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South Africa Judgment

Western Cape High Court, Cape Town

Roos NO and Others v Rostberg (Pty) Limited (21108/2008) [2009] ZAWCHC 116 (12 February 2009)

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Source document

01

Holding and result

The court found that the respondent's rights of occupation were derived from the unsigned written lease agreement, which had expired. After expiry, the respondent occupied the property on a monthly basis as provided for in the lease. The respondent's claim to further rights of occupation based on an alleged contract of sale was rejected, as such a contract would be invalid under Act 70/1970. The respondent's contention that consent to apply for subdivision and rezoning under Act 126/1993 conferred additional rights of occupation was also rejected due to lack of evidence. The court concluded that the respondent did not acquire any further rights of occupation beyond those provided in the lease agreement.

Court disposition

Order granted in terms of prayers 2, 3, and 4 of the notice of motion.

Orders

  • The respondent's rights of occupation are limited to those provided in the expired lease agreement, namely occupation on a monthly basis.
  • The respondent is not entitled to any further rights of occupation based on the alleged contract of sale or consent to apply for subdivision and rezoning.
  • Order is made in terms of prayers 2, 3, and 4 of the notice of motion.

02

Material facts

Parties

Tielman Johannes Roos N.O.

Applicant

Izak Bartlomeus van Per Vyfer N.O.

Applicant

Johan George Roos N.O.

Applicant

Rostberg (Pty) Limited

Respondent

03

Procedural history

  1. Posture

    Civil Application / Final Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that the respondent's right of occupation was derived solely from the unsigned written lease agreement, which had expired. They contended that any subsequent occupation was on a monthly basis as provided for in the lease. The applicants denied that the respondent acquired further rights of occupation through any contract of sale or by consent to apply for subdivision and rezoning, asserting that there was no evidence to support such claims.
Respondent
The respondent alleged that it, or Blue Nightingale acting on its behalf, entered into a contract of sale with the applicants, thereby acquiring further rights of occupation. The respondent also claimed that it was authorised by the applicants to apply for subdivision and rezoning under Act 126/1993, which it argued conferred additional rights of occupation. The respondent conceded that the alleged contract of sale would be invalid under Act 70/1970.

05

Court’s reasoning

  1. 01

    Pfascon Evans

    In motion proceedings, the facts alleged by the applicant and admitted by the respondent, together with the respondent's version, must be considered to determine whether the order sought is justified.

  2. 02

    Act 70/1970

    A contract of sale that contravenes Act 70/1970 is invalid and cannot confer rights of occupation.

  3. 03

    Act 126/1993

    Consent to apply for subdivision and rezoning under Act 126/1993 does not, in itself, confer rights of occupation beyond those provided in the lease agreement.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the respondent's rights of occupation were derived from the unsigned written lease agreement, which had expired. After expiry, the respondent occupied the property on a monthly basis as provided for in the lease. The respondent's claim to further rights of occupation based on an alleged contract of sale was rejected, as such a contract would be invalid under Act 70/1970. The respondent's contention that consent to apply for subdivision and rezoning under Act 126/1993 conferred additional rights of occupation was also rejected due to lack of evidence. The court concluded that the respondent did not acquire any further rights of occupation beyond those provided in the lease agreement.

Obiter and limits

  • The legal representative for the respondent correctly conceded that a contract of sale of the nature alleged would be invalid under Act 70/1970.
  • There was no evidence in the respondent's affidavits to support the claim that consent to apply under Act 126/1993 conferred additional rights of occupation.

Court disposition

Order granted in terms of prayers 2, 3, and 4 of the notice of motion.

  • The respondent's rights of occupation are limited to those provided in the expired lease agreement, namely occupation on a monthly basis.
  • The respondent is not entitled to any further rights of occupation based on the alleged contract of sale or consent to apply for subdivision and rezoning.
  • Order is made in terms of prayers 2, 3, and 4 of the notice of motion.

Source and reliance status

Western Cape High Court, Cape Town

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Judgment text

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Source document

Western Cape High Court, Cape Town

Judgment

[2009] ZAWCHC 116

IN THE HIGH COURT OF SOUTH AFRICA(CAPE OF GOOD HOPE PROVINCIAL DIVISION)CASE NO: 21108/2008

DATE: 12 FEBRUARIE 2009

In the matter between:

TIELMAN JOHANNES ROOS N.O.

IZAK BARTLOMEUS VAN PER VYFER N.O.

JOHAN GEORGE ROOS N.O. APPLICANT

and

ROSTBERG (PTY) LIMITED RESPONDENT

JUDGMENT

ALLIE, J:

In this matter, in applying the generally accepted principles in motion procedures and applying the principles of Pfascon Evans and in considering therefore the facts submitted by the applicants, alleged by the applicants, which have been ateo admitted by the respondent, as well as Jooking at the respondent's facts as to whether in fact an order sought by the applicant is justified, I am of the opinion that the rights of occupation initially held by the respondent were in fact derived from terms set out in the draft unsigned written agreement of lease. It is common cause that tn fact the period

provided for in that unsigned written agreement of (ease had in fact expired and that therefore I am of the view that the respondent

subsequently occupied the buildings and property owned by the applicants on a monthly basis as provided for in that agreement of

lease.

With regard to the respondent's allegation that it subsequently entered into a contract of sale with the applicant, not directly itself but that Blue Nightingale, a different juristic person, entered into such contract of sale on its behatf, i.e. on respondent's behalf, with applicant and that certain fights of occupation which the respondent subsequently held were then derived from such contract of sale, of course the legal representative on behalf of the respondent correctly conceded that a contract of sale of that nature would fall foul of Act 70/1970 and therefore such sale "would not be alfowed", to use his terminology.

Given that the respondent goes on to allege that by virtue of the fact that a representative of the applicant authorised the respondent to apply in terms of Act 126/1993 for sub-division and re-zoning, as well as for all the remedies available to an applicant in terms of that Act, the respondent's contention that it thereby derived further rights of occupation by virtue of such consent to apply in terms of the 1993 Act is rejected on the basis that there is no evidence in the respondent's affidavits to support, and even on a conspectus of all the papers, there is no evidence to support a conclusion that even a discussion along the lines that respondent was permitted to make an application in terms of the 1993 Act, entitled the respondent to thereby occupy the leased premises or even portions of the property beyond the area of the leased premises, until such application was either granted or refused.

So in the circumstances I am not persuaded that the respondent derived any further rights of occupation once the written agreement of lease had lapsed, other than what the written agreement of lease itself provided for, namely occupation on a monthly basis, and in the circumstances I am prepared to MAKE AN ORDER IN TERMS OF PRAYER 2, 3 AND 4 OF THE NOTICE OF MOTION.

ALLIE, J

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Authorities

Authorities used by the court

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

Pfascon Evans

Case cited

Act 70/1970

Legislation

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Act 126/1993

Legislation

Legislation referenced in the available case record.

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