MATHONSI
JA: The
appellants are nine cooperative societies which have been dishing out
residential stands at a piece of land known as Saturday Retreat
Estate (the land) for quite some time. The land is held by the first
respondent by Deed of Transfer number 4035/86 and was acquired by the
Government of Zimbabwe for urban development by Acquisition of Land
Order dated 20 March 2014.
Following
the acquisition, the second respondent herein, who is the acquiring
authority, filed an application against the first respondent in the
Administrative Court (the court a
quo)
for confirmation of the compulsory acquisition order.
The
matter was settled between the parties as a result of which a consent
order was issued by the court a
quo
on 13 January 2015.
The
consent order confirmed the compulsory acquisition and made provision
for compensation due to the first respondent in terms of the
agreement of the parties therein.
Almost
five years after the consent order was granted in the matter
involving the two respondents, the appellants approached the court a
quo
seeking a rescission of that judgment in terms of r449 of the High
Court of Zimbabwe Rules, 1971.
The
basis of the rescission of judgment application was that the judgment
was granted either in error or fraudulently in the absence of the
appellants.
Before
the court a
quo,
the first respondent raised a number of points in
limine
namely that the application was filed out of time without seeking
condonation for the delay; that the appellants lacked locus
standi in judicio
to seek a rescission of an agreement in which they were not a party
and that there was no fraudulent misrepresentation in the grant of
the consent order.
By
judgment delivered on 6 March 2020 the court a
quo
upheld the preliminary points. This appeal is against that judgment
of the court a
quo.
This
Court finds that the appeal is completely devoid of merit. It ought
to be dismissed with costs.
BACKGROUND
By
Government Gazette Extraordinary published on 7 September 2001 a
preliminary notice in terms of s5(1) of the Land Acquisition Act
[Chapter
20:10]
of the intent to acquire the land for resettlement purposes was
issued.
Subsequent
to that the acquisition for resettlement was not pursued presumably
upon a realisation that the land was earmarked for urban settlement.
Notwithstanding
that, the appellants later occupied the land and started parcelling
out residential stands to their members. Their case is that they were
offered the land for that purpose by the government as it was by then
state land given that a preliminary notice of intent to acquire the
land had been published in 2001.
As
I have said, it was not until 20 March 2014 that the government
commenced the process of the lawful compulsory acquisition of the
land for urban development.
On
that date the second respondent issued an acquisition of land order.
As required by law, the second respondent brought an application
before the court a
quo
under case number LA6/14 for confirmation of the compulsory
acquisition and compensation to the first respondent.
The
proceedings in the court a
quo
led to the signing of a settlement between the first and second
respondents on 18 December 2014 which was incorporated in the consent
order sought to be rescinded. The order reads:
“BY
CONSENT IT IS ORDERED THAT:
1.
The compulsory acquisition of the immovable property being the
remaining extent of Saturday Retreat Estate situated in the District
of Salisbury measuring One Thousand and Fifty Seven comma three eight
one (1057,3810) hectares held under Deed of Transfer 4035/1986 (“the
Property”) by the respondent be and is hereby confirmed.
2.
The respondent is entitled to full compensation for the compulsory
acquisition of its urban land.
3.
The manner of compensation shall be as set out in the Memorandum of
Agreement entered into between the Government of Zimbabwe and the
respondent dated 18 December 2014, a copy of which is annexed to this
order as Annexure A.
3.1
The respondent be and is hereby allocated the unoccupied portion of
the property measuring 401 hectares.
3.2
The respondent is hereby appointed the sole and exclusive developer
of the property defined in the Deed of Settlement measuring 401
hectares.
3.3
The terms and conditions of such appointment shall be governed by the
Agreement entered into between Government of Zimbabwe represented by
the Ministry of Local Government and Urban Development and the
respondent, a copy of which is annexed to this order as Annexure A.
4.
The Government of Zimbabwe shall sign all such documents, pass all
such instruments, give such instructions and do all things necessary
to give effect to this Court order.
5.
There shall be no order as to costs.”
Following
the consent order, the Deed of Transfer in terms of which the first
respondent held the land was endorsed on 18 December 2015 to the
effect that it now vests in the President.
