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# South Africa: South Gauteng High Court, Johannesburg
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## HI-Q Automotive (Pty) Ltd v Erga Investments (Pty) Ltd (2024-011267)
[2024] ZAGPJHC 160 (21 February 2024)
HI-Q Automotive (Pty) Ltd v Erga Investments (Pty) Ltd (2024-011267)
[2024] ZAGPJHC 160 (21 February 2024)
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sino date 21 February 2024
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG
LOCAL DIVISION, JOHANNESBURG
CASE
NO
: 2024-011267
1.
REPORTABLE:
NO
2.OF
INTEREST TO OTHER JUDGES: NO
3.
REVISED
22 February 2024
In the matter between:
HI-Q
AUTOMOTIVE (PTY) LTD
Applicant
And
ERGA
INVESTMENTS (PTY) LTD
First Respondent
JUDGEMENT
MAIER-FRAWLEY j:
[1].
This is an urgent
application in which the applicant seeks an order for the eviction of
the first respondent from commercial leased
premises, confirmation of
its cancellation of a written sub-lease agreement concluded between
the parties, and ancillary relief.
[2].
The
respondent contended that the matter was not urgent. After hearing
argument, I ruled that the matter was urgent and indicated
that my
reasons therefore would follow in this judgment. It is trite that
commercial interest, like any other interest, may found
urgency,
given the circumstances of a particular case.
[1]
'
In
CEZ
Investment (Pty) Ltd v Wynberg Auto Body (Pty) Ltd
(41475/2018)
[2021] ZAGPJHC 499 (29 September 2021)
paras
22 & 23, the following was said:
“
In
dealing with a similar situation as that in the present matter
concerning urgency in the circumstances where there was an offer
to
lease the property by a third party, Matojane J, in the unpublished
judgment of
Elkam (Pty) Limited v
Ferej, Tariku Nure trading as Magnum General Trading, The Occupants
of Shop I, Cumberland Court, 9 Pretoria
Street, Hillbrow,
Johannesburg
,
said:
‘
[18]
In the circumstances, I find that the matter is urgent because by the
time this application would be heard in the ordinary
course the
applicant could have lost Chicken Licken as a tenant
.’
The
same approach was adopted by Adams J, in the unpublished judgement in
Silverbalde
Investment (Pty) Ltd v Bay Tower Properties 247 (Pty) Ltd Lanoman and
Others
,
https://www.saflii.org/za/cases/ZAGPJHC/2021/499.html
- _ftn5
where
the court in dealing with urgency said:
‘
[10]
This then brings me to the issue of urgency. The first respondent
contends that the applicant's urgent application should be
dismissed
due to non-compliance with practice directives applicable in this
division. Closely linked to this contention is the
first respondent's
submission that the application should fail for lack of urgency. I do
not agree with these submissions for the
simple reason that the
applicant's case for the eviction of the first respondent is
overwhelming. It would not be in the interest
of justice not to grant
the applicant the eviction order, especially if regard is had to the
fact that, according to the uncontested
evidence of the applicant
that it stands to lose out on a new lease agreement with a new
tenant, who has indicated that he would
conclude a lease agreement
with the applicant provided he be given occupation during January
2018
.’
I
align myself with the above authorities and thus in the
circumstances, I was satisfied that this matter was sufficiently
urgent
to be enrolled and be heard as an urgent application.”
[3].
The respondent had
fallen into arrears with its rental payment obligations under a
written sub-lease agreement concluded with the
applicant, which
prompted the applicant to cancel the sub-lease on notice to the
respondent, as it was entitled to do in terms
of the sub-lease. The
terms of the sub-lease were not in dispute on the papers. The last
time the respondent paid rental under
the sub-lease was December
2022. As from January 2023, it fell into arrears. The applicant
however remained obliged to pay rental
and other charges to the
Landlord under a written principal lease agreement concluded between
the applicant and the Landlord. The
essentially translated into a
huge financial loss being incurred by the applicant monthly, given
the amount of rental (excluding
other amounts) which was payable
monthly under the sub-lease (approximately R164,000,00 in 2023) and
given that the applicant remained
obliged to pay rental and other
amounts monthly to the Landlord under the principal lease. The amount
of the arrears increase incrementally
each month that the respondent
fails to pay rental whilst it continues to occupy the leased premises
unlawfully pursuant to the
cancellation of the sub-lease on 15
September 2023. This has led to the applicant essentially bankrolling
the respondent’s
use and occupation of the leased premises, to
its obvious financial prejudice. Moreover, the applicant stands to
lose a potential
paying tenant who had signed a written intention to
lease the premises, subject to it being afforded vacant occupation.
