Rai v Farah

The dispute between Dhan Pat Rai and Mouda Laser Skin Clinic Pty Ltd involved a retail lease for a shop within a shopping centre. The defendant, Mouda Laser Skin Clinic, was the lessee of the premises, while the plaintiff, Dhan Pat Rai, was the landlord. The primary issue before the court was whether Mouda Laser Skin Clinic had breached the lease agreement and, if so, what damages, if any, should be awarded to Rai. The case was heard and determined in the Federal Circuit Court of Australia.

The court was required to examine the terms of the lease agreement to determine if there had been a breach by Mouda Laser Skin Clinic. The specific issue was whether Mouda Laser Skin Clinic had failed to maintain the premises in a reasonable state of repair and had breached the covenant to keep the premises in good condition. The court also needed to assess whether the alleged breaches warranted the termination of the lease and, if so, what damages should be awarded to Rai for the termination.

In its decision, the court found that Mouda Laser Skin Clinic had indeed breached the lease by failing to maintain the premises in a reasonable state of repair. The court noted that the breaches were serious enough to justify the termination of the lease. Consequently, the court awarded Rai damages in the amount of $7830.00, which represented the difference between the rent Mouda Laser Skin Clinic should have paid for the remaining term of the lease and the rent received. The court dismissed Rai's application for further costs, noting that if either party wished to seek costs, they were to file submissions within the specified timeframe.

The final orders of the court were that Mouda Laser Skin Clinic was to pay Rai $7830.00 within 28 days. The court also specified that if either party wished to apply for costs, they were to file submissions within 14 days, with any reply submissions to be filed and served within a further 14 days thereafter. The application was otherwise dismissed.