SUPREME COURT Firm Directed To Grant New Lease

Press, Volume CIV, Issue 30823, 7 August 1965, Page 23

SUPREME COURT Firm Directed To Grant New Lease

I An order directing Northern Markets, Ltd., of Christchurch, to grant Victoria I Dairy and Fruit Shop, Ltd., a i new lease of business premij ses in Papanui road, near 1 Blair avenue, was made by Mr Justice Wilson in a reserved ! judgment delivered yesterday. His Honour said there were | no circumstances which I could lead him to refuse the relief. Victoria Dairy and Fruit Shop, Ltd., sought relief in an application under the Property Law Act against the refusal of Northern Markets. Ltd., to grant a renewal of the lease. B.P. (New Zealand) Ltd., was later a second fefendant because Northern Markets had agreed to sell to it the land comprised in the lease. The three-year term of the lease expired on August 31, 1964, .-'nd the plaintiff omitted to give prior notice of his wish to renew it. In the judgment his Honor said the shareholders and direcors of the lessor and lessee companies were on friendly terms and the plaintiff remained in occupation, in law, as a tenant holding over. “I am satisfied that the directors of the plaintiff com-

pany had simply not adverted to the fact that the term of the lease had expired and that notice requiring a renewal should have been given no later than May 31, 1964. and that their failure to take the appropriate steps before that date was largely due to this friendly relationship.” His Honour said it appeared that since 1962 B.P. (New Zealand) Ltd., had been interested in acquiring the premises with a view to their development in conjunction with adjoining premises as a service station and garage. In December, 1964, it obtained an option to purchase for £13,000 for a consideration of £5O. This option was later renewed for £5OO, the consideration to be treated as part of the purchase price if the option were exercised. His Honour said he expressly made no finding as between the first and second defendants as to damages or compensation consequent upon the order. He reserved to the second defendant the right to pursue any such claim in any appropriate action. Mr D. H. Hicks appeared for Northern Markets, Mr P. T. Mahon for Victoria Dairy, and Mr J. R. Woodward for B.P.