Naval Lodge Hotel Ltd v The Commonwealth [1954] HCA 18

High Court of Australia Dixon C.J. Williams and Webb JJ. Naval Lodge Hotel Ltd v The Commonwealth [1954] HCA 18

ORDER Appeal dismissed with costs.

Cur. adv. vult.

The following written judgments were delivered:—

April 23, 1954 Dixon C.J. and Williams J.

This is an appeal from a judgment of the Supreme Court of the Australian Capital Territory (Simpson J.) declaring that the true rental rightly payable by the plaintiff (the present appellant) to the defendant (the present respondent) under a lease granted to the appellant by the respondent pursuant to the Leases Ordinance 1918-1937 and the regulations thereunder on 27th October 1941 is at the rate of £672 per annum from 15th November 1951 up to and including 15th August 1952, and thereafter at the rate of £2,080 per annum for the balance of the term of the lease. The appellant who is the lessee contends that this declaration is wrong and seeks in lieu thereof a declaration that on the true construction of the lease and in the events which have happened, the true rental rightly payable thereunder is at the rate of £700 per annum from 15th November 1951 for the remainder of the term of the lease.

The lease in question is for a term commencing on 16th January 1940 and ending on 15th November 1961 of land and premises at Jervis Bay in the Australian Capital Territory to be used for residential purposes only. The lease does not provide for a uniform rent over the whole term but is divided into four periods. In the first period commencing on 16th January 1940 and ending on 15th November 1941 the rent is at the rate of £326 per annum. In the second period commencing on 16th November 1941 and ending on 15th November 1946 the rent is at the rate of £442 per annum. In the third period commencing on 16th November 1946 and ending on 15th November 1951 the rent is at the rate of £672 per annum. The lease then provides that for the remainder of the term after 15th November 1951 the rent is to be at a rate to be determined by the Minister but not less than £700 per annum. The lease makes the rent payable monthly in advance (and proportionately for any part of a month) on the 16th day of each month in each year during its continuance.