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# South Africa: South Gauteng High Court, Johannesburg
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[2024] ZAGPJHC 213
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## City of Ekurhuleni Metropolitan Municipality v Intrax Investments 28 (Pty) Ltd and Another (006480-2023)
[2024] ZAGPJHC 213 (29 February 2024)
City of Ekurhuleni Metropolitan Municipality v Intrax Investments 28 (Pty) Ltd and Another (006480-2023)
[2024] ZAGPJHC 213 (29 February 2024)
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sino date 29 February 2024
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Case
No: 006480/2023
1.
REPORTABLE:
YES
/NO
2.OF
INTEREST TO OTHER JUDGES:
YES
/NO
3.REVISED
YES/
NO
29 February 2024
In the matter between:
CITY OF EKHURULENI
METROPOLITAN MUNICIPLALITY Applicant
and
INTRAX INVESTMENTS 28
(PTY) LTD First
respondent
ASTRON ENERGY (PTY)
LTD Second
respondent
Delivered: This
judgment was prepared and authored by the Judge whose name is
reflected in it and is handed down electronically
by circulation to
the parties/their legal representatives by email and by uploading it
to the electronic file of this matter on
CaseLines. The date
for hand-down is deemed to be 29 February 2024.
JUDGEMENT
DUNN
AJ
:
[A].
ORDER
GRANTED
[1]
On 6 September
2023, I made the following order:
[1.1]
The first
respondent’s
supplementary
answering affidavit filed of record (on 8 May 2023) is permitted to
be filed as a further affidavit;
[1.2]
the costs of
the application for its filing are reserved for the main application;
and
[1.3]
by agreement
between the parties, it is recorded that:
[1.3.1]
the first
respondent has undertaken to provide the applicant with a copy of the
alleged ‘
first
franchise agreement
’
and the accompanying
lease agreement by Monday, 11 September 2023; and
[1.3.2]
the applicant
shall file its
supplementary
answering affidavit (if any) by Friday, 29 September 2023; and
[1.4]
the main
application is postponed
sine
die
and
the costs thereof are to be costs in the main application.
[2]
The reasons
for the above order are set out below.
[B].
INTRODUCTION
General
[3]
Initially two
applications were due to be argued before me.
[4]
The
first application (
the
main application
)
was instituted by the applicant, i.e., the City of Ekurhuleni
Metropolitan Municipality (
Ekurhuleni
),
against the first respondent, i.e., Intrax Investments 28 (Pty) Ltd
(
Intrax
),
and the second respondent, Astron Energy (Pty) Ltd (
Astron
).
The relief sought therein is essentially for the eviction of Intrax
from an immovable property known as Portion 4 of Erf
1357, Etwatwa
Township, Gauteng Province (
the
property
)
within a specified period of thirty (30) days from the date of
granting of the envisaged court order.
[1]
[5]
The
main application is – and remains – opposed by Intrax.
It delivered a substantial answering affidavit setting
out several
defences.
[2]
Thereafter, Ekurhuleni delivered its replying affidavit.
[3]
[6]
Pursuant
to Ekurhuleni’s delivery of its replying affidavit, Intrax, on
8 May 2023, delivered a further so-called ‘
supplementary
answering affidavit
’
in
which its deponent, Mr Isreal Vusumuzi Radebe
Mthimkhulu
(
Mr
Mthimkhulu
),
states that its aim is to deal with the issues raised by Ekurhuleni
in its replying affidavit, which – in Mr Mthimkhulu’s
submission - ought to have been raised in its founding affidavit.
[4]
[7]
Ekurhuleni
opposes the filing of
the
supplementary answering affidavit by Intrax. Such opposition is
based on, among other things, the contention that the
supplementary
answering affidavit should be considered as
pro
non-scripto
because
Intrax had failed to obtain the court’s prior leave before
delivering it.
[5]
The deponent to Ekurhuleni’s opposing
affidavit,
Mr Selven Davey Frank (
Mr
Frank
),
also contends that Intrax’s supplementary answering affidavit
does not assist in resolving any existing disputes, but merely
seeks
to create confusion.
[6]
[8]
Ekurhuleni’s
opposition to the filing of the supplementary answering affidavit,
prompted Intrax, on or about 21 June 2023,
to launch an application
for its admission.
[7]
Intrax’s
application for leave to file its supplementary answering affidavit
(
Intrax’s
interlocutory application
),
is the second application the court is currently seized with.
[9]
Astron played
no role in either the main application or Intrax’s
interlocutory application because no relief was sought against
it.
Counsel for both Ekurhuleni and Intrax were
ad
idem
that
if I were to grant Intrax leave to admit its -
already
filed
–
further
affidavit, then the main application should be postponed
sine
die
to
enable Ekurhuleni to file a further supplementary replying affidavit
in response thereto. In the result, both counsel only
dealt
with Intrax’s interlocutory application in argument.
Background:
A synopsis of the parties’ dispute
[10]
Ekurhuleni’s
application for Intrax’s eviction is essentially based on the
so-called
Graham
v Ridley
[8]
approach.
This approach is to the effect that where an applicant proves that
he/she/it is the owner of property and that respondent
is in
possession of that property, the applicant is
prima
facie
entitled
to an order giving him/her/it possession thereof, i.e., essentially
an order for the ejectment of the respondent from the
property in
question.
[11]
Ekurhuleni
relies on data obtained through a
Lexis
WinDeed
property
search to in seeking to confirm its ownership of the property.
[9]
It contends that Intrax has no valid right/s in law to occupy the
property and that it is therefore an unlawful occupier
thereof.
