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Court of AppealPartially AllowedCivil Appeal No. 29 of 2002· [2003] KECA 151 (KLR)

Guandai Karugu v Lihasi Bidali [2003] KECA 151 (KLR)

Court of Appeal of Kenya
5 December 2003
1,568 words in judgment
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The bottom line

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Landlords who seize tenant goods without notice break the law, but Kenya's Court of Appeal still deducts proven rent arrears from the tenant's compensation.

What this practically means

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Executive summary

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This was a first appeal to the Court of Appeal at Nairobi from a judgment of Mulwa J in H.C.C.C. No. 1048 of 1993 delivered on 26th October 1999, in a landlord-tenant dispute over premises Dagoretti/Karandani/31. The tenant (respondent) sued after auctioneers, sent by his landlord (appellant), forcibly removed his goods on 23rd February 1992 and advertised their sale for 5th March 1992; the landlord counterclaimed for Shs.143,000/= in rent arrears. The High Court found the landlord was owed Shs.143,000/= in arrears, that no notice of distress was given, and that the distress and sale were unlawful, and assessed the value of the removed goods at Shs.300,000/=. The Court of Appeal, in a unanimous judgment of the bench (Tunoi, O'Kubasu and Githinji, JJ.A.), held that section 4(1) of the Distress For Rent Act (Cap. 293) requires notice of distress and fourteen days for the tenant to pay or replevy before sale; distress levied without notice was wrong in law. It declined to disturb the valuation of the goods at Shs.300,000/= but found the Judge had overlooked the proved counterclaim. The appeal was partially allowed: the High Court judgment was set aside and substituted with judgment for the respondent of Shs.157,000/= (Shs.300,000/= less Shs.143,000/= arrears). The appellant received costs of the appeal and half the costs in the superior court. This judgment binds subordinate courts on the notice requirement for lawful distress and on netting proved rent arrears against damages for unlawful distress.

Key legal issues

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01

Lawfulness of distress for rent levied without notice

Holding

The removal of the respondent's goods by auctioneers on 23rd February 1992 without notice, followed by advertisement of sale on 4th March and sale on 5th March 1992, did not comply with the Distress For Rent Act and was wrong in law.

Reasoning

Section 4(1) of the Distress For Rent Act (Cap. 293) requires that after distress the tenant be given notice stating the cause of the distress and fourteen days within which to pay the rent with costs of the distress or replevy the goods before any sale. The auctioneers raided the premises without giving any notice. The Court therefore found the learned Judge was entitled to hold that the whole process of levying distress was unlawful.

p. 3
02

Whether the appellant's counterclaim for rent arrears of Shs.143,000/= was proved

Holding

Having found as a fact that the respondent owed Shs.143,000/= in rent arrears, the appellant necessarily succeeded on his counterclaim, which the learned Judge overlooked.

Reasoning

The superior court had made a factual finding that the respondent was in arrears of rent in the sum of Shs.143,000/=, a finding not disturbed on appeal. That finding meant the landlord had proved his counterclaim. By failing to give effect to it, the Judge denied the appellant what was rightfully his. The Court therefore allowed the second ground of appeal and netted the Shs.143,000/= off the Shs.300,000/= award.

p. 3
03

Assessment of the value of goods carried away under unlawful distress

Holding

The trial Judge, doing the best he could in the circumstances after hearing the respondent's evidence on the items carried away, was entitled to assess the value of the goods at Shs.300,000/=, and an appellate court should not interfere with that assessment.

Reasoning

The respondent had listed the items carried away and given estimate values in evidence. The learned Judge considered that evidence and, doing the best he could in the circumstances, arrived at Shs.300,000/=. The Court found no misdirection in the valuation and saw no valid reason to interfere, so the first ground of appeal failed.

p. 3

Legal principles established

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  • Where a landlord lawfully proceeds to distress for rent, a notice of distress stating the cause of the distress must be left on the premises, and the tenant must be given the statutory fourteen days to pay the rent with costs or replevy the goods before sale; distress levied without notice is unlawful.
  • Where a trial court finds rent arrears proved and unrebutted, it must give effect to a landlord's counterclaim in that amount even where the distress that prompted the suit was itself unlawful; a netting-off of proved arrears against damages for unlawful distress is required.

Court orders

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  1. 1.Appeal allowed on the second ground only
  2. 2.Judgment of the superior court set aside and substituted with judgment in favour of the respondent in the sum of Shs.157,000/= instead of Shs.300,000/=
  3. 3.Appellant to have costs of this appeal and half the costs in the superior court

Authorities

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Legislation

  • Distress For Rent Act (Cap. 293 - Laws of Kenya)Section 4(1)

Cases cited (2)

  • Kanji Noran Patel vs. Noor Essa and Another
    [1965] E.A. 484
  • Nthenge v. Wambua
    [1984] KLR 799
On appeal from
High Court of Kenya at Nairobi
H.C.C.C. No. 1048 of 1993
Jurisdiction invoked
First appeal to the Court of Appeal from the High Court (statutory appellate jurisdiction; no specific constitutional provision cited)

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, "Guandai Karugu v Lihasi Bidali [2003] KECA 151 (KLR)", Case Analysis (2003). Civil Appeal No. 29 of 2002. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2003/151/eng@2003-12-05

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