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ELCAllowed(Environment and Land Case, Malindi – application dated 14th May 2014)· [2014] KEELC 88 (KLR)

Umra Limited t/a Malindi Supermarket v Mohamed Swaleh Hemed & another [2014] KEELC 88 (KLR)

Environment and Land Court
21 November 2014
733 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court blocked a landlord from auctioning a tenant's goods over a disputed rent hike until the rent tribunal decides what rent is actually owed.

What this practically means

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Executive summary

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The Plaintiff, a supermarket tenant on portion number 1099 Malindi, applied by Notice of Motion dated 14th May 2014 for an injunction restraining the 1st and 2nd Defendants from executing a proclamation of attachment and sale dated 9th May 2014, pending the hearing and determination of its Reference in Business Premises Rent Tribunal Case No. 94 of 2013. The Plaintiff deponed that it held a controlled tenancy at Kshs.3,500 per month under Cap 301; that the 1st Defendant purported to be landlord, raised the rent to Kshs.7,000 and then to Kshs.100,000 per month, and twice instructed the 2nd Defendant to levy distress (prompting CMCC No. 49 of 2013 and the BPRT reference). The 1st Defendant opposed, arguing res sub judice and res judicata by virtue of CMCC No. 49 of 2013, non-prosecution of the Tribunal reference, and non-payment of current rent. The court held that only the High Court/Environment and Land Court may grant an injunction pending a BPRT matter, so the earlier subordinate court suit seeking injunctive relief was null and void. Considering the drastic rent increase and that distress would render the pending Reference nugatory, the court issued an injunction maintaining the status quo pending the Tribunal's determination of the payable rent, after which distress may issue for arrears found payable. The application dated 14th May 2014 was allowed as prayed, with costs provided for.

Key legal issues

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01

Whether an injunction should issue to preserve the status quo pending the Tribunal's determination of the payable rent

Holding

An injunction was warranted because the Defendants' distress for contested rent would render the pending Tribunal reference nugatory.

Reasoning

The court found the tenancy controlled under Cap 301 and the rent increase from Kshs.7,000 to Kshs.100,000 per month contested before the Tribunal. Levying distress before the Tribunal determined the payable rent would prejudice the Plaintiff and render the Reference nugatory. The injunction preserves the status quo; after determination, the Defendant may levy distress for arrears as found payable.

p. 2
02

Whether the Defendants' res judicata/sub judice objections based on Malindi CMCC No. 49 of 2013 succeed

Holding

The court observed that the earlier subordinate court suit seeking injunctive orders was null and void for want of jurisdiction, implicitly rejecting the objections.

Reasoning

The court held that subordinate courts lack jurisdiction to grant injunctions pending BPRT matters; consequently the earlier CMCC proceedings in which the Plaintiff sought injunctive orders were null and void. This undermined rather than supported the Defendants' res judicata and sub judice objections, and the application was allowed as prayed.

p. 2

Legal principles established

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  • Only the High Court/Environment and Land Court may issue an injunction pending the hearing and determination of a matter before the Business Premises Rent Tribunal; a subordinate court lacks jurisdiction to grant such injunctions.

Court orders

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  1. 1.An injunction issued restraining the 1st and 2nd Defendants, their servants, agents, representatives and/or employees from executing the proclamation of attachment and sale dated 9th May 2014 against the Plaintiff, pending the hearing and determination of BPRT Case No. 94 of 2013
  2. 2.Maintenance of the status quo pending determination of the payable monthly rent by the Business Premises Rent Tribunal
  3. 3.The Plaintiff's Application dated 14th May 2014 allowed as prayed

Authorities

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Legislation

  • Landlord and Tenant (Shops and Catering Establishment) ActCap 301
Jurisdiction invoked
Jurisdiction of the High Court/Environment and Land Court to grant injunction pending hearing before the Business Premises Rent Tribunal under the Landlord and Tenant (Shops and Catering Establishment) Act (Cap 301)

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, "Umra Limited t/a Malindi Supermarket v Mohamed Swaleh Hemed & another [2014] KEELC 88 (KLR)", Case Analysis (2014). (Environment and Land Case, Malindi – application dated 14th May 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2014/88/eng@2014-11-21

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