Case Law[2025] ZAGPJHC 755South Africa
Lesedi Local Municipality v Heidelberg Beer Festival CC (2025/040312) [2025] ZAGPJHC 755 (4 August 2025)
Headnotes
no valid lease agreement with the Municipality.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Lesedi Local Municipality v Heidelberg Beer Festival CC (2025/040312) [2025] ZAGPJHC 755 (4 August 2025)
Lesedi Local Municipality v Heidelberg Beer Festival CC (2025/040312) [2025] ZAGPJHC 755 (4 August 2025)
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sino date 4 August 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG
Case
Number: 2025/040312
(1)
REPORTABLE: YES / NO
(2)
OF INTEREST TO OTHER JUDGES: YES / NO
(3)
REVISED: YES / NO
In
the matter between:
LESEDI
LOCAL
MUNICIPALITY
Applicant
and
HEIDELBERG
BEER FESTIVAL
CC
Respondent
JUDGMENT
MAKAMU, J
[1]
This urgent application was brought by
Lesedi Local Municipality (“the Municipality) as an interdict,
initially seeking an
interim order. It subsequently sought final
relief against Heidelberg Beer Festival CC (“the respondent”),
, represented
by its sole member, Mr. Bouwe Wiersma, a practising
attorney. The respondent opposed the application, stating that he had
been
in peaceful and undisturbed possession of the property and had
operated a business there under a 19-year lease term, which was an
improved term of the initial five years.
[2]
It is common cause that the respondent
applied to lease the Heidelberg Heritage Museum from the applicant,
who is the owner of the
property. The Municipal Council approved
the lease of the property to the respondent; however, no lease
agreement was concluded
with the respondent or any other person
[3]
It is common cause that the respondent
failed to pay the required rental amount. It further operated the
business and sub-let the
premises to third parties to conduct their
business on the premises.
[4]
The issue in this matter is that the
respondent occupied the building without a signed lease agreement;
failed to pay rent to the
Municipality; and did not settle the
electricity charges until the Municipality cut the electricity
supply. The respondent further
refused to vacate the property despite
the applicant’s numerous correspondences and multiple court
actions against it.
Brief Background
[5]
The Respondent applied to lease the
Heidelberg Heritage Motor Museum. It relied on the Council’s
resolution and correspondence
from the applicant’s officials as
a positive indication of approval. The applicant denies signing any
lease agreement; nevertheless,
the respondent occupied the premises
after the City Manager refused to sign the lease. All subsequent
litigation between the parties
was decided against the respondent.
[6]
The Respondent submitted that it relied on
a Council resolution and extensive correspondence to justify
occupying the building but
conceded that no lease agreement was
signed. The applicant acknowledged the resolutions and correspondence
but emphasised that
the City Manager never executed the lease
agreement.
[7]
Upon occupation, the respondent leased part
of the premises as a restaurant to Agler’s Heidelberg Tap and
Grill (“Aglers”)without
applicant’s consent. The
applicant submitted that, in any event, the respondent lacked
authority to sub-lease the premises
to a third party, as it held no
valid lease agreement with the Municipality.
Submissions by the
Parties
[8]
The applicant submitted that the respondent
lodged a complaint regarding the state of the building’s
condition and also notified
the SAPS in writing of these concerns.
[9]
In response, the applicant instructed the
respondent to cease business operations and vacate the premises on
safety grounds for
the public. The applicant further asserted that,
lacking a written lease signed by both parties, the respondent had no
right of
occupation.
[10]
The respondent submitted that it occupied
the building from 2016 and commenced business operations in 2019. The
applicant submitted
that during this period, the respondent failed to
pay for municipal services and electricity until the applicant
terminated the
electricity supply. Consequently,
Agler’s
was forced to use a generator at significant expense
.
[11]
The Applicant served notices on the
respondent and other unlawful occupiers to vacate the premises.
Agler’s notified its patrons
of the closure and vacated the
premises, but the respondent remained in occupation.
