Readam SA (Pty) Ltd v BSB International Link CC and Others 2017 (5) SA 184 (GJ)

In this case, Readam SA (Pty) Ltd brought an application against BSB International Link CC and others for contempt of court due to their failure to comply with a Supreme Court of Appeal (SCA) order. The SCA had previously ordered BSB to partially demolish a building that was unlawfully erected in breach of town planning regulations. BSB deliberately did not comply with the order and instead pursued a strategy to circumvent compliance by purchasing an adjacent property, consolidating the properties, and applying for rezoning to legalise the building.

The dispute originated when BSB purchased an erf adjacent to Readam's property and obtained approval from the City of Johannesburg (COJ) to construct a building that violated town planning regulations. Despite objections from Readam and legal proceedings, BSB continued with the construction. After the SCA order, BSB attempted to legitimise the building by consolidating properties and applying for rezoning.

The court considered whether BSB's actions constituted contempt of the SCA order. BSB argued that their strategy aimed to rectify the unlawful construction, but the court found their conduct to be deliberate non-compliance with the court order. The court stressed the importance of upholding the rule of law and the principle of legality in such cases.

The court also addressed the role of COJ in the matter, noting its failure to expedite compliance with the court order. COJ's inertia and lack of action to rectify the irregularities in the building approval process were criticised. The court directed COJ to promptly consider and approve the demolition plans submitted by BSB to ensure compliance with the order.

Ultimately, the court found BSB and its director, Mike Slim, in contempt of court and ordered them to comply with the SCA order by submitting demolition plans and engaging an engineer for certification. BSB was given a suspended sentence of 30 days' incarceration, contingent on compliance with the court's directives. The court also issued cost orders against the parties involved, including BSB, Slim, and COJ, to cover the legal expenses incurred during the proceedings.

The core legal principle underlying the decision in this case is that deliberate non-compliance with a court order, especially in the context of attempting to circumvent the order through strategic maneuvers, constitutes contempt of court. The court underlined the importance of upholding the rule of law and the principle of legality, stating that allowing a party to present an unlawful enterprise as a fait accompli undermines the authority of the court and the legal system. The decision highlights the need for parties to comply with court orders in good faith and without attempting to evade their obligations through manipulative tactics.

The court relied on the following case law in its reasoning process:

1. BSB International Link CC v Readam South Africa (Pty) Ltd and Another 2016 (4) SA 83 (SCA)
2. Fakie NO v CCII Systems (Pty) Ltd 2006 (4) SA 326 (SCA) ([2006] ZASCA 54)
3. Lester v Ndlambe Municipality and Another 2015 (6) SA 283 (SCA) ([2014] 1 All SA 402; [2013] ZASCA 95)
4. Twentieth Century Fox Film Corporation and Others v Playboy Films (Pty) Ltd and Another 1978 (3) SA 202 (W)
5. United Technical Equipment Co (Pty) Ltd v Johannesburg City Council 1987 (4) SA 343 (T)