Church of England Property Trust Diocese of Sydney v Metropolitan Mutual Permanent Building and Investment Association Limited [1932] HCA 35

Church of England Property Trust Diocese of Sydney v Metropolitan Mutual Permanent Building and Investment Association Limited [1932] HCA 35

Rates levied during the term under the relevant Act, even if notice was not served until after the term, fall within a lease covenant obliging the tenant to pay all rates assessed or imposed during the lease term. The liability arises upon the resolution levying the rate, not upon service of a notice.

Parties
Appellant, Plaintiff: Church of England Property Trust, Diocese of Sydney; Respondent, Defendant: Metropolitan Mutual Permanent Building and Investment Association Limited
Jurisdiction
Australia
Procedural Posture
Appeal / Appeal From the Supreme Court of New South Wales (full Court) on Demurrer
Outcome
Appeal allowed. Judgment for the plaintiff on the demurrer.
Legal Topics
Covenant to Pay Rates, Water Rates Liability, Lease Interpretation
Property Law Landlord and Tenant Covenant to Pay Rates Water Rates Liability Lease Interpretation

Case Brief

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Parties

Church of England Property Trust, Diocese of Sydney

Appellant, Plaintiff

Metropolitan Mutual Permanent Building and Investment Association Limited

Respondent, Defendant

Procedural Posture

Appeal / Appeal From the Supreme Court of New South Wales (full Court) on Demurrer

Legal Issues

  1. 1 Whether rates levied for a period extending beyond the lease term but assessed during the lease term are payable by the tenant under the lease covenant.
  2. 2 Whether the absence of service of rate notice during the term affects the tenant's liability under the covenant.

Ratio Decidendi

Rates levied during the term under the relevant Act, even if notice was not served until after the term, fall within a lease covenant obliging the tenant to pay all rates assessed or imposed during the lease term. The liability arises upon the resolution levying the rate, not upon service of a notice.

Court Disposition

Appeal allowed. Judgment for the plaintiff on the demurrer.

Orders

  • Judgment of the Supreme Court discharged.
  • Judgment for the plaintiff upon the demurrer.