In RIHSF v Bhullar Steel Distribution [2018] NSWDC 72 the defendant leased a steel factory and was under a make good and repair obligation under the lease which required the defendant to make repairs to the premises and maintain it in a tidy condition. The plaintiff argued that at the expiry of the lease the defendant had not met this obligation.

The Court found that upon the defendant ceasing possession the premises were left in a damaged state and contained rubbish and discarded materials. The Court took into consideration the context of the site as a steel factory, and not an office. Despite this, the factory was not in a standard of repair and cleanliness. The defendant also argued that the make good and repair obligations were not incorporated into their current lease which was their second lease. However the Court held that under the continuation of lease agreement, the obligations were incorporated into the second lease. The parties did not objectively intend for these obligations to cease. Read more

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