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ELCDismissed· [2024] KEELC 101 (KLR)

Mavic Investments Company Limited v Little Sheep Investments Limited (Environment & Land Case 105 of 2019) [2024] KEELC 101 (KLR)

Environment and Land Court
18 January 2024
3,421 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Nairobi court dismissed a landlord's bid for vacant possession because it proved neither rent arrears nor a properly accepted termination notice.

What this practically means

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Executive summary

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The Plaintiff landlord sued for vacant possession of property known as L.R No. 209/407/2 in Nairobi, alleging the Defendant tenant defaulted on quarterly rent payable in advance under an eight-year lease dated 1st August 2016, and that the lease was validly terminated by notice dated 1st March 2018 following a termination letter dated 21st February 2018. The Defendant denied default, contended the termination notice was defective, and counter-claimed for Kshs 3,200,000/= spent on change of user and Kshs 82,000,000/= for developments (stalls generating Kshs 1,600,000/= monthly rent), asserting the lease was still subsisting. The court found the lease terms undisputed and placed the burden of proving default on the Plaintiff under Section 107(1) of the Evidence Act. The Plaintiff neither pleaded nor proved the figures or period of the alleged arrears. The court further held that the true termination notice was the letter of 21st February 2018, framed under Clause C(3) of the lease, which required issuance of notice, written acceptance of the notice and expiry of the notice period. No evidence of written acceptance was adduced, rendering the termination invalid. The lease was therefore subsisting, entitling the Defendant to possession until the end of the term or valid termination. Having so found, the Plaintiff's suit for vacant possession was dismissed. The Defendant's counter-claim, being dependent on the Plaintiff succeeding in obtaining vacant possession, was also dismissed, the Defendant having failed to prove breach by the Plaintiff. Each party was ordered to bear its own costs. Judgment was delivered virtually at Nairobi on 18th January 2024 by M.D Mwangi J.

Key legal issues

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01

Whether the Plaintiff proved the alleged rent default by the Defendant

Holding

The Plaintiff did not prove default; it neither pleaded nor proved the figures or period of the alleged arrears

Reasoning

The plaint did not plead the figures or the period of the alleged default, and PW1's testimony did not address them either. The claim rested solely on the letter of 21st February 2018 detailing arrears of Kshs 3,048,734/=. Given the burden under Section 107(1) of the Evidence Act, the Plaintiff failed to discharge it. The Plaintiff also could not rely on a notice sent by email when the lease barred variation notices by electronic mail.

p. 5
02

Whether the lease was lawfully terminated

Holding

The termination was invalid because the lease required written acceptance of the notice, which was never obtained

Reasoning

Clause C(3) of the lease prescribed three pre-conditions: issuance of notice, receipt of acceptance in writing, and expiry of the notice period. Although the letter of 21st February 2018 was clear on the termination date, no evidence showed the Defendant accepted the notice in writing. The notice of 1st March 2018 was a repossession notice, not a termination notice. The lease therefore remains subsisting.

p. 7
03

The fate of the Defendant's Counter-claim

Holding

The Counter-claim was dismissed as it was premised on the Plaintiff being entitled to vacant possession

Reasoning

Having found the lease not lawfully terminated and still subsisting, the Defendant's Counter-claim lacked basis and was pre-empted by that finding. The Defendant was in possession and entitled to remain until the end of the term. Additionally, the Defendant did not prove any breach of the lease by the Plaintiff.

p. 7

Legal principles established

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  • Parties are bound by the terms of their contract and a court cannot rewrite a contract unless coercion, fraud or undue influence are pleaded and proved
  • The burden of proof lies on the party who desires the court to give judgment on facts it asserts
  • Where a lease requires notice, written acceptance of the notice and expiry of the notice period for termination, non-compliance renders the termination invalid

Court orders

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  1. 1.The Plaintiff's suit is dismissed
  2. 2.The Defendant's Counter-claim is dismissed
  3. 3.Each party shall bear its own costs

Authorities

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Legislation

  • Evidence ActSection 107(1)

Cases cited (3)

  • National Bank of Kenya Ltd –versus- Pipe Plastic Samkolit (K) Ltd
    (2001) 2 EA 5003, (2011) eKLR
  • Pius Kimaiyo Langat -vs- Co-operative Bank of Kenya Ltd
    [2017] eKLR
  • Danson Muriuki Kihara –versus- Johnson Kabungo
    [2017] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a lease dispute concerning land in Nairobi City County

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, "Mavic Investments Company Limited v Little Sheep Investments Limited (Environment & Land Case 105 of 2019) [2024] KEELC 101 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/101/eng@2024-01-18

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