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PROPERTY LAW ACT 1974 - SECT 124
Restriction on and relief against forfeiture
124 Restriction on and relief against forfeiture
(1) A right of re-entry or forfeiture under any proviso or stipulation in a
lease, for a breach of any covenant, obligation, condition or agreement
(express or implied) in the lease, shall not be enforceable by action or
otherwise unless and until the lessor serves on the lessee a notice— (a)
specifying the particular breach complained of; and
(b) if the breach is
capable of remedy, requiring the lessee to remedy the breach; and
(c) in case
the lessor claims compensation in money for the breach, requiring the lessee
to pay the same;
and the lessee fails within a reasonable time after service
of the notice to remedy the breach, if it is capable of remedy, and, where
compensation in money is required, to pay reasonable compensation to the
satisfaction of the lessor for the breach.
(2) Where a lessor is proceeding
by action or otherwise to enforce such a right of re-entry or forfeiture, or
has re-entered without action the lessee may, in the lessor’s action (if
any) or in proceedings instituted by the lessee, apply to the court for
relief, and the court, having regard to the proceedings and conduct of the
parties under subsection (1) , and to all the other circumstances, may grant
or refuse relief, as it thinks fit, and in case of relief may grant the same
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.
(3) The making of an application under this section shall not of itself
be construed as an admission on the part of the lessee— (a) that any such
notice as is mentioned in subsection (1) has been served by the lessor; or
(b) that any such breach as is mentioned in subsection (1) has occurred or
that any right of or cause for re-entry or forfeiture has accrued or arisen;
and the court may, if it thinks fit, grant relief without making a finding
that, or arriving at a final determination whether, any such notice has been
served, or any such breach has occurred, or that any such right has accrued or
cause arisen.
(4) This section applies although the proviso or stipulation
under which the right of re-entry or forfeiture accrues is inserted in the
lease under the directions of any Act of Parliament.
(5) For the purposes of
this section a lease limited to continue as long only as the lessee abstains
from committing a breach of covenant or obligation shall be and take effect as
a lease to continue for any longer term for which it could subsist, but
determinable by a proviso for re-entry on such a breach.
(6) This section
does not extend— (a) to any lease or tenancy for a term of 1 year or less;
or
(b) to a covenant, condition, or agreement against the assigning,
underletting, parting with the possession or disposing of the land leased
where the breach occurred before the commencement of this Act; or
(c) to a
condition for forfeiture on the taking in execution of the lessee’s interest
in any lease of— (i) agricultural or pastoral land; or
(ii) mines or
minerals; or
(iii) a house used or intended to be used as licensed premises
under the Liquor Act 1992 ; or
(iv) a house let as a dwelling house; or
(v)
any property with respect to which the personal qualifications of the tenant
are of importance for the preservation of the value or character of the
property, or on the ground of neighbourhood to the lessor or to any person
holding under the lessor; or
(d) in case of a mining lease—to a covenant,
condition, or agreement for allowing the lessor to have access to or inspect
books, accounts, records, weighing-machines, or other things, or to enter or
inspect the mine or the workings of the mine; or
(e) to a condition for
forfeiture on the taking in execution of the lessee’s interest in any lease
(other than a lease mentioned in paragraph (c) ) after the expiration of 1
year from the date of taking in execution, provided the lessee’s interest be
not sold within such 1 year.
(6A) But if the lessee’s interest be sold
within such 1 year this section shall extend and be applicable to such
condition for forfeiture.
(7) The rights and powers conferred by this section
are in addition to and not in derogation of any right to relief or power to
grant relief had apart from this section.
(8) The notice mentioned in this
section shall be in the approved form.
(9) This section applies to leases
made either before or after the commencement of this Act, and shall have
effect despite any stipulation to the contrary.
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