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ELCDismissedNot stated (appeal from Meru BPRT Reference No. 41A of 2015)· [2017] KEELC 784 (KLR)

Lucy Sharon Mwenda v Susan Kathure Marete (Environment & Land Case 38 of 2016) [2017] KEELC 784 (KLR)

Environment and Land Court
6 December 2017
1,498 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Meru court upheld a landlord's termination notice and confirmed it cannot enforce an oral renovation refund deal not in the lease.

What this practically means

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Executive summary

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This is a first appeal to the Environment and Land Court at Meru, decided by L.N. Mbugua, ELC Judge, against a judgment of the Business Premises Rent Tribunal in Meru Reference No. 41A of 2015 delivered on 15 July 2016, which dismissed the tenant's reference and allowed the landlord's Notice of termination dated 11.06.15. The appellant, a saloon operator in Plot No. Block 79 (B), Meru Municipality, advanced eleven grounds, principally that the landlord had not proved an intention to occupy the premises for business, that the notice was defective under section 7(1)(g) of Cap 301, and that the tribunal wrongly decided issues such as rent arrears not raised in the notice. The appellant also contended that the tribunal ought not to have entertained the second reference after deciding Reference No. 3 of 2014, and relied on a claim of Sh. 148,802 for renovations made to the premises. The respondent supported the tribunal's decision, citing Peters v Sunday Post, Kiruga v Kiruga and Lazaro Kabere v Ndege Makau. The court found the dispute's root was the oral renovation arrangement, a contractual matter outside the tribunal's mandate and beyond the court's remit, applying National Bank of Kenya v Pipealastic Samkolit on the sanctity of contract. It held that the grounds in the Notice of 11.06.15 were provided for under section 7 of Cap 301, and that the appellant, having accepted the earlier decision permitting a fresh notice, could not impugn it. The appeal was dismissed, stay orders vacated, and costs awarded to the respondent.

Key legal issues

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01

Validity of the landlord's Notice dated 11.06.15 under section 7 of Cap 301

Holding

The grounds listed in the Notice were provided for under section 7 of Cap 301 and the tribunal properly allowed it

Reasoning

The court found that the fall-out between the parties was the tenant's demand for a refund of renovation costs, which was an oral contractual arrangement outside the tribunal's statutory mandate. The landlord's first notice of 13.02.14 failed under section 7, but the tribunal itself permitted issuance of a fresh notice, which the landlord duly issued on 11.06.15. The appellant, having been content with the earlier decision that authorised a fresh notice, could not then attack the subsequent notice.

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02

Whether the court could intervene in the tenant's claim for refund of renovation costs

Holding

No - the claim is a contractual matter which neither the tribunal nor the court could adjudicate

Reasoning

The court applied the principle from National Bank of Kenya Ltd v Pipealastic Samkolit (K) Ltd that courts cannot rewrite contracts. The renovation arrangement was oral and the parties are bound by their bargains; equity will not relieve a party from a bad bargain absent pleaded and proved coercion, fraud or undue influence.

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03

Whether the tribunal erred in entertaining reference No. 41A of 2015 after deciding reference No. 3 of 2014

Holding

No - the tribunal itself had allowed the landlord to issue a fresh notice, so entertaining the reference on that fresh notice was proper

Reasoning

The court noted that the first notice of 13.02.14 did not meet section 7 requirements, and it was the tribunal's own decision in reference No. 3 of 2014 that permitted a fresh notice. The appellant accepted that earlier decision without appealing, so she could not complain that the tribunal entertained the subsequent reference.

p. 3

Legal principles established

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  • A court cannot rewrite a contract between parties; parties are bound by the terms of their contract unless coercion, fraud or undue influence are pleaded and proved
  • A party cannot escape from the consequences of their bargains

Court orders

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  1. 1.The appeal herein is dismissed
  2. 2.Any stay orders given in respect of these proceedings are hereby vacated
  3. 3.Appellant is to pay costs of this appeal

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 7 / section 7(1)(g)

Cases cited (5)

  • PETERS VS SUNDAY POST LIMITED
    (1958) E.A 424
  • KIRUGA VS KIRUGA & ANOTHER
    (1988) K.L.R 348
  • LAZARO KABERE VS NDEGE MAKAU AND ANOTHER
    Civil Appeal No. 335 of 2010
  • National Bank of Kenya Ltd vs. Pipealastic Samkolit (K) Ltd
    (2002) EA 503
  • Fina Bank Limited Vs. Spares and Industries Ltd
    (2001) EA 52
On appeal from
Business Premises Rent Tribunal (BPRT), Meru
Reference No. 41A of 2015
Jurisdiction invoked
First appellate jurisdiction over the Business Premises Rent Tribunal (Landlord and Tenant (Shops, Hotels and Catering Establishments) 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, "Lucy Sharon Mwenda v Susan Kathure Marete (Environment & Land Case 38 of 2016) [2017] KEELC 784 (KLR)", Case Analysis (2017). Not stated (appeal from Meru BPRT Reference No. 41A of 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2017/784/eng@2017-12-06

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