During August 1997, the respondents instituted eviction proceedings in the Transvaal Provincial Division against the appellant from the farm Katspruit in the district of Standerton, seeking an order declaring that the appellant was not a labour tenant as defined in the Land Reform (Labour Tenants) Act 3 of 1996. The second respondent was the owner of the farm, the first respondent was his tenant. The appellant had been employed on the farm from at least 1 September 1990 by a previous tenant and from 1 September 1994 by the first respondent. He was dismissed on 31 August 1996, brought unfair dismissal proceedings which were settled for R500 in June 1997, but thereafter refused to leave the farm. A dispute of fact arose on the affidavits regarding whether the appellant was a labour tenant. On 25 February 1998, Preiss J directed that oral evidence be led on this issue. The central question then arose whether the case should be transferred to the Land Claims Court in view of section 13(1A) of the Act, which had come into effect on 21 November 1997 and required transfer of cases to the Land Claims Court where interpretation or application of the Act was required and no oral evidence had been led. Preiss J rejected this contention, held that section 13(1A) only applied where issues arose after 21 November 1997, proceeded to hear oral evidence, and granted the eviction order. Leave to appeal was refused.
1. Condonation granted for late filing of the application for leave to appeal; 2. Leave to appeal granted; 3. The appeal succeeded; 4. The order of the Court a quo of 25 February 1998 was set aside and replaced with an order transferring the case to the Land Claims Court in terms of section 13(1A)(a); 5. All proceedings in the Court a quo subsequent to 25 February 1998 were set aside; 6. No costs order regarding the condonation application; respondents ordered to pay costs of applications for leave to appeal in both courts; costs in the Court a quo up to the jurisdictional issue were reserved for the Land Claims Court; costs thereafter and costs of the appeal were to be paid by the respondents.
The binding legal principle established is that section 13(1A) of the Land Reform (Labour Tenants) Act 3 of 1996 applies to all cases pending in a magistrate's court or high court at 21 November 1997 where the court is called upon to decide an issue requiring the interpretation or application of the Act, provided no oral evidence has been led. The phrase 'an issue arises' in section 13(1A) is to be interpreted broadly to encompass issues that remain pending for decision, not limited only to issues first raised after the provision came into effect. An issue can be said to 'arise' both when it is formulated on pleadings or affidavits and when it arises for decision at the end of the case. Where such an issue arises and no oral evidence has been led, the case must be transferred to the Land Claims Court and no further steps may be taken in the referring court, which lacks jurisdiction to decide the matter. The legislative purpose of section 13(1A) was to confer exclusive jurisdiction on the Land Claims Court to interpret and apply the Act in order to ensure consistent adjudication of labour tenancy matters in a specialized forum.
The Court noted with approval (obiter) the Supreme Court of Appeal's earlier decision in Ngcobo and Others v Salimba CC; Ngcobo v Van Rensburg 1999 (2) SA 1057 (SCA) that paragraphs (a), (b) and (c) of the definition of 'labour tenant' in section 1 of the Act must be interpreted conjunctively. The Court also made obiter observations regarding section 14 of the Act, noting that it does not provide an absolute bar to eviction proceedings against labour tenants with pending applications under Chapter III, and in any event was not applicable where the proceedings concerned whether a person was a labour tenant in the first place. The Court referred approvingly to the specialized nature of the Land Claims Court and its flexible evidentiary rules under section 30(1) of the Restitution of Land Rights Act 22 of 1994, which allows it to admit any evidence it considers relevant and cogent whether or not admissible in other courts.
This case is significant in South African land reform jurisprudence as it established the proper interpretation and scope of section 13(1A) of the Land Reform (Labour Tenants) Act 3 of 1996. It clarified that the provision was intended to give the Land Claims Court exclusive jurisdiction over all matters requiring interpretation or application of the Act, including cases already pending in other courts when section 13(1A) came into effect on 21 November 1997, provided no oral evidence had yet been led. The judgment reinforces the specialized jurisdiction of the Land Claims Court and prevents ordinary courts from continuing to interpret or apply labour tenancy legislation. It demonstrates the legislative intent to consolidate land reform adjudication in a specialized forum with flexible evidentiary rules appropriate to the subject matter. The case provides important guidance on the timing and procedural application of the transfer provisions and confirms that 'an issue arises' should be interpreted broadly to include issues pending for decision, not just issues first raised after the provision came into effect.