Mahomed Ebrahim and Co (Pty) Ltd v Minister of the Interior

• Judge: Hiemstra J
• Judgment Date: 19 March 1958
• Citation: 1958 (2) SA 531 (T)
• Hearing Date: 05 March 1958
• Court: Transvaal Provincial Division

Hiemstra, J.:

The applicant is a private company registered in 1918, E hereinafter called 'the company'. Indians held a controlling interest at all revelant times.

On the 15th July 1930, and the 6th December 1930, respectively, the company became registered owner of two properties in the township of Newclare.

On the 18th January 1957 the Chief Inspector of Land Tenure notified the F company that the Minister of the Interior had decided to exercise his powers under sec. 20 of the Group Areas Act, 41 of 1950, in respect of the properties. It was stated that as the company was debarred from holding the properties, it had to sell them within three months, failing which the Minister would cause them to be sold by public auction.

G The company endeavoured to mitigate the rigour of the Minister's proposed action and in the course of the correspondence virtually admitted that the Minister had the right, in terms of sec. 20, to order the properties to be sold.

Thereafter the case of Mahomed v Insolvent Estate Du Toit, 1957 (3) SA 555 (AD), was decided, and the company was advised that on the H basis of that decision by the Appellate Division, it could resist the forced sale. The prior admission by the company that the Minister was acting within his rights, is not being held against it.

The company now applies for an interdict restraining the Minister from selling the properties, and certain consequential relief.

The relevant portion of sec. 20 of the Group Areas Act (now sec. 37 of Act 77 of 1957) reads:

Hiemstra J

'20 (1) If any immovable property -

(a)

. . .

(b)

has at the commencement of this Act been acquired or is at the said commencement held in contravention of any provision of any law repealed by this Act, or in pursuance of any agreement which is null and void in terms of any such provision, or is registered in favour of any person who is in terms of any such provision debarred from holding it . . . the Minister may . . .'

(the Minister's powers of sale are then set out).

A The respondent's attitude is that these properties were at the commencement of the Group Areas Act held 'in contravention of' sec. 2 (2) of Act 37 of 1919, as inserted into that Act by sec. 7 of Act 35 of 1932, or that they were at the said commencement registered in favour of B the company, which was in terms of the same provision 'debarred from holding them'. In either case the provisions of sec. 20 (1) (b) would apply. Sec. 2...