Adhikari & Anor v Walshe & Ors (Residential Tenancies)

The case of Adhikari & Anor v Walshe & Ors involved a dispute between the tenants and the lessors of a residential property. The property was leased to three tenants, one of whom was identified as a guarantor but was not a resident. The tenants abandoned the premises, leaving with rent owing and causing damage to the property. The dispute centred on the liabilities of the guarantor compared to the other tenants, whether the guarantor’s action to remove herself as a guarantor relieved her of her liabilities as a tenant, and whether the lessors' actions reduced the guarantor's liabilities. The case was heard by the Civil and Administrative Tribunal of New South Wales.

The legal issues before the court included determining the respective liabilities of the tenants and the guarantor, particularly in light of the guarantor's non-residency and her subsequent removal from the lease as a guarantor. The court had to consider whether the guarantor's action to step down from her guarantor status absolved her of any tenant liabilities. Additionally, the court examined whether the lessors' acceptance of a reduced rent payment from one tenant and their failure to promptly address the abandonment and subsequent damage influenced the guarantor's liability.

The court found that the residential tenancy had ended on 21 December 2021. It determined that the non-resident guarantor remained liable as a tenant due to her initial role in the lease agreement. The court rejected the guarantor's argument that her action to remove herself as a guarantor relieved her of tenant liabilities. Furthermore, the court held that the lessors' actions did not reduce the guarantor's liability. The court ordered the tenants to compensate the lessors for unpaid rent and damage to the premises.

The Tribunal ordered the non-resident guarantor to pay $320 in compensation for unpaid rent. It further ordered the tenants to collectively pay $16,629.58 in compensation, broken down into unpaid rent and various repair and cleaning costs. These amounts were to be paid within four weeks from the date of the order.