LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 123 Confirmation of contested termination

LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 123

    (1)     If the tenant applies to the Magistrates Court under section 122 to contest the termination of the lease by the lessor, the court may confirm the termination if satisfied that—

        (a)     a ground (the termination ground ) exists for the lessor to terminate the lease; and

        (b)     the act or omission that gave rise to the termination ground (the  breach ) is an act or omission of the tenant or a subtenant; and

        (c)     the lessor had given the tenant notice of the breach and a reasonable opportunity to remedy it; and

Note     For the requirement to give a tenant notice of a breach, see the Civil Law (Property) Act 2006

, s 426 (1).

        (d)     the termination ground justifies confirming the termination.

    (2)     Without limiting what is a reasonable opportunity under subsection (1) (c), the tenant is taken to have been given a reasonable opportunity to remedy the breach of an obligation to pay an amount if the tenant is allowed 14 days to pay the amount.

    (3)     However, the Magistrates Court may refuse to confirm the termination even if satisfied about the matters mentioned in subsection (1) if—

        (a)     the breach has been remedied; or

        (b)     the tenant gives an undertaking that the tenant will remedy the breach within 14 days.

    (4)     The Magistrates Court may suspend the order confirming the termination for not longer than 21 days if satisfied that—

        (a)     the immediate operation of the order would cause significant hardship to the tenant; and

        (b)     the hardship to the tenant would be greater than the hardship that the suspension would cause to the lessor.

    (5)     The Magistrates Court may suspend the order under subsection (4) only once.