St George Bank Limited v JB (Northbridge) Pty Ltd [2009] NSWSC 1347

New South Wales Supreme Court

CITATION : St George Bank Limited v JB (Northbridge) Pty Ltd [2009] NSWSC 1347

HEARING DATE(S) : 26 November 2009

JUDGMENT DATE : 4 December 2009

JURISDICTION : Equity Division Expedition List

JUDGMENT OF : Brereton J

DECISION : Option validly and effectively exercised by second plantiff. Assignment to third plaintiff effective in equity only. Purported exercise of option by third plaintiff ineffective.

CATCHWORDS : LANDLORD AND TENANT – leases and tenancy agreements – whether second plaintiff/lessee disentitled from exercising option to renew by reason that it had not observed and performed covenants and agreements in lease – where there had been "insolvency events" which were deemed defaults under lease – where there was no covenant or agreement by lessee not to suffer an insolvency event – held, lessee not disentitled from exercising option - assignment– where information required to be given to the defendant in order to obtain consent not provided – where assignment in breach of covenant not to assign without consent – whether assignment effective to convey leasehold in equity to assignee – where assignee purports to exercise option – whether assignee "permitted assign" – whether equitable assignee entitled to exercise option – held, assignment effective in equity notwithstanding want of consent but assignee not "permitted assign" and not entitled as mere equitable assignee to exercise option. CORPORATIONS – external administration – receivership – where receiver of lessee pursuant to mortgage of lease purports to exercise option to renew lease after liquidator appointed – whether receiver able to exercise option and execute notice of exercise

(CTH) Corporations Act 2001, s 420C(1) LEGISLATION CITED : (NSW) Conveyancing Act 1919, s 133F (NSW) Liquor Act 2007