It
is common cause that the appellants became aware of the grant of the
court order sought to be rescinded as far back as 2015. The
application for rescission of judgment was only filed on 13 December
2019 about 4 years later without seeking condonation.
PROCEEDINGS
A
QUO
Before
the court a
quo
the appellants' case was that the court a
quo
was misled into granting the consent order and therefore granted the
order in error.
The
error was in the sense that the first respondent was not the owner of
the land in question, it having been acquired by the government in
2001 and following such acquisition, it was allocated to the
appellants.
Further,
the appellants have an interest in the land and had to be consulted
before the consent order was granted.
In
addition, the appellant contended that the consent order was
fraudulently obtained in the sense that the first respondent
fraudulently misrepresented to the second respondent and the court
that it had entered into agreements with them in terms of which the
occupants agreed to pay $4,00 per square metre of land occupied by
them. According to the appellants no such agreements were entered
into.
The
first respondent's case before the court a
quo
was that the application for rescission of judgment was filed out of
time without seeking condonation at the time they had become aware of
the consent order and had thus been complicit for years.
Further,
the first respondent took the view that the appellants did not have
locus
standi
to contest an agreement entered into in settlement of an application
for confirmation of compulsory acquisition of urban land and
compensation thereof. As they lay a claim through the government, the
appellants could not possibly be cited in proceedings brought in the
process of acquisition.
Regarding
the agreement relating to payment for the land occupied by the
appellants' members, the first respondent insisted that indeed it
had agreements with individual occupiers. The appellants had been in
illegal occupation of the land which was only lawfully acquired in
2014. The first respondent maintained that it had separate
arrangements with some of the occupiers who are paying for the land
directly to it.
FINDINGS
A
QUO
The
court a
quo
found that the delay of almost 5 years in bringing the application
was too long and as such condonation should have been sought giving
an acceptable explanation for failure to act expeditiously.
It
found further that there was need for relative certainty and finality
in litigation.
On
the aspect of the alleged fraudulent misrepresentation to obtain the
consent order, the court a
quo
found that none had been proved in court.
Regarding
the appellants' locus
standi,
it was the court a
quo's
finding that none of the appellants were privy to the agreement
entered into between the first and second respondents. As such, they
had no legal standing to seek a rescission of an agreement they were
not party to.
As
I have already stated, the court a
quo
upheld the points in
limine.
THE
APPEAL
The
appellants were aggrieved by the judgment of the court a
quo
and noted an appeal to this Court on four grounds of appeal. They
are:
1.
The learned judge a
quo
erred at law in failure to dispose of the first point in
limine
by the first respondent.
2.
The learned judge a
quo
erred at law in holding that the appellants lacked locus
standi
to apply for rescission of the judgment granted by the court on 13
January 2015.
3.
The honourable court erred at law, in so far as it may be taken to
have upheld the first point in
limine,
in holding that there was need for the appellants to apply for
condonation of the late noting of the application for rescission and
that the appellant failed to prove fraud.
4.
The honourable lower court erred at law in allowing a judgment
obtained through fraudulent means to stand.
The
grounds of appeal are inelegantly crafted, they are repetitive and
lack clarity and conciseness required by the rules.
Be
that as it may, only two issues for determination on appeal arise
from them. They are:
1.
Whether there was a need for the appellants to seek condonation
before filing the rescission of judgment application in terms of r449
of the High Court Rules.
2.
Whether the appellants had locus
standi.
I
propose to deal with the issues in turn.
WHETHER
CONDONATION SHOULD HAVE BEEN SOUGHT
Mr
Koto
for the appellants submitted that the judgment of the court a
quo
is not clear whether condonation was necessary or not.
He
submitted that r449 does not fix any time-frame for bringing the
application. To that extent there was no need to seek condonation as
it could not be said that the application was out of time.
Per
contra,
Mr Hashiti
for the first respondent submitted that the mere fact that r449
contains no time-frame for the filing of an application made under it
is not a licence for bringing the application anytime without seeking
condonation.
I
agree.
