Case Law[2025] ZAGPJHC 995South Africa
Blyde River Walk Estate Homeowners Association and Others v Mabaso and Others (2022/16326) [2025] ZAGPJHC 995 (12 September 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
12 September 2025
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Blyde River Walk Estate Homeowners Association and Others v Mabaso and Others (2022/16326) [2025] ZAGPJHC 995 (12 September 2025)
Blyde River Walk Estate Homeowners Association and Others v Mabaso and Others (2022/16326) [2025] ZAGPJHC 995 (12 September 2025)
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REPUBLIC OF SOUTH
AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, JOHANNESBURG)
Case
No: 22/16326
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED: NO
IN
THE MATTER BETWEEN:
THE
BLYDE RIVER WALK ESTATE
FIRST APPLICANT
HOMEOWNERS
ASSOCIATION
BALWIN
PROPERTIES
SECOND APPLICANT
(Registration
Number: 2003/028851/06)
RONEWA
MUDAU
THIRD APPLICANT
AND
KHOSI
MABASO
N.O
FIRST RESPONDENT
THE
COMMUNITY SCHEMES OMBUD
SECOND RESPONDENT
SERVICE
BELINDA
TSHEHLA AND 84 OTHERS
THIRD TO EIGHTY-FOURTH
RESPONDENTS
JUDGMENT
This
Judgment is handed down electronically by circulation to the
Applicant’s Legal Representative and the Respondent’s
Legal Representative by email, publication on Case Lines. The date
for the handing down is deemed 12 September 2025 at 14h00.
NAIR
AJ
INTRODUCTION:
[1]
This is an application in which the applicants seek that the
operation of the adjudicators order dated 11 January 2022,
annexed as
“FA1” to the applicants’ founding affidavit is
stayed (the “stay application”) pending
the appeal
against the adjudicators order. In the
alternative
the
applicants seek that the operation of paragraph 147.4 of the
adjudicators order granted on 12 January 2022, annexed as “FA1”
to the applicant’s founding affidavit is stayed pending the
applicant’s appeal against the adjudication order.
THE
PARTIES:
[2]
The founding affidavit of the applicants was deposed to by Rochelle
Brink. She is a trustee of the first applicant
and an employee
of the second applicant. The first applicant is the Blyde
Riverwalk Home-Owners Association (the “HOA”),
duly
constituted on 18 October 2017 in terms of section 1.1.3 of its
constitution. The HOA’s principal place
of business is at
the Blyde Sectional Titles Scheme (the “Blyde Scheme”)
situated at B[…] Road, Swartkoppies.
The Blyde Scheme
has a managing agent to assist with the day-to-day administration of
the Scheme which the applicants allege falls
under regulation
30(2)(6) of the Sectional Titles Act 95 of 1986 (the “
Sectional
Titles Act&rdquo
;). I pause to mention that the
Sectional
Titles Act initially
governed all aspects of the sectional title
schemes, including management and conveyancing and although not
repealed in totality
has been amended several times to clarify and
update its provisions. The Sectional Titles Schemes Management Act 8
of 2011 (the
“STSMA”) was enacted to streamline the
management and administration of sectional title schemes and has
accompanying
regulations which came into effect on 7 October 2016.
Regulation 6(4)(b) is the corresponding regulation in the STSMA
to
regulation 30(2)(b)
of the
Sectional Titles Act to
which the
applicants refer to in their founding application. The
appointed managing agent is Landsdowne Property Group (referred
to as
“Landsdowne”). The second applicant Balwin
Properties Limited (referred to as “Balwin”) is
the
company responsible for the development of the Blyde Scheme.
The third applicant Ronewa Mudau is the owner of unit 160
of the
Blyde Scheme and an affected person as contemplated in
section 57
(1)
of the
Sectional Titles Act.
[3
]
The first respondent is the adjudicator (the “adjudicator”)
that was appointed by the
second
respondent, The Community Schemes Ombud Service (“CSOS”),
to adjudicate the dispute filed by the third to eighty
fourth
respondents in terms of section 50 of the Community Schemes Ombud
Services Act 9 of 2011 (the “CSOS Act”).
The first
respondent filed a notice of intention to abide by the court’s
decision. The dispute was registered under
CSOS 3272/GP/21 (the
“dispute”). The third respondent was the applicant
in the dispute which formed the subject
matter of the adjudication
proceedings presided over by the first respondent. The
remaining fourth to eighty-fourth respondents
were the other
applicants in the dispute and allege that they were the owners of
sectional title units in the Blyde Scheme and
members of the HOA.
The third respondent did not file any notice of intention to oppose
the application but the reason for
this is set out later in this
judgment. The fourth to eighty fourth applicant’s oppose
this application.
[4]
It is alleged by the applicants that the fourth to eighty fourth
respondents do not reside permanently at the Blyde Scheme
but let out
their units on a short-term letting basis (referred to as “STL”).
The applicants allege that the
third to eighty fourth respondents did
not prove ownership and membership in the Blyde Scheme at the
adjudication and thus did
not prove their locus standi at the
adjudication proceedings. I shall refer to the third to eighty
fourth respondents jointly
as the “STL owners”. The
first respondent delivered the adjudication order, dated 11 January
2022, on 12 January
2022 (the “adjudication order”) which
is annexed as “FA1” to the applicants’ founding
affidavit.
The applicants lodged a notice of appeal timeously
against the adjudication order on 11 February 2022.
APPLICATION
FOR JOINDER OF ABRAHAM JACOBUS LE ROUX:
[5]
On 5 May 2025, Mr Given Terrance Mpho Mohale, lodged an application
to intervene as a respondent in the stay application.
Similarly
on 14 May 2025 only three court days before the hearing of this
application Mr Abraham Jacobus Le Roux lodged an application
to be
joined as a party to the stay application. Mr Phala who
appeared for the STL owners also appeared in the joinder applications
on behalf of Mr Mohale and Mr Le Roux. Counsel for the second
and third applicants submitted that it is not necessary to
entertain
the joinder applications of Mr Mohale and Mr Le Roux as they were
already respondents in the stay application and dispute
filed at CSOS
as per the annexure attached to the applicant’s founding
affidavit on 001-64 to 001- 67 of the record.
Mr Abraham was
the sixth applicant in the CSOS dispute proceedings and therefore the
eighth respondent in the present stay application.
I agree that
Mr Le Roux’s joinder application must fail as he is already a
respondent to the stay application and his application
to be joined
to the proceedings is superfluous and is dismissed.
[6]
From the papers filed on record before me Mr Mohale was not a party
to the CSOS dispute registered under CSOS 3272/GP/21
which forms the
basis of the current stay application. Mr Mohale asserts that
CSOS order with CSOS reference 1374/GP/2023
dated 26 July 2023, CSOS
order with CSOS reference 1393/GP/23 dated 28 July 2023 and CSOS
order with CSOS reference 1389/GP/23
dated 7 August 2023 are CSOS
orders which are yet to be reviewed and should be filed as part of
the current stay application.
[1]
Mr Mohale contends that these aforementioned CSOS orders confirm the
first respondent’s adjudication order which is
the subject
matter of this stay application. He submits that owing to the
fact that the current matter under CSOS reference
3272/GP/21 was made
an order of the High Court that the High Court order cannot be stayed
through CSOS Rules. Mr Mohale did
not indicate in his founding
affidavit when he became aware of the CSOS dispute under CSOS
reference 3272/GP/21 and why he never
requested to be joined in the
proceedings before the first respondent at the CSOS dispute. He
merely indicates that he is
a short-term letting owner in the Blyde
Scheme and has a material interest in the stay application as a
result thereof. It
also does not appear from the papers
before me that Mr Mohale was a party to the CSOS cases with CSOS
reference 1374/GP/2023 dated
26 July 2023, CSOS reference 1393/GP/23
and CSOS reference 1389/GP/23. I cannot find that he be allowed
to include papers
in this stay application from these aforementioned
CSOS matters that he was not a party to. The application to CSOS by
the STL
owners in my view was a widely spread issue in the Blyde
Scheme and on the probabilities of the case the application of the
STL
owners’ at the CSOS dispute proceedings under CSOS
reference 3272/GP/21 would have come to Mr Mohale' attention.
He
has not provided any evidence otherwise.
