Protection of Tenants (Business Premises) in Zambia

You might also like

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 23

.

LAND LAW
PROTECTION OF TENANTS OF BUSINESS PREMISES IN ZAMBIA
-LANDLORD AND TENANT (BUSINESS PREMISES) ACT CAP 193
Introduction

The Landlord and Tenant (Business premises) Act was enacted in 1971 to supersede
the Rent Control (Temporary Provision) Act whose life was going to expire on 31st
December 1971.

Minister of State for Provincial, Local Government and Culture, Mr. Josy Monga, stated
as follows:
Zambia now had seven years of independence

• “Zambia now had the benefit of seven years of independence and


now knew from experience the manner in which building
development and the use of both business and residential
properties had progressed throughout the country…
Second National Development Plan

…Zambia was on the threshold of the exciting future which the Second National Development
Plan would seek to create.

There was a suggestion for the enactment of the Landlord and Tenant (Business Premises)
Act.

The Act would satisfy both landlords and tenants”.


The Act is applicable to all tenancies in Zambia.

The Act was largely based on the English Landlord and Tenant Act, of 1954 primary objectives
of the Act are to provide security of tenure for tenants occupying property for business,
professional and certain other purposes and to enable such tenants to obtain new tenancies
in certain cases
Some exceptions to the Act

It shall not apply to:


• (a) agricultural holdings;
• (b) premises let or used exclusively for residential purposes;
• (c) premises let by Government or a local authority;
• (d) premises held by a tenant under a tenancy for a term of years
certain exceeding twenty-one years;
• (e) premises or part of the premises comprised in a tenancy, in
which a tenant is carrying on a business in breach of a prohibition.
Definition of ‘Lease’, ‘Tenancy’, and ‘Business’.

• LEASE: A lease, under-lease or other tenancy, assignment operating


as a lease or under-lease, or an agreement for such lease, under-
lease, tenancy or assignment.
• TENANCY: A tenancy of business premises (whether written or
verbal) for a term of years certain not exceeding twenty-one years.
• This lease is created by a lease or under-lease, by an agreement for
or assignment of a lease or under-lease, by a tenancy agreement or
by operation of law.
Definition of ‘Lease’, ‘Tenancy’, and
‘Business’

• BUSINESS: A trade, an industry, a profession or an employment,


and includes any activity carried on by a body of persons, whether
corporate or unincorporate, but does not include farming on land.
Security of tenure is secured under the Act

• A tenancy to which this Act applies shall not come to an end unless
terminated in accordance with the provisions of this Act
• The tenant under such a tenancy may apply to the court for a new
tenancy: 
• (a) if the landlord has given notice under section five to terminate
the tenancy; or
• (b) if the tenant has made a request for a new tenancy in
accordance with section 6 of the Act.
Tenancy May Come to an End by Notice to Quit Given by Tenant, Surrender and Forfeiture

• The tenancy can come to an end by a notice to quit given by the


tenant, by surrender or by the forfeiture of a superior tenancy.
• Where the parties have agreed not to renew the contract, the
tenant has no option to renew the tenancy.
Termination of Tenancy By Landlord.

• The landlord may terminate a tenancy by a notice given to the


tenant specifying the date on which the tenancy is to come to an
end.
• The notice to quit should be given not less than six months and not
more than twelve months before the date of termination for it to
have effect.
• S11 - The landlord must state in his notice on which of the grounds
he is giving notice.
Tenant’s Request for a New Tenancy.

• A tenant’s request for a new tenancy may be made where the


tenancy under which he holds for the time being (current tenancy)
is a tenancy granted for a term of years certain and thereafter
from year to year.
• A tenant’s request for a new tenancy shall not be made if the
landlord has already given notice under section 5 to terminate the
current tenancy or if the tenant has already given notice to quit.
Grounds of Opposition to the grant of a new
Tenancy available to the Landlord.

