Case Law[2023] ZAGPJHC 669South Africa
Municipal Employees Pension Fund v Eliopoulos (038375/2022) [2023] ZAGPJHC 669 (8 June 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
8 June 2023
Headnotes
judgment against a respondent lessee (Mr Eliopoulos) for confirmation of cancellation of a lease agreement, eviction of Mr Eliopoulos and all those who occupy the leased premises through or under him and payment of a sum of R10,365.94 plus interest and costs of suit on the attorney and own client scale. 2. The agreement relates to premises described as Shop 15, Bredell Square, Kempton Park, Gauteng, and situated at Erf 464, Farm
Judgment
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## Municipal Employees Pension Fund v Eliopoulos (038375/2022) [2023] ZAGPJHC 669 (8 June 2023)
Municipal Employees Pension Fund v Eliopoulos (038375/2022) [2023] ZAGPJHC 669 (8 June 2023)
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sino date 8 June 2023
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
JOHANNESBURG
Case No: 038375/2022
NOT REPORTABLE
NOT OF INTEREST TO
TOHER JUDGES
NOT REVISED
08.06.23
In
the matter between
THE
MUNICIPAL EMPLOYEES’ PENSION FUND
Applicant / Plaintiff
# And
And
# CHRISTO ELIOPOULOS
CHRISTO ELIOPOULOS
Respondent / Defendant
# Neutral citation:
Neutral citation:
The
Municipal Employees’ Pension Fund v Christo Eliopoulos
(Case
No: 038375/2022) [2023] ZAGPJHC 669 (08 June 2023)
## JUDGMENT
JUDGMENT
PEARSE AJ:
AN OVERVIEW
1.
An applicant lessor (MEPF) seeks summary judgment against a
respondent lessee (Mr Eliopoulos) for confirmation of cancellation
of
a lease agreement, eviction of Mr Eliopoulos and all those who occupy
the leased premises through or under him and payment of
a sum of
R10,365.94 plus interest and costs of suit on the attorney and own
client scale.
2.
The agreement relates to premises described as Shop 15, Bredell
Square, Kempton Park, Gauteng, and situated at Erf 464, Farm
Rietfontein No. 31, Bredell, Gauteng.
3.
Whilst taking issue with the late delivery of that application and
contesting interlocutory non-compliance and condonation applications,
Mr Eliopoulos – inexplicably – has delivered no affidavit
resisting summary judgment. The absence of an affidavit is
a pivotal
omission or oversight on his part because the pleaded defences
paraphrased in paragraph 14 below are unconfirmed on oath
and appear
inconsistent with (at the least) Mr Eliopoulos’ further letter
of 18 February 2022 referred to in paragraph 11
below.
4.
The absence of an opposing affidavit and the striking inconsistency
in the factual versions put up by Mr Eliopoulos are not plausibly
explained on the papers and thus undermine the genuineness of the
pleaded defences. In what follows:
4.1. the parties’
contentions in respect of the summary judgment, non-compliance and
condonation applications are outlined
in paragraphs 15 to 28 below;
and
4.2. I decide the three
applications, in reverse order, in paragraphs 33 to 58 below. For the
reasons set out in this judgment,
I consider that Mr Eliopoulos’
non-compliance application should fail; whereas MEPF’s
condonation and summary judgment
applications should succeed.
THE PROCEEDINGS
The conclusion,
extension and termination of the agreement
5.
The parties concluded a written agreement of lease in respect of the
premises on 17 March 2016. In terms of clauses 4.6 and 4.7,
the
agreement would endure for one year commencing on 01 January 2016 but
be subject to an option period of three years commencing
on the
expiry of the initial period. MEPF would be entitled to cancel the
agreement if Mr Eliopoulos failed to pay the monthly
rental or
breached any other term or condition of the agreement and failed to
remedy his breach within seven days of receipt of
written notice
requiring him to do so.