[12]
The respondent’s refusal to cease
business operations and vacate the premises prompted the applicant to
institute these proceedings.
Urgency
[13]
The applicant submitted that the matter is
urgent based on the following grounds:
(a)
The respondent has occupied the premises
for many years without paying rental;
(b)
The respondent has failed to pay
electricity charges, accruing arrears in excess of R1 300 000;
and
(c)
The building has been declared unsafe and
requires immediate repairs to protect public safety.
[14]
The respondent contended that the
application is not urgent as the building’s condition does not
endanger the public who may
be patrons at the business.
[15]
In
East
Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty) Ltd
and Others
[1]
the court stated:
“
The
import thereof is that the procedure set out in rule 6(12) is not
there for the taking. An applicant has to set forth explicitly
the
circumstances which he avers render the matter urgent. More
importantly, the Applicant must state the reasons why he claims
that
he cannot be afforded substantial redress at a hearing in due course.
The question of whether a matter is sufficiently urgent
to be
enrolled and heard as an urgent application is underpinned by the
issue of the absence of substantial redress in an application
in due
course.”
[16]
National
Treasury and Others v Opposition to Urban Tolling Alliance and Others
states:
[2]
“
Under
the
Setlogelo
test, the prima facie right a claimant must establish is not merely
the right to approach a court in order to review an administrative
decision. It is a right to which, if not protected by an interdict,
irreparable harm would ensue. . . . the applicants should have
demonstrated a prima facie right that is threatened by an impending
or imminent irreparable harm.”
[17]
The dispute between the parties dates from
prior proceedings in the Magistrate’s Court and also the
High Court, so it
is not a new dispute altogether. It intensified
when the respondent requested SAPS to inspect the building, and SAPS
subsequently
declared that urgent repairs were required. Fearing
vicarious liability, the applicant treated the matter as urgent. In
light of
the foregoing and applicable authority, the applicant
established absolute urgency under the Uniform Rules.
Applicable Legislation
[18]
Section
116 of the Municipal Finance Management Act (“the Act”)
[3]
provides as follows regarding contracts between the local government
and members of the public:
“
(1)
A contract or agreement procured through the supply chain management
system of a municipality or municipal entity must-
(a) be in writing;
(b) stipulate the
terms and conditions of the contract or agreement, which must include
provisions providing for –
(i) the termination
of the contract or agreement in the case of non- or
under performance.
(ii) dispute
resolution mechanisms to settle disputes between the parties;
(iii) periodic
review of the contract or agreement once every three years in the
case of a contract or agreement for longer
than three years; and
(iv) any other
matters that may be prescribed.”
[19]
Both parties agreed that no contract was
signed between them. However, the respondent regarded the Council
resolution and correspondence
as sufficient to constitute a contract.
There was no contract, as the contract was supposed to have been
signed by the Municipal
Manager and the representative of the
respondent.
[20]
Section 60 of the Act designates the
Municipal Manager as the accounting officer. As such, the
Municipal Manager is responsible
for signing all contractual
documents once authorised by the Municipality. In other words, the
authority to conclude contracts
on behalf of the Municipality is
delegated to the Municipal Manager in terms of the Act.
Submissions
[21]
The Council adopted a resolution to award a
lease to Heidelberg Beer Festival CC, represented by
Mr Bouwe Wiersma
as sole member of the close corporation. However,
the lease agreement was never signed. According to the respondent,
this was because
the Municipal Manager refused to sign the agreement.
The respondent provided no explanation for the refusal or further
details
in this regard. In the absence of a signed lease, the
respondent’s decision to occupy the premises amounted to
self-help,
rather than compliance with lawful procedures.
[22]
The respondent nonetheless proceeded to
occupy the premises, relying on the Council resolution and
correspondence. However, as an
attorney and the sole member of the
respondent, Mr Wiersma ought to have known that a valid lease
agreement was required before
taking occupation.
[23]
The respondent further submitted that,
after taking occupation, it expended over R6 million on the property.
