it clear
that leave to appeal may only be given where the judge concerned is
of the opinion that the appeal would have a
reasonable prospect of
success; or there is some other compelling reason why it should be
heard.
An applicant for leave
to appeal must convince the court on proper grounds that there is a
reasonable prospect or realistic chance
of success on appeal. A mere
possibility of success, an arguable case or one that is not hopeless,
is not enough. There must be
a sound, rational basis to conclude that
there is a reasonable prospect of success on appeal
”.
[12]
9.
Also, in
Ramakatsa and Others v African National Congress and Another
[13]
the Supreme Court of Appeal stated that:
“
Turning the
focus to the relevant provisions of the
Superior Courts Act&hellip
;,
leave to appeal may only be granted where the judges concerned are of
the opinion that the appeal would have a reasonable prospect
of
success or there are compelling reasons which exist why the appeal
should be heard such as the interests of justice. This court
in
Caratco
[14]
,
concerning the provisions of s 17(1)(a)(ii) of the SCA Act pointed
out that if the court is unpersuaded that there are prospects
of
success, it must still enquire into whether there is a compelling
reason to entertain the appeal. Compelling reason would of
course
include an important question of law or a discreet issue of public
importance that will have an effect on future disputes.
However, this
court correctly added that ‘but here too the merits remain
vitally important and are often decisive’
…
If a reasonable
prospect of success is established, leave to appeal should be
granted. Similarly, if there are some other compelling
reasons why
the appeal should be heard, eave to appeal should be granted. The
test of reasonable prospects of success postulates
a dispassionate
decision based on the facts and the law that a court of appeal could
reasonably arrive at a conclusion different
to that of the trial
court. In other words, the appellants in this matter need to convince
this Court on proper grounds that they
have prospects of success on
appeal. Those prospects of success must not be remote, but there must
exist a reasonable chance of
succeeding. A sound rational basis for
the conclusion that there are prospects of success must be shown to
exist
”.
[15]
10.
I align
with how De Beer AJ summed up the test for prospects of success in
Modingwana v Body Corporate Amber Hill
[16]
as follows:
“
Considering the
statutory and regulatory matrix, three questions for consideration
arise in the application for leave to appeal.
These questions are not
distinct but interrelated. The first question is whether the
applicant filed a proper notice of application
for leave to appeal
which concisely and succinctly set out the grounds upon which leave
to appeal is sought. The second question
is whether the appeal would
have a reasonable prospect of success or whether there are compelling
reasons that exist why the appeal
should be heard such as the
interests of justice. The third question is whether the application
for leave to appeal sets out expressly
why the default position of an
appeal to a full court of the division should not prevail, as well as
the questions of law or fact
or other considerations involved that
dictate that the matter should be decided by the SCA
”.
[17]
Submissions
11.
Applicant argued that the court erroneously did not have due regard
to the applicant’s Rule 35(14) Notice. The Court
merely had
regard to paragraphs 1 to 3 of the Notice and omitted to have regard
to paragraph 4 thereof.
12.
During proceedings, the Court was directed to the Notice in terms of
Rule 35(14) in its entirety. The Court considered
the entire Notice
in terms of Rule 35(14) during the proceedings. The issue to be
determined was whether Rule 35(14) Notice together
with application
to compel suspended timelines for filing answering affidavit.
13.
I have made a finding in the main judgment that Rule 35(14) Notice
does not suspend timelines for filing of the answering
affidavit.
This finding was made after having considered the entire Rule 35 (14)
Notice as well as the interlocutory application
to compel. This was
supported by authorities referred to in the main judgment.
14.
Applicant further argued that the Court should have had regard to the
fact that once an irregularity was raised by Respondent
in terms of
Rule 30, the Applicant was prohibited in terms of the Rules to take
any further step as delivery of an answering affidavit
would have
constituted a further irregularity. Respondent argued that in the
absence of a withdrawal of Rule 30 notice, it stands
notwithstanding
a subsequent reply by the Respondent to the Rule 35(14) notice.
15.
In the main
judgment I indicated that after Rule 30 notice, Respondent filed a
reply to Rule 35(14) notice.
[18]
I do not agree with Applicant’s submission, whilst Rule 30
Notice has not been withdrawn, it was overtaken by events.
16.