[7]
It is also interesting to note that the applicants filed their heads
of argument in the matter on 6 June 2023 and that
the STL owners only
filed their heads of argument in this matter on 14 May 2025 some
three days before the hearing of the stay
application and in
non-compliance with Consolidated Practice Directive 1/2024 of the
Gauteng Division of the High Court (“Practice
Directive
1/2024”).
[2]
In
addition to this the STL owners as well as Mr Mohale who lodged the
application for joinder failed to hold a pre-trial
with the
applicants and to file a joint practice note in compliance with
directive 25.17 and 25.18 of the Practice Directives 1/2024.
The STL owners further wished to hand in supplementary affidavits on
the day of the hearing of the matter which clearly indicated
to court
a tendency by the STL owners to flagrantly disregard the time limits
laid down by this court for the proper hearing of
the stay
application.
[8]
The test for joinder requires that a party who has a legal interest
in a matter which may be prejudicially affected by
the court’s
order should be joined in the matter.
[3]
It has been argued that Mr Mohale’s rights and interests
will be severely prejudiced by any order made without his
participation and that he will bring about critical submissions
regarding developments in the Blyde Scheme HOA, including allegations
of contempt of court committed by the first and second applicants.
[9]
While I am mindful that Mr Mohale is a short-term letting owner in
the Blyde Scheme and that he may have a legitimate
interest in the
outcome of the stay application, his request to join these stay
proceedings as a respondent was only lodged on
5 May 2025 some ten
court days prior to the hearing of the stay application. The
stay application having been on the unopposed
roll for the first time
on 19 October 2022. The STL owners launched their application
in terms of section 43 of CSOS Act
on 7 September 2021. Mr
Mohale provides no explanation why his application to join as a
respondent in the stay application
was only lodged on 5 May 2025 and
does not address the further delay that his joinder application may
have in the stay proceedings
as well as the potential prejudice to
the applicants and the respondents of the stay application should he
be allowed to join as
a respondent. Mr Mohale provided no proof
of service of his application on the first and second respondents who
were not
before court at the hearing of the stay application. He also
provides no reasons as to why he did not request to join the CSOS
dispute proceedings before the first respondent earlier after the STL
owners lodged the application on 7 September 2021 at CSOS.
This
is especially important when considering that his allegation that his
rights and interests will be severely prejudiced by
any order made
without his participation. In my view his rights and interests
would have been affected on his version at
the commencement of the
2020 conduct rules. He has thus failed to show good cause why
he should be joined to the stay application
at the proverbial
eleventh hour or the actual prejudice that he will suffer.
[10]
The argument in the heads of argument of the fourth respondent that
Mr Mohale has submissions regarding developments
in the HOA,
including allegations of contempt of court committed by the first and
second applicants cannot hold. Firstly,
because in terms of
section 57 of the CSOS Act an appeal by the parties can only be
lodged in respect of a point of law and not
on the facts. This
by implication means that no new facts regarding the CSOS dispute
other than the facts tendered at the
dispute proceedings at CSOS can
be considered at the stay proceedings. Thus any new facts
sought to be introduced by Mr Mohale
regarding the further
developments in the HOA would have little or no weight on the outcome
of the stay application as these facts
were not considered by the
adjudicator in the dispute proceedings. The only facts which
may have some bearing on the counter
application lodged by the fourth
to eighty-fourth respondents is in respect of the alleged contempt of
court committed by the first
and second applicants. The first
and second respondents were not served with the application to join
Mr Mohale to the stay
proceedings so as to be provided with an
opportunity to respond thereto. Secondly, the aspect regarding
Mr Mohale making
submissions on the contempt of court of the CSOS
adjudicator’s order by the first and second applicants also
cannot hold
water for reasons which I will set out later in this
judgment when dealing with the issue of contempt of court allegedly
committed
by the first and second applicants. I am of the view
from what is set above and from what I will set out below that the
application
for joinder of Mr Mohale as a respondent in the stay
application must be dismissed.
[11]
I indicated earlier that the STL owners wished to hand in
supplementary affidavits on the day of the hearing. Given
the
clear disregard by these respondents to time limits for the filing of
papers and Practice Directive 1/2024, the request by
the STL owners
to hand in supplementary affidavits was refused.
[12]
I will turn now to deal with the background of the matter which
ultimately resulted in the stay application that I am
called upon to
decide on.
BACKGROUND
OF CASE:
[13]
This matter involves a dispute regarding validity and regulation of
the STL in the Blyde Scheme which is a known lifestyle
estate
situated in Pretoria. STL involves the short-term letting out
of units by STL owners as commercial businesses offering
holiday
accommodation. This holiday accommodation would usually be over
a day or two and generally less than a month.
At the inception
of the Blyde Scheme the vision of the developer was for the Blyde
Scheme to be a family orientated lifestyle estate
where families
enjoy the various amenities which include the outdoors, beach and
water activities in a safe and secure environment.
The
applicants contend that the Blyde Scheme has 24/7 state of the art
security system with biometric access ensuring the safety
and
security of all its residents. Currently phases 1 to 14 of the
Blyde Scheme have been completed consisting of 1157 units.
It
is envisaged that on completion of the Blyde Scheme there will be
3281 units. The Blyde Scheme would be developed in
approximately 49 phases with a crystal-clear lagoon totalling the
size of two rugby fields. This all with a view “
to
bring the beach to Pretoria
” for clients and families of
Balwin who love water-sports. The applicants allege that it is
for this reason that the
“
public access lagoon
”
deal structure was not pursued with Crystal Lagoons B.V who own the
intellectual property in relation to the crystal lagoon
concept.
[14]
The applicants contend that Balwin elected to pursue the route where
the crystal lagoon is made available within the
Blyde Scheme for its
residents only and not for the use by the public as the Public Access
Lagoon. Balwin allege to have
further negotiated with Curro
Schools to establish a school adjacent to the Blyde Scheme on a
property which was sold to Curro
by Balwin in order to make school
fees feasible. Balwin is further negotiating with Montessori
School operator to provide
a school adjacent to the Blyde Scheme for
minor children. The first occupation of a unit at the Blyde
Scheme took place in
2018. The crystal lagoon was completed and
opened to members of the HOA during September 2018. A copy of
the sale agreement
with the third respondent is marked as “FA3”
to the applicant’s founding affidavit.
[4]
[15]
It is alleged by the applicants that the STL owners now use their
units in the Blyde Scheme for investment and commercial
purposes only
letting them out as holiday accommodation as STL. The
applicants contend that this causes conflicts as holiday
makers
renting these units (usually for a period of 1 to 3 days) do not
adhere to the rules and family ethos that was envisaged
and which the
HOA seeks to maintain and preserve. The applicants allege that
the holiday makers are only there to have a
good time for their short
stays and are unperturbed by the consequences of their actions to
those around them as they will simply
leave once their STL period is
over. As a consequence thereof the HOA has had to deal with
endless complaints from residents
in regard to the disruption caused
by those holiday makers who are at the Blyde Scheme for short periods
of time with the intent
of partying and having a good time. The
applicants contend that the conduct of short-term occupants is often
difficult to
curb as these occupants are not easily subjected to
fines or other disciplinary processes. As a result thereof the
HOA has
passed a series of conduct rules to regulate the nature and
extent of the STL at the Blyde Scheme.
[16]
The HOA introduced Rule 21.4 of the 2018 conduct rules. The
applicants allege that the provisions of Rule 21.4
permits STL with
the said conduct rule requiring the following:
a) notice of the
short-term lease to Landsdowne;
b) that persons
under the age of 21 years old be accompanied by an adult of not less
than 21 years of age;
c) adherence to the
conduct rules by all persons occupying the unit.
[17]
The STL owners were required since the end of 2018 to sign an
acknowledgment that they intend to operate an STL unit
(referred to
as “STL 1 agreement”). The STL 1 agreement of the
fifth respondent dated 19 November 2019 is annexed
as “FA5”
to the applicants’ founding affidavit and encapsulates the
terms of the STL 1 agreement with other STL
owners.