There
appears to exist a misconception among legal practitioners that r449
provides a gas station for all those who have failed to act timeously
to re-fuel and breath life into a cause that has run its course.
It
was never the intention of the framers of the rules that there must
exist a remedy for eternity. The policy of the law is that there
should be legal certainty and finality in the relationship of parties
after the lapse of a certain period of time. It is for that reason
that society is intolerant to stale claims generally as a result of
which a party that fails to enforce a right timeously or within a
reasonable time loses the right altogether. See Ndebele
v Ncube
1992 (1) ZLR 288 (S) at 290 C-E; John
Conrad Trust v The Federation of Kushanda Pre-Schools Trust & Ors
HH503/15
at p3 of the cyclostyled judgment.
It
ought to be appreciated that r449 provides for discretionary relief
to be granted or refused in the exercise of discretion by a judge or
court.
The
case of Grantully
(Pvt) Ltd & Anor v UDC Ltd
2000 (1) ZLR 361 (S) is authority for the proposition that the court
may, in the exercise of its discretion, dismiss an application made
in terms of r449 by reason of the inordinate delay in bringing it. At
pp365H-366D this Court said:
“Even
if the learned judge was wrong in deciding that the judgment granted
by MTAMBANENGWE J was not erroneously sought or obtained, I consider
that he was justified, in the exercise of his discretion, in
dismissing the application by reason of the inordinate lapse of time.
After all, r449 is 'a procedural step designed to correct
expeditiously an obviously wrong judgment or order': per ERASMUS J
in Bakoven's
case supra
at 471 E-F. see also Firestone
South Africa (Pty) Ltd v Genticuro AG supra
at 306 H.
In
First
National Bank of Southern Africa Ltd v Van Rensburg NO & Ors;
Inre First
National Bank of Southern Africa Ltd v Jurgens & Ors
1994 (1) SA 677 (T) ELOFF JP (with whom VAN DER WALT and PREISS JJ
concurred) stressed the important need to proceed rapidly in
applications of this nature. He said at 681E-G:
'It
is in the interest of justice that there should be relative certainty
and finality as soon as possible concerning the scope and effect of
orders of court.
Persons
affected by such orders should be entitled within a reasonable time
after the issue thereof to know that the last word has been spoken on
the subject.
The
power created by r42(1) is discretionary (see Tshivhase
Royal Council & Anor v Tshivhase & Anor, Tshivhase & Anor
v Tshivhase & Anor
1992 (4) SA 852(A) at 862 in
fine
– 863A) and it would be a proper exercise of that discretion to say
that, even if the appellant proved that r42(1) applied, it should not
be heard to complain after the lapse of a reasonable time. A
reasonable time in this case is substantially less than the three
years referred to.'
I
respectfully agree with these observations.” (The underlining is
for emphasis)
In
my view r449 is not an open cheque to bring an application for
rescission, even where it applies, at any time in the life of a
person.
It
is an expeditious remedy which should be deployed rapidly the moment
the party seeking to rely on it becomes aware of the existence of the
order.
Where,
for some reason, the application is not so made, an acceptable
explanation must be rendered for failure to act timeously. Such an
explanation can only be made in an application for condonation.
The
court a
quo
cannot be faulted for upholding that preliminary point.
WHETHER
THE APPELLANTS HAD LOCUS
STANDI
The
appellants sought rescission of judgment on the basis that it was
induced by fraud and that they should have been consulted before any
compromise was reached between the Government of Zimbabwe and the
first respondent.
Their
interest in the land, so they contended, lay in the sense that the
land had long been acquired by the State in 2001 and allocated to
them about 2004.
According
to the appellants the first respondent had lost any rights in the
land upon its acquisition in 2001, with the rights in the land having
been transferred to them by the Government.
They
asserted that the first respondent misled both the Government and the
court a
quo
into believing that there existed agreements between it and the
appellants when no such agreements were concluded.
A
distinction must be drawn between locus
standi
to seek a rescission of judgment in terms of r449 and the right to
overturn a deed of settlement concluded between the government of
Zimbabwe and the first respondent.
In
my view, the former is a procedural issue which can be determined on
the preliminary arguments made before the court a
quo.