• 1. Where under the current tenancy the tenant has any


obligations as respects the repairs and maintenance of the
holding;
• 2. Persistent delay in paying rent;
• 3. The landlord has offered and is willing to provide or secure the
provision of alternative accommodation for the tenant
• 4. The current tenancy was created by the subletting of part only
of the property comprised in a superior tenancy and the landlord
is the owner on the termination of the superior tenancy.
Grounds of Opposition to the grant of
a new Tenancy available to the Landlord

• 5. The landlord intends to demolish or reconstruct the premises


comprised in the holding or a substantial part of those premises
• 6. On termination of the current tenancy the landlord intends to
occupy the holding for the purposes of carrying on business.
Determination of Rent by Court in Certain
Instances.
• An aggrieved tenant may apply to court for determination of rent,
within three months from the commencement thereof (if he is
aggrieved by the rent payable)
• If the landlord makes a demand or accepts rent in excess of the
rent so determined by the court, he shall be guilty of an offence
and liable on conviction to a fine not exceeding five thousand
penalty units to imprisonment for a term not exceeding six
months, or to both.
Difference between the Rents Act and the
Business premises Act

• Unlike under the Rent Act which requires that standard rent
should be determined by the Court, (the duty to apply is placed on
the landlord) before letting or within three months of letting, the
Landlord and Tenant (Business Premises) Act only allows an
aggrieved tenant to apply for determination of rentals within
three months of the letting.
Distress for Rent

• Unlike the Rent Act, the Landlord and Tenant (Business Premises)
Act is silent on the issue or aspect of distress for rent.
• See the case: In Paperex Limited v Deluk High School, the Rent
Act in S.14 which imposes a restriction on the levying of distress
for rent of dwelling houses which can only be done with leave of
the court.
• There is no similar restriction under the Landlord and Tenant
(Business Premises) Act.
‘Distress’ is summary remedy.

• The term ‘distress’ mainly connotes a summary remedy by which a


person is entitled without legal process to take into his possession the
personal chattels of another person to be held as a pledge to compel
the performance of a duty, the satisfaction of a debt or demand or
the payment of damages for trespass by cattle.
• See Halsbury’s Laws of England, 3rd edn, at page 87-para 124.
• The right of a landlord to distrain for arrears of rent arises at common
law and need not be expressly reserved.
• For this to be applicable the rent must be in arrears. See Halsbury
Laws of England 3rd edn at page 90 para 130.
Case Law-MUSINGAH v DAKA (1974) Z.R. 37 (H.C.)

• The phrase “term of years certain not exceeding 21 years” under the
definition of Tenancy, under section 2 of the Landlord and Tenant
(Business Premises) Act means, “a term certain not exceeding 21 years.”
• A Tenant who has been served with a notice to quit may apply to the
Court for a new tenancy. See Minos Panel Beaters Ltd v Chapasuka (1986)
Z.R. 1 (S.C.)
• Tenancy or Licence – Tenant in occupation for more or close to seven
months – unlawful or wrongful locking of offices and seizure of goods. This
clearly shows the importance of the distinction between a tenancy and a
licence. A licensee is not protected under Rent Act and Landlord and
Tenant (Business Premises) Act.
• The Appellant’s Counsel’s argument that the relationship between
the parties was that of a licence and not a tenancy was an
attempt to avoid the application of the Landlord and Tenant
(Business Premises) Act, which provides for security of tenure for
tenants occupying business premises.
• Parties may endeavour to avoid the control of the Rent Acts by
granting a licence instead of a tenancy.
• This attempt is usually at the instance of a powerful landlord who
would want to avoid the obligations imposed on him by the Rent
Acts
• Mususu Kalenga Building Limited And Another v Richmans Money
Lenders Enterprises [1999] ZR 27. (SC)
• Landlord and Tenant –Landlord and Tenant (Business Premises)
Act.
• Ground for opposing New Tenancy- Section 11(1) (e) –more
valuable as a whole - A Landlord is restricted from opposing a new
tenancy on any ground other than that set out in the notice to
quit.
• ZIMCO Properties Limited v Dinalar Randee Enterprises (T/A
Empire Cinema) (1988/89) ZR 114 (SC)
• Once a landlord satisfies the Court on any one or more of the grounds
on which a landlord is entitled to oppose the application under section
11 of the Act, the availability of alternative accommodation is
irrelevant.
• AFRO BUTCHERIES LIMITED v EVEES LIMITED (1987) Z.R. 39 (S.C.)
• While a Tenant will be protected under the Act the Landlord will
equally receive the Courts protection if he has in fact established a
ground for opposition as provided for under the Act.
• VIRGINIA TOBACCO ASSOCIATION OF ZAMBIA v MEDICAL CLINIC CENTRE
LIMITED- Supreme Court Appeal No. 4 of 1990. (unreported)
Cases

• Musingah v Daka (1974) ZR 37 and Ngulube DCJ (as he then was)


in Afro Butcheries v Evees Limited (1987) ZR 39 and Zimco
Properties v Dinalar Randee Enteprises (1988/89) ZR 119
• Observations were made on the English landlord and Tenant Act of
1954.

You might also like