M Bisunder Farming CC v Regional Land Claims Commission (KwaZulu-Natal) and Another

The Waterfall Community Claimants lodged a land restitution claim in 1998 over the farm Kruisfontein 963 Portion 91 of Portion 42. After investigation, the Regional Land Claims Commission (KZN) caused the claim to be gazetted and obtained a valuation in 2007, valuing the farm at R1,742,000. The Commission made a written offer to purchase the farm from the owner, M Bisunder Farming CC, on 30 July 2007, which the applicant accepted on 6 August 2008. No further steps were taken for nearly two years. The applicant launched proceedings in October 2010 seeking enforcement of the sale, payment of the purchase price (or alternatively market value), constitutional relief, interest, and costs. Shortly before the hearing, the parties settled most issues, agreeing that the Commission would purchase the farm for R1,742,000. The only remaining dispute was whether the applicant was entitled to interest on the purchase price due to the delay in payment.

The application for payment of mora interest was dismissed. The first respondent was ordered to pay the applicant’s costs on a party-and-party scale.

The case clarifies the application of mora principles in the context of land restitution transactions and confirms that interest on a purchase price cannot accrue before statutory restitution agreements (section 42D) are concluded. It underscores the procedural nature of state land purchases under the Restitution of Land Rights Act and limits claims for interest against the state in the absence of a due and enforceable obligation.