6. On 14 December 2017
the parties concluded a written “
renewal addendum
”
to the agreement. The addendum records that Mr Eliopoulos “
has
exercised the said right of renewal
” and would continue to
lease the premises “
for the period: 01 January 2018 to 31
December 2020
”. Clause 6 provides that “
[a]ll the
other terms and conditions of the existing AGREEMENT OF LEASE shall
apply mutatis mutandis to this addendum except that
there will be a
further right of renewal for an option period of 3 years to be
exercised 4 months before expiry date of this Addendum.
”
7. According to MEPF, the
agreement:
7.1. terminated by
effluxion of time on 31 December 2020; but
7.2. continued by tacit
consensus of the parties on a month-to-month basis.
8. On Mr Eliopoulos’
pleaded version:
8.1. the right of renewal
referred to in paragraph 6 above was exercised by him on 06 November
2020; and
8.2. the parties
concluded a written second addendum extending the agreement for three
years from 01 January 2021 to 31 December
2023.
9. On 02 February 2022
MEPF wrote to Mr Eliopoulos notifying him of its termination of the
agreement with effect from 28 February
2022.
10. By email dated 08
February 2022, Mr Eliopoulos responded to MEPF in the following
terms:
“
Dear Board of
Directors, can I please plead to you and ask for a second chance or
can I ask what made you decide I am not worthy
to be a tenant
anymore.
I’m so sorry, I
just have so many questions as to have I done anything wrong and you
do not want to renew my lease agreement.
I have been a tenant
for 6 years and am very happy. I was always up to date when Covid
hit. it was something no-one had ever seen
and did the whole world
economy harm.
I won’t lie the
last two years have been very challenging and slowly I see we’re
getting back to normal.
Can I ask why cant you
give me a chance to sell my store as it has sum value and with that I
will be able to settle you and have
something to look at starting up
somewhere else.
Please can I ask if
you can review my lease agreement.
”
11. Although his further
letter does not form part of the record, it appears that Mr
Eliopoulos wrote to MEPF on 18 February 2022
contending that the
agreement had been renewed in May 2021 for three years from 31
December 2021 to 31 December 2024.
12.
On 11 July 2022 attorneys for MEPF responded to attorneys for Mr
Eliopoulos denying the contention that “
the lease agreement
was renewed in May 2021, for 3 years from 31 December 2021
”,
asserting the termination and continuation recorded in paragraph 7
above, contending for the termination recorded in paragraph
9 above
and demanding that “
your client vacate the leased premises
by no later than Monday, 18 July 2022, failing which our client will,
without further notice,
institute urgent ejectment proceedings
against your client, and shall seek a costs order against your
client.
”
The summons, plea and
counterclaim
13.
MEPF issued summons against Mr Eliopoulos on 26 October 2022. In its
particulars of claim, MEPF pleads:
13.1. conclusion on 17
March 2016 and material terms of the agreement (annexure POC1),
including that the agreement would endure
for one year and terminate
on 31 December 2016 unless Mr Eliopoulos exercised an option to
extend it for a further period of three
years;
13.2. compliance by MEPF
with its obligations under the agreement;
13.3. conclusion on 14
December 2017 and material terms of an addendum (annexure POC2),
including that the agreement would endure
for three years and
terminate on 31 December 2020 unless Mr Eliopoulos exercised an
option – in writing within four months
of the termination date
– to extend it for a further period of three years;
13.4. termination of the
agreement by effluxion of time on 31 December 2020;
13.5. continuation of the
agreement by tacit consensus of the parties on a month-to-month
basis, subject to its termination on written
notice by either party;
13.6. breach by Mr
Eliopoulos of his obligations under the agreement, including that
“
the defendant has since 01 June 2021 failed to make full
payment of the rental on due dates and despite demand has also failed
to
remedy its breach, when called upon to do so
”;
13.7. cancellation of the
agreement by MEPF on 02 February 2022 with effect from 28 February
2022; and
13.8. entitlement to
confirmation of cancellation of the agreement, eviction of Mr
Eliopoulos and all those who occupy the premises
through or under him
and payment of a sum of R10,365.94 plus interest and costs of suit on
the attorney and own client scale. Annexed
to the particulars of
claim is a “
Tenant/Debtor Transactions
” statement
for the period January 2015 to October 2022 reflecting a balance due
by Mr Eliopoulos to MEPF of R10,365.94 at
the end of the period.
