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ELCDismissedRuling in appeal from Business Premises Rent Tribunal Case No. 2 of 2015, Embu· [2016] KEELC 1121 (KLR)

Gichoni Ngangu & another v Esther Mbandi Kagina [2016] KEELC 1121 (KLR)

High Court of Kenya
26 February 2016
1,561 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The High Court refused to pause a rent tribunal's order because the tenants showed no real loss and had ignored a prior court order on where rent should be paid.

What this practically means

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Executive summary

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This is a ruling of the High Court at Embu (Olao J) delivered on 26th February 2016 on the appellants' Notice of Motion dated 29th June 2015 seeking a stay of execution of the orders of the Business Premises Rent Tribunal in Tribunal Case No. 2 of 2015, Embu. On 4th June 2015 the Tribunal ordered the tenants to pay the respondent Ksh. 286,614 within thirty days, failing which distress would be levied, and allowed the landlord to issue notices under CAP 301. The tenants, who had occupied premises on L.R No. EMBU/MUNICIPALITY/111/37 since 2008, contended they had paid rent promptly to the administrators of the Estate of Silas Kagina Gichoni and that no rent was due. They appealed on 25th June 2015 and filed the stay application on 30th June 2015. The respondent, Esther Mbandi Kagina, deponed that she solely owned the suit premises and that the tenants had colluded with Christopher Ndaru Kagina to deny her the rent. Applying Order 42 Rule 6 of the Civil Procedure Rules and the principles in Kenya Shell Ltd v Kibiru, the court held that the applicants failed to demonstrate substantial loss, accepted the application was filed without unreasonable delay, but found that rent paid to Christopher Ndaru Kagina violated Ong'udi J's order of 11th October 2012 directing that rent from the suit premises be drawn by the respondent. Not approaching the court with clean hands, the applicants were disentitled to discretionary relief. The application was dismissed with costs.

Key legal issues

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01

Whether substantial loss was demonstrated

Holding

The applicants failed to show what substantial loss they would suffer if stay was not granted; no averment of loss appeared in their affidavits

Reasoning

The court relied on Kenya Shell Ltd v Kibiru, holding that evidence of substantial loss is essential to a stay application. The supporting and supplementary affidavits of the 2nd applicant made no averment of loss. Further, the Tribunal had already found rent unpaid, and an express court order directed rent be paid to the respondent, which had been violated.

p. 3
02

Whether payment of rent to a third party disentitled the applicants to stay

Holding

Payment of rent to Christopher Ndaru Kagina violated the order of Ong'udi J. dated 11th October 2012 directing rent be paid to the respondent, disentitling the applicants

Reasoning

Succession Cause orders directed that Esther Mbandi Kagina draw rents from the suit premises from 11th October 2012. Any rent paid to Christopher Ndaru Kagina was in violation of that order. Since a litigant must approach the court with clean hands, that violation disentitled the applicants from obtaining discretionary stay relief.

p. 3
03

Whether the application was made without unreasonable delay

Holding

The court accepted the application was filed without unreasonable delay

Reasoning

The Tribunal's orders were made on 4th June 2015; the memorandum of appeal was filed on 25th June 2015 and the application on 30th June 2015. The court expressly found this constituted no unreasonable delay, but that alone could not sustain the application absent proof of substantial loss.

p. 3

Legal principles established

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  • Substantial loss is the cornerstone for granting stay of execution pending appeal; without evidence of substantial loss, stay should not be granted
  • A party seeking discretionary relief must approach the court with clean hands

Court orders

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  1. 1.The appellants/applicants' Notice of Motion dated 29th June 2015 is dismissed with costs

Authorities

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Legislation

  • Civil Procedure RulesOrder 40 Rules 1 and 2
  • Civil Procedure RulesOrder 42 Rule 6(1) and (2)
  • Civil Procedure ActSections 3 and 3A
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (CAP 301)

Cases cited (1)

  • Kenya Shell Ltd v Kibiru
    (1986) K.L.R 410
On appeal from
Business Premises Rent Tribunal, Embu
Tribunal Case No. 2 of 2015
Jurisdiction invoked
Order 42 Rule 6 of the Civil Procedure Rules (stay of execution pending appeal), invoked alongside Sections 3 and 3A of the Civil Procedure Act

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, "Gichoni Ngangu & another v Esther Mbandi Kagina [2016] KEELC 1121 (KLR)", Case Analysis (2016). Ruling in appeal from Business Premises Rent Tribunal Case No. 2 of 2015, Embu. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2016/1121/eng@2016-02-26

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