In the matter of Hi-Fi Sydney Pty Ltd (Administrator Appointed) [2015] NSWSC 1312

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Hi-Fi Sydney Pty Ltd (Administrator Appointed) [2015] NSWSC 1312 Hearing dates: 22 June 2015 Date of orders: 29 June 2015 Decision date: 29 June 2015 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Relief against forfeiture granted; no order as to costs. Catchwords: EQUITY – equitable remedies – relief against forfeiture – relief under (NSW) Conveyancing Act 1919, s 129 – whether s 129 applies – where lease provides for termination upon appointment of administrator – whether appointment of administrator constituted breach of lease – held, s 129 applies – whether relief available – relevance of general law considerations to statutory power to grant relief – primary purpose of agreement – where provisions of lease designed to relieve lessor of insolvent tenant – where tenant able to meet payments – where tenant company no longer insolvent – where no damage sustained to lessor by breach of lease – where lessee would suffer loss of fit-out and establishment expenditure – whether grant of relief would resurrect non-party's obligations as guarantor – whether lessee would be in breach of other obligations under lease upon reinstatement warranting forfeiture.

CORPORATIONS – relief against forfeiture – orders preventing lessor from taking possession of premises under (CTH) Corporations Act 2001, s 444F – whether taking possession by lessor would have material adverse impact on deed of company administration – whether lessor's interests can be adequately protected – lessor's interests qua lessor under lease only relevant interests to be protected.

PROCEDURE – costs – where relief against forfeiture granted – whether opposition to grant of relief necessary – where costs borne out of opposition to grant of relief – where relief also sought in relation to breaches to which lessor had no obligation to consent – held, no order as to costs. Legislation Cited: (CTH) Corporations Act 2001, s 436C, s 439A, s 440B, s 444F(2), s 444F(4), s 444F(5), Pt 5.3A (NSW) Conveyancing Act 1919, s 129(1), s 129(2) Cases Cited: Ace Property Holdings Pty Ltd v Australian Postal Corporation [2011] 1 Qd R 504; [2010] QCA 55 Bland v Ingram's Estates Ltd (No 2) [2001] EWCA Civ 1088; [2002] Ch 177; [2002] 1 All ER 244; [2002] 2 WLR 361 Cadogan Estates Ltd v McMahon [2001] 1 AC 378; [2000] 4 All ER 897 Della Imports Pty Ltd v Birkenhead Investments Pty Ltd (1987) NSW ConvR 55-358; [1987] ANZ ConvR 294 Halliard Property Co Limited v Jack Segal Ltd [1978] 1 All ER 1219; [1978] 1 WLR 377 Lindholm Re Munday Group Pty Ltd (recrs and mgrs. Apptd) (in liq) v Tsourlinis Distributors Pty Ltd [2011] FCA 195 Melacare International Ltd (in receivership) v Daley Investments Pty Ltd (1999) 9 BPR 17,095; [1999] NSWSC 496 Mineaplenty Pty Ltd v Trek 31 Pty Ltd (2006) 17 BPR 32,645; (2007) ANZ ConvR 123; [2006] NSWSC 1203 Pioneer Gravels (Qld) Pty Ltd v T & T Mining Corporation Pty Ltd [1975] Qd R 151 Pioneer Quarries (Sydney) Pty Ltd v Permanent Trustee Coy of NSW Limited (1970) 2 BPR 9,562 Shiloh Spinners Ltd v Harding [1973] 1 All ER 90; [1973] 2 WLR 28; [1973] AC 691 Strazdins Re DNPW Pty Ltd v Birch Carroll & Coyle Ltd (2009) 178 FCR 300; (2009) 72 ACSR 563; [2009] FCA 731 Tutita Pty Ltd v Ryleaco Pty Ltd (1989) 4 BPR 9,635; (1989) NSW ConvR 55-486 Wynsix Hotels (Oxford Street) Pty Ltd v Toomey (2004) 17 BPR 32,633; [2004] NSWSC 336 Category: Principal judgment Parties: Carsingha Investments Pty Limited (ACN 169 790 523) (plaintiff/respondent) Hi-Fi Sydney Pty Ltd (administrator appointed) (ACN 136 479 895) (first defendant/first applicant) Simon Patrick Nelson (second defendant/second applicant) Karamika Pty Ltd (ACN 006 636 997) (third defendant) Representation: Counsel: D Sulan w R May (plaintiff/respondent) G Sirtes SC w J Shepard (first and second defendants/applicants)