Case Law[2023] ZAGPJHC 1179South Africa
Inyanda Capital (Pty) Limited v M Sohag Trading (Pty) Limited (2023/081996) [2023] ZAGPJHC 1179 (18 October 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
18 October 2023
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Inyanda Capital (Pty) Limited v M Sohag Trading (Pty) Limited (2023/081996) [2023] ZAGPJHC 1179 (18 October 2023)
Inyanda Capital (Pty) Limited v M Sohag Trading (Pty) Limited (2023/081996) [2023] ZAGPJHC 1179 (18 October 2023)
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sino date 18 October 2023
SAFLII
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IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
LOCAL DIVISION, JOHANNESBURG)
CASE
NO: 2023/081996
NOT
REPORTABLE
NOT
OF INTEREST TO OTHER JUDGES
REVISED
18.10/23
In
the matter between:
INYANDA
CAPITAL (PTY) LIMITED
Applicant
And
M
SOHAG TRADING (PTY) LIMITED
Respondent
JUDGMENT
VAN
NIEUWENHUIZEN AJ
[1]
This is a matter involving
the applicant (“Inyanda”),”a property investment
holding company, exercising a
rei
vindicatio
as owner
against the respondent (“Sohag”) for the return of its
property which is at present occupied in the sense
that Sohag trades
from Shop 8, being part of a shopping mall, built on the immovable
property known as Portion 246 of Erf 534 Wadeville
Extension 2
Township (“the property”) and situated at 246 Dekema
Road, Wadeville, Ekurhuleni.
[2]
Inyanda only became owner
of the Property after it acquired same for R17.9 million at a public
auction on or about 20 July 2022
and took transfer of the property
during November 2022.
[3]
At the time Inyanda became
owner of the property, Shops 7, 8 and 9, situated in the
property, were let to an entity known as
Mmaitumeleng Trading
Enterprises (“Enterprises”), which was paying R670 695.00
a month in rent for its tenancy
of Shops 7, 8 and 9.
[4]
Unbeknown
to Inyanda, Enterprises sublet Shop 8 to Sohag. It is common
cause that Enterprises’ lease was terminated
shortly after
Inyanda took transfer of the property and Enterprises has since
vacated the property on 3 February 2023.
[1]
[5]
It is also common cause
that, at all times after Inyanda became owner of the property, Sohag
was in possession and occupation of
Shop 8, which is a portion of the
property.
[6]
Notwithstanding demand and
numerous requests that Sohag vacate the property on or before 25
August 2023, it has failed to do so
and also refused to provide an
undertaking to do so.
[7]
Inyanda contends that it
entered into a new lease with a new tenant (“Plus DC”) in
respect of Shops 7 & 8 and, given
that Sohag was a sub-tenant and
has no rights vis-à-vis Inyanda, it should vacate Shop 8.
Sohag refuses to vacate the premises
contending is has an oral
five-year lease.
[8]
Part of the urgency in
this matter is the fact that the applicant is unable to give
possession to Plus DC, and a risk exists that
it may lose a contract
valued some R3 065 963,91 (excluding the contributions to
operating costs, municipal rates and
water and effluent charges over
the next 60 months). Hence, it approached this court on abridged time
periods as a matter of urgency.
[9]
I am satisfied that,
although the matter is of a commercial nature, that it is urgent and
was worthy of the Urgent Court’s
attention and should be
adjudicated as soon as possible. If this matter is not treated
as an urgent matter, the first opportunity
it may have become
enrolled and heard is somewhere in the final term of 2024.
[10]
I have requested both
counsel for Inyanda and Sohag, after argument on urgency and merits,
to provide me with a joint chronology
given that I had to hear the
matter amidst a crowded urgent roll and to simplify my task in
analysing the facts. For reasons
best known to counsel, they
were unable to provide me with a joint chronology and I was
ultimately provided with two separate chronologies.
It is
lamentable that counsel who are no longer baby juniors are unable to
do a joint chronology.
[11]
It is also common cause
that Inyanda engaged extensively with Sohag in relation to its
continued occupation of Shop 8. It
is contended by Inyanda that
most of the engagements were in the form of without prejudice
correspondence, which is inadmissible
as evidence before the court.
[12]
Inyanda further contends
that, in the course of these engagements, it offered Sohag another
shop, i.e., Shop 11, at the property
and invited Sohag to enter into
a written lease with Inyanda in respect of Shop 11. It is
common cause that no lease was
ultimately entered into between
Inyanda and Sohag in respect of Shop 11.
