Prinzone CC v Ahmed (26340/09) [2009] ZAGPPHC 132 (8 October 2009)

80 Reportability
Land and Property Law

Brief Summary

Lease — Summary judgment — Ejectment — Plaintiff sought summary judgment for ejectment based on cancellation of lease agreement due to non-payment of rent — Defendant failed to provide sufficient evidence of a bona fide defence, merely alleging payments without proof — Court held that the defendant's vague assertions did not establish a valid defence against the claim for ejectment, thus granting summary judgment in favour of the plaintiff.

Comprehensive Summary

Summary of Judgment


1. Introduction


The proceedings were an application for summary judgment in the North Gauteng High Court, Pretoria. The plaintiff, Prinzone CC, sought summary judgment against the defendant, Liaquat Alli Ahmed, for an order of ejectment/eviction from leased commercial premises.


The matter arose from action proceedings in which the plaintiff had advanced multiple claims. However, the plaintiff pursued summary judgment only in respect of its claim for ejectment following the alleged cancellation of a written lease agreement concluded between the parties on 7 June 1997. The plaintiff expressly conceded that the defendant should be granted leave to defend the other claims, and summary judgment was not sought in relation to them.


The procedural history reflected repeated delays associated with the defendant’s failure to comply with time limits and attend court. The defendant initially failed to deliver an answering affidavit, leading to a postponement on 28 July 2009 to permit the filing of an answering affidavit and a formal application for condonation. On 14 August 2009 the defendant sought a further postponement due to an outstanding replying affidavit in the condonation application, and the matter was postponed to 6 October 2009 with filing directives; the defendant filed the replying affidavit by 21 August 2009. On 6 October 2009 the defendant did not appear and sought a postponement through a representative on the basis of illness; the postponement was refused for reasons given separately, and the summary judgment application proceeded.


The subject matter of the dispute was whether the defendant had defaulted on rental payments under the lease, whether the plaintiff was entitled to cancel the lease on that basis, and whether the plaintiff was consequently entitled to an order ejecting the defendant from the premises.


2. Material Facts


It was common cause, or treated by the court as established for purposes of the application, that the parties concluded a written lease agreement in respect of the premises described as portion 4a, Erf 36, Pretoria, known as 3A Prinsloo Street, Pretoria.


The plaintiff’s claim proceeded on the basis that the lease entitled the lessor to cancel if the lessee failed to pay rental, that the defendant failed to pay rental as required, and that the plaintiff cancelled the lease by notifying the defendant on 8 May 2006.


A key factual feature relied upon by the court was that the lease agreement required rental payments to be made into the plaintiff’s bank account at a specified branch, and the defendant did not allege that this clause was amended in compliance with the agreement’s non-variation clause.


The defendant’s asserted factual position was that he had paid all rentals due, that payments were made regularly and punctually, that the plaintiff did not provide receipts, and that all payments were made in cash. The court characterised these allegations as bald and vague, with no attempt at providing proof of payment or a reconciliation of amounts.


The court relied on an additional undisputed factual component arising from the defendant’s own version: the defendant stated that on 9 May 2006, after receiving the cancellation notice, he signed a document recording that he would pay R21 000, which included R11 000 for arrear rental, and in which he admitted that even after that payment he would still owe R8 024. The court noted that this payment was reflected in the plaintiff’s bank statement. These facts were treated as inconsistent with the defendant’s general denial of rental default.


While there was also a procedural dispute about postponement on medical grounds on 6 October 2009, the court dealt with that issue separately and proceeded to decide the summary judgment application.


3. Legal Issues


The central legal question was whether the defendant had satisfied the requirements to resist summary judgment by disclosing a bona fide defence to the plaintiff’s ejectment claim, as contemplated by Uniform Rule 32(3)(b).


