International Business College Pty Ltd v Alphacrucis College Ltd (previously known as 'Southern Cross College of the Assemblies of God in Australia Ltd')

The case between International Business College Pty Ltd and Alphacrucis College Ltd, formerly Southern Cross College of the Assemblies of God in Australia Ltd, was heard by the Supreme Court of New South Wales. The dispute centred around the termination of a tenancy agreement by Alphacrucis College against International Business College. The latter sought a declaration that the former was not entitled to terminate the lease and requested relief against forfeiture. The central legal issues the court needed to address were whether Alphacrucis College was justified in terminating the lease and, if so, whether International Business College was entitled to relief against forfeiture.

The court examined the grounds for termination under the lease agreement and found that International Business College had indeed defaulted on the lease on two separate occasions, thereby justifying Alphacrucis College's right to terminate. The court also assessed the amount of arrears, confirming that International Business College was in arrears. The court then turned to the issue of relief against forfeiture, considering the discretionary factors that must be taken into account in such matters. The court noted that International Business College had not brought the rent up to date, had not provided evidence that it could service the lease in the future, and that the bond was insufficient to cover present or future defaults. Given these considerations, the court found that relief against forfeiture was not warranted.

In summary, the court upheld Alphacrucis College's right to terminate the lease and dismissed International Business College's application for relief against forfeiture. The court's decision was based on the clear defaults by International Business College and the absence of any compelling evidence that it could meet its lease obligations moving forward. This case underscores the importance of strict compliance with lease terms and the potential consequences of failing to do so.