[5]
The STL 1 agreement was confirmed by the STL owners in their
application and by the adjudicator in paragraph 24.7 of the
adjudication order. The applicants allege that the STL owners
in clause 16 of the STL 1 agreement agreed to the following:
“
I acknowledge
and agree that The Blyde Conduct rules, Lifestyle Centre Rules,
Crystal lagoon Rules and Air-BnB Regulations are subject
to amendment
from time to time and any such amendment will be enforceable against
me and my occupants/ guests/ visitors.”
[18]
In 2020 there was a sharp increase in STL during Covid-19 lockdown
and the Blyde Scheme was seen as a destination providing
Gauteng
residents with a “
beach
holiday
”.
The influx of holiday makers in July 2020 or August 2020 resulted in
a rise in complaints by permanent residents
and owners of the Blyde
Scheme. The complainants emanated from unruly behaviour and
poor conduct of STL occupants which made
permanent residents and
owners feel compromised. This resulted in the HOA being
required to deploy additional resources at
an additional cost to the
HOA for the Blyde management and security over weekends.
[6]
The complaints received were
inter
alia
the following:
[18.1] residents
are unable to utilise their own spaces/ facilities because STL
letting;
[18.2] No Covid-19
protocol is followed, therefore residents health and
wellbeing are put at risk’
[18.3] noise
pollution
[18.4] Residents
have to pay a R200,00 fees in order to use the crystal lagoon
facility where STL occupants do not have to
pay the fee;
[18.5] Security
issues generated by the STL occupants, making the residents feel
unsafe;
[18.6] STL
occupants are parking residents in so that residents are unable to
leave their units / their parking bays;
[18.7] TL occupants
approach the residents and request them not to report their noise
complaints and thus residents feel threatened
/ unsafe;
[18.8] STL
occupants create a mess on the resident’s doorsteps by spilling
beverages/ alcohol;
[18.9] Overcrowding
/ too many people staying in one unit, exceeding the unit capacities;
[18.10] residents
experiencing traffic congestion within the Blyde due to STL occupants
blocking residents in; and
[18.11] harassment
and overcrowding in the crystal lagoon; and
[18.12] raucous
behaviour.
[19]
It is alleged by the applicant’s that the STL owners have since
2019 signed the STL 1 agreement and have had no
issues in doing
so.
[7]
In order to enforce
stricter management of the STL in respect of the Blyde Scheme as a
result of the complainants received,
a notice of special resolution
was sent to all members prior to convening the AGM held on 30
September 2020. The notice proposed
that Rule 21.4 of the 2018
conduct rules relating to STL would be amended if the special
resolution was passed.
[8]
Rule 21.4 of the 2018 conduct rules was subsequently amended at the
AGM on 30 September 2020 after receiving a 75% majority
vote.
[9]
The applicants contend that the entitlement to amend and vary rules
is contained in the HOA constitution as well as in the
sale agreement
when the owners acquire a unit. Due to the issues and
difficulties experienced with the 2018 conduct rules,
the 2020
conduct rules were put in place on 30 September 2020 at the AGM (the
“2020 conduct rules”). A copy of
the 2020 conduct
rules was marked as “FA6” to the applicant’s
founding affidavit. The 2020 conduct rules
were approved by
CSOS on 15 December 2021 as per “FA7” to the applicant’s
founding affidavit in terms of section
4(1)(c) of the Community
Schemes Ombud Services (the “CSOS Act”).
[10]
[20]
The amended Rule 21.4 of the 2020 conduct rules provided as follows:
“
21.4.1
No letting for a period less than 3 (three) months shall be
allowed whatsoever, without the prior consent of the Trustees, which
will not be unreasonably withheld. The owner shall be obliged
to notify the Trustees of any short-term occupancy for security
of
purposes and the owner shall require such written consent prior to
allowing any such person access into the complex.
21.4.2
Short-term letting of a unit will be subject to such terms and
conditions and/or regulations as imposed by the developer and/or
Trustees, from time to time should the developer and/or Trustees
elect to allow short-term letting.
21.4.3
Notwithstanding any other rule contained herein, any owner who
contravenes this rule shall be liable for a penalty equal to 90% of
the monthly levy.”
[21]
On 7 September 2021 the STL owners which were the third to
eighty-fourth respondents launched their application in terms
of
section 43 of the CSOS Act challenging the 2020 conduct rules which
came before the first respondent who was the adjudicator
in the
matter. Numerous relief was sought by the STL owners in their
application to the adjudicator in respect of the 2020
conduct rules
of the Blyde Scheme but not all were successful as is apparent from
the adjudicator’s order.
[11]
On 21 October 2021 the adjudicator granted leave to parties to
supplement papers which the parties duly did. During
the time
between the adjudicator’s order granting the parties the
opportunity to supplement their papers and the hearing
of the matter
the parties attempted to resolve their issues but this was without
success. The applicants allege that further
complaints were
received by permanent residents and that a special general meeting
was called by the Trustees of the Blyde Scheme
to propose a complete
prohibition on STL. The complainants regarding STL escalated to
such a state that the third applicant,
Ronewa Mudau, lodged an
application before CSOS to ban STL. The application of the
third applicant at CSOS was dismissed
by the adjudicator as the CSOS
adjudicator in the matter found that the members of the HOA had the
required majority vote at a
quorate meeting, reached a decision on
the STL in respect of the 2020 conduct rules and that this decision
must be respected by
the third applicant. This was prior to the
amendment of the 2020 conduct rules prohibiting STL.
[22]
On 23 July 2021 the first applicant sent to home-owners a memorandum
titled “STL Management” with an additional
contract being
“STL 2” to the memorandum. On 29 July 2021 the STL
owners lodged another complaint to CSOS (the
“CSOS second
application”). The notice of the proposed special general
meeting was alleged by the applicant to
have been sent 30 days prior
to the meeting together with the proposed amended Rule 24.1 of the
2020 conduct rules prohibiting
STL. The special general meeting
did not proceed via MS Teams on 11 October 2021 due to disruptions
and a lack of a quorum
and was adjourned by the chairman to 14
October 2021. The Blyde Scheme home-owners were notified via
email of the adjourned
meeting on 12 October 2021. On 14
October 2021 the applicant alleges that the special general meeting
was reconvened, was
quorate and that by special resolution with
92,48% the votes cast in favour of the amended rule 21.4 banning the
STL in its entirety
(the “2021 conduct rules”). The
applicants further allege that only 7.16% voted against the amendment
and 0.36%
abstained. The votes were subsequently audited by Van
Sitterts Auditors and was not disputed by the respondents.
[23]
After both parties duly supplemented their papers the matter came
before the adjudicator who is the first respondent
in this matter.
The first respondent heard the argument presented by both parties and
granted the adjudication order annexed
a “FA1” to the
applicants papers on 12 January 2022. The applicant contends
that the first respondent granted
far reaching relief which included
the following:
[23.1] the relief
sought in terms of section 39(4)(b) of the CSOS Act for an order
declaring that the general meeting held
on 14 October 2021 was not
validly convened, is granted.
[23.2] the relief
sought in terms of section 39(4)(c)(i) of the CSOS Act for an order
declaring that the resolution passed
at the general meeting held of
14 October 2021 to amend clause 21.4 of the 2020 conduct rules is
void, was granted.
[23.3] the relief
sought in terms of section 39(3)(d) of the CSOS Act for an order
declaring that the Blyde Scheme governance
provision clause 21.4 of
the 2020 conduct rules, having regard to the interests of all owners
and occupiers in the scheme, is unreasonable,
was granted.
[23.4] the HOA was
ordered in terms of section 39(3)(d)(iii) of the CSOS Act to amend
clause 21.4 of the 2020 conduct rules
by approving and recording a
new clause identical to clause 21.4 of the 2018 conduct rules to
bring the offending clause in line
with the spirit and purport of the
STSMA and the Constitution of the HOA.
PURPOSE
OF APPLICATION:
[24]
The applicants contend that the purpose of this application is to,
pending the appeal of the adjudication order, ensure
that the
majority rule principle that binds the members of the HOA is given
effect to:
[24.1] if not by
ensuring there is no STL as was resolved in terms of the 2021 conduct
rules amendment, as the applicants
have been advised that STL is in
any event unlawful;
[24.2] that at the
very least by preserving the status quo as it existed for about a
year prior to the adjudicator’s
order by having the 2020
conduct rules, previously approved by CSOS, remain intact and
enforceable pending the outcome of the appeal.