14. Mr Eliopoulos
delivered a plea and counterclaim on 14 December 2022. As appears
therefrom:
14.1. the plea avers
that:
14.1.1. the right of
renewal referred to in paragraph 6 above did not have to be exercised
in writing and was exercised by Mr Eliopoulos
on 06 November 2020;
14.1.2. the parties
concluded a written second addendum extending the agreement for three
years from 01 January 2021 to 31 December
2023, save that Mr
Eliopoulos would have a right of renewal – to be exercised
within four months of the termination date
– to extend the
agreement for a further period of three years;
14.1.3. the second
addendum is in the possession of MEPF;
14.1.4. Mr Eliopoulos was
not in arrears at March 2020, at which time the Covid 19 pandemic and
resultant “
level 5 lockdown
” regulations precluded
him from conducting his business at the premises and created “
a
vis major situation
” beyond Mr Eliopoulos’ control
that deprived him of beneficial occupation of the premises and
entitled him to a complete
remission of rentals and charges under the
agreement for the 3.5-month duration of hard lockdown;
14.1.5. MEPF’s
purported cancellation of the agreement on 02 February 2022 was
unlawful; and
14.1.6. the claims
against Mr Eliopoulos should be dismissed with costs; and
14.2. the counterclaim
contends that MEPF is liable to pay Mr Eliopoulos:
14.2.1. a sum of
R49,947.07 in consequence of the complete remission of rentals and
charges under the agreement for the 3.5-month
duration of hard
lockdown; and
14.2.2. damages in a sum
of R400,000 “
in respect of renovations that were done to the
premises to which the defendant renovations the defendant has a lien
on
.”
The summary judgment
application
15. On 02 February 2023
MEPF initiated an application for summary judgment against Mr
Eliopoulos for the relief claimed in its summons
and particulars of
claim. It is common cause that the application was out of time –
Mr Eliopoulos says that it was 17 court
days late; MEPF says that it
was seven court days late. An affidavit in support of the application
was deposed to by Zamani Letjane,
a director of MEPF’s
administrator, on the same day. The deponent:
15.1. swears positively
to the facts set out in the particulars of claim and verifies the
causes of action underpinning MEPF’s
ejectment and liquidated
money claims;
15.2. denies that the
plea and counterclaim raise any triable issue;
15.3. submits that, on a
proper interpretation, the agreement did not provide for an oral
extension of its duration;
15.4. denies conclusion
of a second addendum;
15.5. submits that the
email referred to in paragraph 10 above constitutes a concession by
Mr Eliopoulos that “
he did not exercise a right of renewal
and understood that the agreement applied on a month-to-month tacit
basis from 01 January
2021
”;
15.6. adds that, even if
the parties did conclude such an addendum, it would have been on the
terms of the agreement, clause 30
of which empowers MEPF to terminate
the agreement on written notice, as it did on 02 February 2022;
15.7. argues that Mr
Eliopoulos pleads no statutory or common law right to a remission of
rentals and charges under the agreement
and, in any event, that he
was in arrears with such amounts before the start of hard lockdown;
and
15.8. submits that the
counterclaim is irrelevant to the merits of the summary judgment
application and, in any event, that clauses
19.1, 19.3 and 19.5 of
the agreement exclude any lien over renovations and thus destroy the
counterclaim.
16.
At no time thereafter did Mr Eliopoulos deliver an affidavit opposing
the summary judgment application. I address the significance
of this
omission or oversight in what follows.
The non-compliance
application
17.
