Harmohinder Singh Gill (as Trustee of the Gillcrest UK Pension Scheme) v Lees News Limited
[2023] EWCA Civ 1178
Harmohinder Singh Gill (as Trustee of the Gilcrest UK Pension Scheme) v Lees News Limited
20 January 2023
[2023] EWHC 403 (Ch)
High Court
A shop owner was behind on rent and their shop was run-down. Even though they were a bit sneaky about the repairs and weren't completely honest, the judge let them renew their lease because they eventually fixed things and the landlord wasn't very involved. The higher court agreed with the judge's decision.
Key Facts
- •Appeal against a lower court order granting Lees News Limited (LNL) new business leases despite substantial disrepair and rent arrears.
- •LNL, run by Mr. and Mrs. Nathan, was the tenant; the Gilcrest UK Pension Scheme (represented by Mr. Gill) was the landlord.
- •The landlord opposed the lease renewal based on disrepair (tenant's failure to comply with repair obligations), persistent rent delays, other substantial breaches of lease obligations, and intent to redevelop.
- •The lower court judge found disrepair and rent arrears but still granted new leases, citing the landlord's hands-off approach and LNL's eventual repair efforts.
- •The appeal focused on whether the judge properly considered LNL's allegedly misleading conduct during the proceedings.
Legal Principles
In lease renewal disputes under Part II of the Landlord and Tenant Act 1954, the court considers whether the tenant 'ought not to be granted' a new tenancy based on various grounds, including disrepair, rent arrears, and other breaches.
Landlord and Tenant Act 1954, sections 24, 25, 26, 29, 30
The court exercises discretion when deciding whether to grant a new lease, considering the totality of the circumstances and weighing the landlord's and tenant's interests.
Youssefi v Mussellwhite [2014] EWCA Civ 885; Lyons v Central Commercial Properties (London) Ltd [1958] 1 WLR 869
An appellate court should not interfere with a trial judge's factual findings unless they are plainly wrong. The appellate court should also show respect for the judge's exercise of discretion.
Gabriele Volpi & Delta Ltd v Matteo Volpi [2022] EWCA Civ 464
New points of law or arguments not raised at trial should not be considered on appeal, especially if new evidence would be needed.
Singh v Dass [2019] EWCA Civ 360
Outcomes
The appeal was dismissed.
The judge's decision was within the bounds of reasonable discretion. Although LNL's conduct was criticised, the judge did not find it dishonest and reasonably concluded that they would comply with future lease obligations.