[13]
It is further common cause
that, by no later than 10 July 2023, Sohag became aware of the fact
that Inyanda had concluded a lease
with a new tenant in respect of
Shop 8 and urgently required vacant possession thereof to prepare it
for the new tenant’s
occupation. This was recorded in a
letter sent by Inyanda’s attorneys to Sohag’s attorneys
on 10 July 2023 in
the following terms:
“
3.
You and your client are aware that:
3.1
our client has concluded the lease with the tenant and is urgently
required to prepare shop 8 for the new tenant’s occupation;
3.2
the new tenant was scheduled to take occupation on 1 July; and
3.3
as a result of your client’s refusal to vacate shop 8 our
client was forced to negotiate an extension by which it is required
to provide vacant occupation of shop 8 to the new tenant.
4.
Your client’s conduct is now causing our client damages as a
result of the delay in providing vacant possession of
shop 8 to the
new tenant, your client is not paying for its use of shop 8 and as a
result of shop 11, into which your client was
required to move.
Our client reserves its rights to address these losses in due
course.
”
[14]
This letter is annexed as
“
FA3
”
to Inyanda’s founding affidavit.
[15]
Paragraph 17 of this
letter further concludes with the following:
“
17.
In the circumstances your client has until 14 July 2023 to either
accept our client’s final offer or vacate
shop 8 by 25 August
2023.
”
[16]
It is common cause that
Sohag never took up occupation of Shop 11 and its version of events
will soon emerge from the further details.
[17]
The lease agreement with
the new tenant provides that Shops 7 and 8 are let to Plus DC (Pty)
Limited (“Plus DC”) for
purposes of a liquor store for a
period of 60 months from 1 July 2023, which rent escalates at an
annual rate of 6%. The
rent payable by Plus DC for Shop 7 is
R19 182.38 and R26 140.20 for Shop 8.
[18]
Plus DC will pay a
contribution towards rates and taxes for Shop 7 in the amount of
R1 592.77 and R2 169.56 in respect
of Shop 8 and a
contribution towards operating costs in the amount of R3 729.05
for Shops 7 and R5 081.65 in respect
of Shop 8.
[19]
Plus DC will pay for
electricity as metered and water and effluent as metered. A
copy of the lease is annexed to the papers
as annexure “
FA4”
.
[20]
It is of some importance
to look at this lease. In this court’s experience, leases
in shopping centres are usually of
a detailed nature and are usually
replete with terms and conditions and typically contain provisions
for what happens in respect
of late payments, how payments should be
appropriated, agent’s commission, use of the premises,
subletting and cession, general
rights and obligations of the tenant,
insurance of the premises, insurance of movables on the premises,
suretyships, the landlord’s
rights and obligations, exclusion
of liability, damage or destruction of premises, limited damage or
destruction of premises, breach
of the agreement, cancellation,
parking,
domicilia
and notices, the need for fire extinguishers and various other
general terms, including terms regarding costs, the offer to contract
and what happens in the event of change of ownership or when a need
for renovation arises. Such leases are invariably reduced to
writing.
[21]
Sohag met Inyanda’s
application to justify its possession by way of an assertion that an
oral lease was concluded between
one Ronell van Deventer (“Ms
Van Deventer”), an employee of Mafadi, the letting agent,
acting on behalf of Inyanda.
[22]
It is clear that Sohag
asserts that it is entitled to be in possession of Shop 8 and will
remain in possession thereof on the basis
that, according to Mr
Mohamod Ikramul Hoque, Sohag has had occupation of Shop 8 from 18
March 2019 as sub-lessee to Enterprise
and contends that Mafadi (the
letting agent) had consented and agreed to Shop 8 being sublet to
Sohag.
[23]
Sohag also contends that,
in terms of the oral arrangement between itself and Mafadi, the
monthly rent payable by Sohag for Shop
8 would be in the amount of
R31 200.00 and would be inclusive of the water, electricity and
effluent charges.
[24]
Sohag contends that the
aforesaid took place prior to the expiry of the sublease period and
during or about 15 February 2023 when
a meeting took place with
Ms Van Deventer of Mafadi. It also contends that it was
confirmed that Sohag could continue
to occupy Shop 8 for a further
period of five years (presumably while the original sub-lease runs
out), but that the rental would
then become R38 019.00,
escalating at 7% per annum as from 1 March 2024.