On 15 February 2023 Mr Eliopoulos delivered a notice in terms of rule
30A contending that “
[t]he applicant has failed to comply
with the provisions of s 32(2)(a) of the Uniform Rules of Court, in
that they have failed to
deliver their application for Summary
Judgment within 15 days from the delivery of the Respondents plea to
the Registrar of the
above Honourable Court
” and notifying
MEPF of “
the Respondent’s intention to after the lapse
of 10 (ten) days, apply to the above Honourable Court for an order
that applicants
claim be struck out.
”
18.
Mr Eliopoulos’ attorneys wrote to MEPF’s attorneys on 12
March 2023 referring to the rule 30A notice and recording
that,
“
should we not hear from you by close of business Monday 12
March 202 as to whether your client shall be withdrawing your
application
for Summary Judgment due to non-compliance with
provisions of s32(2)(a), we shall have no alternative, as stated in
the Notice,
but to apply for your client’s claim to be struck
out.
”
19.
The summary judgment application was not withdrawn by MEPF.
20.
On 16 March 2023 Mr Eliopoulos delivered an application in terms of
rule 30A seeking an order
“
[c]ompelling
the Respondent to withdraw their application for Summary Judgment as
they failed to deliver this application to the
Applicant’s
attorneys within 15 days from the delivery of the Respondent’s
plea to the Registrar of the above Honourable
Court
”
and granting him “
leave
to approach this Honourable Court on the same papers, duly amended
where necessary, for an Order in terms whereof the Respondent’s
claim be struck out and judgment be granted in favour of the
Applicant under Case Number 38375/2022 with costs should the
Respondent
fail to comply with prayer 1.
”
An
affidavit in support of the non-compliance application was deposed to
– not by Mr Eliopoulos but by a partner of his attorneys
–
on the same day. It contends that “
the
Applicant is prejudiced in defending the matter as the Respondent in
spite of receiving the Notice and the email of 12 March
2023, has
failed to withdraw the application for Summary Judgment necessitating
the Applicant to proceed by way of this application
to ensure that
the Rules of Court are complied with by the Respondent.
”
21.
By email dated 16 March 2023, MEPF’s attorneys wrote to Mr
Eliopoulos’ attorneys advising that their client would
deliver
a notice of intention to oppose the non-compliance application on the
following day and requesting that any opposition
to the summary
judgment application be confirmed by 17:00 on 17 March 2023, “
failing
which we shall proceed to have the summary judgment application
enrolled, on an unopposed basis.
”
22.
Mr Eliopoulos delivered a notice of intention to oppose the summary
judgment application on 17 March 2023.
The condonation
application
23.
On 24 March 2023 MEPF delivered a notice of a “
conditional
counter-application
” seeking an order, in the event that Mr
Eliopoulos’ non-compliance application was not dismissed,
“
condoning … the late filing of the summary judgment
application
” or “
extending the period for MEPF
filing the summary judgment application to 02 February 2023, with any
results of MEPF’s delay
in delivering this application
cancelled.
” Mr Eliopoulos was notified of MEPF’s
intention to seek an order dismissing the non-compliance application
with costs
in the event of opposition to the condonation application.
An affidavit answering the non-compliance application and supporting
the condonation application was deposed to by a partner of MEPF’s
attorneys and confirmed by two of his colleagues on 23
and 24 March
2023. As regards:
23.1. the non-compliance
application, the deponent submits that Mr Eliopoulos gave notice
incompetently under rule 30A, which regulates
situations in which
something is required to be done to remedy non-compliance with the
rules, as opposed to under rule 30, which
regulates situations in
which a claim or defence is sought to be struck out on account of
non-compliance with the rules. Hence
the application seeks invalidly
to strike out MEPF’s action as opposed to the summary judgment
application. It should thus
be dismissed with costs; and
23.2. the condonation
application, the deponent explains that, if the court finds the
non-compliance application to be competent,
he, the lead attorney on
the matter, was on year-end leave between 15 December 2022 and 12
January 2023 whilst the other attorney
on the matter was on leave
between 23 December 2022 and 11 January 2023 “
but had
resurfacing health issues throughout December 2022 and January 2023,
requiring him to resume a treatment plan that was prescribed
by an
orthopaedic surgeon, which meant that he could not dedicate
sufficient time to deal with all the matters in which he is
involved
.” In addition, key officials of MEPF and its
administrator were away from 22 December 2022 to between 13 and 20
January 2023.
