Court of Appeal Rejects Castle Oil’s Request to Halt Eviction Over Eight-Year Rent Default

A gas station in the Gambia

The Court of Appeal has dismissed an application by Castle Oil Limited, operators of Castle Patrol Station, seeking a stay of execution of a High Court judgment ordering their eviction and payment of outstanding rent to Alfusainey Dukureh.

In a unanimous ruling delivered by Justices S. Wadda-Cisse, H. C. Roche, and K. Sillah, the court held that Castle Oil failed to demonstrate the “special circumstances” required to justify a stay, particularly in light of the company’s failure to pay rent for over eight years.

The dispute stems from a lease agreement originally entered into in May 2001 between Castle Oil and the late Alhaji Musa Dukureh and his son, Alfusainey Dukureh. The initial 15-year lease expired in May 2016, but a subsequent 15-year agreement was signed in January 2016. However, in April 2016, Alfusainey Dukureh, having received his father’s half share in the property through a 2007 Deed of Assignment, notified Castle Oil of his decision not to renew the tenancy and requested that they vacate the premises by April 30, 2016.

Castle Oil, claiming the new lease had already been executed in April 2016, refused to vacate. This prompted Dukureh to initiate legal action, seeking possession of the property, mesne profits of USD 16,000 annually from the date of expiration, and 20% interest per annum.

On July 12, 2024, Justice Z. Jawara-Alami of the High Court ruled in favour of Dukureh, ordering Castle Oil to vacate the premises and pay mesne profits at a reduced rate of USD 12,000 per annum from April 30, 2016, until possession is delivered, along with 4% annual interest.

Dissatisfied with the ruling, Castle Oil appealed and sought a stay of execution, arguing that the appeal had merit and that enforcement of the judgment would render their appeal futile. They claimed significant investment in the property—including a functioning petrol station, underground tanks, and pumps—and warned of irreversible financial loss and job cuts if evicted. The company also expressed willingness to pay rent arrears totaling over USD 96,000.

Counsel for the Respondent countered that Castle Oil had failed to show valid grounds for a stay. They emphasized that the appeal did not raise any substantial legal issues and argued that Castle Oil had remained on the property without paying rent or rates for eight years—conduct which the court should not reward. It was also argued that the appeal would not be rendered nugatory, as the Respondent had demonstrated sufficient financial means to refund the judgment sum if necessary.

In delivering the lead judgment, Justice Wadda-Cisse emphasized that the grant of a stay of execution is a discretionary remedy, reserved for cases where compelling “special circumstances” exist. The court found no such circumstances in this case, noting that mere assertions of hardship or irreparable harm were insufficient.

The court further noted that the Respondent’s affidavit included unchallenged property valuation reports demonstrating financial capability to refund the judgment amount if the appeal succeeded. Conversely, Castle Oil’s admission that it had not paid rent for eight years amounted to a breach of its tenancy obligations.

The court invoked the equitable principles that “he who comes to equity must come with clean hands” and “he who seeks equity must do equity,” concluding that Castle Oil’s conduct did not merit the court’s discretionary relief.

While acknowledging Castle Oil’s investment in the site, the court cited provisions in the lease agreement stating that all tenant-constructed buildings would become the landlord’s property upon lease termination, with no compensation due. As such, the court ruled that the construction of the petrol station did not constitute a special circumstance warranting a stay.

The panel unanimously agreed that granting the application would impose greater hardship on the Respondent and dismissed the application. Castle Oil was also ordered to pay D25,000 in costs.