Kimate Investments (Pty) Ltd v DVN Boerdery CC (2456/2014) [2016] ZAFSHC 104 (23 June 2016)

Kimate Investments (Pty) Ltd v DVN Boerdery CC (2456/2014) [2016] ZAFSHC 104 (23 June 2016)

The court found that the purchase price under the agreement was R1,849,200.00, excluding VAT. After deducting the undisputed short delivery amount of R246,040.00, the net purchase price was R1,603,160.00. VAT at 14% amounted to R224,442.40, resulting in a total of R1,827,602.40. The defendant had paid R1,030,000.00, leaving R797,602.40 due and payable. The plaintiff was entitled to judgment for this amount, together with interest from 12 June 2014. The defendant's claim for licensing fees was dismissed due to lack of evidence and the terms of the agreement. Each party was ordered to pay its own costs, reflecting the court's displeasure at the conduct of both parties regarding pleadings...

Citation
[2016] ZAFSHC 104
Parties
Plaintiff: Kimate Investments (Pty) Ltd; Defendant: DVN Boerdery CC
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
23 June 2016
Case Number
2456/2014
Procedural Posture
Civil Trial / Final Judgment
Outcome
Judgment for the plaintiff for payment of the outstanding purchase price, with interest; defendant's counterclaim for licensing fees dismissed; each party to pay its own costs.
Judges
C. Reinders
Legal Topics
Sale of Goods, Contractual Breach, Value Added Tax, Specific Performance
Commercial and Corporate Sale of Goods Contractual Breach Value Added Tax Specific Performance

Case Brief

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Parties

Kimate Investments (Pty) Ltd

Plaintiff

DVN Boerdery CC

Defendant

Procedural Posture

Civil Trial / Final Judgment

Legal Issues

  1. 1 Whether the defendant is liable for the outstanding purchase price under the sale agreement.
  2. 2 Whether the defendant is entitled to a reduction in the purchase price due to short delivery of livestock and moveable assets.
  3. 3 Whether the plaintiff is entitled to claim VAT on the transaction.

Ratio Decidendi

The court found that the purchase price under the agreement was R1,849,200.00, excluding VAT. After deducting the undisputed short delivery amount of R246,040.00, the net purchase price was R1,603,160.00. VAT at 14% amounted to R224,442.40, resulting in a total of R1,827,602.40. The defendant had paid R1,030,000.00, leaving R797,602.40 due and payable. The plaintiff was entitled to judgment for this amount, together with interest from 12 June 2014. The defendant's claim for licensing fees was dismissed due to lack of evidence and the terms of the agreement. Each party was ordered to pay its own costs, reflecting the court's displeasure at the conduct of both parties regarding pleadings...

Court Disposition

Judgment for the plaintiff for payment of the outstanding purchase price, with interest; defendant's counterclaim for licensing fees dismissed; each party to pay its own costs.

Orders

  • Judgment for plaintiff in the amount of R797,602.40 together with interest a tempore morae calculated from 12 June 2014 until date of payment.
  • Each party to pay its own costs.