Claim No. SCT 246/2023
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
(1) MR. MISKAT
(2) MS. MAISIN
|Hearing :||16 August 2023|
|Judgment :||18 August 2023|
JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI
UPON the Claim Form being filed on 4 July 2023
AND UPON a hearing having been held before H.E. Justice Maha Al Mheiri on 16 August 2023, with the Claimant and the Defendants attending
AND UPON reading the submissions and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendants shall pay the Claimant the amount of AED 64,548.20.
2. The Defendants shall vacate the Apartment on 31 August 2023.
3. The Defendants shall pay the Claimant the Court filing fee in the amount of AED 367.25.
SCT Judge and Assistant Registrar
Date: 18 August 2023
1. The Claimant is Mr. Mirubin (the “Claimant”), the owner of Unit 000 in, DIFC, Dubai, UAE (the “Apartment”).
2. The First Defendant is Mr. Miskat (the “First Defendant”) and the Second Defendant is Ms. Maisin (the “Second Defendant”), both being the tenants leasing the Apartment, referred to as the Defendants (the “Defendants”).
Background and the Preceding History
3. The underlying dispute arises over a tenancy contract dated 1 July 2022 (the “Lease Agreement”). As per the Lease Agreement, the period of tenancy is set out to be for one year from 1 July 2022 to 30 June 2023. The Lease Agreement provides that the rent for the Apartment is AED 380,000 per year, to be paid by way of three cheques.
4. On 27 March 2023, the Claimant served a notice on the Defendants to vacate the Apartment with the expiry of the Lease Agreement. The Defendants tried to negotiate a new lease amount, but the parties failed to reach an agreement.
5. There were numerous communications between the parties in relation to the renewal of the Lease Agreement however the issue remained unresolved.
6. On 4 July 2023, the Claimant filed a claim in the DIFC Courts’ Small Claims Leasing Tribunal (the “SCLT”) seeking payment from the Defendant for overstay in the amount of AED 5,000 and evacuation of the Apartment.
7. The matter was listed for a Consultation before SCT Judge Shahla Al Ghareeb on 18 July 2023, however, the parties failed to reach a settlement.
8. Thereafter, the matter was listed for a hearing before me on 16 August 2023, with the Claimant and Defendants in attendance (the “Hearing”).
9. The relationship between the parties is governed by the Lease Agreement along with the DIFC Leasing Law No. 1 of 2020 (the “DIFC Leasing Law”), as the Apartment is located within the DIFC jurisdiction, the Lease Agreement shall be governed and constructed in accordance with the laws of the DIFC, and the Lessor and Lessees shall submit to the exclusive jurisdiction of the Small Claims Leasing Tribunal if there is any dispute that arises in connection with the Apartment.
10. 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 30 June 2023. It is the Defendants’ right to occupy the Apartment until this date, as long as they do not miss or delay any of the payments of the rent due to the Apartment as per the signed Lease Agreement.
11. It was the Claimant’s intention to live in the Apartment until the end of the lease period (albeit this period has now since passed), and pursuant to the terms of the Lease Agreement, the Defendants are required to vacate the Apartment with the end of the Lease Agreement.
12. The Defendants failed to establish any legal basis or right to renew the Lease Agreement or negotiate a new Lease amount for the Apartment. Clause 4 of the additional conditions mutually agreed by the parties which is attached to the Lease Agreement, reads as follows:
“4 VACATING / NOTICE
4.1 In the event that the Tenant wishes to renew the lease or vacate at the end of the tenancy, they should notify the Landlord in writing 90 days prior to the expiry date of the rental contract.
4.2 The Landlord has to submit 90 days in advance prior to the end of the contract to the Tenant to inform them of any changes in rent/ or Terms and Conditions of the Tenancy Contract.
4.3 In the event of termination of contract prior to the mentioned date of expiry, the Tenant will have to inform the Landlord with a written notice 60 days in advance and indemnify the Landlord with an amount equivalent of 2 months’ rent”
13. As the Claimant did not break the Lease Agreement before the expiry of the period, he is not obligated to provide any notice period to the Defendant. Although the Defendants wanted to renew the Lease Agreement unfortunately they did not reach a mutual understanding and as such the Lease Agreement will expire at the end of the Lease period (i.e. 30 June 2023).
14. The Claimant has sought to claim for the sum of AED 5,000 which reflects the overstay period, however up to the date of this judgment the Defendants are still occupying the Apartment therefore I shall order the Defendants to pay rent until the 31 August 2023, for the Defendants to have time to find a substitute living arrangement and for them to take the required measures to vacate the Apartment by the end of August.
15. I shall order that the Defendants vacate the Apartment on 31 August 2023. As the Claimant’s daily rent is AED 1,041.10. The Defendants shall be ordered to pay the additional 62 days’ rent (i.e. from 1 July 2023 to 31 August 2023) in the amount of AED 64,548.20.
16. The Defendants shall pay the Claimant the amount of AED 64,548.20.
17. The Defendants shall vacate the Apartment on 31 August 2023.
18. The Defendants shall pay the Claimant the Court filing fee in the amount of AED 367.25.