Masstores (Proprietary) Limited v South African Broadcasting Corporation Limited (A5071/2014, 3294/2012) [2015] ZAGPJHC 192 (31 August 2015)

Masstores (Proprietary) Limited v South African Broadcasting Corporation Limited (A5071/2014, 3294/2012) [2015] ZAGPJHC 192 (31 August 2015)

The court held that the meaning of 'sells' in section 27(4) of the Broadcasting Act cannot be limited to the mere formalities of a contract of sale. Instead, it refers to the wider transaction completed by delivery of the television set. The purpose of section 27(4) is to assist the SABC in collecting licence fees from those obliged to possess a television licence. Mere agreement to buy and sell does not amount to use or possession of a television set. The penalty provision applies only when delivery is effected to a person not in possession of a licence. Since Masstores delivered the television sets only after EduSolutions obtained the requisite licence, it did not contravene section...

Citation
[2015] ZAGPJHC 192
Parties
Appellant: Masstores (Proprietary) Limited; Respondent: South African Broadcasting Corporation Limited
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
31 August 2015
Case Number
A5071/2014, 3294/2012
Procedural Posture
Civil Appeal / Appeal From Dismissal of Declaratory Application
Outcome
Appeal upheld; order of the court a quo set aside and replaced with declaratory relief in favour of the appellant.
Judges
Meyer, Victor, Wepener
Legal Topics
Contract of Sale, Statutory Interpretation, Broadcasting Act, Dealer Liability, Penalty Provisions
Commercial and Corporate Contract of Sale Statutory Interpretation Broadcasting Act Dealer Liability Penalty Provisions

Case Brief

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Parties

Masstores (Proprietary) Limited

Appellant

South African Broadcasting Corporation Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Dismissal of Declaratory Application

Legal Issues

  1. 1 Whether the appellant sold or alienated television sets to EduSolutions prior to EduSolutions obtaining the requisite television licence as required by section 27(4) of the Broadcasting Act.
  2. 2 Whether the sale of the television sets was in breach of the Broadcasting Act.
  3. 3 Whether the appellant is liable for penalties under section 27(4) of the Broadcasting Act.

Ratio Decidendi

The court held that the meaning of 'sells' in section 27(4) of the Broadcasting Act cannot be limited to the mere formalities of a contract of sale. Instead, it refers to the wider transaction completed by delivery of the television set. The purpose of section 27(4) is to assist the SABC in collecting licence fees from those obliged to possess a television licence. Mere agreement to buy and sell does not amount to use or possession of a television set. The penalty provision applies only when delivery is effected to a person not in possession of a licence. Since Masstores delivered the television sets only after EduSolutions obtained the requisite licence, it did not contravene section...

Court Disposition

Appeal upheld; order of the court a quo set aside and replaced with declaratory relief in favour of the appellant.

Orders

  • The appeal is upheld with costs, including those of two counsel.
  • The order of the court a quo is set aside and replaced with a declaration that the applicant did not sell or alienate 2 500 television sets to EduSolutions prior to EduSolutions obtaining the requisite television licence.