[25]
The applicants allege various grounds of appeal which they intend on
arguing before the court of appeal, which include
unlawfulness,
functus officio, time barring, reasonableness and Balwin’s
development rights. The STL owners have filed
their notice of
intention to oppose the appeal lodge by the applicants.
Subsequently there have been disputes over procedural,
technical and
practical aspects regarding the transcriptions of the record of
proceedings before the first respondent and disagreements
as to
security for costs in the appeal. In light of this the STL
owners caused the first respondent’s adjudication
order to be
lodged at the Gauteng Division of the High Court, Pretoria and was
made an order of court on 26 May 2022 in terms of
section 56(2) of
the CSOS Act, under case number 28916/2022.
[12]
This was after the applicants lodged a notice of appeal timeously
against the adjudication order on 11 February 2022.
[26]
It is common cause between the parties that they have been unable to
mediate this matter but that the applicants remain
open to
mediation.
[13]
The
applicants also contend in the replying affidavit that the STL owners
are currently still being permitted to continue
with STL in
accordance with the STL agreements that are in existence between the
parties.
[14]
The
applicants’ further submit that one of the issues in this
application is the City of Tshwane's Land Use Scheme
(“the
Tshwane Land Scheme") which was at all material times, the Land
Use Scheme in operation and governs the uses to
which sectional title
units at The Blyde Scheme may be put, such as to which land and
buildings erected on land may be put.
[27]
The applicants’ argue that the Tshwane Land Use Scheme was
created in terms of the Spatial Planning and Land Use
Management Act,
2013 (
"SPLUMA"
). The applicants’ further
argue that SPLUMA, together with the Land Use Scheme prescribe
restrictively the uses to
which land and buildings erected on land
may be put to use. Unless a particular use is expressly, or by
necessary implication permitted,
in terms of the Tshwane Land Use
Scheme it is prohibited. As such they contend that an
adjudicator appointed to resolve a
dispute between members of a
sectional title scheme must be cognisant of and have due regard to
all other laws that regulate the
use of the land and buildings
comprising the sectional title scheme. They argue that the
first respondent failed to do this
in the present case.
CONDONATION
FOR THE LATE FILE OF THE STL OWNERS’ ANSWERING AFFIDAVIT:
[28]
When the applicants launched their application the respondents,
initially, failed to oppose it and it was enrolled for
hearing on the
unopposed motion court roll of 19 October 2022. On 18 October
2022, the day before the hearing and without
a notice of intention to
oppose having been delivered, the STL owners delivered their
counter-application and answering affidavit
seeking condonation of
the late filing of the STL owners answering affidavit.
[15]
This occasioned the postponement of the hearing of the application.
[29]
The fourth to eighty-fourth respondents answering affidavit was
deposed to by Meneer Advocate Mokgalaka, wherein reference
is made to
eighty-seven respondents. On the papers before me the first, second
and third respondents were the adjudicator, CSOS
and Belinda Tshehla
respectively. The fourth to eighty-fourth respondents are the
respondents listed in the schedule attached to
the applicants’
founding papers at 001-64 to 001-67 of the court bundle.
[16]
The third respondent in this matter, Belinda Tshehla, was the 1
st
applicant in the CCOS adjudication matter and thereafter the
respondents would follow from the fourth to eighty seventh
respondents
in sequence as referred to in the annexure attached to
the applicant’s papers on 001-64 to 001- 67 of the court
bundle.
The third respondent as well as the fourth to
eighty-fourth respondents are alleged owners in the Blyde Scheme and
the parties
who were before the adjudicator in the adjudication
hearing at CSOS. The fourth to eighty-seventh respondent’s
as their
opposing affidavit is titled requested condonation in terms
of Rule 27 of the Uniform Rules of Court for the late filing of their
opposing papers. The reasons for the application for
condonation was that the third respondent, Mrs Belinda Tshehla, who
was the owner of Unit 210 at the Blyde Scheme, a member of the
Short-Term Letting Forum and the main applicant in the adjudication
order, was the intended deponent to the present answering affidavit
on behalf of the Short-Term Letting Forum but has since passed
away
on 14 September 2022.
[17]
The answering affidavit was finalised by Meneer Advocate Mokgalaka,
who took over after her death. At the hearing of
the
application the applicants’ granted the request for condonation
for the late filing of the fourth to eighty-seventh respondents
(
continued as the “STL owners”) answering affidavit.
STL
OWNERS’ COUNTER APPLICATION:
[30]
The STL owners also made a counter-application which the applicants
and the first, second and third respondents opposed.
The first,
second and executor of the third respondents did not however file any
opposing papers to the STL owners counter application.
The STL
owners in the counter application requested the following:
[30.1] To strike
out paragraphs 25 - 27; 32 - 34; 42 - 45; 62 - 64; 92.4 - 92.5; 92.9
- 92.10; 93.3 – 93.6; 94.10; 95
and 109 of the applicant’s
founding affidavit as it is vexatious, and/or irrelevant and/or
scandalous in terms of Rule 6(15)
of the Uniform Rules of Court;
[30.2] Declaring
the first applicant (The Blyde Riverwalk Estate Homeowners
Association), and the second applicant (Balwin
Properties Limited) to
be in contempt of the adjudication order issued on 11 January 2022
and granted on 12 January 2022 in terms
of section 54 of the CSOS Act
under CSOS Reference Number 3372/GP/21, and lodged at the Gauteng
Division of the High Court, Pretoria,
on 26 May 2022 where it was
registered as an order of court in terms of section 56(2) of the CSOS
Act, under case number 28916/2022;
[30.3] The first
and second applicants are ordered to comply with paragraph 147.2,
147.3 and 147.4 of the adjudication order
issued on 11 January 2022
and granted on 12 January 2022 in terms of section 54 of the CSOS Act
under CSOS Reference Number 3372/GP/21,
within 15 days of the
granting of this order;
[30.4] In the
alternative to prayer 3 above, pending the determination of the
appeal in terms of section 57 of the CSOS Act
that the first and
second applicant are precluded from governing the scheme with respect
to short term letting, other than as provided
for by clause 21.4 of
the 2018 Conduct Rules.
[31]
The deponent to the STL owners’ answering affidavit was, Meneer
Advocate Mokgalaka who is a member of the Blyde
Scheme HOA. He
is the 12
th
applicant in the CSOS dispute and the 14
th
respondent in this application. He is also a member, and
Chairperson of the Short-Term Letting Forum, a forum of members
of
the first applicant who are engaged in STL. He stated in his
affidavit that with the appeal process stalled, the stay
application
has not been actively prosecuted by the applicants, and there was no
pending mediation. There was consequently no basis
whatsoever for the
first and second applicants to have not complied with the
adjudication order granted by the adjudicator and
the High Court
order of 26 May 2022. The STL owners did not deliver any
replying affidavit to the court in respect of their
counter
application.
[32]
Mr Mokgalaka further stated in his affidavit that a right of appeal
against an adjudication order in terms of Section
57(1) of the CSOS
Act is strictly limited only to questions of law which implies that
the factual findings of the first respondent
are final and binding on
all the parties and cannot be reconsidered in any subsequent
proceedings.
[18]
He
raised the argument that a stay application in terms of Section 57(3)
of the CSOS Act is intimately tied to the merits
of the appeal.
[33]
It is the STL owners’ submission that with the exception of Mr
Isaac Zulu whose application was dismissed by the
first respondent on
grounds of
locus
standi
,
that all the other applicants in the CSOS adjudication were
successful. It was further argued that the ownership of units in the
Blyde Scheme by these STL owners (with the exception of Mr Zulu) and
membership of the STL owners in the first applicant was not
disputed
at all by the applicants in the section 38 CSOS adjudication
proceedings. It was submitted on behalf of the STL
owners that
the
locus
standi
of the STL owners (with the exception of Mr Zulu) is a common cause
fact. The argument by the applicants however clearly
indicated
that the
locus
standi
of
the STL owners at the CSOS hearing was in dispute.
