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ELCDismissedNot stated in judgment· [2018] KEELC 3918 (KLR)

Hussein Isaak Hassan & another v Muguga Investment Company Ltd & another [2018] KEELC 3918 (KLR)

Environment and Land Court
12 March 2018
KBK. BOR
683 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court confirmed it can hear landlord-tenant lease disputes, rejecting claims that the Rent Tribunal has exclusive control.

What this practically means

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Executive summary

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The Defendants raised preliminary objections dated 14/4/2015 contending that the Environment and Land Court lacked jurisdiction and that the Business Premises Rent Tribunal was the proper forum. The 2nd Defendant relied on a lease dated 26/4/2014 registered on 3/12/2014, arguing that the Plaintiffs' leases had been converted into periodic tenancies requiring only notice. The Plaintiffs opposed, asserting the High Court's unlimited jurisdiction and the validity of their leases with the 1st Defendant over premises in Eastleigh, Nairobi: the 1st Plaintiff held a 6-year lease from 1/1/2012, and the 2nd Plaintiff held leases dated 22/11/2012 and 4/7/2014 over stalls and shops on L.R. No. 36/VII. The 1st Defendant had nonetheless granted the 2nd Defendant a 15-year lease from 1/3/2015 at Kshs. 1 million advance rent, for construction of a 5-storeyed shopping mall. The Plaintiffs sought injunction, general damages and quiet possession until expiry of the leases, and cited Said Majid Said v James Titus Kisia, where it was held that the Tribunal lacked jurisdiction to grant declaratory and injunctive relief. K. Bor J held that under Article 162(2)(b) of the Constitution and Sections 13(1), 13(2)(d) and 13(4) of the Environment and Land Court Act, the court has original jurisdiction over disputes concerning contracts and instruments granting enforceable interests in land. The preliminary objections were dismissed with costs to the Plaintiffs.

Key legal issues

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01

Jurisdiction of the Environment and Land Court vis-à-vis the Business Premises Rent Tribunal

Holding

The court has jurisdiction to hear the Plaintiffs' suit since the dispute concerns leases and interests in land under Section 13(2)(d) of the Environment and Land Court Act.

Reasoning

Article 162(2)(b) mandated Parliament to establish courts with the status of the High Court for disputes relating to land and occupation of land. The Environment and Land Court Act, Section 13(1), grants original and appellate jurisdiction over such disputes, and Section 13(2)(d) covers contracts and instruments granting enforceable interests in land. The Plaintiffs seek injunction, damages and quiet possession under leases, engaging that jurisdiction. Section 13(4) also confers appellate jurisdiction over local tribunals. The preliminary objections therefore fail.

p. 2

Legal principles established

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  • The Environment and Land Court has original jurisdiction over disputes relating to contracts and instruments granting enforceable interests in land, including leases, notwithstanding the existence of the Business Premises Rent Tribunal.

Court orders

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  1. 1.The Defendants' preliminary objections are dismissed with costs to the Plaintiffs

Authorities

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Legislation

  • Constitution of KenyaArticle 162(2)(b)
  • Environment and Land Court ActSection 13(1), 13(2)(d), 13(4)

Cases cited (1)

  • Said Majid Said v James Titus Kisia
    [2015] eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13(1), (2)(d) and (4) 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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Cite this brief

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Cite this brief

Caselaw, "Hussein Isaak Hassan & another v Muguga Investment Company Ltd & another [2018] KEELC 3918 (KLR)", Case Analysis (2018). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3918/eng@2018-03-12

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