The loss
of a potential paying tenant in similar circumstances has
been recognised as a ground of urgency in several cases in this
division,
as is apparent from
CEZ
Investment, supra.
In the circumstances, I considered the matter sufficiently urgent to
be entertained on its merits, which overwhelmingly favour
the
applicant, as will appear from the discussion below.
[4].
Salient common
cause undisputed or unrefuted background facts include the following:
The applicant is the lessee under a written
principal lease agreement
concluded on 18 November 2021 with two companies as the Landlord. The
principal lease was to endure for
5 years, commencing on 1 June 2021.
In terms of the principal lease, the applicant leased certain
premises comprising shop 17 in
the Waterfall Ridge shopping centre,
Ridge road, Vorna valley Midrand (“the leased premises”).
Relevant terms of the
principal lease include the following:
(i)
in terms of
clause 19 3 of the general conditions, the tenant was obliged to be
open for business and trade 7 days a week during
shopping hours;
(ii)
in terms of
clause 3.2, rental was payable monthly in advance on or before the
1
st
day of each calendar month;
(iii)
in terms of
clause 3.5, all rentals and other amounts payable under in terms of
the lease were to be made without demand, free of
exchange and
without any deduction or set-off;
(iv)
in terms of
clause 28.1.1 read with clause 28.1.11.1, the lessor was entitled to
cancel the lease on notice to the tenant in the
event that the lessee
failed to pay any amount due in terms of the lease;
(v)
in terms of cl
28.2 read with cl 30, while in occupation, the tenant was obliged to
pay all amounts due in terms of the lease irrespective
of any dispute
between the parties, including a dispute about the right to cancel
the lease.
(vi)
Cl 28.3
provides that a certificate 28.3. signed by a director, company
secretary, credit manager or internal accountant of the
Landlord or
the Landlord's quantity surveyor or agent shall be apparent proof of
the amount of any indebtedness owing by the Tenant
to the Landlord at
any time and also of the fact that the due date of payment of the
whole or, as the case may be, any portion
of that amount has arrived.
(vii)
in terms of cl
26 B of the Summary Schedule, in the event of the Applicant having
been opened for trade but fails to comply with
the Shopping Centre
Hours as set out in clause 23 of the Summary Schedule, the Applicant
will be liable for a penalty equal to
R2 500.00 per day of
non-trading,
[5].
On 11 November
2021, the applicant (as franchisor)) and the respondent (as
franchisee) concluded a written franchise agreement for
purposes,
inter alia,
of allowing the respondent to conduct a franchise business under the
trade name ‘H-Q’ at the leased premises. In terms
of the
franchise agreement, the applicant warranted that it had concluded a
lease agreement for the lease of the leased premises
for a period of
not less than 5 years. In terms of cl 17.1 read with 17.1.18 of the
franchise agreement, the franchise agreement
was terminable on
written notice to the franchisee in the event that the franchisee’s
lease agreement in respect of the leased
premises was terminated for
any reason whatsoever.
[6].
On
12 November 2021 the applicant and the respondent concluded a written
agreement of sub-lease in respect of the leased premises.
In terms of
clause 2.2 read with 1.7 thereof, the respondent was subject to and
required to abide by all the terms and conditions
of the principal
lease, except in so far as they were expressly varied by the
provisions of the sub-lease, in which event, the
terms of the
sub-lease were to prevail. As was the case in terms of the principal
lease, monthly rental and service charges were
payable under the
sub-lease, monthly in advance and without deduction or set-off.
[2]
It was not in dispute in the answering affidavit that the sub-lease
agreement was concluded with the consent of the landlord under
the
principal lease.
[3]
Such
allegation was supported by the confirmatory affidavit deposed to by
Mr Sean Harrison, the managing director of the applicant.
[7].
