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ELCAllowedNairobi ELRC (Environment & Land) Case – plaint dated 19th February, 2018· [2018] KEELC 3532 (KLR)

Pampa Grill Limited & another v North Lake Limited & another [2018] KEELC 3532 (KLR)

Environment and Land Court
12 April 2018
4,621 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court restored a tenant evicted through secretly obtained, then withdrawn, court orders — landlords must follow due process even when a lease has expired.

What this practically means

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Executive summary

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The 1st plaintiff leased LR No. 330/352, Nairobi from the 1st defendant for a term ending 30th November 2017, operating a restaurant through the 2nd plaintiff. After notice of non-renewal, the plaintiffs paid December 2017 rent and a further security deposit of Kshs. 1,292,073/-. Following an order from the Business Premises Rent Tribunal restraining interference with possession, the 1st defendant obtained ex parte temporary eviction orders from the Chief Magistrate's Court, executed them through Siuma Auctioneers on 18th January 2018, and then withdrew the magistrate's suit on 25th January 2018. The plaintiffs sued and sought a restorative injunction by Notice of Motion dated 19th February 2018. The defendants opposed on grounds of jurisdiction, delay, expiry of the lease and a claimed takeover by the 2nd defendant as innocent third party. The court held that the temporary eviction orders stood discharged upon withdrawal of the magistrate's suit, that even trespassers must be evicted through due process, that post-expiry payments did not create a new lease under section 60(2) of the Land Act, and that the 1st defendant was estopped from requiring the plaintiffs to challenge the orders in a suit it had itself withdrawn. Finding the 30-day delay not inordinate and no proof of the 2nd defendant's good-faith possession, the court granted the injunction on terms: the 1st plaintiff to deposit Kshs. 10,000,000/- as security in a joint interest-earning account within 14 days, whereupon the defendants would vacate and hand over the property; the 1st plaintiff to pay monthly rent of Kshs. 430,691/- pending trial. The plaintiffs were awarded the costs of the application.

Key legal issues

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01

Whether a temporary mandatory (restorative) injunction could be granted for restoration of possession after eviction

Holding

The plaintiffs established a prima facie case of unlawful eviction and special circumstances justifying a restorative injunction; the discharge of the temporary eviction orders by withdrawal of the Chief Magistrate's Court suit meant the defendants had no lawful basis to retain possession.

Reasoning

The court distinguished prohibitory from mandatory/restorative injunctions, applying the higher threshold for mandatory injunctions: a very strong case and special circumstances. The temporary eviction orders were conditional on the suit being heard; its withdrawal discharged them, reviving the plaintiffs' right to possession. The uncontroverted allegations of non-service and concealment established a prima facie wrongful eviction.

p. 3
02

Whether this court could question the Chief Magistrate's Court orders or whether it lacked jurisdiction

Holding

The court held it was not sitting on appeal or review, but nothing precludes it from interrogating the validity of a magistrate's court order; since the temporary orders stood discharged upon withdrawal, they could not shield the defendants.

Reasoning

The defendants argued the ELC lacked jurisdiction over the magistrate's court orders and no supervisory powers under Article 165(6) and (7). The court accepted it was not reviewing those orders but held the orders were temporary and died with the withdrawn suit. The 1st defendant, having withdrawn the suit after executing the eviction, was estopped from insisting the plaintiffs return to the lower court, and no appeal could lie after withdrawal.

p. 4
03

Whether post-expiry rent payments created a new lease

Holding

By virtue of section 60(2) of the Land Act, 2012, the payments could not create a new lease, but the defendants were still required to follow due process in evicting the plaintiffs.

Reasoning

The court agreed the lease expired on 30th November 2017 and accepted payments thereafter did not create a holding over. However, it held that even trespassers cannot be evicted without due process. The uncontroverted allegations of ex parte orders executed then concealed by withdrawal showed due process was not followed, sustaining the claim regardless of the lease's expiry.

p. 4
04

Whether the suit was brought after inordinate delay and whether the 2nd defendant was an innocent third-party occupier

Holding

A 30-day delay was not inordinate, and no evidence was placed before the court that the 2nd defendant took possession in good faith without notice of the dispute.

Reasoning

The application was filed 30 days after the eviction; the court was not convinced this was inordinate in the circumstances. On the alleged takeover by a third party, the defendants adduced no evidence of when or on what terms possession passed, nor of the 2nd defendant's good faith, so equity did not allow perpetuating an illegal eviction.

p. 4

Legal principles established

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  • Temporary eviction orders lapse upon withdrawal of the suit in which they were made, and parties revert to their prior positions
  • A landlord must obtain an order of a competent court or statutory tribunal to obtain possession unless the tenant consents to give up possession
  • Payments on account of rent after expiry of a lease do not create a new lease by virtue of section 60(2) of the Land Act, 2012
  • A party who withdraws a suit to prevent the opposing party from defending itself is estopped from requiring that party to challenge the orders in the withdrawn suit

Court orders

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  1. 1.Prayer 3 of the application granted on condition that the 1st plaintiff deposits Kshs. 10,000,000/- in a joint interest-earning account in the names of the advocates for the parties as security within 14 days
  2. 2.Upon such deposit, the defendants to vacate and hand over LR No. 330/352, Nairobi to the 1st plaintiff
  3. 3.Upon obtaining possession, the 1st plaintiff to pay the 1st defendant Kshs. 430,691/- per month as rent pending hearing and determination of the suit
  4. 4.The plaintiffs to have the costs of the application

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 165(6) and (7)
  • Land Act, 2012Section 60(2)

Cases cited (7)

  • New Ocean Transport Limited & another vs. Anwar Mohamed Bayusuf Limited
    CA 16 of 2014
  • Giella vs. Cassman Brown and Co. Ltd.
    (1973) E.A 358
  • Mrao Limited vs. First American Bank Limited & 2 Others
    (2003) KLR 125
  • Nguruman Limited vs. Jan Bonde Nielsen & 2 Others
    (2014) eKLR
  • Locabail International Finance Limited v Agro-Export
    (1988) 1 All ER 901
  • Shepherd Homes Ltd. –vs.-Shandahu
    [1971] 1 Ch.304
  • Gusii Mwalimu Investment Co. Ltd & 2 Others vs. Mwalimu Hotel Kisii Ltd
    Civil Appeal No.160 of 1995
Jurisdiction invoked
Environment and Land Court jurisdiction over disputes relating to land and occupation of premises

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, "Pampa Grill Limited & another v North Lake Limited & another [2018] KEELC 3532 (KLR)", Case Analysis (2018). Nairobi ELRC (Environment & Land) Case – plaint dated 19th February, 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3532/eng@2018-04-12

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