Kejela v Jewar Holdings Limited (Civil Appeal E072 of 2021) [2023] KEHC 17282 (KLR) (Civ) (12 May 2023) (Judgment)

Kenya Law

Automated Summary

Key Facts

The case involves a dispute between Jewar Holdings Limited (Landlord) and Dirisa Nagara Kejela (Tenant) over unpaid rent. The Landlord claimed Ksh 325,000 for July-December 2017, alleging the Tenant failed to collect and remit rent from other tenants. The trial court awarded the full amount, but the appellate court found the Landlord proved a claim of Ksh 255,000 (based on tabulated deposit slips) and reduced the judgment accordingly. The appeal was dismissed with the substituted award of Ksh 255,000 plus costs.

Transaction Type

Lease Agreement for Harrian Flats in Nairobi

Issues

The court determined whether the landlord (Respondent) successfully discharged its legal burden of proving the tenant (Appellant) owed Ksh 255,000, and whether the tenant met their evidential burden to rebut the claim. The decision hinged on the application of sections 107, 109, 112, and 178 of the Evidence Act, emphasizing that the landlord's claim was limited to amounts specifically pleaded and proven (Ksh 255,000), while the tenant failed to provide sufficient evidence of remittance.

Holdings

The court dismissed the appeal but reduced the awarded amount from Ksh 325,000 to Ksh 255,000. The Landlord successfully proved the claim for Ksh 255,000, which was specifically pleaded and proved, and the trial magistrate's conclusion was upheld. The appeal is dismissed save that the judgment for Ksh 325,000 is varied and substituted with Ksh 255,000.

Remedies

The court substituted the original judgment of Ksh 325,000 with an award of Ksh 255,000 to the Respondent, having found the Appellant liable for breach of contract. The Respondent was also awarded costs of the Appeal assessed at Ksh 50,000.

Monetary Damages

305000.00

Legal Principles

The court applied the legal and evidential burdens of proof under sections 107(1), 109, and 112 of the Evidence Act. The legal burden rested with the Landlord to prove non-payment of Ksh 255,000, while the evidential burden was on the Tenant to demonstrate remittance. The court emphasized that parties are bound by their pleadings and must discharge their burdens through admissible evidence, referencing Kenya Akiba Micro Financing Limited v Ezekiel Cbebij [2012] eKLR for adverse inference when a party fails to prove matters within their knowledge.

Precedent Name

  • Kenya Akiba Micro Financing Limited v Ezekiel Cbebij and 14 Others
  • Mbuthia Macharia v Annah Mutua and Another
  • Selle and Another v Associated Motor Boat Co Ltd and Others
  • Hahn v Singh

Key Disputed Contract Clauses

  • The Tenant disputed the Landlord's rent increase by Ksh 3,000/month in 2017, asserting it was contingent on premises renovation. The Landlord countered that the increase was approved by the Rent Restriction Tribunal, and the Tenant's failure to prove remittance of the adjusted rent underpinned the judgment.
  • The court analyzed the lease agreement's rent amount of Ksh 15,000/month (2011) and subsequent increases. The Respondent claimed the Tenant failed to remit the full Ksh 255,000 for the period July-December 2017, while the Tenant argued the Landlord improperly increased rent without meeting renovation conditions.

Cited Statute

Evidence Act (Chapter 80 of the Laws of Kenya)

Judge Name

D. S. Majanja

Passage Text

  • Total ksh 255,000/=
  • The appeal is therefore dismissed save that the judgment for the sum of ksh 325,000.00 is varied and substituted with an award of ksh 255,000.00.

Damages / Relief Type

  • Costs awarded in the amount of Ksh 50,000.00
  • Compensatory Damages in the amount of Ksh 255,000.00