However, it provided
no details regarding the nature of the
improvements. Without a signed lease agreement, it was imprudent to
incur such substantial
expenditure.
[24]
The respondent had no lease agreement and
thus no lawful right of occupation. It nonetheless sub-leased the
premises to Agler’s.
After Agler’s vacated the premises,
it permitted the Railway Café to operate there. These actions
were taken without
the necessary authority, as the respondent had no
lease agreement with the owner of the property, Lesedi Municipality.
[25]
The respondent failed to pay rent or
service charges, including electricity, which accumulated to over
R1 300 000.00.
Despite the applicant’s efforts to
secure payment, the respondent paid nothing until the electricity was
disconnected, at
which point it complained.
[26]
The applicant seeks an interdict
prohibiting the respondent from continuing business operations and an
order evicting it from the
property.
[27]
The key question is whether an interdict is
the appropriate remedy in circumstances where the respondent had an
opportunity to be
heard. The second issue is whether applicant is
entitled to an eviction order.
[28]
In
the matter of
City
of Ekurhuleni Metropolitan Municipality v Tshepo Gugu Trading CC and
Another
,
[4]
the court held:
“
[W]here
the unlawful possession of a tampered vehicle had not yet been
determined, in the current matter it is not in dispute that
from the
time of its erection, the billboard did not comply with the law
–
it is an illegal
structure. The respondent was aware of this fact throughout. In our
view, no court is permitted to countenance
a glaring illegality. Nor
should a court turn a blind eye on the prescripts of the law and the
importance of observing them. After
all, the By-laws are designed to
maintain order, ensure public safety, and create harmonious living
environments. They also play
a vital role in promoting sound business
interests and competition as well as regulating community life.”
[29]
The respondent brazenly defied multiple
requests to cease business operations on the premises despite having
no signed lease agreement
and failing to pay any rental. It continues
to refuse to vacate the premises, even in the face of these
proceedings. In light of
the judgment reference in paragraph 28, the
Court cannot ignore the illegality being perpetrated by the
respondent.
[30]
The building was declared dilapidated by
members of the SAPS after the respondent lodged a complaint.
Nonetheless, the respondent
now claims that only the Rotarian
building requires attention and that the portion he occupies is safe.
However, the inspection
report clearly refers to the Heidelberg
Heritage Museum as a whole.
[31]
The applicant initially sought an interim
interdict to prohibit the respondent from conducting business,
together with an eviction
order. However, if the eviction is granted,
the interim interdict becomes redundant, as the respondent will no
longer be in occupation.
[32]
The respondent has no legal basis to oppose
this application, as it is an unlawful occupier. However, the
Municipality’s inaction
from 2019 to 2025
—
a
period of six years — suggests that it condoned the
respondent’s continued presence on the property, whether
expressly
or by inaction
.
[33]
Therefore, the application succeeds, and I
make the following order.
(a)
The respondent is ordered to stop
conducting business at the Heidelberg Heritage Museum with immediate
effect.
(b)
The respondent is ordered to vacate the
Heidelberg Heritage Museum within seven (7) days after the issuing of
this order.
(c)
Should the respondent fail to vacate the
premises within seven (7) days of this order, the Sheriff of the
Court is authorised to
execute the eviction in terms of this order.
(d)
The respondent is ordered to pay costs of
this application on the attorney and client scale, including the
costs of counsel.
MAKAMU J
Judge of the High Court
of South Africa, Johannesburg
Head
on:
15 July 2025
Delivered:
4 August 2025
Appearances
For the
Appellant:
Adv. Emmanuel Nathi Sithole
Instructed
by:
MB Mabunda Incorporated
For the
Respondents: Adv. L Hollander
with Adv. V Qithi
Instructed
by:
LVD Attorneys
[1]
[2011]
ZAGPJHC 196 at para 6.
[2]
[2012] ZACC 18
;
2012 (6) SA 223
(CC);
2012 (11) BCLR 1148
(CC) at
para 50.
[3]
56
of 2003.
[4]
[2024]
ZASCA 81
at para 38.
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