[19]
[34]
The STL owners further agree that it is common cause that from time
to time they make their units available for short-term
letting. They
contend that the characterisation of the Blyde Scheme as a family
orientated lifestyle estate is a factual issue
that has been
definitively decided against the applicants by the first respondent
at the CSOS adjudication proceedings. The first
respondent found the
Blyde Scheme to be a leisure holiday resort lifestyle estate in which
the presence of non-permanent residence
is the norm. The first
respondent further found that loud and unruly behaviour as well as
overcrowding cannot only be attributed
to short-term letting guests
alone, and that ordinary residents of the Blyde are equally if indeed
not more responsible for noise
and overcrowding at the Blyde Scheme.
[35]
The STL owners also asserted that STL is a lawful use of their
property and that the HOA’s restrictions are unreasonable
and
unlawful. They challenged the validity of meetings held in October
2021, which were used to amend the 2020 conduct rules.
They
argued that the adjudicator found in their favour in this regard.
They also raised concerns about the construction of
a hotel by Balwin
Properties, allegedly without proper consultation or approval.
[36]
It was also argued on behalf of the STL owners that neither the issue
of SPLUMA, nor the Tshwane Land Scheme was canvassed
in the CSOS
adjudication proceedings before the first respondent and that this
does not find application for the purpose of prosecuting
the appeal.
The respondents argue that clause 14(3) of the Tshwane Land Scheme,
and Table B(3) thereof specifically provides
for dwelling units,
guest houses, parking site and residential building as purposes for
which the buildings may be erected or used
or land used. It was
the respondents’ contention that there is nothing in either
SPLUMA or the Tshwane Metropolitan
Land Use Scheme that precludes the
respondents from having lodgers or tenants at their property.
STRIKING
OUT APPLICATION:
[37]
The STL owners allege that the first respondent has in the section 38
CSOS Act proceedings conclusively and correctly
determined as a
matter of fact that loud and unruly behaviour as well as overcrowding
cannot only be attributed to short-term letting
guests, and that
ordinary residents of the Blyde are equally if indeed not more
responsible for noise and overcrowding at the Blyde
Scheme. Mr
Phala, for the STL Owners argued that any attempt to deal with the
factual findings of the adjudicator other than
from the perspective
that such findings are correct and binding stand to be struck out in
terms Uniform Rules of Court 6(15) as
vexatious and/or irrelevant
and/or scandalous. As a consequence thereof they request that
paragraphs 25 – 27; 32 –
34; 42 – 45; 62 –
64; 92.4 - 92.5; 92.9 - 92.10; 95 and 109 of the applicants’
founding affidavit be struck out.
[20]
[38]
An application to strike out any matter from an affidavit is
regulated by Rule 6(15) of the Uniform Rules of Court, which
read as
follows:
“
The court may
on application order to be struck out from any affidavit any matter
which is scandalous, vexatious or irrelevant,
with an appropriate
order as to costs, including costs as between attorney and client.
The court may not grant the application
unless it is satisfied that
the applicant will be prejudiced if the application is not granted.”
[39]
Mahomed CJ in
Beinash
versus Wixley
[21]
had the following to say:
“
What is clear
from this Rule is that two requirements must be satisfied before an
application to strike out matter from any affidavit
can succeed.
First, the matter sought to be struck out must indeed be scandalous,
vexatious or irrelevant. In the second place
the Court must be
satisfied that if such matter was not struck out the parties seeking
such relief would be prejudiced.”
[40]
Firstly, the STL owners contend that any attempt to deal with factual
findings of the first respondent other than from
the perspective that
such findings are correct and binding stand to be struck out in terms
Uniform Rules of Court 6(15) as vexatious
and/or irrelevant and/or
scandalous.
[22]
The STL
owners do not set out which facts in the affidavit specifically are
scandalous, vexatious or irrelevant but seem
to suggest that all the
facts dealt with by the first respondent in the dispute proceedings
are in general scandalous, vexatious
or irrelevant. I cannot
agree with this suggestion. Whether the first respondent
enjoyed the power to act as the first
respondent did, or whether the
first respondent acted fairly or rationally or upon relevant
considerations or was biased are all
matters that cannot be
determined alone on the basis that the first respondent made an error
of law.
[23]
In my view
the hearing of the stay application cannot be dealt with adequately
without some consideration of the facts that
were placed before the
first respondent at the CSOS dispute proceedings. I am mindful that
whilst having regard to those facts,
an appeal in terms of section 57
of the CSOS Act is only in respect of a point in law. In my
view a point in law emanates
from facts that were decided on by the
first respondent and the said points in law cannot be dealt with in
isolation from the facts
placed before the first respondent at the
dispute proceedings. One has to have consideration of the facts
to consider the
applicable point in law to be decided on in the
appeal proceedings.
[41]
Secondly, the STL owners were required to allege and prove that if
any facts considered at the dispute proceedings and
referred to in
the applicants founding affidavit were not struck out that the STL
owners would suffer prejudice. The STL
owners have failed to
set out any prejudice that they may suffer if the portions of the
applicants founding affidavit they sought
to strike out are not
struck out. In the premises the STL owners
counter-application to strike out portions of the
applicants’
founding affidavit must fail and is dismissed.
CONTEMPT
OF COURT APPLICATION:
[42]
The STL owners alleged that the managing agent of the first applicant
acting on the instructions of the second applicant
has, and still is
restricting and indeed outright refusing to allow members of the HOA
to engage in STL in contravention of the
first respondents
adjudication order issued on 11 January 2022 and handed down on 12
January 2022 as well as the High Court order.
[24]
The applicants deny being served with any such orders.
[43]
In our law, the effective date of an adjudication order is typically
the date it is issued or delivered by the adjudicator,
which in this
case the date of issue of the first respondent’s adjudication
order was 11 January 2022 and the date of delivery
was 12 January
2022. The first respondent’s decision was intended to be
implemented immediately thereafter. In
order to enforce the
adjudicator’s order section 56 (2) of the CSOS Act applies.
Section 56 (2) of the CSOS Act provides
that “
if an
adjudicator’s order is for payment of an amount of money or any
other relief which is beyond the jurisdiction of the
Magistrates’
Court, the order may be enforced as if it were a judgment of the High
Court, and a registrar of the Court must,
on lodgement of a copy of
the order, register it as an order in such court.”
[44]
In
Fakie
N.O. versus CCII Systems Pty Limited
[25]
the court summarised the general requirements of civil contempt
proceedings as follows:
"42. To sum up:
1.
The civil contempt procedure is a valuable and important
mechanism for securing compliance with court orders, and survives
constitutional
scrutiny in the form of a motion court application
adapted to constitutional requirements.
2.
The respondent in such proceedings is not an ‘accused
person’, but is entitled to analogous protections as are
appropriate
to motion proceedings.
3.
In particular, the applicant must prove the requisites of
contempt (the order;
Service or notice;
non-compliance; and wilfulness and mala fides) beyond reasonable
doubt.
4.
But once the applicant has proved the order, service or
notice, and non-compliance, the respondent bears an evidential burden
in
relation to wilfulness and mala fides: should the respondent fail
to advance evidence that establishes a reasonable doubt as to
whether
non-compliance was wilful and mala fide, contempt will have been
established beyond reasonable doubt.
5.
A declarator and other appropriate remedies remain available
to a civil applicant on proof on a balance of probabilities."
[45]
The plain and simple interpretation of the wording of section 56(2)
of the CSOS Act implies that where the adjudicator
grants relief
which is beyond the jurisdiction of the Magistrates Court that the
enforcement of the adjudication order only comes
into existence once
it is lodged with registrar of the High Court who registers it as an
order of court. The further requirement
is that the High Court
order must be brought to the attention of the opposing party before
contempt of court proceedings can be
raised. It is common cause
that the High Court order was never served on the respondents and
that this order was obtained
after the applicant’s lodged their
notice of appeal on 11 February 2022. The STL owners have
further failed to prove
wilfulness and
malafides
on the part
of the first and second applicants in failing to comply with the
adjudication order. In this regard I repeat
that the
application of Mr Mohale to intervene as a party in the matter was
refused and his averments regarding the alleged contempt
of court by
the first and second applicants were not allowed as a result
thereof. In my view the STL owners’
counter
application to hold the first and second applicants in contempt of
court of failing to comply with the first respondent’s
adjudication order must also fail.
ISSUE
TO BE DETERMINED:
[46] The
founding affidavit, answering and replying affidavits deal largely
with the grounds and merits of the matter
on appeal and I do not deem
it necessary to delve into each and every argument that will be
argued on appeal by the parties.
