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ELCPartially AllowedNot stated on the face of the ruling (Misc/Notice of Motion dated 28th October 2020 in ELC suit at Thika)· [2021] KEELC 3120 (KLR)

Mi-Tech Limited v Catherine Wambui Felistus [2021] KEELC 3120 (KLR)

Environment and Land Court
27 May 2021
3,737 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Environment and Land Court confirmed it, not the Rent Tribunal, handles disputes over written ten-year leases, and set aside orders obtained without proper service.

What this practically means

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Executive summary

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This ruling by L. Gacheru J of the Environment and Land Court at Thika, delivered virtually on 27th May 2021, determines the Defendant/Applicant's Notice of Motion dated 28th October 2020 seeking setting aside of ex parte orders issued on 15th October 2020, an order compelling the Plaintiff to pay rent under the lease dated 25th January 2018, liberty to distress for rent, and striking out of the suit for want of jurisdiction. The Applicant contended the dispute belonged to the Business Premises and Rent Tribunal and the Kiambu magistrates' courts, and that service of the application and hearing notice was irregular. The Respondent maintained the suit fell under Article 162(2)(b) and Section 13(2) of the Environment and Land Court Act, that the tenancy was not controlled (written ten-year lease, subject matter exceeding Kshs. 40 million), and that service on her guard Josephine was proper. Framing two issues - jurisdiction and entitlement to relief - the Court applied the Lillian s 'downs tools' doctrine, held the ten-year written lease without a termination clause was not a controlled tenancy, and found it had jurisdiction, refusing striking out. On setting aside, the Court found the process server's affidavit did not clearly show the hearing notice was served, no inordinate delay was evident, and the Plaintiff was in rent arrears and sitting on injunction orders without payment; it exercised its discretion to set aside the ex parte orders. The Court cautioned the Defendant's advocate for swearing affidavits on disputed facts. The application was allowed in part with costs in the cause.

Key legal issues

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01

Whether the ELC or the Business Premises and Rent Tribunal has jurisdiction over the dispute

Holding

The ELC has jurisdiction; the tenancy is not a controlled tenancy as it is written, for 10 years, without a termination clause within five years

Reasoning

The Tribunal's jurisdiction under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act is confined to controlled tenancies. Section 2(1) defines a controlled tenancy as one not reduced to writing, or if written, for a period not exceeding five years or with a termination provision within five years. The lease here was in writing for ten years without such a clause, so the Tribunal lacked jurisdiction and the ELC, seized under Article 162(2)(b) and Section 13 of the ELC Act, could entertain disputes over rents and occupation of land.

p. 3
02

Whether the ex parte orders of 15th October 2020 should be set aside

Holding

Yes; no inordinate delay and the process server's affidavit did not clearly show the hearing notice was served, so the Court exercised discretion in the Defendant's favour

Reasoning

Order 51 Rule 15 empowers the Court to set aside ex parte orders. The Court noted uncertainty whether the hearing notice accompanied the Notice of Motion served, noted letters of protest on service, and found only 20 days elapsed between service of the orders and the application, which was not inordinate delay. The Plaintiff was also in rent arrears and sitting on injunction orders without paying, causing no demonstrated prejudice if the orders were set aside.

p. 4
03

The propriety of affidavits sworn by the Defendant's Advocate on disputed facts

Holding

The Court considered the affidavits but cautioned the Advocate against deponing to disputed factual matters

Reasoning

Under Rule 8 of the Advocates (Practice) Rules, 1966, an advocate who may be required as a witness should not appear. The advocate swore to both legal positions and disputed facts. Following the Magnolia principle, the Court avoided the affidavit problem by considering the application on its merits but formally cautioned counsel.

p. 5

Legal principles established

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  • Jurisdiction is everything; a court without jurisdiction must down its tools
  • A written lease for ten years without a termination provision within five years is not a controlled tenancy, so the Business Premises Rent Tribunal has no jurisdiction
  • An application to set aside ex parte orders must be brought without inordinate delay
  • Advocates should not swear affidavits deposing to disputed facts

Court orders

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  1. 1.The ex parte orders granted on 15th October 2020 are set aside
  2. 2.The prayer to strike out the suit for lack of jurisdiction is refused; the suit is not struck out
  3. 3.The application is allowed in part, with costs being in the cause

Authorities

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Legislation

  • Civil Procedure ActSections 1A, 1B, 3, 3A
  • Civil Procedure RulesOrder 40 rule 7; Order 51 rules 3 & 15; Order 21 rule 1
  • Magistrates’ Courts ActSection 9(a)
  • Constitution of Kenya, 2010Article 162(2)(b)
  • Environment and Land Court Act No. 19 of 2011Preamble; Section 13(2)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Chapter 301Section 2(1); Section 12
  • Advocates (Practice) Rules, 1966Rule 8

Cases cited (5)

  • Owners of the Motor Vessel ‘Lillian’ (S) vs Caltex Oil (Kenya) Ltd
    [1989] KLR 1
  • Kaka Mohamed vs Mohamed Ali
    [2018] eKLR
  • Haile Menkerios vs Francis Mureithi & another
    [2019] eKLR
  • Magnolia PVT Limited vs Synermed Pharmaceuticals (K) Ltd
    (2018) eKLR
  • International Community of Women Living With HIV Registered Trustees v Non-Governmental Organizations Co-ordination Board & 2 others; Teresia Otieno (Proposed Interested Party)
    [2019] eKLR
Jurisdiction invoked
Article 162(2)(b) of the Constitution and Section 13 of the Environment and Land Court Act No. 19 of 2011

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, "Mi-Tech Limited v Catherine Wambui Felistus [2021] KEELC 3120 (KLR)", Case Analysis (2021). Not stated on the face of the ruling (Misc/Notice of Motion dated 28th October 2020 in ELC suit at Thika). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/3120/eng@2021-05-27

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