Pozetu Pty Ltd v Alexander James Pty Ltd

In the New South Wales Court of Appeal, Pozetu Pty Ltd sought leave to appeal a decision of the Appeal Panel of the Civil and Administrative Tribunal concerning a retail shop lease. The dispute arose from the purported exercise of an option to renew the lease by Alexander James Pty Ltd. It was conceded that a term of the lease, which stipulated alternative methods for ascertaining the rent, was rendered void by section 18(3)(c) of the *Retail Leases Act 1994* (NSW). Pozetu argued that the renewed lease was void due to the absence of this essential term, and alternatively, that Alexander James was a tenant at will, entitled to terminate the tenancy by giving one month's notice pursuant to section 127(1) of the *Conveyancing Act 1919* (NSW).

The Court of Appeal was required to determine whether the absence of a valid rent determination clause rendered the purported exercise of the option to renew void, and consequently, whether Alexander James was a tenant at will. The Court considered the implications of the void rent clause on the essential terms of the renewed lease and the legal status of the tenant.

The Court of Appeal refused leave to appeal on most grounds, but granted leave on others, directing Pozetu to file an amended notice of appeal. The Court also directed the respondents to file amended Notices of Contention, including a ground that the Appeal Panel erred in finding that the exercise of the option created a valid and enforceable agreement for a new lease. Ultimately, the appeal was dismissed, and the summons for judicial review was also dismissed. Pozetu was ordered to pay the costs of the respondents.