Ascension Properties Limited v Sebola (2015/05678) [2016] ZAGPJHC 190 (8 July 2016)
- Citation
- [2016] ZAGPJHC 190
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- South Gauteng High Court, Johannesburg
- Panel
- C G Lamont
- Case number
- 2015/05678
More details
- Court
- South Gauteng High Court, Johannesburg
- Panel
- C G Lamont
- Case number
- 2015/05678
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant was the registered owner of the premises and that the respondent was in arrears with rental payments. The respondent did not dispute the arrears or the applicant's entitlement to cancel the lease. The dispute resolution clause did not preclude the court's jurisdiction in the absence of a genuine dispute. The lease was properly cancelled after written notice, and the applicant was entitled to an ejectment order. The claim for payment of monies was abandoned during the hearing, and only the ejectment order was sought and granted.
Court disposition
The application for ejectment was granted; the respondent is ordered to vacate the premises.
Orders
- The respondent is ordered to vacate the leased premises as per paragraphs 1, 2, and 5 of the notice of motion.
02
Material facts
Parties
Ascension Properties Limited
ApplicantSebola Mashilo Shadrak
RespondentAmounts and remedies
- Arrear Rental Payment Made Late: ZAR 12,000
03
Procedural history
Posture
Civil Application / Final Judgment
04
Questions and positions
Legal issues
- 01
Whether the applicant is entitled to eject the respondent from the leased premises due to arrear rental payments.
- 02
Whether the dispute resolution clause in the lease agreement precludes the court from granting ejectment.
- 03
Whether the lease agreement was properly cancelled in accordance with its terms.
Party arguments
- Applicant
- The applicant argued that the respondent persistently failed to pay monthly rentals as required by the lease agreement, resulting in arrears. The applicant issued letters of demand and, upon continued default, cancelled the lease agreement. The applicant contended that the dispute resolution clause did not oust the court's jurisdiction, especially where no genuine dispute existed regarding the arrears or cancellation.
- Respondent
- The respondent, representing himself, relied solely on the dispute resolution clause of the lease agreement, contending that any disagreement or breach should be referred to a referee for resolution. He did not dispute the existence of arrears or the applicant's entitlement to cancel the lease.
05
Court’s reasoning
Legal principles
- 01
Clause 33 of the lease agreement
A dispute resolution clause that provides for referral to a referee does not remove the jurisdiction of the court where there is no genuine dispute or disagreement.
- 02
Standard Credit Corporation v Bester and Others 1987 (1) SA 812 (W)
Where a party is in arrears and the lease is properly cancelled after written notice, the lessor is entitled to seek ejectment through the court.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant was the registered owner of the premises and that the respondent was in arrears with rental payments. The respondent did not dispute the arrears or the applicant's entitlement to cancel the lease. The dispute resolution clause did not preclude the court's jurisdiction in the absence of a genuine dispute. The lease was properly cancelled after written notice, and the applicant was entitled to an ejectment order. The claim for payment of monies was abandoned during the hearing, and only the ejectment order was sought and granted.
Obiter and limits
- The intention of the dispute resolution clause is to resolve disputes quickly and cost-effectively, but it does not oust the court's jurisdiction where no dispute exists.
- The respondent's reliance on the dispute resolution clause was misplaced as there was no factual dispute regarding the arrears or cancellation.
Court disposition
The application for ejectment was granted; the respondent is ordered to vacate the premises.
- The respondent is ordered to vacate the leased premises as per paragraphs 1, 2, and 5 of the notice of motion.
Source and reliance status
South Gauteng High Court, Johannesburg
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
South Gauteng High Court, Johannesburg
Judgment
REPUBLIC
OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH AFRICA,
GAUTENG LOCAL DIVISION, JOHANNESBURG
CASE NO: 2015/05678
DATE: 8 JULY 2016
In the matter between:
ASCENSION
PROPERTIES LIMITED................................................................................Applicant
And
SEBOLA
MASHILO SHADRAK........................................................................................Respondent
J U D G M E N T
LAMONT, J:
[1] The applicant seeks the ejectment of the first respondent from certain leased premises and seeks payment of monies due by first and second respondents to it.
[2] During the hearing the applicant abandoned the claim for payment of monies.
[3] It is common cause that the applicant is the registered owner of certain leased premises occupied by the first respondent. The first respondent was obliged to pay rental to the applicant for the leased premises which included certain parking. All amounts were payable by the first respondent to the applicant in terms of the lease agreement monthly in advance on or before the 1st business day of each calendar month without deduction, or set-off failing which the first respondent was to pay interest upon the
outstanding amounts at a rate equal to 2% above the prime rate.
[4] The applicant’s evidence was that the first respondent had persistently failed to pay the monthly rentals due to it. The respondents initially alleged in a bare denial that monies were not due. Subsequently in paragraph 28.1 it is apparent that there were arrear rentals, that an amount was paid late (on 26th January 2015 (R12 000.00)) and that the respondents alleged that this amount was not taken into account in the calculation of the claimed amount.
[5] On this basis there were arrear rentals at least equal to the R12 000.00. In addition there were monies due in respect of legal costs.
[6] At the hearing the first respondent who represented himself relied on only one issue. This was the provision of clause 33 of the lease which provides:
“33. DISPUTE RESOLUTION
33.1 Should any dispute or disagreement arise between the parties relating to:
33.1.1 any matter in respect of which provision is made in terms of this agreement for such dispute to be determined by a referee;
33.1.2 the breach or interpretation or cancellation of this agreement; or
33.1.3 any matter or circumstance arising out of or in connection with this agreement or its termination or cancellation, such dispute or disagreement shall be resolved by a referee in accordance with this clause, it being the intention of the parties that any dispute or disagreement shall be resolved as amicably, quickly and in the most cost-effective manner possible in the circumstances.”
[7] The clause does not provide for a removal of the jurisdiction of any court to hear the matter it merely provides their disputes which can be quickly and cost-effectively resolved be referred to a referee. It also does not remove jurisdiction from the court where there is no dispute or disagreement.
[8] There is no dispute that the first respondent is in arrears. The applicant sent the first respondent a letter of demand which was served in July 2014. The applicant later sent the first respondent a second demand. Notwithstanding the demands and the demand made in the application itself the first respondent remained in default. There was no dispute by the first respondent of the default or the entitlement of the applicant pursuant to the written notice to cancel the contract. This being so there was nothing to refer to a referee. The applicant was entitled to approach the court for the ejectment order. See also Standard Credit Corporation v Bester and Others 1987 (1) SA 812 (W).
[9] In the premises it was common cause that the lease agreement was concluded, that it was properly cancelled due to the first respondent being in arrears and hence that the first respondent should be ejected.
[10] In the circumstances I grant an order in terms of paragraphs 1, 2 and 5 of the notice of motion.
C
G LAMONT
JUDGE
OF THE HIGH COURT OF SOUTH AFRICA
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