[25]
It is further contended
that Sohag had to pay a deposit of R33 060.00 over a period of 2
months and, in support hereof, Sohag
attaches a tax invoice and
statement from Mafadi marked “MIH2” from which it is
clear that half of the deposit amount
was indeed raised as a debit
against Sohag in the Invoice for March 2023.
[26]
Upon receipt of the
invoice, Sohag discovered that Mafadi had levied it charges for
electricity, water, and effluent and thereupon
it contacted
Ms Van Deventer and reminded her that the respondent was
not liable for electricity, water, and effluent
as it was included in
the monthly rental of R31 200.00. It is alleged that
Ms Van Deventer concurred herewith
and advised that same
should be ignored.
[27]
It
is contended by Sohag that, at this stage, Ms Van Deventer
informed Sohag that the ownership of the centre had changed
from
March 2023 and that Sohag would, in addition to the monthly rental of
R38 019.00, have to pay a proportionate share of
the water,
effluent and pay for electricity consumed as per the reading of the
sub-meter in Shop 8. Sohag contends that it
agreed to this
change and asserts that Ms Van Deventer undertook to reduce
the agreement to writing.
[2]
[28]
Sohag
also states that it paid the monthly rental until 31 August 2023 and
the water and effluent charges as until 31 July 2023.
The water
and effluent charges were paid in arrears.
[3]
[29]
Sohag disputed the
exorbitant and excessive amount levied by Mafadi for the electricity
consumed on the basis that same was not
calculated in accordance with
the readings of the sub-meter in Shop 8. It also attached, as
“MIH3”, copies of
the sub-meter readings as on 10 March
2023, 14 April 2023, and 25 May 2023. These readings differ
drastically from the
meter readings as rendered by Mafadi on behalf
of Inyanda.
[30]
It is further asserted
that Sohag repeatedly enquired from Ms Van Deventer as to
when the written lease would be forwarded
for signature. Sohag
alleges that it was informed that the lease was being prepared and
that it would be send to Sohag in
due course. There is, however, no
documentary evidence of the demands for a written agreement.
[31]
Matters took a different
course not that long thereafter.
[32]
On 24 April 2023, Sohag
received a notice from Mafadi that it should vacate Shop 8 by 31 May
2023, a copy of which is annexed as
“MIH4”. In this
notice, Inyanda purportedly exercised its right to cancel “the
agreement of lease”
concluded with Sohag due to renovations to
the property. It will emerge lower down what the content of the lease
was that Inyanda
referred to. The period of notice already
suggests that the lease referred to was of a monthly nature.
[33]
After consultation with
its attorney of record, a letter was sent to Mafadi, which was
annexed as “MIH5”. In this
letter, it asserts that
Inyanda had no right to cancel the agreement of lease given that:
33.1
there is an oral agreement
of lease between the parties for a period of five years;
33.2
Sohag seriously doubts
that Inyanda intends effecting renovations to the property as it is
the only tenant to have received a notice
to vacate;
33.3
in the event that Inyanda
intended to renovate the property, it offered to relocate to other
empty premises within the mall until
such time as the renovations
were complete, whereafter it intended to return to Shop 8.
[34]
It made it clear that it
would not be vacating the property by 31 May 2023. It also stated
that, should Inyanda interfere with any
of its rights, including
disconnecting the electricity at the premises or locking the premises
on 31 May 2023 or at any time prior
thereto or thereafter, Sohag
would approach the court urgently for relief.
[35]
I
should point out that Inyanda does not deal in detail with the
defences of Sohag in its founding affidavit, nor do I believe it
was
necessary to do so, given that it was relying on the
rei
vindicatio
.
[4]
It would be entitled to deal therewith in its replying affidavit.
[36]
As was to be expected,
Inyanda then, in the replying affidavit, dealt in detail with the
defence raised. Inyanda makes it
clear, in the replying
affidavit, that the lease with Enterprises was terminated on or about
27 January 2023
by mutual consent between the parties. At the time, Inyanda was
represented by Mafadi, and specifically by Ms Van Deventer
and one Siphokazi Matyalana (“Ms Matyalana”).
[37]
On
the same day, Ms Van Deventer informed Sohag that Inyanda
had purchased the property, and that Enterprises would have
to vacate
the premises.
[5]
Ms Van Deventer did inform Sohag that it should stop paying
rent to Enterprises and she then caused the correct
banking details
(presumably Mafadi’s) to be shared with Sohag via WhatsApp by
Ms Matyalana. A copy of this Whatsapp message
is attached as annexure
“RA1A” and receipt thereof is acknowledged.
