October 18, 2022 SCT - Judgments and Orders
Claim No. SCT 342/2022
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum,
Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL
BEFORE SCT JUDGE DELVIN SUMO
BETWEEN
LIMONE
Claimant
and
LIVAT
Defendant
| Hearing : | 13 October 2022 |
|---|---|
| Judgment : | 18 October 2022 |
JUDGMENT OF SCT JUDGE DELVIN SUMO
UPON this Claim being filed on 15 September 2022 and amended on 30 September 2022
AND UPON a Hearing having been listed before SCT Judge Delvin Sumo on 13 October 2022 with the Claimant and the Defendant in attendance
AND UPON considering all documents submitted on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendant shall vacate the Unit immediately upon the expiry of the Tenancy Contract on 30 November 2022.
2. The Claimant’s claim in the sum of AED 5,000 is dismissed.
3. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the sum of AED 367.25.
Issued by:
Hayley Norton
SCT Judge
Date of issue: 18 October 2022
At: 8am
THE REASONS
The Parties
1. The Claimant is Limone(the “Claimant”), the owner of unit 0 in DIFC, Dubai, UAE (the “Unit”).
2. The Defendant is Livat (the “Defendant”), a tenant occupying the Unit.
Background and the Preceding History
3. The underlying dispute arises over a tenancy contract entered into between the parties dated 14 January 2022 for a tenancy period from 1 January 2022 to 30 November 2022 (the “Tenancy Contract”).
4. On 15 September 2022, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal (the “SCT”) seeking a court order for the Defendant to vacate the Unit immediately upon the expiry of the Tenancy Contract. The Claimant further seeks payment of sums allegedly owed to the Claimant by the Defendant in the sum of AED 5,000.
5. On 22 September 2022, the Defendant filed an Acknowledgement of Service setting out his intention to defend all of the Claim.
6. The matter was called for a Consultation before SCT Judge Maitha AlShehhi on 5 October 2022. Although both of the parties were in attendance, they failed to reach a settlement.
7. In accordance with the rules and the procedures of the SCT, the matter was referred to me for determination, pursuant to a hearing held on 13 October 2022 (the “Hearing”). After considering all documents and evidence submitted on the Court file, I give my judgment below.
The Claim
8. The Claimant submits that the Defendant was initially served notice of a non-renewal of the tenancy contract (the “Initial Tenancy Contract”) by way of an email dated 23 October 2021, giving the Defendant 3 months’ notice until 23 January 2022 to vacate the Unit.
9. The Claimant alleges that the Defendant refused to accept the non-renewal notice and he presented the Claimant with a letter from the Dubai Rental Dispute Center (the “DRDC”) on 7 November 2021 (the “First Letter”). The First Letter of the DRDC allegedly allowed the Defendant to remain in the Unit for another year on the same terms.
10. Following the First Letter of the DRDC, the parties agreed to renew the Initial Tenancy Contact for a further year and the parties signed the Tenancy Contract with the agreement that it would be non-renewable up to the expiry date.
11. On 22 August 2022, the Claimant sent an email to the Defendant reminding him that the Tenancy Contract shall expire on 30 November 2022, and he must vacate and hand over the Unit on the date of expiry (the “Reminder Email”).
12. The Claimant further submits that the Defendant emailed the Claimant on 7 September 2022, providing another letter from DRDC, again, allowing the Defendant to stay in the Unit for another year on the same terms (the “Second Letter”).
13. The Claimant claims that the Tenancy Contract expires on 30 November 2022 and that the Defendant should vacate the Unit immediately upon the expiry of the Tenancy Contract.
The Defence
14. The Defendant submits that in the United Arab Emirates, Dubai Law No. 26 of 2007 (the “Dubai Law”) governs the relationship between a landlord and tenant, and therefore, he was able to obtain the First Letter and Second Letter from the DRDC.
15. The Defendant further relies on Article 25 and 26 of the Dubai Law alleging that the Claimant failed to provide the Defendant with a valid reason to terminate the Tenancy Contract and that the Claimant did not adhere to the respective timeline to notify the Defendant to vacate the Unit in accordance with the said Articles.
