Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd [1979] HCA 51

High Court of Australia Barwick C.J. Gibbs, Stephen, Mason and Aickin JJ. Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd [1979] HCA 51

ORDER Appeal dismissed with costs.

Cur. adv. vult.

The following written judgments were delivered:—

Oct. 12 Barwick C.J.

In this matter the circumstances of the case are fully set forth in the reasons for judgment of my brother Mason.

I agree that the appeal should be dismissed, the ground upon which I would do so being that the Full Court of the Supreme Court was not in error in holding that, having regard to the findings of the primary judge, the respondent was not bound to accept the appellant as a tenant.

The respondent's refusal in that respect was reasonable, having regard to its justifiable apprehension as to the financial capacity of the appellant to perform the obligations of the intended lease.

Gibbs J.

I have had the advantage of reading the reasons prepared by my brother Mason and agree with them. I would accordingly dismiss the appeal.

Stephen J.

I would dismiss this appeal for the reasons stated in the judgment of Mason J.

Mason J.

The respondent is the registered proprietor of an estate in fee simple of land at Toowong in Queensland on which is erected a multi-storeyed office block known as Sherwood House. The respondent acquired the land by conveyance from the appellant pursuant to a contract of sale dated 29th December 1972 which was expressed to be between the appellant as vendor and St. Martins Properties (Australia) Pty. Ltd. or its nominee as purchaser. It is common ground that the respondent was liable to be sued on this contract.

The purchase price under the contract was $2,090,000 of which $209,000 was paid by way of deposit and a further $1,711,000 was payable on 26th January 1973 in exchange for documents of title. Payment of the balance of the purchase price was made conditional on the existence of leases of parts of the building providing for the payment to the owner of the building of a gross rental in a stipulated amount. Clause 1 (a) of the contract deals with this matter. It provides: