The appellant and respondent entered into a lease agreement on 22 May 2001 for a house owned by the respondent at a monthly rental of $14,500. On 30 September 2001, the respondent's wife (joint owner) purported to sell the house to Dinesh Naran, but the agreement fell through. The appellant stopped paying rent from October 2001, claiming he now occupied the house on the authority of Dinesh Naran. On 7 June 2002, the respondent issued summons claiming arrear rentals of $121,500, holding over damages, and ejectment. The appellant failed to enter appearance to defend, resulting in default judgment on 17 June 2002. On 15 July 2002, the appellant applied for rescission of judgment, disputing the respondent's title to the property. The magistrate's court refused the rescission application. The appellant appealed to the High Court, which dismissed the appeal on 8 April 2004. The appellant then appealed to the Supreme Court but did not appear when the matter was called on 3 April 2006.
The appeal was dismissed with costs.
A lessee cannot dispute the title of the lessor from whom he derives his right of occupation. Once a lessor has performed his part of the contract by giving the lessee vacant possession and undisturbed enjoyment of the premises, the lessee is bound to perform his own obligations under the lease agreement, including payment of rent. The lessee's discovery that the property may belong to another person, or that there may be defects in the lessor's title, does not entitle the lessee to refuse performance of his contractual obligations. This rule is based on: (1) the principle that where the lessor has performed his part by placing the lessee in undisturbed possession, the lessee must also perform by paying the agreed rent; and (2) the principle of good faith, which precludes a lessee who has enjoyed undisturbed possession from subsequently challenging the lessor's right to let the property.
The Court endorsed the High Court's comprehensive citation of legal authorities on the principle that lessees cannot dispute lessors' title, including South African cases such as Salisbury Gold Mining Company v Klipriviersbertg Estate and Gold Mining Co. 1893 H 186, Loxton v Le Hurve 1905 (22) SC 577, Clark v Nourse Mines Ltd. 1910 TS 512, Hillock & Anor v Hiloage Investments (Pvt) Ltd 1975 (1) SA 508(E), and Ebrahim v Pretoria Stadsraad 1980(4) SA 10 (T). The Court also implicitly commented on the futility of the appellant's continued appeals, noting that facts were admitted and the appeal was clearly without merit, particularly given the appellant's non-appearance at the final hearing.
This case reinforces the well-established principle in South African and Zimbabwean contract law that a lessee cannot dispute the lessor's title to leased property. It affirms that when a lessor has fulfilled his obligations by giving vacant possession and ensuring undisturbed enjoyment, the lessee must perform his contractual obligations, particularly the payment of rent. The case demonstrates the application of the doctrine of good faith in lease agreements and confirms that title disputes do not relieve a lessee of contractual obligations under a valid lease.