National Scrap Metal (Cape Town) (Pty) Ltd and Another v Murray & Roberts Ltd and Others

The appellants, National Scrap Metal (Cape Town) (Pty) Ltd (NSM) and its wholly owned subsidiary Murec Crushing and Milling (Pty) Ltd (Murec), occupied portions of immovable property in Kuilsrivier owned within the Murray & Roberts (M&R) group. NSM occupied a leased portion under a written lease that expired on 31 October 2010, while Murec occupied a services site under a waste removal and disposal agreement terminable on notice. The appellants alleged that in 2008 an oral agreement was concluded with a senior M&R representative, Mr Noonan, granting NSM the right to remain in occupation of the leased portion and the shredder site for at least ten years after October 2010 on the same terms as the existing lease. Relying on this alleged oral lease, NSM invested heavily in installing a large industrial shredder. M&R denied that such an oral lease was concluded and disputed Noonan’s authority to bind the group. After giving notice to vacate, M&R applied for eviction. The High Court rejected the appellants’ version on the papers and granted eviction. The appellants appealed to the Supreme Court of Appeal.

The appeal succeeded. The High Court’s eviction order was set aside and replaced with an order dismissing the eviction application. The applicants in the eviction proceedings were ordered to pay the respondents’ costs in the High Court, and the respondents were ordered to pay the appellants’ costs of appeal, including the costs of two counsel.

The case is significant for reaffirming the strict application of the Plascon-Evans rule in South African motion proceedings. It underscores that courts must be slow to reject disputed factual allegations on affidavit alone and highlights the high threshold required before a version may be dismissed as far-fetched or untenable. The judgment is frequently cited on the treatment of disputes of fact and the limits of deciding credibility and probabilities without oral evidence.