City of Ekurhuleni Metropolitan Municipality v LAPA Property Investments (Pty) Ltd and Others (2018/40589) [2023] ZAGPJHC 1327 (13 November 2023)

City of Ekurhuleni Metropolitan Municipality v LAPA Property Investments (Pty) Ltd and Others (2018/40589) [2023] ZAGPJHC 1327 (13 November 2023)

The court found that Lapa failed to prove the agreement was void for non-compliance with statutory requirements, as it did not provide positive evidence of non-compliance. The City's claim was not prescribed because the breach was ongoing and the claim only became due upon cancellation, which occurred within the...

Source-derived case information.

Citation
[2023] ZAGPJHC 1327
Parties
Applicant: City of Ekurhuleni Metropolitan Municipality; Respondent: LAPA Property Investments (Pty) Ltd; Respondent: Ngou Phillemon Lebeloane; Respondent: Jacob Boane Mogafe; Respondent: Matthews Sekgweng Mogafe; Respondent: Meshack Raphalane Mogafe; Respondent: Thomas Kaizer Poee; Respondent: Thozama Reneth Skosana N.O.; Respondent: Velapi Skosana N.O.; Respondent: Roberto Jorge Menchonca Velosa; Respondent: IProtect Trustees (Pty) Ltd; Respondent: Master of the High Court; Respondent: Deeds Registry
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Case Number
2018/40589
Procedural Posture
Civil Application / Judgment on Application and Conditional Counter Application
Outcome
The agreement is cancelled; the City is entitled to restitution of the properties upon repayment of the purchase price, subject to discharge of the mortgage bond; each party to pay its own costs.
Judges
Ian Green
Legal Topics
Contract Cancellation, Restitution, Mortgage Bond Cancellation, Prescription, Municipal Finance Management Act, Deeds Registry Act
Land and Property Civil Procedure Commercial and Corporate Contract Cancellation Restitution Mortgage Bond Cancellation Prescription Municipal Finance Management Act +1 more

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Parties

City of Ekurhuleni Metropolitan Municipality

Applicant

LAPA Property Investments (Pty) Ltd

Respondent

Ngou Phillemon Lebeloane

Respondent

Jacob Boane Mogafe

Respondent

Matthews Sekgweng Mogafe

Respondent

Meshack Raphalane Mogafe

Respondent

Thomas Kaizer Poee

Respondent

Thozama Reneth Skosana N.O.

Respondent

Velapi Skosana N.O.

Respondent

Roberto Jorge Menchonca Velosa

Respondent

IProtect Trustees (Pty) Ltd

Respondent

Master of the High Court

Respondent

Deeds Registry

Respondent

Procedural Posture

Civil Application / Judgment on Application and Conditional Counter Application

  1. 1 Whether the sale agreement between the City and Lapa is void for non-compliance with statutory requirements.
  2. 2 Whether the City validly cancelled the agreement and is entitled to restitution of the properties.
  3. 3 Whether the City's claim is prescribed.

Ratio Decidendi

The court found that Lapa failed to prove the agreement was void for non-compliance with statutory requirements, as it did not provide positive evidence of non-compliance. The City's claim was not prescribed because the breach was ongoing and the claim only became due upon cancellation, which occurred within the prescription period. The City validly cancelled the agreement through an authorised official and supporting correspondence, and the contract did not require a Council resolution for cancellation. Restitution requires both parties to return their respective performances; thus, the City must repay the purchase price to Lapa when reclaiming the properties. The court has inherent...

Court Disposition

The agreement is cancelled; the City is entitled to restitution of the properties upon repayment of the purchase price, subject to discharge of the mortgage bond; each party to pay its own costs.

Orders

  • The agreement between the applicant and the first respondent is cancelled.
  • The Registrar of Deeds is directed to cancel Mortgage Bond B[....]8.