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HH179-10 - TM SUPERMARKETS (PVT) LTD vs CHADCOMBE PROPERTIES (PVT) LTD and ROCKMOUNT TRADING (PVT) LTD

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Procedural Law-viz provisional order re urgent chamber application.

Procedural Law-viz interim interdict.
Procedural Law-viz consent order.
Procedural Law-viz provisional order re determination of the "Final Order" of an interim interdict iro conversion of an urgent chamber application into an ordinary application.
Law of Property-viz lease agreement re eviction.
Law of Property-viz agreement of lease re eviction iro failure to pay rent.
Law of Property-viz lease agreement re termination iro breach of contract.
Procedural Law-viz appeal re eviction order.
Procedural Law-viz disputes of fact re material disputes of fact.
Procedural Law-viz dispute of facts re triable issues.
Procedural Law-viz conflict of facts re application procedure.
Procedural Law-viz disputes of fact re robust approach by the court.
Procedural Law-viz application procedure conflict of facts.
Procedural Law-viz action procedure re dispute of facts.
Procedural Law-viz rules of evidence re documentary evidence.

Final Orders re: Nature, Amendment, Variation, Rescission iro Consent Papers, Consent Orders and Consent to Judgment

On 23 March 2010 the applicant filed an urgent application in this court for a provisional order meant to entitle it to the following relief -

“Terms of Final Order Sought

That you show cause to this Honourable Court why a final order should not be made in the following terms:-

1. The first respondent be and is hereby ordered to give the premises known as Stand 24A Chadcombe, Harare to the applicant, unless and until the Supreme Court orders otherwise.

2. The first respondent be and is hereby ordered to pay costs of suit on a Legal Practitioner and Client scale.

Interim Relief Granted

Pending the confirmation or discharge of this Provisional Order the applicant is granted the following interim relief:-

1. The second respondent and all those acting for him or claiming occupation or use through him be and are hereby interdicted from plying their business from premises known as Stand 24A Chadcombe, Harare.”

The urgent application was placed before PATEL J, and, on 29 March 2010, the parties consented to the following order -

“It is ordered by consent that:-

1. The matter shall proceed as an ordinary application in terms of the Rules subject to the following:-

2. Rockmount Trading (Private) Limited be and is hereby substituted as the second respondent in this matter.

3.The applicant shall file its answering affidavit by the 6th day of April 2010.

4. The second respondent shall file any further notice of opposition by the 6th day of April 2010.

5. The applicant shall file Heads of Argument by the 8th day of April 2010.

6. The applicant shall index and paginate the record by the 13th day of April 2010.

7.Thereafter, the Registrar is directed to forthwith set the matter down on the opposed roll.

8. The costs of the present application shall be costs in the cause.”

This application has now been placed before me in terms of the above order. The parties have since complied with the consent order.

With the urgent application having been turned into an ordinary application, it means the interim relief originally sought now falls away and the application is now based on the final order, namely an order “giving the premises to the applicant unless and until the Supreme Court orders otherwise; and an order for the respondents to pay costs of suit on a Legal Practitioner and Client Scale.”

Lease Agreements re: Termination, Notice of Termination & the Exceptio Doli Mali iro Lessee Eviction & Incidental Possessors

For the relief sought to be properly appreciated, it will be necessary to give brief background information to this application.

On 30 January 2007 the applicant and the first respondent entered into a lease agreement in respect of the first respondents' premises namely Stand 24A Chadcombe, Harare...,. The lease agreement expires on 14 April 2012 and is, subject to agreement, renewable for three further periods of five years each.

On 3 June 2009 the first respondent alleged that the applicant had failed to pay rent since January 2009 and was, therefore, in breach of clause 5 of the lease agreement. On 30 July 2009 the first respondent then obtained an order from the Provincial Magistrates Court, Harare for the eviction of the applicant. The applicant appealed to this court against its eviction. On 9 March, 2010 this court set aside the eviction order of the lower court.