Applicant further argued that the authorities relied on in the main
judgment are distinguishable from Rule 35(12) and
that the notice to
compel compliance with Rule 35(14) suspended the timelines for filing
answering affidavit. When invited by the
Court to refer to caselaw
that support this argument, Applicant could not refer the Court to
any caselaw.
17.
The Applicant made an election to file a Notice in terms of Rule
35(14) and I do not agree with a submission that provisions
relating
to Rule35(12) automatically applied when Applicant filed a notice to
compel. I made a finding in the main judgment
that based on
authorities referred therein, Applicant’s Notice in terms of
Rule 35(14) did not suspend the timelines for
filing an answering
affidavit. In my view the argument that the application to compel
compliance with Rue 35(14) is not sustained.
18.
Applicant
further argued that Respondent failed to comply with the provisions
of
section 21
and
22
of the
Alienation of Land Act No.68 of 1981
.
[19]
Applicant argued that
sections 21
and
22
of the
Alienation of Land
Act deal
with imposed statutory requirements when an immovable
property has been sold in instalments and the seller of the property
is declared
insolvent.
19.
Sections 21
and
22
of the
Alienation of Land Act provide
that:
“
21
(1) …
(2) When the owner of
land sold under a contract becomes an insolvent, or a judgment
creditor of that owner attaches such land by
virtue of a writ in
execution –
(a) (i)
the owner shall, within 14 days of the appointment of a trustee
or liquidator or the attachment,
inform the trustee or liquidator or
judgment creditor, as the case may be, of the name and address of any
person of whose name
and address he was notified in terms of the
provisions of subsection (1); and
(ii) a
mortgagee shall, within ten days after he receives notice of the
insolvency or attachment, inform the trustee,
executor, liquidator or
judgment creditor, as the case may be, of the name and address of any
purchaser who gave notice to him
that he had purchased the land in
terms of a contract; and
(b) the trustee,
executor, liquidator or judgment creditor of the owner shall, if that
land is registrable, as soon as may be practicable
notify every
person who he has reason to believe purchased the land in terms of a
contract or is an intermediary in relation to
the contract, of his
right, subject to the provisions of
section 22
(3), to take transfer
of the land concerned.
(3) The
notification contemplated in subsection (2) (b) shall be effected by
notice in writing handed to the person concerned
or sent to him by
registered post.
(4) Any trustee,
executor, liquidator or judgment creditor contemplated in subsection
(2) (b) –
(a)
Who fails without fault on his part to hand or send a notice
referred to in subsection (3) to a purchaser or an intermediary in
accordance with that subsection, shall not merely by reason of such
failure incur any liability towards the purchaser or intermediary
concerned; and
(b)
Shall, unless the contrary is proved, be deemed so to have
failed through his fault if –
(i)
due notice in accordance with the provisions of subsection (2)
(a) was given to him in respect of the purchaser concerned; or
(ii)
he did not take all reasonable steps appropriate to the
circumstances of the case to obtain the name and address of the
purchaser
or intermediary concerned, unless he is a mortgagee to whom
notice was required to be given in terms of
section 9(1)
, and no such
was given to him by the purchaser concerned.
(5) Any owner or
mortgagee who willfully or negligently fails to comply with the
provisions of subsection (2)(a), shall be guilty
of an offence and
upon conviction liable to a fine not exceeding R1000 or to
imprisonment for a period not exceeding one year or
to both such fine
and such imprisonment.
22. (1) When the owner
of land alienated under a contract becomes an insolvent, or a
judgment creditor of the owner attaches such
land by virtue of a writ
in execution, that land shall be transferred to any person who
purchased that land in terms of a contract
or who is an intermediary
in relation to that contract and who, in accordance with the
provisions of subsection (2), makes arrangements
for the payment of
all costs in connection with the transfer and of an amount equal to –
(a)
all amounts owing under the deed of alienation in terms of
which that owner alienated the land; or
(b)
the sum of –
(i)
the costs of attachment or, in the case of an insolvent, such
sequestration and administration costs contemplated in section 89(1)
of the Insolvency Act, 1936 (Act No. 24 of 1936), as relate to the
land;
(ii)
any amount payable in respect of any endowment, improvement or
any other matter in terms of any law in relation to the land; and
(iii)
if the land is encumbered by a mortgage bond and, in the case
of an insolvent, subject to the provisions of the insolvency Act,
1936, the amounts required by the mortgagee in accordance with the
provisions of section 9 (3) of this Act, including interest to
date
of transfer,
whichever of the two
amounts contemplated in paragraph (a) or (b) may be the larger, and
also makes arrangements for the signing
of all documents required in
connection with transfer.
