[2022] KECA 79 (KLR)

[2022] KECA 79 (KLR)

The Court of Appeal found that the lease agreement expressly required the consent of the landlord before any assignment. The 3rd and 4th respondents, as lessees, assigned the lease to the appellant without obtaining such consent from the 1st and 2nd respondents, who were the legal representatives of the estate. The...

Source-derived case information.

Citation
[2022] KECA 79 (KLR)
Parties
Appellant: National Oil Corporation; Respondent: Suleiman Mohamed Said Suleiman Al-Busaidy; Respondent: Ali Mohamed Said Suleiman Al-Busaidy; Respondent: Shell Company Old East Africa; Respondent: Vivo Energy Kenya Ltd
Court
Court of Appeal
Court Station
Court of Appeal at Mombasa
Jurisdiction
Kenya
Case Number
Civil Appeal 77 of 2018
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal dismissed save for adjustment on mesne profits; appellant to pay mesne profits from 2008 only.
Judges
RN Nambuye, W Karanja, AK Murgor
Legal Topics
Lease Assignment, Mesne Profits, Forfeiture of Lease, Consent to Transfer, Trespass to Land, Damages for Illegal Occupation
Source Language
en
Land and Property Civil Procedure Lease Assignment Mesne Profits Forfeiture of Lease Consent to Transfer Trespass to Land Damages for Illegal Occupation

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Parties

National Oil Corporation

Appellant

Suleiman Mohamed Said Suleiman Al-Busaidy

Respondent

Ali Mohamed Said Suleiman Al-Busaidy

Respondent

Shell Company Old East Africa

Respondent

Vivo Energy Kenya Ltd

Respondent

Procedural Posture

Civil Appeal / Judgment

  1. 1 Whether the 1937 lease was ever terminated.
  2. 2 Whether the 3rd and 4th respondents lawfully assigned the lease to the appellant without the consent of the 1st and 2nd respondents.
  3. 3 Whether the waiver obtained from the Registrar of Lands was obtained unlawfully.

Ratio Decidendi

The Court of Appeal found that the lease agreement expressly required the consent of the landlord before any assignment. The 3rd and 4th respondents, as lessees, assigned the lease to the appellant without obtaining such consent from the 1st and 2nd respondents, who were the legal representatives of the estate. The court was satisfied that the requisite six months' notice of intention to re-enter the property was given by the 1st and 2nd respondents, and thus, by the time the waiver was sought from the Registrar in 2013, the lease had already been terminated. The purported assignment and waiver were therefore null and void. Regarding mesne profits, the court held that the appellant's...

Court Disposition

Appeal dismissed save for adjustment on mesne profits; appellant to pay mesne profits from 2008 only.

Orders

  • Appellant to pay mesne profits for the period starting from 2008 until payment in full plus interest at court rates.
  • Appellant to vacate the suit premises within 60 days from the date of judgment or be evicted.