The Highlands on a Plate Pty Ltd v Roloz Pty Ltd

In the case of The Highlands on a Plate Pty Ltd v Roloz Pty Ltd, the dispute involved a café operated by the plaintiff, The Highlands on a Plate Pty Ltd, from premises leased by the defendant, Roloz Pty Ltd. The plaintiff had served a Notice of Exercise of Option to renew the lease for a further five-year term. In response, the defendant issued a Notice under section 133E of the Conveyancing Act 1919 (NSW), claiming that the plaintiff was in breach of the lease due to overdue rent and electricity outgoings, which the defendant argued should preclude the plaintiff from exercising the renewal option. The matter was brought before the Supreme Court of New South Wales.

The primary legal issues that the court had to determine were whether the defendant's Notice accurately specified the breaches of lease obligations and whether the defendant could rely on the section 133E Notice in the context of the Retail and Other Commercial Leases (COVID-19) Regulation 2020 (NSW). Additionally, the court needed to decide whether the plaintiff's Notice of Exercise of Option was valid and enforceable.

The court found that the plaintiff was not overdue on electricity outgoings, and while the plaintiff was indeed overdue on rent, the amount was less than half of what the defendant had stated in its Notice. Consequently, the defendant's Notice did not accurately specify the breach. Even if it had, the court held that reliance on the section 133E Notice would contravene clause 6(1) of the aforementioned regulation. Therefore, the plaintiff's option to renew the lease was validly exercised. The court ordered specific performance to compel the defendant to grant a new lease to the plaintiff.