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ELCDismissedELC Case (Mombasa) – Notice of motion dated 24th February 2015; related Business Premises & Rent Tribunal Case No BPRTC No 17 of 2015· [2015] KEELC 184 (KLR)

Forthhotel Limited T/Coast Car Park & Amvesment Centre v Tourism Finance Corporation [2015] KEELC 184 (KLR)

Environment and Land Court
18 September 2015
1,985 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court ruled that tenants of state corporations don't get special legal protection, so a government landlord can sell the premises after giving reasonable notice.

What this practically means

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Executive summary

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The plaintiff, a tenant of L.R No MSA Block XXV/169, Mombasa, brought a notice of motion dated 24th February 2015 under sections 1A, 1B and 3A of the Civil Procedure Act and Order 40 of the Civil Procedure Rules, seeking an interlocutory injunction restraining the defendant, the Kenya Tourism Development Corporation, from offering for sale, selling or leasing the suit property or interfering with his occupation, pending the hearing of a reference in Business Premises & Rent Tribunal Case No 17 of 2015. The plaintiff argued the tenancy, though unwritten, had lasted over 20 years and was protected under Cap 301; that the defendant's notice of intended sale was not in the prescribed form; and that he would suffer irreparable loss if evicted unprocedurally. The defendant, a state corporation lessee from the Government for 99 years, opposed, contending that its tenancies were not controlled tenancies under the proviso to section 2(1) of Cap 301, that it had given sufficient notice, and that the application was an abuse of process. The court framed three issues: whether the tenancy was controlled; whether the notice was sufficient; and whether the application was an abuse of process. It held that the tenancy was not controlled because the defendant was a government corporation; that the notice was sufficient since no prescribed format applied and the plaintiff had three months to vacate or bid; and that the application was not an abuse of process since the Tribunal cannot issue injunctions. The application was dismissed with costs to the respondent.

Key legal issues

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01

Whether the tenancy was a controlled tenancy protected under Cap 301

Holding

The tenancy was not controlled by operation of law because the respondent is a government corporation, and the proviso to section 2(1) of Cap 301 excludes tenancies to which the Government is a party

Reasoning

The applicant himself described the respondent as a statutory body established under the laws of Kenya. The proviso to section 2(1) of Cap 301 excludes tenancies to which the Government is a party. The cases cited by the applicant were persuasive, involved no government body, and concerned rent disputes rather than a landlord seeking vacant possession for sale. The court therefore found the tenancy was not controlled.

p. 3
02

Whether the notice of intended sale/termination dated 10th February 2015 was sufficient

Holding

The notice was sufficient; since the tenancy was not controlled, no prescribed format was required, and the applicant was given three months from advertisement to vacate or bid

Reasoning

Having found the tenancy was not controlled, no prescribed format under Cap 301 was required, so the notice could not be defective for form. The notice was served by registered mail and acknowledged by the applicant, who responded expressing an interest to buy or enter a joint venture. The applicant did not complain of insufficient duration. The landlord's right to vacant possession is supported by section 24 of the Land Registration Act and article 40 of the Constitution.

p. 3
03

Whether the application was misconceived and an abuse of the court process

Holding

The application was not an abuse of process because the Tribunal's powers under section 12(4) of Cap 301 do not clearly extend to injunctions and cannot oust the ELC's jurisdiction under section 13 of the ELC Act

Reasoning

Although the respondent argued that section 12(4) of Cap 301 empowers the Tribunal to make sufficient orders, the court read the provision and found it does not clearly confer power to issue injunctions. The applicant had filed the suit precisely because the Tribunal cannot grant injunctions, and there was no similar application pending before the Tribunal. The application was therefore not an abuse of process.

p. 4

Legal principles established

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  • A tenancy to which the Government, a community or a local authority, or a government/state corporation as landlord, is a party is not a controlled tenancy under Cap 301
  • A tenant cannot impose himself on a landlord who decides to take back control of his premises (as held in Katsuri Limited v Nyeri Wholesalers Limited)
  • Section 12(4) of Cap 301 does not clearly give the Business Premises Rent Tribunal power to issue injunctions, and in any event does not oust the jurisdiction of the Environment and Land Court

Court orders

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  1. 1.The notice of motion dated 24th February 2015 seeking an injunction pending the BPRT reference is dismissed
  2. 2.Costs of the application awarded to the respondent

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure RulesOrder 40 Rules 1, 2, 3, 5, 9
  • Land ActSection 60(2)
  • Landlord & Tenant (Shops, Hotels and Catering Establishments) Act Cap 301Sections 2(1) (proviso), 4(1) and (2), 12(4)
  • Constitution of KenyaArticles 40 and 162(2)
  • Environment and Land Court ActSection 13
  • Land Registration ActSection 24(a)
  • Tourism Act(establishment of the respondent)

Cases cited (3)

  • Anthony Muli T/A Mutembei Muthoka General Stores v Kilalani Farmers Co-Op Society Ltd
    E & L No 467 of 2014
  • Eliud Wanyama v Kenya Plant Health Inspectorate Services (KEPHIS)
    (2010) eKLR
  • Katsuri Limited v Nyeri Wholesalers Limited
    (2014) eKLR
Jurisdiction invoked
Article 162(2) of the Constitution and Section 13 of the Environment and Land Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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

Cite this brief

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Cite this brief

Caselaw, "Forthhotel Limited T/Coast Car Park & Amvesment Centre v Tourism Finance Corporation [2015] KEELC 184 (KLR)", Case Analysis (2015). ELC Case (Mombasa) – Notice of motion dated 24th February 2015; related Business Premises & Rent Tribunal Case No BPRTC No 17 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2015/184/eng@2015-09-18

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