May 24, 2023 SCT - JUDGMENTS AND ORDERS
Claim No. SCT 163/2023
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 LEASING TRIBUNAL OF DIFC COURTS
BEFORE H.E. JUSTICE MAHA AL MHEIRI
BETWEEN
MOASA
Claimant
and
MURIT
Defendant
| Hearing : | 22 May 2023 |
|---|---|
| Judgment : | 24 May 2023 |
JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI
UPON the Claim Form being filed on 27 April 2023
AND UPON a hearing having been held before H.E. Justice Maha Al Mheiri on 22 May 2023, with the Claimant and the Defendant attending
AND UPON reading the submissions and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Claimant’s claim is dismissed.
2. Each party shall bear their own costs.
Issued by:
Hayley Norton
SCT Judge and Assistant Registrar
Date: 24 May 2023
At: 12pm
THE REASONS
The Parties
1. The Claimant is Moasa (the “Claimant”), a tenant of unit 0000, DIFC, Dubai, UAE (the “Apartment”).
2. The Defendant is Murit (the “Defendant”), the owner of the Apartment.
Background and the Preceding History
3. The underlying dispute arises over a tenancy contract dated 10 May 2022 (the “Lease Agreement”). As per the Lease Agreement, the period of tenancy is set out to be for one year from 15 June 2022 to 14 June 2023. The Lease Agreement provides that the rent of the Apartment is AED 130,000 per year, to be paid by way of six advance cheques.
4. During the tenancy period, the Apartment was sold from its previous owner to the Defendant. Thereafter, the Claimant was requested to vacate the Apartment upon the expiry of the Lease Agreement (i.e., on 14 June 2023). The Claimant sought to either renew the Lease Agreement for another year or to extend the Lease Agreement for a further period of two months after the expiry (i.e., until 14 August 2023) due to school commitments in that period and to cause minimal disruption to the livelihood of his children (the “Claimant’s Request”).
5. The Defendant accepted the Claimant’s Request and drafted an addendum to the Lease Agreement confirming the extension of the Lease Agreement for a further two months from the expiry date (the “Draft Addendum”). When the Draft Addendum was received by the Claimant, he objected to several of the clauses contained therein.
6. On 27 April 2023, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal (the “SCT”) seeking an extension of the Lease Agreement with a claim value of AED 21,666 reflecting the amount that the Claimant would pay to the Defendant for the two months extension.
7. On 4 May 2023, the Defendant filed his Acknowledgment of Service with the intention to defend all of the claim.
8. The matter was listed for a Consultation before SCT Judge Hayley Norton on 10 May 2023, however, the parties failed to reach a settlement.
9. The matter was called for a hearing before me on 22 May 2023, with the Claimant and Defendant attending (the “Hearing”).
Discussion
10. The relationship between the parties is governed by Clause 2.24 of the Lease Agreement along with the DIFC Leasing Law No. 1 of 2020 (the “DIFC Leasing Law”). Clause 2.24 reads as follows:
“This Lease shall be governed and constructed in accordance with the laws of the DIFC and the Lessor and Lessee shall submit to the exclusive jurisdiction of the Leasing Tribunal (part of the Small Claims Tribunal of the DIFC Courts) if there is any dispute that arises in connection with the Residential Lease.”
11. The Claimant submits that he has lived in the Apartment for 10 years and wishes to continue living in it. The Defendant states that he bought the Apartment with the knowledge that it was being occupied by the Claimant. The Defendant adds that the parties have already attempted and failed to reach an agreement to renew the Lease Agreement, however, the Claimant continues to request for either a renewal of the Lease Agreement or an extension of two months.
12. At the Hearing, the Defendant rescinded his offer to extend the Lease Agreement arguing that the offer is no longer available and that he wants to live in the Apartment. In addition, I note that the Draft Addendum remains unsigned by the Defendant.
13. The Lease Agreement and the DIFC Leasing Law are both silent in relation to the notice that should be provided to the Lessee in the situation that the Lessor does not wish to renew the Lease Agreement for another year.
14. The Lease Agreement is defined with a start date and an end date which both parties are aware of and agreed upon, as such, the Lease Agreement shall expire on 14 June 2023. It is the Defendant’s right to occupy the Apartment as long as he does not disrupt the lease period as per the signed Lease Agreement.
15. The Defendant wishes to live in the Apartment and has not proposed a new lease agreement with an increase in rent, as such the Claimant’s claim is denied as he has failed to establish a legal basis or right to remain within the Apartment beyond the expiry of the Lease Agreement.
16. The Claimant’s claim for AED 21,666 is not supported by any evidence. Therefore, I dismiss the Claimant’s claim for this amount. The Claimant shall vacate the Apartment upon the expiry of the Lease Agreement on 14 June 2023.
17. Each party shall bear their own costs.