The applicant
alleges that the respondent defaulted on its rental payment
obligations as a result of which, on 15 September 2023,
the applicant
sent a letter to the respondent in which it notified the respondent
of its election to cancel the lease, coupled
with a demand for,
inter
alia
,
payment of arrear rental in an amount, which at that stage, exceeded
R1.4 million. When the respondent failed to pay the outstanding
rental demanded, on 23 October 2023, the applicant’s attorneys
despatched a further letter to the respondent in which it
inter
alia
demanded that the respondent vacate the leased premises by 31 October
2023. This letter elicited a response from the respondent’s
attorneys on 31 October 2023, in which letter the respondent sought
to off-set payments made by it in respect of certain development
costs from the amount of the arrear rental earlier demanded by the
applicant. The applicant was also therein urged to halt the
institution of legal proceedings, pending the outcome of an
investigation into the validity of the franchise agreement. In a
letter
dated 3 November 2023, whilst relying on the indisputable
terms of the sub-lease, the applicant demanded that the respondent
vacate
the leased premises immediately. The date of vacation was
later extended by the applicant to 31 January 2024.
[8].
The
respondent’s entitlement to use and occupy the leased premises
carried a concomitant obligation on the part of the respondent
to pay
rent and other charges payable under the sub-lease. In terms of the
standard conditions of the principal lease, which applied
to the
sub-lease, the latter could be cancelled on notice to the respondent
in the event that the respondent failed to pay any
amount due to the
applicant under the sub-lease.
[4]
,
[9].
No
legally cognizable defence was raised in the answering affidavit.
Instead, the respondent raised a plethora of unmeritorious
technical
points to avoid vacating the leased premises. I deal with these
below. As far as the merits are concerned, on its own
version, the
respondent has failed to establish a legal entitlement to remain in
occupation of the leased premises. It avers in
its answering
affidavit that the sub-lease ‘
was
premised by fraudulent actions’
by authorized representatives of the applicant;
[5]
Such a dispute, even assuming its legitimacy, does not entitle the
respondent to remain in occupation of the leased premises for
free,
whether pursuant to the cancellation of the lease, or at all.
[10].
The
respondent avers in the answering affidavit that the franchise
agreement was concluded by it a result of certain false
representations
that were made by authorised representatives of the
applicant, which representations induced the respondent to enter into
the franchise
agreement and secure funding in the amount of R11,
634 504.11 from the Small Enterprise Funding Agency (‘SEFA’),
and which false representations were acted upon by the respondent to
its prejudice. In par 23 of the answering affidavit, the respondent
avers that the conclusion of the sub-lease would not have happened if
it was not for the conclusion of the franchise agreement.
It avers
further that had the true facts been exposed to the respondent, it
would not have entered into the franchise agreement
and the sub-lease
agreement. The respondent therefore reasons, on account of the
alleged fraud perpetrated by the applicant,
that ‘It is a
principle of our law that fraud vitiates everything’.
[6]
The respondent presumably had in mind the oft quoted words of the
esteemed English judge, Lord Denning, in
Lazarus
Estates Ltd v Beasley,
[7]
namely,
that:
'No
court in this land will allow a person to keep an advantage which he
has obtained by fraud. No judgment of a court, no order
of a
Minister, can be allowed to stand if it has been obtained by fraud.
Fraud unravels everything. The court is careful not to
find fraud
unless it is distinctly pleaded and proved; but once it is proved it
vitiates judgments, contracts and all transactions
whatsoever
.
[11].
Suffice it to
say that the allegations of fraud were vehemently disputed in the
applicant’s replying affidavit.
[12].
Ultimately
the respondent thus relies on fraud on the part of the applicant,
which induced the conclusion of the franchise agreement,
for an
entitlement to set-aside and thus escape the consequences of the
sub-lease. I agree with the applicant’s submission
that, as a
matter of law, even if the respondent’s version were to be
accepted (which version the applicant disputes) and
the agreements
declared void,
[8]
the outcome
would be a setting-aside of the sub-lease agreement, coupled with and
an order for restitution. The effect of such
an order vis-a vis the
respondent would be that the leased premises would have to be
restored to the applicant.
[13].
The respondent
does not proffer any alternative basis on which it claims an
entitlement to continue to occupy the leased premises.