[10]
[12]
However, the
narrative deposed to by Mr Frank to support his conclusion that
Intrax’s possession of the property is (allegedly)
unlawful, is
relatively lengthy. Synoptically, it covers a range of events,
including the following:
[12.1]
It
commences with the conclusion of notarial lease (
the
notarial lease
),
on or about 8 October 1991, between the erstwhile City Council of
Daveyton (one of a
number
of municipal areas that was incorporated into, or merged to form,
Ekurhuleni) and one of Astron’s predecessor-in-title,
i.e.,
Caltex Oil South Africa (Pty) Ltd, which initially changed its name
to Chevron South Africa (Pty) Ltd and, ultimately, to
Astron.
[11]
For the sake of convenience, and irrespective of all such changes,
Astron and its predecessors-in-title will simply be referred
to
herein as ‘
Astron
’.
[12.2]
Astron
operated a filling station on the property. The notarial lease
was to endure for a period of twenty (20) years.
It commenced
on 27 February 1992 and expired by effluxion of time on 26
February 2012.
[12]
[12.3]
After
the expiry of the notarial lease, Astron continued occupying the
property in terms of a month-to-month lease. Such lease
was
confirmed in writing by
Ekurhuleni
in a letter it addressed to Astron on 23 March 2016.
[13]
[12.4]
In
this last-mentioned letter, Ekurhuleni notified Astron that it
intended to invite tenders for a new lease agreement for the property
and that it anticipated that Astron might be one of the
tenderers.
[14]
The letter further notified Astron that if its tender were
unsuccessful, it would be given two months’ notice to vacate
the property.
[12.5]
Through
a public tender process issued by Ekurhuleni during January 2018,
prospective tenderers were invited to submit tenders for
a new lease
coupled with the right to operate a filling station, garage, and
ancillary facilities on the property.
[15]
[12.6]
Ekurhuleni’s
bid
adjudication committee, having evaluated all the tenders received
through the public tender process, subsequently allocated
the highest
score to Astron’s tender. An entity called ‘
Barvallen
Convenience CC
’
(
Barvallen
)
scored the second highest points according to the bid adjudication
committee’s evaluation. The tender was thus awarded
to
Astron, but – according to Mr Frank – it was withdrawn
thereafter because of Astron’s failure to timeously
comply with
certain suspensive conditions in the proposed new lease
agreement.
[16]
[12.7]
On
25 May 2020, Astron’s attorneys at the time, Messrs
Wright
Rose-Innes (
per
Mr
R Carrington), responded to Ekurhuleni’s letter notifying
Astron of the withdrawal of the tender.
[17]
The content of Wright Rose-Innes’s letter provides some
important context for the remainder of the unfolding narrative
in
Ekurhuleni’s founding affidavit. The germane portion of
this letter reads as follows:
‘
5.
Our client has been in dispute with the current occupier Intrax
Investments 28
(Pty) Ltd who *[
sic
]
have been unlawfully occupying the site without any contractual
arrangements with our client for a number of years.
6.
Our client informs us that it did not have any knowledge of
withdrawal of the approval of the original tender and it is
notable
that essentially your correspondence under reply constitutes the
first formal notification that our client received in
this regard.
Our client found out about the withdrawal by chance upon receipt of
an Answering Affidavit filed by the current
occupier late last year.
7.
Our client understands that at present there is a lease agreement
signed between … *[
Barvallen
] … and your client
in respect of the site. Our client has informed us that it is
presently conducting negotiations
with Barvellen in order to secure
occupation of the site as a sub-tenant conditional however upon
Barvellen *[
sic
] evicting the occupiers Intrax Investments 28
(Pty) Ltd who *[
sic
] currently occupy the site unlawfully.
8.
…
9.
Your client has given our client notice to vacate the premises.
With the best will in the world our client is not
able to do so.
Our client does not occupy the premises. The premises occupied
are by Intrax Investments 28 (Pty) Ltd
who [
sic
] have refused
to vacate the premises despite having no rights of tenure and no
contractual relationship with our client for an
extended period of
time. Should your offices wish to proceed with a main
application our client will probably consent to
the aforesaid Order
insofar as it is found that our client does occupy the premises.
10.
…
11.
We also bring to your attention that our client has its branding and
equipment including tanks and dispensing units situate
at the site.
This equipment is currently being used by the unlawful occupier
without our client’s consent. Our
client would also need
to make arrangements with your offices in order to remove the
equipment should this be the agreement reached
with your offices
and/or Barvellen *[
sic
]. The Environmental Laws and
Regulations in respect of petroleum equipment removal and site
remediation will need to be adhered
to by all parties.’
[12.8]
Mr
Frank then proceeds to explain how it came about that Intrax became
an occupier of the property. According to Mr Frank’s
evidence, Intrax became a franchisee of Astron on or about
20 September 2001, being the date on which these parties
concluded
a franchise agreement.
[18]
[12.9]
Although
the franchise agreement was concluded on the signature date (i.e., 20
September 2001), it had already commenced on an earlier
date (i.e., 1
August
2001).
Its stipulated duration was for five years, but two successive
options were granted to Intrax,
qua
franchisee,
to extend it for a further five years in respect of each of the two
options. In essence: (i) the original franchise
period endured
from 1 August 2001 until 31 July 2006; (ii) the first option period
ran from 1 August 2006 to 31 July 2011; and
(iii) the second option
ran from 1 August 2011 until 31 July 2016.
[19]
[12.10]
When
the second option period expired on 31 July 2016, Intrax’s
remained in occupation of the property. Ekurhuleni’s
founding affidavit suggests that this occurred in terms of an oral
agreement that was concluded between Astron and Intrax on or
about 7
December 2016.
[20]
Ekurhuleni’s evidence does not explain Intrax’s
occupation for the four (4) months between 1 August 2016 and
1
December 2016.
