Offit Enterprises (Proprietary) Limited and Another v Coega Development Corporation (Proprietary) Limited and Others (1764/07) [2008] ZAECHC 195; 2009 (5) SA 661 (SE) (19 November 2008)

Offit Enterprises (Proprietary) Limited and Another v Coega Development Corporation (Proprietary) Limited and Others (1764/07) [2008] ZAECHC 195; 2009 (5) SA 661 (SE) (19 November 2008)

The court found that while the applicants had established a continuous threat of expropriation by the first respondent, they failed to prove entitlement to the declarator sought. The first respondent has no power to expropriate, and the second respondent cannot lawfully do so for its benefit. The third and fourth respondents, who possess expropriation powers, have stated no intention to expropriate the applicants' properties. The validity of the first respondent's operator permit cannot be challenged collaterally in these proceedings, as there is no coercion and the permit has not been set aside. Expropriation for a public purpose or in the public interest is permissible under the...

Citation
[2008] ZAECHC 195
Parties
Applicant: Offit Enterprises (Proprietary) Limited; Applicant: Offit Farming Enterprises (Proprietary) Limited; Respondent: Coega Development Corporation (Proprietary) Limited; Respondent: Premier of the Eastern Cape Government; Respondent: Minister of Public Works; Respondent: Minister of Trade and Industry
Court
High Courts - Eastern Cape
Jurisdiction
South Africa
Judgment Date
19 November 2008
Case Number
1764/07
Procedural Posture
Urgent Application / Judgment on Application for Declaratory and Mandatory Relief
Outcome
Application dismissed with costs, including costs of two counsel for each respondent.
Judges
J C H Jansen
Legal Topics
Expropriation Act, Public Purpose and Interest, Collateral Challenge, Industrial Development Zone, Declaratory Relief, Mandamus
Land and Property Constitutional Law Administrative Law Expropriation Act Public Purpose and Interest Collateral Challenge Industrial Development Zone Declaratory Relief +1 more

Case Brief

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Parties

Offit Enterprises (Proprietary) Limited

Applicant

Offit Farming Enterprises (Proprietary) Limited

Applicant

Coega Development Corporation (Proprietary) Limited

Respondent

Premier of the Eastern Cape Government

Respondent

Minister of Public Works

Respondent

Minister of Trade and Industry

Respondent

Procedural Posture

Urgent Application / Judgment on Application for Declaratory and Mandatory Relief

Legal Issues

  1. 1 Whether any expropriation of the applicants' properties for the benefit of the first respondent is permissible or lawful.
  2. 2 Whether the applicants are entitled to a declarator that such expropriation is unlawful.
  3. 3 Whether the applicants are entitled to a mandamus compelling respondents to initiate a lawful expropriation process within a specified period.

Ratio Decidendi

The court found that while the applicants had established a continuous threat of expropriation by the first respondent, they failed to prove entitlement to the declarator sought. The first respondent has no power to expropriate, and the second respondent cannot lawfully do so for its benefit. The third and fourth respondents, who possess expropriation powers, have stated no intention to expropriate the applicants' properties. The validity of the first respondent's operator permit cannot be challenged collaterally in these proceedings, as there is no coercion and the permit has not been set aside. Expropriation for a public purpose or in the public interest is permissible under the...

Court Disposition

Application dismissed with costs, including costs of two counsel for each respondent.

Orders

  • The application is dismissed.
  • The applicants are ordered to pay the costs of the application, including the costs consequent upon the employment of two counsel by each respondent.