Allsvelte Pty Ltd v Cassegrain Wines Pty Ltd

Allsvelte Pty Ltd, the sublessor, sought relief against the forfeiture of a lease from Cassegrain Wines Pty Ltd, the sublessee, after the latter failed to exercise an option to renew. The dispute came before the Supreme Court of New South Wales. The primary issue before the court was whether Allsvelte had given valid notice for the purposes of section 133E of the Conveyancing Act 1919 (NSW), which stipulates the conditions under which a notice can be given to a lessee. Additionally, the court needed to determine the factors relevant to the exercise of discretion to grant relief against forfeiture under section 129 of the same Act.

The court examined the relationship between the parties, which had deteriorated to the point where it was likely to remain contentious. It held that the notice given by Allsvelte was not valid, as it contained matters not subject to a notice under section 133E. The court further noted that a sublessee cannot be disentitled from exercising an option to renew a sublease due to the sublessor's failure to give a valid notice. The court found that the sublessee was not precluded from exercising its option to renew the lease, and thus, relief against forfeiture was granted.

The final orders of the court were that Allsvelte's application for relief against forfeiture was dismissed, and Cassegrain Wines Pty Ltd was entitled to exercise its option to renew the lease. The court also directed the parties to negotiate in good faith to resolve any disputes that arose from the relationship between them.