Papantoniou v Stonewall Hotel Pty Ltd

The appeal in *Papantoniou v Stonewall Hotel Pty Ltd* concerned a dispute over the exercise of a lease renewal option. The primary issue was whether the tenant had validly exercised the option to renew the lease, given the method of service of the notice of renewal. The case was heard in the Court of Appeal of New South Wales.

The court was required to determine two principal legal issues. Firstly, whether a lease provision referring to the modes of service prescribed by section 170 of the *Conveyancing Act 1919* (NSW) was mandatory or facultative. Secondly, the court had to consider whether the general law of landlord and tenant permitted service of notices on an agent, particularly where the lessors' address or whereabouts were not discoverable from the lease or a related variation document.

The Court of Appeal held that the lease provision referring to section 170 of the *Conveyancing Act 1919* (NSW) was facultative, not mandatory. Consequently, service of the notice of renewal on the solicitor for the lessor was considered valid, even though the lessors' whereabouts were not readily ascertainable. The court reasoned that the general law permits service on an agent in such circumstances. The court also considered an application to release the appellants from an implied "Harman" undertaking, but found no special circumstances to warrant such a release, particularly as the documents in question were of no real probative value.

The appeal was dismissed, and the appellants were ordered to pay the costs of all respondents. An order was also made *nunc pro tunc* regarding the service of the notice of appeal.