This required determination of whether the defendant’s asserted defence, namely payment of all rentals (and thus absence of breach entitling cancellation), was set out with sufficient particularity and credibility to constitute a defence in law if proved at trial. The dispute accordingly concerned the application of legal standards for summary judgment to the facts alleged on affidavit, including an assessment of the sufficiency, plausibility, and bona fides of the defence disclosed.


A further issue arose regarding the plaintiff’s request for a punitive costs order on the scale as between attorney and client, namely whether there was a basis for such costs either in the agreement or on the facts presented.


4. Court’s Reasoning


The court applied the established principles governing summary judgment. It emphasised that to avoid summary judgment a defendant must, by affidavit, satisfy the court that a bona fide defence exists and must fully disclose the nature and grounds of that defence and the material facts relied upon. The court described the standard as requiring facts which, if proved at trial, would answer the claim, and that the defence must be valid in law and presented in a manner not inherently or seriously unconvincing.


In explaining what “full disclosure” entails, the court accepted that allegations that are needlessly bald, vague, or sketchy may count against a defendant in assessing the bona fides of the alleged defence. The court also noted that, in this matter, the plaintiff had been afforded an opportunity in the condonation-related exchanges to rebut the defendant’s payment allegations, which assisted the plaintiff on the summary judgment enquiry.


The defendant’s defence was evaluated against the documentary framework of the lease and the undisputed admissions. The court contrasted the defendant’s claim of cash payments and absence of receipts with the express lease term requiring payments to be made into the plaintiff’s bank account, and it noted that the defendant did not allege a valid contractual amendment to that arrangement under the non-variation clause.


The court then treated the defendant’s own recorded undertaking and admission of arrears on 9 May 2006 as decisive. The court regarded the defendant’s acknowledgment that he was in arrears (including the admission that a balance would remain owing after payment) as incompatible with his overarching claim that he had paid all rentals and had never been in default. Given these undisputed facts, the court concluded that the defendant had no defence to the ejectment claim and that his denial of default was not bona fide.


On costs, although the plaintiff sought attorney-and-client costs, the court declined to grant such an order because no reasons were advanced to justify a punitive scale, and the lease agreement did not provide for attorney-and-own-client (or similarly punitive) costs. The court nevertheless granted the plaintiff the costs of the application, including reserved costs relating to the postponement of 14 August 2009.


5. Outcome and Relief


The court granted the defendant leave to defend the claims that were not pursued on summary judgment, specifically those identified in prayers 1, 3, 4, 5, 6, and 7 of the particulars of claim dated 4 May 2009.


The court granted summary judgment in favour of the plaintiff for ejectment. The defendant and all persons occupying under or through him were ordered to vacate the premises and return the keys to the plaintiff. The sheriff was authorised and directed to take the necessary steps to ensure the premises were vacated and restored to the plaintiff if the defendant failed to comply within 14 days.


The defendant was ordered to pay the costs of the application, including the costs of the postponement on 14 August 2009. The request for attorney-and-client costs was not granted.


Cases Cited


Breitenbach v Fiat (SA) (Edms) Bpk 1976 (2) SA 226 (T).


South African Breweries Ltd v Rygerpark Props (Pty) Ltd 1992 (3) SA 829 (W).


Legislation Cited


No legislation was cited in the judgment.


Rules of Court Cited


Uniform Rule 32(3)(b).


Held


The court held that the defendant failed to disclose a bona fide defence to the plaintiff’s ejectment claim as required under the summary judgment procedure. The defendant’s broad assertion that all rentals had been paid was found to be inadequately particularised and was contradicted by undisputed facts, including the lease’s requirement of bank payment and the defendant’s admitted arrears and payment arrangement recorded shortly after the cancellation notice.


Accordingly, the court held that the plaintiff was entitled to summary judgment for ejectment and to costs on the ordinary scale, including reserved postponement costs, but not to punitive attorney-and-client costs.


LEGAL PRINCIPLES


The judgment applied the principle that a defendant resisting summary judgment must, by affidavit, fully disclose the nature and grounds of the defence and the material facts relied upon, and must satisfy the court that the defence is bona fide and legally sustainable if proved at trial.


