Mokala Beleggings (Pty) Ltd and Another v Minister of Rural Development and Land Reform and Others (2012 (4) SA 22 (SCA); [2012] 3 All SA 130 (SCA)) [2012] ZASCA 209; [2012] ZASCA 21 (23 March 2012)

Mokala Beleggings (Pty) Ltd and Another v Minister of Rural Development and Land Reform and Others (2012 (4) SA 22 (SCA); [2012] 3 All SA 130 (SCA)) [2012] ZASCA 209; [2012] ZASCA 21 (23 March 2012)

The Supreme Court of Appeal held that the State was in deliberate default regarding payment and transfer, having instructed its conveyancers to delay due to budgetary constraints. The contractual clause 5.2 did not fix a definite date for transfer, so mora ex re did not apply. However, the written letters of demand, properly dispatched and received, placed the State in mora ex persona. The breach and notice provisions in the agreements were satisfied, and the department's evasive response did not create a bona fide dispute. The appellants suffered financial loss due to the delay, and the State was liable for mora interest on the purchase price for the specified periods. The appeal...

Citation
[2012] ZASCA 21
Parties
Appellant: Mokala Beleggings (Pty) Ltd; Appellant: Willem Hendrik Steyn Snyman; Respondent: Minister of Rural Development and Land Reform; Respondent: Director-General of the Department of Land Affairs; Respondent: Chief Land Claims Commissioner; Respondent: Regional Land Claims Commissioner: Gauteng and North West Province; Respondent: Deputy Director: Finance, Department of Land Affairs; Respondent: Minister of Finance; Respondent: Registrar of Deeds; Respondent: Mahlangu Attorneys; Respondent: Barolong ba ga Mariba Community
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
23 March 2012
Case Number
276/2011
Procedural Posture
Civil Appeal / Appeal From Land Claims Court
Outcome
Appeal upheld. The order of the Land Claims Court is set aside and replaced with an order for payment of interest and costs.
Judges
MPATI, NAVSA, SNYDERS, MAJIEDT, WALLIS
Legal Topics
Mora Interest, Contractual Delay, Specific Performance, Land Claims, Sale of Land, Restitution of Land Rights Act
Land and Property Civil Procedure Mora Interest Contractual Delay Specific Performance Land Claims Sale of Land Restitution of Land Rights Act

Case Brief

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Parties

Mokala Beleggings (Pty) Ltd

Appellant

Willem Hendrik Steyn Snyman

Appellant

Minister of Rural Development and Land Reform

Respondent

Director-General of the Department of Land Affairs

Respondent

Chief Land Claims Commissioner

Respondent

Regional Land Claims Commissioner: Gauteng and North West Province

Respondent

Deputy Director: Finance, Department of Land Affairs

Respondent

Minister of Finance

Respondent

Registrar of Deeds

Respondent

Mahlangu Attorneys

Respondent

Barolong ba ga Mariba Community

Respondent

Procedural Posture

Civil Appeal / Appeal From Land Claims Court

Legal Issues

  1. 1 Whether the State is liable for mora interest due to deliberate delay in transfer and payment of purchase price.
  2. 2 Whether the contractual provisions or written demand placed the State in mora.
  3. 3 Whether the breach provisions and notices were properly effected to trigger liability for interest.

Ratio Decidendi

The Supreme Court of Appeal held that the State was in deliberate default regarding payment and transfer, having instructed its conveyancers to delay due to budgetary constraints. The contractual clause 5.2 did not fix a definite date for transfer, so mora ex re did not apply. However, the written letters of demand, properly dispatched and received, placed the State in mora ex persona. The breach and notice provisions in the agreements were satisfied, and the department's evasive response did not create a bona fide dispute. The appellants suffered financial loss due to the delay, and the State was liable for mora interest on the purchase price for the specified periods. The appeal...

Court Disposition

Appeal upheld. The order of the Land Claims Court is set aside and replaced with an order for payment of interest and costs.

Orders

  • The first to fourth respondents are ordered jointly and severally to pay the costs of the appeal.
  • The first to fourth respondents are ordered to pay interest to the first applicant at the rate of 15.5% per annum on R1,450,000 from 28 November 2009 until 30 June 2010 and on a further R1,450,000 from 8 December 2009 until 12 July 2010.