The point to
be made is that on the respondent's own version, there is no legal
basis on which it is entitled to be in possession
and occupation of
the leased property, and for that reason alone the applicant is
entitled to an eviction order.
[14].
As mentioned
earlier, various points
in
limine
were raised by the respondent, namely:
(i)
Non-joinder
of
the Landlord
[9]
under the
principal lease;.
(ii)
Lis
Pendens;
(iii)
That the
applicant’s case offends the ‘once and for all rule’.
(iv)
Invocation of
the unclean hands doctrine and existence of disputes of fact
warranting the matter being referred to trial;
(v)
That the
application is not urgent – this point was dealt with earlier
in the judgment;
(vi)
That the
applicant does not have a right to eject the respondent on its own
version.
[15].
As
regards ‘non-joinder’, the point lacks merit. The
applicant’s case is based on a material breach by the
respondent
of the terms of the sub-lease, entitling it to cancel same
on notice. The parties to the sub-lease are the applicant and the
respondent.
There is no
vinculum
juris
or privity of contract between the Landlord under the principal lease
and the respondent, as sub-tenant under the sub-lease. The
principal
lease will remain unaffected by the cancellation of the sub-lease.
Moreover, no findings adverse to the Landlord’s
interests could
be made in these proceedings,
[10]
as such, it cannot be said that the Landlord a necessary party;
[11]
[16].
As
regards
lis
pendens,
the
point is based on action proceedings instituted in this court under
case no. 121129/2023 by the applicant (as plaintiff) against
the
respondent (as defendant) for payment of arrear rental, based on the
respondent’s breach of the terms of the sub-lease
agreement.
[12]
This point too
lacks merit. Whilst the same parties may be involved in the action
proceedings, there, a money judgment in respect
of arrear rental owed
by the respondent to the applicant was sought, whereas in the present
proceedings, the respondent’s
ejectment is sought without any
money judgment.
It
is trite that the requirements for the successful reliance on a plea
of
lis
pendens
are: (1) that the litigation is between the same parties; (2) that
the cause of action is the same;
[13]
and (3)
that
the same relief is sought in both.
[14]
In
Nestlé
(South Africa) (Pty) Ltd v Mars Incorporated
[15]
,
the SCA (per Nugent JA) held as follows: - “
There
is room for the application of that principle only where
the
same dispute
,
between the same parties, is sought to be placed before the same
tribunal (or two tribunals with equal competence to end the dispute
authoritatively). In the absence of any of those elements there is no
potential for a duplication of actions
.’
It
may be that the action proceedings and these motion proceedings are
based on the respondent’s breach of the same sub-lease
agreement, however, this does not mean that the outcome of the action
is or will be determinative of the outcome in the present
matter or
vice versa. I
n
my view, therefore, the requirements for the invocation of the
defence of
lis
pendens
have not been met in
casu.
In any event, even if the requirements were met, this does not mean
that the court is bound to stay the proceedings.
In
Loader
v Dursot Bros (Pty) Ltd,
[16]
in
considering the effect of
lis
pendens,
the
court held that
"
It
is clear on the authorities that a plea of
lis
alibi
pendens
does
not have the effect of an absolute bar to the proceedings in which
the defence is raised. The court intervenes to stay one
or other of
the proceedings because it is prima facie vexatious to bring two
actions in respect of the same subject matter. The
court has a
discretion which it will exercise in a proper case, but it is not
bound to exercise it in every case in which a
lis
alibi
pendens
is
proved to exist .
[17].
Regarding the ‘once
and for all rule’, the respondent’s counsel contended in
his heads of argument that the applicant’s
claim should fail
because it offends the once and for all rule. I do not agree.
The
once and for all rule provides that in claims for compensation or
satisfaction arising out of a delict, breach of contract or
other
cause, the plaintiff must claim damages once for all damage allegedly
sustained or expected insofar as it is based on a single
cause of
action.
[18].
The
rule entails that a plaintiff may not bring more than one action for
damages, insofar as this action is based on the same cause
of action
(Potgieter, Steynberg and Floyd Visser and Potgieter: Law of Damages
3ed (2013) 153).
