Polish Club Limited v Gnych (No 2)

The appeal concerned a dispute between Polish Club Limited and Mr Gnych regarding a lease of licensed premises. The primary issue before the Court of Appeal of New South Wales was whether a licence over an adjacent area served any useful purpose given that the lease of the licensed premises itself had been found to be void and unenforceable.

The court was required to determine the enforceability of the lease agreement and the consequential status of the liquor licence associated with the premises. Specifically, the court had to consider whether the licence could subsist independently of the void lease or if its purpose was inextricably linked to the unenforceable agreement.

The Court of Appeal allowed the appeal, setting aside the previous declarations and orders made by the primary judge. The court reasoned that if the lease was void and unenforceable, then the licence, which was granted in relation to those premises under that lease, could not serve any good purpose. Consequently, the proceedings were dismissed.