[12.11]
A
brief pause in the unfolding narrative deposed to in the founding
affidavit is required. This is merely to enable reference
to an
intervening event that occurred during the existence of the franchise
agreement between Astron and Intrax. On or about
16 March 2010,
Intrax allegedly approached Ekurhuleni with an unsolicited offer to
purchase the property. Ekurhuleni directed
Intrax to complete
certain ‘
prescribed
forms for unsolicited bids
’
,
which the latter apparently did on or about 22 June 2010.
[21]
[12.12]
However,
Intrax’s offer to purchase the property was unsuccessful.
The reason given for the rejection of Intrax’s
offer – as
per
a
decision of 25 November 2010, which was adopted at the meeting where
the offer was considered - was that the property was ‘
an
asset needed to provide the minimum level of basic municipal services
and that it is not available for alienation or lease
’
.
According to Mr Frank, Intrax was apprised of this decision in
writing by Ekurhuleni on 13 December 2010.
[22]
[12.13]
Resuming
the narrative deposed to by Mr Frank: On 10 May 2017 Astron’s
attorneys, Adams & Adams, addressed a letter to
Intrax notifying
it that the oral franchise agreement - referenced in paragraph 12.10
above – will be terminated with effect
from 11 June 2017, and
insisting that Astron would take the property by that date.
[23]
[12.14]
Intrax,
despite the notice of cancellation sent by Adams & Adams, failed
(or refused) to vacate the property. However,
Astron only
instituted motion proceedings to evict Intrax from the property
approximately two years and five months later, i.e.,
on
or about 15 November 2019 (
Astron’s
eviction proceedings
),
but these proceedings were subsequently withdrawn.
[24]
This also occurred
after
Ekurhuleni
had notified Astron that the tender initially awarded to it was to be
withdrawn as a result of Astron’s failure
to timeously comply
with certain suspensive conditions in the proposed new lease
agreement.
[25]
[12.15]
After the
withdrawal of the tender awarded to Astron, Ekurhuleni awarded the
tender to Barvallen. During February 2021, Barvallen
instituted
motion proceedings against Intrax and Astron for their eviction from
the property. Ekurhuleni’s founding
affidavit suggests,
or at least appears to suggest, that had it already instituted a
similar application for the eviction of Intrax
and Astron
(
Ekurhuleni’s
first eviction application
)
prior to Barvallen having done so. However, given the
respective case numbers of the two applications (Barvallen’s
being 3715/2021, while Ekurhuleni’s was 10600/2021), it appears
that Barvallen’s eviction application probably was
instituted
first.
[12.16]
Ekurhuleni
then applied to be joined as a party to Barvallen’s eviction
application. It was joined therein as the third
respondent.
Its own eviction application (
viz
.,
Ekurhuleni’s first eviction application) supposedly was then
held ‘
in
abeyance
’
.
[26]
[12.17]
Prior
to the hearing of Barvallen’s eviction application, Intrax
launched a review application on 9 April 2021 for orders:
(i) to
review and set aside Ekurhuleni’s award of the new lease to
Barvallen; and (ii) to compel Ekurhuleni to decide on
its unsolicited
offer to purchase the property (
Intrax’s
review application
).
[27]
[12.18]
Barvallen’s
eviction application was then postponed
sine
die
to
enable Intrax’s review application to be heard first.
[28]
The adjudication thereof ultimately yielded a favourable result for
Intrax, as the court (
per
Matsemela
AJ): (i) directed Ekurhuleni to make a decision on Intrax’s
offer to purchase the property; (ii)
reviewed
and set aside Ekurhuleni’s decisions to award the tender to
Barvallen and to reject Intrax’s tender submitted
in respect of
the public tender process undertaken in 2018; and (iii) ordered
Ekurhuleni to begin the whole tender process afresh.
[29]
[12.19]
On
or about 31 August 2022, Ekurhuleni (
per
Mr
Frank) notified Intrax in a written communication that it did not
accept the unsolicited offer to purchase the property and confirmed
that it could only sell immovable property through an open tender
process. Ekurhuleni further emphasised that the property
was
not for sale
and
that, given its asset value, Ekurhuleni intended deriving rental
income from it through a fixed term lease procured in terms
of its
supply chain management policy.
[30]
[12.20]
Against this
background, Mr Frank further explains that Ekurhuleni’s first
eviction application, which had been held in abeyance
until then, had
to be substituted with this present main application. This, Mr
Frank asserts, was required to ensure proper
compliance with the
second part of the order granted in Intrax’s favour in its
review application,
viz
.,
to avoid any potentially protracted litigation between Intrax and any
successful bidder appointed pursuant to the renewed tender
process
ordained by that court order.
[12.21]
This
overly lengthy history of the parties’ dispute/s, sets the
table for the consideration of Intrax’s interlocutory
application.
[31]
[C].
INTRAX’S
INTERLOCUTORY APPLICATION
Overview
[13]
Intrax’s
professed aim with its supplementary answering affidavit is
supposedly to deal with the issues raised by Ekurhuleni
in its
replying affidavit, which, so Intrax contends, ought to have been
raised at the outset in its founding affidavit.
[14]
While
Ekurhuleni’s founding affidavit - based as it is on the
so-called
Graham
v Ridley
[32]
approach
[33]
- disavows the existence of any agreement authorising Intrax’s
possession of the property, it nonetheless proceeds to emphasise
at
some length how Intrax initially came into possession thereof in the
first instance, i.e., as Astron’s franchisee and
subtenant with
effect from 1 August 2001,
[34]
and then additionally explains how Astron’s notarial lease,
subsequent monthly tenancy and the franchise agreement came to
be
terminated and, by necessary extension, also how Intrax’s
rights of occupation were allegedly terminated.
[15]
In
dealing with Intrax’s unsolicited offer to purchase the
property on 16 March 2010,
[35]
Mr Frank made no distinction between the corporate entity, Intrax,
and its sole director, Mr Mthimkhulu. It was the latter,
in his
personal capacity, that seemingly made the offer to purchase the
property and not Intrax itself,
[36]
but for purposes of
Ekurhuleni’s
founding
affidavit t
he
corporate entity (i.e., Intrax) and the natural person (i.e., Mr
Mthimkhulu)
conveniently were conflated by Mr Frank.