[17]
Since
the defendant’s counsel relies on the case of
Evins
v Shield Insurance Co Ltd
1980 (2) SA 814
(A) for his submission that
the
applicant should have instituted its claim for ejectment together
with its claim for arrear rental, it is best to discuss what
that
case held.
The
Appellate Division found that the rule has particular significance
for prospective loss because where a prospective loss
is based on the
same cause of action as past loss, the claim for the prospective loss
has to be brought at the same time as the
claim for past loss. At
835B-D the court held as follows:
“
The
object of this principle is to prevent the repetition of lawsuits,
the harassment of a defendant by a multiplicity of actions,
and the
possibility of conflicting decisions (Caney, Law of Novation, 2nd
ed., p 70). The principle of res judicata, taken together
with the
"once and for all" rule, means that a claimant for Aquilian
damages who has litigated finally is precluded from
subsequently
claiming from the same defendant upon the same cause of action
additional damages in respect of further loss suffered
by him (i.e.
loss not taken into account in the award of damages in the original
action), even though such further loss manifests
itself or becomes
capable of assessment only after the conclusion of the original
action (Cape Town Council v Jacobs, supra, at
p 620); cf. Kantorv
Welldone Upholsterers, supra, at p 390-1). The claimant must sue for
all his damages, accrued and prospective,
arising from one cause of
action, in one action and, once that action has been pursued to final
judgment, that is the end of the
matter. (at page 835 B-D)
.”
[19].
Neither the
action proceedings or these proceedings involve claims for damages.
As such, reliance on the principle is misplaced.
[20].
As regards the
‘unclean hands doctrine’, the respondent contends that
the applicant has approached this court with ‘dirty
hands’
in that it seeks to evict the respondent from the leased premises in
circumstances where the applicant perpetrated
a fraud upon the
respondent, which ‘lured’ the respondent into entering
into the franchise agreement (and sub-lease).
The laconic allegations
of fraud in the answering affidavit were hotly disputed in the
replying affidavit for reasons given therein,
not least of all
because the respondent sought to rely on the inadmissible hearsay
contents of a letter, annexure “C”
to the answering
affidavit, wherein the extent of the applicant’s alleged
fraudulent activity was allegedly ‘laid bare’,
in
circumstances where the author of the letter did not provide a
confirmatory affidavit. In any event, a cursory inspection of
the
document reveals that no conclusive findings were made therein.
Reliance was also placed on a ‘draft forensic report’
by
Naledi Advisory Services, from which conclusions of fraud were sought
to be drawn, but which report was not provided in the
answering
papers, resulting in allegations of fraud remaining unsubstantiated
and unproven.
[21].
Reliance
was placed on cases such as
J.K
v E.S.K,
[18]
where
the court stated that “
The
doctrine of unclean hands concerns the honesty of a party's conduct.
It holds that where a party seeks to advance a claim that
was
obtained dishonestly or mala fide, that party should be precluded
from persisting and enforcing such a claim”,
and
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH,
[19]
where the Constitutional Court stated that “
'...An
abuse of process can occur in a variety of ways. The litigation may
be frivolous or vexatious. A litigant may seek to use
the legal
process for an ulterior purpose or by recourse to conduct that
subverts fundamental values of the rule of law. The behaviour
of the
litigant may be so tainted with turpitude that the court will not
come to such a litigant's aid. The unclean hands doctrine
references
this latter type of abuse.
It
is the abusive conduct of the litigant that,
in
a proper case
,
may warrant the exercise of the court's power to non-suit such a
Iitigant
.
The court does so even though the litigant claims a right that that
they would vindicate in the court proceedings.
For this reason, the power is to be exercised with great caution...”
.
(emphasis
added)
[22].
In
my view, a proper case has not been made out for the invocation of
the unclean hands doctrine. It is trite that fraud is not
easily
inferred by a court. A party that relies on fraud is required to
plead and prove it clearly and distinctly. And, any finding
as to
fraud can only be made on the strength of admissible evidence.
Reliance on hearsay evidence cannot avail the respondent,
as it is
inadmissible.
[20]
Neither can
conclusions of fraud be drawn from unsubstantiated allegations and
reports which do not form part of the papers. In
any event, it is
inappropriate to determine the issue, given that a material dispute
of fact in relation to allegations of fraud
- that is incapable of
resolution on the papers, has manifested. This dispute cannot avail
the respondent to escape the consequences
of its persistent failure
to pay rent and the resultant cancellation of the lease.