The first respondent alleges that after successfully evicting the applicant from the premises it entered into a new lease agreement with the second respondent who then took occupation of the premises in December 2009. The applicant, however, disputes the details surrounding the new arrangements, particularly the date of occupation.

On 10 March 2010 the respondent filed an appeal in the Supreme Court against the order of this court, which order set aside the lower court's decision. However, when this court set aside the decision of the lower court, the applicant had already been evicted from the premises. On 24 August 2009 this court had already dismissed the applicant's application for stay of execution. Thus, the appeal now pending in the Supreme Court was filed after the eviction of the applicant from the premises and hence the request in this application for the court to order that the premises “be given to the applicant unless and until the Supreme Court orders otherwise.”

This application..., is for this court to order the first respondent “to give the premises” to the applicant unless and until the Supreme Court orders otherwise.

Disputes of Fact or Conflict of Facts re: Approach, Factual, Non-Factual, Questions of Law and Material Resolutions

A perusal of all the papers before me, and an analysis of the submissions from all parties, leads me to the conclusion that this matter cannot be resolved on the basis of papers filed of record without the need for viva voce evidence. I find myself unable to deny the second respondent's submission that there are triable issues in this matter and, therefore, the dispute cannot be resolved through the route of an application.

The second respondent correctly lists the material disputes of facts as -

“> The date on which the second respondent took occupation of the premises in dispute;

Ø The bona fides of the second respondent;

Ø The extent of repairs and renovations made by the second respondent;

Ø The equipment left by the applicant at the premises in dispute; and the ownership of the said equipment.”

Whereas the second respondent avers that it took occupation of the premises in December 2009 on the basis of a lease agreement signed on 15 November 2009, the applicant states that the second respondent only began operations at the premises after being served with this application on 24 March 2010. Furthermore, whilst the second respondent argues that the applicant knew, as from 4 February 2010, of all developments at the premises, the applicant, on its part, states that the second respondent took occupation of the premises being fully aware that the High Court had already set aside the eviction order of the lower court. The first respondent also states that it informed the applicant of the new lease arrangements with the second respondent and hence the correspondence between the parties' legal practitioners regarding the property of the applicant. All in all, the applicant denies that the second respondent was an innocent actor in the developments that led to it taking occupation of the premises.

Given the above disputes of facts, I do not think that this court is in position to take a robust view in resolving the dispute. The material disputes of fact cited above, cannot, in my view, be resolved through an application. There would, therefore, be need for viva voce evidence in order for the dispute to be resolved.

This finding means that the matter ought to have been brought by way of action rather than application.

Cause of Action re: Form, Manner and Nature of Proceedings iro Approach to Application, Motion and Action Proceedings

This application was filed on 23 March 2010 as an urgent application. The papers before me show that, as at that date the applicant was already aware of both respondents' positions regarding the facts in dispute. This is confirmed in the correspondence exchanged between the parties' legal practitioners. Issues relating to ownership of property and removal of property were discussed in the correspondence. It, therefore, has to be ascertained, through viva voce evidence, whether or not the first respondent and the applicant were, indeed, together, preparing for the second respondent's quiet possession of the premises.

As already indicated, I believe that, in casu, the applicant was aware that serious disputes of fact would arise or had already arisen. He should therefore have avoided the application route. In Masukusa v National Foods Ltd & Anor ZLR 1983 (1) 232 McNALLY J..., said -

“Where the facts are in dispute, the court has a discretion as to whether to dismiss the application or allow the matter to go to evidence. The first course is appropriate where an applicant should, when launching his application, have realized that a serious dispute of fact was inevitable.”

(See also Tamarillo (Pty) Ltd v BN Aitken (Pty) Ltd (1) SA 398 (AD) and Adbro Investments Company Limited v Minister of the Interior 1956 (3) SA 350 (AD).