At
this stage what I am called upon to decide on is whether there is
merit in the application to stay the adjudication order granted
on 12
January 2022, annexed as “FA1” to the applicants founding
affidavit pending the appeal against the adjudicators
order. In the
alternative whether the operation of paragraph 147.4 of the
adjudicators order granted on 12 January 2022, annexed
as “FA1”
to the applicant’s founding affidavit is stayed pending the
applicants’ appeal against the said
adjudication order.
LEGAL
PRINCIPLES:
[47]
In terms of Rule 45A of the Uniform Rules of the High Court, a 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
Superior Courts Act.
[48]
The applicants bear the onus on a balance of probabilities to prove
that they are entitled to the relief which they seek.
There is
a dispute on the papers as to whether the appeal lodged by the
applicants’ in terms of section 57(3) of the CSOS
Act relates
to a question of fact or a question of law. There is also a
dispute as to whether the first respondent was obliged
to consider
SPLUMA and the Tshwane Land Scheme when granting the
adjudication order. Further disputes arose as to whether
the
first respondent granted an order outside the scope of what the first
respondent was required to decide upon and which the
first respondent
was mandated in law to grant. The applicant contends that the first
respondent acted outside the scope of the
arbitrator’s mandate
whilst the STL owners contend that the first respondent acted within
the arbitrator’s mandate.
[49]
In
Plascon-Evans
Paints Ltd versus Van Riebeeck Paints (Pty) Ltd
[26]
the Court held the following when dealing with matters involving a
dispute of fact:
“
Ordinarily, the
Court will consider those facts alleged by the applicant and admitted
by the respondent together with the facts
as stated by the respondent
to consider whether relief should be granted. Where, however, a
denial by a respondent is not real,
genuine or in good faith, the
respondent has not sought that the dispute be referred to evidence,
and the Court is persuaded of
the inherent credibility of the facts
asserted by an applicant, the Court may adjudicate the matter on the
basis of the facts asserted
by the applicant.”
[50]
In terms of section 50
[27]
of
the CSOS Act an adjudicator must investigate an application to decide
whether it would be appropriate to make an order, and
in this process
an adjudicator must observe the principles of due process of law; and
must act quickly and with as little formality
and technicality as is
consistent with the proper consideration of the application; and must
consider the relevance of all evidence,
but is not obliged to apply
the exclusionary rules of evidence as they are applied in the civil
courts.
[28]
[51]
The functions of bodies
corporate are set out in Section 3 of the STSMA as follows:
‘
3(1)
a body corporate must perform the functions entrusted to it by or
under
this
Act or the rules and such functions include: -
(p)
to ensure compliance with any law relating to the common property or
to
any
improvement of land comprised in the common property.
(t)
in general, to control, manage and administer the common property for
the
benefit
of all owners.”
[52]
The powers of the HOA are set out in section 4 of the STSMA
[29]
which provides that the body corporate may exercise the powers
conferred upon it by or under the STSMA or the rules and such powers
include the power to do all things reasonably necessary for the
enforcement of the rules and for the management and administration
of
the common property
[53]
Section 10 of the STSMA provides as follows:
“
10. (1) A
scheme must as from the date of the establishment of the body
corporate be regulated
and managed, subject to the provisions of this Act, by means of
rules.
(2) The rules must
provide for the regulation, management, administration,
use and enjoyment of
sections and common property, and comprise—
(a)
management rules, as prescribed, which rules may subject to
the approval of the chief ombud be substituted, added to, amended or
repealed by the developer when submitting an application for the
opening of a sectional title register, to the extent prescribed
by
regulation, and which rules may be substituted, added to, amended or
repealed by unanimous resolution of the body corporate
as prescribed;
and
(b) conduct rules, as
prescribed, which rules may, subject to the approval of the chief
ombud, be substituted, added to, amended
or repealed by the developer
when submitting an application for the opening of a sectional title
register, and which rules may
be substituted, added to, amended or
repealed by special resolution of the body corporate, as prescribed:
Provided that such conduct
rules may not be irreconcilable with any
prescribed management rule contemplated in paragraph (a).
(3) The
management or conduct rules contemplated in subsection (2) must be
reasonable and apply equally to all owners of units.
(4) The management or
conduct rules referred to in subsection (2) take effect
from
the date of establishment of the body corporate in respect of the
building
or buildings and land concerned, and bind the body corporate and
the
owners of the sections and any person occupying a section.
(5) (a) If the
management or conduct rules contemplated in subsection (2) are
substituted, added to,
amended or repealed, the developer or the body corporate must lodge
with the chief ombud a notification in
the prescribed form of such
substitution, addition, amendment or repeal.
(b) The chief ombud
must examine any proposed substitution, addition, amendment or repeal
referred to in paragraph (a) and must
not approve it for filing
unless he or she is satisfied that such substitution, addition,
amendment or repeal is reasonable and
appropriate to the scheme.
(c) If the chief
ombud approved the substitution, amendment or repeal of rules for
filing, he or she must issue a certificate
to that effect.
(d) A substitution,
addition, amendment or repeal of rules contemplated in paragraph (a)
comes into operation on the date of the
issuing of a certificate
contemplated in paragraph (c) or the opening of the sectional title
register for the scheme, whichever
is the latest.”
[54]
Section 57 of the CSOS Act provides as follows:
“
57. (1)
An applicant, the association or any affected person who is
dissatisfied by an adjudicator’s order, may appeal
to the High
Court, but only on a question of law.
(2) An appeal
against an order must be lodged within 30 days after the date of
delivery of the order of the adjudicator.
(3) A person who
appeals against an order, may also apply to the High Court to stay
the operation of the order appealed against
to secure the
effectiveness of the appeal.”
PROSPECTS
OF SUCCESS ON APPEAL:
[55]
The applicants allege various grounds of appeal against the first
respondent’s adjudication order which they intend
on arguing on
appeal. I do not intend on delving into each and every ground
of appeal but will deal specifically with the
applicants grounds
which in my view may result in the appeal court coming to a different
finding on the law. It is common
cause between the parties that
neither the provisions of the Scheme nor SPLUMA were traversed before
the first respondent. The
applicants contend that this is a
material misdirection by the first respondent and gives rise to the
mistakes of law that permeate
through the award. In terms of
section 50 of the CSOS Act an adjudicator must investigate an
application to decide whether
it would be appropriate to make an
order. The applicants contend that this includes an
investigation into the applicability
of SPLUMA and the Tshwane Land
Scheme which should have been within the knowledge of the first
respondent. I am of the view
that when taking section 50 of the
CSOS Act into consideration there may be a possibility that the
appeal court may find that the
first respondent was in law required
to investigate the applicability of SPLUMA and the Tshwane Land
Scheme which it is common
cause between the parties that the first
respondent failed to do.
[56] The applicants
further allege that the first respondent granted an order declaring
the 2021 conduct rules as unreasonable
and after setting aside the
2021 conduct rules ordered that the parties must implement the 2018
conduct rules. The fourth
to eighty-fourth respondents dispute
that the first respondent acted outside the first respondent’s
mandate. In the
matter of the
National
Director of Public Prosecutions versus Zuma
[30]
the
Supreme Court of Appeal held that the judicial function of a judicial
officer is to confine the judgment to the issues
before the court; by
deciding matters that are germane or relevant; by not creating new
factual issues; or by making gratuitous
findings against persons who
were not called upon to defend themselves and by failing to
distinguish between allegation, fact and
suspicion.
[57]
In terms of section 10(1) read with 10(2) of the STSMA the first and
second applicants were obliged to substitute to,
add to, amended to
or repeal by unanimous resolution of the body corporate the conduct
rules of the Body Corporate. In the
present matter it appears
ex facie
the papers that the first respondent may have acted
outside the first respondent’s scope as an adjudicator in
ordering the
following instead of referring the matter back to the
HOA to apply the provisions of section 10(2) of the STSMA:
[57.1] the relief
sought in terms of section 39(3)(d) of the CSOS Act for an order
declaring that the Blyde Scheme governance
provision clause 21.4 of
the 2020 conduct rules, having regard to the interests of all owners
and occupiers in the scheme, is unreasonable,
was granted.
