Els v Director General Department of Rural Development and Land Reform and others
| Jurisdiction | http://justis.com/jurisdiction/166,South Africa |
| Judge | Flatela J |
| Judgment Date | 11 September 2023 |
| Citation | 2023 JDR 3444 (LCC) |
| Hearing Date | 08 June 2023 |
| Docket Number | LCC225/2016 |
Flatela J:
Introduction
Central to this interlocutory application is whether the first respondent, a purchaser of the applicant’s immovable property is liable to pay mora interest on the purchase price of the immovable property where there were unreasonable delays in finalising the transfer of the property. The delays were caused by the internal administrative issues of the first respondent.
The Applicant, a retired farmer sold to the first respondent, The Minister of Rural in Development and Land Reform his property fully described as Portion 7 of the Farm Wonderboom 500 Registration Division, HUD, Measuring 266, 4469 Hectares. The property was subject to a claim lodged by the second to the fourth respondents in terms of the Land Reform (Labour Tenants) Act No. 3 of 1996 (LTA). The second to fourth respondent instituted an action before this court against the Applicant as the first defendant and the first respondent as the second defendant for an order declaring them to be Labour tenants in the subject land and for an award of Land in LCC 225/2016 (the main action).
After the parties exchanged the pleadings in the main application, the Applicant and the first respondent engaged in negotiations to resolve the matter. The Applicant availed the property to the first respondent for purchase for full and final settlement of the matter, the first respondent agreed to acquire the land from the Applicant. The Applicant, the first and second to the fourth respondent concluded a settlement agreement, the terms of which were negotiated and agreed upon by the parties. On 3 November 2020, the settlement agreement was made an order of Court.
The first respondent failed to comply with the terms of the settlement agreement which was made an order of Court.
On 01 November 2022 the applicant approached this court in terms of Rule 37(1)(b) seeking inter-alia an order in the following terms:
2023 JDR 3444 p3
Flatela J
An order directing the first respondent to pay the compensation to which the applicant is entitled as per the agreement reached, in the amount of R2 800 000.00 (TWO milliON EIGHT HUNDRED THOUSAND RAND) plus interest on the set amount calculated in terms of the provisions of the Prescribed Interest Act Act 55 of 1975 from 27 June 2022 to the date of registration of transfer of Portion 7 of the Farm Wonderboom 500 Registration Division, HUD, .measuring. 266, 4469 hectares, in favour of the Communal Property Association to the trust account of Cox &Partners Conveyancers of Vryheid, to be held by the said conveyancers in trust until date of registration of transfer of the aforesaid property in favour of the aforesaid CPA, upon which date of registration they said amount plus interest calculated as aforesaid until the date of registration, will be due and payable to the applicant. The aforesaid Conveyancers shall, upon receipt of the set amount plus interest, deposit the funds into a special interest-bearing account investment on their trust account, the interest earned on such a deposit to be for the credit of the state; (my emphasis)
That the first respondent be directed to pay the cost of the Applicant for this interlocutory application on a scale between attorney and own client.’
On 27 February 2023, the matter was enrolled on the unopposed roll before Cowen J, the first respondent’s legal representatives appeared and tendered to pay costs of the Applicant on a party and party scale. The court granted an order compelling the first respondent to pay the Applicant the compensation he is entitled to and the first respondent was further ordered to do whatever is necessary to give effect to the order.
The issue of interest payable on the purchase price and the disputed scale of the tendered costs was postponed.
The costs issue has been resolved by the parties. The parties have since agreed on party and party scale.
2023 JDR 3444 p4
Flatela J
The only remaining issue for determination is whether the first respondent is liable for the payment of interest from the date of demand to the date of payment of the purchase price of the property.
Settlement Agreement
The material terms of the settlement agreement were as follows:
The Second Defendant will, within hundred and twenty (120) days from the date hereof formulate and present a written offer to the first defendant c/o the first Defendant’s Attorneys Messrs Cox and Partners, Vryheid, which written offer will reflect what amount the Second Defendant is prepared to pay the first defendant as just and equitable compensation for the property against registration of transfer.
The first defendant shall within fourteen (14) calendar days from the date upon which the second defendant will present the written offer to the first defendant, respond to the offer in writing and will deliver its response to the second defendant, c/o the head of the provincial offices of the Department of Rural Development and Land Reform dealing with the matter at 188 Hossen Haffajee Street Pietermaritzburg.
As soon as the first defendant and the second defendant have agreed on the amount of compensation payable to the first defendant, or in absence of agreement, as soon as the amount of compensation has been...
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