[21]
[23].
It is common cause that the Respondent has
been occupying the Leased Premises and has been trading from the
Leased Premises since
entering into the sub-lease agreement.
The Respondent's belief that it has been the victim of fraud
perpetrated by
the Applicant (which is vehemently denied in the
replying affidavit), has not deterred the Respondent from enjoying
beneficial
occupation of the Leased Premises, whilst at the same
time, failing to meet its obligation to pay the monthly rental in
terms of
the sub-lease agreement. After the cancellation of the
sub-lease, the respondent was afforded an opportunity to pay its
arrears
and to reinstate the lease. It did not. There is no basis in
law for it to occupy premises without having to pay for such
occupation.
And there is no basis for it to unlawfully occupy the
leased premises after cancellation.
[24].
I
could understand the invocation of the doctrine if the litigation was
wholly and obviously frivolous or unsustainable in law,
[22]
(which,
in the present case, it is not )
,
or if
the
sole purpose in launching it was to bring the respondent to its
financial knees by burdening the proceedings with an enormous
range
of unnecessary interlocutory procedures.
[23]
[25].
In
Mostert,
the Supreme Court of Appeal cautioned that “
While
courts are entitled to prevent any abuse of process
it
is a power that should be sparingly exercised.
The starting point is the constitutional guarantee of the right of
access to courts in s 34 of the Constitution. That right is
of
cardinal importance for the adjudication of justiciable disputes. But
where the procedures of the court are being used to achieve
purposes
for which they are not intended that will amount to an abuse of
process.”
[24]
But
that is not the complaint in
casu.
Here
the complaint was about alleged fraudulent conduct on the part of the
applicant, which, as I have already found, has not been
established
on the papers.
[26].
There appears
to have been a concerted effort on the part of the respondent to
cloud the issues in the hope that it would be able
to defeat the
applicant’s claim for eviction, in circumstances where the
grounds upon which the claim for eviction are based
on the express
terms of the sub-lease (including the terms of the principal lease
that were not varied by the sub-lease), which
are indisputable.
[27].
The final
point taken in the respondent’s heads of argument is that the
applicant has no right, on its own version, to claim
ejectment. This
point likewise lacks merit. In paragraph 12.6 of the founding
affidavit, the applicant set out the contents of
clause 18.1 of the
summary schedule to the principal lease, which
inter
alia
provides that the tenant (applicant) under the principal lease shall
not sub-let the premises or any portion thereof without the
Landlord’s prior written consent. The respondent submits that
as no prior written consent from the Landlord was attached
to the
papers, the applicant was not entitled to sub-lease the leased
premises to the respondent.
[28].
There are
various difficulties with the respondent’s broad proposition.
Firstly, the conclusion of the sub-lease, the terms
of the sub-lease
and its implementation by the parties were not disputed in the
answering affidavit. Nor was the allegation in
par 21 of the founding
affidavit, namely, that the Landlord had consented to the sub-lease,
disputed in the answering affidavit.
But aside from what was not
disputed, the proposition seems to suggest that the failure to
produce the Landlord’s written
consent somehow rendered the
sub-lease unenforceable, or anything performed thereunder, a nullity.
If so, this would surely amount
to a novel proposition in law for
which the respondent has put up no authority. Secondly, as earlier
mentioned, the sub-lease provides
that the Respondent “is
subject to and shall abide by all the terms and conditions contained
in the Principal Lease Agreement,
as if it were the tenant in terms
of the Principal Lease Agreement, except insofar as any such terms
and conditions are expressly
varied by the provisions of the
Sub-Lease Agreement.” (clause 2.2 read with 1.7 of the
principal lease). Clause 3.1 of the
sub-lease expressly and
unequivocally provides that “This Agreement is subject to and
conditional upon the Landlord consenting
to the lease of the Leased
Premises by the Tenant to the Sub-Tenant, in terms of this Agreement,
within 60 (sixty) days of date
of signature hereof.”.
Cadit
quaestio
.
This point too, must fail.
[29].
