Wakilii

Devraj and Company v Lalji and Another (Civil Appeal No. 7 of 1946)

East African Court of Appeal · [1946] EACA 10 · 1946 Appeal Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from decision of H.M. Supreme Court of Kenya
Decision
Magistrate's judgment restored; tenant entitled to deduct excess rent paid

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court held that the determination of standard rent by the Rent Control Board operates retrospectively to the date when the amending Ordinance came into force. The words "as from the date on which any such determination is made the standard rent shall be deemed for all purposes to be of that amount" must be read with the entire Ordinance. The standard rent attaches from the moment the house is brought under control, and though no one knows what it is until fixed, when fixed its determination has retrospective effect. Excess rent paid before the determination is irrecoverable by the landlord and recoverable by the tenant.

Outcome

Magistrate's judgment restored; tenant entitled to deduct excess rent paid

Facts

The appellants were tenants of premises in Nairobi erected in 1942, paying rent of Sh. 400 per month, which was the standard rent as the premises were first let at that rate. In April 1943, an amending Ordinance changed the definition of standard rent to 10% per annum of the ascertained market value of the landlord's interest. On 2 June 1944, the Rent Control Board determined the standard rent at Sh. 290 per month. Between April 1943 and June 1944, the appellants paid Sh. 400 per month. Following the Board's determination, the appellants deducted six months' excess rent (Sh. 660) in three monthly instalments from future rent payments. The respondent landlords sued to recover the deducted sums. The magistrate found for the tenants, but the Supreme Court reversed on appeal, holding the Board's determination was not retrospective.

Issues

  1. Whether the determination of standard rent by the Rent Control Board has retrospective effect to the date when the amending Ordinance came into operation.
  2. Whether excess rent paid before the Board's determination is irrecoverable by the landlord under section 7 of the Ordinance.
  3. Whether a tenant can recover excess rent paid by deducting it from future rent payments under section 16 of the Ordinance.

Orders

  • Appeal allowed.
  • Judgment of the Supreme Court set aside.
  • Judgment of the magistrate restored.
  • Costs to the appellant in all three Courts.

Rules and key headnotes

Landlord and Tenant — Rent Control — Retrospective Effect of Standard Rent Determination
The determination of standard rent by a Rent Control Board operates retrospectively to the date when the legislation fixing such standard rent came into operation, even though the determination is made at a later date.
Statutory Interpretation — Retrospective Operation — Rent Control Legislation
The words "as from the date on which any such determination is made the standard rent shall be deemed for all purposes to be of that amount" must be construed to give effect to the entire statutory scheme, including provisions for recovery of excess rent, and therefore operate retrospectively.
Landlord and Tenant — Rent Control — Standard Rent Operates In Rem
Standard rent operates in rem and attaches from the moment when the house is brought under control. There is always a standard rent applicable to controlled premises, though no one knows what it is until an application is made to fix it, and when fixed the determination operates retrospectively.
Landlord and Tenant — Rent Control — Recovery of Excess Rent
Where rent paid exceeds the standard rent as retrospectively determined, the excess is irrecoverable by the landlord and may be recovered by the tenant by deduction from future rent payments in accordance with the statutory provisions.

Legislation cited (5)

  • Increase of Rent and of Mortgage Interest (Restrictions) Ordinance 1940 s.2
  • Increase of Rent and of Mortgage Interest (Restrictions) Ordinance 1940 s.7
  • Increase of Rent and of Mortgage Interest (Restrictions) Ordinance 1940 s.8
  • Increase of Rent and of Mortgage Interest (Restrictions) Ordinance 1940 s.15
  • Increase of Rent and of Mortgage Interest (Restrictions) Ordinance 1940 s.16

Cases cited (3)

  • Gover v Field (1944) 1 All ER 151
  • Kimm v Cohen (1923) 40 TLR 123
  • Reman v City of London Real Property Co (1921) 1 KB 49

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Devraj and Company v Lalji and Another (Civil Appeal No. 7 of 1946) [1946] EACA 10 (1 January 1946)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.