Bongo Safaris (Pty) Ltd and Others v Minister of Rural Development and Land Reform and Others

The applicants, private land-owning entities, concluded sale agreements with the Department of Rural Development and Land Reform relating to land acquisition for land reform purposes. Despite enforceable contracts being in place, the respondents failed to make payment, citing a lack of available funds and providing no clear indication of when payment would be made. The applicants repeatedly sought compliance, but due to the respondents’ default and silence, they approached the Land Claims Court seeking relief to enforce the agreements. By the time the matter was set down, the parties had settled prayers 1–5 of the notice of motion, with the respondents complying or agreeing to comply with the substantive relief sought. The only remaining dispute before the Court concerned the issue of costs.

The Court noted compliance with prayers 1 and 2 and granted an order in terms of prayers 3, 4 and 5 of the notice of motion. The respondents were ordered to pay the applicants’ costs on a party-and-party scale, and not on an attorney-and-client (punitive) scale.

The case is significant for reaffirming that State respondents may be ordered to pay costs where their default compels private parties to litigate, even in the context of land reform and limited public funds. It underscores the principle that the State must manage contractual obligations responsibly and cannot rely solely on lack of funds to avoid adverse costs consequences, while also illustrating judicial restraint in refusing punitive costs absent bad faith.