A tenant operating a business from a commercial property in Dubai. Almost a year later, the landlord executed a mutual Lease Termination Agreement with the tenant, which provided that the property be vacated and handed over to the landlord instead of further renewal as per law. However, later the landlord issued a 12-month eviction notice under Article 25 of Law No. 26 of 2007 as amended by Law No. 33 of 2008 (Dubai Tenancy Law), giving the tenant a 12-month period before eviction.
Later on the date of termination and surrender of the property as agreed in the Lease Termination Agreement, the tenant refused to vacate the property because the tenant took the position that the 12-month eviction notice superseded the lease termination agreement and the tenancy period was extended until the date of the completion of the 12-month notice period.
However, the landlord did not accept the position and filed an eviction claim before the First Instance Committee of RDC.
First Instance Judgement
The landlord sought the tenant’s eviction and payment of rent until the actual eviction. The First Instance Committee of RDC ruled in favour of the landlord, for the following reasons:
- That the title of the Lease Termination Agreement and certain clauses therein clearly show that the parties agree to terminate the lease and for the tenant to vacate the property on the specific date mentioned in the lease termination agreement.
- The parties can mutually agree to terminate the lease prior to its expiry.
- That 12-month legal notice issued subsequently does not specifically state that it supersedes the lease termination agreement.
This ruling effectively treated the Lease Termination Agreement as final and enforceable, without recognizing the later eviction notice or the tenant’s statutory right to remain in occupation until the expiry of that notice period.
Appeal Committee’s Decision
The Appeals Committee allowed the appeal and set aside the First Committee Judgment.
The Appeals Committee agreed with the tenant’s position that the 12-month eviction notice remained legally effective and had to be honored and the Lease Termination Agreement did not terminate the lease prematurely.
It was observed by the Appeals Committee that after signing the Lease Termination Agreement landlord’s service of a 12-month eviction notice later on to the tenant waived the clause regarding vacating the property pursuant to the Lease Termination Agreement and granted the appellant a new deadline for vacating.
Accordingly, the Appeals Committee reversed the eviction order, dismissed the landlord’s claim, and awarded costs in favour of the tenant.
Key Insight
This case reinforces that even where a Lease Termination Agreement is signed, it cannot nullify the statutory eviction notice period mandated by Dubai Tenancy Law. The Appeals Committee reaffirmed that the eviction can only lawfully occur after expiry of the 12-month notice, not merely even if the Lease Termination Agreement was previously executed.
The ruling highlights the importance of distinguishing between a Lease Termination Agreement and actual termination in the light of 12-month eviction notice, ensuring that tenants’ rights remain protected until the lawful expiry of notice.
