Case Law[2025] ZAGPJHC 1079South Africa
Paramount Property Fund and Another v New Africa Capital Group (2023/128784) [2025] ZAGPJHC 1079 (23 October 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
23 October 2025
Headnotes
in abeyance.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
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## Paramount Property Fund and Another v New Africa Capital Group (2023/128784) [2025] ZAGPJHC 1079 (23 October 2025)
Paramount Property Fund and Another v New Africa Capital Group (2023/128784) [2025] ZAGPJHC 1079 (23 October 2025)
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sino date 23 October 2025
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REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case
number: 2023-128784
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
In the matter between:
PARAMOUNT
PROPERTY FUND
First Applicant
GROWTHPOINT
MANAGEMENT SERVICES (PTY) LTD
Second Respondent
and
NEW
AFRICA CAPITAL
GROUP
Respondent
JUDGMENT
Mfenyana J
Introduction
[1]
The applicants seek an order for the eviction of
the respondent from the commercial premises described as Portion of
Lower Ground
Floor, 1 Sixty J[…] S[…], situated at 1[…]
J[…] S[…] Avenue, […], Johannesburg (the
property).
The first applicant had concluded a lease agreement
with the respondent on 26 July 2022. On 27 November 2023, the first
applicant
cancelled the agreement, citing the respondent's failure to
pay rental and ancillary expenses due to the first applicant in terms
of the lease agreement.
[2]
The respondent opposed the application and filed
the answering affidavit two months out of time. For this, the
respondent seeks
condonation, which is opposed by the applicants. The
respondent also seeks leave to file a supplementary affidavit in
answer to
the applicants’ replying affidavit. On the other
hand, the applicants seek condonation for the late filing of their
replying
affidavit, which was filed one day out of time.
[3]
It is necessary to consider the merits of the condonation
applications filed in respect of both the applicants and the
respondent.
The
respondent’s condonation application
[4]
The answering affidavit is deposed to by Mr Daniel
Besong (Mr Besong), who asserts that he is a director of the
respondent, duly
authorised to depose to the answering affidavit. He
does not provide any further details in relation to his authority to
act on
behalf of the respondent.
[5]
Relevant to the condonation application, Mr Besong
acknowledges that the answering affidavit should have been filed on 5
February
2024. It was, however, filed on 2 May 2024, a delay of
close to two months. Mr Besong states that on 5 February 2024, the
applicants initiated settlement negotiations, which continued until
22 March 2024. He avers that for this reason, legal proceedings
were
held in abeyance.
[6]
When the settlement negotiations did not yield the
desired results, the respondent called upon the applicants to produce
certain
documents in accordance with rule 35(12), which would enable
the respondent to file its answering affidavit. These documents range
from documents confirming the handover of the property by the
applicants to the respondent, electricity and water readings for
the
property and the common area from date of occupation to date of
cancellation, the generator costs for the property and the
property
assessment rates from date of occupation to date of cancellation. The
applicants did not provide the documents specified
in the rule 35
(12) notice and set the matter down on the unopposed roll for hearing
on 13 May 2024.
[7]
On 2 May 2024, the respondent filed its answering affidavit.
[8]
Mr Besong contends that the delay is minimal, being 22 days out of
time, and thus condonation ought to be granted. He
further avers that
“there was clearly never any disregard of the Rules” of
court, rather, there was a genuine effort
to file the answering
timeously. He does not provide any details to support this
contention, bearing in mind that in terms of the
Rules, the answering
affidavit should have been delivered by 5 February 2024.
[9]
Mr Besong further avers that it is obvious that this matter is
important to the respondent. He goes on to state that the
deponent to
the founding affidavit lacks the
locus standi
to depose to the
founding affidavit. He further avers that the cancellation of the
lease agreement by the first applicant is unlawful,
as there was no
amount owing. Instead, the respondent had paid in excess of its
obligations to the respondents, he avers. Importantly,
he avers that
the parties’ obligations were suspended due to impossibility of
performance.
[10]
The respondent thus avers that it has a legitimate case and would
suffer irreparable harm if condonation is not granted,
as it would be
barred from properly addressing the applicants’ contentions,
while the applicants would not suffer any prejudice.
