Todarello Property Investments Pty Ltd v GJA Kalra Pty Ltd [2021] NSWSC 1678

Todarello Property Investments Pty Ltd v GJA Kalra Pty Ltd [2021] NSWSC 1678

The defendant validly exercised the option to renew the lease; the prescribed notice under s 133E was not served within the required time, so breaches did not preclude exercise. The plaintiff's purported termination of the lease was invalid because it was prohibited by COVID-19 pandemic special provisions in Schedule 5 to the Conveyancing Regulation, as the plaintiff failed to renegotiate rent in good faith as required. Judgment for arrears was given based on agreement of amounts owed as at 5 October 2021.

Jurisdiction
Australia
Judgment Date
20 December 2021
Procedural Posture
Principal Judgment / Final Judgment
Outcome
Option to renew validly exercised; termination of lease invalid; judgment for arrears in favour of plaintiff.
Legal Topics
['leases' 'options to Renew' 'termination of Leases' 'covid 19 Pandemic Special Provisions' 'relief Against Forfeiture' 'recovery of Arrears']
['land Law' 'equity'] ['leases' 'options to Renew' 'termination of Leases' 'covid 19 Pandemic Special Provisions' 'relief Against Forfeiture' 'recovery of Arrears']

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Procedural Posture

Principal Judgment / Final Judgment

Legal Issues

  1. 1 ['Whether the defendant validly exercised the option to renew the lease for a further term of 5 years' 'Whether the plaintiff validly terminated the lease for breaches by the defendant and whether COVID-19 pandemic regulations precluded termination' 'Whether the plaintiff is entitled to recover arrears owed under the lease']

Ratio Decidendi

The defendant validly exercised the option to renew the lease; the prescribed notice under s 133E was not served within the required time, so breaches did not preclude exercise. The plaintiff's purported termination of the lease was invalid because it was prohibited by COVID-19 pandemic special provisions in Schedule 5 to the Conveyancing Regulation, as the plaintiff failed to renegotiate rent in good faith as required. Judgment for arrears was given based on agreement of amounts owed as at 5 October 2021.

Court Disposition

Option to renew validly exercised; termination of lease invalid; judgment for arrears in favour of plaintiff.

Orders

  • ['Declaration that the defendant validly exercised the option to renew the lease and is entitled to a new lease for a further 5-year term commencing 18 January 2020.' "Declaration that the plaintiff's purported termination of the lease was invalid and of no effect." 'Judgment for the plaintiff against the defendant...