Transarc Investments (Pty) Ltd v DKM Healthcare (Pty) Ltd

The parties concluded a written lease agreement on 13 March 2023 for premises situated at erf 435, Mthatha, for a period of ten years. The agreed monthly rental was R237,103, subject to annual escalation. The lease entitled the lessor to cancel and evict the lessee in the event of non-payment persisting for more than three days after notice. The respondent/tenant repeatedly failed to pay rent timeously, making only sporadic payments and remaining in arrears despite notices. The applicant/lessor consequently sought cancellation of the lease and eviction. The respondent admitted the non-payment but alleged that it later paid arrears, had made improvements, and could not operate its intended medical services facility because the premises were allegedly not properly zoned, which it attributed to the applicant’s conduct.

The lease agreement was cancelled with effect from 1 July 2025, and the defendant was ordered to vacate and was evicted from the premises at erf 435, Mthatha. The defendant was ordered to pay the plaintiff’s costs, including the costs of a prior postponement, on an attorney-and-client scale.

The case reinforces the post-amendment approach to summary judgment, confirming that courts will summarily dispose of matters where defences are vague, inadequately pleaded, or constitute a sham. It affirms the enforcement of commercial lease agreements and exclusionary clauses allocating responsibility for zoning and regulatory compliance, underscores the continued strength of pacta sunt servanda, and clarifies that alleged zoning issues do not automatically excuse non-payment of rent or bar cancellation absent properly pleaded illegality or public policy considerations.