One further
issue requires mention. During the course of oral argument, the
respondent’s counsel indicated that a supplementary
affidavit
was being prepared on behalf of the respondent in this matter. After
oral arguments were concluded on 14 February 2024,
I reserved
judgment. I was alerted by the applicant’s representatives in a
letter dated 15 February 2024 that The Respondent
had subsequently
delivered and uploaded to Case Lines a supplementary affidavit at
approximately 17h11 on 14 February 2024, at
section 7, being the
"correspondence section". Reliance was placed on what was
stated in
Standard
Bank of SA Ltd v Sewpersadh and another
2005 (4) SA 148
(C), at paragraphs [12]to [13] for the submission
that the further affidavit ought not to be received but should be
regarded as
pro
non scripto
.
[30].
A glance at
the contents of the supplementary affidavit reveals that it deals
primarily with the issue of the applicant’s
alleged fraudulent
conduct, which, as alluded to earlier, does not constitute a defence
or assist the respondent’s cause
in these proceedings. In so
far as reference is made to a summary judgment application brought by
the applicant in the ‘main
action’, same was not attached
to the affidavit. Moreover, it is unknown what ‘
main’
action is
being referred to. If it relates to the action instituted for arrear
rental, same has been dealt with hereinbefore.
I am therefore
not inclined to have the supplementary affidavit received.
[31].
I am satisfied
that the applicant on the papers before me has made out a case for an
order for the relief sought in the notice of
motion. The applicant
seeks an order that the respondent vacate the leased premises by 28
February 2024. In view of the fact that
judgment was reserved, it
would be just and equitable for the date of vacation to be extended
to 15 March 2024. In determining
this date, I have taken into account
the extended period in which the respondent has unlawfully occupied
the leased premises, despite
the lawful cancellation of the lease.
[32].
As regards the
question of costs, the applicant has been successful in this
application. This means that, applying the general rule,
it is
entitled to its costs. I am not persuaded that a punitive costs order
is warranted in the matter.
Order
In the result, I make the
following order:-
1.
The draft order attached hereto, as revised
by me, is made an order of court.
AVRILLE MAIER-FRAWLEY
JUDGE OF THE HIGH
COURT,
GAUTENG DIVISION,
JOHANNESBURG
Date of hearing:
14 February 2024
Judgment
delivered
21 February 2024
This judgment was
handed down electronically by circulation to the parties’ legal
representatives by email, publication on
Caselines and release to
SAFLII. The date and time for hand-down is deemed to be have been at
10h00 on 21 February 2024..
APPEARANCES:
Counsel for
Applicant:
Adv T. Zietsman
Instructed
by:
Pagdens Attorneys
Counsel for
Respondent:
Adv L. Moela
Instructed
by:
Macbeth Inc Attorneys
[1]
See:
Twentieth
Century Fox Film Corporation and Another v Anthony Black Films (Pty)
Ltd
1982
(3) SA 582
(W) at 586 (G)
[2]
Clauses
6.5 & 6.6 of the sub-lease.
[3]
Clause
3.1
of the sub-lease, which reads: “
This
Agreement is subject to and conditional upon the Landlord consenting
to the sub- lease of the Leased Premises by the Tenant
to the
Sub-Tenant, in terms Agreement, within 60 (sixty) days of date of
signature hereof
.”
The 'rental obligation date' in terms of the sub-lease was 1
November 2021. It is common cause on the papers that the
respondent
only defaulted in its rental payment obligations in January 2023
(until September 2023 when the sub-lease was cancelled).
[4]
See
par 4(iv) above read with par 6 above.
[5]
Par
6 of the answering affidavit.
[6]
Par
21 of the answering affidavit.
[7]
Lazarus
Estates Ltd v Beasley
[1956]
1 QB 702
(CA)
at 712. Quoted with approval in
Esorfranki
Pipelines (Pty) Ltd and another v Mopani District Municipality and
others
[2014]
ZASCA 21
,
para
25.
[8]
As
to whether or not the agreements would be void or only voidable on
account of fraud, see the useful discussion in
Umgeni
Water v Naidoo and Another
(11489/2017P)
[2022] ZAKZPHC 80 (15 December 2022), paras 35 to 38.