MEPF instructed its attorneys to initiate the summary
judgment application in late January 2023, at which time the
application
was compiled and served on 02 February 2023. Finally, it
is submitted that the application enjoys strong prospects of success
and
Mr Eliopoulos is not prejudiced by the delay of two or three
weeks.
24.
Mr Eliopoulos delivered a notice of intention to oppose the
condonation application on 20 April 2023.
The submissions
25.
Counsel for MEPF, Matthew Kruger, filed a practice note and
supplementary practice note in the proceedings on 17 April and 17
May
2023 respectively; as well as heads of argument.
26.
On 15 May 2023 MEPF delivered a notice of set down of the summary
judgment, non-compliance and condonation applications.
27.
In accordance with a directive issued by this court, counsel for the
parties uploaded on CaseLines a joint practice note on
19 May 2023.
It confirmed a common awareness that the three applications would
serve before court in the week of 29 May 2023.
28. Counsel for Mr
Eliopoulos, Kobus Lowies, handed up short heads of argument at the
hearing on 01 June 2023. As appears therefrom,
it is submitted on
behalf of Mr Eliopoulos that:
28.1. “
the
applicant does not outright apply for condonation or for an extension
of the time period within which it could file its application
for
summary judgement. The respondent’s argument is that, unless
condonation is granted to the applicant for the late filing
of its
application for summary judgement, then the application for such
judgment would be premature
”;
28.2. “
until and
unless the rule 30A application of the respondent is disposed of the
respondent did not have the opportunity (as is its
right) to reply to
the merits of the application for summary judgement
”;
28.3.
Mphahlele
[1]
is authority for the proposition that an applicant for summary
judgment under amended rule 32 may not annex to its affidavit in
support thereof documents that are not annexed to its particulars of
claim;
[2]
and thus
28.4. the email referred
to in paragraph 10 above should be disregarded by this court.
GENERAL PRINCIPLES
29.
An
application for summary judgment is competent in action proceedings
where a plaintiff believes that a defendant does not have
a genuine
defence to a claim and opposes it merely to delay the grant of
relief.
[3]
30.
In
deciding whether the defendant has a genuine defence, the court
considers whether the plea discloses the nature and grounds of
a
defence to the claim that, on the face of it, is
bona
fide
and
good in law.
[4]
31.
Rule
32 recognises that a hopeless defence may occasion the plaintiff
costs and delays that amount to an abuse of process;
[5]
whereas, as an extraordinary remedy, the rule is not intended to
deprive the defendant of an opportunity of placing a triable issue
before court.
[6]
32.
As amended, therefore, rule 32 provides
inter
alia
that:
32.1.
within 15 court days of delivery of the
defendant’s plea, the plaintiff applying for summary judgment
in respect of a claim
must, by affidavit, verify the cause of action
and amount of the claim, identify any point of law and the material
facts on which
it is based, and explain briefly why the pleaded
defence does not raise a triable issue (rule 32(2)(a) and (b);
and
32.2.
in response, the defendant may satisfy the court,
by affidavit or, with leave of the court, oral evidence, that the
defendant has
a genuine defence to the claim. The affidavit or
evidence must disclose fully the nature and grounds of the defence
and the material
facts on which it is based (rule 32(3)(b).
THE ISSUES
The condonation
application
33.
In his submissions on behalf of MEPF, Mr Kruger
sought to explain that the condonation application is dependent on a
finding by
this court that Mr Eliopoulos’ rule 30A challenge to
the summary judgment application is competent.