[16]
On the other
hand, Mr Mthimkhulu consistently fails to draw any distinction
between Intrax and himself (as the driving force behind
Intrax’s
filling station business).
[17]
Two of the
main aspects in which Intrax’s version materially diverges from
Ekurhuleni’s can be summarised as follows:
[17.1]
First,
while Ekurhuleni fixes Intrax’s occupation of the property to
the date 20 September 2001, being the date on which Astron
and Intrax
concluded the franchise agreement,
[37]
the version deposed to by Mr Mthimkhulu supposedly traces Intrax’s
alleged involvement with the property back to 1990.
This part
of Mr Mthimkhulu’s evidence reads as follows:
‘
7.
As early as 1990, the first respondent *[
Intrax
]
was involved in the Property that is the subject matter of the
applicant’s *[
Ekurhuleni’s
]
main application.
The first
respondent’s involvement with the Property predates the
involvement of the second respondent
*[
Astron
],
this I fully set out below.
8.
Subsequently, I approached the then Daveyton City Council to enquire
about the area where the Property is situated, which
was undeveloped
and just bare and open land, at the time. I informed the
Daveyton Council that I wanted to develop a business
of a petrol
service station and shops on the Property with the hope to better the
socio-economic status of the township.
This was also to deal
with the insecurity of tenure suffered by myself and many others who
lived in the area around the Property
at the time.
9.
The Daveyton City Council informed me that the area was actually
earmarked and zoned for a petrol service station and that
it also had
the intention to develop the township and make sure that the economy
of the area is stable by creating employment within
the vicinity
where people live, and further, to develop businesses owned by black
people within the community. In essence,
this kind of
initiative by the Daveyton City Council could be described as “
black
empowerment
”
initiative
that was much needed by the first respondent and the residents of the
area who were severely stricken by poverty and
racially
discriminative laws.
10.
During 1991, that Daveyton City Council (“the Council”)
then advised me since I was a novice in the petrol
station business,
that I needed to compile a business plan, which I did do on behalf of
the first respondent and later formally
presented to the Council.
The Council gave me feedback that the first respondent cannot run
the business of petrol station
*[
sic
]
on its own
because of lack of experience in running a service station and did
not have the necessary experience and financial capacity.
Therefore, I should approach a well-established well company for
partnership or franchise agreement
.
11.
Furthermore, the Counsel advised me that it was only willing to
enter into a lease agreement for the property with an oil company
that would be chosen by the first respondent, as the first respondent
lacked the necessary experience and financial capacity
. The
Council further advised the first respondent that such a lease
agreement would be reviewed after 20 years wherein the
Council would
afford the first respondent the opportunity to purchase the property
or enter into a 99-year lease with the applicant.
12.
In compliance with the above condition, the first respondent
approached Caltex (Pty) Ltd (now Astron Energy (Pty) Ltd)
(herein
after *[
sic
] the second respondent)
to assist in
implementing its plans and business with its much-needed financial
muscle. The applicant then informed the second
respondent that
it would enter into a lease agreement with the second respondent
because the first respondent did not have the
financial means to
develop the Property on its own and conduct the business. This
is how the applicant entered into a lease
agreement in respect of the
Property with Caltex who
*[
sic
]
was in turn to give or
lease the property to the first respondent with a franchise
agreement
.
13.
The first respondent then entered into a franchise agreement with the
then Caltex (second respondent), in 1991 for *[
sic
] period of
20 years.
Prior, to the conclusion of the franchise
agreement the applicant told the first respondent that, in accordance
with its empowerment
initiative, at the end of the 20-year period for
the lease agreement it would give the first respondent a 99-year
lease or allow
it to purchase the Property and there would be no need
for the first respondent to enter into another franchise agreement
with
the second respondent as I (on behalf of the first respondent)
would operate on my own
.
14.
The first respondent continued to operate the franchise on the
Property for an uninterrupted period of 32 years
(from 1991 till
date) and as a result, through the development is implemented by the
first respondent (some on its own and others
with the assistance of
the second respondent), created a lot of opportunities and jobs for
the community.’
(Own
emphasis and *insertions).
[17.2]
Second,
Mr Frank contends that Intrax’s unsolicited offer to purchase
the property was rejected by Ekurhuleni as far back
as 25 November
2010, i.e., and that Intrax had already been apprised thereof on 13
December 2010.
[38]
On the other hand, Mr Mthimkhulu emphasises that: (i) such
decision – if it indeed was taken by Ekurhuleni at the time
stated by Mr Frank – specifically ought to have been raised and
relied on by Ekurhuleni in Intrax’s initial review
application,
[39]
but that Ekurhuleni failed to do so at the time;
[40]
and (ii) Intrax, in the meantime, had instituted a new review
application (
Intrax’s
present review application
)
on or about 23 November 2022, in which it applies for the judicial
review and setting aside of Ekurhuleni’s decision to
reject
such offer on 25 November 2010, as well as its subsequent rejection
thereof on 31 August 2022.
[41]
[18]
A few
prima
facie
comments
– without making
any
definite findings in
respect of any one or more of them - on these aspects of divergence
between Ekurhuleni’s founding affidavit
and Intrax’s
answering affidavit seem apposite:
[18.1]
First,
Intrax’s present review application is not currently before me,
and it is impermissible for me to have regard to the
content thereof,
let alone try and gauge the prospects (
if
any
) of
its potential success, whether reasonable or otherwise.