On the other hand, the latter is a substantive issue going to the
merits of the case.
I
entertain no doubt that any party affected by the judgment of the
court even when not cited in the proceedings has locus
standi
to bring an application for the rescission of the judgment granted in
its absence.
That
is the furthest one can go.
As
to whether, having made the application for rescission of judgment,
the appellants made a case for such rescission, that is an issue
going to the merits of the application and not locus
standi
to litigate.
In
finding that the appellants had no locus
standi
to rescind the agreement the court a
quo
was deciding the merits of the case.
It
was unnecessary to do so having upheld the other points taken in
limine.
Our
finding in that regard however does not assist the appellants in this
appeal given that the upholding of the other points in
limine
by the court a
quo
cannot be faulted.
Regarding
the question of the acquisition of the land, this court settled the
issue of the legal effect of a s5 notice not pursued after being
gazetted in the case of TBIC
Investments (Pvt) Ltd & Anor v Mangenje & Ors
SC 13/18.
In
that case this Court stated that the effect of s16B(2)(a) of the
former Constitution providing that all identified agricultural land
vested in the state was to revive, resuscitate and validate the
acquisition of all identified agricultural land listed in the 7th
Schedule of the then Constitution.
At
p7 of the cyclostyled judgment BHUNU JA, writing for the court,
stated:
“The
language used in s16(2) of the former Constitution is clear and
unambiguous admitting no ambivalent interpretation. The only meaning
to be ascribed to the section is that once land is gazetted and
listed in Schedule 7 it automatically stands acquired by the State
with full title by operation of law. The mere fact that the notice
was at one time withdrawn or expired is irrelevant.”
That
the land in question was acquired by the State in 2001 does not
advance the appellants' appeal in any way. This is because the case
was determined on preliminary points raised by the first respondent
and not on the merits.
Even
the contestation of the agreements allegedly concluded by the first
respondent with individual occupiers did not yield any positive
results for the appellants.
The
first respondent presented evidence, in its opposing affidavit, which
the court a
quo
accepted, to the effect that it had concluded agreements with the
individual occupiers of the land for them to pay for it directly to
the first respondent.
This
may have annoyed the co-operative societies as they would have wanted
the money paid to them.
Their
annoyance however is of no moment in the administration of justice.
The
finding made by the court a
quo
that no fraud was proved was a factual one based on its acceptance
that indeed agreements had been made with the individual occupiers.
It
is well settled that an appellate court will only interfere with the
factual findings of the lower court where the decision is irrational
to the extent that no sensible court could have made it.
That
view was repeated in Shuro
v Chiuraise
SC20/19 at pp13-14 of the cyclostyled judgment where the following
passage appears:
“It
is an established tenet of our law that an appellate court should be
slow in interfering with the factual findings made by a lower court
and that this should happen only where it is clear that the decision
of the lower court is irrational, in the sense that no sensible
court, seized with the same facts, could have reached such a
conclusion…. In short, an appellate court can only interfere with
the findings of a lower tribunal where it is convinced that the
findings by the lower court are not supported by the evidence or are
otherwise irrational. See Hama
v National Railways of Zimbabwe
1996 (1) ZLR 664 (S).”
It
has not been shown that the findings of the court a
quo
are irrational or that they are not supported by evidence.
Quite
to the contrary, the court a
quo
considered the evidence and found no fraud as it certainly was not
there. No basis for interference has been established.
DISPOSITION
None
of the grounds of appeal in terms of which the appeal was motivated
have merit.
Clearly
this is a case of disgruntled illegal land occupiers who are
frustrated by the decision taken by the government to intervene and
restore order and sanity in the allocation of land for urban
settlement.
There
is no basis in law for reversing the lawful acquisition of land and
the agreement as to compensation which resulted in the consent order
sought to be impugned. The appeal is lacking in merit. There is no
reason why the costs should not follow the event.
Accordingly,
it be and is hereby ordered that the appeal is dismissed with costs.
BHUNU
JA: I
agree
KUDYA
AJA: I
agree
Koto
& Company,
for the appellants
Nyawo
Ruzive Legal Practice,
for the 1st respondent