My finding in casu, therefore, is that the potential disputes were not only foreseen, but were already known, by the time this application was launched. I would, accordingly, in the use of my discretion, dismiss this application. I believe the finding that a wrong procedure has been used can, in certain circumstances, be so fatal as to mean that a matter is not properly before the court. Accordingly, in such a case, the court is disabled from proceeding to consider the merits of the case. That can only be done after a resolution of the disputes of facts. There is, therefore, merit in the submission that this matter should have been brought by way of action....,.

The application is dismissed with costs.

Costs re: Punitive Order of Costs or Punitive Costs


On the issue of costs, I believe that a genuine legal dispute exists between the parties, and, to that extent, I am not persuaded to award punitive costs. However, in a genuine bid to quickly resolve the dispute fatal procedural errors were made. Although the errors should not have been made, I do not believe that punitive costs are warranted.

MTSHIYA J:  On 23 March 2010 the applicant filed an urgent application in this court for a provisional order meant to entitle it to the following relief:

            “Terms of Final Order Sought

That you show cause to this Honourable Court why a final order should not be made in the following terms:-    

 

1.                  The first respondent be and is hereby ordered to give the premises know as Stand 24A Chadcombe, Harare to the applicant, unless and until the Supreme Court orders otherwise.

 

2.                  The first respondent be and is hereby ordered to pay costs of suit on a Legal Practitioner and Client scale.

 

Interim Relief Granted

 

Pending the confirmation or discharge of this Provisional Order the applicant is granted the following interim relief:-

 

1.                  The second respondent and all those acting for him or claiming occupation or use through him be and are hereby interdicted from plying their business from premises known as Stand 24A Chadcombe, Harare”.

 

The urgent application was placed before PATEL J, and on 29 March 2010 the parties consented to the following order:-

“It is ordered by consent that:-

1.                  The matter shall proceed as an ordinary application in terms of the Rules subject to the following:-

2.                  Rockmount Trading (Private) Limited be and is hereby substituted as the second respondent in this matter.

3.                  The applicant shall file its answering affidavit by the 6th day of April 2010.

4.                  The second respondent shall file any further notice of opposition by the 6th day of April 2010.

5.                  The applicant shall file Heads of Argument by the 8th day of April 2010.

6.                  The respondents shall file Heads of Argument by the 12th day of April 2010.

7.                  The applicant shall index and paginate the record by the 13th day of April 2010.

8.                  Thereafter the Registrar is directed to forthwith set the matter down on the opposed roll.

9.                  The costs of the present application shall be costs in the cause”.

This application has now been placed before me in terms of the above order.  The

parties have since complied with the consent order.

With the urgent application having been turned into an ordinary application, it means the interim relief originally sought now falls away and the application is now based on the final order, namely an order 'giving the premises to the applicant unless and until the Supreme Court orders otherwise; and an order for the respondents to pay costs of suit on a Legal Practitioner and Client Scale' 

            For the relief sought to be properly appreciated, it will be necessary to give a brief background information to this application.

            On 30 January 2007 the applicant and the first respondent entered into a lease agreement in respect of the first respondents' premises namely Stand 24A Chadcombe, Harare (the premises). The lease agreement expires on 14 April 2012 and is, subject to agreement, renewable for three further periods of 5 years each.

            On 3 June 2009 the first respondent alleged that the applicant had failed to pay rent since January 2009 and was therefore in breach of clause 5 of the lease agreement. On 30 July 2009 the first respondent then obtained an order from the Provincial Magistrates Court, Harare for the eviction of the applicant. The applicant appealed to this court against its eviction. On 9 March, 2010 this court set aside the eviction order of the lower court.

On 10 March 2010 the respondent filed an appeal in the Supreme Court against the order of this court, which order set aside the lower court's decision. However, when this court set aside the decision of the lower court, the applicant had already been evicted from the premises. On 24 August 2009 this court had already dismissed the applicant's application for stay of execution. Thus the appeal now pending in the Supreme Court was filed after the eviction of the applicant from the premises and hence the request in this application for the court to order that the premises “be given to the applicant unless and until the Supreme Court orders otherwise”

            The first respondent alleges that after successfully evicting the applicant from the premises it entered into a new lease agreement with the second respondent who then took occupation of the premises in December 2009.  The applicant, however, disputes the details surrounding the new arrangements, particularly the date of occupation.