It further applied the principle that allegations that are bald, vague, or sketchy, particularly where they do not engage with the contractual documentation or provide supporting detail capable of being tested at trial, may justify the conclusion that the alleged defence is not bona fide.


The judgment also reflected that where undisputed documentary features of the contract and the defendant’s own admissions contradict the alleged defence, the court may conclude that no genuine triable issue exists and may grant summary judgment, including consequential relief such as ejectment and ordinary costs.

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[2009] ZAGPPHC 132
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Prinzone CC v Ahmed (26340/09) [2009] ZAGPPHC 132 (8 October 2009)

IN THE HIGH COURT
OF SOUTH AFRICA
(NORTH GAUTENG HIGH COURT,
PRETORIA)
Date: 2009-10-08
Case Number: 26340/09
In the matter between:
PRINZONE CC
Plaintiff
and
LIAQUAT ALLI AHMED
Defendant
JUDGMENT
SOUTHWOOD
J
[1] The plaintiff applies for summary
judgment against the defendant for an order ejecting him from portion
4a, Erf 36, Pretoria,
known as 3A, Prinsloo Street, Pretoria (‘the
premises’). The plaintiff’s claim is based on the
cancellation
of a written lease agreement entered into by the parties
on 7 June 1997. The plaintiff has other claims against the defendant
but does not seek summary judgment in respect of those claims. It
concedes that the defendant should be granted leave to defend
those
claims.
[2] The defendant failed to deliver an
answering affidavit before this matter was heard for the first time
on 28 July 2009. On
that day the court postponed the application to
14 August 2009 to enable the defendant to file an answering affidavit
and formally
apply for condonation for the failure to file his
answering affidavit timeously. The court placed the parties on terms
regarding
the filing of the affidavits. When the matter came before
court on 14 August 2009 the defendant had not filed his replying
affidavit
in the condonation application and he sought another
postponement to enable him to do so. The court postponed the
application
again to 6 October 2009 and ordered the defendant to file
his replying affidavit not later than 21 August 2009, which he did.
The costs of that postponement were reserved.
[3] On 6 October 2009 the defendant
failed to appear. Instead, his nephew, Mr Hamied Valjee, requested
the court to postpone the
hearing because his uncle was indisposed.
He handed the court a doctor’s certificate dated 3 October 2009
which states cryptically
that the defendant is suffering from an ear
infection with vertigo and nausea and indicates either that he has
had or should have
a stress ECG. The plaintiff opposed the
application and handed in an affidavit by Dr Hassim, its sole member,
who investigated
the defendant’s condition on 5 October 2009.
He records that the defendant’s wife was not aware that the
defendant
had been admitted to a hospital and only knew that he had
been to a doctor but had been to the shop that day, 5 October 2009.
For reasons given in a separate judgment the application for
postponement was refused. The refusal was based primarily on the
history of the matter and the defendant’s unsatisfactory
explanation.
[4] The
plaintiff’s case is that it entered into a written agreement of
lease in respect of the premises with the defendant;
that in terms
of that agreement the lessor was entitled to cancel the agreement if
the lessee failed to pay the rental; that
the defendant failed to
pay the rental and that on 8 May 2006 the plaintiff notified the
defendant that the lease was cancelled.
[5] To avoid summary judgment the
defendant must satisfy the court by means of his affidavit that he
has a
bona fide
defence
to the claim for ejectment and his affidavit must disclose fully the
nature and grounds of the defence and the material
facts relied upon
therefor – see Rule 32(3)(b). This means that the defendant
must set out in his affidavit, facts, which
if proved at the trial,
will constitute an answer to the claim and that he must show that
this is a
bona fide
defence.
This requires that the defendant must swear to a defence, valid in
