PROPERTY LAW ACT 1969 - SECT 81
PROPERTY LAW ACT 1969 - SECT 81
81 . Restrictions and relief against forfeiture of leases and under-leases
(1) A right of
re-entry or forfeiture under any provision or stipulation in a lease for a
breach of any covenant or condition in the lease is not enforceable, by action
or otherwise, unless and until the lessor serves on the lessee a notice
—
(a)
specifying the particular breach complained of;
(b)
where the breach is capable of remedy, requiring the lessee to remedy the
breach; and
(c) in
any case, requiring the lessee to make compensation in money for the breach,
and the lessee fails,
within a reasonable time after the service of the notice on him, to remedy the
breach, if it is capable of remedy, and to make reasonable compensation in
money, to the satisfaction of the lessor, for the breach.
(2) Where a lessor is
proceeding, by action or otherwise, to enforce or has enforced without the aid
of the Court such a right of re-entry or forfeiture, the lessee may, in the
lessor’s action (if any) or in any action brought by himself apply to
the Court for relief, and the Court —
(a) may
grant or refuse relief, as the Court having regard to the proceedings and
conduct of the parties under the foregoing provisions of this section, and to
all the other circumstances thinks fit; and
(b) in
case of relief may grant it on such terms (if any) as to costs, expenses,
damages, compensation, penalty or otherwise, including the granting of an
injunction to restrain any like breach in the future, as the Court in the
circumstances of each case, thinks fit.
(3A) A lessor is
entitled to recover as a debt due to him from a lessee and in addition to
damages (if any), all reasonable costs and expenses properly incurred by the
lessor in the employment of a solicitor and surveyor or valuer, or otherwise,
in reference to any breach giving rise to a right of re-entry or forfeiture
that, at the request of the lessee, is waived by the lessor, or from which the
lessee is relieved, under the provisions of this Part either by the Court or
by the operation of subsection (1).
(3B) The lessor is so
entitled to recover whether the lessee has or has not rendered forfeiture
unenforceable against him under that subsection.
(4) Where a lessor is
proceeding by action or otherwise to enforce or has enforced a right of
re-entry or forfeiture —
(a)
under any covenant, provision or stipulation in a lease; or
(b) for
non-payment of rent,
the Court may, on
application by any person claiming as under-lessee any estate or interest in
the property comprised in the lease or any part thereof, either in the
lessor’s action, if any, or in any action brought by that person for
that purpose, make an order vesting for the whole term of the lease or any
less term, the property comprised in the lease or any part thereof in any
person entitled as under-lessee to any estate or interest in the property,
upon such conditions,
(c) as
to execution of any deed or other document;
(d)
payment of rent, costs, expenses, damages, compensation or giving security or
otherwise,
as the Court in the
circumstances of each case thinks fit, but in no case is the under-lessee
entitled to require a lease to be granted to him for any longer term than he
had under his original sub-lease.
(5) For the purposes
of this section except so far as is otherwise provided —
lease includes an original or derivative
under-lease; an agreement for a lease where the lessee has become entitled to
have his lease granted, and a grant securing a rent by condition;
lessee includes an original or derivative
under-lessee, and the persons deriving title under a lessee, and a grantee
under any grant securing a rent by condition and the persons deriving title
under him;
lessor includes an original or derivative
under-lessor, and the persons deriving title under a lessor, a person making a
grant securing a rent by condition and the persons deriving title under him;
under-lease includes an agreement for an
under-lease where the under-lessee has become entitled to have his under-lease
granted;
under-lessee includes any person deriving title
under an under-lessee.
(6) This section
applies although the condition or stipulation under which the right of
re-entry or forfeiture accrues is inserted in the lease in pursuance of the
directions of any Act.
(7) For the purposes
of this section a lease limited to continue as long only as the lessee
abstains from committing a breach of covenant is and takes effect as a lease
to continue for any longer term for which it could subsist, but determinable
by a condition for re-entry on the breach.
(8) This section does
not extend —
(a) to a
covenant or condition against assigning, underletting, parting with the
possession or disposing of the land leased;
(b) to a
condition for forfeiture on the bankruptcy of the lessee or on taking in
execution of the lessee’s interest; or
(c) in
the case of a lease of any licensed premises as defined in the
Liquor Control Act 1988 , to a covenant not to do or omit any act or thing by
which the licence granted in respect thereof, may be forfeited.
(9) This section does
not except as otherwise mentioned, affect the law relating to re-entry or
forfeiture or relief in case of non-payment of rent.
(10) This section has
effect notwithstanding any stipulation to the contrary.
[Section 81 amended: No. 73 of 2006 s. 115; No. 19
of 2010 s. 51.]