(2) (a) The
arrangements contemplated in subsection (1), shall be made by
the person concerned –
(i) if the land was
attached, before the land is sold in execution, to the satisfaction
of the deputy sheriff or messenger of the
court concerned, as the
case may be; and
(ii) if the
owner of the land is insolvent and, subject to the provisions of
paragraph (b), within such period as his trustee,
executor or
liquidator, as the case may be, may allow, which period shall not be
less than 30 days, to the satisfaction of such
trustee, executor or
liquidator, as the case may be.
…
(7)
If no satisfactory arrangements are made in terms of subsection
(i), the land and its proceeds shall be dealt with in
accordance with
the rules of law relating to sales in execution or insolvency, as the
case may be
”
.
[20]
20.
On March
31, 2023 the sheriff of this Court served a letter of demand from
Respondents issued in terms of
section 19(1)
&
19
(2) of the
Alienation of Land Act.
[21
] In
the foregoing letter of demand, Respondents confirmed that the
sellers of the property (Mr Matle Richard Tsokodibane and Mrs
Mosisi
Julia Tsokodibane) have been finally sequestrated in terms of the
court order granted by the High Court of South Africa,
Free State
Division. A demand was made for Applicant to pay the outstanding
amounts as indicated in paragraph 12 of the letter
of demand. The
appeal court may have to consider whether in the absence notice in
terms of
sections 21
and
22
of the
Alienation of Land Act and
non-recordal of the agreement,
section 19
notice suffices for
termination of the sale agreement. This issue was not canvassed
during postponement application.
21.
Applicant
relied on the decision of Sarrahwitz v Maritz NO
[22]
and argued that based on this decision, the Court should have regard
to the exceptional circumstances of the main application and
the
detrimental consequences to the Applicant if leave to appeal is not
granted. Applicants argued that there are strenuous facts
that the
Respondents did not fully ventilate to the Court. Applicant further
argued that in terms of the protection afforded in
terms of
sections
21
and
22
of the
Alienation of Land Act it
could not have demanded
transfer of the property.
22.
In dealing with the objective of the matter the Constitutional Court
stated in Sarrahwitz v Maritz NO that:
“…
And
this matter affects the rights of vulnerable purchasers who are
exposed to the risk of losing their residential properties and
the
extremely limited resources poured out to secure them. It is about
the need to protect the poor and vulnerable from homelessness.
It
seeks not to protect the well-resourced purchasers who have access to
enough money to pay off a property immediately. Homelessness
and
vulnerability are therefore central to the determination of the
issues in this matter
”.
[23]
23.
The
Constitutional Court clearly emphasised significance of protection of
right to have access to adequate housing as enshrined
in
section 26
of the Constitution.
[24]
Particularly protection of the vulnerable and the poor purchasers
from being rendered homeless as a result of eviction. The
Constitutional
Court went further to state that the affected rights
include the right to dignity and the right to equality in so far as
this relates
to differential treatment of vulnerable purchasers of
residential property.
[25]
24. Applicant
argued that had Respondents complied with provisions of
sections 21
and
22
of the
Alienation of Land Act they
could not have objected to
the discovery of the relevant and important documents sought by the
Applicant.
25. The issues
relating to the provisions of
Alienation of Land Act were
not raised
at the hearing of the matter when application for postponement was
made. This was raised during argument in the application
for Leave to
Appeal. In Sarrahwitz v Maritz NO the Constitutional Court stated
that:
“
In any event
this court has acknowledged that ‘the mere fact that a point of
law is raised for the first time on appeal is
not in itself
sufficient reason for refusing to consider it’. To resolve
that, a court should be guided by three conditions:
the point sought
to be raised must be a point of law; it must be covered by the
pleadings; and there should be no prejudice to
the other party
”.