When
pressed on whether condonation was required
in
any event
, he clarified that MEPF
does
seek condonation for its delay and invited me to
have regard to the explanation provided and confirmed in his
instructing attorneys’
affidavits. Mr Kruger submitted that I
should exercise my discretion in favour of MEPF since the summary
judgment application enjoys
good prospects of success, Mr Eliopoulos
identifies no prejudice suffered by him in consequence of a delay of
two or three weeks
and the delay is properly explained on behalf of
MEPF. He added that Mr Eliopoulos had delivered no affidavit in
opposition to
the condonation application.
34.
On behalf of Mr Eliopoulos, Mr Lowies submitted
that, regardless of whether rule 30 or rule 30A was applicable to the
late delivery
of the summary judgment application, the conditional
nature of MEPF’s application is such that there is no
application before
this court for condonation of the common-cause
late delivery of that application. In his submission, were I to grant
condonation,
Mr Eliopoulos would be prejudiced in that the
application would or could proceed in the absence of any opposing
affidavit. Thus
Mr Lowies submitted that the hearing should be
adjourned to enable Mr Eliopoulos to deliver an answering affidavit
in the summary
judgment application. When put to him that it had at
all times been open to Mr Eliopoulos to deliver such an affidavit,
even if
only in case condonation were to be granted, Mr Lowies
responded that a request for an adjournment was “
the
best argument
”
available to him
in the circumstances of the case.
35.
I am satisfied that the condonation application is
before me and falls to be decided at this time. I consider too that
the summary
judgment application enjoys good prospects of success and
that no case is made out that Mr Eliopoulos was prejudiced by the
relatively
brief delay in its delivery. In addition, the uncontested
evidence of the attorneys for MEPF provides an adequate explanation
for
such delay. Nor would the interests of justice be served by
consigning the parties to prepare for and conduct a trial in the
circumstances
of this case.
36.
The late delivery of the application for summary
judgment is condoned. Since it seeks an indulgence, MEPF should bear
the costs
of the condonation application on the ordinary scale.
The non-compliance
application
37.
It was submitted by Mr Kruger that any challenge
to the late delivery of the summary judgment application ought to
have been brought
under rule 30 and that prayers 1 and 2 of the
non-compliance application are incompetent under rule 30A. In his
submission, that
application falls to be dismissed with costs.
38.
It was fairly conceded by Mr Lowies that Mr
Eliopoulos enjoys no right to seek either the withdrawal of the
summary judgment application
or the striking-out of MEPF’s
action or application. With reference to this court’s
discretion under rule 30A(2) to
“
make
such order thereon as it deems fit
”
,
however, he submitted that this court should adjourn the proceedings
to afford Mr Eliopoulos an opportunity to deal with the applications
for condonation and summary judgment.
39.
It is common cause that the relief sought in the
non-compliance application is incompetent. Since Mr Eliopoulos
elected not to answer
the condonation and summary judgment
applications, I consider there to be no sound basis on which to
accede to a last-minute request
for an adjournment of the
proceedings. In any event, since the non-compliance application was
and is without merit, reliance on
rule 30A(2) is misplaced.
40.
Thus, the non-compliance application should be
dismissed with costs on the ordinary scale.
The summary judgment
application
41.
Although
insistent that Mr Eliopoulos could and should have delivered an
affidavit opposing summary judgment, even if under protest
or
reservation of rights, Mr Kruger noted that the defences to the
claims – extension and remission – are set out in
the
plea and counterclaim and could be considered by this court. However,
it was submitted that, in the absence of any answering
affidavit, Mr
Eliopoulos fell short of the standard required of a defendant, as
confirmed in
Breytenbach
,
[7]
that
“
the
statement of material facts be sufficiently full to persuade the
Court that what the defendant has alleged, if it is proved
at the
trial, will constitute a defence to the plaintiff’s claim. What
I would add, however, is that, if the defence is averred
in a manner
which appears in all the circumstances to be needlessly bald, vague
or sketchy, that will constitute material for the
Court to consider
in relation to the requirement of bona fides.
”
42.