[38]
In paragraph 7.4 of the
replying affidavit the deponent to Inyanda’s replying affidavit
specifically denies that there was
any discussion regarding a lease
or lease terms.
[39]
Enterprises vacated the
shops it had let from Inyanda on 3 February 2023. On 31 January
2023, one Sahadat Hossain wrote, on
behalf of Sohag, to Mafadi,
recording:
“
Dear
Sir [sic]
“
My
name is Abdur rahaman [sic], Dekama Mall S. I want shop lease.
”
[40]
A copy of this is annexed
to the replying affidavit as “
RA1
”.
[41]
Sohag, in paragraph 3.7 of
its answering affidavit, specifically alleges that, prior to the
expiry of the sublease and during and
about
15 February
2023
, it had met with
Ronell (presumably Ronell van Deventer) of Mafadi when it was
confirmed that the respondent could continue to
occupy Shop 8 for a
further period of five years but at a rental agreed in the amount of
R38 019.00, escalating at 7% per
annum as from 1 March 2024.
[42]
On an analysis of the
affidavit, it appears that this rental is extrapolated from the
agreement between Sohag and Enterprises, which
it is alleged that
Inyanda was aware of and what Sohag is contending for is at least the
same terms it had with Enterprises, inasmuch
as that agreement did
not include the duty to pay water, electricity and effluent charges
and escalation would only take place
from 1 March 2024.
[43]
In my view, the point made
by Inyanda in the replying affidavit, that there was already a
request for a lease on 31 January 2023
and hence no need for the
discussion on 15 February 2023, is of great importance.
[44]
Inyanda makes it clear, in
its replying affidavit, that, pursuant to the email, annexure “
RA1
”,
a vetting process was undertaken in respect of Sohag’s
creditworthiness and that no lease agreement would have been
concluded by Inyanda with Sohag until its creditworthiness had been
investigated. It is contended that this is a standard
procedure
in the commercial letting industry.
[45]
To
this end, Sohag supplied Inyanda with a series of documents, together
with its request for a lease, same being annexed as annexure “RA2”.
An analysis of annexure “RA2” demonstrates that it is an
email sent by one Siphokazi Matyalana (“Ms
Matyalana”)
(referred to with an email address as
[...]
).
This email is addressed to
[...]
and also to [...]and simply states “see attachments”. The
attachments which Ms Matyalana clearly had by 31 January
2023 include
a photocopy of a passport document of the Republic of Bangladesh in
the name of Rahman Abdur. Further attached
thereto is a
certificate issued by CIPC attesting to the incorporation of M Sohag
Trading (Pty) Limited as a company in business.
This document
is dated 9 May 2014 by CIPC.
[46]
A further document also
annexed to the replying affidavit certifies that Mr Abdur Rahman is a
director of M Sohag Trading (Pty)
Limited. This also includes
certification from CIPC that M Sohag Trading (Pty) Limited has been
registered as a company with
effect 09/05/2014. Further annexed
thereto are three bank statement of M Sohag Trading (Pty) Limited
issued by Nedbank reflecting
the fact that Sohag conducts a current
account with Nedbank and the statement periods are
29/11/2022–29/12/2022, 29/10/2022–29/112022,
and
29/09/22–29/10/2022.
[47]
Given that there was a
proper application made by Sohag via the email of Mr Sohadat Hossain
on 31 January 2023 the notion that an
oral agreement for a 5-year
lease was agreed on as between Sohag and Inyanda with Ms van Deventer
appears to me unlikely.
If it was concluded on 15 February at
Sohag’s request one would have expected the vetting period to
only commence at that
point as opposed to the earlier communications
and vetting.
[48]
In its answering
affidavit, Sohag has, however, indicated that, in line with its
contentions regarding payment of a deposit a debit
for part of a
deposit was raised by way of the March 2023 invoice issued through
the offices of Mafadi. The invoice appears
as an attachment to
the answering affidavit and include a debit for a deposit of
R16 530.00 (50% of the monthly rental) and
rental of
R33 060.00. It is virtually illegible and annexed marked
Annexure “
MIH2
”.
As appears below Inyanda annexed a more legible version of this
invoice as part of Annexure “
RA7”.
