ATM Solutions (Pty) Ltd v Olkru Handelaars CC and Another

ATM Solutions (Pty) Ltd entered into a Site Location Agreement with Olkru Handelaars CC, the operator of a Kwikspar store in Worcester, in terms of which ATM Solutions installed and operated an ATM within the store for use by customers. The ATM was physically installed, fixed to the floor, and connected to the store’s electricity supply, but access to the premises and the ATM remained under Olkru’s control. Without ATM Solutions’ consent, Olkru disconnected the ATM, removed it to a storeroom, and immediately replaced it with an Absa Bank ATM. ATM Solutions brought an urgent application for a mandament van spolie against Olkru and Absa, alleging unlawful dispossession of its ATM and quasi-possession of rights flowing from its installation and operation.

The appeal was dismissed with costs; the refusal of the mandament van spolie by the High Court was confirmed.

The case is a leading authority confirming that the mandament van spolie in South African law cannot be used to protect or enforce purely contractual rights. It clarifies the limits of quasi-possession and reinforces the distinction between rights incidental to possession of property and personal rights arising solely from contract, thereby consolidating the principles laid down in Xsinet and First Rand.