According to Mr Kruger, both pleaded defences are
fundamentally undermined by Mr Eliopoulos’ email of 08 February
2022,
which makes no mention of them such that there is “
a
glaring absence of any assertion of rights under any second addendum
to the agreement
”
. In any event,
any such addendum would have included rights of termination entitling
MEPF to act as it did on 02 February 2022.
43.
As
regards remission
of
rentals and charges under the agreement
,
Mr Kruger submitted that the plea and counterclaim did not satisfy
the test set out in
Slabbert
,
[8]
being
that: (a) a loss of beneficial occupation, i.e. use and enjoyment, of
the premises must be the direct and immediate result
of the
vis
major
event;
(b) a remission is only competent where reciprocity of performance is
not excluded by the contract (payment monthly in advance
being
indicative of such exclusion); and (c) the computation of the amount
of remission, if not promptly ascertainable, should
be determined by
a court rather than simply estimated and withheld by a lessee.
44.
In the result, in his submission, no
bona
fide
defence to the claims is
established on the papers before court.
45.
In answer, Mr Lowies submitted that Mr Eliopoulos’
email should not have been annexed to MEPF’s affidavit since to
allow
a debate on its contents would bring about the “
mini
trial
”
that
Mphahlele
seeks to avert.
46.
If this court were minded to have regard to the
email, however, he submitted that Mr Eliopoulos should be afforded an
opportunity
to deliver an affidavit explaining its contents. In that
regard, Mr Lowies surmised that, in the circumstances of the case, a
lessee
would seek to appease rather than to antagonise a lessor and,
viewed in that light, the email is not necessarily inconsistent with
the plea and counterclaim.
47.
There is force to the submission quoted in
paragraph 42 above.
48.
However, in the absence of an explanation of its
contents, I regard the email of 08 February 2022 as a curious but
ultimately unreliable
basis on which to assess the genuineness of the
defences pleaded by Mr Eliopoulos. It is conceivable that the email’s
contents
could be contextualised in a manner that would not be
destructive of the pleaded defences. In any event, on the authority
of
Mphahlele
and
in favour of Mr Eliopoulos, I exclude the email from my consideration
of the merits of the summary judgment application.
49.
A more intractable problem for Mr Eliopoulos is
the jarring and unexplained inconsistency between his versions
paraphrased in paragraphs
11
and 14 above,
being that the agreement was renewed:
49.1.
in May 2021, for three years, from 31 December
2021 to 31 December 2024 (per the letter of 18 February 2022); and
49.2.
in November 2020, for three years, from 01 January
2021 to 31 December 2023 (per the plea of 14 December 2022).
50.
In my view, the veracity of the first of Mr
Eliopoulos’ pleaded defences – the alleged renewal
captured in paragraph
49.2 above
–
is
drawn into serious doubt by what he had contended for in an earlier
letter to MEPF – the alleged renewal captured in paragraph
49.1
above.
51.
Absent that inconsistency and resultant doubt, the
pleaded defences paraphrased in paragraph 14 above
could
have been acceptable to this court as being cognisable in our law and
not plainly without merit in the circumstances of this
case. Had they
been confirmed and detailed on oath as required by rule 32(3)(b),
that is, I would likely have been minded not to
grant summary
judgment and to allow the matter to proceed to trial in the ordinary
course of events.
52.
The absence of an affidavit opposing summary
judgment is however a pivotal omission or oversight on the part of Mr
Eliopoulos. Rule
32(3)(b) is clear; and Mr Eliopoulos has been
legally represented since at least July 2022. It could not
responsibly have been
assumed by him or his legal team that the
non-compliance application would succeed or that, in the event of its
failure, the court
would not proceed to hear and decide the summary
judgment application. It is not in dispute that Mr Eliopoulos was
aware that all
three applications were set down for simultaneous
hearing. He could – even at a late stage – have delivered
an answering
affidavit confirming, and explaining the apparent
inconsistency in, the defences advanced on his behalf.
53.
