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South Africa Judgment

Free State High Court, Bloemfontein

Helta Boerdery (Pty) Ltd and Another v De Vos Landgoed (Pty) Ltd and Another (5778/2023) [2024] ZAFSHC 251 (20 August 2024)

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Source document

01

Holding and result

The court found that the applicants failed to discharge the onus of showing reasonable prospects of success on appeal. The evidence did not support the claim that the first applicant was in peaceful and undisturbed possession of the Nelsgift property at the relevant time, nor did it establish the requirements for a spoliation order or interim interdict. The applicants' arguments regarding urgency and costs were not persuasive. The relief sought was not justified, and the application for leave to appeal was dismissed with costs.

Court disposition

Application for leave to appeal dismissed with costs.

Orders

  • The application for leave to appeal is dismissed with costs.

02

Material facts

Parties

Helta Boerdery (Pty) Ltd

Applicant Counsel: Adv W Roos

Al Mabroor Agri (Pty) Ltd

Applicant Counsel: Adv W Roos

De Vos Landgoed (Pty) Ltd

Respondent Counsel: Adv LK Van Der Merwe

Doornbult Bedrywighede (Pty) Ltd

Respondent Counsel: Adv LK Van Der Merwe

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal Following Dismissal of Interdict Application

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the court erred in finding the matter not urgent, in rejecting the spoliation claim, and in holding that the requirements for an interim interdict were not met. They contended that the objective evidence showed the first applicant was in peaceful and undisturbed possession of the Nelsgift property, conducting farming activities on behalf of the second respondent, which was dormant and inoperative at the relevant time. The applicants asserted that only the first applicant could have been in control of Nelsgift, and the relief sought was necessary to maintain the status quo pending finalisation of related litigation in the Kimberly High Court. They maintained that the appeal had reasonable prospects of success and was in the interests of justice.
Respondent
The respondents maintained that the applicants failed to establish urgency, did not meet the requirements for a spoliation order, and failed to demonstrate entitlement to an interim interdict. They argued that the second respondent was in peaceful and undisturbed possession of the property, and the applicants' claims were not supported by the evidence. The respondents further contended that the costs order was justified and that there were no reasonable prospects of success on appeal.

05

Court’s reasoning

  1. 01

    Section 17(1)(a)(i) and (ii) of the Superior Courts Act 10 of 2013

    Leave to appeal may only be granted if there are reasonable prospects of success or some other compelling reason for the appeal to be heard, including conflicting judgments.

  2. 02

    General South African appellate law

    The test for reasonable prospects of success requires a rational basis for concluding that a court of appeal could reasonably reach a different conclusion.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicants failed to discharge the onus of showing reasonable prospects of success on appeal. The evidence did not support the claim that the first applicant was in peaceful and undisturbed possession of the Nelsgift property at the relevant time, nor did it establish the requirements for a spoliation order or interim interdict. The applicants' arguments regarding urgency and costs were not persuasive. The relief sought was not justified, and the application for leave to appeal was dismissed with costs.

Obiter and limits

  • The court noted that the test for reasonable prospects of success is objective and requires more than a remote chance of success.
  • The applicants did not complain that the respondent failed to comply with the undertaking regarding removal of vehicles and equipment, which was fully addressed in the original judgment.

Court disposition

Application for leave to appeal dismissed with costs.

  • The application for leave to appeal is dismissed with costs.

Source and reliance status

Free State High Court, Bloemfontein

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Judgment reading view

Judgment text

The complete available source text.

Source document

Free State High Court, Bloemfontein

Judgment

[2024] ZAFSHC 251

IN THE HIGH COURT OF SOUTH AFRICA,

FREE STATE DIVISION, BLOEMFONTEIN

Reportable:

NO

Of Interest to other Judges: NO

Circulate to Magistrates: NO

Case No: 5778/2023

In the matter between:

HELTA BOERDERY (PTY) LTD 1st Applicant AL MABROOR AGRI (PTY) LTD 2nd Applicant and DE VOS LANDGOED (PTY) LTD 1st Respondent

DOORNBULT BEDRYWIGHEDE (PTY) LTD 2nd Respondent

HEARD ON: Matter disposed of without oral hearing in terms of section19(a) of the Superior Court Act 10 of 2013.

JUDGMENT BY: MHLAMBI,

J

DELIVERED ON:

19 AUGUST 2024

APPLICATION FOR LEAVE

TO APPEAL

[1] This is an application for leave to appeal against the whole of the judgment I granted on 03 November 2023, in which the applicants’ application for, amongst other things, interdictory relief was dismissed with costs.