[49]
There is also a reference
on the invoice of March 2023 to lease fees of R2 400.00 and
electricity charges of R41 582.27,
as well as water in the
amount of R1 235.10 and effluent in the amount of R425.23. This
invoice and the one issued for the
month of May 2023 appear as “
RA7
”
in Inyanda’s Replying Affidavit.
[50]
The
existence of this invoice is consistent with both Inyanda’s
version that a lease was requested on 31 January 2023 as per
Mr
Hossain’s email and Sohag’s version that there was a
discussion on 15 February 2023 and in itself may show an indication
of some sort of an agreement, albeit there’s no written
agreement.
[6]
[51]
I specifically focus on
the period between January and March, given the various parties’
contentions as to when any interactions
between Mafadi, acting on
behalf of Inyanda, took place with Sohag. In this context, this
invoice is of some significance,
although not conclusive.
[52]
Inyanda also annexes
another invoice for May 2023 as part of “
RA7
”
reflecting a carried over balance of R123 425.97 and, at the
same time, reflecting a write back of 50% of the lease
deposit of
R16 530.00 and the lease fees of R2 400.00. This invoice
raises a further debit of R562.31 as interest against
Sohag, leaving
a balance of R64 698.28 as same being due. This document
is equally important.
[53]
I say so for two reasons,
inasmuch as it reflects a balance due for the previous period, which
was carried over, in the amount of
R123 425.97.and inasmuch as
it suddenly, at the beginning of May 2023 writes back a fairly
important component appearing on
the March 2023 invoice, i.e., a
write back of the lease fees and the deposit. One may well ask
what led to this.
[54]
In argument, Sohag’s
counsel, Mr Coleman, sought to persuade me that there is only one
explanation for this, and this is the
fact that, in between March and
May, Inyanda, via the offices of Mafadi, entered into a more
lucrative agreement. That agreement,
it was contended, appears
as an attachment to the founding affidavit, annexure “
FA4
”,
and reflects a written agreement entered into between Inyanda and
Plus DC.
[55]
I should point out that
this agreement commences on 1 July 2023 and terminates on 30 June
2028 and specifies the rental of Shop
7 as R19 182.38 as well as
Shop 8 at R26 140.20. Altogether, given that it is a
rental package for Shops 7 and
8, it is a more lucrative agreement,
even if one assumes that the oral agreement entered into allowed for
a rental payment of some
R38 000.00 per month. In view of my
ultimate conclusion below I am of the view that Inyanda was entitled
to enter into this
new lease with Plus DC in respect of shops 7 and
8.
[56]
The date of this agreement
is 15 April 2023, reflecting same as being signed by Plus DC on
14 April 2023. I have not
been provided by any party with
any April 2023 invoice (if one was rendered to Sohag at all) but I
must assume this was not fully
paid given that a balance was brought
forward in May 2023. The argument by Mr Coleman is not
completely without substance
but overlooks the commercial
requirements of leases in shopping malls (the detail of which is
referred to in paragraph 20 above).
[57]
The replying affidavit
contends, in paragraph 7.9 to 7.11, that, pursuant to the request
made in annexure “
RA1
”,
a vetting process with regard Sohag’s creditworthiness was
undertaken and that no lease agreement would have been
concluded
until its creditworthiness had been vetted. This seems to me to be
consistent with commercial practice and my own experience
in dealing
with leases in shopping malls.
[58]
It further states that
this is the purpose why the documents referred to in “RA2”
were applied for.
[59]
Paragraph 7.11 of the
replying affidavit states that, in the interregnum Sohag occupied
Shop 8 in terms of, at best, a month-to-month
tenancy and that no
five-year lease agreement, as contended for by Sohag, was ever
concluded. This is to my mind more plausible
than the case put up by
Sohag. If I have to accept the version contended for by Sohag, the
5-year lease was already agreed on 15
February 2023 with no vetting
process involved at all.
[60]
After the cancellation
letter was sent (annexure “
MIH4
”
to the answering affidavit), Sohag responded thereto on 18 May 2023
challenging Inyanda’s right to cancel the lease
and claiming
the existence of an oral lease agreement with a duration of 5 years.
If indeed Mafadi’s Ms van Deventer had
accepted such terms on
the basis that it would draw up a written lease agreement one would
by now have expected a demand for such
lease papers to have been
delivered given that on Sohag’s version the arrangement dates
back to 15 February 2023.
[61]
The aforesaid letter
challenges the notion that shop 8 is required for renovation but in
same Sohag tenders to move to shop 11 pending
such renovations
whereafter it would return to shop 8.
