Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Application NAI 207 of 2018· [2018] KECA 205 (KLR)

Shade Manufacturers and Hotel Limited v Serah Mweru Mutuu & 3 others [2018] KECA 205 (KLR)

Court of Appeal
26 October 2018
2,158 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

#

The Court of Appeal confirmed that Kenyan landlords and tenants cannot appeal ELC decisions on rent tribunal matters, and dismissals cannot be stayed.

What this practically means

#

Executive summary

#
This is a ruling of the Court of Appeal at Nairobi on a Notice of Motion dated 16th July 2018 brought under rule 5(2)(b) of the Court of Appeal Rules by Shade Manufacturers and Hotel Limited seeking stay of execution and an injunction restraining eviction from premises known as the Shade Hotel in Karen, Nairobi, pending an intended appeal against the ruling of the Environment and Land Court (K. Bor, J.) delivered on 10th July 2018 in ELC Appeal No. 41 of 2017, which had itself dismissed the applicant's application for stay of the Business Premises Rent Tribunal's order requiring it to vacate the premises. The respondents opposed, submitting that under Section 15(4) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, the decision of the Environment and Land Court on an appeal from the Tribunal is final and not subject to further appeal, so there is no right of appeal to the Court of Appeal. The Court agreed, applying its earlier decision in Ramadhan Mohamed Ali v Hashim Salim Ghanim, and held that there can be no arguable appeal where there is no right of appeal. The Court further held that the ELC ruling was a negative order, merely dismissing the application, and as such incapable of execution and incapable of being stayed, citing Kanwal Sarjit Singh Dhiman, Western College of Arts and Applied Sciences v Oranga and Raymond M. Omboga. The application was dismissed with costs to the respondents. The binding propositions for lower courts are the finality of ELC decisions under Section 15(4) and the rule that negative orders cannot be stayed.

Key legal issues

#
01

Jurisdiction - absence of a right of appeal to the Court of Appeal

Holding

The Court has no jurisdiction because Section 15(4) of the Landlord and Tenant Act renders the decision of the Environment and Land Court on appeal from the BPRT final and not subject to further appeal.

Reasoning

The Court examined the proviso to Section 15(4), which states that the decision of the Environment and Land Court on any appeal under the Act is final and not subject to further appeal. Relying on its earlier decision in Ramadhan Mohamed Ali v Hashim Salim Ghanim, which itself endorsed Premchand Nathu v Kariuki, the Court held that there is no second appeal to this Court from the Tribunal decision as processed through the ELC. Without a right of appeal, there can be no arguable appeal, so the twin test under rule 5(2)(b) fails at the first limb.

p. 2
02

Stay of a negative order

Holding

A ruling that merely dismisses an application for stay, without ordering anyone to do or refrain from doing anything, is a negative order incapable of execution and incapable of being stayed.

Reasoning

The Court applied the jurisprudence in Kanwal Sarjit Singh Dhiman v Keshavji Jivraj Shah, Western College of Arts and Applied Sciences v Oranga and Raymond M. Omboga v Austine Pyan Maranga, all of which hold that a negative order incapable of execution cannot be stayed. Since the ELC ruling merely declined stay and did not order any party to do anything or pay any sum (save costs), the application to stay it was misconceived and could not satisfy the nugatory- limb of the rule 5(2)(b) test.

p. 3

Legal principles established

#
  • Under the proviso to Section 15(4) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, there is no right of second appeal to the Court of Appeal from a decision of the Environment and Land Court on appeal from the Business Premises Rent Tribunal; and there can be no arguable appeal where there is no right of appeal.
  • A negative order - one that merely dismisses an application and does not order any party to do or refrain from doing anything or to pay any sum - is incapable of execution and therefore incapable of being stayed.

Court orders

#
  1. 1.The Notice of Motion dated 16th July 2018 be and is hereby dismissed with costs

Authorities

#

Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301Section 15(1), (2), (3), (4)
  • Court of Appeal RulesRule 5(2)(b)

Cases cited (8)

  • Githunguri vs. Jimba Credit Corporation Ltd. (No. 2)
    (1988) KLR 838
  • J.K. Industries Ltd. vs. Kenya Commercial Bank Ltd.
    [1982 – 88] 1 KAR 1088
  • Reliance Bank Limited (In Liquidation) vs. Norlake Investments Limited
    [2002] 1EA 227
  • Ramadhan Mohamed Ali vs. Hashim Salim Ghanim
    [2016] eKLR
  • Premchand Nathu & Co Ltd. & 4 Others v. Kariuki
    CA No. 33 of 1990
  • Kanwal Sarjit Singh Dhiman vs. Keshavji Jivraj Shah
    [2008] eKLR
  • Western College of Arts and Applied Sciences vs. Oranga & Others
    (1976-80) 1 KLR
  • Raymond M. Omboga vs. Austine Pyan Maranga
    Kisii HCCA No 15 of 2010
On appeal from
Environment and Land Court, Milimani, Nairobi (K. Bor, J.)
ELC Appeal No. 41 of 2017
Jurisdiction invoked
Rule 5(2)(b) of the Court of Appeal Rules - application for stay of execution/injunction pending appeal

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (1)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Shade Manufacturers and Hotel Limited v Serah Mweru Mutuu & 3 others [2018] KECA 205 (KLR)", Case Analysis (2018). Civil Application NAI 207 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/205/eng@2018-10-26

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