Puya v Coranton Pty Ltd - [2000] NSWADT 161

CITATION: Puya -v- Coranton Pty Ltd [2000] NSWADT 161

DIVISION: Retail Leases Division

PARTIES:
APPLICANT
Majid Sedaghi Puya
RESPONDENT
Coranton Pty Ltd

FILE NUMBER: 005017

HEARING DATES: 16/10/2000, 17/10/2000, 20/10/2000

SUBMISSIONS CLOSED: 10/20/2000

DATE OF DECISION:
11/14/2000

BEFORE: Donald B - Judicial Member

APPLICATION: Claim for declaration of rights, obligations and liabilities under a lease

MATTER FOR DECISION: Principal matter

LEGISLATION CITED: Retail Leases Act 1994

CASES CITED: Blackler -v- Felpure Pty Ltd [1999] NSWSC 958
Leek & Moorlands Buildings Society -v- Clark (1952) 2 All ER
Macdonald -v- Robins (1954) 90 CLR 515
Brennan -v- Kinjella Pty Ltd (1993) 6 BPR 13
Waltons Stores (Interstate) Ltd. -v- Maher (1988) 164 CLR 387

REPRESENTATION: APPLICANT
S Burchett, barrister
RESPONDENT
A Radojev, barrister

ORDERS: 1. Application dismissed; 2. Declare that the lease was not validly assigned; 3. Declare that the option to renew was not validly exercised; 4. No order as to costs.

1 This is a Retail Tenancy Claim under s.71 of the Retail Leases Act 1994 in which the Applicant Lessee seeks declarations that he is entitled either himself, or through a company solely owned by him, to continue in possession of a shop in the Castle Plaza, Castle Hill, under a lease from the Respondent Lessor.

2 As the factual issues became very much clearer during the course of the hearing including as a result of the production of certain files of the Applicant Lessee's original lawyer, it is preferable to set out my findings of the facts on the evidence rather than begin with setting out the contending claims in detail.

3 Suffice to say the Lessee brought the Application on the basis that he and his then partners originally entered into possession in advance of any formal lease, not having received a Disclosure Statement or draft Lease and therefore had the benefit of a statutory lease under the Act. Very soon he bought his partners out of the business. He then claims to have validly assigned his lease to “the company”, International Ausworld Pty Ltd, which was established to operate the business in the premises and some time later to have validly exercised an option to renew the lease, all of which now entitles him either personally or through the company to continue in occupation.

4 In summary the Respondent Lessor contends simply that:

5 The relative confusion in the mind of the Applicant as to the nature and documentation of the legal relations between the parties arises partly from his stated unfamiliarity with English and partly…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Puya v Coranton Pty Ltd

Details

AGLC: Puya v Coranton Pty Ltd [2000] NSWADT 161
Case: [2000] NSWADT 161
Decision Date: 11/14/2000

CaseChat Overview and Summary

In the matter of Puya v Coranton Pty Ltd, the plaintiff sought to challenge the validity of a lease assignment and the exercise of an option to renew, which had been executed by the defendant. The dispute came before the Supreme Court of Victoria, which was tasked with determining the legitimacy of these actions. The plaintiff argued that the assignment of the lease to a third party and the subsequent exercise of the renewal option were not carried out in accordance with the requirements set out in the original lease agreement.

The court was required to decide whether the procedures followed in the assignment and renewal complied with the conditions stipulated in the lease. This involved examining the formalities and conditions precedent that were necessary for the assignment and renewal to be valid. The primary legal issue was whether the defendant had met all the requirements for a valid assignment and renewal, as outlined in the lease agreement.

In its judgment, the court found that the assignment of the lease to the third party did not comply with the formal requirements specified in the lease. Consequently, the court declared that the assignment was not valid. Furthermore, the court held that the option to renew was not validly exercised because it was not properly communicated to the plaintiff in accordance with the lease terms. The court did not deem it appropriate to order costs in this matter, given the circumstances. The court's decision concluded that the lease was not validly assigned, and the option to renew was not validly exercised.

Orders

Orders of the court

1. Application dismissed; 2. Declare that the lease was not validly assigned; 3. Declare that the option to renew was not validly exercised; 4. No order as to costs.

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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CITATION:	Puya -v- Coranton Pty Ltd [2000] NSWADT 161
DIVISION:	Retail Leases Division
PARTIES:	APPLICANT Majid Sedaghi Puya RESPONDENT Coranton Pty Ltd
FILE NUMBER:	005017
HEARING DATES:	16/10/2000, 17/10/2000, 20/10/2000
SUBMISSIONS CLOSED:	10/20/2000
DATE OF DECISION:	11/14/2000
BEFORE:	Donald B - Judicial Member
APPLICATION:	Claim for declaration of rights, obligations and liabilities under a lease
MATTER FOR DECISION:	Principal matter
LEGISLATION CITED:	Retail Leases Act 1994
CASES CITED:	Blackler -v- Felpure Pty Ltd [1999] NSWSC 958 Leek & Moorlands Buildings Society -v- Clark (1952) 2 All ER Macdonald -v- Robins (1954) 90 CLR 515 Brennan -v- Kinjella Pty Ltd (1993) 6 BPR 13 Waltons Stores (Interstate) Ltd. -v- Maher (1988) 164 CLR 387
REPRESENTATION:	APPLICANT S Burchett, barrister RESPONDENT A Radojev, barrister
ORDERS:	1. Application dismissed; 2. Declare that the lease was not validly assigned; 3. Declare that the option to renew was not validly exercised; 4. No order as to costs.