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ELCDismissedEnvironment and Land Appeal 21 of 2022· [2023] KEELC 18488 (KLR)

Systemedia Technologies Limited v Matheka & 3 others

Environment and Land Court
29 June 2023
5,896 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan company lost its appeal because it hadn't paid rent, showing courts refuse to help tenants who break their own lease terms.

What this practically means

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Executive summary

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This was an interlocutory appeal to the Environment and Land Court at Nairobi against a ruling of Hon. Isaac Orenge (SRM) delivered on 2nd March 2018 in Milimani CMCC No. 4210 of 2015 consolidated with CMCC No. 4457 of 2017, dismissing the Appellant's application for an order restraining the Respondents from levying distress, removing or selling proclaimed goods pending hearing of the application. The dispute arose from a lease of premises in Donholm, in which the 1st Respondent demanded backdated rent increments and instructed auctioneers to proclaim the Appellant's goods, prompting two suits that were consolidated. The Appellant advanced eleven grounds of appeal, contending the magistrate duplicated rulings, ruled on the wrong application, failed to address the alleged unlawful unilateral and retrospective rent increases, and erred in finding rent arrears. It sought setting aside of the ruling, refunds totalling over Kshs 4.7 million, release of a Kshs 1,000,000/- appeal security deposit, and costs. The Respondents maintained the Appellant was in rent arrears, had conceded a 5% increase, and that the application was res judicata. The court restated the duty of a first appellate court and the principles governing interference with discretionary decisions, then applied the Giella v Cassman Brown criteria. It found the Appellant was in breach of the lease by failing to pay rent when due and had not demonstrated compliance with its own contractual obligations, and therefore failed to establish entitlement to interlocutory injunctive relief. The appeal was dismissed with each party bearing own costs, the court noting the main suit remains pending before the subordinate court.

Key legal issues

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01

Whether the trial court erred in declining to grant interlocutory injunctive relief

Holding

The trial court properly exercised its discretion; the Appellant failed to establish a prima facie case, being in breach of the lease by failing to pay rent as and when it fell due.

Reasoning

The court applied the Giella v Cassman Brown criteria for interlocutory injunctions. The record showed the Appellant was in breach of the lease by failing to pay rent when due and had conceded being in rent arrears. Having sought an equitable remedy, the Appellant was obliged to demonstrate compliance with its own contractual obligations, which it did not. The appellate court would not interfere with the discretionary decision absent misdirection or plain wrongness.

p. 10
02

What reliefs are appropriate on appeal

Holding

None of the reliefs sought could be granted since the Appellant failed to meet the conditions for the interlocutory relief; the appeal was dismissed with each party bearing own costs.

Reasoning

Having found the Appellant had not met the conditions for interlocutory relief at the lower court, the court held the reliefs sought in the appeal could not be granted. On costs, exercising discretion under Section 27 of the Civil Procedure Act and considering the appeal was from interlocutory proceedings with the main matter still pending before the subordinate court, the court directed each party to bear own costs.

p. 11

Legal principles established

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  • A first appellate court must reconsider and re-evaluate the evidence and draw its own conclusions while giving due allowance to the trial court's advantage of seeing and hearing witnesses
  • An appellate court will not interfere with a discretionary decision unless the discretion was misdirected, misapprehended facts, took or failed to take account of relevant considerations, or the decision is plainly wrong
  • A party seeking equitable relief must demonstrate compliance with its own contractual obligations

Court orders

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  1. 1.The Appeal is devoid of merit and is dismissed
  2. 2.Each party to bear own costs of the Appeal

Authorities

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Legislation

  • Civil Procedure ActSection 27

Cases cited (21)

  • Supa Duka Nakuru Ltd –Vs- Baringo United Co. Ltd
    Nakuru ELC Civil Appeal No. 68 of 2016

    Caution required before ordering back pay of rent as it was never budgeted for by the tenant

  • Antony Muli T/a Mutembei Mathoka General Store V Kilalani Farmers Co-operative Society Ltd
    (2014) eKLR

    Requirement of consultation/notice before rent increase

  • Gatakani Investment Limited Vs Midtown Lodge Limited
    (2003) eKLR

    Professional valuation report is a must before rent increase

  • Kassim Manji & Sons Ltd –Vs- Farid Al – Maary & Another
    (2009) eKLR

    Relied on by Appellant regarding backdated rent increments

  • Macfoy –vs United Africa Co. Ltd
    (1961) 3 All ER 1169

    Cited by Respondents on res judicata / invalidity of acts

  • Popi-In (Kenya) & 3 others -vs- Habib Bank A.G. Zurich
    (1990) eKLR

    Cited by Respondents on res judicata

  • Chateur Radio Service –vs- Pronogram Limited
    (1994) eKLR

    Quantified amounts cannot cause irreparable damage

  • Joseph Itinga Gati –vs- Barclays Bank (K) Ltd
    (2001) eKLR

    Irreparable harm principle

  • Pius Kipchirchir Kogo –vs- Frank Kirudi Tenai
    (2018) eKLR

    Irreparable harm principle

  • Bedrock Security Services Ltd –vs- Nzoia Sugar Company Limited
    (2013) eKLR

    Irreparable harm principle

  • Selle & Another V Associated Motor Boat Co. Ltd & Others
    (1968) EA 123

    Duty of first appellate court to re-evaluate evidence

  • China Zhongxing Construction Company Ltd V Ann Akuru Sophia
    (2020) eKLR

    Restates Selle principles on first appeals

  • Peters vs Sunday Post Limited
    (1958) EA 424

    Appellate court's caution in disturbing findings of fact

  • Watt V Thoma
    (1974) A.C. 484

    Circumstances in which appellate court may take different view on facts

  • Abdul Hammed Saif vs Ali Mohamed Sholan
    (1995) 22 E.A.C.A 270

    First appellate court not bound by trial court's findings of fact

  • United India Insurance Co. Ltd V East African Underwriters (Kenya) Ltd
    (1985) E.A.

    Non-interference with discretionary decisions on appeal

  • Mbogo & Another v Shah
    [1968] EA 98

    Appellate court should not interfere with exercise of discretion unless misdirected or clearly wrong

  • Nguruman Limited v Jan Bonde Nielsen & 2 others
    CA No 77 of 2012 [2014] eKLR

    Limited function of appellate court over injunction decisions

  • Giella v Cassman Brown
    (1973) EA 358

    Criteria for grant of interlocutory injunction

  • Patriotic Guards Ltd v. James Kipchirchir Sambu
    [2018] eKLR

    Discretion must be exercised judiciously and not on caprice

  • Patel v. E.A Cargo Handling Services Ltd
    (1974) EA

    Court's discretion should not be fettered; main concern is justice to parties

On appeal from
Chief Magistrate's Court at Nairobi (Milimani)
Milimani CMCC No. 4210 of 2015 consolidated with CMCC No. 4457 of 2017
Jurisdiction invoked
First appellate jurisdiction over appeals from subordinate courts in environment and land matters

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, "Systemedia Technologies Limited v Matheka & 3 others", Case Analysis (2023). Environment and Land Appeal 21 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/18488/eng@2023-06-29

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