[26]
26. The
Constitutional Court in Sarrahwitz v Maritz NO followed the decision
in CUSA v TAO YING Metal Industries where the
court stated that:
“…
Where a
point of law is apparent on the papers, but the common approach of
the parties proceeds on a wrong perception of what the
law is, a
court is not only entitled, but is in fact also obliged, mero motu,
to raise the point of law and require the parties
to deal therewith.
Otherwise, the result would be a decision premised on an incorrect
application of the law. That would infringe
the principle of
legality
”.
[27]
27. Applicant
further argued that Respondents failed to comply with the provisions
of
section 20(1)
as the deed of sale between the parties was never
recorded with the Registrar of Deeds. This point was again raised for
the first
time during hearing of the application for Leave to Appeal,
it was never raised during postponement application. Applicant argued
that this is a point of law, and the Court is entitled to consider
points of law on appeal.
28.
Section 20
of
the
Alienation of Land Act provides
that:
“
20
(1) (a) A seller, whether he is the owner of the land concerned or
not, shall cause the contract to be recorded by the registrar
concerned in the prescribed manner, within three months from the date
–
(i)
of the contract, if the land is registrable, or
(ii)
upon which the land becomes registrable,
provided a prior
contract in respect of the land has not been recorded or is not
required to be recorded against the title deed
in question in terms
of this section.
(b) If a contract
recorded against the title deed in terms of this section is
terminated for whatever reason, such recording shall
be cancelled and
the next succeeding relevant contract shall be recorded against the
title deed in question in terms of this section.
(c) If a period
referred to in paragraph (a) has expired without the seller having
caused the contract to be recorded in terms of
that paragraph, the
purchaser may -
(i)
within 14 days after such expiry cancel the contract, in which
case the parties shall be entitled to the relief provided for in
section 28
(1): Provided that nothing contained in this subparagraph
shall detract from any additional claim for damages which the
purchaser
may have; or
(ii)
at any time thereafter, if he elects not to cancel the
contract under subparagraph (i) of this paragraph, apply to the
registrar
concerned to record the contract in the prescribed manner.
…”
.
29.
Applicant
referred to the decision of Amardien and Others v Registrar of Deeds
and Others
[28]
and argued that
in the absence of registration of the contract, there was no debt due
and payable by the Applicant, therefore the
Respondents were not
entitled to cancel the agreement.
30.
The Constitutional Court in Amardien v Registrar of Deeds stated
that:
“
As the fifth
respondent was statutorily barred from accepting payment, applicants
could not have been in breach of the agreements
at the time of
receipt of
s 129
NCA notice, as they had not been aware of the
recordal of the instalment sale agreements before that date. The
fifth respondent
should have alerted the purchasers of this fact
before issuing the
s 129
NCA notices and claiming cancellation of the
agreements. In the proper course of action, the fifth respondent
should have advised
the applicants of the recordal, therefore
signalling that the debt would then be due and payable, and given
them a reasonable opportunity
to pay, before moving to enforce the
agreement and subsequently cancel the agreement.
…
Having regard
to both the plain meaning of
s 20
read with
s 26
of the ALA and the
case law referred to, the effect of the late recordal is clear. The
payments under the instalment sale agreements
were not due and
payable and therefore the applicants were not in arrears as contended
by the fifth respondent. For the period
that the agreements remained
unrecorded, no fault can be imputed to the purchasers for not paying
the instalments. It follows that
the recordal is not a contractual
suspensive condition as contended by the fifth respondent and
obligations do not become due retroactively.
The interpretation of
these sections, in my view, will not have unfair consequences on the
seller. It is consistent with the text
and fairly balances the rights
and responsibilities of the seller and purchaser.
It follows that the
s
129
NCA notices were premature and invalid in so far as it was relied
upon as a basis for the cancellation of the instalment sale
agreements.
The effect of this is that the subsequent cancellation of
the instalment sale agreements and the cancellation of the recording
of these agreements are invalid
”.
[29]
31.
Respondents argued that Applicant’s argument should have been
submitted during application for postponement. Respondents
further
argued that fifty-nine court days elapsed from the day that the
matter was set down on the unopposed motion roll. There
was never
application for extension of time to file answering affidavit.
Nothing stopped the Applicant from filing answering affidavit,
raise
the issues argued in the application for Leave to Appeal as points
in
limine
in the answering affidavit and non-compliance with
statutory requirements. Applicants would have an opportunity to
supplement their
answering affidavit should the documents requested
in terms of
Rule 35(14)
be provided. The issues relating to
non-compliance with statutory requirements were not raised during
argument for postponement.
