Darestani v CSJJ Pty Ltd t/a Vanilla Rental

The appeal in Darestani v CSJJ Pty Ltd t/a Vanilla Rental was brought by the tenants against the lessor, who sought to recover the bond held by the Residential Tenancies Authority. The tenants filed a dispute resolution request which was not resolved at conciliation, leading to an application by the tenants in the Tribunal to resolve a tenancy dispute. The lessor responded with a counter application. The Adjudicator determined both claims in the proceedings. The tenants sought leave to appeal on the basis that the lessor had failed to seek conciliation through the Residential Tenancies Authority before filing the counter application.

The primary legal issue before the court was whether the requirement to seek conciliation through the Residential Tenancies Authority prior to filing a counter application applied in the circumstances of this case. The tenants argued that the lessor should have sought further conciliation before proceeding with the counter application. However, the court found that the true issue in dispute was the tenants' failure to comply with the obligations to return the property in an appropriate condition upon vacating. Given this, the court determined that further conciliation prior to making the counter application was unnecessary.

The court refused leave to appeal on the basis that the lessor’s failure to seek conciliation prior to filing the counter application was not a material error given the nature of the dispute. The court held that the primary issue in the dispute was the tenants’ failure to return the property in an appropriate condition, and not the procedural steps taken by the lessor. Consequently, the appeal was dismissed, and leave to file fresh evidence was granted to allow the tenants to address the substantive issue of their failure to return the property in an appropriate condition.