[9]
The
landlord being two companies, namely, Tadvest Commercial (Pty) Ltd
and Pod property Fund (Pty) Ltd.
[10]
See
Matjhabeng
Local Municipality v Eskom Holdings Limited and Others; Shadrack
Shivumba Homu Mkhonto and Others v Compensation Solutions
(Pty)
Limited
[2017]
ZACC 35
, par 92.
[11]
See
Ekurhuleni
Metropolitan Municipality v Erasmus
(2017/6617)
[2017] ZAGPJHC 393 (12 December 2017), par 15.
[12]
The
particulars of claim filed in the action were not attached to the
papers.
## [13]This
requirement was discussed inElectrolux
South Africa (Pty) Ltd v Rentek Consulting (Pty) Ltd
2023
(6) SA 452 (WCC), par 14, where the following was said:
[13]
This
requirement was discussed in
Electrolux
South Africa (Pty) Ltd v Rentek Consulting (Pty) Ltd
2023
(6) SA 452 (WCC), par 14, where the following was said:
“
As
noted, the determination of the point
in
limine
in this matter rests on the
meaning of the term “cause of action”. In
McKenzie
v Farmers’ Co-operative Meat Industries Ltd
Maasdorp JA approved the definition
provided in the English case of
Cook
v Gill
L.R 8 CP.107
which
defined the phase “cause of action arising in the City”
as, “
every fact which it would
be necessary for the plaintiff to prove, if traversed, in order to
support his right to the judgment
of the court
”.
Later, in the case of
Abrahmse &
Sons v SA Railways and Harbours
,
the court defined the expression “cause of action” as
follows:
“
The
proper legal meaning of this expression ‘cause of action’
is the entire set of facts which give rise to an enforceable
claim
and includes every fact which is material to be proved to entitle a
plaintiff to succeed in his claim. It includes all
that a plaintiff
must set out in his declaration to disclose a cause of action
”.
”(footnotes omitted)
[14]
See
Grindrod
Bank Limited v Culverwell and Another
(17343/2022 ; 17345/2022) [2023]
JHC 876 (7 August 2023),
par 19; .
[15]
1
Nestlé (South Africa) (Pty) Ltd v Mars Incorporated
2001 (4)
SA 542
(SCA) at para 17.
[16]
1948
(3) SA 136
(T)
at 138.
[17]
See
too: “(Mis)understanding the once-and-for-all rule”
by André Mukheibir, published in OBITER 2019
at 252;
## [18]J.K
v E.S.K(15912/2023)
[2023] ZAWCHC 317 (29 November 2023), par 37.
[18]
J.K
v E.S.K
(15912/2023)
[2023] ZAWCHC 317 (29 November 2023), par 37.
[19]
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH
2024
(1) SA 331
(CC), paras 77-78.
[20]
See
Rautini
v Passenger Rail Agency of South Africa
(Case
no. 853/2020)
[2021]
ZASCA 158
(8
November 2021)
[21]
See
par 4(v) above, read with par 6 above.
[22]
L.
F. Boshoff Investments (Pty) Ltd v Cape Town Municipality; Cape Town
Municipality v L. F. Boshoff Investments (Pty) Ltd
1969
(2) SA 256
(C) at 275B-C
[23]
Mostert
and Others v Nash and Another
(604/2017
and 597/2017
[2018]
ZASCA 62
(21 May 2018), paras 24-26.
See
too:
Villa
Crop Protection (Pty) Ltd v Bayer Intellectual Property GmbH
2024 (1) SA 331
(CC)
at paras 77-78, where the Constitutional Court pointed out
that :
“
An
abuse of process can occur in a variety of ways. The litigation may
be frivolous or vexatious. A litigant may seek to use the
legal
process for an ulterior purpose or by recourse to conduct that
subverts fundamental values of the rule of law. The behaviour
of the
litigant may be so tainted with turpitude that the court will not
come to such a litigant's aid. The unclean hands doctrine
references
this latter type of abuse. It is the abusive conduct of the litigant
that in a proper case may warrant the exercise
of the court's power
to non-suit such a Iitigant. The court does so even though the
litigant claims a right that they would vindicate
in the court
proceedings. For this reason, the power is to be exercised with
great caution
... "
[24]
Id,
par25,
Footnotes
excluded
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