[62]
Hereafter Inyanda’s
attorneys made very specific enquiries from Sohag, on 31 May 2023,
requesting the following:
“
5.
Without making any concessions or waiving any of its rights, our
client requests the following:
5.1
Who represented the parties when the alleged five-year oral lease was
concluded?
5.2
When was the alleged oral lease agreement concluded;
5.3
What were the terms of the alleged oral lease agreement;
5.4
Any contemporaneous correspondence evidencing the aforegoing.
5.5
Copies of the necessary permits and licences permitting your client
to conduct a supermarket business at the property.
”
[63]
All of this was requested
from Sohag to be delivered to Inyanda by 12 o’clock on
Friday, 2 June 2023. This demand
is annexed to the replying
affidavit and marked “
RA3
”.
[64]
No response was ever
received hereto notwithstanding the fact that Sohag should have been
in a position to answer this request without
difficulty. If indeed
the events of 15 February 2023 took place as contended by Sohag for
the first time on 18 May 2023 and in
its answering affidavit one
would have expected a detailed response to “
RA3
”.
It is only in the answering affidavit that the details regarding the
oral agreement of lease and who represented
whom, emerges.
[65]
It is noteworthy that
Inyanda’s attorneys contend that their letter of 31 May 2023
(“
RA3”
)
refers to the existence of a month-to-month lease (i.e that being the
lease they cancelled on 24 April 2023) whilst there is no
specific
mention thereof in “
RA3
”.
This emerges from paragraph 2 of “
RA4
”
when they attempt to explain why they posed the questions referred to
in paragraph 5 of “
RA3
”
Whilst there was no reference in “
RA3
”
to a month to month lease it stands to reason that until Sohag was
vetted and had signed a written lease agreement its status
would be
that of a month-to-month lessee.
[66]
“
RA4
”
continues with a denial of the existence of a 5-year oral lease
agreement and purports to accept Sohag’s offer to
move to
relocate to another shop and then purports to withdraw the “Notice”
which is defined in “
RA4
”
as the letter of 24 April 2023. This withdrawal was, however,
conditional on a 5-year lease being signed for the other
shop and the
letter alludes to same being sent in due course.
[67]
It is clear that nothing
came of the relocation. It would appear that Sohag thought it
would only be temporary and until shop
8 is renovated whereafter it
would move back to shop 8. The fact that Inyanda’s
condition was never fulfilled in that
a 5-year lease for a different
shop was signed ultimately left the notice standing and operative.
[68]
“
RA4
”
also refers to arrear rentals which would be addressed in due course.
[69]
Sohag’s affidavit
explains in a rather convoluted way that there was an inspection
in
loco
of shop 11 and
that it proposed that the dry-wall partitioning be removed, and the
shop front be widened. It states that Inyanda
was not prepared to
agree hereto and required a proportionate share of the operating
costs which Sohag in turn refused to pay as
it was not previously
charged and other tenants in the centre do not have to pay the same.
[70]
Sohag then contends that
it only became aware of Inyanda’s intention to let out shop 8
to another tenant on 10 July 2023.
[71]
Inyanda’s attorneys’
letter of 23 June 2023 specifically suggests that the refusal to
respond to the questions referred
to is because no five-year oral
lease ever came into existence.
[72]
The replying affidavit
also makes the point, in paragraph 7.15, that, at the time the
September 2023 invoice was raised by Inyanda’s
managing agent,
which is annexed as “
RA5
”,
Sohag had failed to comply with its obligations under the lease
agreement asserted by it. The outstanding amount
at that point
in arrears in respect of the month-to-month lease (assuming any merit
exists in respect of such version) amounted
to R217 425.78.
[73]
This, to my mind, is the
final nail in Sohag’s coffin. Not only is the notion that
a five-year lease agreement was concluded
without more specific
terms, other than the rental and escalation, unbusinesslike and
improbable and is finally given the lie to
by the fact that the
amount referred to above was outstanding by 1 September 2023. If it
really believed that it had a lease it
should have annexed proof of
payment of the monthly rental including such amount as it contended
was due for electricity.