[2] The grounds of appeal were stated as follows:

“1. The learned Judge erred in finding that the matter is not urgent;

2. The learned Judge erred in finding that the applicants failed to prove the requirements necessary for a spoliation order;

3. The learned Judge erred in finding that the requirements for the granting of an interim interdict were not met.

4. The learned Judge erred in granting costs of the application in favour of the respondent.

5. It is thus in the interests of justice that an appeal is allowed, as contemplated in section 17(1)(a)(i) and (ii) of the Superior Courts Act 10 of 2013.”

[3] It is trite that leave to appeal may only be given where the judge or judges concerned are of the opinion that an appeal would have reasonable prospects of success or that there is some other compelling reason why the appeal should be heard including conflicting judgments on the matter under consideration.

[4] In their heads of argument, the applicants submitted that the court, in dismissing the application, erred in making the findings contained in paragraphs 6, 17, 18, 19, 20, and 22 in that:

1. The objective common cause evidence before the court did not support a finding that the second respondent was in peaceful and undisturbed possession of the Nelsgift property on 20 October 2023 because the first applicant had been conducting farming activities on behalf of the second respondent since the inception of the project until 20 October 2023.

2. The first respondent acknowledged and submitted that the second respondent’s income was generated by the first applicant's farming activities.

3. The applicants, the second respondent's majority shareholders, appointed the first applicant to conduct the farming activities on behalf of the second respondent.

4. According to the first respondent’s version, the second respondent was no longer active or operational and was to be deregistered or wound up by 16 August 2023.

5. The second respondent never conducted any farming activities and was only established to provide a vehicle for its shareholders to conduct farming activities together and share in the profits.

6. By the time the application was launched, the second respondent was dormant and inoperative and could, therefore, not have been in peaceful and undisturbed possession of Nelsgift by 20 October 2023.[1]

[5] The first applicant contended that it could have been the only entity that could have been in peaceful and undisturbed control of Nelsgift on 20 October 2023 because the first respondent’s principal place of business was situated in Colesburg, some 320 km away. The first respondent arrived and entered Nelsgift only on 20 October 2023 and could, therefore, not have been in peaceful and undisturbed possession of Nelsgift prior to this date. The first applicant was the only party whose representatives lived and conducted farming activities in the Bultfontein area where Nelsgift was situated. That left the first applicant as the only party who could, on any version and, practically speaking, have been in peaceful and undisturbed possession of Nelsgift as submitted in the founding affidavit.[2]

[6] The applicants contended, furthermore, that the relief sought for an interim interdict flowed from the first applicant’s right to its peaceful and undisturbed control and possession of the Nelsgift property and that the status quo be maintained until such time as the application launched in the Kimberly High Court under case no: 1567/2023 was finalised. The relief was necessitated by the nature of the relief sought in the Kimberly application, as there was a dispute relating to the rights and interests of the applicants and the first respondent, including but not limited to the first respondent’s rights to ownership of the Nelsgift property.[3]

[7] Prayer 2 of the notice of motion sought the restoration of the first applicant’s peaceful and undisturbed control over the farm Nelsgift by ordering the first respondent to remove any and all vehicles and equipment from the premises as well as any employees and/ or representatives. which it may have. The first applicant did not complain in its papers that this prayer was not complied with after it received the first respondent’s

undertaking as per the letter dated 24 October 2023. This aspect was fully dealt with in the judgment. The third prayer in the notice of motion was dependent on the second, and a finding that the first applicant was not in peaceful and undisturbed possession of Nelsgift would affect the third prayer adversely.

[8] The applicants submitted in their heads of argument that the appeal would have reasonable prospects of success and that the application for leave to appeal should be granted. It is trite that the test for reasonable prospects of success postulated a dispassionate decision, based on the facts and law that a court of appeal could reasonably arrive at a conclusion different from that of the trial court. In other words, the appellants needed to convince the court on proper grounds that they had prospects of success on appeal. Those prospects of success must not be remote, but there must exist a reasonable chance of succeeding. A sound rational basis for the conclusion that there are prospects of success must be shown to exist.

[9] The applicants failed to discharge the onus that reasonable prospects of success existed that they would succeed on appeal. The application for leave to appeal must, therefore, fail.

[10] The following order issues.

Order:

The application for leave to appeal is dismissed with costs.

MHLAMBI, J

On behalf of the applicant: Adv W Roos Instructed by McIntyre Van Der Post Attorney 12 Banes Street Westdene Bloemfontein On behalf of the respondent: Adv LK Van Der Merwe Instructed by: EDJ Attorney Inc Brandwag

BLOEMFONTEIN

[1] Para 4.1 of the applicant’s heads of argument

[2] Para 4.2.

[3] Para 5.

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Authorities

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

Superior Courts Act 10 of 2013

Legislation

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