Kenya: Landlord Seeks Compensation Over Breach of Contract for Petrol Station
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Tuesday, 11 November 2008 |
According to documents filed in court, Mr J Gosrani leased a petrol
station to Kenol/Kobil at his premises along Murang’a Road in Nairobi
which is now the subject of breach of contract.
According to reports, the oil company was to pay Sh600,000 for the first five years from June 1 2001 to May 31, 2006. Thereafter, as agreed, the rent was to be increased at the rate of 12 per cent after every five years. The petrol station had been contracted to a dealer by the oil company.
Mr Gosrani says that on January 21, 2005, Kenol/Kobil was also to pay for the ground rent of the property and City council rates for the entire term of the lease. He says the total amount for the levies stood at Sh29,000 and Sh63,000. He says that in May 5, 2005, the parties held a meeting where the Kenol/Kobil demanded reduction of the rent from Sh600,000 to Sh300,000 but he declined.
The records further reveal that Kenol/Kobil claimed that the businessman’s original title deed did not permit the user of the premises as petrol station and indicated they would hand over the station to Mr Gosrani. However, Mr Gosrani argued in court that the oil firm representatives invaded the station at the dawn of May 31, 2004 and removed signboards, the fuel pump, compressor, the greasing pump, pressure gauge and other accessories and carted away his belongings. The case has been dragging in court for the past three years and has been handled by three different judges. The file was finally placed before Justice Jessie Lesiit of the Milimani Commercial Court, who directed the matter to be heard later this week.
In their defence papers filed in court on May 4, 2005 through the law firm of Esmail and Esmail Advocates, Kenol/Kobil says the lease property did not allow the land to be used for a restaurant within the petrol station. The oil company said the lease was void since the construction of the petrol station and the restaurant was contrary to applicable laws. In terminating the contract, Kenol/Kobil says it was lawful after discovering the discrepancies of the lease.
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