Supreme Court imposes new requirement for creation of ‘statutory tenancy’

By George Tsardellis

IN THE recent case of Fysentzides vs K & C Snooker & Pool Entertainment, Civil appeal no.

30/2019, dated 1/6/2020, the Supreme Court of Cyprus has decided on a legal point related to the

jurisdiction of the Rental Control Court Law of 1983 (L. 23/1983).

The facts of the case were as follows. The Plaintiff had leased premises in Larnaca to the Defendants

for a two year period. The tenancy agreement included an option for the Defendants to renew the

tenancy for an additional period of two years. To exercise this option, the Defendants were

required to give one month written notice prior to the expiration date of the initial tenancy period.

The Defendants did not give written notice for the renewal of the tenancy agreement and did not

vacate the premises at the end of the initial tenancy period. Consequently, the Plaintiff brought an

action for trespassing against them to the District Court of Larnaca. Among other remedies, the

Plaintiff sought for an eviction order to be granted against the Defendants.

During the trial, the Defendants argued that the District Court did not have jurisdiction to hear the

case since they were statutory tenants as provided by the Rental Control Law of 1983 (L. 23/1983).

It was the Defendants’ position that under the Rental Control Law of 1983 (L. 23/1983), the Rental

Control Court has exclusive jurisdiction to hear the case because the following requirements were

met:

1) There was a tenancy agreement between the Plaintiff and the Defendant.

2) The tenancy period had expired.

3) After the expiration of the tenancy period, the tenant retained the premises and paid the last

agreed rent.

4) The premises was situated in a control area as provided by the Ministerial Cabinet.

5) The premises was constructed prior to 31/12/1999.

The Plaintiffs did not dispute the application and the correctness of these requirements. However,

they argued that under article 2 of the Rental Control Law of 1983 (L. 23/1983) which provides for

the interpretation of the word ‘premises’, a tenant becomes a statutory tenant if the premises in

question were rented, or were available for rent, prior to 31/12/1999. If not, the tenant does not

become a statutory tenant and therefore, the Rental Control Court does not have any jurisdiction.

On 16/12/2018, the District Court judge disagreed with the Plaintiff’s argument and upheld that of

the Defendants. As a result, the case was suspended and referred to the Rental Control Court. The

Plaintiff appealed the District Court judgment, on the grounds that the District Court judge was

wrong when he had disagreed with their argument.

The Plaintiffs’ argument has never previously been raised before, or examined by, the Supreme

Court.

On 1/6/2020, the Supreme Court of Cyprus issued its judgment overturning the judgment of the

District Court. The Supreme Court agreed with the Plaintiff’s argument that, in addition to the five

requirements summarised above, the tenant becomes a statutory tenant only if the premises in

question were also rented, or were available for rent, prior to 31/12/1999.

The Supreme Court judgement is significant, since it appears that their conclusion has imposed a

new requirement in cases where the application of the Rental Control Court is in question. As a

result of the judgment, a person who aims to enjoy the rights provided by the Rental Control Law

needs to be aware of the date of the first time the premises in question was rented, or, was made

available for rent. If this date is later than 31/12/1999, he cannot rely upon being designated a

statutory tenant when his tenancy agreement expires. If he remains in the premises without the

consent of the landlord, the landlord may seek and receive an eviction order against him for

trespass. Following on from the Supreme Court Judgement it is advisable that tenancy agreements

should include a clause specifying whether the premises in question were rented, or were available

for rent, prior to 31/12/1999.

 

• George Tsardellis is a lawyers at Elias Neocleous & Co LLC