[18.2]
Second,
Mr Mthimkhulu’s assertion - in above-quoted paragraph 13 of
Intrax’s answering affidavit – to the effect
that: ‘
The
first respondent then entered into a franchise agreement with the
then Caltex (second respondent), in 1991 for
*[
sic
]
period
of 20 years
’
,
is rather puzzling and legitimately can be questioned. If it
were correct, there does not appear that have been any need
or
incentive for these parties to have entered into a further franchise
agreement on 20 September 2001 – i.e., because the
one
mentioned by Mr Mthimkhulu (
if
it indeed had been concluded for a duration of twenty (20) years in
1991
)
would then still have been in existence. Moreover, Mr
Mthimkhulu’s assertion also appears to contradict that which
he
deposed to elsewhere in Intrax’s answering affidavit when he
asserted, in response to Mr Frank’s statement about
the
franchise agreement having been entered into on 20 September 2001,
the following:
[42]
‘
67.1
The first franchise agreement
between the first and second respondent was concluded in 1991
.
A copy of the franchise agreement is annexed hereto marked “
IVRM 2
”.
67.2
The second franchise agreement was signed on 2 August 2001
and commenced on 1 August 2001
.
67.3
The remainder of the allegations in these paragraphs are
denied and the applicant is put to the proof thereof.’
(Own
emphasis).
(At
this stage, I point out, in parenthesis, that no so-called ‘
first
franchise agreement
’
,
supposedly being annexure
IVRM 2
to Intrax’s answering affidavit, was attached to it at the time
of the hearing. This is the document that Intrax undertook
to
furnish to Ekhuruleni by 11 September 2023 and which forms part of
the order made in paragraph 1 above).
[43]
[18.3]
Third,
despite Mr Mthimkhulu’s version of precisely when the franchise
agreement/s were supposedly concluded, Ekurhuleni’s
replying
affidavit does not address who, or which entity, the franchisee was
of the petrol station on the property in the period
between 1991
(immediately
after
the
conclusion of the notarial lease on 8 October 1991) and 2001
(immediately
before
the
conclusion of the franchise agreement on or about 20 September
2001). This is a factual issue that is pertinent to one
of
Intrax’s defences in this matter, namely its defence that it
required the property by ‘
acquisitive
prescription
’
.
[44]
In this regard, Mr Mthimkuhlu submits that Intrax has fully made out
a case in the
present
review application
for
such relief and that, in addition to what is stated in Intrax’s
answering affidavit, it is entitled to ownership of the
property in
terms of
section 1
of the
Prescription Act 68 of 1969
(
the
Prescription Act
)
read together with section 25 of the Constitution.
[45]
[19]
The salient
features of Ekurhuleni’s replying affidavit include the
following:
[19.1]
In
the first instance, Ekurhuleni denies that Intrax has been in
undisturbed possession or occupation of the property for thirty-two
(32) years which would have enabled it to have acquired ownership
thereof by acquisitive prescription.
[46]
Ekurhuleni’s above denial is evidently based on two
considerations, namely that Intrax only came into existence on
5
September 2000,
[47]
and further that it has been faced by four applications for its
eviction from the property since then and can hardly contend that
its
occupation and possession has been undisturbed.
[48]
[19.2]
Secondly,
Ekurhuleni denies that its predecessor (i.e., the erstwhile City
Council of Daveyton) gave any form of undertaking, or
made any
promise, to Mr Mthimkhulu involving either the grant of a 99-year
lease to him or Intrax, or of an offer to sell the property
to him or
Intrax.
[49]
[20]
Intrax’s
supplementary answering affidavit notifies Ekhuruleni that if any
objection to its filing was going to be raised,
Intrax then would
formally apply for its admission.
[50]
The supplementary answering affidavit then proceeds to cover
the following main areas of disputation between Intrax and
Ekurhuleni:
[20.1]
First,
it deals with the earliest and ongoing involvement in, with and on
the property. This commences in 1991 when Mr Mthimkhulu
started
operating the ‘
Etwatwa
Service Station
’
.
Thereafter the petrol station was taken over by a registered
corporation called ‘
Etwatwa
Service Station Close Corporation
’
.
The latter close corporation was registered in 1992 with Mr
Mthimkhulu being the sole (100%) member thereof.
[51]
[20.2]
Second,
it deals Mr Mthimkhulu’s discussions with various oil companies
in those early years, including Astron, whose business
proposal Mr
Mthimkhulu favoured, and explains further how Astron eventually
entered into a lease agreement with Ekurhuleni and
how he (and his
successors-in-title) became Astron’s franchisee/s.
[52]
[20.3]
Third,
it deals with the expansion of the business on the property and Mr
Mthimkhulu registering a company called ‘
Mthimkuhlu
Food Enterprises (Pty) Ltd
’
in
1998.
[53]
However, it is by no means clear what this specific company’s
objective and business purpose was.
[20.4]
Fourth,
it explains that when Mr Mthimkhulu experienced financial
difficulties in about 1999/2000, he was advised to have a company
(and not a close corporation) to operate the petrol station, which
resulted in him acquiring Intrax (as a shelf company) to hold
the
petrol station in.
[54]
[20.5]
Fifth,
it sets out how Mr Mthimkhulu – either as a sole member of
Etwatwa Service Station Close Corporation or as the sole
director of
Intrax – has been operating the service station on the property
for a continuous period of more than thirty (30)
years, which is
one
of
the vital of elements of a defence of acquisitive prescription.
[55]
[21]
A
further aspect raised in the
Intrax’s
supplementary answering affidavit, concerns a challenge to Mr Frank’s
authority to institute the main application.
[56]
This is somewhat surprising especially since Mr Mthimkuhlu initially
admitted that Mr Frank had the required authority to
do so.
[57]
However, during the course of argument first respondent’s lead
counsel abandoned this point and accepted that Mr Frank
did have the
required authority to launch these proceedings and to depose to the
affidavits required for that purpose.