law, in a manner which is not inherently and seriously
unconvincing –
see
Breitenbach v Fiat
(SA) (Edms) Bpk
1976
(2) SA 226
(T)
at
227G-228B. With regard to the requirement that the defendant ‘fully’
disclose the nature and grounds of his defence
and the material facts
relied upon therefor, the statement of material facts must be
sufficiently full to persuade the court that
what the defendant has
alleged, if it is proved at the trial, will constitute a defence to
the plaintiff’s claim. If the
defence is averred in a manner
which appears in all the circumstances to be needlessly bald, vague
and sketchy, that will constitute
material for the court to consider
in relation to the requirement of
bona
fides
– see
Breitenbach v Fiat (SA)
(Edms) Bpk supra
at
228B-F.
[6] In the present case the plaintiff
is assisted by the fact that in the application for condonation it
has had the opportunity
to rebut the defendant’s allegations
that he paid all the rentals – see
South
African Breweries Ltd v Rygerpark Props (Pty) Ltd
1992
(3) SA 829
(W)
at 833B-D.
[7] The
defendant’s defence is that he paid all the rentals owing to
the plaintiff in terms of the lease agreement and accordingly
that he
had not failed to pay any rentals which would entitle the plaintiff
to cancel the agreement. This is alleged in bald and
vague terms
with no attempt to produce any proof of payment or reconciliation of
all amounts owing and paid. The defendant alleges
that he regularly
and punctually paid the rentals to the plaintiff which never provided
him with any receipts. According to the
defendant all the payments
made to the plaintiff were in cash.
[8] These allegations must be assessed
in the light of the agreement which provides that the defendant has
to pay the rentals into
the plaintiff’s bank account at the
Struben Street branch (the account number and branch code being
recorded in the agreement)
and that the defendant does not allege
that the clause was amended in accordance with the standard
non-variation clause. It must
also be considered in the light of the
defendant’s own statement that on 9 May 2006, after the
plaintiff delivered the notice
of cancellation to the defendant, the
defendant signed a document in which he stated that he would pay R21
000 to the plaintiff,
R11 000 in respect of arrear rental, and
admitted that after such payment he would still owe R8 024. This
payment is reflected
in the plaintiff’s bank statement. These
facts, which are not disputed, show that the defendant has no defence
and that
his denial of his default is not
bona
fide
. The plaintiff is
therefore entitled to summary judgment for the eviction order. The
plaintiff seeks an order for costs on the
scale as between attorney
and client but no reasons were advanced for such an order and the
agreement itself does not provide for
attorney and own client costs.
Order
[9] I make the following order:
1. Leave is granted to the defendant
to defend the claims set out in prayers 1, 3, 4, 5, 6 and 7 of
plaintiff’s particulars
of claim dated 4 May 2009;
2. Summary judgment is granted in
favour of the plaintiff against the defendant in the following
terms:
(1) The defendant and all those
occupying under or through him are ejected from and ordered to vacate
the premises, portion 4 of
erf 36, Pretoria, known as 3A Prinsloo
Street, Pretoria (situated on the south-west corner of Bloed and
Prinsloo Streets opposite
the petrol station) and are ordered to
return to the plaintiff the keys of the premises;
(2) The Sheriff is authorised and
directed to take all steps necessary to ensure that the premises are
vacated by whosoever, be
it sub-tenants or other persons occupying
with the defendant’s consent, and that the possession of the
premises is restored
to the plaintiff if the defendant fails to
comply with the order in (1) above within 14 days of this order;
(3) The defendant is ordered to pay
the costs of the application including the costs of the postponement
on 14 August 2009.
___________________
B.R.
SOUTHWOOD
JUDGE
OF THE HIGH COURT
CASE NO: 26340/09
HEARD
ON: 6 October 2009
FOR
THE APPLICANT: ADV. C.A. DA SILVA SC
ADV. S.K. HASSIM
INSTRUCTED
BY: Iqbal Mahomed Attorneys
FOR
THE RESPONDENT: In person
DATE
OF JUDGMENT: 8 October 2009