The
applicant seeks an order for specific performance of a contract of
sale of an immovable property called Lot 1 of Subdivision 2 of Lot
382A Highlands Estate measuring 4,043 square metres held under Title
Deed No.13635/2001, registered in the names of the first and second
respondents, husband and wife respectively….,.
The
second respondent is opposed to the order sought by the applicant.
She
counter-applies for an order declaring the agreement of sale relied
upon by the applicant null and void ab
initio.
She avers that, as joint owner of the property in question, she never
consented to the sale of the property. She states that the signature
appended to the Power of Attorney executed in favour of the first
respondent granting him power to transfer her half-share is a
forgery.
The
applicant makes the following averments regarding the circumstances
leading to this application:
On
15 February 2005, the first and second respondents sold the property
to one Wonderful Chizema. On 1 July 2005, the first and second
respondents sold the same property to the applicant. At the time of
the sale the applicant was unaware of the prior sale to Wonderful
Chizema.
On
20 July 2005, the first and second respondents sought to cancel the
sale of the property to Wonderful Chizema. Chizema did not accept the
cancellation. He obtained a provisional order, on 23 August 2005, in
this court, interdicting the first and second respondents from
alienating the property in any way. The provisional order was never
confirmed. The applicant states that Wonderful Chizema has since
fallen out of the picture.
On
2 August 2005, the first respondent sought to cancel the sale of the
property to the applicant. The applicant did not accept the
cancellation. It obtained a provisional order in this court on 2
September 2005 interdicting the first and second respondents from
alienating the property in any way pending the determination of an
application compelling transfer of the property to it.
On
5 October 2005, the applicant obtained default judgment against the
respondents in terms of the order in the present application.
Consequently, the property was transferred to it.
On
10 October 2005, a writ of eviction was issued out in favour of the
applicant for the eviction of both the first and second respondents
from the property. The first and second respondents obtained an order
staying eviction pending the filing of an application for rescission
of judgment.
On
20 December 2006, the second respondent applied for and obtained
rescission of the judgment granted on 5 October 2005.
This
application deals with the merits of the main application.
The
issue is whether the applicant is entitled to the order sought in the
application for specific performance.
The
first respondent has not opposed the order sought.
The
second respondent states that her marriage to the first respondent,
around 24 February 2004, the date the power of attorney in favour of
the first respondent was signed, was on the rocks due to the first
respondent's association with one Ivy Kombo. As such, she could not
possibly have executed the power of attorney as alleged. In any
event, she had already executed such power of attorney in favour of
her sister.
Counsel
for
the applicant urged this court to find for the applicant on the
following grounds:
(a)
Firstly, he contended that as the second respondent was fully aware
of the sale of the joint matrimonial property to the applicant, she
must be ordered to pass transfer to the
applicant.
(b)
Secondly, if this court held that she was unaware of the sale to the
applicant, and, therefore, found that her signature consenting to the
sale is a forgery, the court must still order specific performance as
she will not suffer any prejudice since she can still call upon the
first respondent to account for the sale of the proceeds of the sale
of the matrimonial assets in the pending divorce action.
(c)
Thirdly, since, at common law, the second respondent is regarded as
co-owner of the asset in issue, she will be entitled to a share on
the property proportionate to her shareholding. See Runciman
v Schultz
1923 TPD 45 where…, the following appears;
“The
principle of our law on this point seems to me to be contained in the
first paragraph of Digest (10.3.6.2), where Ulpton says;
'A
joint owner (socius) will be bound by the actio communi dividundo to
account for whatever he has acquired from the common property,
whether by letting the common property or by cultivating it himself.”
The
applicant argues that the first respondent need not have obtained the
second respondent's consent before disposing of his half-share. As
such, the sale of the first respondent's half share to the
applicant cannot be impugned. If the applicant does not obtain
transfer, the result will be that the
applicant, a company, and the second respondent, will become
co-owners of a residential property which, for strangers, is absurd.
The applicant urged the court to exercise its wide discretion to make
such an order as the justice of the case may require. Estate
Rother v Estate Sandig
1943 AD 47.
In
Bennett
N.O. v Le Roux
1983 ZLR 301 (H) the relevant authorities are discussed and set out
as follows;
“The
task of the court is to decide how the property should be sold, and,
in doing that, it is being guided by the following passage in
Oosthuizen's The
Law of Property
on p63:
“If
the joint owners are unable to agree upon the manner in which the
property is to be divided, any one of them may approach the court for
relief by instituting the actio
communi dividundo.
The court has a wide discretion in regard to the partition and may
make such order as appears to be fair and equitable in the
circumstances. It may, for example, order one joint owner to pay a
certain sum to each of the others in order to equalise the division;
the court may award it to one of the joint owners subject to the
payment of compensation to the other; or it may order that the
property be sold by public auction and the proceeds to be divided
among the joint owners in accordance with their shares.”
The
second respondent is vehemently opposed to the grant of the order
sought, and, as I said, makes a counter-application for an order
declaring the agreement of sale null and void ab
initio.
She
raised a point in limine that as there is a
dispute of fact incapable of resolution on the papers, the matter
must be referred to trial.
It
seems to me that there are sufficient facts which are common cause on
the papers upon which this court can, adopting a robust approach to
the whole matter, rely upon to resolve the dispute.
As
I understood it, the contention by counsel for the second respondent
is that despite the fact that a divorce is pending, at law, she is
still married to the first respondent. By virtue of her marriage she
is a joint owner of equal and undivided share in the property. She
was never party to the agreement of sale which the applicant seeks to
enforce. The power of attorney used to effect the agreement of sale
was forged in favour of the first respondent. As such, she is not
bound by the agreement.
