Tsoukalas v Nguyen (International) Trading Co Pty Ltd; Dung Viet Nguyen and Nguyen (International) Trading Co Pty Ltd v Tsoukalas

The dispute involved Alexander Tsoukalas, the landlord, and Nguyen (International) Trading Co Pty Ltd, along with its director, Dung Viet Nguyen, the tenants. Tsoukalas sought payment of unpaid rent, outgoings, and make good costs, as well as the return of bank guarantee proceeds held by the tenants. The case was heard in the Commercial Division of the Supreme Court of Victoria. The tenants argued that the COVID-19 regulations prevented Tsoukalas from presenting a bank guarantee, which in turn precluded him from claiming the bank guarantee proceeds. They sought the return of the bank guarantee proceeds, contending that they were entitled to a refund.

The central legal issues revolved around the interpretation and application of the COVID-19 regulations, the terms of the retail lease agreement, and the rights and obligations of the landlord and tenants under the lease. The primary question was whether the COVID-19 regulations precluded Tsoukalas from presenting the bank guarantee and, consequently, whether the tenants were entitled to the return of the bank guarantee proceeds.

The Court found that the COVID-19 regulations did not prevent Tsoukalas from presenting the bank guarantee. It was determined that the tenants had failed to pay the amounts claimed by Tsoukalas, and that there was no basis for the tenants to claim the return of the bank guarantee proceeds. The Court ordered that the tenants pay Tsoukalas the sum of $23,938.64 within 28 days and dismissed the application for the return of the bank guarantee proceeds.