[22]
In
Hano
Trading CC v JR 209 Investments (Pty) Ltd and Another
[58]
the Supreme Court of Appeal (
SCA
)
sets out the position concerning the usual number of affidavits
(i.e., three sets) permitted in terms of the Uniform Rules of
Court
(
the
Rules
).
In dealing with the issue of the filing of any further affidavits,
the SCA emphasised that is only permitted with the indulgence
of the
court:
[59]
‘
[10] A
litigant in civil proceedings has the option of approaching a court
for relief on application as opposed to an
action. Should a
litigant decide to proceed by way of application, rule 6 of the
Uniform Rules of Court applies. This
rule sets out the sequence
and timing for the filing of the affidavits by the respective
parties. An advantage inherent in
application proceedings, even
if opposed, is that it can lead to a speedy and efficient
adjudication and resolution of the disputes
between parties.
Unlike actions, in application proceedings the affidavits take the
place not only of the pleadings, but
also of the essential evidence
which would be led at a trial.
It
is accepted that the affidavits are limited to three sets
.
It follows thus that great care must be taken to fully set out the
case of a party on whose behalf an affidavit is filed.
It
is therefore not surprising that rule 6(5)(e) provides that further
affidavits may only be allowed at the discretion of the court
.
[11]
Rule
6(5)(e) establishes clearly that the filing of further affidavits is
only permitted with the indulgence of the court.
A court, as
arbiter, has the sole discretion whether to allow the affidavits or
not. A court will only exercise its discretion
in this regard
where there is good reason for doing so
.
[12] This
court stated in
James Brown &
Hamer (Pty) Ltd (Previously named Gilbert Hamer & Co Ltd) v
Simmons NO
1963 (4) SA 656
(A)
at 660D – H that:
“
It
is in the interests of the administration of justice that the
well-known and well-established general rules regarding the number
of
sets and the proper sequence of affidavits in motion proceedings
should ordinarily be observed. That is not to say that
those
general rules must always be rigidly applied: some flexibility,
controlled by the presiding Judge exercising his discretion
in
relation to the facts of the case before him, must necessarily also
be permitted.
Where, as in the
present case, an affidavit is tendered in motion proceedings both
late and out of its ordinary sequence, the party
tendering it is
seeking not a right, but an indulgence from the Court: he must both
advance his explanation of why the affidavit
is out of time and
satisfy the Court that, although the affidavit is late, it should,
having regard to all the circumstances of
the case, nevertheless be
received
.
Attempted
definition of the ambit of a discretion is neither easy nor
desirable. In any event, I do not find it necessary
to enter
upon any recital or evaluation of the various considerations which
have guided Provincial Courts in exercising a discretion
to admit or
reject a late tendered affidavit (see e.g. authorities collated in
Zarug v Parvathie
1962
(3) SA 872
(N)). It is sufficient for the purposes of this
appeal to say that, on any approach to the problem, the adequacy or
otherwise
of the explanation for the late tendering of the affidavit
will always be an important factor in the enquiry.”
[13] It
was then later stated by Dlodlo J in
Standard
Bank of SA Ltd v Sewpersadh and Another
2005
(4) SA 148
(C) in paras 12 – 13:
“
The
applicant is simply not allowed in law to take it upon himself and
[to] file an additional affidavit and put same on record
without even
serving the other party with the said affidavit. . . .
Clearly
a litigant who wished to file a further affidavit must make formal
application for leave to do so. It cannot simply
slip the
affidavit into the Court file (as it appears to have been the case in
the instant matter). I am of the firm view
that this affidavit
falls to be regarded as
pro
non
scripto
.”
[14] To
permit the filing of further affidavits severely prejudices the party
who has to meet a case based on those submissions.
Furthermore,
no reason was placed before the court
a
quo
for requesting it to exercise a
discretion in favour of allowing the further affidavits.
Consequently the court
a quo
was correct in ruling that the affidavits were
inadmissible.’
(Own emphasis).
[23]
The
specific passage referred to and quoted in paragraph [13] of
Hano
case, was relied on by Ekhuruleni’s counsel in urging me to
find that Intrax’s supplementary answering affidavit should
be
considered as
pro
non scripto
.
The present case is distinguishable from the position described by
Dlodlo J in
Standard
Bank of SA Ltd v Sewpersadh and Another
.
In the present instance, Intrax’s attorney of record did not
merely ‘
put
’
the
supplementary
answering affidavit on record (i.e., loaded it on CaseLines)
without
delivering it to Ekurhuleni’s attorneys of record. It was
served on the latter attorneys as far back as 8 May 2023.
[60]
By the time of the hearing there was also a formal application to
permit the supplementary answering affidavit, as was foreshadowed
in
the affidavit itself.
[61]
Ekurhuleni filed an answering affidavit in response to the
interlocutory application and Intrax thereafter filed a replying
affidavit, but no one could
have
been surprised by its subsequent filing and service.
[24]
In any event,
I am not persuaded that Intrax’s
supplementary
answering affidavit should be treated as being
pro
non scripto
. It might well have
been somewhat audacious for Intrax to summarily have delivered its
supplementary answering affidavit
in anticipation of its being
authorised by the court, but this step does not necessarily justify
such an overly strict approach.
[25]
In
my view, Mr
Mthimkuhlu’s
statement
concerning the need for the supplementary answering affidavit, i.e.,
specifically to address
issues
raised by Ekurhuleni in its replying affidavit that ought to have
been dealt with in its founding affidavit, cannot just
be accepted
without more. In my view the need is somewhat exaggerated.
