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ELCDismissedEnvironment and Land Appeal E104 of 2022

Lets Koroga v Sufra Garden Restaurant Limited

Environment and Land Court
16 February 2023
1,549 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This is a ruling by A.A. Omollo, J of the Environment and Land Court at Nairobi (Milimani) on a notice of motion dated November 2, 2022 by Lets Koroga, the appellant in an appeal against a ruling of the Business Premises Rent Tribunal (Hon. Gakuhi Chege, Tribunal case No E437 of 2022) which had dismissed its reference on October 28, 2022. The applicant sought interim restraining orders preventing the respondent landlord, Sufra Garden Restaurant Limited, from evicting, repossessing or interfering with its subtenancy on LR No 1870/VI/Nairobi pending the appeal. The respondent opposed, contending the court lacked jurisdiction because Lets Koroga is a registered business name without capacity to sue, and that interim orders were obtained by non-disclosure. The court first addressed jurisdiction, holding that although a sole proprietor should sue in his own name, failure to do so is not fatal, applying U Design & 2 others v Alex Bazara Tabulo. On the injunction, the court applied Order 40 of the Civil Procedure Rules and the principle from National Bank of Kenya Ltd v Pipeplastic Samkolit that courts cannot re-write contracts. Since the one-year lease expired on December 31, 2022 before determination, the application was overtaken by events; granting an injunction would amount to the court renewing the lease. The application was dismissed with costs to the respondent, the applicant being left to pursue damages in the appeal.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the court has jurisdiction over the appeal given that 'Lets Koroga' is a registered business name and not a juristic person
  2. 2.Whether the Applicant established principles for grant of a temporary injunction pending the appeal

Key legal issues

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01

Capacity to sue in a registered business name and jurisdiction

Holding

Although a sole proprietor should sue in his own name, failure to do so does not render the appeal defective; the court retains jurisdiction

Reasoning

The Respondent argued Lets Koroga, a registered business name, lacked capacity to sue, ousting jurisdiction. The court noted the law that a sole proprietor must sue in his own name, but relying on U Design & 2 others v Alex Bazara Tabulo, held that where the proprietor (Kamal Singh Bhullar) is evidenced and unrebutted, the defect is not fatal and the appeal is not dismissed for that reason.

p. 3
02

Whether a temporary injunction should issue pending the appeal

Holding

No injunction could issue because the lease had expired by effluxion of time before determination of the application

Reasoning

Applying Order 40 CPR and the principles for injunctions, the court found the restraining orders were premised on the existence of a lease. The lease ended December 31, 2022. Granting an injunction without a valid lease would effectively renew the lease, which a court cannot do, as parties are bound by their contract. The Applicant may still argue damages on appeal.

p. 3

Legal principles established

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  • A sole proprietor of a business cannot sue in the name of that business if that name is not his own; he should sue in his own name, but failure to do so does not render the suit defective for dismissal
  • A court cannot re-write a contract between the parties; parties are bound by the terms of their contract unless coercion, fraud or undue influence are pleaded and proved
  • Injunctions cannot be used to extend a contract that has expired by effluxion of time

Court orders

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  1. 1.The notice of motion dated November 2, 2022 is dismissed
  2. 2.Costs of the application awarded to the respondent

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

On appeal from
Business Premises Rent Tribunal
Tribunal case No E437 of 2022
Jurisdiction invoked
Appeal from the Business Premises Rent Tribunal under the Landlord and Tenant (Business Premises) regime; jurisdiction contested by the Respondent under Order 30 rule 9 of the Civil Procedure Rules, 2010

Relief refused

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Temporary injunction restraining the Respondent from evicting, repossessing, occupying or interfering with the Applicant's tenancy pending the appeal

The lease expired on December 31, 2022 before determination; granting the orders would amount to the court extending/renewing the contract

p. 3

Costs of the application

Application dismissed with costs to the respondent

p. 4

Costs

The application is dismissed with costs to the respondent.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

it is evidenced that the “Kamal Singh Bhullar” is the business owner and failure to sue in his own name does not render the Appeal defective for dismissal
p. 3capacity to sue in a business name
A Court of law cannot re-write a contract between the parties. The parties are bound by the terms of their contract, unless coercion, fraud or undue influence are pleaded and proved
p. 3sanctity of contract
The application is dismissed with costs to the respondent.
p. 4disposition

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, "Lets Koroga v Sufra Garden Restaurant Limited", Case Analysis (2023). Environment and Land Appeal E104 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/16077/eng@2023-02-16

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