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ELCPartially Allowed· [2018] KEELC 511 (KLR)

Bawan Limited & 6 others v Unlimited Directions Kenya Limited [2018] KEELC 511 (KLR)

High Court of Kenya
6 December 2018
KBK. Bor
1,292 words in judgment
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The bottom line

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Kenya's High Court ruled that a company's emails admitting rent arrears justified judgment without a full trial, but only at the original rent rate.

What this practically means

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Executive summary

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The Plaintiffs sued the Defendant for rent arrears arising from leases of eight (or nine) apartments let at Kshs. 100,000/= per month each from 1/2/2014 for two years. They claimed the rent was renewed and revised to Kshs. 150,000/= per apartment, and that the Defendant admitted indebtedness through email correspondence, including emails of 29/1/2015, 30/1/2015 and 25/8/2015 in which the Defendant's director, Mr. Bob Kioko, admitted delays, proposed remittances and apologised for amounts owed. Dishonoured cheques were issued to the 2nd, 5th and 6th Plaintiffs. The Plaintiffs sought judgment on admission for Kshs. 26,650,000/= as at 31/12/2016 under their application dated 31/1/2017. The Defendant denied the revised rent, disputed the sums claimed, alleged unaccounted payments without producing evidence of them, and urged that triable issues existed, relying on Vehicle and Equipment Leasing Limited v Coca-Cola Juices Kenya Ltd and Ideal Ceramics v Suraya Property Group Ltd on the purpose of Order 13. The court held that the emails confirmed an admission of rent arrears and that no triable issue existed. However, since the Debt Settlement Agreement and revised leases were never executed, the Plaintiffs were only entitled to rent at Kshs. 100,000/= per apartment per month until handover. Judgment on admission was entered for the Plaintiffs computed at that rate, with interest at court rates until payment in full, and the Plaintiffs were awarded the costs of the application and the suit. Judgment was delivered at Nairobi on 6th December 2018 by K. Bor, Judge.

Key legal issues

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01

Whether the Defendant's emails constituted a clear and unequivocal admission of indebtedness warranting judgment on admission

Holding

The emails by the Defendant's director admitting rent arrears and promising payment confirmed an admission of indebtedness; there was no triable issue and judgment on admission was entered

Reasoning

The court examined the emails of 29/1/2015, 30/1/2015, 25/8/2015 and 26/8/2016, in which the Defendant's director acknowledged delays in paying rent, proposed remittances, and apologised for amounts owed. Although the Defendant denied owing the claimed sums and alleged unaccounted payments, it provided no evidence of such payments. The correspondence showed clear admissions of arrears, leaving no genuine question for trial.

p. 2
02

Whether the rent was validly revised from Kshs. 100,000/= to Kshs. 150,000/= per apartment

Holding

The Plaintiffs were only entitled to rent at Kshs. 100,000/= per month per apartment, as the revised rate was never agreed in an executed agreement

Reasoning

The Defendant denied any agreement to renew the leases or revise the rent. The heads of terms provided for rent of Kshs. 100,000/= per month. The Debt Settlement Agreement and draft leases prepared in 2016 were never executed, so the Plaintiffs' computation at Kshs. 150,000/= from January 2016 had no contractual basis. Judgment was therefore computed at the lower rate until the premises were handed over.

p. 2

Legal principles established

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  • A party whose entitlement is evidently due and admitted is entitled to judgment without trial, as there is no real question or issue to litigate

Court orders

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  1. 1.Judgment on admission entered for the Plaintiffs, computed at Kshs. 100,000/= per month per apartment, together with interest at court rates until payment in full
  2. 2.Plaintiffs awarded the costs of the application and the suit

Authorities

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Legislation

  • Civil Procedure RulesOrder 13

Cases cited (2)

  • Vehicle and Equipment Leasing Limited v Coca-Cola Juices Kenya Ltd
    [2017] eKLR
  • Ideal Ceramics v Suraya Property Group Ltd
    HCCC No. 408 of 2016 (unreported)
Jurisdiction invoked
Original civil jurisdiction under Order 13 of the Civil Procedure Rules (judgment on admission)

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, "Bawan Limited & 6 others v Unlimited Directions Kenya Limited [2018] KEELC 511 (KLR)", Case Analysis (2018). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/511/eng@2018-12-06

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