Steel Supplies Bega v Shoveller

Steel Supplies Bega (the tenant) sought to terminate the lease with Shoveller (the landlord) on the grounds of breaches of the lease, including non-compliance with car parking conditions and insurance requirements. The tenant also sought relief against forfeiture and relief from losing an option to renew the lease. The Supreme Court of New South Wales was asked to determine whether the landlord was entitled to terminate the lease, and if the tenant was entitled to relief against forfeiture and renewal of the lease.

The court had to decide whether the breaches alleged by the landlord were significant enough to justify termination of the lease. The landlord claimed that the tenant had breached the lease by not complying with car parking conditions and insurance requirements, and by assigning the lease without consent. The court found that the breaches were not significant enough to justify termination of the lease. The car parking conditions were not enforceable because the council had issued an occupation certificate despite the non-compliance, and the insurance was in place for the duration of the tenancy. The sublease was also not significant because it was only effective in equity and not at law, and had not been formalised.

The court also had to decide whether to grant relief against forfeiture and renewal of the lease. The court found that the breaches were not current or continuing at the time the tenant sought to exercise the option to renew, and that the landlord had not suffered any loss or damage due to the breaches. The court noted that the landlord had a commercial interest in the property and would therefore suffer loss by forfeiture. The court exercised its discretion and granted relief against forfeiture and renewal of the lease.

The court ordered that the lease was not terminated, that the tenant was granted relief against forfeiture, and that the tenant was granted renewal of the lease.