The Department of Rural Development and Land Reform: Eastern Cape v Phahla and Mpunyuka

The applicant, the Department of Rural Development and Land Reform, is the owner of two farms in Matatiele. The first and second respondents were appointed as caretakers of these state-owned farms under caretaker agreements concluded in April and May 2014 in terms of the State Land and Lease Disposal Policy. The agreements prohibited subletting or allowing third-party occupation without prior written consent. The applicant alleged that the respondents breached the agreements by permitting third parties to graze livestock on the farms in return for monetary payments, amounting to subletting. Investigations between 2015 and 2019 revealed that third parties’ livestock were kept on the farms and payments were made to the respondents. Notices of breach, termination, and final notices to vacate were served, but the respondents refused to vacate, disputing that any subleasing occurred and contending that the arrangements were for grazing or assistance purposes only.

The caretaker agreements with both respondents were confirmed as cancelled. The first and second respondents, together with their livestock and any persons occupying through them, were ordered to vacate the respective farm portions within 14 days. The respondents were ordered jointly and severally to pay the costs of the application.

The case reinforces the enforceability of caretaker agreements governing state land and affirms that unauthorised grazing or occupation by third parties in return for payment constitutes subletting in breach of such agreements. It also illustrates the application of the Plascon-Evans principle in motion proceedings and confirms the State’s right to evict caretakers who materially breach contractual conditions.