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South Africa Judgment

South Gauteng High Court, Johannesburg

266 Bree Street Johannesburg (Pty) Ltd and Others v TUHF Limited (39800/2020) [2023] ZAGPJHC 94 (1 February 2023)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The court found that the grounds for appeal merely repeated arguments already considered and decided in the original judgment. The subsequent placement of the principal debtor in business rescue and the agreement between the business rescue practitioner and TUHF to hold rental income in escrow pending the main action rendered the appeal academic. There was no reasonable prospect that the appeal would succeed, nor was there a compelling reason in the interests of justice to grant leave to appeal. Accordingly, the application for leave to appeal was dismissed.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal the judgment handed down on 9 September 2022 is dismissed with costs.

02

Material facts

Parties

266 Bree Street Johannesburg (Pty) Ltd

Applicant Counsel: L Hollander

10 Fife Avenue Berea (Pty) Limited

Applicant Counsel: L Hollander

28 Esselen Street Hillbrow CC

Applicant Counsel: L Hollander

68 Wolmarans Street Johannesburg (Pty)

Applicant Counsel: L Hollander

Hillbrow Consolidated Investment CC

Applicant Counsel: L Hollander

Mark Morris Farber

Applicant Counsel: L Hollander

TUHF Limited

Respondent Counsel: AC Botha SC

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal After Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants contend that the judgment handed down on 9 September 2022 should be reconsidered and that leave to appeal should be granted. They raise grounds that essentially repeat their previous case, seeking to challenge the enforcement of the cession of rental agreements and TUHF's authority to collect rental from tenants.
Respondent
The respondent argues that the grounds for appeal merely re-plead the case and do not raise new issues. TUHF submits that the judgment has been overtaken by events, as the principal debtor is now in business rescue and an agreement has been reached for rental collection to be held in escrow pending the main action. Therefore, the appeal lacks prospects of success and is academic.

05

Court’s reasoning

  1. 01

    Section 17(1)(a) of the Superior Courts Act No: 10 of 2013

    Leave to appeal may only be granted if the judge is of the opinion that the appeal would have a reasonable prospect of success or there is a compelling reason for the appeal to be heard.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the grounds for appeal merely repeated arguments already considered and decided in the original judgment. The subsequent placement of the principal debtor in business rescue and the agreement between the business rescue practitioner and TUHF to hold rental income in escrow pending the main action rendered the appeal academic. There was no reasonable prospect that the appeal would succeed, nor was there a compelling reason in the interests of justice to grant leave to appeal. Accordingly, the application for leave to appeal was dismissed.

Obiter and limits

  • The agreement reached between the business rescue practitioner and TUHF regarding rental collection has overtaken the judgment and rendered the appeal academic.
  • The determination of the main application remains pending and will be addressed in the near future.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal the judgment handed down on 9 September 2022 is dismissed with costs.

Source and reliance status

South Gauteng High Court, Johannesburg

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Judgment reading view

Judgment text

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Source document

South Gauteng High Court, Johannesburg

Judgment

[2023] ZAGPJHC 94

IN

THE HIGH COURT OF SOUTH AFRICA

(GAUTENG DIVISION, JOHANNESBURG)

REPUBLIC

OF SOUTH AFRICA

CASE NO: 39800/2020

(1) REPORTABLE: NO

(2) OF INTEREST TO OTHER JUDGES: NO

(3) REVISED: NO

DATE: 1

FEBRUARY 2023

In the matter between:

266 BREE STREET JOHANNESBURG (PTY) LTD First Applicant

10 FIFE AVENUE BEREA (PTY) LIMITED Second

Applicant

28 ESSELEN STREET HILLBROW CC Third

Applicant

68 WOLMARANS STREET JOHANNESBURG (PTY) Fourth Applicant

HILLBROW CONSOLIDATED INVESTMENT CC Fifth Applicant

MARK MORRIS FARBER Sixth

Applicant

And

TUHF

LIMITED

Respondent

Delivered: By transmission to the parties via email and uploading onto Case Lines

the Judgment is deemed to be delivered. The date for hand-down is deemed to be 1

February 2023.

JUDGMENT

(Leave to Appeal Application)

SENYATSI J:

[1] This is an application to appeal the judgment handed down on 9 September 2022 in terms of which an enforcement of the cession of the rental agreement of tenants occupying an immovable property known as Metro Centre was given effect to and TUHF was authorised to collect the rental from the tenants.

[2] The grounds raised for the appeal, amount to pleading the case again and for that reason, will not be repeated in this judgment.

[3] The issue for determination is whether or not the appeal would have a prospect of success or whether it is in the interest of justice that the appeal should be heard.

[4] Section 17(1)(a) of the Superior Courts Act No: 10 of 2013 provides as follows:

“17(1) Leave to appeal may only be given where the judge or judges concerned are of the opinion that –

(a)(i) the appeal would have a reasonable prospect of success;

(ii) there is a compelling reason why the appeal should be heard including conflicting judgments on the matter under consideration.”

[5] In fact the judgment was somewhat, overtaken by events. That is so given that the Principal Debtor was placed in business rescue and the business rescue and the business rescue practitioner and TUHF agreed that the rental to be collected would be put in the interest bearing account of an independent escrow pending the finalisation of the main action. That said, the issue then becomes what value does the leave to appeal add to this current litigation on which judgment handed down is being appealed against.

[6] Having regard to the history of this matter, the pending litigation on the main action and the agreement reached on rental collection between TUHF and the business rescue practitioner, I am of the view that there is no reasonable prospect that the appeal would succeed on the judgment.

[7] In so far as the other applicants are concerned leave to appeal is therefore academic as the main application need to be determined in the near future.

[8] Accordingly, the application for leave to appeal must fail.

ORDER

[9] The application for leave to appeal the judgment handed down on 9 September 2022 is dismissed with costs

ML

SENYATSI

JUDGE

OF THE HIGH COURT OF SOUTH AFRICA

GAUTENG DIVISION, JOHANNESBURG

DATE LEAVE TO APPEAL JUDGMENT RESERVED: 28 October 2022

DATE JUDGMENT DELIVERED:

1 February 2023

APPEARANCES

Counsel for the Respondent: Adv AC Botha SC

Adv E Eksteen

Instructed by: Schindlers Attorneys

Counsel for the First to Sixth

Applicants: Adv

L Hollander

Instructed by: Swartz

Weil Van De Merwe

Greenberg Inc

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Superior Courts Act No: 10 of 2013

Legislation

Legislation referenced in the available case record.

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