MI Design P/L v Dunecar P/L & 1 Ors [2000] NSWSC 996

Reported Decision : (2000) 35 ACSR 551 (2001) NSW ConvR 55-969

New South Wales Supreme Court

CITATION : MI Design P/L v Dunecar P/L & 1 Ors [2000] NSWSC 996 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4011/00 HEARING DATE(S) : 22/09/00, 25/09/00, 26/09/00, 05/10/00, 06/10/00, 10/10/00 JUDGMENT DATE : 27 October 2000

MI Design Pty Limited (Plaintiff/Second Cross-Defendant) PARTIES : Dunecar Pty Limited (ACN 083 651 781) (First Defendant/First Cross-Defendant) Commonwealth Bank of Australia (ACN 123 123 124) (Second Defendant/Cross-Claimant) Sean Patrick O'Connell (Third Cross-Defendant) JUDGMENT OF : Santow J

M Pesman (Plaintiff/Second Cross-Defendant) COUNSEL : L J Aitken (First Defendant/First Cross-Defendant) F Kunc (Second Defendant/Cross-Claimant) Ian D Elvy & Associates (Plaintiff/Second Cross-Defendant) SOLICITORS : Colbron & Associates (First Defendant/First Cross-Defendant) L E Taylor (Second Defendant/Cross-Claimant) CATCHWORDS : REAL PROPERTY — Mortgages — Lessee ousted without the notice required under lease, contract with bank and s129 of Conveyancing Act — Consequences — Relevance of breaches of Liquor Act — Relief against forfeiture — Specific performance of agreement between lessor and bank — Discretionary aspects — Damages not adequate remedy — Lessee insolvent — Would reinstatement involve a futility. Conveyancing Act 1919 (NSW) s127; s129 Corporations Law Pt 5.3A Gaming and Betting Act 1912 LEGISLATION CITED : Law and Property Act 1925, s86 Liquor Act 1898 Liquor Act 1982, s67(1); s68; s69; s101; s143A Real Property Act 1925, s55A Chaka Holdings Pty Ltd v Sunsim Pty Ltd (SCNSW, Young J, 3 September 1987, unreported) Chan v Cresdon Pty Limited (1989) 168 CLR 242 Coghlan v Peel (1906) 6 SRNSW 560 CASES CITED : Commonwealth Development Bank of Australia v Eagle Hotels Pty Limited (1990) NSW ConvR 55-506 Hayes v Gumbola Pty Limited (1988) NSW ConvR 55-375 Montague v Pooley [1951] StRQd 291 Pioneer Quarries (Sydney) Pty Ltd v Permanent Trustee Co of NSW Ltd (1970) BPR 9562 Shiloh Spinners Limited v Harding (1973) AC 691 DECISION : Lessee entitled to be reinstated.