Opposed
Application
MAWADZE
J:
This
is an application for summary judgment wherein the applicant seeks
the eviction of the respondent and all those claiming occupation
through him from house number 1131, Chipadze Township, Bindura and
costs of suit.
The
facts of this matter are largely common cause:
The
respondent was employed by the applicant. With the passage of time
the apparently benevolent employer, being the applicant decided to
sell some of the houses to some employees who were sitting tenants.
Some
sort of agreement was entered between the applicant represented by
its General Manager and Financial Director and the employees
represented by the workers committee members being the Chairman and
two committee members.
The
said agreement or memorandum is dated 1 December 2003 and is in the
following terms;
“MEMORANDUM
OF AGREEMENT BETWEEN ASHANTI GOLD FIEDS MANAGEMENT AND EMPLOYEES
Ashanti
Goldfield Zimbabwe agrees to dispose of its housing units situated in
Chiwaridzo, Grey Line Flats and Low Density to its employees who are
sitting tenants effective 01 December 2003. Find the agreed prices
attached.”
The
said agreement is attached to applicant's founding affidavit as
Annexure F1 to F4.
Attached
to this agreement is a schedule which has a list of the employees
involved, the house they occupy, the value of each house (in Zimbabwe
dollars) and the monthly instalments or repayment each employee was
to pay.
The
respondent occupied House No. 1131 which was then valued at
Zimbabwean dollars $1,200,00.00 and was to pay a monthly instalment
of Zimbabwe $20,000.
Pursuant
to the signing of the Memorandum of Agreement explained above and on
12 December 2003 applicant and the respondent entered into what is
called “Agreement of Lease” in which the applicant agreed to
lease House No. 1131 Chipadze, Bindura (the house) to the respondent
for a period of 60 months (5 years) commencing 1 January 2004 at the
monthly rentals of Zimbabwean $20,000.00 which was reviewable in
accordance with Annexure 'A' to that lease agreement (which
provided for revaluation of the property whenever employees are
awarded a salary increment).
These
monthly rentals were deducted from respondent's salary.
Clause
3 of the lease agreement provided for the option to buy the house. It
provides as follows;
“3.
OPTION TO PURCHASE
3.1.
The lessee shall have the option to purchase the property after sixty
months.
3.2.
The rentals paid by the Lessee to the Lessor in terms hereof shall be
taken and be deducted from the amount due in respect of the purchase
price determined in accordance with the provisions of Clause 3.1.
(above)”.
The
lease agreement is signed by a representative of the applicant and
the respondent.
From
other decided cases I have been referred to dealt with by this court
it is common cause that a number of employees entered into such a
lease agreement.
It
would appear to my mind that the dispute in this case and other cases
already dealt with by this court relates to interpretation to be
accorded to the “Memorandum of Agreement” dated 1 December 2003
and the lease agreement dated 12 December 2003 and the relationship
between the two documents.
I
shall revert to this point later.
After
the issuing of the Memorandum of Agreement on 1 December 2003 and
before the signing of the lease agreement on 12 December 2003, the
Workers Committee through what was now called the Housing Committee
issued out a Memorandum to all employees of the applicant copied to
the applicant.
This
Memorandum explained the Agreement reached on 1 December 2003. Most
importantly it invited the employees who were sitting tenants to take
up the offer to buy the houses.
The
relevant part of this Memorandum dated 2 December 2003 reads as
follows;
“Please
note that you have until February 29, 2004 to decide whether to
purchase the house you are living in or not, after which date the
offer will be extended to an employee who is willing to purchase the
property. The offer is now open, therefore employees who are ready
can see the Members to formalise the purchase.” (underling mine)
It
was after this invitation that respondent entered into the lease
agreement with the applicants on 12 December 2003.
In
addition to that the respondent has attached as Annexures A1 to A3
his payslips which reflect that money was deducted from his salary
which money is reflected as “rent to buy”.
The
payslips are as follows;
A1
dated 31 October 2004 has a deduction indicated as “Bal rent to buy
$52,755.00”
A2
dated 25 March 2004 has a deduction indicated as “Bal rent to but
$116,000.00”
A3
dated 25 June 2004 has a deduction reflected as “Bal rent to buy
$56,895.00”
The
respondent has also attached to his opposing affidavit a memorandum
from the applicant written by applicant's Financial Controller to
the respondent and copied to the Housing Committee dated 14 March
2004. Its contents are as follows;
“This
memo serves as an acknowledgement that we have received $1,100,000.00
(one million one hundred thousand dollars) as payment towards yours
house. The outstanding balance is now $60,000.00 (sixty thousand
dollars).”
It
is common cause that the respondent who was employed by the applicant
and was the sitting tenant in this house as at 1 December 2003 was
summarily dismissed on 15 July 2009 following a disciplinary hearing
held in terms of their Code of Conduct.
This
means that as at the date of his dismissal the respondent has been in
occupation of the house for a period of sixty seven (67) months,
which is in excess of the sixty months stipulated in the Lease
Agreement dated 12 December 2003.
