Case Law[2024] ZAGPJHC 1041South Africa
Sheng Teng (Pty) Ltd v SA Bulk Commodity Trading and Storage Services (Pty) Ltd (2024/111687) [2024] ZAGPJHC 1041 (15 October 2024)
Headnotes
where the claim for services is of personal nature and based on contract the available recourse to a party is to claim for specific performance and not approach the court for a relief in terms of mandament van spolie. In addition, respondent counsel continued, this Division in in Simons[4] followed Masinda and further that JC Impellers was incorrectly decided and should therefore not be followed.
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Sheng Teng (Pty) Ltd v SA Bulk Commodity Trading and Storage Services (Pty) Ltd (2024/111687) [2024] ZAGPJHC 1041 (15 October 2024)
Sheng Teng (Pty) Ltd v SA Bulk Commodity Trading and Storage Services (Pty) Ltd (2024/111687) [2024] ZAGPJHC 1041 (15 October 2024)
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sino date 15 October 2024
SAFLII
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Certain
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REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, JOHANNESBURG.
Case
Number: 2024-111687
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
15
October 2024
In
the matter between:
SHENG
TENG (PTY) LTD
(Registration
No.: 2016/183746/07)
Applicant
And
SA
BULK COMMODITY TRADING AND STORAGE
Respondent
SERVICES
(PTY) LTD
(Registration
No.: 2000/003572/07)
##
## JUDGMENT
JUDGMENT
Noko
J
Introduction.
[1]
The applicant launched urgent proceedings for an order directing the
respondent to restore the supply of electricity in
respect of
Building 2[…] corner B[…] and S[…] Streets, G[…]
N[…], Germiston (“
leased property
”). The
said leased property was leased by the applicant from the respondent
to conduct a business enterprise for a period
commencing from 2020
and ending in 2025.
[2]
The
respondent averred that it has discovered that there was tempering
with the electricity metre as a result of which the applicant
was
paying less than what the applicant was consuming. The respondent
then installed a new mechanism and alleges that the reading
of
consumption is now correct. The last invoice rendered is in the sum
of R3 956 657.03 which was issued during September.
The
amount said out in the said invoice has not been paid and together
with the contention that the applicant tempered with the
electricity
metre the respondent decided o disconnect the electricity supply.
[1]
[3]
The applicant construes the disconnection as being unlawful and
launched these proceedings and seek the following orders:
1. “Declaring
that this matter to be heard on an urgent basis, and for that
purpose, condonation be granted for dispensing
with the forms and
services provided for in the Uniform Rules 6(12);
2. The respondent
is directed to immediately, upon the granting of the order restore
the electricity supply to the leased
property;
3. The respondent
is ordered not to further disconnect the electricity supply to the
lease property without an appropriate
Court Order and
4. Costs on a C
scale, including the costs of counsel,”
[4]
I had regard to the submissions by both parties on the question
whether the application deserves to be enrolled in an
urgent court.
The respondent contended, inter alia, that the applicant
delayed to approach the court timeously and urgency
was therefore
self-created. I determined that the attempts by the applicant to seek
audience of the respondent to resolve the matter
amicably and to
avoid approaching court on urgent basis were reasonable. I therefore
determined that the matter was urgent and
deserves audience of the
urgent court.
Background
[5]
As stated
in paragraph 1 above the purpose for which the leased property was
occupied was for business enterprise which the applicant
asserts,
required a continuous supply of the electricity. The claim is
predicated on the contention that the applicant was in lawful
possession of the electricity supply and the respondent without
exploiting available legal recourses proceeded to disconnect the
supply of the electricity to the leased property. The applicant
submitted that its case is on all fours with the decision in
JC
Impellers
[2]
where the court ordered in similar circumstances that the respondent
to immediately reconnect electricity supply.
[6]
The
respondent contended in retort that the correct legal position is set
out by the Supreme Court of Appeal in
Masinda
[3]
where the court held that where the claim for services is of personal
nature and based on contract the available recourse to a
party is to
claim for specific performance and not approach the court for a
relief in terms of
mandament
van spolie
.
In addition, respondent counsel continued, this Division in in
Simons
[4]
followed
Masinda
and further that
JC
Impellers
was incorrectly decided and should therefore not be followed.
[7]
The respondent further contended that the Supreme Court of Appeal has
stated spoliation proceedings would be available
to the applicant
where a claim is of personal nature if it can be demonstrated that
the supply of electricity was not only of a
personal nature but also
incidental to the possession.
[8]
The issue for determination is whether indeed the applicant’s
rights to the supply of the electricity is incidental
to the
possession of the property.
[9]
The legal principles underpinning the remedy of
mandament van
spolie
were clearly explained in the judgments alluded to by
counsels for both parties that it is intended to proscribe self-help.
