Wierda Road West Properties (Pty) Ltd v SizweNtsalubaGobodo Inc

The appellant, a property-owning company, sued the respondent tenant for unpaid rentals and municipal charges arising from a written lease agreement concluded on 3 August 2012 in respect of commercial premises in Johannesburg. The respondent occupied the premises and paid rental until June 2014, when it vacated without notice. It later contended that the lease was void ab initio because parts of the building lacked approved building plans and no occupancy certificate had been issued as required by the National Building Regulations and Building Standards Act 103 of 1977. The high court dismissed the appellant’s claim, holding that although the lease was not invalid, it was unenforceable. The appellant appealed, and the respondent cross‑appealed.

The appeal was upheld with costs. The high court order was set aside and substituted with judgment in favour of the appellant for R7 867 548.78 plus interest at 8% per annum from 1 December 2014 and costs. The cross‑appeal was dismissed with costs.

The case clarifies that non‑compliance with building regulations and the absence of an occupancy certificate do not automatically render lease agreements void or unenforceable. It reinforces the principle that statutory illegality does not necessarily invalidate private contracts unless such an intention is clear from the statute. The judgment is important for landlords, tenants and property practitioners dealing with regulatory non‑compliance in commercial leases.