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Court tells top Tsogo Sun hotel to vacate premises Today's News

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The Supreme Court of South Africa (SCA) has ordered the Tsogo Sun to vacate the 292-room Garden Court Hotel in Cape Town premises from March, following two late rental payments.

The property is owned by Sandton-based Mohamed Rafik, under Mohamed's Leisure Holdings (Pty) Ltd. Rafik insists that the hotel’s failure to pay its monthly rental of R694‚585 in 2014 triggers the eviction clause in the lease. Claiming that, at the time, he made it clear that, although he was exercising leniency in this instance, another late payment would result in him invoking the ‘eviction clause’ in the contract without hesitation. 

After a second late payment four months later, he followed up on his promise and on December 1, 2017 a full bench of five Supreme Court judges ruled in his favour, ordering Tsogo Sun to vacate. 

Tsogo Sun’s first late payment was remedied 16 days after it was due, and was late as the result of an error on Nedbank’s part – not an error on the part of Tsogo Sun. At the time, the bank wrote to Rafik to accept responsibility for the issue. Unfortunately, four months later Nedbank erred again, transferring the funds to the wrong account and accepting that the mistake was their responsibility.

eTNW spoke to Ravi Nadasen, chief operating officer at Tsogo Sun Hotels, who confirmed that the hotel group would appeal the verdict through the Constitutional Court.

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