Transnet Limited v Erf 152927 Cape Town (Pty) Ltd and Others

Transnet Limited, the owner of a strategically located property near the Cape Town harbour, sought the eviction of several respondents occupying the property. Lorcom Six (Pty) Ltd, one of the respondents, alleged that it occupied the property under an oral lease concluded with Transnet, pending transfer of ownership to Erf 152927 Cape Town (Pty) Ltd, which had exercised an option to purchase the property in 1998. Transfer had been delayed for years due to regulatory and other issues, including resistance by Transnet. Lorcom had been in occupation since 2000 with Transnet’s knowledge and consent and had sublet portions of the property to other respondents. Transnet denied the existence of any lease and launched eviction proceedings by way of motion. The Western Cape High Court dismissed the application, finding that a foreseeable bona fide dispute of fact existed regarding the alleged oral lease, and declined to refer the matter to oral evidence. Transnet appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel.

The case is significant for reaffirming South African principles governing disputes of fact in motion proceedings, particularly in eviction matters. It underscores that an applicant who foresees a genuine factual dispute proceeds by notice of motion at its peril and that courts may dismiss such applications outright. The judgment also highlights the tolerance of long-term occupation and negotiations as relevant factors in assessing the credibility of alleged oral lease agreements.