The inexplicable failure to do so – viewed
in the light of the inconsistency in versions paraphrased in
paragraphs 11
and 14 above
–
draws into serious doubt the veracity of such
defences and supports a conclusion that there is no
bona
fide
defence to the claims of MEPF. I
therefore decline the belated request to adjourn these proceedings to
enable Mr Eliopoulos to place
before another court an affidavit that
could and should have been placed before this court.
54.
In the result, it is established on the papers that:
54.1.
after 31 December 2020 the agreement continued by tacit consensus of
the parties on a month-to-month basis, subject to its termination
on
written notice by either party, and was cancelled by MEPF on 02
February 2022 with effect from 28 February 2022; and
54.2.
a sum of R10,365.94 was due by Mr Eliopoulos at 31 October 2022
.
55.
It follows that liability for interest and costs
should be in accordance with clauses 8.2 and 6.1 of the agreement.
56.
Thus, the summary judgment application should be
granted with costs on the agreed scale.
The outcome and order
57.
The absence of an opposing affidavit and the striking inconsistency
in the factual versions put up by Mr Eliopoulos are not
plausibly
explained on the papers and thus undermine the genuineness of the
pleaded defences.
58.
In the circumstances, I grant the following order:
58.1.
Cancellation of
the written agreement of
lease in respect of the premises described as Shop 15, Bredell
Square, Kempton Park, Gauteng, and situated
at Erf 464, Farm
Rietfontein No. 31, Bredell, Gauteng (the premises), concluded on 17
March 2016 and thereafter renewed,
is confirmed.
58.2.
The
respondent (defendant) and all those who occupy the premises through
or under him are:
58.2.1.
ejected
from the premises; and
58.2.2.
directed
to vacate the premises within 10 court days of service of this order.
58.3.
Failing
such vacation of the premises, the sheriff or his deputy of the area
in which the premises are located is authorised and
directed to take
such steps as may be necessary to ensure that the respondent
(defendant) and all those who occupy the premises
through or under
him vacate the premises as soon as possible.
58.4.
The
respondent (defendant) is ordered to pay to the applicant
(plaintiff):
58.4.1.
the
amount of R10,365.94; and
58.4.2.
interest
thereon at the prime lending rate of the Standard Bank of South
Africa from time to time, plus 3%, reckoned from the date
of service
of summons to the date of final payment.
58.5.
The
applicant (plaintiff) is to bear the costs of the condonation
application on the party and party scale.
58.6.
The
respondent (defendant) is to bear the costs of:
58.6.1.
the
condonation application on the party and party scale; and
58.6.2.
the
action and the summary judgment application on the attorney and own
client scale.
PEARSE AJ
This
judgment is handed down electronically by uploading it to the file of
this matter on CaseLines. It will also be emailed to
the parties or
their legal representatives. The date of delivery of this judgment is
08 June 2023.
Counsel
for Applicant:
Advocate Matthew
Kruger
Instructed
By:
Webber Wentzel
Attorneys
Counsel
for Respondent:
Advocate Kobus Lowies
Instructed
By:
Vardakos Attorneys
Date of Hearing:
01 June 2023
Date
of Judgment:
08
June 2023
[1]
ABSA
Bank Ltd v Mphahlele NO and Others
[2020]
JOL 47649
(GP) [32]-[37]
[2]
See,
in particular, rule 32(4).
[3]
Meek v Kruger
1958 (3) SA 154
(T)
159B-160E
[4]
Maharaj
v Barclays National Bank Ltd
1976
(1) SA 418
(A) 426A-F
[5]
Joob
Joob Investments (Pty) Ltd v Stocks Mavundla Zek Joint Venture
2009 (5) SA 1
(SCA)
[30]-[33]
[6]
He
& She Investments (Pty) Ltd v Brand NO and Others
2019
(5) SA 492
(WCC) [10]-[11]
[7]
Breytenbach
v Fiat SA (Edms) Bpk
1976
(2) SA 226
(T) 228B-H
[8]
Slabbert
NO and Others v Ma-Africa Hotels (Pty) Ltd t/a Rivierbos Guest House
[2022]
JOL 56182
(SCA) [21]-[28]
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