Ekhuruleni was entitled to rely on the so-called
Graham
v Ridley
approach,
and Intrax was faced with the burden of justifying its occupation of
the property. The difficulty that emerged from
this approach,
was that Ekhuruleni then sought to elaborate on the reasons why
Astron and Intrax were no longer entitled to remain
in occupation of
the property, but, in the process, also omitted to distinguish
between Mr Mthimkuhlu’s involvement with
it and those of his
successors-in-title. Obviously, Intrax was seized with the
burden of justifying its continued occupation
and possession
thereof. It relies on, among others defences, two defences, to
do so, i.e., (i) an undertaking to sell the
property to it by
Ekhuruleni’s predecessor; and (ii) the defence of acquisitive
prescription. These defences apparently
form the mainstay of
Intrax’s
present review application.
[62]
[26]
In the light
of the aforegoing background and the considerations mentioned
therein, the main reasons for permitting Intrax’s
supplementary
answering affidavit to stand – or admitting it of record - are:
[26.1]
Ekurhuleni’s
omission to deal with the occupation and possession of the property
from the outset, e.g., by providing no evidence
of Intrax’s
involvement, as well as that of its predecessors (including, among
others, Mr Mthimkuhlu himself), from 1991
onward, as briefly outlined
in paragraph [18.3] above,
coupled
with Mr Mthimkuhlu’s
assertion that he - as set out in Intrax’s supplementary
answering affidavit - was at the forefront
of all developments on the
property since, at least, 1991, albeit through various corporate
entities that were established and/or
interposed from time to time;
[26.2]
The parties’
conflation of the corporate entity, Intrax – as well as the
corporate
entities of its predecessors (if any) - and its sole director, Mr
Mthimkhulu, which could influence the relevant factual
enquires in
issue;
[26.3]
Mr Mthimkuhlu
submission that Intrax has
fully
made out a case in
Intrax’s
present review application
for relief based on
acquisitive prescription and that, in addition to what he deposed to
in Intrax’s answering affidavit,
Intrax is entitled to
ownership of the property in terms of
section 1
of the
Prescription
Act read
together with section 25 of the Constitution, cannot simply
be ignored. The underlying reasons for this viewpoint are:
First
,
Intrax’s present review application is not before me and it
would be idle to speculate on the relative strength of its merits
or
otherwise;
second
,
although it might currently be difficult to conceive how, in the
fullness of time, Intrax might be able to justify the alleged
defences it has raised, it would be folly and to try and pre-empt the
outcome of such review. This might well give rise to
a
conflicting judgment on the exact same rubric(s), which – in
these circumstances – ought to be avoided. One
might well
ask how these factors have anything to do with the discretion that I
was required to exercise
vis-á-vis
the admission of
Intrax’s
supplementary answering affidavit. It influences the discretion
because it ultimately will allow for the main
application to be
adjudicated fairly on the entire conspectus of correct facts,
including those deposed to in
Intrax’s
supplementary answering affidavit which deals with the new and
somewhat unexpected emphasis adopted in Ekhuruleni’s
replying
affidavit and the identified shortcomings emerging from it.
This, in my view, is in the interests of justice; and
[26.4]
The need to
obviate any potential prejudice to Intrax and its predecessors
coupled with the fact that the appropriate orders for
costs surely
will eliminate any prejudice that might be caused by the filing of
Intrax’s supplementary answering affidavit,
as well as
Ekhuruleni’s supplementary replying affidavit.
EW DUNN
Acting Judge of the High
Court
Gauteng Division
Johannesburg
Counsel for the
applicant: Adv C
Shongwe.
Instructed
by:
Sikunyana Incorporated,
54
Maxwell Drive, Woodmead North Office Park,
Block
B 2
nd
Floor,
Office 16,
Woodmead.
Care
of: AF van Wyk Attorneys,
33
Nelson Road,
Booysens,
Johannesburg.
2001
Counsel for first
respondent: Adv Masonwabe H Mhambi and Adv Asanda Dipa.
Instructed by:
Ntanga Nkhulu Incorporated
Unit
24, Wild Fig Business Park
1492
Cranberry Street
Honeydew
Care
of: Ndima Msiza Incorporated
Date of hearing: 6
September 2023
Date of Judgment: 29
February 2024
Judgment handed down
electronically
[1]
Notice
of Motion – eviction application: para 1, CaseLines, p. 02-2,
read with the founding affidavit (
FA
):
para 9, CaseLines, p. 02-8.
[2]
Answering
affidavit (
AA
):
CaseLines, pp. 01-98 to 01-138.
[3]
Replying
affidavit (
RA
):
CaseLines, pp. 01-50 to 01-81.
[4]
Intrax's
supplementary answering affidavit (
SAA
):
para 4, CaseLines, p. 01-143.
[5]
Ekurhuleni's
opposing affidavit: CaseLines, pp. 01-1 to 01-12, especially at para
6, p. 01-6. See too, in this regard, Ekurhuleni’s
heads
of argument: paras 6 to 10, CaseLines, para 10, p. 01-7.
[6]
Ekurhuleni's
opposing affidavit: CaseLines, para 10, p. 01-7.
[7]
Intrax's
interlocutory application: CaseLines, 01-36 to 01-49.
[8]
1931
TPD 476
at p. 479.
[9]
FA:
para
13, CaseLines, p. 02-8, read with annexure
COE 2
,
pp. 02-33 and 02-34.
[10]
Ibid
.,
para 101, CaseLines, p. 02-25.
[11]
Ibid
.,
paras 18 and 19, CaseLines, p. 02-9, read with annexure
COE 3
,
pp. 02-35 and 02-64.
[12]
Ibid
.,
para 20, CaseLines, p. 02-9.
[13]
Ibid
.,
para 21, CaseLines, p. 02-10, read with annexure
COE 4
,
pp. 02-65 and 02-66.
[14]
Ibid
.,
para 22, CaseLines, p. 02-10.
[15]
Ibid
.,
para 24, CaseLines, p. 02-10.
