Ra Quality Meats Pty Ltd t/as Ra Quality Meats v Nambour Property Investments Pty Ltd

Ra Quality Meats Pty Ltd t/as Ra Quality Meats, the lessee, brought an application against Nambour Property Investments Pty Ltd, the lessor, before the Queensland Civil and Administrative Tribunal (QCAT). The dispute arose from a commercial lease agreement between the parties, executed in September 2018. The lessee, which faced financial difficulties and job losses during 2019 and 2020, fell into rent arrears due to the adverse effects of the COVID-19 pandemic. An agreement was reached on a payment plan on 21 April 2021, whereby the lessee would pay $15,000 each month, with $5,000 credited towards the arrears, and the plan would be reviewed in six months. However, the lessor issued a notice to remedy breach on 22 June 2021, which was later withdrawn, and a second notice on 7 July 2021, claiming unpaid rent and services for several months. The lessee argued that it had only been short by $1,567.66 in June 2021, and that the payment plan did not allow for an escalation of the entire debt in case of default.

The primary legal issue before QCAT was whether the Tribunal should grant an interim order in favour of the lessee, preventing the lessor from terminating the lease. The lessee argued that the payment plan should be upheld and that the lessor's claim for the full arrears was incorrect. The lessor, on the other hand, argued that the lessee had breached the lease by failing to pay the full amount of rent and services owed. Another issue was whether damages would be an adequate remedy for the lessee if the interim order was not granted.

QCAT found that the lessee's case was not strong, and that the balance of convenience did not favour the granting of the interim order. The Tribunal noted that there was no evidence to suggest that damages would not be an adequate remedy for the lessee if the relief sought was not granted. Consequently, QCAT refused the application for an interim order.

As a result of the Tribunal's decision, the application for interim order was dismissed. The lessor was not prevented from terminating the lease, and the lessee was required to continue making payments under the agreed payment plan, with the possibility of reviewing the plan in six months as initially agreed. The lessee was also left to pursue any other available remedies, including damages, in the event of a lease termination.