Respondents did not have opportunity to
reply to the issues which are raised for the first time during
hearing of application for
Leave to Appeal.
32.
Regarding
section 21
of the
Alienation of Land Act, Respondents
argued that the land was not registrable when the seller was declared
insolvent because there was still outstanding amount of the
purchase
price. Applicant had ample time to file a substantive application to
stay or suspend the proceedings. Respondents argued
that it was never
the intention of the Legislature that a purchaser in default should
be entitled to transfer of the property.
Respondents further argued
that Applicant was advised on March 30, 2023, that the seller had
been declared insolvent, and that
the property is the alter ego of
the insolvent estate.
33.
Respondents further argued that the fact that Respondents have been
declared insolvent does not leave Applicant without
remedy as it is
entitled to make a claim in the insolvent estate as a preferent
creditor in respect of the instalments already
paid. There is nothing
in the Leave to Appeal indicating that the decision refusing
postponement was not judicially made.
34.
Respondents argued that there are no special circumstances advanced
by Applicant as to why the Leave to Appeal should
be granted.
Conclusion
35.
I have set out the legal principles applicable to Leave to Appeal,
there must be prospects of success and compelling reasons
for the
appeal to be heard.
36.
In the main judgment I set out applicable law on whether
Rule 35(14)
notice suspends the timelines for filing answering affidavit. I need
not repeat same in this judgment.
37.
In trying
to persuade the Court, Applicant pointed out that the authorities
referred to in the main judgment are limited to
Rule 35(14)
and
argued that in instances where application to compel has been
delivered, the timelines for filing answering affidavit are
suspended. This argument was not supported by case law other than
reference to
Rule 35
(12) and
Rule 6(11).
This argument seems to
ignore the decisions of Caxton CTP Publishers and Printers Limited v
Novus Holdings Limited
[30]
and
Distelll Limited v Chris Naidoo and Others
[31]
.
38.
I am not persuaded that Applicant has prospects of success in so far
as the main judgment relate to suspension of time
period after filing
of
Rule 35(14)
notice and subsequent application to compel.
39.
However, during the hearing of application for Leave to Appeal,
Applicant raised the issue of non-compliance with
Alienation of Land
Act. I
have indicated that this issue was not raised during
application for postponement. The Court did not deal with this issue
when
delivering the main judgment.
40.
Applicant
argued that the issue of non-compliance with
Alienation of Land Act
is
a point of law which can be considered at appeal hearing. I have
referred to the decision of the Constitutional Court in the matter
of
Sarrahwitz v Maritz NO
[32]
which sets out the law when a point of law is raised for the first
time during appeal. I find this decision to be compelling and
I
cannot ignore the legal principles enunciated in that decision.
41.
I have already stated that the issues relating to non-compliance with
the
Alienation of Land Act were
raised for the first time during
argument of Leave to Appeal. These issues were never raised during
application for postponement.
42.
What is to be determined is whether the argument relating to
non-compliance with the
Alienation of Land Act is
a point of law that
should be considered in the appeal to ensure fair administration of
justice. As the Constitutional Court pointed
out, failure by the
Court to ensure that the point of law is addressed may result in
incorrect application of the law which would
infringe on the
principle of legality.
43.
Notwithstanding that the issue relating to non-compliance with
Alienation of Land Act was
not raised during application for
postponement. My view is that this is a point of law which should be
considered by the Court.
44.
The issue regarding non-compliance with
Alienation of Land Act
constitute
compelling reasons for the appeal to be heard. I am
satisfied that the Applicant has met the threshold for the Leave to
Appeal
to be granted. I am persuaded that another court upon
consideration of the issue of non-compliance with
Alienation of Land
Act may
come to a different conclusion.
45.
It would be in the interests of justice to afford Applicant an
opportunity to argue the issue relating to non-compliance
with
Alienation of Land Act which
was raised during argument for Leave to
Appeal.
46.
Having considered the arguments from both the Applicant and
Respondents as well as authorities, I am persuaded that the
application for Leave to Appeal should be successful.
Costs
47.