After
the dismissal on 15 July 2009 the respondent on 4 September 2009 was
advised to vacate the house on the basis that the lease agreement
which entitled him to occupy the house had lapsed due to the
termination of respondent's contract of employment (see Annexure D
to applicant's founding affidavit).
The
respondent refused to vacate the house.
This
prompted the applicant to issue summons out of this court in
HC4395/09 (main matter) seeking the eviction of the respondent and
all those claiming occupation through him and costs of suit.
The
respondent entered on appearance to defend and filed a plea which
plea had been dismissed by applicant as not raising a good prima
facie defense, culminating in this application for summary judgment.
It
is useful as this stage to deal with the respondent's plea
(Annexure E to E4 to applicant's founding affidavit).
In
his plea defendant stated that prior to 1 December 2003 he was
occupying the house in issue on the basis of the contract of
employment and that since 1 December 2003 he was now occupying the
house on the basis of a sale agreement.
The
respondent said he has since fully paid for the house and awaits the
transfer of the house into his name.
It
is respondent's contention that the lease agreement dated 12
December 2003 was the vehicle through which respondent and other
employees purchased the houses as they paid for the houses through
the process of rent to buy with the monthly repayments deducted from
their salaries.
The
respondent, in his plea contends that he has now acquired rights and
interest in the same house hence applicant cannot evict him from the
house.
In
fact the respondent proceeded to file a counter claim seeking an
order to compel applicant to transfer its rights, interest and title
in the said house to the respondent within 30 days of the grant of
such an order and costs of suit.
The
question to be addressed in this matter is whether given the facts I
have painstakingly outlined, the applicant is entitled to this
extraordinary remedy in the form of a summary judgment?
An
application for summary judgment is made in terms of order 10 Rule 64
of the High Court Rules 1971 in circumstances were the applicant is
of the belief that the respondent has no bona fide defence to his
action.
The
respondent may oppose such an application in terms of Order 10 Rule
66(1)(b) of the Rules by showing that he has got a prima face defense
to this action.
The
law in relation to the requirements for granting a summary judgment
is clear.
The
old case of Roscoe v Stewart 1937 CPD 138 which is cited by the
celebrated authors Hebstein And Van Winsen – Civil Procedure Of The
Superior Courts In South Africa 2nd Edition page 225, makes the point
that summary judgment is a remedy designed to eliminate or dispose of
bogus defences and defences which are bad at law.
The
mischief which is curbed by this drastic remedy is to prevent
unscrupulous litigants seeking to delay a clear and just claim by
raising frivolous defences: see Nedlaw Investments & Trust
Corporation Limited v Zimbabwe Development Bank SC 5/2000 in which it
was clearly state that;
“…………
the
quintessence of the drastic remedy is that a plaintiff, whose belief
is that the defendant's defence is not bona fide and entered solely
for dilatory purposes should be granted immediate relief without the
expense and delay of a trial.”
In
order to successfully fend off an application for summary judgment a
defendant has to show that he has a good prima facie defense to the
action.
Our
courts have had the opportunity to define what constitutes a good
prima facie defense.
In
the case of Hales v Doverick Investments (Pvt) Ltd 1998 (2) ZLR 235
(H) of 238G–239A, MALABA J (as he then was) has this to say;
“…..
he must at least disclose his defense and material facts upon which
it is based with sufficient clarity and completeness to enable the
court to decide whether the affidavit discloses a bona fide defence
(Haharaj v Barclays National Bank Ltd 1976 (1) SA 418 at 426 D………..
the statement of material facts (must) be sufficiently full to
persuade the court that what the defendant has alleged, if proved at
trial, will constitute a defense to the plaintiff's claim.”
Having
laid out these principals of law applicable to this case I now
proceeded to apply these principles to the facts of this case.
The
applicant believes that the appearance to defend entered by the
respondent and his subsequent plea do not disclose a bone fide
defense but was solely entered for purposes of delay.
In
argument applicant submitted that there was never an agreement of
sale between the applicant and the respondent.
It
is applicant's view that the memorandum of agreement dated 7
December 2003 cannot be construed as an agreement of sale and
reliance was placed on the case of Ashanti Goldfields Zimbabwe Ltd v
Clement Kovi SC7/09 in which CHEDA JA had to interpret this same
document and clearly stated that it cannot be said to be an agreement
of sale.
Similarly
the applicant submitted that the lease agreement dated 12 December
2003 cannot be construed also on an agreement of sale as it merely
provides in Clause 3 that an option to purchase this property would
be offered to the respondent after sixty months.
The
applicant's case therefore is that the agreement of lease having
been terminated after the respondent left the employ of the
applicant, the respondent has no right whatsoever to remain in the
house as the applicant remains the registered owner of the house.
While
it is correct that the pronouncements of the Supreme Court are
binding to this court I believe the case in which applicant seems to
have reposed all his faith in of Ashanti Goldfields Zimbabwe Ltd vs
Kovi supra can be distinguished from the facts of this case.