Further
that the applicant is required to demonstrate that the
applicant was in possession of the property and was unlawfully
dispossessed
of the property by the respondent.
[10]
It is
correct, as submitted by the respondent’s counsel based on the
Supreme Court of Appeal decision in
Masinda
that “
In
order to justify a spoliation order the right must be of such a
nature that it vests in the person in possession of the property
as
an incident of their possession.”
[5]
As an
example the court referred to rights bestowed by servitudes,
registration or statute. It was also held in
First
Rand
[6]
that the right held is quasi possessio must be a ‘gebruiksreg’
or an incident of the possession or control of the property.”
However, if the rights sought to be exercised arise from a contract
the recourse lies in the contract and mere possession thereof
would
not entitle one to approach court for a redress in terms of the
spoliation application.
[7]
[11]
In
answering the central question, one may need to determine whether the
electricity supply to the leased property was incidental
to the
possession thereof. Oxford dictionary defined the word incidental to
as meaning “…liable to happen as a consequence
of…”
[8]
The applicant has demonstrated that the possession of the leased
property was in pursuance of the lease agreement entered into
with
the respondent and was to conduct business which requires supply of
electricity. The possession of the property will not be
of any use if
there is no electricity. The link established between the possession
and electricity supply becomes an insurmountable
hurdle for the
respondent to persuade this Court that the applicant’s case is
bound to fail as spoliation cannot be based
just on the right to
supply which is only of a personal nature.
[12]
In contrast
the Supreme Court of Appeal judgment in
Masinda
which was followed by
Simons
were both concerned with the discontinuation of the electricity to
private homes. Such private home appeared not to have been made
available by the applicants and possession was not linked to electric
supply to the control or possession of the premises. Masinda
purchased the electricity through prepaid system hence her right flow
from the purchase and not from possession of the property.
[9]
To this end the judgment can be distinguishable.
[13]
In conclusion it is axiomatic that the applicant was indeed had
access to the electricity and the respondent without
approaching the
court discontinued the supply of the electricity. The facts
demonstrate that supply of the electricity is inextricably
intertwined with the possession and the use of the leased property.
In the premises the applicant’s case met the requirements
for
the redress as envisaged by
mandament van spolie
.
Costs.
[14]
There are no arguments advanced to persuade me to depart from the
principle that the costs follow the results.
Order
.
[15]
In the premises the following order is granted.
1. The applicant’s
non-compliance with the Rules is condoned and the matter to be heard
as one of urgency in terms of
Rules 6(12) of the Uniform Rules of
Court.
2. The respondent
is directed to immediately, upon the granting of the order, to
restore the electricity supply at property
at Building 2[…]
corner B[…] and S[…] Streets, G[…] N[…],
Germiston.
3. The respondent
is ordered not to further disconnect the electricity supply to
Building 2[…] corner B[…] and
S[…] Streets, G[…]
North, Germiston without an appropriate Court Order.
4. Costs on a C
scale, including the costs of counsel.
M
V NOKO
JUDGE
OF THE HIGH COURT.
GAUTENG
DIVISION, JOHANNESBURG.
Dates:
Hearing:
9 October 2024.
Judgment:
15 October 2024.
Appearances:
For
the Applicant: Adv M Rasivhetshele.
Instructed
by Singhs Attorneys.
For
the Respondent: M van der Berg.
Instructed
by Nourse Incorporated.
[1]
See
para 8 of the Respondent’s Answering Affidavit at CL 25.4
where it is stated that “Accordingly, the respondent
was left
with no choice but to cut off applicant’s electricity supply.
The above two factors are related. The fact that
evidence of illegal
tempering has been uncovered, coupled with the large outstanding
amounts means that the applicant cannot
be trusted as a tenant to
(a) allow for the accurate reading of its electricity consumption
and (b) pay what is owed.”
[2]
JC
Impellers (Pty) Ltd v Erven 176/177 Wadeville Proprietary Limited
(107540/2024)
[2024]
ZAGPJHC (02 October 2024)
[3]
Eskom
Holdings SOC Ltd v Masinda
2019
(5) SA 386 (SCA).
[4]
Simons
v The City of Johannesburg Forensic DPT
2019
JDR 2664.
[5]
See
394 E.
[6]
First
Rand v Scholtz
[2006] ZASCA 99.
[7]
See
Masinda
at para [17]. See also
Makeshift
at para [25].
[8]
See
South African: Concise Oxford Dictionary.
[9]
See
Simons
at
para [6] “The Applicant contended that the respondents were
not entitled to disconnect the electricity supply to the
property
because he uses prepaid meter and thus he owed no payment to
electricity.”
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