GEORGE NEWS - The long-running legal dispute over the Victoria Bay restaurant, Vikki’s at the Beach, has come to an end, with the tenant vacating the municipal premises after losing its final bid to remain at the popular coastal landmark.

The Garden Route District Municipality (GRDM) confirmed that the restaurant was vacated on 31 July after the Supreme Court of Appeal dismissed the lessee’s application for leave to appeal on 16 July, effectively ending the litigation.

According to the municipality, the Supreme Court of Appeal found there were no reasonable prospects of success or any other compelling reason for the appeal to be heard, allowing the municipality to implement the court process that resulted in the eviction.

The restaurant was operated by Byxiscan (Pty) Ltd, trading as Vikki’s at the Beach.

Rental arrears

The dispute stemmed from the expiry of the restaurant’s lease agreement. The lease commenced on 1 November 2019 for an initial three-year period before being extended to 31 May 2023 while a new tender process was being prepared.

According to the municipality, financial difficulties experienced by the lessee following the Covid-19 rental relief period resulted in rental arrears. The lessee subsequently requested that the outstanding rental debt be written off and that the lease be extended for a further three years. The municipality said it could not lawfully approve either request and formally notified the lessee on 9 March 2022 that continued non-payment constituted a breach of the lease agreement. The matter was thereafter contested through legal representatives and ultimately proceeded through the courts.

In a judgment delivered by the high court in May this year, Judge J Wille found that the lease had expired on 31 May 2023 and declared that any express or tacit lease agreement entered into after that date was void because it did not comply with the Municipal Finance Management Act and Municipal Asset Transfer Regulations. The court further declared the continued occupation of the premises unlawful and ordered the tenant to vacate the property.

Vikki’s at the Beach, the restaurant overlooking the popular Victoria Bay beach in George. Photo: Dorothy Ings

Wille also noted in the judgment that the respondent had not paid rental for at least three years and that continued occupation of the municipal property without payment prejudiced the public purse. The court further ordered the respondent to pay the municipality’s legal costs on the punitive attorney-and-client scale.

The municipality confirmed that rental arrears remain outstanding but declined to disclose the amount, saying the matter now relates to the recovery of a debt and the final reconciliation of the tenant’s municipal account, which must first be reported to the GRDM Council.

The manager of Projects, Properties, Facilities and Resort Management, Dzivhuluwani Mashila, said the municipality would continue pursuing all lawful processes available to recover any outstanding amounts in accordance with applicable legislation, the lease agreement and any relevant court orders.

“The municipality has a responsibility to protect public funds and ensure sound financial governance,” he said.

Process for new management

Attention will now turn to reopening the restaurant under new management.

Mashila said the municipality has commenced the necessary administrative processes relating to the future management of the Victoria Bay restaurant premises. This includes determining the most appropriate and legally compliant process to secure a new tenant while ensuring transparency, fairness and the protection of the municipal asset.

While acknowledging the importance of the Victoria Bay restaurant as a tourism amenity ahead of the upcoming holiday season, Mashila said it would be premature to commit to a specific timeline for appointing a new operator as the required administrative and procurement processes first need to be completed.

George Herald contacted the restaurant owner using the cellphone number still listed online to offer a right of reply. However, no response had been received at the time of publication.

‘We bring you the latest Garden Route, Hessequa, Karoo news’