            This application, as already stated, is for this court to order the first respondent “to give the premises” to the applicant unless and until the Supreme Court orders otherwise.

            A perusal of all the papers before me and an analysis of the submissions from all parties, leads me to the conclusion that this matter cannot be resolved on the basis of papers filed of record without the need for viva voce evidence. I find myself unable to deny the second respondent's submission that there are triable issues in this matter and therefore the dispute cannot be resolved through the route of an application.

            The second respondents correctly lists the material disputes of facts as:

            “>        the date on which the second respondent took occupation of the premises in

dispute;

 

            >          the bona fides of the second respondent;

            >          the extent of repairs and renovations made by the second respondent;

>          the equipment left by the applicant at the premises in dispute; and   

the ownership of the said equipment”    

   

Whereas the second respondent avers that it took occupation of the premises in December 2009 on the basis of a lease agreement signed on 15 November 2009, the applicant states that the second respondent only began operations at the premises after being served with this application on 24 March 2010.  Furthermore whilst the second respondent argues that the applicant knew, as from 4 February 2010, of all developments at the premises, the applicant on its part states that the second respondent took occupation of the premises being fully aware that the High Court had already set aside the eviction order of the lower court. The first respondent also states that it informed the applicant of the new lease arrangements with the second respondent and hence the correspondence between the parties' legal practitioners regarding the property of the applicant. All in all, the applicant denies that the second respondent was an innocent actor in the developments that led to it taking occupation of the premises.

Given the above disputes of facts, I do not think that this court is in position to take a robust view in resolving the dispute. The material disputes of fact cited above, cannot, in my view, be resolved through an application. There would, therefore, be need for viva voce evidence in order for the dispute to be resolved. This finding means that the matter ought to have been brought by way of action rather than application.

This application was filed on 23 March 2010 as an urgent application. The papers before me show that as at that date the applicant was already aware of both respondents' positions regarding the facts in dispute. This is confirmed in the correspondence exchanged between the parties' legal practitioners. Issues relating to ownership of property and removal of property were discussed in the correspondence. It therefore has to be ascertained through viva voce evidence whether or not the first respondent and the applicant were indeed together  preparing for the second respondent's quiet possession of the premises.

As already indicated I believe that in casu the applicant was aware that serious disputes of fact would arise or had already arisen. He should therefore have avoided the application route. In Masukusa v National Foods Ltd & Anor ZLR 1983(1) 232 McNALLY J, as he then was, said:

“Where the facts are in dispute, the court has a discretion as to whether to dismiss the application or allow the matter to go to evidence. The first course is appropriate where an applicant should, when launching his application, have realized that a serious dispute of fact was inevitable”.  

 

            (See also Tamarillo (Pty) Ltd v BN Aitken (Pty) Ltd (1) SA 398 (AD) and Adbro Investments Company Limited v Minister of the Interior 1956(3) SA 350 (AD).

            My finding in casu therefore is that the potential disputes were not only foreseen but were already known by the time this application was launched. I would accordingly, in the use of my discretion, dismiss this application. I believe the finding that a wrong procedure has been used can, in certain circumstances, be so fatal as to mean that a matter is not properly before the court. Accordingly in such a case the court is disabled from proceeding to consider the merits of the case. That can only be done after a resolution of the disputes of facts. There is therefore merit in the submission that this matter should have been brought by way of action. 

            On the issue of costs, I believe that a genuine legal dispute exists between the parties and to that extent I am not persuaded to award punitive costs. However, in a genuine bid to quickly resolve the dispute fatal procedural errors were made. Although the errors should not have been made, I do not believe that punitive costs are warranted.

            The application is dismissed with costs.

 

 

 

 

Honey & Blanckenberg, applicant's legal practitioners

Byron Venturas & Samkange, first respondent's legal practitioners

Chihambakwe, Mutizwa & Partners, second respondent's legal practitioners
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