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Court of AppealAllowedCivil Appeal 267 of 1996· [1997] KECA 57 (KLR)

Jitendra Mathurdas Kanabar v Fish and Meat Limited

Court of Appeal of Kenya
2 May 1997
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The bottom line

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Kenya's Court of Appeal ruled that a tenant who objects to a termination notice but fails to refer it to the Tribunal in time loses the tenancy automatically.

What this practically means

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Executive summary

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The appellants were landlords of a godown/warehouse in Mombasa let to the respondent as a monthly controlled tenant under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act. On 21st March 1995 they served a section 4(2) tenancy notice terminating the tenancy from 1st June 1995, principally on the ground of persistent rent arrears. The respondent's advocates notified non-compliance but, contrary to section 6(1) of the Act, never referred the matter to the Tribunal before the notice took effect. The appellants then sued in the High Court for vacant possession, arrears and mesne profits, and moved for summary judgment. The respondent raised a preliminary objection that the High Court's jurisdiction was statutorily divested in favour of the Tribunal. Mbogholi Msagha, J. upheld the objection and dismissed the summary judgment application with costs, holding that the Tribunal retained jurisdiction notwithstanding the tenant's non-compliance. The Court of Appeal (Gicheru, Shah and Bosire, JJ.A) allowed the appeal. It held that where no reference is made to the Tribunal under section 6(1) before the notice takes effect, section 10 operates and the tenancy terminates on the specified date; thereafter no controlled tenancy exists and the Tribunal has no jurisdiction. The Court set aside the order dismissing the summary judgment application and restored that application for hearing in the High Court, awarding the appellants the costs of the appeal.

Key legal issues

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01

Effect of a tenant's failure to file a reference to the Tribunal under section 6(1) after notifying non-compliance with a tenancy notice

Holding

The tenancy notice takes effect on the date specified under section 10, terminating the tenancy; the landlord-tenant relationship ceases and the Tribunal loses jurisdiction.

Reasoning

Section 6(1) allows a receiving party who has notified non-compliance to refer the matter to the Tribunal before the notice takes effect, whereupon the notice is of no effect. Where no reference is made, section 10 operates and the notice takes effect from the specified date. Once the tenancy is terminated, there is no controlled tenancy within section 2 of the Act, and the Tribunal's statutory jurisdiction depends on the existence of such a tenancy. The landlord must then resort to the ordinary courts to enforce rights to possession.

p. 3
02

Whether the High Court judge erred in upholding the preliminary objection that only the Tribunal could determine the dispute

Holding

The judge erred; the Tribunal had no jurisdiction over a tenancy that had already terminated, and the High Court was not divested of jurisdiction.

Reasoning

The judge below held that the Tribunal retained power even where the tenant did not comply with the Act's requirements and that the expiry of the notice did not oust the Tribunal's jurisdiction. The Court of Appeal held this was wrong: non-compliance with section 6(1) meant the notice took effect under section 10, ending the controlled tenancy. Without a controlled tenancy the Tribunal had no jurisdiction, so the preliminary objection should have been dismissed and the summary judgment application heard on its merits.

p. 3

Legal principles established

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  • Where a tenant opposes a tenancy notice but fails to refer the matter to the Tribunal under section 6(1) of the Act before the notice takes effect, the notice takes effect under section 10 and terminates the tenancy, ending the landlord-tenant relationship and ousting the Tribunal's jurisdiction over the former tenancy.
  • Without a subsisting controlled tenancy, the Tribunal under the Act has no jurisdiction, and the landlord may enforce the right to possession in the High Court.

Court orders

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  1. 1.Appeal allowed
  2. 2.Order of the superior court dismissing with costs the appellants' application under Order XXXV rules 1 and 7 and Order L rule 1 of the Civil Procedure Rules set aside
  3. 3.The said application restored to hearing in the High Court of Kenya at Mombasa
  4. 4.Appellants to have the costs of this appeal
On appeal from
High Court of Kenya at Mombasa
H.C.C.C. No. 501 of 1995
Jurisdiction invoked
First appeal to the Court of Appeal against an interlocutory order of the High Court (appeal from an order dated 7th November, 1995)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Jitendra Mathurdas Kanabar v Fish and Meat Limited", Case Analysis (1997). Civil Appeal 267 of 1996. Source: 

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.