[57.2] the HOA was
ordered in terms of section 39(3)(d)(iii) of the CSOS Act to amend
clause 21.4 of the 2020 conduct rules
by approving and recording a
new clause identical to clause 21.4 of the 2018 conduct rules to
bring the offending clause in line
with the spirit and purport of the
STSMA and the Constitution of the HOA.
[58]
I make the aforementioned finding based on the common cause fact
between the parties that both clause 21.4 the 2018 conduct
Rules as
well as the 2020 conduct rules was confirmed and approved of by CSOS
in terms of section 4(1)(c) of the CSOS Act
[31]
read with sections 10(5)(b) read with 10(5)(c) of the STSMA. The
first respondent in paragraph 147.4 of the adjudication
order did not
provide the HOA with an opportunity to deal with the amendment of
clause 21.4 of the 2020 conduct rules in terms
of section 10(2) of
the STSMA by unanimous resolution of the HOA but rather elected to
substitute the 2021 conduct rules with an
order that clause 21.4 of
the 2020 conduct rules be amended by approving and recording a new
clause identical to clause 21.4 of
the 2018 conduct rules to bring
the offending clause in line with the spirit and purport of the STSMA
and the constitution of the
HOA. This order in principle may
have the effect of interfering in the HOA’s power to properly
apply section 10(2)
of the STSMA and may be an aspect in law which
the appeal court may come to a different finding.
[59]
Furthermore, for the first respondent to subsequently regard clause
21.4 of the 2020 conduct rules as unreasonable is
contrary to the
earlier CSOS approval of the said conduct rule. Having regard to this
there may be some prospect of success of
the applicants’ on
appeal on this point.
STAY
APPLICATION:
[60]
For CSOS adjudication orders, an appeal must be lodged within 30 days
of the delivery date of the adjudication order.
The
applicants in this matter timeously lodged their appeal against the
first respondents adjudication order on 11 February 2022
and
therefore I am satisfied that there is an appeal pending. The
STL owners contend that there has been a delay in the prosecuting
of
the appeal by the applicants and that the record has not been
properly constructed. At the time of the hearing of the
matter
counsel for the second and third applicants submitted that the
recording had been properly constructed and that the appeal
must now
be set down for hearing.
[61]
In considering the stay application I am mindful that section 57(1)
of the CSOS Act only permits an appeal by a party
on a question of
law. However, section 57(3) of the CSOS Act makes it clear that
a person who appeals an order of the adjudicator
may also apply to
the High Court to stay the operation of the order.
[32]
Having regard to section 57(1) of the CSOS Act this stay application
cannot be in respect of an appeal on the merits of the
case but only
in respect of an appeal on a question of law. I therefore
cannot agree with Mr Mokgalaka’s submission
in his answering
affidavit that a stay application in terms of Section 57(3) of the
CSOS Act is intimately tied to the merits of
the appeal and therefore
cannot be entertained.
[33]
[62] It was also
argued by Mr Phala, on behalf of the STL owners that the CSOS Act no
longer applies to the stay application
as the first respondents’
adjudication order was already made an order of the High Court.
Firstly, Rule 45A of the
Uniform Rules of Court empower this court to
stay any order of court. Secondly, an appeal of an adjudicators
order from CSOS
in terms of section 57(2) of the CSOS Act which has
subsequently been made an order of the High Court in the strict sense
should
be dealt with under
section 18
of the
Superior Courts Act 10
of 2013
.
[34]
In the
present matter that the first respondent’s adjudication order
was made an order of court by the High Court on
26 May 2022.
[35]
[63]
Section 18
of the
Superior Courts Act deals
with the operation and/or
execution of an order pending an application for leave to appeal or
appeal and is as follows:
“
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.
(2)
Subject to subsection (3), unless the court under exceptional
circumstances orders otherwise,
the operation and execution of a
decision that is an interlocutory order not having the effect of a
final judgment, which is the
subject of an application for leave to
appeal or of an appeal, is not suspended pending the decision of the
application or appeal.
(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.”
[64]
Thus the respondent can in terms of
section 18(3)
of the
Superior
Courts Act only
request a stay to not be granted if :
[64.1] the respondent
makes application for such request; and
[64.2] exceptional
circumstances exist therefore.
[65]
A reading of section 18(1) of the Superior Court Act
[36]
provides for the operation and execution of a decision which is the
subject of an application for leave to appeal or of an appeal
to be
suspended pending the decision of the application or appeal. By
implication thereof, this would mean that the operation
and execution
of the adjudicators order which is the subject matter of this appeal
is to be suspended pending the outcome of the
appeal. This
would in effect result in clause 21.4 of the 2021 conduct rules being
applicable pending the finalisation of
the appeal. I am mindful of
the prejudice that a stay of the first respondent’s
adjudication order may have on the STL owners
and their ability to
earn an income from STL if clause 21.4 of the 2021 were to be
applicable pending the finalisation of the appeal
proceedings.
I have also taken into account that at the time of hearing of the
matter there was still STL letting allowed
by the first and second
applicants subject to the STL owner’s entering into STL
agreements with the HOA. Although the
fourth to eighty-fourth
respondents have argued that this amounts to contempt of court in
respect of the first respondent’s
adjudication order, if one
puts into operation section 18 of the Superior Court’s Act the
stay of the first respondent’s
adjudication order would be by
operation of the law and the first and second applicants could not be
in held in contempt of the
first respondent’s adjudication
order.
[66]
Mr Phala’s submission that this court is no longer empowered to
make an order to stay the first respondent’s
adjudication order
as the CSOS Act is no longer applicable since the adjudication order
was made an order of the High Court is
also without merit.
Section 56(1) of the CSOS Act clearly sets out that CSOS orders may
be enforced or executed as if it
is an order of the Magistrates’
Court or High Court, whichever is applicable, and thus it must follow
that I am empowered
in this court to stay the first respondent’s
adjudication order.
[37]
[67]
If I were to apply section 18 of the Superior Court Act to the
present case a stay of the first respondent’s adjudication
order is by operation of the law and any stay order would merely have
the effect of confirming the stay of the execution of the
first
respondents adjudication order as well as the terms of the stay of
the said adjudication order. In the present case the respondent
has
applied that the stay application be dismissed, however I cannot find
that exceptional circumstances exist not to stay the
first
respondent’s adjudication order.
[38]
A fair and reasonable order to all parties in the present case
would be in line with the alternative relief sought
by the applicants
in their notice of motion that the operation of paragraph 147.4 of
the adjudicators order granted on 12 January
2022, annexed as “FA1”
to the applicant’s founding affidavit is stayed pending the
applicant’s appeal against
the first respondent’s
adjudication order. Since the 2020 conduct rules were approved
by the CSOS ombud prior to the
dispute that these rules should apply
to the parties pending the finalisation of the appeal.
Having regard to the rights
of the STL owners as property owners and
the financial impact that a total prohibition may have on STL owners
pending the finalisation
of the appeal, I am of the view that the
applicants have proved to this court on a balance of probabilities
that the applicants
are entitled to the alternative relief sought in
the notice of motion. The main relief is thus refused and the
alternative
relief of the applicants as sought is granted.
COSTS:
[68]
The applicants seek a costs order against the STL owners due to the
fact that this matter was opposed. It was argued
by the
applicant that there were many attempts to mediate this matter and
the stay application without success. If one has
to take into
consideration that
section 18
of the
Superior Courts Act provides
for
the operation and execution of the first respondent’s
adjudication order to be stayed pending an appeal, then one would
have to consider that the stay application was not necessary but
given the parties inability to mediate this matter amicably this
necessitated the current stay application. As a consequence
thereof the applicant lodged this stay application necessitating
additional costs.
[69]
The Fourth to eighty-fourth respondents as stated earlier did not
hold a joint pre-trial in the matter prior to hearing
to limit the
issues between the parties. The heads of argument was filed
late and two intervention/ joinder applications
by Mr Le Roux and Mr
Mohale were also lodged late necessitating the applicants to respond
thereto. In my view given the fact
that the STL owners were
unsuccessful in this matter on both the counter claim and the stay
application that costs should be granted
against them. Two
senior level counsel were employed by the applicants to attend to the
volume of the stay application, intervention
applications and counter
application papers. Many issues were raised during this stay
application which required both of
the applicants’ counsel to
address. I am satisfied that costs be granted in favour of the
applicants, which include the costs
of two counsel on scale C.
