Akbulut v Crafted Central Pty Ltd

Akbulut, the landlord, brought proceedings against Crafted Central, the tenant, in the Supreme Court of Victoria, seeking to terminate the lease of a retail premises. The primary issue was whether the landlord could, after giving notice of termination due to proposed demolition, subsequently issue another notice of termination for breach of lease. This raised questions about the interpretation of section 78 of the Leases (Commercial and Retail) Act 2001 and the applicability of the Shepherd principle. Additionally, the court had to determine if the tenant had breached any terms of the lease and if the landlord was estopped from relying on such breaches.

The court found that the first notice of termination was not effective as it was not explicitly tied to a specific breach of lease but rather was a general notice potentially covering any breach. Therefore, the first notice did not terminate the lease but rather gave notice of the landlord's intention to terminate. The court applied the Shepherd principle, which suggests that a landlord cannot rely on a subsequent breach notice if the initial notice was not tied to a specific breach. The court also held that the tenant had not breached the lease in a manner that would justify termination, and thus, the landlord was estopped from relying on any alleged breach.

Ultimately, the court dismissed the landlord's application to terminate the lease. The first notice was not effective, and the subsequent notice for breach was not valid given the initial notice. The court found that the tenant had not breached the lease and that the landlord was estopped from relying on any breaches. The final orders included dismissing the application, awarding costs to the tenant, and making a declaration that the lease remained in effect.