Court gives judgment in Bundu Lodge court drama
Judge Roelofse was tasked with determining whether the agreement would be enforced or not.
MBOMBELA – The court drama surrounding Bundu Lodge came to an end on Friday in the Mpumalanga High Court. The judge, Henk Roelofse, ordered that the iconic restful abode will be sold to a company called Ebundu (Pty) Ltd.
This outcome mirrored the crux of a sale agreement concluded between lodge founder and owner Willem Konstantyn Janson and Ebundu.*
However, Janson wanted out and alleged non-compliance by the purchasers – a move Roelofse labelled “perverse and an afterthought, most probably brought about by seller’s remorse”.
Ebundu’s representatives are Sibusiso and Ntombizodwa Tshabalala.
In September last year, they contracted with Janson to buy the lodge from him.
Three months later, Janson and Bundu manager, William Blake alleged that the deal fell through. This aggrieved the Tshabalalas, who maintained that they never failed to comply with the agreement and that it was still in effect.
A court battle followed in which Roelofse was tasked with determining whether the agreement would be enforced or not.
He considered the deal between the Tshabalalas and Janson.
BACKGROUND:
- The sale agreement pertaining to Bundu Lodge was reached between Ebundu and Janson on September 8, 2017.
- It was subject to two suspensive conditions. The first held that the purchasers had to obtain a loan from the Industrial Corporation of South Africa (IDC) totalling R32 million – the lodge’s purchase price. The second was that shares would be established and issued in Ebundu (Pty) Ltd.
- Both conditions were fulfilled.
- On November 29 last year, an addendum to the sale agreement was entered into. The parties recorded the conclusion of the sale and that the IDC “is funding the price payable by the purchaser”.
CONFLICT:
- On December 4 Janson and Blake alleged that the Tshabalalas had never fulfilled the first condition of the original sale agreement. Accordingly, they stated that the sale agreement had lapsed.
- The Tshabalalas, who maintained that the deal was still in place as no non-compliance had occurred, felt aggrieved.
CONTRACT ON TRIAL:
- Ebundu instituted legal action. The company wanted the Mpumalanga High Court to order that the contract be enforced.
- Ebundu stressed that it had secured the required loan of R32 million – the lodge’s purchase price, and that it issued shares as prescribed in the second condition.
JUDGMENT:
- Roelofse stated that the agreement had to be interpreted in order to determine the parties’ intention. To him, it was clear that they planned for Bundu Lodge to change hands.
- He guessed that the seller’s allegations of non-compliance against the purchaser was motivated by buyer’s remorse.
- Roelofse ordered Janson to take all steps necessary to give effect to the sale agreement that had been conclude between him and Ebundu.
- Janson will also have to cough up the purchaser’s legal fees.
*Lowvelder has since received confirmation that Janson will appeal the High Court judgment. A follow-up report will update readers on whether the appeal was successful or not.
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