[74]
It should be said in this
regard that, in motion proceedings, if the respondent wants to put up
a
bona fide
defence, such defence should meet the tests laid down in the
following cases:
74.1
I
refer to
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
1984
(3) SA 623 (A)
[7]
where it was
held that:
“
The appellant
nevertheless sought a final interdict, together with ancillary
relief, on the papers and without resort to oral
evidence. In such a
case the general rule was stated by VAN WYK J (with whom DE VILLIERS
JP and ROSENOW J concurred) in
Stellenbosch
Farmers' Winery Ltd v Stellenvale Winery (Pty) Ltd
1957
(4) SA 234 (C)
at 235E - G, to be:
"...
where there is a dispute as to the facts a final interdict should
only be granted in notice of motion proceedings if the
facts as
stated by the respondents together with the admitted facts in the
applicant's affidavits justify such an order... Where
it is clear
that facts, though not formally admitted, cannot be denied, they must
be regarded as admitted."
This
rule has been referred to several times by this Court (see
Burnkloof
Caterers (Pty) Ltd v Horseshoe Caterers (Green Point) (Pty)
Ltd
1976
(2) SA 930 (A)
at 938A - B;
Tamarillo
(Pty) Ltd v B N Aitkin (Pty) Ltd
1982
(1) SA 398
(A) at 430 - 1;
Associated
South African Bakeries (Pty) Ltd v Oryx & Vereinigte Bäckereien
(Pty) Ltd en Andere
1982
(3) SA 893
(A) at 923G - 924D).
It
seems to me, however, that this formulation of the general rule,
and particularly the second sentence thereof, requires
some
clarification and, perhaps, qualification. It is correct that, where
in proceedings on notice of motion disputes of fact have
arisen on
the affidavits, a final order, whether it be an interdict or some
other form of relief, may be granted if those facts
averred in the
applicant's affidavits which have been admitted by the respondent,
together with the facts alleged by the respondent,
justify such
an order. The power of the Court to give such final relief on the
papers before it is, however, not confined to such
a situation. In
certain instances the denial by respondent of a fact alleged by the
applicant may not be such as to raise a real,
genuine or
bona
fide
dispute
of fact (see in this regard
Room
Hire Co (Pty) Ltd v Jeppe Street Mansions (Pty) Ltd
1949
(3) SA 1155
(T) at 1163 - 5;
Da
Mata v Otto NO
1972
(3) SA 858
(A) at 882D - H). If in such a case the respondent has
not availed himself of his right to apply for the deponents
concerned
to be called for cross-examination under Rule 6 (5)
(g)
of
the Uniform Rules of Court (
cf
Petersen v Cuthbert & Co Ltd
1945
AD 420
at 428;
Room
Hire
case
supra
at
1164) and the Court is satisfied as to the inherent credibility of
the applicant's factual averment, it may proceed on
the basis of the
correctness thereof and include this fact among those upon which
it determines whether the applicant is entitled
to the final relief
which he seeks (see eg
Rikhoto
v East Rand Administration Board and Another
1983
(4) SA 278
(W) at 283E - H). Moreover, there may be
exceptions to this general rule, as, for example, where the
allegations or denials of
the respondent are so far-fetched or
clearly untenable that the Court is justified in rejecting them
merely on the papers
(see the remarks of BOTHA AJA in the
Associated
South African Bakeries
case,
supra
at
924A).” (my emphases)
74.2
More
recently, the applicable test was formulated by Heher JA, in
Wightman
t/a JW Construction v Headfour (Pty) Ltd and Another
2008
(3) SA 371 (SCA)
[8]
as follows:
“
[13]
A real, genuine and bona fide dispute of fact can exist only where
the court is satisfied that the party who purports to raise
the
dispute has in his affidavit seriously and unambiguously
addressed the fact said to be disputed. There will of course
be
instances where a bare denial meets the requirement because there is
no other way open to the disputing party and nothing more
can
therefore be expected of him. But even that may not be sufficient if
the fact averred lies purely within the knowledge of the
averring
party and no basis is laid for disputing the veracity or accuracy of
the averment. When the facts averred are such
that the disputing
party must necessarily possess knowledge of them and be able to
provide an answer (or countervailing evidence)
if they be not true or
accurate but, instead of doing so, rests his case on a bare or
ambiguous denial the court will generally
have difficulty in finding
that the test is satisfied. I say 'generally' because factual
averments seldom stand apart from
a broader matrix of circumstances
all of which needs to be borne in mind when arriving at a decision. A
litigant may not necessarily
recognise or understand the nuances of a
bare or general denial as against a real attempt to grapple with all
relevant factual
allegations made by the other party. But when he
signs the answering affidavit, he commits himself to its contents,
inadequate
as they may be, and will only in exceptional circumstances
be permitted to disavow them. There is thus a serious duty
imposed
upon a legal adviser who settles an answering affidavit to
ascertain and engage with facts which his client disputes and to
reflect
such disputes fully and accurately in the answering
affidavit. If that does not happen it should come as no surprise that
the court
takes a robust view of the matter.”