[11]
The respondent asserts strong prospects of
success, arguing it has an unassailable defence: specifically, that
the deponent lacks
locus standi
for failing to provide a resolution authorising this application. The
respondent further states that it could not obtain a liquor
licence
despite meeting all requirements until 15 February 2024, and was thus
unable to use the premises as intended for a restaurant
and music
lounge. The respondent claims this situation constitutes legal
impossibility, which either extinguishes or suspends reciprocal
obligations. Notably, the respondent argues that if performance under
the lease agreement was unlawful at the time of cancellation,
then
terminating the lease due to an alleged breach would also be
unlawful. The respondent alternates between arguments of
impossibility
of performance and unlawfulness of performance,
contending that the applicant’s reliance on a breach, while the
lease was
suspended, is unlawful.
[12]
In opposing the condonation application, the applicants contend that
the respondent has failed to provide a reasonable
explanation for the
delay of almost three months, and not 22 days as the respondent
suggests. In this regard, the applicants argue
that there was no
agreement between the parties to suspend the time periods for the
filing of the respondent’s answering
affidavit, which was due
on 5 February 2024. The applicants, in essence, aver that the
respondent’s explanation is factually
incorrect, as the
settlement negotiations collapsed on 14 March 2024 and not on 22
March as alleged by the respondent.
[13]
The applicants, however, point to a different time from 13 to 15
February 2024, when the applicants agreed to suspend
legal
proceedings. During this time, contend the applicants, the respondent
had given an undertaking, but later failed to adhere.
On that basis,
the applicants on 21 February 2024 applied for a hearing date on the
unopposed roll, having advised the respondent
that it would do so in
the event the respondent did not adhere to its undertaking.
The
applicants question why the respondent chose not to raise, at that
stage, the existence of an agreement to suspend the proceedings.
Discussion
[14]
It is trite
that condonation will not be had for the mere asking
[1]
.
An applicant for condonation seeks indulgence from the court. Such
applicant must set out fully and comprehensively the reasons
for the
delay in not only timeously delivering the (answering affidavit), but
also the delay in seeking condonation for non-compliance.
[2]
The
respondent in this application glibly states that it should be
granted condonation partly on the basis that the reasons why
the
matter is important to it are obvious. That is not sufficient.
It is not for the court to guess the importance of a matter
to a
party, assuming that each matter is important to the parties
involved. The importance of the matter in the context of good
cause
pertains to the novelty of the issue or issues raised in the matter.
There are no such issues in this matter.
[15]
A rather disturbing aspect of the respondent’s
bid is that it maintains that the delay is not inordinate, as it
filed its
answering affidavit on 30 April 2024. It further
maintains that the answering affidavit was filed 22 days out of time.
This
is incorrect. An email from the respondent’s attorneys to
the applicant’s attorneys confirms that the answering affidavit
was served on 2 May 2024. It is also difficult to understand how the
respondent arrived at a total of 22 days from 5 February 204
to 2 May
2024. On any interpretation, the calculation is incorrect.
[16]
Even on the respondent’s version, it is
worth noting
that at the time the respondent avers an
agreement was reached to suspend legal proceedings, the
dies
for the filing of the respondent’s answering affidavit had
already lapsed. It is not the respondent’s case that the
agreement was reached in relation to its non-compliance between 5
February 2024 and the time the negotiations commenced. The answering
affidavit sheds no light on this period, which, in my view, is
crucial. This downplaying of the extent of the delay, which in my
view is inordinate, by the respondent renders his explanation not
only improbable but also mendacious. What exacerbates the
respondent’s
situation is that Mr Besong, who deposed to the
answering affidavit, is also the attorney of record of the
respondent. As such,
he ought to have been privy to the correct facts
of the matter. Whatever the reason behind the respondent’s
explanation,
it falls short of the requirements for condonation as
set out in Rule 27.
[17]
A party seeking condonation seeks an indulgence from the court. Thus,
that party ought to take the court into its confidence
and state
fully and honestly the reasons for its non-compliance. That party
must show good cause. In this regard, the respondent
merely states
that it has good prospects of success, presumably because the first
applicant was not entitled to cancel because
the respondent had
internal problems and thus the cancellation was unlawful. Nothing
could be further from the truth. Taking into
account the inordinate
delay, the inadequate explanation by the respondent, the prospects of
success and the importance of this
case, no good cause has been
shown. No plausible explanation which covers the entire
duration of the delay was proffered
by the respondent.
