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It seeks further an order compelling the respondents to restore the status quo prior to the resolution in respect of the immovable property forming the subject matter of the sale agreement.

The sale agreement in question was concluded on 2 Octoberwhile the resolution approving it and authorising its execution was taken on 5 February The property in question comprises hectares of land consisting of various portions of the farms Townlands and Palmfontein lying adjacent to the N12 highway between Klerksdorp and Potchefstroom in the North West Province.

During Septemberthe City published an invitation in various newspapers for proposals to develop the land. The notice stated further: It now appears that the development will include a new shopping centre. The applicant is a private company that has developed and operated a shopping centre known as Flamwood Walk upon property within the boundaries of the jurisdiction of the City as local authority.

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The shopping centre is situated on the N12 highway and presently comprises 12 square metres gross leasable area for retail purposes. It is common cause that the applicant possesses development rights in respect of the remaining extent of its property. It has plans to engage in further development and thus has an interest in the development of competing shopping centres in the same area, especially along the N12 highway.

It also was the owner of the immovable property prior to its alienation to the second respondent, ISAGO. The applicant did not respond to the invitation to submit proposals published by the City in September Various development proposals were received for consideration by the City.

The consortium is not defined in the resolution. However in para 2. The members of the consortium are all investors, developers and business entities in their own right and had prior to been involved in business activities either as parties, shareholders, or members of joint ventures with common business interests.

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The development of the N12 project was but one project among various other projects in South Africa and Mauritius. ISAGO is a special purpose vehicle or development company comprising the members of the consortium.

The relinquishing of shares by certain of the consortium members does not mean they will not be involved in the execution of the project in their respective capacities as advisors, consultants, building contractors, or other service providers. They also remain bound as sureties and in respect of certain guarantees given in the sale agreement.

The price was payable by way of an initial payment of R3 million plus VAT with the balance payable in the future at different stages of the development in accordance with clause 5. This arrangement was later changed and the full purchase price was paid prior to the commencement of this litigation.

The entire sale agreement was subject to the suspensive conditions contained in clause 4. These are central to the issues in dispute. Clause 4 reads as follows: The Seller undertakes to use its reasonable endeavours to procure the fulfillment of the conditions in clause 4.

Unless the conditions in clause 4. The Purchaser shall be entitled to extend the period for the fulfilment of such conditions on one or more occasions and for a maximum period of 1 one year on each occasion by giving written notice to that effect to the Seller before the date for the fulfilment of such conditions.

The Seller undertakes in favour of the Purchaser that, after fulfilment of the conditions in clause 4. In spite of the suspensive conditions the purchaser, ISAGO, was entitled to take occupation of the land, and did in fact do so, in terms of Clause The relevant provisions of clause 11 provided for the taking of occupation, the commencement of improvements and the installation of services on the land immediately upon signature of the agreement.

On 29 July attorneys on behalf of the applicant wrote to the municipal manager as follows: We refer to the abovementioned matter and confirm that we act herein on behalf of Diggers Development Pty Ltd.

As a result of the above, the entire process followed by the City of Matlosana is ultra vires. On 4 Septemberthe municipal manager of the City caused the following letter to be sent to a number of officials in the national and provincial governments: In this regard the following: The operation of this Agreement of Sale was however suspended in terms of Clause 4.

Municipal Finance Management Act, Act 56 of The City of Matlosana is in the process of complying with the provisions of Section 33 of the Local Government: We await your views and recommendations. In response to the letter of 4 Septemberthe Acting Director General of the national Department of Provincial and Local Government on 7 October addressed a letter to the municipal manager in the following terms: Kindly be advised that in terms of section 33 1 of the Municipal Finance Management Act, No 56 ofa municipal manager has to solicit the views and comments of the dplg before the draft contract is placed before municipal council for approval and not the other way round.

The fact that the operation of this Agreement of Sale was suspended in terms of Clause 4.The SBS Doctor of Business Administration (DBA) is an integrated work and research program for management practitioners and professionals.

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