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Court of AppealPartially AllowedNot stated in judgment· [1981] KECA 9 (KLR)

Saheb v Hassanally [1981] KECA 9 (KLR)

Court of Appeal of Kenya
8 May 1981
3,199 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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A Kenyan landlord who serves a valid tenancy notice that the tenant never refers to a Tribunal gets possession automatically—no need to prove any statutory grounds.

What this practically means

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Executive summary

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This is a Court of Appeal judgment (Potter JA writing the leading judgment, Law and Miller JJA concurring) from a landlord-tenant dispute over two shops on Kirinyaga Road, Nairobi. The landlord served a tenancy notice under section 4(2) of the Landlord and Tenant (Shops, Hotels, and Catering Establishments) Act (cap 301) seeking termination of the controlled tenancy alternatively an increase of rent from Kshs 350 to Kshs 3,500 per month, on grounds of rent default and his own need for the premises. The tenant neither notified unwillingness to comply nor referred the notice to a Tribunal, and the landlord sued in the High Court for possession, arrears and mesne profits. The High Court held the notice valid but found insufficient proof of rent default and dismissed the suit; the tenant cross-appealed on validity and service. The Court of Appeal allowed the appeal. It held that a landlord may validly combine termination and alteration in one notice; that the notice adequately specified the section 7(1)(g) ground; that service on an adult family member at the tenant's last known address satisfied section 4(6); and that under section 10 a valid notice not referred to a Tribunal takes effect, entitling the landlord to possession without proof of the statutory grounds. The court awarded vacant possession, Kshs 2,100 arrears, and mesne profits at Kshs 350 per month from January 1977, with costs of the appeal and the High Court to the appellant. Miller JA added observations on the Act's tribunal-centred scheme and the Essex County Court rule on new remedies.

Key legal issues

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01

Whether a single tenancy notice may validly seek termination of the controlled tenancy in the alternative to an increase of rent

Holding

Yes. Nothing in sections 4(1) and 4(2) of the Act, Form A, or the purposes of the Act prevents a landlord from issuing a tenancy notice in the alternative, and the practice is not prejudicial to the tenant's legitimate interests.

Reasoning

The word 'or' in section 4(2) may be disjunctive or conjunctive according to context. A tenant faced with such a notice suffers no difficulty: he may refer it to a Tribunal and oppose both termination and alteration, or he may agree to either, in which case the landlord is bound by his election. Requiring a landlord to proceed piecemeal before a Tribunal would add delay and expense for no protective benefit.

p. 3
02

Whether the notice was defective for not stating the landlord's intention to occupy the premises for not less than one year under section 7(1)(g)

Holding

The notice adequately specified the statutory ground in section 7(1)(g) as required by section 4(5); a statement of the one-year period was not necessary.

Reasoning

Section 4(5) requires only that the notice specify the grounds upon which termination is sought. The notice stated that the landlord required possession for the purpose of running a business, which sufficiently identified the ground under section 7(1)(g). Further, any departure from the prescribed form is saved by section 72 of the Interpretation and General Clauses Act (cap 2) where it does not affect substance or mislead.

p. 3
03

The effect of the tenant's failure to refer a validly served notice to a Tribunal

Holding

Under section 10 the notice takes effect from the date specified and terminates the tenancy; the landlord is then entitled to possession without proving the statutory grounds, and a judge should not investigate the grounds in the notice, though the quantum of arrears must still be proved for a High Court judgment.

Reasoning

Section 10 provides that where a tenant fails to notify unwillingness to comply or to refer the notice to a Tribunal, the notice takes effect from its specified date. A valid notice is one complying with section 4, including the prescribed form, the statutory grounds and due service. The learned judge was wrong to try the grounds; he should have entered judgment for the landlord on the conceded section 7(1)(g) ground, leaving only the quantum of arrears for proof.

p. 4
04

The arrears and mesne profits recoverable after termination of the tenancy

Holding

Arrears of Kshs 2,100 agreed at trial were recoverable; mesne profits were awarded at Kshs 350 per month, not the claimed Kshs 3,500, for want of evidence supporting the higher rate.

Reasoning

The tenancy terminated by the notice with effect from December 31, 1977 (as the draft stated; the judgment also refers to December 31, 1976). The agreed six months' arrears of Kshs 2,100 stood. Section 10 does not relieve the landlord of proving the exact quantum of arrears for judgment. There was insufficient evidence to justify mesne profits at the enhanced open-market rate of Kshs 3,500 per month.

p. 4

Legal principles established

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  • A landlord may, in one tenancy notice, seek termination of a controlled tenancy in the alternative to an alteration (increase of rent) of its terms; the word 'or' in section 4(2) may be read disjunctively or conjunctively according to context.
  • Where a valid tenancy notice is duly served and the tenant neither notifies unwillingness to comply nor refers the matter to a Tribunal, the notice takes effect under section 10 and the landlord is entitled to possession without proving the statutory grounds in the notice.
  • Service on an adult member of the tenant's family at the tenant's last known address satisfies section 4(6) of the Act.
  • Deviations from a prescribed statutory form that do not affect substance or mislead do not void the document, by virtue of section 72 of the Interpretation and General Clauses Act (cap 2).
  • Where an Act creates a new jurisdiction, procedure, forms or remedies, only the prescribed procedure, forms or remedies must be followed until altered by subsequent legislation.

Court orders

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  1. 1.The appeal is allowed
  2. 2.An order awarding vacant possession of the premises to the appellant
  3. 3.Payment of Kshs 2,100 arrears of rent by the respondent
  4. 4.Mesne profits at Kshs 350 per month from January 1977 until possession is delivered up
  5. 5.The appellant is awarded the costs of the appeal and of the High Court proceedings
On appeal from
High Court of Kenya
Not stated in judgment
Jurisdiction invoked
First appeal to the Court of Appeal against a High Court judgment (specific enabling provision not stated in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Saheb v Hassanally [1981] KECA 9 (KLR)", Case Analysis (1981). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1981/9/eng@1981-05-08

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