[16]
Ibid
.,
paras 27 to 31, CaseLines, pp. 02-11 and 02-12, read with,
respectively, annexure
COE 5
,
pp. 02-67 and 02-68, as well as annexure
COE 6
,
pp. 02-69 and 02-70.
[17]
Ibid
.,
paras 27 to 31, CaseLines, pp. 02-11 and 02-12, read with,
respectively, annexure
COE 7
,
pp. 02-71 and 02-73.
[18]
Ibid
.,
paras 43 to 46, CaseLines, pp. 02-14 and 02-15, read with,
respectively, annexure
COE 12
,
pp. 02-91 to (seemingly) 02-164. The franchise agreement is of
such a poor quality that it is mostly illegible.
Only legible
copies of documents should be used as annexures, and – if
there is not such a copy – the document ought
to be retyped
and certified as a true and correct rendition of the document in
question.
[19]
Ibid
.,
paras 47 to 51, CaseLines, p. 02-15.
[20]
Id
.
[21]
Ibid
.,
paras 35 to 37, CaseLines, p. 02-13, read with, respectively,
annexure
COE 8
,
p. 02-74, as well as
annexure
COE 9
,
pp. 02-75 and 02-76.
[22]
Ibid
.,
paras 38 and 39, CaseLines, pp. 02-13 and 02-14, read with annexure
COE 10
,
p. 02-77.
[23]
Ibid
.,
para 52, CaseLines, p. 02-16, read with annexure
COE 14
,
pp. 02-165 to 02-167.
[24]
Ibid
.,
paras 53 to 55, CaseLines, p. 02-16, read with, respectively,
annexure
COE 15
,
pp. 02-168 to 02-183, as well as annexure
COE 16
,
pp. 02-184 and 02-185.
[25]
See,
paragraph 12.6 above.
[26]
Ibid
.,
paras 62 to 71, CaseLines, pp. 02-17 to 02-19, read with,
respectively, annexure
COE 15
,
pp. 02-168 to 02-183, as well as annexure
COE 16
,
pp. 02-184 and 02-185.
[27]
This
subject-matter was referred to in paragraphs 12.11 and 12.12 above.
[28]
Ibid
.,
paras 72 to 76, CaseLines, pp. 02-19 and 02-20, read with annexure
COE 17
,
pp. 02-186 to 02-194.
[29]
Ibid
.,
paras 77 to 78, CaseLines, p. 02-20, read with annexure
COE 18
,
pp. 02-195 to 02-223, especially at paras 1 to 3, p. 02-222.
[30]
Ibid
.,
paras 83 to 85, CaseLines, pp. 02-21 and 02-22, read with annexure
COE 20
,
pp. 02-228 and 02-229.
[31]
See
paragraph 8 above.
[32]
1931
TPD 476
at p. 479.
[33]
See
paragraph 10 above.
[34]
See
paragraphs 12.9 and 12.10 above.
[35]
It
will be recalled that this offer allegedly was rejected by
Ekurhuleni on two occasions, namely: (i) on or about 25 November
2010; and (ii) on 31 August 2022 (See, in this regard, paragraphs
12.12 and 12.19 above).
[36]
See
annexure
COE 9
,
pp. 02-75 and 02-76, especially the name of the bidder on p. 02-76,
which is recorded as being ‘
Vusumuzi
Mthimkhulu
’.
[37]
See
paragraphs 12.8 and 12.9 above.
[38]
See
paragraph 12.12 above.
[39]
See
paragraph 12.19 above.
[40]
AA:
CaseLines, para 26, p. 01-157, as well as para 66.1.2, p. 01-173.
[41]
Ibid
.,
paras 27 and 28, pp. 01-157 and 01-158, as well as annexure
IVRM 1
,
pp. 01-178 to 01-184.
[42]
AA:
CaseLines, paras 67.1 to 67.3, p. 01-174.
[43]
See
paragraph 1.3.1 above.
[44]
AA:
CaseLines,
para 27, pp. 01-157 and 01-158; para 30.2, p. 01-159; paras 39 to
43, pp. 01-163 to 01-165.
[45]
Ibid
.,
CaseLines, para 43, pp. 01-185.
[46]
Replying
affidavit (
RA
):
CaseLines, para 23 (
inclusive
of subparas 23.1 to 23.3), p. 01-137; and paras
25.1.3
and 25.1.4, p. 01-139.
[47]
Ibid
.,
CaseLines, para 9.3, p. 01-124; para 11.1.3, pp. 01-125 and 126.
[48]
Ibid
.,
CaseLines, paras 13.2, p. 01-130.
[49]
Ibid
.,
CaseLines, paras 11.2 to 11.12, pp. 01-126 to 01-129; para 20.1, pp.
01-133 and 134; para 24.1, p. 01-138; and para 29, p.
01-140.
[50]
Ibid
.,
CaseLines, para 30, p. 01-219.
[51]
Supplementary
answering affidavit (
SAA
):
CaseLines,
paras 10 to 17, pp. 01-212 to 01-215.
[52]
Id
.
[53]
Ibid
.,
CaseLines, para 18, p. 01-215.
[54]
Ibid
.,
CaseLines, paras 19 and 20, pp. 01-215 and 01-216.
[55]
Ibid
.,
CaseLines, para 21, p. 01-216.
[56]
Ibid
.,
CaseLines, paras 26 and 27, pp. 01-217 and 01-218.
[57]
AA:
CaseLines, para 60, p. 01-190.
[58]
2013
(1) SA 161
(SCA) at paras [10] to [14], p. 164 B – p.
165 D, but especially at para [13], p. 164 A – C.
[59]
Id
.
[60]
Notices:
CaseLines 2 (10), Proof of service, pp. 02- 254 and 255.
[61]
SAA:
CaseLines, para 30, p. 01-219.
[62]
AA:
CaseLines, para 43, pp. 01-185.
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