KCC 8/2004
Type
Case
Court
Kuwait Court of Cassation
Jurisdiction
Kuwait
Taxonomy
Rent & Service Charges, Leases & Tenancy Agreements
Copyright
LexisNexis
Decision date
27 Oct 2004
Catchwords
Landlord & Tenant – Renewal of tenancy agreement – Rent Review – Court Role
The original dispute involved the rent which was to be set after a rent agreement was renewed and extended. The parties had failed to reach an agreement on the new rent. A key point was that under Article 565 where a rental contract is renewed the parties are entitled to seek help from the court in setting the new rent and rents of similar parties at the time of the contract renewal are used to make this estimate.
Background
A company filed a case (Case Number: 678/2003- Commercial) against a tenant requesting a rent increase of 100%. The company claimed the tenant had rented a property at an annual rent of 4608 Dinars which was to be paid in four instalments and that both parties had agreed that when the contract was renewed a new rent would be set in writing. However, the parties had failed to agree on a new rent.
The court of first instance dismissed the case.
The company appealed before the Court of Appeal (Appeal Number: 1079/2003 commercial). On 07/12/2003 the Court of Appeal dismissed the appeal and upheld the ruling.