(my
emphases)
[75]
If indeed Sohag thought it
had a five-year lease, notwithstanding the dispute, it should have
made payment to Mafadi, alternatively,
to Inyanda. As matters
stand, there is no indication that such payment was made in full,
even allowing for the dispute regarding
the amounts due for
electricity.
[76]
In the circumstances, and
without any further reference to the subsequent correspondence which
takes the matter no further, I am
of the view that Sohag’s
defence of an oral five-year lease does not meet the test required in
motion proceedings i.e., that
of a
bona
fide
dispute.
[77]
In the premises, I am left
with no other choice as to reject Sohag’s version on paper.
I am fully aware of the fact
that, in so doing, I am taking a robust
approach. I am of the view that I am entitled to do so.
[78]
Inyanda sought an attorney
and client costs order against Sohag. I am of the view that no
basis for same exists.
[79]
On a conspectus of all the
facts, I am of the view that Sohag’s defence can be rejected
for the reasons mentioned. Hence,
the following order is made:
79.1
The matter is declared
urgent in terms of Rule 6(12) of the Rules of the above Honourable
Court;
79.2
The respondent is ejected
from Shop 8 situated at Dekema Mall, 248 Dekema Road, Wadeville,
Ekurhuleni;
79.3
The respondent is to pay
the costs of the application on the party and party scale.
VAN
NIEUWENHUIZEN AJ
ACTING
JUDGE OF THE HIGH COURT
HEARD:
14
SEPTEMBER 2023
JUDGMENT
DELIVERY DATE
:
18 OCTOBER 2023
Representation
for applicant
Counsel:
Adv.
C van der Merwe
Instructed
by:
Edward
Nathan Sonnenbergs Inc
per
Dalene Moodley
Representation
for respondent
Counsel:
Adv.
E. Coleman
Instructed
by:
ZAF
Khan Attorneys
[1]
See
Replying Affidavit p104 paragraph 7.5.
[2]
See
Answering Affidavit paragraph 3.9.
[3]
See
Answering Affidavit paragraph 3.10.
[4]
See
Harms,
Amlers
on Pleadings,
9
th
Edition p312 read with p372.
[5]
That
communication also had the effect that Sohag’s sub-lease was
terminated. See
Rosebank
Mall
(Pty)
Ltd and Another v Cradock Heights (Pty) Ltd
2004
(2) SA 353
(W) par 34 and further.
[6]
See
Spes
Bona Bank v Portals Water Treatment
1981
(1) SA 618
(W) on p 632C where Nestadt J (as he then was) held that:
“
It
seems to me that an
invoice
could,
depending upon the circumstances, be: (i) a notification that the
goods therein mentioned had been sent or were being
sent to the
addressee thereof or some other
destination;
(ii) a claim for payment, usually,
though
not necessarily,
based on an underlying, already concluded contract of purchase and
sale between the parties; (iii) an offer to sell. It is only
in the
event of the
invoice
being
construed as an offer to sell that an agreement of purchase and
sale, as contended for by the plaintiff, could have
arisen.”(my
underlining)”
## The
judgment was confirmed on Appeal and is reported asSpes
Bona Bank Ltd v Portals Water Treatment South Africa (Pty) Ltd1983
(1) SA 978 (A) and the following was said about the meaning of an
invoice:
The
judgment was confirmed on Appeal and is reported as
Spes
Bona Bank Ltd v Portals Water Treatment South Africa (Pty) Ltd
1983
(1) SA 978 (A) and the following was said about the meaning of an
invoice:
“
Accordingly
I do not propose to comment on the three possibilities postulated by
NESTADT J (at 632C - D of the reported judgment),
save to observe in
passing that other possibilities come readily to mind (eg that an
invoice may constitute notification of the
acceptance of a prior
offer to buy, or that it may be no more than a mere statement of the
price that is owing or will become
payable in respect of goods sold
and delivered or still to be delivered). For the purposes of my
judgment it is sufficient to
find, as I do, that the invoice by
itself clearly did not constitute an offer to sell” –
See p983B-D.
[7]
Pp
634E – 635A
[8]
See pp 375F- 376 A
sino noindex
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