ORDER:
[70]
I therefore make the following order:
[70.1] Condonation
for the late filing of the fourth to eighty fourth respondents
(referred to as the fourth to eighty-seventh
respondents in the
answering affidavit) is granted;
[70.2] The joinder
application of Mr Abraham Le Roux is dismissed with no order as to
costs;
[70.3] The joinder
application of Mr Mohale is dismissed with no order as to costs.
[70.4] The fourth
to eighty-fourth respondents’ (referred to as the fourth to
eighty-seventh respondents in the answering
affidavit) counter
application in respect of the striking out application is dismissed.
[70.5] The fourth
to eighty-fourth respondents’ (referred to as the fourth to
eighty-seventh respondents in the answering
affidavit) counter
application in respect of the first and second applicants contempt of
court is dismissed.
[70.6] That the
operation of paragraph 147.4 of the first respondent’s order
issued on 11 January 2022 and granted on
12 January 2022 annexed as
“FA1” to the applicants’ founding affidavit is
stayed pending the finalisation of
the applicant’s appeal
against it.
[70.6] That pending
the finalisation of the appeal clause 21.4 of the 2020 conduct rules
of the Blyde Riverwalk Home-Owners
Association must be applied by the
parties.
[70.7] The fourth
to eighty-fourth respondent (referred to as the fourth to
eighty-seventh respondents in the answering affidavit)
are ordered to
pay the costs of the stay application, which includes the costs of
two counsel on scale C, jointly and severally,
payment by one to
absolve the other.
M NAIR
ACTING JUDGE OF THE HIGH
COURT
JOHANNESBURG
Date
of appearance: 21 May 2025
Date
Judgment delivered:12 September 2025
Appearances:
For
the 1
st
Applicant:
No
appearance
For
the 2
nd
and 3
rd
Applicants:
Instructed
by:
Tel:
Email
address:
Adv
AC Botha SC
Adv
AW Pullinger
Brian
Kahn Inc Attorneys
011-577
600
brian@briankahn.co.za
michelle@briankahn.co.za
jenniferdf@briankahn.co.za
For
the fourth to eighty-fourth respondents:
Instructed
by:
Email:
Mr
Phala
LNM
Attorneys
lekwee@lnmattorney.co.za
rmphala@lnmattorneys.co.za
lnmattorneys@gmail.com
[1]
See
Mr Mohale’s joinder application Court Bundle 037-5
[2]
See
Applicants’ heads of argument 019-1 and Respondents’
heads of argument 020-1
[3]
South African History Archive Trust versus South African Reserve
Bank
2008 (4) SA 63
(SCA); City of Johannesburg Metropolitan
Municipality versus Blue Moonlight Properties 39 (Pty) Ltd and
Another; Amalgamated
Engineering Union versus Minister of Labour)
[4]
Applicants
founding affidavit 001-167
[5]
Applicants’
founding affidavit 001-21 and 001-23 paragraph 39
[6]
Applicants’
founding affidavit 001-23
[7]
Applicants
founding affidavit 001-23
[8]
Applicants’
founding affidavit 001 – 25 at par 47 to 48
[9]
Applicants’
founding affidavit 001 - 33
[10]
Applicant’s
founding affidavit 001-201
[11]
Applicants
founding affidavit 001-27
[12]
Fourth to eighty-fourth respondents answering affidavit 011-13 and
011-20
[13]
Applicants’
replying affidavit on page 015 – 13 of the record
[14]
Applicants’
replying affidavit on oage 015 – 22 of the record
[15]
Fourth
to eighty-seventh respondents’ answering affidavit 011-14
[16]
Fourth
to eighty-seventh respondents’ answering affidavit 011-64 to
011-67
[17]
Fourth
to eighty-seventh respondents answering affidavit 011-23
[18]
Fourth
to eighty-fourth respondents’ answering affidavit 011-25 par
19
[19]
Fourth
to eighty-fourth respondents’ answering affidavit 011-27
[20]
Fourth to eighty-fourth respondents’ answering affidavit
011-29; 011-31; 011-33 and 011-40
[21]
Beinash versus Wixley
[1997] ZASCA 32
;
1997 (3) SA 721
(SCA) at 733A-B.
[22]
Fourth
to eighty-fourth respondents’ answering affidavit 011-48
[23]
The position is similar in review matters as was considered in the
unreported matter of Turley Manor Body Corporate versus Pillay
and
Others 10662/18) [2020] ZAGPJHC 190 (6 March 2020) at par 18
[24]
Fourth
to eighty-fourth respondents’ answering affidavit 011-21
[25]
Fakie N.O. versus CCII Systems Pty Limited
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) at
[42]
[26]
Plascon-Evans Paints Ltd versus Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634E-635C, discussed and
approved in Rail Commuters Action Group and Others versus Transnet
Ltd t/a Metrorail and Others
[2004] ZACC 20
;
2005 (2) SA 359
(CC); 2005 (4) BCLR 301 (CC) at para 53
[27]
Section 50 of the CSOS Act provides as follow:
“
Investigation by
adjudicator 50. The adjudicator must investigate an
application to decide whether it would be appropriate
to make an
order, and in this process the adjudicator—
(a)
must observe the principles of due process of law; and
(b)
must act quickly, and with as little formality and technicality as
is consistent with a proper consideration of the application;
and
(c)
must consider the relevance of all evidence, but is not obliged to
apply the exclusionary rules of evidence as they are applied
in
civil courts”
[28]
Section
50(1); 50(2) and 50(3) of the CSOS Act
[29]
Section 4 of STSMA provides as follows:
“
4.
The body corporate may exercise the powers conferred upon it by or
under this Act or the rules and such powers include the
power: -(i)
To do all things reasonably necessary for the enforcement of the
rules and for the management and administration
of the common
property”
[30]
National Director of Public Prosecutions versus Zuma
[2009] ZASCA 1
;
2009
(2) SA 277
(SCA);
2009 (1) SACR 361
(SCA); 2009 (4) BCLR 393
(SCA); [2009] 2 All SA 243 (SCA)
[31]
Section 4 of the Community Schemes Ombud Services Act provides
as follows:
“
Functions
of Service
Section
4. (1) The Service must— (a) develop and provide a dispute
resolution service in terms of this Act;
(b)
provide training for conciliators, adjudicators and other employees
of the Service;
(c)
regulate, monitor and control the quality of all sectional titles
scheme governance documentation and such other scheme governance
documentation as may be determined by the Minister by notice in the
Gazette; and
(d)
take custody of, preserve and provide public access electronically
or by other means to sectional title scheme governance
documentation
and such other scheme governance documents as may be determined by
the Minister by notice in the Gazette.”
[32]
The unreported matter of The Body Corporate of Central Square versus
SS 661/2917 versus Penelope Bexk- Paxton N.O and Three Others
of the
South Gauteng High Court seated in Johannesburg under case no
30916/2021 delivered on 2 August 2021 by Kollapen J.
[33]
Fourth
to eighty-fourth respondents answering affidavit 011-26 par 19.2
[34]
The unreported case of Conrad v Key West Body Corporate (55262/2021)
[2022] ZAGPPHC 508 (28 June 2022) at par 19
[35]
Fourth to eighty-fourth respondents answering affidavit 011-13 and
011-20
[36]
Superior Courts Act 10 of 2013
[37]
Enforcement of orders in terms of the CSOS Act:
“
Section
56. (1) If an adjudicator’s order is for the payment of an
amount of money or any other relief which is within the
jurisdiction
of a magistrate’s court, the order must be enforced as if it
were a judgment of such Court and a clerk of
such a Court must, on
lodgement of a copy of the order, register it as an order in such
Court. (2) If an adjudicator’s
order is for the payment of an
amount of money or any other relief which is beyond the jurisdiction
of the magistrate’s
court, the order may be enforced as if it
were a judgment of the High Court, and a registrar of such a Court
must, on lodgement
of a copy of the order, register it as an order
in such Court.
[38]
Conrad v Key West Body Corporate (55262/2021) [2022] ZAGPPHC 508 (28
June 2022) at par 20
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