Neo Amadiva Limited v Cape Holdings Limited & another [2020] eKLR Case Summary

Court
Business Premises Rent Tribunal at Nairobi
Category
Civil
Judge(s)
Chairman Mbichi Mboroki
Judgment Date
July 05, 2019
Country
Kenya
Document Type
PDF
Number of Pages
2
Explore the case summary of Neo Amadiva Limited v Cape Holdings Limited & another [2020] eKLR, highlighting key legal principles and outcomes relevant to contract disputes.

Case Brief: Neo Amadiva Limited v Cape Holdings Limited & another [2020] eKLR

1. Case Information:
- Name of the Case: Neo Amadiva Limited v. Cape Holdings Limited
- Case Number: Tribunal Case No. 256 of 2018 (Nairobi)
- Court: Business Premises Rent Tribunal, Kenya
- Date Delivered: 5th July 2019
- Category of Law: Civil
- Judge(s): Chairman Mbichi Mboroki
- Country: Kenya

2. Questions Presented:
The central legal issues before the Tribunal were whether the execution of the letter of offer dated 23rd July 2012 created a controlled tenancy under the meaning of section 2 of Cap 301, and whether the Tribunal had jurisdiction to hear the dispute given the nature of the tenancy agreement.

3. Facts of the Case:
Neo Amadiva Limited (Tenant) filed a complaint against Cape Holdings Limited (Landlord) on 22nd March 2018, alleging unlawful distress for rent despite having paid the rent due. The Tenant also sought interim restraining orders, which were granted ex-parte. The Landlord responded with a preliminary objection claiming the Tribunal lacked jurisdiction, arguing that the executed letter of offer constituted a lease of 6 years, exceeding the Tribunal's jurisdiction as defined in Cap 301.

4. Procedural History:
Following the Tenant's initial filing, the Landlord submitted a replying affidavit and a preliminary objection on 18th April 2018. Written submissions were exchanged, with the Landlord's submissions filed on 17th May 2018 and the Tenant's on 23rd October 2018. The Tribunal reviewed these submissions to determine the preliminary objection's validity.

5. Analysis:
- Rules: The Tribunal examined the relevant provisions of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Cap 301, particularly section 2, which stipulates that tenancies exceeding 5 years fall outside the Tribunal's jurisdiction.
- Case Law: The Tribunal referenced the Mukisa Biscuit Case [1969] EA 696, which established that a preliminary objection must raise pure legal issues based on admitted facts.
- Application: The Tribunal found that the letter of offer created a binding contract for a tenancy of 6 years. It concluded that the absence of a formal lease did not negate the tenancy agreement established by the letter of offer. Consequently, since the tenancy was documented and exceeded the jurisdictional limit, the Tribunal determined it lacked the authority to hear the case.

6. Conclusion:
The Tribunal upheld the Landlord's preliminary objection, ruling that it had no jurisdiction over the matter. The Tenant's reference and notice of motion were struck out, and the interim orders were discharged. The Tenant was ordered to pay costs to the Landlord and the auctioneer.

7. Dissent:
There were no dissenting opinions noted in the ruling.

8. Summary:
The Tribunal ruled in favor of Cape Holdings Limited, determining that the tenancy created by the letter of offer was not controlled under Cap 301 due to its duration exceeding the 5-year threshold. This decision underscores the importance of formal lease agreements in establishing jurisdiction in tenancy disputes and clarifies the implications of tenancy agreements created through letters of offer in Kenya.

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