[18]
It is well established that if, when
considered in totality, the facts make an application for condonation
clearly unworthy of consideration,
the court is not obliged to
consider the prospects of success. In this case, not only is that so,
but the applicant has also demonstrated
no such prospects of success.
The inevitable conclusion is that the applicant either flagrantly
breached the Rules of Court or
cannot provide any explanation for the
delay. In these circumstances, the application for condonation is
bound to fail.
[19]
Having found no merit to the respondent’s
condonation application, the adjudication of the applicants’
condonation application
in respect of the filing of their replying
would be academic and serve no purpose.
[20]
The applicants contend that the lease agreement
was for a duration of two years, from 1 September 2022 to 31 August
2024. The terms
of the lease agreement are not in dispute.
[21]
The applicants contend that the respondent failed
to pay amounts due in terms of the lease agreement and was in arrears
in the amount
of R111 646.07 on 10 November 2023. The first applicant
caused a letter of demand to be delivered to the respondent for
payment
of the arrears within seven days.
When
the respondent failed to remedy the breach, the first applicant
delivered a letter of cancellation to the respondent on 27
November
2023, demanding that the respondent immediately vacate the property.
[22]
The first applicant contends that it lawfully
cancelled the lease agreement in accordance with its provisions. In
this regard, clause
26.1 of the lease agreement entitles the first
applicant to cancel the lease agreement if the respondent commits a
breach and fails
to remedy such breach within seven days or such
longer period as may be reasonable in the circumstances. Despite
this, the
respondent refused to vacate the property and remained in
occupation, prompting the applicants to bring this application
seeking
to evict the respondent and all persons who occupy the
premises through the respondent.
[23]
The applicants, therefore, assert that the
respondent's occupation of the property is unlawful, and they no
longer wish for the
respondent to remain in occupation of the leased
premises.
They further allege that, in
accordance with the lease agreement, the respondent is liable for the
costs of this application on
an attorney-and-client scale.
[24]
The version placed by the applicants before this court is clear and
unambiguous, that the respondent has failed to comply
with its
obligations in terms of the lease agreement and has failed to meet
the applicant’s demand and remedy its breach
within seven days
as stipulated in the lease agreement. After the applicant cancelled
the lease agreement, there was no valid reason
for the respondent to
continue occupying the premises. Moreover, the applicants state that
the lease agreement has, in any event,
run its course. All the
documentary evidence supports the applicant’s version. In my
view, the applicant has made out a case
for the granting of the
relief sought. The respondent’s continued occupation of the
leased premises is unlawful.
Order
[25]
In the result, I make the following order:
a.
The respondent’s application for
condonation for the late filing of the answering affidavit is
dismissed.
b.
The respondent and all persons occupying
the premises through or under the respondent are directed to vacate
the premises situated
at Portion of Lower Ground Floor, 1 Sixty J[…]
S[…], 1[…] J[…] S[…] Avenue, R[…],
Johannesburg,
within seven (07) days of this order and allow the
applicant vacant possession of the premises.
c.
Should the respondent and all persons
occupying the premises through or under the respondent fail to vacate
the premises within
the time stipulated in b. above, or enter the
premises after the expiry of seven days aforementioned, the Sheriff
of this court
or his duly authorised deputy, duly assisted by members
of the South African Police Service (SAPS), if necessary, is
authorised
and directed to take the necessary steps to eject the
respondent and all persons occupying through or under the respondent,
from
the premises situated at Portion of Lower Ground Floor, 1 Sixty
J[...] S[...], 1[...] J[...] S[...] Avenue, R[...], Johannesburg.
d.
The respondent is ordered to pay the costs
of this application on an attorney and client scale.
S MFENYANA
Judge of the High Court
Johannesburg
Appearances
For the
applicant:
Adv G J A Cross instructed by NHL Inc.
gareth@lazattorneys.com
For the
respondent:
No appearance
Date of
hearing:
30 May 2025
Date of
judgment:
23 October 2025
[1]
See
in this regard:
Uitenhage
Transitional Local Council v South African Revenue Service
2004(1) SA 292 (SCA).
[2]
Mulaudzi
v Old Mutual Life Assurance Company (South Africa) Limited
2017(6) SA 90 (SCA).
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