16. The Claimant further submits the following:
“Whilst the terms and conditions of the signed tenancy agreement regulate the relationship of landlord and tenant (so long as it is not against public policy), if the contract is silent on a matter, the parties may rely upon the provisions of Dubai Tenancy Law on that particular issue. This approach is driven by the fact that the DIFC Tenancy Law i.e., DIFC Law No.1 of 2020 (the “Leasing Law”); and DIFC Law No. 10 of 2018 (the “Real Property Law”) do not elaborate on the rights and obligations of the two parties and focuses only on issues such as registration, effects of termination, effects of the surrender of a lease and the implied powers of the landlord”.
17. Therefore, the Defendant claims that the Tenancy Contract should be renewed for another year.
Findings
18. In essence, the disagreement between the parties pertains to whether the Defendant should vacate the Unit upon the expiry of the Tenancy Contact on 30 November 2022.
19. First and foremost, I note that Article 3 of the DIFC Real Property Law No. 10 of 2018 (the “DIFC Real Property Law”) clarifies the scope and application of the DIFC Real Property Law and reads as follows:
“This Law applies to all Real Property within the jurisdiction of the DIFC”.
20. Furthermore, the Addendum to the Tenancy Contract (the “Addendum”) includes provisions which confirm my finding above. Articles 13 and 14 of the Addendum read as follows:
“Article 13:
This Contract is governed by the DIFC Real Property Law No 10 of 2018, amended by DIFC Leasing Law No 1 of 2020 (the “DIFC Law”) as confirmed in its article 3 which provides that “This Law applies to real property within the jurisdiction of the DIFC”.
Article 14:
This contract is governed by the DIFC Law and thus excludes the application of the requirements imposed by the Law No. 26 of 2007 as amended by Law No. 33 of 2008 Regulating Relationship between Landlords and Tenants in the Emirate of Dubai”.
21. The relevant Tenancy Contract is in relation to a unit in the DIFC, therefore, by default, the Tenancy Contract shall be governed by the DIFC Real Property Law and the DIFC Law No. 1 of 2020 (the “Leasing Law”).
22. Upon review of the Leasing Law, I find that it does not provide for an automatic right of renewal for tenants, and any such provisions for renewal must be agreed and included in the Tenancy Certificate. Without any such express provision to renew, the tenant will be required to vacate the Unit upon the expiry date of the Tenancy Certificate.
23. In any event, the Tenancy Contract and the Addendum set out various provisions which clarify the point of the renewal of the Tenancy Contract.
24. Article 2 of the Tenancy Contract reads as follows:
“Renewal of tenancy is at the discretion of the Landlord only. If the Tenant does not renew the tenancy on the expiry date, he will have to pay the rent as demanded”.
25. Article 3 of the Tenancy Contract further mentions the following:
“The contract is valid up to the end of the specified period after which the date is considered null and void”.
26. Article 2 of the Addendum reads as follows:
“This contract is valid only for 11 months, tenant will vacate on lease expiry, November 30, 2022”.
27. Article 5 of the Addendum further clarifies the following:
“Three months’ notice in writing should be given to the tenant if the Landlord does not wish to renew on expiry of the contract”.
28. Upon review of the above, I find that it is clear that the Tenancy Contract shall expire upon the expiry date on 30 November 2022. Furthermore, the Claimant provided the Defendant with 3 months’ notice as set out in the Reminder Email in accordance with Article 5 of the Addendum.
29. In light of the aforementioned, I find that the Tenancy Contract shall expire on 30 November 2022 and, therefore, the Defendant shall vacate the Unit on 30 November 2022.
30. The Claimant has failed to make any submissions in support of his claim in the sum of AED 5,000, therefore, I must dismiss this part of the Claim.
Conclusion
31. The Defendant shall vacate the Unit immediately upon the expiry of the Tenancy Contract on 30 November 2022.
32. The Claimant’s claim in the sum of AED 5,000 is dismissed.
33. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the sum of AED 367.25.