It
is true that a co-owner may not purport to alienate the property
which is jointly co-owned without the consent of the other owners;
and that alienation of jointly owned property can only be effected by
the joint action of all the owners. Masubey
v Masubey
1993 (2) ZLR 36.
There
may, however, be circumstances in which a court may be called upon to
consider whether or not to recognise an alienation which violates
this principle of our law.
A
common occurrence of such a circumstance occurs in matrimonial
property. In Ncube
v Ncube
1993
(1) ZLR 39 (S) the court was called upon to do exactly that. At p46
the Supreme Court expressed itself thus:
“It
is true that joint owners of property own each and every part of the
property equally, and, therefore, own equal shares in the value of
the property. But when property comes to be apportioned or divided
under section 7 of the Act, even though the spouses may be joint
owners of the property, the Act confers on a court of law, in the
interest of justice and fair play, power to take part of a spouse's
share in property jointly owned to give it to the other spouse, if,
by doing so, it could place the spouses in the position they would
have been had a normal marriage relationship continued between them.”
In
the present case, it is my finding that the first respondent
misrepresented to the applicant that he had the power of attorney to
enter into the agreement of sale in respect of the second
respondent's half share in the immovable property. I also find that
the applicant had no reason to suspect that there was a
misrepresentation of fact in respect of the authority to pass
transfer by the first respondent. The papers do not suggest that it
was in the public domain that the first and second respondent's
marriage was on the verge of collapse in 2005. It therefore cannot be
argued that the applicant was not an innocent purchaser for value
when it bought the property. Indeed, that is not the second
respondent's contention. She relies on her lack of knowledge and
consent to the sale of her half-share by her husband only.
Having
come to that conclusion I must decide whether or not I should order
specific performance.
Our
law is clear that a plaintiff is always entitled to specific
performance, and, if he or she makes out a case, his or her claim
will be granted - only subject to the court's discretion. The locus
classicus
for this view is the judgment of INNES J in Farmers
Co-operative Society (Reg)
v
Beny
1912 AD 343 where…, he says:
“Prima
facie,
every party to binding agreement who is prepared to carry out his own
obligation under it has a right to demand from the other party, so
far as it is possible, a performance of his undertaking in terms of
the contract. As remarked by KOTZE CJ in Thompson
v
Pullinger
(1894)
1 OR at p301;
'The
right of a plaintiff to the specific performance of a contract where
the defendant is in a position to do so is beyond doubt.'
It
is true that Courts will exercise a discretion in determining whether
or not decrees of specific performance will be made. They will not,
of course, be issued where it is impossible for the defendant to
comply with them. And there are many cases in which justice between
the parties can be fully and conveniently done by an award of
damages. But that is a different thing from saying that a defendant
who has broken his undertaking has an option to purge his default by
the payment of money. For, in the words of Storey
(Equity in Jurisprudence,
sec 717(a));
'It
is against conscience that a party should have a right of election
whether he would perform his contract or only pay damages for the
breach of it.'
The
election is rather with the injured party, subject to the discretion
of the court.”
In
exercising the court's discretion I am aware that “…, (t)he
discretion which a court enjoys, although it must be exercised
judicially, is not confined to specific types of cases, nor is it
circumscribed by rigid rules. Each case must be judged in the light
of its own
circumstances.”
per DE VILLIERS AJA in Heynes
v Kingwilliamstown Municipality
1951 (2) SA 371…,.
In
this case, what I find to weigh heavily in favour of the granting of
the order sought is;
(a)
The fact that the applicant entered into the agreement of sale
without any suspicion that the first defendant may have forged his
wife's signature to the agreement.
(b)
Secondly, the applicant has made full payment for value to the first
respondent. It is for the first respondent to disgorge his ill-gotten
gains in favour of his estranged wife.
(c)
Thirdly, in view of the pending divorce proceedings, the second
respondent will not suffer any prejudice by making a claim for her
share in those proceedings taking into account the findings against
her husband made in this judgment.
(d)
Further, a balance of convenience favour the making of an order in
favour of the applicant in the terms sought.
In
the premises, therefore, the second respondent's counter-claim is
dismissed with costs. In the premises I make the following order:
1.
The third respondent be and is hereby ordered to transfer a certain
piece of land situate in the district of Salisbury known as Lot 1 of
Subdivision 2 of Lot 382 A Highlands Estate measuring 4,043 square
metres held under Deed of Transfer No.13635/2001 to the applicant.
2.
The Sheriff of the High Court of Zimbabwe or his lawful Deputy be and
is hereby authorised to sign all papers necessary to transfer title
in favour of the applicant in terms of paragraph 1 above.
3.
The fourth respondent be and is hereby ordered to issue a duplicate
Capital Gains Tax Clearance Certificate to Matipano and Musimwa legal
practitioners of the Certificate he issued to Musunga and Associates
upon application and in fulfilment of his requirements for him to
issue such certificate.
4.
Matipano and Musimwa legal practitioners be and are hereby authorized
to process the conveyancing of the property referred to in paragraph
1 above to the applicant.
5.
The Deputy Sheriff be and are hereby ordered to evict the first and
second respondents and all those claiming through them from a certain
piece of land situate in the district of Salisbury known as Lot 1 of
Subdivision 2 of Lot 382 A Highlands Estate measuring 4,043 square
metres held under Deed of Transfer No.13635/2001 otherwise known as 4
Knightsbridge Crescent, Highlands, Harare with the assistance of the
members of the Zimbabwe Republic Police, if necessary, upon giving
five days notice.
6.
The first and second respondents, jointly and severally, the one
paying the other to be absolved, be and are hereby ordered to pay
costs of suit.