Vedam Enterprises Pty Ltd v Xpress Fuel Australia Pty Ltd

Vedam Enterprises Pty Ltd and other plaintiffs sought relief against the termination of their leases for eight service station sites operated by different plaintiffs, against Xpress Fuel Australia Pty Ltd, the landlords. The plaintiffs argued that the termination was unjust due to supply failures by Xpress Fuel Australia Pty Ltd, which they claimed led to the termination of exclusive fuel supply agreements. The plaintiffs sought interlocutory injunctions to restrain the landlords from terminating the leases and taking possession of the sites.

The primary legal issue before the court was whether the plaintiffs had raised serious questions to be tried regarding their entitlement to relief against forfeiture. The court had to determine whether the clauses in the leases relied on by the landlords as giving rise to rights to forfeit and re-enter truly protected the landlords' interests, and whether the landlords would suffer loss from the alleged breaches of the leases. Additionally, the court considered the balance of convenience and the adequacy of the undertaking as to damages.

The court found that the plaintiffs had raised serious questions to be tried, primarily because the termination of the leases was allegedly due to the landlords' failure to supply fuel, which was a condition of the exclusive fuel supply agreements. The court determined that the clauses in the leases did not clearly protect the landlords' interests in the manner they claimed, and that the landlords would suffer loss from the breaches of the leases. The balance of convenience favoured granting the interlocutory injunctions, and the plaintiffs provided an adequate undertaking as to damages.

The court granted the interlocutory injunctions, restraining the landlords from terminating the leases and taking possession of the sites. This decision allowed the plaintiffs to continue operating the service stations while the case proceeded to a final determination.