Wakilii

Nanji and Another v Nandhra (Civil Suit No. 729 of 1955)

East African Court of Appeal · [1956] EACA 30 · 1956 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for mesne profits following expiry of statutory tenancy
Decision
Defendant held liable for mesne profits and costs; decree entered for plaintiffs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant was in wrongful possession and liable for mesne profits from 25th December 1954 to 4th July 1955. The earlier competent court's finding that the premises did not fall within section 9 of the Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954 was res judicata. Section 10 could not extend the tenancy because the defendant's tenancy was not an expiring tenancy within the meaning of the Ordinance, as the premises were not used for retail trade. Mesne profits were assessed at £130 per month plus interest at 8% per annum.

Outcome

Defendant held liable for mesne profits and costs; decree entered for plaintiffs

Facts

The defendant occupied business premises as a statutory tenant under the Increase of Rent (Restriction) Ordinance, 1949, which expired on 25th December 1954 as regards business premises. The defendant remained in possession, claiming entitlement to a new tenancy under the Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954. On 2nd June 1955, a competent court refused the defendant's application for a new tenancy under section 9, finding that the premises were used as an office and store for a building contractor and a joinery manufactory, not for retail trade as required by the Ordinance. The defendant vacated the premises on 4th July 1955. The plaintiffs, who owned the premises, sued for mesne profits for the period from 25th December 1954 to 4th July 1955, and for damages for the dilapidated condition of the premises upon vacation.

Issues

  1. Whether the defendant was in wrongful possession of the premises from 25th December 1954 to 4th July 1955.
  2. Whether the defendant could oppose the claim for mesne profits on grounds already rejected by a competent court in earlier proceedings.
  3. Whether the defendant's statutory tenancy was extended to 2nd July 1955 by virtue of section 10 of the Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954.
  4. What mesne profits should be paid by the defendant to the plaintiffs.
  5. Whether the defendant was liable for damages for the condition of the premises at the time of vacation.

Orders

  • Judgment for the plaintiffs.
  • Defendant to pay mesne profits assessed at £130 per month from 25th December 1954 to 4th July 1955.
  • Simple interest at 8% per annum on mesne profits up to the date of decree.
  • Costs awarded to the plaintiffs.

Rules and key headnotes

Landlord and Tenant — Statutory Tenancy — Res Judicata — Effect of Earlier Court Determination
Where a competent court has determined in earlier proceedings that a statutory tenancy does not fall within the scope of protective legislation, that finding is binding as res judicata in subsequent proceedings between the same parties concerning the same tenancy.
Landlord and Tenant Legislation — Interpretation of 'Expiring Tenancy' — Relationship Between Sections 9 and 10
Section 10 of the Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954 must be read in conjunction with section 9. The term 'expiring tenancy' in section 10 is confined to tenancies to which section 9 applies, namely tenancies of premises used wholly or mainly for retail trade or business. Where premises do not fall within section 9(2), section 10 cannot operate to extend the tenancy.
Landlord and Tenant — Retail Trade — Definition of 'Shop' — Premises Used for Building Contractor's Office and Joinery
Premises used as a building contractor's office and store in the front portion and as a joinery manufactory in the rear do not constitute a 'shop' within the meaning of the Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954, even if occasional retail sales occur, where no part of the premises is used mainly for purposes of retail trade or business.
Mesne Profits — Assessment — Fair Return Basis Where Actual Profits Unknown
Mesne profits are defined by section 2 of the Civil Procedure Ordinance as profits which the person in wrongful possession actually received or might with ordinary diligence have received, together with interest, but excluding profits due to improvements. Where there is no satisfactory evidence of actual profits received, the court must assess mesne profits on the basis of the fair return in respect of the premises.

Legislation cited (4)

  • Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954 s.9
  • Landlord and Tenant (Shops and Hotels) (Temporary Provisions) Ordinance, 1954 s.10
  • Increase of Rent (Restriction) Ordinance, 1949
  • Civil Procedure Ordinance Cap. 5 s.2

Full judgment

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Nanji and Another v Nandhra (Civil Suit No. 729 of 1955) [1956] EACA 30 (1 January 1956)
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.