CITATION: Prasad & Anor -v- Fairfield City Council [2001] NSWADT 28 DIVISION: Retail Leases Division PARTIES: APPLICANTS
Daniel Prasad
Stephen Walker
RESPONDENT
Fairfield City CouncilFILE NUMBER: 005020 HEARING DATES: 28/08/2000
29/08/2000
30/08/2000
01/09/2000SUBMISSIONS CLOSED: 12/19/2000 DATE OF DECISION:
02/21/2001BEFORE: Fox R - Judicial Member APPLICATION: Claim for declaration of rights, obligations and liabilities under a lease - Claim for payment of money - Claim for relief against forfeiture MATTER FOR DECISION: Principal matter LEGISLATION CITED: Retail Leases Act 1994 CASES CITED: Aussie Traveller Pty Ltd v Marklea Pty Limited (1997) QCA 2
O’Keefe v Williams (1910) 11 CLR 171
High Trees House case [1947] KB 130
Waltons v Maher (1988) 164 CLR 386
Gordon v Lidcombe Investment Pty Limited [1966] 2 NSWR 9
Bocchina v Gorn Management 515A. 2D 1197(MD). 1986REPRESENTATION: APPLICANT
A Macpherson, solicitor
RESPONDENT
M Jenkins, barristerORDERS: 1. Occupancy by Applicants of the Respondent’s premises known as shop 4 the Abbotsbury Community Shopping Centre is governed by Lease for a term to end in April 2002, on the conditions and covenants contained in the Lease entered into between the Respondent and the Youssef brothers in 1994, as varied by Deed executed between the Applicants and the Respondent in November 1997. ; 2. Application by Applicant for relief against forfeiture granted.; 3. Pursuant to Section 72(1)(c)(iv) Respondent ordered to submit Lease document to the Applicants no later than 23 March 2001, all parties to execute it no later than 27th April 2001.; 4. Respondent to: ; (i) Prevent owner of shop 1 in the Centre from selling hot barbecued chickens or prepared coffee, by 23 March 2001, and if that is not done by that date, then the Applicants are relieved from the obligation to pay rent under their Lease from 23 March 2001 until such time as the Respondent effects such compliance by the occupier of shop 1.; (ii) Take all other action necessary to ensure that occupant of shop 1 trades within the authorised use in the Lease as presently registered on title.; 5. Respondent not to enter into any Lease for any part of the Abbotsbury Community Shopping Centre which would allow such premises to be used for the preparation or sale of take-away foods of any kind, or for a restaurant of any kind selling foods similar to those sold by the Applicants pursuant to the authorised use in the Applicants Lease.
1 The Applicants Messrs Prasad and Walker conduct a hot food take-away shop in a small suburban shopping centre entirely owned and conducted by the Respondent Council. The shopping centre is known as the Abbotsbury Community Shopping Centre and consists of a community hall facility, flanked by one very large shop (the supermarket), two very small shops, and two medium-sized shops, being shops numbered 4 and 5. Shop number 4 is the space occupied by the Applicant, and shop number 5 is the shop previously occupied as a video store, but, having been vacant for some 2…
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- Case
- [2001] NSWADT 28
- Decision Date
CaseChat Overview and Summary
The legal issues before the court were whether the council had breached the lease by allowing the occupant of shop 1 to sell hot barbecued chickens and prepared coffee and whether the council was required to prevent such sales. Additionally, the court had to determine if the Applicants were entitled to relief from forfeiture and if the council was to be restrained from entering into any lease that would allow the preparation or sale of takeaway foods or the operation of a restaurant selling similar foods to those sold by the Applicants.
The court found that the council had indeed breached the covenant by allowing the occupant of shop 1 to sell hot barbecued chickens and prepared coffee. The court also held that the Applicants were entitled to relief from forfeiture and that the council was to be restrained from entering into any lease that would permit the preparation or sale of takeaway foods or the operation of a restaurant selling similar foods to those sold by the Applicants. Consequently, the court ordered the council to submit a lease document to the Applicants, which all parties were to execute by a specified date. The council was further ordered to take action to prevent the occupant of shop 1 from selling hot barbecued chickens and prepared coffee and to ensure that all occupants of the shopping centre traded within the authorised use in their respective leases. The court also directed the council not to enter into any lease that would allow the preparation or sale of takeaway foods or the operation of a restaurant selling similar foods to those sold by the Applicants.
Orders
Orders of the court
1. Occupancy by Applicants of the Respondent’s premises known as shop 4 the Abbotsbury Community Shopping Centre is governed by Lease for a term to end in April 2002, on the conditions and covenants contained in the Lease entered into between the Respondent and the Youssef brothers in 1994, as varied by Deed executed between the Applicants and the Respondent in November 1997. ; 2. Application by Applicant for relief against forfeiture granted.; 3. Pursuant to Section 72(1)(c)(iv) Respondent ordered to submit Lease document to the Applicants no later than 23 March 2001, all parties to execute it no later than 27th April 2001.; 4. Respondent to: ; (i) Prevent owner of shop 1 in the Centre from selling hot barbecued chickens or prepared coffee, by 23 March 2001, and if that is not done by that date, then the Applicants are relieved from the obligation to pay rent under their Lease from 23 March 2001 until such time as the Respondent effects such compliance by the occupier of shop 1.; (ii) Take all other action necessary to ensure that occupant of shop 1 trades within the authorised use in the Lease as presently registered on title.; 5. Respondent not to enter into any Lease for any part of the Abbotsbury Community Shopping Centre which would allow such premises to be used for the preparation or sale of take-away foods of any kind, or for a restaurant of any kind selling foods similar to those sold by the Applicants pursuant to the authorised use in the Applicants Lease.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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