Given the manner in which this matter was handled, particularly the
issue relating to non-compliance with
Alienation of Land Act which
was only raised during argument for Leave to Appeal. I am not
persuaded that a costs order should be granted at this stage.
48.
In
Gubhelabm (Pty) Ltd v R.A.W. Truck Trading CC (B3217/2023) [2024]
ZAGPPHC 460 (26 April 2024)
[33]
,
the court stated that:
“
Costs orders,
including the assessment of the appropriate
Rule 69
scale, remain a
matter for the exercise of judicial discretion”.
[34]
Order
49.
In the result I make the following order:
1. Application for
Leave to Appeal is granted to the Full Court of Gauteng Local
Division, Johannesburg.
2. Costs of the
application for Leave to Appeal to be costs in the Appeal.
M NTANGA
ACTING JUDGE OF THE
HIGH COURT
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Date of Hearing: 14
January 2025
Date of Judgement: 27
January 2025
Appearances:
Applicants’
Counsel: Adv Scheepers
Instructed by: Riko De
Klerk Attorneys
Respondents’
Counsel: Adv Prinsloo
Instructed by: Mills &
Groenewald Attorneys
[1]
Goosen
and Others v Mont Chevaux Trust (148/2015)
[2017] ZASCA 89
(6 June
2017).
[2]
See
note 1 supra at para 17.
[3]
Acting
National Director of Public Prosecutions and Others v Democratic
Alliance and Others (19577/09) [2016] ZAGPPHC 489 (24
June 2016).
[4]
The
Mont Chevaux Trust (IT 2012/28) v Tina Goosen & 18 Others
(LCC14R/2014).
[5]
Also
see note 4 supra at para 6.
[6]
See
note 3 supra.
[7]
See
note 3 supra at para 29.
[8]
Cook
v Morrison
2019 (5) SA 51
SCA.
[9]
See
note 8 supra at para 8.
[10]
MEC
for Health, Eastern Cape v Mkhitha and Others.
[11]
S
v Smith 2012 (1) SACR 567 (SCA).
[12]
See
note 10 supra at paras 16-17.
[13]
Ramakatsa
and Others v African National Congress and Another (Case No.
724/2019)
[2021] ZASCA 31
(31 March 2021) at para 10.
[14]
See
Caratco (Pty) Ltd v Independent Advisory (Pty) Ltd
[2020] 2020 (5)
SA 35
(SCA).
[15]
See
note 14 supra.
[16]
Modingwana
v Body Corporate Amber Hill (Leave to Appeal) (23514/202) [2024]
ZAGPPHC (11 September 2024).
[17]
See
note 16 supra at para 8.
[18]
See
para 9 of the main judgment.
[19]
Alienation
of Land Act No.68 of 1981
.
[20]
Sections
21
and
22
of
Alienation of Land Act No.68 of 1981
.
[21]
Caselines
04-57 to 04-73.
[22]
Sarrahwwitz
v Maritz NO
2015 (4) SA 491
(CC).
[23]
See
note 22 supra at para 16.
[24]
Section
26 of The Constitution of the Republic of South Africa, 1996.
[25]
See
note 22 supra at para 17.
[26]
See
note 22 supra at para 30. See also Barkhuizen v Napier
[2007] ZACC 5
;
2007 (5) SA
323
(CC). See also CUSA v Tao Ying Metal Industries and Others 2009
(2) SA 204 (CC)
[27]
CUSA
v TAO YING Metal Industries
[2008] ZACC 15
;
2009 (2) SA 204
(CC) at para 68.
[28]
Amardien
and Others v Registrar of Deeds and Others
2019 (3) SA 341
CC.
[29]
See
note 28 supra at para 46 to 48.
[30]
Caxton
CTP Publishers and Printers Limited v Novus Holdings Limited
v
Novus Holdings Limited (2019/2021)
[2022] ZASCA 24
;
[2022] 2 All SA
299
(SCA) (9 March 2022).
[31]
Distelll
Limited v Chris Naidoo and Others [2019] ZAKZPHC 80.
[32]
See
note 27 supra.
[33]
Gubhelabm
(Pty) Ltd v R.A.W. Truck Trading CC (B3217/2023) [2024] ZAGPPHC 460
(26 April 2024).
[34]
See
note 33 supra at para 27.
sino noindex
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