In
fact MAKARAU JP (as she then was) in a number of cases involving the
applicant and its employees in Antonio v Ashanti Goldfields Zimbabwe
& Anor; Mujati v Ashanti Golfields Ltd & Anor; Ashanti
Goldfieds Zimbabwe Ltd v Bonde 2009 (2) ZLR 371 (H) at 285F–G
distinguished the Ashanti Goldfields Zimbabwe Ltd vs Kovi case supra,
as follows;
“I
am bound by all the decisions of the Supreme Court on points of law.
Where however, the facts that were placed before the Supreme Court
are different from the facts before me, I believe I am at liberty to
interpret their facts in light of the law handed down by the Supreme
Court. The doctrine of stare decisis applies to points of law and not
to factual disputes”.
A
number of my brother and sister judges who have been seized with
matters involving the applicant and its employees in relation to
these houses have adopted the approach enunciated by MAKARAU JP (as
she then was) in arriving at a different conclusions on the facts
presented in each particular case despite the sentiments expressed in
Ashanti Goldfileds Zimbabwe Ltd v Kovi supra in relation to the
Memorandum of Agreement dated 7 December 2003 and the Lease Agreement
dated 12 December 2003.
Few
examples are sufficient to illustrate this point.
In
the case of Ashanti Goldfields Zimbabwe Ltd v Jhafati Mdala HC5664/07
CHATUKUTA J after a protracted trial did find that, on the facts
presented before her, inclusive of the Memorandum of Agreement dated
7 December 2003 and the Lease Agreement dated 12 December 2003,
indeed Ashanti Goldfields Zimbabwe Ltd had sold the house to the
defendant.
In
the case of Ashanti Goldfields Zimbabwe Limited t/a Freda Rebecca
Mine v Shingirai Matimura & Ors HH54/11 GOWORA J (as she then
was) declined to grant a summary judgment wherein the applicant had
sought the eviction of the respondents, whilst respondents had
advanced a similar argument like in the instant case. Indeed the
Memorandum of Agreement dated 7 December 2003 and the Lease Agreement
similar to one dated 12 December 2003 were some of the documents in
issue in that case.
Lastly
in the case of Govha v Ashanti Goldfields Zimbabwe t/a Freda Rebecca
Mine & Anor HH48/12 and in Ashanti Goldfields Zimbabwe Limited
t/a Freda Rebecca Mine v Ephraim Pfidze HH347/12 MATHONSI J in both
cases faced with facts almost on all fours with the present case
declined to grant a summary judgment in both cases for the eviction
of the respondents (employees).
It
is clear from the facts of this case that the respondent has raised a
good prima facie defense to the action for eviction.
The
Memorandum of Agreement dated 1 December 2003 which I have alluded to
in my introductory remarks shows that the respondent was one of the
sitting tenants who were eligible to purchase the house in issue. The
respondent contends that he acted in terms of the Memorandum dated 2
December 2013 which invited all employees who were sitting tenants to
exercise the offer to purchase the houses as at 29 February 2004.
In
fact the respondent argues that he proceeded, in exercising this
option, to enter into a lease agreement dated 12 December 2003 which
he described as the vehicle with which the employees were to purchase
the houses, as they all started to pay what was called “rent to
buy”.
Indeed
respondent attached some of his payslips for 2004 which show that
monthly deductions in various amounts were made as “rent to buy”.
In
addition to that the respondent has included a memorandum from the
applicant addressed to him acknowledging receipt of $1,100,000.00
towards the purchase of house and indicating that outstanding balance
as $60,000.00 only.
As
already stated the respondent was in occupation of this house (as a
sitting tenant) for a period of in excess of 60 months (Clause 3 of
the lease agreement) before he was dismissed from work and the lease
agreement purportedly terminated.
Considering
all these the factors placed before the court by the respondent, one
cannot say with certainty at this stage that respondent did not
exercise the option to purchase the house in issue.
The
applicant has not been able to meaningfully explain why after a
period of 60 months and in view of the proof of monthly deductions
and confirmation by applicant of such payment as part of the purchase
price in March 2004, applicant is still of the view that respondent
did not purchase the house.
I
am satisfied that the respondent has presented an arguable case.
It
cannot be said that defence raised by the respondent is simply raised
for purposes of delaying the inevitable. It would therefore be unfair
and improper and this stage to close the door to the defendant and
deny him the opportunity to defend the claim.
On
the facts before me it cannot be said that the applicant's case is
unanswerable and unassailable.
The
parties should be allowed to have their day in court and present
evidence on whether respondent exercised the right to purchase the
house in issue and paid the full purchase price.
The
claim for eviction at this stage is premature.
The
application for summary judgment is therefore without merit. In the
result, the summary judgment application is dismissed with costs.
Magwaliba
& Kwirira, applicant's legal practitioners
Manyurureni
& Company, respondent's legal practitioners