Gupta v Fordham Laboratories Pty Ltd [2018] NSWSC 551

Supreme Court New South Wales

Medium Neutral Citation: Gupta v Fordham Laboratories Pty Ltd [2018] NSWSC 551 Hearing dates: 31 October; 2 November 2017 Date of orders: 01 May 2018 Decision date: 01 May 2018 Jurisdiction: Equity Before: Ward CJ in Eq Decision: (1) Declare that the binding agreement for lease that came into existence on 30 June 2015 following the valid exercise by the plaintiff on 12 March 2015 of the option contained in registered lease No AF722335 ("the Lease") of premises known as Shop 4, 54-60 Flinders Avenue, South Camden ("the Premises"), has not been abandoned or relinquished by the plaintiff. (2) Order that the defendant specifically perform the said agreement for lease in relation to the Premises, by providing to the plaintiff within 28 days a lease, for execution by the plaintiff, on the terms provided for under the option clause in the Lease (cl 4.6) with a commencement date of 30 June 2015 and at a commencing rental of $47,644.13 per annum. (3) Order (2) is subject to the provision by the plaintiff to the defendant, within 21 days of a written undertaking by the plaintiff to rectify the breaches of lease referred to in these reasons and the subject of order (4) below; and to indemnify the defendant for any claim by any other tenant in the shopping centre of which the Premises form part in relation to condensate discharge from the lines on the external walls of the building. (4) On the cross-claim, order as follows: (i) Order the plaintiff to rectify any damage to the roof sheeting caused by the installation of air conditioning units and/or an aerial on the roof of the Premises or (at the election of the defendant) to pay the defendant the sum of $10,000 for removal of those items, the relocation and re-gassing of the air conditioning units, and the removal and replacement of the roof sheeting. (ii) Order the plaintiff to indemnify the defendant against any claim by any other tenant in the shopping centre of which the Premises form part in relation to condensate discharge from the external air conditioning compressor lines. (iii) Order the plaintiff to take all necessary steps to install and maintain compliant fire extinguishers on the Premises as required by the Lease. (iv) Order the plaintiff to comply with the requirements under the Lease for provision and maintenance of line-markings for disabled car spaces or (at the election of the defendant) to pay to the defendant the sum of $2,000 in relation thereto. (v) Order the plaintiff to redecorate the Premises in accordance with cl 7.3.3 of the Lease or (at the election of the defendant) to pay to the defendant the sum of $4,300 in relation thereto. (vi) Order the plaintiff to provide the defendant within 21 days (if he has not already done so) with a signage plan for the premises. (vii) Order the plaintiff to produce to the defendant within 21 days (if he has not already done so) evidence of his insurance coverage as required under the Lease. (viii) Order the plaintiff (if any part of the Premises is presently occupied by any unapproved sub-tenant) to submit to the defendant a copy of the sub-lease for the approval of the defendant. (ix) Otherwise, dismiss the cross-claim. (5) Reserve the question of costs to be dealt with on the papers. Catchwords: LEASES AND TENANCIES – Exercise of option – Whether agreement for lease arising out of exercise of option had been abandoned – Held no abandonment – Discretionary considerations relevant to a specific performance order – Held specific performance of the agreement for lease should be ordered – Cross-claim for alleged breaches of option lease Legislation Cited: Conveyancing Act 1919 (NSW), ss 127, 129, 133E Retail Leases Act 1994 (NSW), ss 16C, 16G, 16H, 72(1)(b) Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Ashton v Pratt (2015) 88 NSWLR 281; [2015] NSWCA 12 Baby Zone (Aust) Pty Ltd (Administrators Appointed) v Keira Street Ventures Pty Ltd [2016] NSWSC 528 Batiste v Lenin [2002] NSWCA 316 Bettervale v Warehouse Solutions International (No 3) [2015] NSWSC 1356 Byron Bay Retirement Villages Pty Ltd v Zandata Pty Ltd [2008] NSWSC 1123 Cedar Meats Pty Ltd v Five Star Lamb Pty Ltd [2013] VSC 164 Central London Property Trust Ltd v High Trees House Ltd [1947] 1 KB 130 Chan v Cresdon Pty Ltd (1989) 168 CLR 242; [1989] HCA 63 CIC Insurance Limited v Bankstown Football Club Limited (1995) 8 ANZ Ins Cas 61-232 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Limited (1980) 160 CLR 226; [1986] HCA 14 DHJPM Pty Limited v Blackthorn Resources Limited (2011) 83 NSWLR 728; [2011] NSWCA 348 Dimond v Moore (1931) 45 CLR 159; [1931] HCA 12 Dockrill v Cavanagh (1944) 45 SR (NSW) 78 Doueihi v Construction Technologies Australia Ltd (2016) 92 NSWLR 247; [2016] NSWCA 105 DTR Nominees Pty Limited v Mona Homes Pty Limited (1978) 138 CLR 423; [1978] HCA 12 Elite Promotion and Management Pty Ltd v 5A Investments Pty Limited [2009] NSWSC 556 Fitzgerald v Masters (1956) 95 CLR 420; [1956] HCA 53 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Fullers' Theatres Ltd v Musgrove (1923) 31 CLR 524 at 546; [1923] HCA 12 Gerraty v McGavin (1914) 18 CLR 152; [1914] HCA 23 Hammond v JP Morgan Trust Australia Ltd [2012] NSWCA 295 Heggies Bulkhaul Ltd v Global Minerals Australia Pty Ltd (2003) 59 NSWLR 312; [2003] NSWSC 851 Hemer Pty Ltd v Benni [2011] SASCFC 35 Hexter v Pearce [1900] 1 Ch 341 Jiwunda v Trustees of the Travel Compensation Fund [2006] NSWSC 741 Lamshed v Lamshed (1963) 109 CLR 440; [1963] HCA 60 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623; [1989] HCA 23 Lolly Pops (Harbourside) Pty Ltd v Werncog Pty Ltd (1998) 9 BPR 16,361 Marminta Pty Limited v French [2003] QCA 541 Martin v Kelly [2009] NSWCA 105 McDrury v Luporini [2000] 1 NZLR 652 Mehmet v Benson (1965) 113 CLR 295; [1965] HCA 18 Miller Heiman Pty Ltd v Sales Principles Pty Ltd (2017) 94 NSWLR 500; [2017] NSWCA 106 Mineaplenty Pty Ltd v Trek 31 Pty Ltd [2006] NSWSC 1203 Moratic Pty Ltd v Gordon [2007] NSWSC 5 New Dragon Investments Pty Ltd v Morgan & Banks Development Pty Ltd [2006] NSWSC 113 New South Wales Land and Housing Corporation v Diab [2015] NSWCA 133 Owendale Pty Ltd v Anthony [1967] HCA 20; (1967) 117 CLR 539 Palermo Seafoods Pty Ltd v Lunapas Pty Ltd [2014] NSWSC 792 Pioneer Quarries (Sydney) Pty Ltd v Permanent Trustee Co of NSW Ltd (1970) 2 BPR 97,145 Pozetu Pty Ltd v Alexander James Pty Ltd [2016] NSWCA 208 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 Quadling v Robinson (1976) 137 CLR 192; [1978] HCA 31 Re Eastdoro Pty Ltd [1989] 2 Qd R 182 Ryder v Frohlich [2004] NSWCA 472 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 Saleh v Romanous (2010) 79 NSWLR 453; [2010] NSWCA 274 Sargent v ASL Developments Ltd [1974] HCA 40; (1974) 131 CLR 634 Sidhu v Van Dyke [2014] HCA 19; (2014) 251 CLR 505 Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2010] NSWSC 29 TMA Australia Pty Ltd v Indect Electronics & Distribution GmbH [2015] NSWCA 343 Van Dyke v Sidhu [2013] NSWCA 198; 301 ALR 769 Vanworld Pty Ltd v Perpetual Trustees Australia Ltd [2002] QSC 249 Wallera Pty Limited v CGM Investments Pty Limited [2003] FCAFC 279 Walsh v Lonsdale (1882) 21 Ch D 9 Waltons Stores (Interstate) Limited v Maher (1988) 164 CLR 387 Wilkinson v S & S Gikas Pty Ltd [2006] NSWSC 1314 Williams v Frayne (1937) 58 CLR 710; [1937] HCA 16 Texts Cited: ICF Spry, The Principles of Equitable Remedies (9th ed, Lawbook Co, 2014) JD Heydon, MJ Leeming, PG Turner, Meagher, Gummow & Lehane's Equity: Doctrines and Remedies (5th ed, LexisNexis, 2015) JW Carter, Carter on Contract (LexisNexis, 2017) Category: Principal judgment Parties: Ranjan Gupta (Plaintiff) Fordham Laboratories Pty Ltd (Defendant) Representation: Counsel: L W Chan (Plaintiff) PJ McEwen SC with D Birch (Defendant)