R22 million legal case against the department dismissed
23 May 2012
A legal case between the North West Department of Human Settlements, Public Safety and Liaison and MR Projects has been dismissed with costs by the Mmabatho High Court.
The case was lodged by MR Properties on the sale of three block of flats in Mahikeng from the North West Housing Corporation. The department was served with court papers as a result of a legal case registered by MR Properties, a company that alleged to have bought the three block of flats (Kagisano, Wimpy and Kamogelo) around Mahikeng from the NWHC.
Following the realisation that there was no sale agreement between the NWHC and MR Properties the Government decided to retain its property.
During the process, MR Properties demanded a sum of R22 million for cancellation pledge session agreement, however the government refused to pay the amount citing the fact that there was never financial transaction between the Corporation and MR properties.
In its defence through its legal unit, the department argued that there was no valid contract between the NWHC and MR Properties and that there was no transfer of right and obligation to the complainant.
The departmental legal representative further emphasised that the government could not be bound by the cancelation agreements because there was no agreement between the two parties.
The MR Properties made an application of leave to appeal and was dismissed with costs by the Mahikeng High Court.
The department is mandated by the North West Executive Council resolution to oversee the winding down process of the NWHC.
Simon Lesolang Mmope
Tel: 018 391 0423
Cell: 082 574 7621/0788788897
Fax: 018 391 0328
Issued by: North West Human Settlements, Public Safety and Liaison
23 May 2012
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