Transnet Limited v Tatise Tebeka and Others

Transnet Limited, the registered owner of a house in Motherwell, Port Elizabeth, sought to evict Mr and Mrs Tebeka from the property under the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998 (PIE). Mr Tebeka had occupied the house since at least July 1989 pursuant to an agreement of sale concluded with Transnet as part of an employee housing scheme. The purchase price was to be paid over time via salary deductions, with ownership to pass only once the full amount was settled. After Mr Tebeka’s dismissal in 1999, his pension was applied to the debt, leaving a shortfall. Transnet alleged that it later cancelled the agreement of sale due to non-payment and that the Tebekas’ continued occupation became unlawful. The Tebekas denied receiving any notice of default or cancellation. Transnet could not prove that the alleged notices of rescission were communicated to Mr Tebeka.

The appeal was dismissed with costs, and the eviction order sought by Transnet was refused.

The case clarifies the interaction between contract law principles and eviction proceedings under PIE. It confirms that an occupier who remains in possession under an uncancelled agreement of sale is not an unlawful occupier. The judgment underscores the strict requirement that a notice of rescission must be communicated to a defaulting party before cancellation can occur, reinforcing procedural fairness in eviction cases.