Drama Unit Pty Ltd v Fearndale Holdings Pty Ltd (Administrator Appointed) & Anor [2018] NSWSC 1895

Drama Unit Pty Ltd v Fearndale Holdings Pty Ltd (Administrator Appointed) & Anor [2018] NSWSC 1895

The termination of the lease by Fearndale was ineffective because the notice given to Drama Unit to remedy the breach (failure to obtain mining authority) did not allow a 'reasonable time' as required by s 129 of the Conveyancing Act 1919 (NSW); thus, the right of re-entry or forfeiture was not enforceable and the lease was not validly terminated on that basis.

Jurisdiction
Australia
Judgment Date
10 December 2018
Procedural Posture
Equity Corporations List / Final Hearing (principal Judgment)
Outcome
Lease termination by the First Defendant was ineffective; no order for possession was made; costs reserved; application for possession adjourned for further directions.
Legal Topics
['lease Termination' 'notice to Remedy Breach' 'forfeiture of Lease' 'reasonable Time to Remedy Breach' 'registration of Lease' 'specific Performance' 'relief Against Forfeiture']
['real Property' 'equity' 'corporate Insolvency'] ['lease Termination' 'notice to Remedy Breach' 'forfeiture of Lease' 'reasonable Time to Remedy Breach' 'registration of Lease' 'specific Performance' 'relief Against Forfeiture']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Equity Corporations List / Final Hearing (principal Judgment)

Legal Issues

  1. 1 ['Whether Fearndale validly terminated the lease by notice pursuant to s 129 of the Conveyancing Act 1919 (NSW)' 'Whether Drama Unit was in breach of covenant in failing to obtain regulatory approvals under the Mining Act 1992 (NSW) before entering the lease' 'Whether the notice to remedy breach gave a reasonable time for remedying the breach' 'Whether the lease is valid and enforceable' 'Whether specific performance or injunctive relief should be granted as to registration of the lease']

Ratio Decidendi

The termination of the lease by Fearndale was ineffective because the notice given to Drama Unit to remedy the breach (failure to obtain mining authority) did not allow a 'reasonable time' as required by s 129 of the Conveyancing Act 1919 (NSW); thus, the right of re-entry or forfeiture was not enforceable and the lease was not validly terminated on that basis.

Court Disposition

Lease termination by the First Defendant was ineffective; no order for possession was made; costs reserved; application for possession adjourned for further directions.

Orders

  • ['Paragraph 9 of the Amended Summons filed 29 November 2018 be stood over to the Corporations Directions List at 10am on 4 February 2019.' 'Costs be reserved.' "The parties have liberty to restore, for directions only, on two business days' notice."]