Durban - The property developer of 317 Currie Road is entangled in another court battle - this time with a subcontractor, Nela Kahle cc, over the removal of scaffolding used to build the controversial high-rise building on the Berea.
Nela Kahle, an applicant in this Durban High Court matter, had a R2.7m contract with Serengeti Rise Industries (Pty) Limited, and has filed an urgent application to force the latter to remove its scaffolding from the nine-storey building site.
The matter was scheduled to be heard in the Durban Labour Court on Friday as the High Court was being fumigated.
On January 15 last year, Serengeti and Nela Kahle made a deal for the latter to supply scaffolding and decking for the construction with phased payments.
Nela Kahle’s attorney, Anitha Chetty, said the contract between the two ended last month.
According to the papers, Serengeti was in breach of contract in that it last made payment to Nela Kahle in January.
Nela Kahle claims the amount owed, less damages, was R790 000.
The scaffolding it sought to remove was valued at R4.5 million.
The applicant claimed that, after the June 29 High Court order to demolish the building was issued, the municipality ordered the building to be secured. The applicant then had to buy more scaffolding to keep its business going since its equipment was on the construction site.
A day after the demolition order, Nela Kahle demanded from Serengeti, in writing, payment, and informed the company about its intention to remove all its equipment by July 2.
Through its lawyers on July 1, Serengeti told Nela Kahle not to remove the equipment, and no further communication was made.
The applicant claimed this was causing “serious” financial harm because it was due to start a new contract with another company.
In its opposing affidavit, Serengeti suggested that Nela Kahle had fabricated the contract with the other company.
Serengeti said that the application was misguided in that the status of the new contract with the other company was in dispute as well as the ownership of the scaffolding and equipment.
Serengeti claimed that no reference was made in the contract on its termination date.
Daily News