Global College Pty Ltd v Sooncorp Holdings Pty Ltd

In this matter, Global College Pty Ltd, the lessor, sought declarations and orders from the court that Sooncorp Holdings Pty Ltd, the lessee, was bound to consent to the assignment of the lease. The dispute was heard and determined in the Supreme Court of New South Wales. The central issue before the court was whether the court should grant a declaration that the defendant was required to provide its consent to the assignment of the lease, or alternatively, an order compelling the defendant to consent to the assignment.

The court considered the nature of the covenant requiring consent to assignment and the appropriate legal remedy for the plaintiff if the defendant refused to consent. It was established that the court does not have the authority to make declarations or issue injunctions in such cases. Instead, the court noted that if the defendant was obliged to provide consent, it could not treat the assignment as a forfeiture. The appropriate course of action for the plaintiff was to proceed with the assignment and challenge the defendant's refusal to consent if necessary.

Ultimately, the court found that the plaintiff was not entitled to the declarations or orders it sought. The proper procedure for the plaintiff, if it wished to assign the lease, was to do so and then seek appropriate remedies if the defendant refused to consent. The court declined to intervene in the dispute, emphasising that it would not make declarations or issue injunctions regarding the defendant's consent to the assignment. The court's decision highlighted the importance of following the correct legal procedures when dealing with assignment covenants in lease agreements.